OneAmerica Financial Partners Inc.

The stable outlook on OneAmerica reflects our view that the company will maintain capitalization at least at the 'AA' level per our model while maintaining stable earnings in its core business segments. We could lower our ratings if: we believe OneAmerica will sustain capitalization below 'AA' per our model; we see volatility in earnings or capital, indicating poor underwriting in its key products; or we believe the company cannot defend its competitive position in the LTC combination space and we see significant declines in its sales. We are unlikely to upgrade OneAmerica in the next 24 months as the company focuses on growing its core business. Real U.S. GDP growth of 5.7% in 2021 and 4.1% in 2022 Core Consumer

...We expect OneAmerica Group to maintain a diversified earnings profile and leading market position in the long-term care (LTC) combination products market. OneAmerica Financial Partners Inc.'s competitive position benefits from a diversified earnings profile supported by its three main businesses: individual life and financial services, retirement services, and employee benefits. We think OneAmerica will continue to defend its market-leading position in combination products that link life insurance or annuities with LTC insurance through its niche care solutions business. We expect OneAmerica to maintain capitalization at the '##' level supported by stable earnings and a high-quality investment portfolio. At year-end 2020, OneAmerica's capital adequacy was redundant at the '##' level per our RBC model. We expect that OneAmerica's organic earnings generation capabilities will enable it to maintain '##' level capital adequacy over the next two years. While the pandemic is not yet over, the...

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