The $1 billion figure includes both member consideration and new capital infused in the business, as part of its demutualization process.

Constellation Insurance Holdings is backed by institutional investors Caisse de dépôt et placement du Québec (CDPQ) and Ontario Teachers’ Pension Plan Board. It targets acquisitions of life and property/casualty insurers based in North America

Established in 1909, Ohio National sells financial services in 49 states. As of December 31, 2020, its affiliated companies have US$41.2 billion in assets under management. Its products are issued by The Ohio National Life Insurance Co. and Ohio National Life Assurance Corp.

“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,” said Anurag Chandra, founder, chairman and chief executive officer CEO of Constellation.

The transaction is subject to customary approvals, including by the Ohio director of insurance and ONMH’s members.

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

Source: Insurance Journal