Ohio National Demutualization

Ohio National Demutualization In today's BetterWealth episode, Dan and I discuss Ohio National's decision to go from a mutual company to a stock company which is called a demutualization process. We talk about the pros and cons, as well as, discuss the details we have given to date.   What is happening? If approved, Ohio National will demutualize and become a stock-owned subsidiary of the Canadian company Constellation Insurance Holdings, Inc.  Constellation will purchase Ohio National in its entirety for $1 Billion.  $500 million will go to Ohio National participating policyholders to buy out their ownership interest in the company The remaining $500 million will be for strategic business purposes The proposed transition requires regulatory and policy holder approval The ultra-low interest rate environment is something these 100+ year old companies haven’t faced at length before Large old companies are generally slow to adapt to new trends New technology-driven companies are increasing competition The recent announcement suggests that this transaction will strengthen the company’s financial position, enhance its market position, and give it the necessary resources to facilitate future growth.  **This does not mean other mutual companies are headed in the same direction. #BETTERWEALTH For more information on BetterWealth or the content you hear on the Podcast visit us at http://www.betterwealth.com/podcast (www.betterwealth.com/podcast).