Shopping for life insurance from Ohio National Life Insurance Company requires navigating a significant corporate transformation that many consumers find confusing. You see, the company that operated for over a century under the Ohio National name completed a dramatic rebranding to AuguStar Life in 2023, following acquisition by Canadian institutional investors and a strategic exit from most annuity markets.
Our comprehensive analysis examines both the legacy Ohio National reputation and the current AuguStar Life reality, evaluating financial strength, product offerings, and competitive positioning to help you determine whether this transformed company deserves consideration for your life insurance needs. Understanding both the opportunities and limitations helps inform smart coverage decisions in a complex marketplace.
What Happened to Ohio National Life Insurance Company?
Ohio National Life Insurance Company underwent a dramatic transformation beginning in 2018 that fundamentally changed its business model, ownership structure, and market positioning. Understanding this evolution helps explain current product offerings, service capabilities, and why the company you research today differs significantly from historical Ohio National.
Key insight: The transformation from Ohio National to AuguStar Life represents one of the most significant corporate restructurings in recent life insurance history, affecting everything from product availability to agent relationships and customer service capabilities.
Timeline of Major Changes:
- 2018 Strategic Shift: Ohio National announced its exit from most annuity markets and laid off approximately 300 employees (nearly 25% of workforce) to focus exclusively on life insurance products, ending decades of diversified financial services.
- 2022 Demutualization and Acquisition: The company completed a sponsored demutualization transaction in March 2022, converting from mutual ownership to stock company status and becoming a subsidiary of Constellation Insurance Holdings.
- 2023 Complete Rebranding: Ohio National officially rebranded to AuguStar Life Insurance Company, adopting new marketing, product names, and corporate identity while maintaining existing policy obligations.
New Ownership Structure: Constellation Insurance Holdings is backed by two major Canadian institutional investors: Caisse de dépôt et placement du Québec (CDPQ) and Ontario Teachers’ Pension Plan Board, representing over $740 billion in combined managed assets.
“The Ohio National transformation represents a strategic pivot from traditional mutual company philosophy to a private equity-backed growth strategy. While this provides capital for expansion, it fundamentally changes the company’s relationship with policyholders and long-term objectives.”
– InsuranceBrokers USA – Managment Team
Ohio National to AuguStar Life Transformation
| Aspect | Ohio National (Pre-2022) | AuguStar Life (2023+) |
| Ownership | Mutual company | Canadian investor-backed |
| Product Focus | Life insurance + annuities | Primarily life insurance |
| Employee Count | ~1,300 (2018) | ~1,000 (post-layoffs) |
| Market Strategy | Diversified financial services | Indexed life insurance focus |
| Distribution | Broad agent network | Rebuilt relationships |
Impact on Existing Policyholders:
- Policy Continuity: Existing Ohio National policies remain valid and unchanged, with AuguStar Life maintaining all contractual obligations including dividend payments and death benefits.
- Service Transition: Customer service operations transitioned to AuguStar Life systems, though some policyholders report challenges during the conversion period and ongoing service issues.
- Agent Relationships: Many long-term Ohio National agents departed during the transition, affecting ongoing policy service and relationship continuity for existing policyholders.
Bottom Line
The Ohio National to AuguStar Life transformation represents a fundamental business model change that affects everything from product offerings to customer service, requiring careful evaluation of current capabilities rather than relying on historical reputation.
How Financially Strong is AuguStar Life Today?
AuguStar Life’s financial strength reflects both the legacy Ohio National foundation and significant changes resulting from ownership transition, strategic refocusing, and backing from major institutional investors. Understanding current financial metrics helps assess the company’s ability to meet long-term policy obligations.
The company’s financial profile shows mixed results: strong capitalization from new ownership but concerns about market position, customer satisfaction, and operational efficiency during the transition period.
Current Financial Strength Ratings:
- A.M. Best Rating: A (Excellent) – reaffirmed in December 2024, representing the third-highest rating category out of 16 possible grades.
- Fitch Ratings: A (Strong) – upgraded from BBB+ in May 2025, indicating improved financial profile following ownership transition and strategic repositioning.
- Moody’s Rating: Baa1 (Good) – downgraded from previous A1 rating due to strategic changes and market repositioning, though still within investment grade.
