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A.M. Best Affirms Credit Ratings of Ohio National Financial Services, Inc. and Its Subsidiaries

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A.M. Best has affirmed the Financial Strength Rating (FSR) of A+
(Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
"aa-" of The Ohio National Life Insurance Company and its wholly
owned subsidiary, Ohio National Life Assurance Corporation
(together referred to as the Ohio National Life Group). These
companies are the principal insurance subsidiaries of Ohio National
Financial Services, Inc.
(ONFS), which is an intermediate holding
company wholly owned by Ohio National Mutual Holdings, Inc.
Concurrently, A.M. Best has affirmed the Long-Term ICR of "a-" and all
existing Long-Term Issue Credit Ratings (Long-Term IR) of ONFS. (See
below for a detailed listing of the Long-Term IRs).

Additionally, A.M. Best has affirmed the FSR of A (Excellent) and the
Long-Term ICR of "a+" of National Security Life and Annuity Company
(NSLAC) (New York, NY). The outlook of these Credit Ratings (ratings) is
stable. All companies are headquartered in Cincinnati, OH, unless
otherwise specified.

The ratings reflect the Ohio National Life Group's balance sheet
strength, which A.M. Best categorizes as strongest, as well as its
strong operating performance, favorable business profile and appropriate
enterprise risk management (ERM). The group's balance sheet strength
assessment is based on its risk-adjusted capitalization being at the
strongest level, good liquidity and financial flexibility. A.M. Best
notes that while the group's risk-adjusted capitalization remains at the
strongest level, it has been enhanced by the issuance of surplus notes
and the use of captives to support redundant statutory reserves. A.M.
Best considers financial leverage and interest coverage ratios to be
within acceptable ranges. Partially offsetting these positive factors is
the group's above-average separate account exposure, which contributes
to potential equity market and interest rate sensitivity, although these
risks are mitigated partially by hedging and the utilization of external
reinsurance.

The assessments of group's operating performance and business profile
consider its overall middle-market position within the individual life
and variable and fixed indexed annuity markets, its continued positive
trend in individual life sales and its stable adjusted GAAP operating
results. The assessment of the group's ERM recognizes its strong risk
management framework, including front-end risk management practices and
sound governance structure.

The ratings of NSLAC reflect the company's balance sheet strength, which
A.M. Best categorizes as very strong, as well as its adequate operating
performance, limited business profile and appropriate ERM. The ratings
also reflect the support of the company's parent, the Ohio National Life
Group. The company's balance sheet strength assessment is based on the
strongest level of risk-adjusted capitalization and a high quality
investment portfolio. These strengths are offset partially by a modest
business and earnings profile relative to the group, as well as
unfavorable top-line trends in variable annuities.

The following Long-Term IRs have been affirmed with a stable outlook:

Ohio National Financial Services, Inc.
— "a-" on $250
million 6.625% senior unsecured notes, due May 2031
— "a-" on $300
million 6.375% senior unsecured notes, due April 2020
The Ohio
National Life Insurance Company

— "a" on $50 million 8.50%
surplus notes, due May 2026
— "a" on $250 million 6.875% surplus
notes, due June 2042

This press release relates to Credit Ratings that have been published
on A.M. Best's website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best's
Recent
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Understanding
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
Guide
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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