Ohio National leaving the Annuity & Retirement Plan business

[DHK]

Ohio National now to only focus on Life Insurance and Disability - no more annuities or retirement plans.

Ohio National Online

September 6, 2018
Ohio National announces plan to exclusively focus on life and disability income insurance businesses to drive long-term growth

Cincinnati --

Decision follows comprehensive strategic review of changing market conditions, growth opportunities and competitive strengths

Will no longer issue annuities or offer new retirement plans, while continuing to service and support existing clients in both businesses

Increased organizational agility and laser-focused business mix enables greater long-term financial flexibility to invest in growth opportunities


Ohio National Financial Services (“Ohio National”) today announced it will exclusively focus on growing its life and disability income insurance product lines going forward. The decision follows a comprehensive strategic review of Ohio National’s businesses, taking into account the continuously changing regulatory landscape, the sustained low interest rate environment, and the increasing cost of doing business, as well as growth opportunities and the company’s competitive strengths.

“As part of our strategic planning process, we have completed a comprehensive evaluation of our entire business to determine the best path forward to deliver the long-term growth and financial strength necessary to support our policyholders, customers, business partners, associates and the communities in which we operate,” said Ohio National Chairman and Chief Executive Officer Gary T. “Doc” Huffman, CLU, ChFC. “Based on this evaluation, we will be focusing Ohio National to build on our strengths in life and disability income insurance. We will also continue to grow our Latin American operations.”

The rollout, implementation and execution of the company’s new focused growth strategy will be led by recently elected President and Chief Operating Officer, Christopher A. Carlson.

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.

“We strongly believe this strategy will provide us with greater long-term financial flexibility to invest in product, technology and services that provide value to our policyholders and customers,” said Carlson.

Changes Support Continued Policyholder Benefits and Protection
“Making these changes enables us to enhance our unique value proposition as we continue building trusted relationships with our network of financial professionals and offering the highest quality products with the benefits and protection our customers need,” Huffman said. “This value proposition has allowed Ohio National to grow our life insurance business at rates well above industry averages. Along with our strong growth in disability insurance, we are confident that our long-term prospects are bright.”

Since 1909, Ohio National has been committed to helping individuals, families and businesses protect what matters most. Through our network of financial professionals across 49 states (all except New York), the District of Columbia and Puerto Rico, we provide the insurance products and financial protection our policyholders need. As of December 31, 2017, its affiliated companies have $42.0 billion total assets under management. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Please visit ohionational.com for more information and for the latest company updates, connect with Ohio National on LinkedIn, Facebook, Twitter and Instagram.

"Trimming the fat" is a decent way to help keep your ratings and dividends strong as well as being in a product focus where you don't have to worry about "fiduciary duty" claims, etc.

 

[IsaacA]

Well...Another Captive Annuity company I don't have to compete with.
It was frustrating at times trying to compare annuity policies when I couldn't get any info on the product or company.
Id there a trend happening? Voya? Ohio National?

 

[DHK]

I don't know but it makes perfect business sense for Ohio National. When agents talk about Ohio National, we talk about their life insurance products. When you attend an Ohio National regional meeting, they're talking about their life insurance.

Considering the regulatory nature (and reserve requirements) of annuities and company retirement plans, I don't doubt that they decided to do the "hedgehog theory" in Good to Great and just focus on what they do best.

 

[PCBI]

I don't know but it makes perfect business sense for Ohio National. When agents talk about Ohio National, we talk about their life insurance products. When you attend an Ohio National regional meeting, they're talking about their life insurance.

Considering the regulatory nature (and reserve requirements) of annuities and company retirement plans, I don't doubt that they decided to do the "hedgehog theory" in Good to Great and just focus on what they do best.

Taking away money from agents that brought them millions is like penny wise dollar foolish. Might see them pay more with legal battles just to try to steal what isnt theirs.

 

[Kenneth Busch]

So if a client is taking a buyout, are there any potential compliance or suitability issues to be concerned about? Thanks in advance

 

[Golfnut2112]

Taking away money from agents that brought them millions is like penny wise dollar foolish. Might see them pay more with legal battles just to try to steal what isnt theirs.

Ohio National is a piece of sh$$t company. I would sell caskets in Bangladesh before I would sell another one of their products. Any stand up company would have at least paid trail commissions until the broker received the amount they would have been paid if they took it all up front.

 

[scagnt83]

Ohio National is a piece of sh$$t company. I would sell caskets in Bangladesh before I would sell another one of their products. Any stand up company would have at least paid trail commissions until the broker received the amount they would have been paid if they took it all up front.

This move will likely tank the company imo. Agents dont forget. And there are lots of other options for indy agents for quality WL (Penn, Guardian, Mass, Columbus, etc).

But that does nothing to change the damage Ohio National has done to the families of agents they illegally took commissions from. I wonder if it even crossed their mind that ON was taking food off of families tables. Mutual Life Insurers are supposed to be the good guys. Ohio National has lost their soul.

 

[DHK]

I wonder if it even crossed their mind that ON was taking food off of families tables.

I'm sure that's why they left the trail commissions in place for their captive career agents and said 'screw you' to everyone else.

 

[scagnt83]

I'm sure that's why they left the trail commissions in place for their captive career agents and said 'screw you' to everyone else.

Probably.

But imo, the Career Agency system is dying. Consumers want, need, and deserve multiple options. More and more consumers are looking for carrier/product comparisons from agents. And rightly so, there are fundamental differences in products from carrier to carrier.

I already wasnt selling ON WL because it hadnt kept up with the times (I used to). Def never again after this. They are blacklisted. just like Jackson National (JN was life insurance).

And Consumers look at stuff like this as a MAJOR negative.

I casually mentioned what JN did to a guy who was looking at a JN VA (not my prospect or client)... he immediately said "what a scumbag company... no way am I putting my money with them". I even told him it was a solid VA product, it didnt matter, he said there were plenty of other solid products from other carriers. He said if they will screw over an agent, they will screw over a client. Thats how consumers look at the situation.

 

[AboutThatLife]

I already wasnt selling ON WL because it hadnt kept up with the times (I used to).

Can you elaborate on this?