AuguStar Life Financial Snapshot (2024)
| Financial Metric | Amount/Rating | Industry Context |
| Total Assets | $34.7 billion (Constellation) | Mid-size insurer |
| Annual Premiums | $1.15 billion | 0.0463% market share |
| A.M. Best Rating | A (Excellent) | Above average |
| Fitch Rating | A (Strong) | Recently upgraded |
| Years in Business | 115+ years | Established history |
Financial Strengths:
- Strong Capitalization: Backing from CDPQ and Ontario Teachers’ provides substantial capital resources and financial stability that exceeds what the company could achieve independently.
- Improved Capital Position: The demutualization process and new ownership injected significant capital, strengthening the company’s ability to write new business and weather economic challenges.
- Conservative Investment Strategy: Maintaining conservative investment approach appropriate for life insurance obligations, with diversified portfolio management through institutional investor expertise.
- Dividend Payment History: Continued payment of policyholder dividends for over 90 consecutive years, demonstrating commitment to participating policy obligations despite ownership changes.
Areas of Concern:
- Market Share Decline: Reduced market presence following strategic repositioning and agent departures, with only 0.0463% of total life insurance market share.
- Operational Disruption: Significant workforce reductions and system changes affect operational efficiency and customer service delivery during transition period.
- Rating Volatility: Mixed rating actions reflect uncertainty about long-term strategic direction and market positioning under new ownership structure.
“AuguStar Life’s financial strength benefits significantly from institutional investor backing, but operational challenges and market repositioning create uncertainty about long-term competitive positioning. The company appears financially stable but faces execution risks.”
– InsuranceBrokers USA – Management Team
Key Takeaways
- Strong financial backing from major Canadian institutional investors provides stability
- Current ratings indicate adequate financial strength for policy obligations
- Recent rating upgrades reflect improved capital position under new ownership
- Operational challenges and market share concerns warrant ongoing monitoring
What Life Insurance Products Does AuguStar Life Offer?
AuguStar Life’s product portfolio focuses primarily on life insurance with particular emphasis on indexed products, reflecting the company’s strategic pivot away from annuities and traditional whole life coverage. Understanding current offerings helps determine whether their products meet your specific coverage needs and financial objectives.
Key insight: The product lineup represents a significant departure from traditional Ohio National offerings, with increased focus on indexed universal life products and reduced emphasis on traditional whole life insurance that historically attracted many customers.
Current Life Insurance Products:
- Term Life Insurance: Traditional term coverage with conversion options available, though the company’s focus has shifted toward permanent products with higher profit margins.
- Virtus IUL II (Indexed Universal Life): Flagship product allowing cash value accumulation based on market index performance, with multiple index options and guaranteed minimum interest rates.
- Virtus Protect IUL: Focused on death benefit protection with strong no-lapse guarantees, combining permanent coverage with index-linked growth potential for cash values.
- Prestige Indexed Whole Life: Unique hybrid product combining traditional whole life structure with indexed interest crediting, offering both guarantees and growth potential.
AuguStar Life Product Comparison
| Product Type | Best For | Key Features |
| Term Life | Temporary protection needs | Conversion options, competitive rates |
| Virtus IUL II | Cash accumulation focus | Multiple index options, loan access |
| Virtus Protect IUL | Death benefit protection | No-lapse guarantees, index upside |
| Prestige Indexed Whole Life | Conservative growth | Whole life guarantees + index interest |
Notable Product Features:
- ClearPath Accelerated Underwriting: Streamlined application process for healthy applicants ages 18-50 seeking up to $1 million in coverage, with potential approval in as little as 5 days without medical exams.
- Rider Options: Comprehensive rider portfolio including additional insured riders, children’s term coverage, and waiver of premium benefits to customize policies for specific family situations.
- Conversion Credits: Unique feature providing credits toward permanent insurance when converting from term coverage, helping offset premium increases during conversion.
- Index Options: Multiple market index choices for indexed products, including traditional S&P 500 and alternative index strategies for portfolio diversification.
Product Limitations and Concerns:
- Reduced Product Breadth: Elimination of annuity products and scaling back of traditional whole life options limits comprehensive financial planning solutions for clients seeking diversified product portfolios.
- Complex Product Structure: Heavy emphasis on indexed products requires sophisticated understanding of market mechanics, fees, and potential outcomes that may confuse average consumers.
- Agent Training Challenges: Rapid product changes and reduced agent network affect quality of product education and sales support available to potential customers.
