Ohio National Financial Services: Ohio National policyholders' approval of conversion plan is credit positive

Constellation Insurance, Inc.: Constellation readies to achieve long-term goals through organic growth and acquisitions - Credit Opinion – 2023/08/18 – US$ 250.00 – ...Our credit view of Constellation Insurance, Inc. (Constellation; senior unsecured debt Ba1 stable) and its key life insurance subsidiaries Ohio National Life Insurance Co. (ONLIC; insurance financial strength (IFS) Baa1 stable) and Ohio National Life Assurance Corporation (ONLAC; IFS Baa1 stable), reflect the company's updated strategy focused on growing mortality, spread business and market risks through organic growth in multiple distribution channels and inforce transactions, proactively managing the risk associated with its inforce variable annuities (VA), and the financial support of Constellation Insurance, LP vis-a-vis its planned capital commitments. Constellation also prudently manages its investments and has improved its capital position. However, our view of Constellation's capital position extends beyond the RBC ratio, and we believe it is weaker when including captives. In addition, Constellation will rename its two core companies, AuguStar Life Insurance Company (AuguStar...

Prudential Financial, Inc. and Constellation Insurance, Inc.: Prudential's reinsurance deal is credit positive - Issuer Comment – 2023/05/26 – US$ 200.00 – ...Information based on US SAP financial statements Source: Company filings and Moody's Investors Service...

Ohio National Financial Services, Inc.: Update following downgrade to Ba1 senior debt, outlook stable - Credit Opinion – 2022/07/06 – US$ 250.00 – ...Our credit view of Ohio National Financial Services' (Ohio National; senior unsecured debt Ba1 stable) and its key life insurance subsidiaries Ohio National Life Insurance Co. (ONLIC; insurance financial strength (IFS) Baa1 stable) and Ohio National Life Assurance Corporation (ONLAC; IFS Baa1 stable) reflects the acquisition by Constellation Insurance, LP (Constellation) to advance Ohio National's strategy, proactively manage the risk associated with its inforce variable annuities (VA), and provide financial support vis-a-vis its planned capital commitment. Ohio National also prudently manages its investments and has improved its capital position, which has been aided by a recent reinsurance transaction resulting in a material increase in its NAIC RBC ratio. These strengths are offset by the company's weakened market position, and challenges to improve organic net capital generation from the competing demands to support growth plans in its businesses, acquire in-force blocks and manage...

Ohio National Financial Services, Inc.: Focused on growing its protection business, in the midst of a strategic transaction - Credit Opinion – 2021/06/25 – US$ 250.00 – ...Our credit view of Ohio National Financial Services' (Ohio National; senior unsecured debt Baa3 negative) and its key life insurance subsidiaries Ohio National Life Insurance Co. (ONLIC; insurance financial strength (IFS) A3 negative) and Ohio National Life Assurance Corporation (ONLAC; IFS A3 negative) reflects the company's solid in force life business, prudent investment management and improved capital, which has been aided by a rise in equity markets and interest rates. Our view also contemplates the potential of Constellation Insurance Holdings' (Constellation, unrated) $500 million capital commitment, which should help Ohio National fund new sales growth and improve its capitalization and ability to manage funding needs associated with its variable annuity (VA) block in stress scenarios. The continuation of the negative outlook reflects the downward pressure on the company should the announced sponsored demutualization (the transaction) by Constellation, an investment vehicle backed...

Ohio National Financial Services, Inc.: Rating affirmed; negative outlook reflects execution risk of announced demutualization - Credit Opinion – 2021/04/01 – US$ 250.00 – ...Our credit view of Ohio National Financial Services' (Ohio National; senior unsecured debt Baa3 negative) and its key life insurance subsidiaries Ohio National Life Insurance Co. (ONLIC; insurance financial strength (IFS) A3 negative) and Ohio National Life Assurance Corporation (ONLAC; IFS A3 negative) reflects the company's solid in force life business, prudent investment management and improved capital, which has been aided by a rise in equity markets and interest rates. Our view also contemplates the potential of Constellation Insurance Holdings' (Constellation, unrated) $500 million capital commitment, which should help Ohio National fund new sales growth and improve its capitalization and ability to manage funding needs associated with its variable annuity (VA) block in stress scenarios. The continuation of the negative outlook reflects the downward pressure on the company should the announced sponsored demutualization (the transaction) by Constellation, an investment vehicle backed...

Ohio National Financial Services, Inc.: Rating affirmed; negative outlook reflects weaker capital position from financing risks in VA captives - Credit Opinion – 2020/06/25 – US$ 250.00 – ...Our credit view of Ohio National Financial Services' (Ohio National; senior unsecured debt Baa3 negative) and its life insurance subsidiaries Ohio National Life Insurance Co. (ONLIC; insurance financial strength (IFS) A3 negative) and Ohio National Life Assurance Corporation (ONLAC; IFS A3 negative) reflects the positive steps management has taken to improve the company's credit profile, offset by challenges in managing the variable annuity business. The company has improved the tenor of its debt ladder which reduced near-term liquidity risk, raised statutory capital through the sale of a non-core block of life insurance and annuity business, advanced its strategy to grow its protection oriented business, and is actively managing the exposure in its retained variable annuity (VA) GMIB block and hedging strategy which reduces its exposure to a downside scenario. The negative outlook reflects the continued challenges the company's financial profile faces from the competing demands to grow...

Ohio National Financial Services, Inc.: Update following downgrade to Baa3 senior debt, outlook remains negative - Credit Opinion – 2019/05/08 – US$ 250.00 – ...The downgrade and continued negative outlook of Ohio National Financial Services, Inc.'s (Ohio National) senior unsecured debt rating to Baa3 from Baa2 and the insurance financial strength (IFS) ratings on its life insurance subsidiaries (the lead operating companies are Ohio National Life Insurance Co. (ONLIC) and Ohio National Life Assurance Corporation ONLAC)) to A3 from A2 reflect the uncertainty about the company's ability to materially improve net capital generation over the near term, and the ongoing execution risk in its strategic initiatives to reduce the potential impact of a downside scenario on its capital levels, restructure its significant variable annuity (VA) tail risk, and profitably grow its life insurance business. Notwithstanding meaningful progress the company has made in implementing its strategy, the company's financial profile is challenged from the competing demands to grow the company and manage risk in the annuity business. On a positive note, Ohio National is...

Ohio National Financial Services, Inc.: Update following downgrade to Baa2 senior debt, outlook remains negative - Credit Opinion – 2018/12/20 – US$ 250.00 – ...The downgrade and continued negative outlook of Ohio National Financial Services, Inc.'s (Ohio National) senior unsecured debt rating to Baa2 from Baa1 and the insurance financial strength (IFS) ratings on its life insurance subsidiaries (the lead operating companies are Ohio National Life Insurance Company (ONLIC) and Ohio National Life Assurance Corporation (ONLAC)) to A2 from A1 reflect challenges the company faces in transitioning to a more focused life insurer, as well as significant tail risk associated with the company's closed block of variable annuities (VA). Moody's remains concerned about the continued execution risk of the company's plan to restructure its significant VA tail risk over the near term and the potential impact of a downside scenario on the company's capital levels. Moody's believes that the company's profitability and net capital generation will be challenged in the near term. In addition to the demands associated with managing its high risk profile concentration...