CINCINNATI, June 22, 2020 (GLOBE NEWSWIRE) — Ohio Nationwide Monetary Companies introduced at this time that Moody’s Traders Service has affirmed its scores for the monetary power of The Ohio Nationwide Life Insurance coverage Firm and Ohio Nationwide Life Assurance Company at ‘A3.’ The outlook stays unfavorable.
In its announcement, Moody’s highlights that, “The ratings affirmation of Ohio National and its core life insurance subsidiaries is based on the steps the company has taken to improve its credit profile.” It goes on to notice:
- “The company has improved the tenor of its debt ladder through a January 2020 refinancing of a 2022 term loan 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 VA GMIB block and hedging strategy which reduces its exposure to a downside scenario.”
- “Ohio National continues to maintain a high level of capital adequacy as measured by the combined Company Action Level Risk Based Capital (CAL RBC) ratio of approximately 453% at March 31, 2020 to proactively manage the risk associated with its variable annuity block.”
- “Ohio National also maintains a large block of whole life business, a positive from a product risk perspective, an aligned variable cost distribution, and a consistent record of prudent underwriting that has contributed to a productive and growing life insurance business.”
“We are pleased that Moody’s highlights our high level of capital adequacy and improved credit profile,” famous Gary T. “Doc” Huffman, CLU, ChFC, Ohio Nationwide chairman and chief govt officer. “We are successfully executing our strategy, all while maintaining our long-standing financial strength, and we continue to focus on serving our policyholders first.”
Moody’s outlook for Ohio Nationwide displays their view of the affect of the exterior atmosphere and our capacity to develop the corporate and handle our annuity threat. In April 2020, Moody’s modified the US life insurance coverage trade outlook to unfavorable. Said in Moody’s launch, “The coronavirus-related economic downturn is creating a severe and extensive credit shock across many sectors, regions and markets” together with the life insurance coverage trade.
The ‘A3’ ranking is Moody’s seventh-highest ranking on a 21-part scale. In response to Moody’s, insurers rated ‘A3’ are “upper-medium grade and are topic to low credit score threat.”
About Ohio Nationwide Monetary Companies
Since 1909, Ohio Nationwide has been dedicated to serving to people, households and companies shield what issues most. By our community of economic professionals throughout 49 states (all besides New York), the District of Columbia and Puerto Rico and thru affiliated operations in South America, we offer the insurance coverage merchandise that assist our policyholders obtain monetary safety and independence. As of December 31, 2019, its affiliated firms have $40.5 billion whole property beneath administration. Merchandise are issued by The Ohio Nationwide Life Insurance coverage Firm and Ohio Nationwide Life Assurance Company. Please discover ohionational.com for extra data and for the most recent firm updates, join with Ohio Nationwide on LinkedIn, Fb and YouTube.
Lisa Doxsee, APR