Bottom Line
AuguStar Life’s product portfolio emphasizes indexed life insurance solutions that offer growth potential but may be overly complex for consumers seeking straightforward permanent coverage or preferring traditional whole life insurance guarantees.
How is AuguStar Life’s Customer Service?
AuguStar Life’s customer service represents one of the most significant challenges facing the transformed company, with industry data and customer feedback indicating substantial room for improvement compared to both industry standards and the company’s historical performance.
The transformation from Ohio National to AuguStar Life disrupted customer service operations, agent relationships, and policy administration systems, creating ongoing challenges that affect current policyholder satisfaction and new customer experience.
Customer Service Performance Metrics:
- NAIC Complaint Index: AuguStar Life receives a concerning 10.82 complaint index score, meaning the company receives nearly 11 times more complaints than expected based on its market size.
- Response Time Challenges: Customer reports indicate longer-than-average response times for policy questions, beneficiary changes, and claims processing compared to industry standards.
- System Integration Issues: Ongoing challenges with policy administration systems following the corporate transition affect accuracy and efficiency of customer service interactions.
Customer Service Challenges
| Service Area | Current Status | Industry Comparison |
| Complaint Index | 10.82 (very high) | 1.0 is average |
| Phone Response | Extended wait times | Below industry average |
| Online Services | Basic functionality | Limited compared to leaders |
| Agent Support | Rebuilding relationships | Disrupted network |
Specific Service Challenges:
- Agent Relationship Disruption: The transformation alienated many long-term Ohio National agents, reducing the quality and availability of ongoing policy service and customer support.
- Policy Administration Issues: System changes and staff reductions created delays and errors in routine policy maintenance, beneficiary updates, and premium processing.
- Claims Processing Delays: Some policyholders report extended claims processing times and increased documentation requirements compared to historical company performance.
- Communication Gaps: Limited proactive communication about company changes, policy impacts, and available services leaves customers feeling uninformed about important developments.
“The customer service challenges at AuguStar Life reflect broader industry trends during major corporate transitions. While financial stability may be maintained, operational excellence often suffers during periods of significant organizational change.”
– InsuranceBrokers USA – Management Team
Positive Service Aspects:
- Digital Capabilities: Investment in digital platforms and online policy management tools provides some convenience for tech-savvy customers comfortable with self-service options.
- Specialized Support: Dedicated support teams for complex indexed product questions and advanced planning concepts, though availability may be limited.
- Institutional Backing: Strong financial resources from the parent company provide the capability for service improvements, though the implementation timeline remains uncertain.
Service Improvement Initiatives:
- System Investments: Ongoing technology investments aimed at improving policy administration efficiency and customer experience, though benefits may take time to materialize.
- Staff Training Programs: Enhanced training for customer service representatives on new products and company systems, addressing knowledge gaps from workforce transitions.
- Agent Recruitment: Efforts to rebuild the distribution network and agent relationships to improve customer support and policy service quality.
Key Takeaways
- Customer service significantly lags industry standards with high complaint rates
- Corporate transformation disrupted operations and agent relationships
- Current service challenges affect both existing and new policyholders
- The company has resources for improvement but timeline for meaningful progress unclear
What Are the Advantages and Disadvantages?
Evaluating AuguStar Life requires balancing legitimate advantages from strong financial backing and innovative products against significant operational challenges and customer service concerns that affect the overall policyholder experience.
Advantages of AuguStar Life Insurance:
- Strong Financial Backing: Support from major Canadian institutional investors provides exceptional capital strength and financial stability that exceeds what many independent insurers can offer.
- Innovative Product Design: Unique indexed whole life products and advanced universal life options provide creative solutions for customers seeking growth potential with insurance protection.
- Long Operating History: Over 115 years of operation and 90+ consecutive years of dividend payments demonstrate long-term commitment to policyholder obligations.
- Accelerated Underwriting: ClearPath program offers fast approval for healthy applicants, with potential coverage decisions in as few as 5 days without medical exams.
- Conversion Benefits: Unique conversion credits for term-to-permanent policy conversions provide additional value not available from most competitors.
“AuguStar Life’s institutional backing provides financial advantages that many traditional mutual companies cannot match. However, operational execution and customer service delivery remain significant challenges that affect the overall value proposition.”
