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Montgomery's Ohio National cuts 300 jobs in strategy shift

Montgomery insurer halts annuity, retirement sales
Posted at 3:51 PM, Sep 06, 2018
and last updated 2018-09-06 15:54:59-04

MONTGOMERY, Ohio - Ohio National Financial Services Inc. is eliminating 300 jobs as it exits the annuity and retirement business.

Starting Sept. 15, the company said it will focus on life and disability insurance, after a strategic review determined those product lines offered better growth prospects for the company going forward. In addition to focusing on its insurance lines, Ohio National will continue to grow its Latin American operations.

“We strongly believe this strategy will provide us with greater long-term financial flexibility to invest in product, technology and services that provide value to our policyholders and customers,” said Ohio National President Christopher Carlson in a press release.

The company did not respond to questions about the layoffs. Its press release cited changing regulations and an increasing cost of business in a “sustained low interest rate environment” as factors in the decision.

Ohio National has about 1,300 employees at its corporate headquarters in Montgomery. Its annual report said the company's revenue increased 10.4 percent to $2.2 billion but profit declined 90 percent in 2017 to $25.9 million. Whole life insurance sales reached a record level of $110 million, while disability income insurance revenue more than doubled to $6 million.