Ohio National exits annuity market, shifts to exclusive focus on life and disability income lines

[Brian Anderson]

Brian Anderson submitted a new article

Ohio National exits annuity market, shifts to exclusive focus on life and disability income lines

Under the new plan, effective September 15, the company will no longer accept applications for annuities or new retirement plans, while continuing to service and support existing clients in both businesses. As a result of this decision, the company will reduce its workforce by approximately 300 positions.

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[ATM]

Next move will be selling the B/D. Then selling off the annuity block. Then selling the whole thing...... Sad

 

[DHK]

I doubt they'd sell the B/D ONESCO. They have a captive career agency network and I'm sure it is profitable selling outside products such as approved indexed annuities, variable annuities, variable life, mutual funds, managed money, etc.

 

[VolAgent]

I doubt they'd sell the B/D ONESCO. They have a captive career agency network and I'm sure it is profitable selling outside products such as approved indexed annuities, variable annuities, variable life, mutual funds, managed money, etc.

Exactly. Basically no risk at all to the balance sheet, but it can definitely be a profit center if large enough to overcome the fixed costs.

 

[benneaf]

Just before this decision they were going to roll out their Fixed Indexed Annuity to all agents (previously you had to be Securities Licensed with them...yes, to sell their FIA). That would have spread costs out dramatically. They keep saying the block of business was too expensive, but it just doesn't make sense.

 

[Golfnut2112]

I doubt they'd sell the B/D ONESCO. They have a captive career agency network and I'm sure it is profitable selling outside products such as approved indexed annuities, variable annuities, variable life, mutual funds, managed money, etc.

They do not have a career captive agency, the contract you receive with them is based on the state you live in. I am in WV and literally 1 mile from PA and 4 miles from Ohio and I had to take a career contract while PA and Ohio agents can get a broker’s contract. I have not written a case with them in over 2 years and my broker dealer is not ONESCO but I still have a career contract.