– InsuranceBrokers USA – Management Team
Disadvantages and Limitations:
- Poor Customer Service: High complaint index (10.82) and extended response times create frustration for policyholders needing assistance with policy questions or changes.
- Agent Network Disruption: Loss of experienced agents during transformation reduces available expertise and ongoing policy support for customers.
- Limited Product Breadth: Focus on indexed products and elimination of annuities restricts comprehensive financial planning options compared to full-service competitors.
- Complex Product Structure: Heavy emphasis on indexed products requires sophisticated understanding that may overwhelm customers seeking straightforward coverage.
- Operational Uncertainty: Ongoing system changes and workforce adjustments create uncertainty about service quality and policy administration efficiency.
Comparison to Industry Leaders:
- Financial Strength vs. Northwestern Mutual: While AuguStar Life maintains good ratings, Northwestern Mutual’s superior financial metrics ($700 billion assets vs. $34.7 billion) and AAA ratings provide greater long-term security.
- Customer Service vs. New York Life: Industry leaders like New York Life maintain customer satisfaction scores and service quality that significantly exceed AuguStar Life’s current performance levels.
- Product Innovation vs. Guardian: While AuguStar offers unique indexed products, companies like Guardian provide better balance of innovation and traditional coverage options.
“AuguStar Life represents a company in transition with strong financial potential but significant execution challenges. The gap between financial capability and operational delivery creates both opportunity and risk for potential policyholders.”
– InsuranceBrokers USA – Management Team
Key Takeaways
- Strong financial backing provides security but doesn’t guarantee superior customer experience
- Innovative products offer unique features but may be overly complex for average consumers
- Customer service challenges significantly impact the overall value proposition
- Company appears better suited for sophisticated buyers than the mainstream market
How Does AuguStar Life Compare to Competitors?
AuguStar Life occupies a unique but challenging position in the life insurance marketplace, competing against established industry leaders while managing ongoing operational challenges and rebuilding market relationships following its transformation.
Understanding competitive positioning helps determine whether AuguStar Life offers meaningful advantages over alternative carriers or represents a compromise choice for specific situations.
Competitive Positioning Analysis:
- vs. Traditional Mutual Companies: AuguStar Life’s institutional backing provides capital advantages but lacks the policyholder-focused governance and consistent service delivery that characterizes leading mutual insurers.
- vs. Stock Companies: The company offers competitive financial strength but struggles with operational efficiency and customer service quality compared to well-managed stock insurers.
- vs. Indexed Product Specialists: While offering innovative indexed products, AuguStar Life faces competition from specialists with deeper expertise and stronger distribution networks in indexed life insurance.
AuguStar Life vs. Major Competitors
| Factor | AuguStar Life | Northwestern Mutual | New York Life |
| Financial Rating | A (A.M. Best) | A++ (Superior) | A++ (Superior) |
| Assets | $34.7 billion | $700+ billion | $400+ billion |
| Customer Service | Below average | Excellent | Very good |
| Product Innovation | Strong indexed focus | Traditional + innovative | Comprehensive range |
| Market Position | Rebuilding | Market leader | Top tier |
Specific Competitive Advantages:
- Institutional Capital Access: Backing from major pension funds provides financial resources that exceed what traditional mutual companies can access, enabling competitive product development and pricing.
- Focused Product Strategy: Concentration on indexed life insurance allows specialized expertise in this growing market segment, potentially providing better products than generalist competitors.
- Underwriting Innovation: ClearPath accelerated underwriting competes effectively with industry leaders in providing fast coverage decisions for healthy applicants.
Competitive Disadvantages:
- Service Quality Gap: Customer service performance significantly lags industry leaders, creating competitive disadvantage in customer retention and satisfaction.
- Distribution Network Weakness: Reduced agent network and damaged relationships limit market reach compared to competitors with strong, established distribution systems.
- Brand Recognition Challenges: AuguStar Life lacks the brand recognition and consumer trust that benefit established competitors like New York Life or State Farm.
- Product Breadth Limitations: Narrow focus on life insurance reduces ability to serve comprehensive financial planning needs compared to full-service competitors.
Competitive Positioning Recommendations:
Best Competitive Use Cases: AuguStar Life may compete effectively for sophisticated buyers seeking indexed life insurance products who value innovation over comprehensive service.
Avoid When: Customers prioritizing customer service quality, brand recognition, or comprehensive financial planning support should consider top-rated life insurance alternatives from industry leaders.
