Constellation Insurance Holdings, Inc. announced March 23 that it has entered into an agreement for its inaugural transaction through the acquisition of Cincinnati-based Ohio National Mutual Holdings, Inc. (ONMH) and its subsidiary Ohio National Financial Services, Inc.
Constellation is backed by institutional investors Caisse de dépôt et placement du Québec (CDPQ) and Ontario Teachers' Pension Plan Board.
The US$1 billion acquisition includes both member consideration and new capital infused in the business, as part of its demutualization process. Ohio National has a network of financial professionals operating across 49 states. Its affiliated companies had US$41.2 billion in assets under management as at Dec. 31, 2020.
The transaction is subject to customary conditions including regulatory approvals.
Seeking high-quality insurance sector acquisitions
Constellation says it will continue to seek out high-quality acquisitions, demutualizations and other opportunities in the property and casualty (P&C) and life insurance sector.
"Today's announcement marks an important first step for Constellation, as we deliver on our strategy to provide North American stock and mutual insurers access to long-term growth capital, enhanced ratings, scale efficiencies and aligned equity incentives, while preserving the independence, brand, existing operations and culture for which they are recognized," stated Anurag Chandra, Founder, Chairman & CEO of Constellation. "We welcome CDPQ and Ontario Teachers' upsized long-term capital commitment to continue to expand the platform in North America."
A uniquely positioned platform
"Constellation is a uniquely positioned platform, combining long-term capital and deep industry experience to offer differentiated solutions in an increasingly consolidated market. By working closely with Constellation since our initial investment and expanding our commitment alongside a trusted investment partner, Ontario Teachers', we aim to support insurers who are navigating a complex environment, such as Ohio National, as they embark upon the next phase of their growth," stated Martin Laguerre, Executive Vice-President and Head of Private Equity and Capital Solutions, CDPQ.
