S&P lowers Ohio National

S&P said it lowered the long-term counterparty credit and financial strength ratings on Ohio National's core operating companies (Ohio National Life Insurance Co. and Ohio National Life Assurance Co.) to A+ from AA-.

The agency also said it lowered the counterparty credit rating on the holding company, Ohio National Financial Services Inc., to BBB+ from A-.

The outlook is stable.

S&P said it believes that Ohio National's variable annuity book and the company's potential exposure to market volatility has grown to a significant level.

Ohio National has issued variable annuities with guaranteed living benefits for over a decade, but historically has taken actions to mitigate its risks, the agency said.

Despite these measures, S&P said it believes that the retained risk on about $12.8 billion of account value could potentially expose the company to significant market volatility, especially given the relatively small size of the company's capital base.

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