Constellation Insurance to acquire Ohio National for $1bn

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Constellation Insurance has agreed to acquire Ohio National Mutual Holdings (ONMH) and its subsidiary Ohio National Financial Services for $1 billion.

Backed by institutional investors Caisse de dépôt et placement du Québec (CDPQ) and Ontario Teachers’ Pension Plan Board, Constellation Insurance is an insurance holding company which pursues acquisitions of North America-based life and property and casualty (P&C) insurers.

Ohio National marks the maiden transaction for Constellation Insurance.

The deal includes member consideration and also infusion of new capital in the business, as part of its demutualization process.

Founded in 1909, Ohio National provides insurance products and services to help its policyholders get financial security and independence.

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The company has a network of financial professionals in 49 states. As of 31 December 2020, its affiliated firms have assets under management of $41.2 billion.

Constellation Insurance to acquire Ohio National for $1bn

Constellation Insurance to acquire Ohio National for $1bn. Photo courtesy of Gerd Altmann from Pixabay.

Anurag Chandra – Founder, Chairman, and CEO of Constellation Insurance said: “Today’s announcement marks an important first step for Constellation, as we deliver on our strategy to provide North American stock and mutual insurers access to long-term growth capital, enhanced ratings, scale efficiencies and aligned equity incentives, while preserving the independence, brand, existing operations and culture for which they are recognized.

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“We welcome CDPQ and Ontario Teachers’ upsized long-term capital commitment to continue to expand the platform in North America.”

Ohio National said that the deal will strengthen its financial position, improve its market position, and also enable growth in the future.

Barbara A. Turner – President and CEO of Ohio National said: “Over the past several years, we have been taking deliberate actions to ensure that our business is well positioned for the future and that our policyholders and associates are part of a stable and growing company.

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“In the midst of a challenging economic environment, historically low-interest rates, increased regulatory costs and pressure for the entire industry, Ohio National is taking this next logical step to fortify the business with additional capital and a more flexible capital structure. This will further unlock our opportunities and enable us to mitigate risk while investing in the future growth of the business.”

The deal, which is subject to regulatory approvals and customary conditions, and ONMH’s member approval, is expected to be wrapped up in the latter half of this year.

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