Ohio National Announces Record Earnings, Sales and Capital Growth

CINCINNATI, OH--(Marketwire - February 13, 2009) - Ohio National Financial Services today announced records in earnings, sales and capital growth for 2008, including an unequalled industry record in individual life insurance sales performance.

"Ohio National had an outstanding year in 2008, despite one of the most volatile economic climates anyone can remember," reported David B. O'Maley, chairman, president and chief executive officer, at today's board of directors meeting. "We have been able to consistently grow our enterprise capital strength in the face of unprecedented market conditions while providing high-value, low-cost products to our customers. Given the extremely difficult economic environment that financial services companies face, our results are exceptional."

"At the core of our belief system and focus is delivering policyholder value, which derives from our mutual company heritage," O'Maley said. "Our management view and operational execution are long term because our commitments to policyholders are long term. We maintain a rigorous, conservative risk management discipline. Most importantly, our focus has been consistent through the years."

2008 Financial Highlights

-- GAAP equity (excluding FAS 115) was reported at $1.53 billion, an 8.7 percent increase, and representing a 10-year compound annual growth rate of 9.2 percent.

-- Pre-tax operating earnings climbed to $386.1 million, a 125.4 percent increase.

-- Net income (after tax) climbed to $146.3 million, a 26.4 percent increase.

2008 Sales Highlights

For the 19th consecutive year, the company has grown its individual life insurance sales. This sales record is unmatched in the industry. In addition, Ohio National's growth is organic and not achieved through acquisition. In total, a record $93.5 million of new annual premium was reported for individual life insurance, up from $92.7 million in 2007. Industry-wide, individual life insurance sales were down 6 percent for the year (according to LIMRA International).

Rating Highlights

Independent industry analysts in the past year reaffirmed the affiliated companies' very strong financial security ratings. These included:

-- Standard & Poor's: "AA" (Very Strong), its third highest ranking on a 21-part scale, for financial security characteristics. The report noted that the rating reflected the "consistently favorable operating performance, solid competitive position built on diverse distribution channels, very strong capitalization, and strong life insurance underwriting discipline."

-- A. M. Best: "A+ (Superior)," its second-highest rating of 16 categories (based on the company's balance sheet strength, operating performance and business profile).

-- Moody's: "A1," its fifth-highest financial strength rating on a 21- part scale (based on the ability to repay punctually senior policyholder claims and obligations). In addition to the rating reaffirmation in November, Moody's stated that Ohio National's "rating outlook is stable," which is noteworthy given Moody's "negative" outlook for the U.S. insurance sector in October.

Additional 2008 Information

Dividends paid to participating policyholders were $38.6 million, a 9.4 percent increase. For the 85th consecutive year, Ohio National paid dividends on all participating whole life policies.

                    OHIO NATIONAL MUTUAL HOLDINGS, INC.
                           Affiliated companies:
                  Ohio National Financial Services, Inc.
                The Ohio National Life Insurance Company
                Ohio National Life Assurance Corporation
                            (Consolidated)
               Summary Results(1):  Through December 2008



                                                12/08     12/07   % change
                                              --------- --------- --------
Total Equity (billions)
(excluding FAS 115)                           $    1.53 $    1.41      8.7%
                                              --------- --------- --------
Pre-tax Operating Earnings (millions)         $   386.1 $   171.3    125.4%
                                              --------- --------- --------
Total GAAP Revenue (billions)(2)              $    1.24 $    1.17      5.5%
                                              --------- --------- --------
Total Assets Under Management (billions)      $    21.6 $    24.7    -12.6%
                                              --------- --------- --------
Total Equity (billions)
(including FAS 115)                           $    1.27 $    1.44    -12.1%
                                              --------- --------- --------
Net Income (millions)
(after tax)                                   $   146.3 $   115.8     26.4%
                                              --------- --------- --------


(1) The financial data presented above is on the basis of Generally
    Accepted Accounting Principles (GAAP), except for dividends. In
    addition, all financial information in this news release is consistent
    with financial results reviewed with our outside auditors and is
    considered unaudited because the final audit process is not yet
    complete.

(2) Total GAAP revenue includes premiums, policy charges, investment
    income, net realized losses and change in derivatives.

Tracing its corporate origins to 1909, Ohio National today markets a variety of insurance and financial products through more than 50,000 representatives in 47 states (all except Alaska, Hawaii and New York), the District of Columbia, Puerto Rico and through subsidiary operations in Santiago, Chile. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Voted Cincinnati's "Best Place to Work" (large category) by the Business Courier (November 2003) and "25 Best Medium-Sized Companies to Work for in America" by the Great Place to Work Institute (June 2004), Ohio National has more than 850 corporate headquarters associates. Visit www.ohionational.com for more information.

Ohio National has received high marks for financial strength and claims paying ability from major rating agencies; however, such ratings do not refer to the performance of our variable accounts nor imply approval of our variable contracts or their portfolios.

Dividend scales are subject to change at the discretion of the Board of Directors.

Contact Information: Contact: Adrienne Gutbier, APR 513.794.6254 office 513.520.1612 cellular