Ohio National Life has announced its 2013 dividend interest rate. This was actually announced a few weeks ago, and announcing has been on the to-do list, but we were a tad side tracked.
Ohio National will pay out $76 million in policy holder dividends for in 2013.
The dividend interest rate will be 15 basis points lower in 2013. For contracts issued prior to the mutual holding company formation the dividend interest rate will be 5.75% and for contracts issued after the dividend interest rate will be 6%.
If you are a contract owner wondering where you fall, a quick way to make this determination is to look at your policy issue date. Contracts issued prior to August 1, 1998 are pre mutual holding company formation contracts and have the 5.75% rate while those issued after August 1, 1998 are post mutual holding company formation contracts earning the 6% rate.
Keep in mind the dividend interest rate is based off the policy's reserve, so it cannot necessarily be stated that the higher dividend interest rates is better.
In its statement Ohio National cited the on going low interest rate environment for a reason to be prudently conservative in their investment outlook.
Ohio National has achieved remarkable results concerning their general account investment portfolio over the past year and for the past several years. They too, however, are aware of the drag continued low interest rates may have on future investment performance of these assets.
We'll be sure to bring you any additional updates about the industry or Ohio National Life.
Brandon launched the Insurance Pro Blog in July of 2011 as a project to de-mystify the life insurance industry. Brandon was born in Northern New England, and he currently calls VT home. He attended Syracuse University and graduated with a triple major in Economics, Public Administration, and Political Science.
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