Feb. 9, 2007
Ohio National Financial Services, Cincinnati, has announced records in sales and revenues for 2006, including $88.5 million in new annual premium for individual life insurance sales and a 43.9% increase in variable annuity sales. Additionally, revenues climbed beyond $3.1 billion, up 27.7%, and assets under management grew more than 10.1% to $22.5 billion.
“Ohio National is performing extremely well, despite continuing challenges impacting the retail financial services marketplace,” reported David B. O’Maley, chairman, president and chief executive officer, at today’s board of directors meeting. “We are very proud of our consistent success to profitably grow our company while providing high-value, low-cost products to our customers. As we near our second century of service in 2009, we continue to execute our strategy and demonstrate excellent performance.”
In his remarks, O’Maley also noted the company’s strategic investment of additional capital into the accelerated growth of the company’s distribution channels. “This was a primary factor leading to constrained annual earnings for 2006, which was recognized and planned,” he reported.
2006 Financial Highlights
o GAAP equity (excluding FAS 115) was reported at $1.29 billion, a 7.6% increase.
o Total statutory revenues, including premiums, investment income and deposits, were reported at $3.1 billion, up 27.7%.
o Total assets under management were reported at $22.5 billion, up 10.1%.
2006 Sales Highlights
o A record $88.5 million of new annual premium was reported for individual life insurance, a 2.8% increase in sales from 2005. This is the 17th consecutive year the company has grown its individual life insurance sales, a record unmatched in the industry.
o Individual variable annuity sales were up 43.9% to $1.2 billion of new premium.
o Group pension sales grew to $90.2 million, a 9.2% increase.
o The company’s full service broker-dealer, The O.N. Equity Sales Company, increased gross broker-dealer concessions by 13.3%, to $34.5 million.
Independent industry analysts in the past year reaffirmed the affiliated companies’ very strong financial security ratings and stable outlook. These included:
o Standard & Poor’s: “AA” (very strong), its third highest ranking on a 21-part scale, for financial security characteristics. The report noted that the rating “reflected the company’s extremely strong capital, improved risk profile in the past three years and very strong earnings.”
o Moody’s: “A1,” its fifth-highest financial strength rating on a 21-part scale (based on the ability to repay punctually senior policyholder claims and obligations). The report noted “the company’s lean cost structure and traditionally high asset returns.”
o A. M. Best: “A+ (Superior),” its second-highest rating of 16 categories (based on the company’s balance sheet strength, operating performance and business profile). The report noted the company’s “strong organic sales growth, diversified distribution, improving operating returns and high-quality investment portfolio.”