Canadian Pensions Buy Ohio National Mutual Holdings

Posted on 03/23/2021

Constellation Insurance Holdings, Inc. is backed by institutional investors Caisse de dépôt et placement du Québec (CDPQ) and Ontario Teachers’ Pension Plan Board (Ontario Teachers’). Constellation’s founding investors and equal partners, CDPQ and Ontario Teachers’, are two of the largest long-term institutional investors in North America

On March 23, 2020, Constellation Insurance Holdings entered into an agreement for its inaugural transaction through the acquisition of Cincinnati-based Ohio National Mutual Holdings, Inc. (ONMH) and its wholly owned subsidiary Ohio National Financial Services, Inc. (collectively, Ohio National) for a total consideration of US$1 billion, which includes both member consideration and new capital infused in the business, as part of its demutualization process. Ohio National executives cited “challenging” economic conditions in announcing an expansive reorganization plan to demutualize the company. The Ohio National Mutual Holdings board of directors unanimously approved a strategic transaction with Constellation Insurance Holdings. Ohio National Mutual Holdings is the parent company of Ohio National Financial Services.

Constellation Insurance Holdings is targeting to acquire high-quality acquisitions, demutualizations and other opportunities in the property and casualty (P&C) and life insurance sector. Co-founded by Chak Raghunathan and Avi Katz, Agam Capital Management is an insurance solutions provider and strategic partner to Constellation.

Established in 1909, Ohio National is a provider of financial products and services that helps its policyholders achieve financial security and independence. It has a network of financial professionals operating across 49 states and, as of December 31, 2020, its affiliated companies have US$ 41.2 billion in assets under management.

The transaction is subject to customary conditions, including regulatory approvals, the approval of the Ohio Director of Insurance and ONMH’s member approval. Upon closing of the transaction, Ohio National will maintain its management team and brand, and will continue to be headquartered in Cincinnati, Ohio.

Debevoise & Plimpton LLP is serving as legal counsel to Constellation in the transaction.

Keywords: Caisse de depot et placement du Quebec.

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