CINCINNATI, May 08, 2023 (GLOBE NEWSWIRE) — Constellation Insurance Holdings, Inc. (Constellation), a leading insurance holding company backed by institutional investors CDPQ and the Ontario Teachers’ Pension Plan Board, announced today that the subsidiary Ohio National Seguros de Vida SA entered into an agreement to acquire Zurich Insurance Group’s (Zurich) annuity portfolio of approximately US$2.6 billion in reserves held in Chile.
Since 1993, Ohio National Seguros de Vida SA has been providing life insurance solutions to protect individuals, families and businesses in Chile. It has a strong solvency position and holds ‘AA’ domestic credit ratings from both ICR (an affiliate of Moody’s) and Fitch Chile with total domestic reserves of approximately US$1.1 billion as of December 2022.
Zurich is a leading multi-line insurance company serving people and businesses in more than 200 countries and territories. Founded 150 years ago, Zurich entered the Chilean market in 1991 when it acquired a majority stake in La Chilena Consolidada, a local insurance company founded in 1853.
“Today’s announcement marks another important step for Constellation as we execute on our segment growth strategy through organic growth and inorganic investments,” confirmed Anurag Chandra, Founder, Chairman and CEO of Constellation. “Together with our US life and annuity segments, our Latin American operations increasingly form an integral part of the organization.”
“This significant portfolio acquisition contributes to our goal of expanding our market position in Chile,” noted David Azarito, Senior Vice President for Latin America and President of the Board of Ohio National Seguros de Vida SA. “Our Chilean company will become stronger financially. It also better positions us to serve our policyholders; with nearly US$4 billion in domestic assets.”
The transaction is subject to customary conditions, including regulatory approvals.
BNP Paribas Securities Corp. served as financial advisor on the transaction to Constellation Insurance Inc.
Constellation Insurance, Inc., is a leading insurance holding company serving consumers and small business owners in the United States and Latin America through its insurance subsidiaries, which include The Ohio National Life Insurance Company, Ohio National Life Assurance Corporation, National Security Life and Annuity Company , Ohio National Seguros de Vida and certain other related (re)insurance entities. As of December 31, 2022, Constellation’s family of insurance companies had total assets under management of more than $34 billion. Constellation’s investors and equal partners, CDPQ and Ontario Teachers, are two of the largest long-term institutional investors in North America, managing a total of C$650 billion in net assets, including over C$140 billion in private equity investments.
About Ohio National Life Insurance SA
Ohio National Seguros de Vida SA is based in Santiago and has been present in Chile for 30 years, with US$1.3 billion in local assets. It distributes life insurance products in Chile through more than 650 independent insurance professionals. The company currently serves and protects more than 26,000 individual clients from financial risk, along with nearly 2 million client group members. It has a strong solvency position with ‘AA’ domestic credit ratings from both ICR and Fitch. Ohio National Seguros de Vida SA is a subsidiary of Constellation Insurance, Inc. (Ohio National Financial Services, Inc.).