Constellation Insurance Holdings announces its indirect subsidiary Ohio National Seguros de Vida S.A. acquires Zurich's annuity business in Chile

CINCINNATI, May 08, 2023 (GLOBE NEWSWIRE) -- Constellation Insurance Holdings, Inc. (Constellation), a leading insurance holding company backed by institutional investors CDPQ and Ontario Teachers' Pension Plan Board (Ontario Teachers'), announced today that its Chilean subsidiary Ohio National Seguros de Vida S.A. has entered into an agreement for the acquisition of the Zurich Insurance Group (Zurich) annuity portfolio of approximately US$2.6 billion in reserves held in Chile.

Since 1993, Ohio National Seguros de Vida S.A. has been providing life insurance solutions to protect individuals, families, and businesses across Chile. It has a strong solvency position and holds local credit ratings of "AA" from both ICR (A Moody's affiliate) and Fitch Chile with total local reserves of approximately US$1.1 billion, as of December 2022.

Zurich is a leading multi-line insurer 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 participation on La Chilena Consolidada, a local insurance company founded in 1853.

"Today's announcement marks another important step for Constellation, as we execute our growth strategy across segments through organic growth and inorganic investments," affirmed Anurag Chandra, Founder, Chairman and CEO of Constellation. "Together with our US life insurance and annuity segments, our Latin American operations are increasingly forming an integral part of the organization."

"This significant portfolio acquisition furthers our goal to expand our Chilean market position," noted David Azzarito, Senior Vice President for Latin America, and Board President of Ohio National Seguros de Vida S.A. "Our Chilean company will emerge stronger financially. It also better positions us to service our policyholders; with nearly US$4 billion in local 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.

About Constellation

Constellation Insurance, Inc., is a leading insurance holding company serving consumers and small business owners in 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 affiliated (re)insurance entities. As of December 31, 2022, Constellation's family of insurance companies have over $34 billion in total assets under management. 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 capital investments.

About Ohio National Seguros de Vida S.A.

Ohio National Seguros de Vida S.A. is based in Santiago and present in Chile for 30 years, with US$1.3 billion in local assets. It distributes life insurance products across 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 group member clients. It holds a strong solvency position with "AA" local credit ratings from both the ICR and Fitch. Ohio National Seguros de Vida S.A. is a subsidiary of Constellation Insurance, Inc. (Ohio National Financial Services, Inc.).