Consider for: Specific product needs like indexed whole life insurance or situations where accelerated underwriting provides meaningful time advantages.
Bottom Line
AuguStar Life offers competitive financial strength and innovative products but generally lags industry leaders in customer service, market position, and comprehensive support capabilities that matter most to typical life insurance buyers.
Who Should Consider AuguStar Life Insurance?
AuguStar Life serves specific market segments effectively despite broader competitive challenges, particularly appealing to sophisticated buyers with specific product needs who prioritize innovation over comprehensive service delivery.
Ideal Candidates for AuguStar Life:
- Indexed Product Enthusiasts: Investors specifically seeking indexed life insurance solutions who understand the product mechanics and value the unique indexed whole life offerings.
- Sophisticated Financial Planners: High-net-worth individuals working with experienced advisors who can navigate product complexity and potential service challenges.
- Fast Coverage Seekers: Healthy applicants needing quick coverage decisions who benefit from accelerated underwriting and streamlined application processes.
- Existing Ohio National Policyholders: Current policyholders satisfied with their coverage and comfortable maintaining relationships despite service challenges.
Poor Fit Scenarios:
- Service-Sensitive Customers: Individuals who prioritize responsive customer service and ongoing policy support should consider carriers with superior service track records.
- Traditional Coverage Seekers: Customers preferring straightforward whole life or term insurance without complex indexed features should explore traditional life insurance leaders with proven products.
- Comprehensive Planning Needs: Families requiring integrated financial planning with annuities, disability insurance, and other products should consider full-service providers.
- Brand-Conscious Buyers: Consumers who value established brand recognition and industry reputation should explore well-known market leaders.
Key Takeaways
- Best suited for sophisticated buyers with specific indexed product interests
- Strong option for accelerated underwriting needs with healthy applicants
- Poor choice for service-sensitive customers or traditional coverage preferences
- Consider carefully against established alternatives before committing
What Are Better Alternatives to Consider?
Before selecting AuguStar Life, prospective policyholders should evaluate established alternatives that may provide superior customer service, broader product offerings, or better overall value for their specific insurance needs.
Superior Customer Service Alternatives:
- Northwestern Mutual: Industry-leading customer satisfaction, comprehensive financial planning, and AAA financial ratings provide superior overall experience for customers prioritizing service quality.
- New York Life: Top-tier financial strength combined with excellent customer service and comprehensive product offerings for families seeking reliable, full-service support.
- Guardian Life: Strong mutual company focus on policyholder service with innovative products and established agent network providing ongoing support.
Better Value Traditional Products:
- MassMutual: Competitive whole life insurance with strong dividend performance and comprehensive financial planning capabilities for traditional coverage needs.
- Penn Mutual: Excellent whole life products with competitive pricing and strong customer service for families seeking traditional permanent coverage.
- State Farm: Comprehensive product offerings with local agent support and competitive pricing for both term and permanent life insurance needs.
Indexed Product Specialists:
- Lincoln Financial: Strong indexed universal life products with established distribution network and superior customer service capabilities.
- Pacific Life: Comprehensive indexed product portfolio with strong financial ratings and better market positioning than AuguStar Life.
- Transamerica: Competitive indexed products with broader product range and more established market presence for diversified planning needs.
Specialized Alternatives for Specific Needs:
- Term Insurance Leaders: Companies like top-rated term life providers offer better value and service for temporary coverage needs without permanent insurance complexity.
- No-Exam Specialists: Simplified issue life insurance companies provide faster underwriting with better service quality for applicants avoiding medical exams.
- High-Risk Specialists: For applicants with health concerns, specialized carriers focusing on life insurance with medical conditions often provide better outcomes than mainstream alternatives.
Bottom Line
Multiple superior alternatives exist for most life insurance needs, making AuguStar Life appropriate primarily for specific indexed product requirements or situations where accelerated underwriting provides meaningful advantages over comprehensive service quality.
Frequently Asked Questions
Is AuguStar Life the same company as Ohio National?
Direct answer: Yes, AuguStar Life is the rebranded name for Ohio National Life Insurance Company following acquisition by Constellation Insurance Holdings in 2022.
The company maintains all existing Ohio National policy obligations and continues operations under new ownership and branding. Existing policyholders retain their coverage terms and benefits, though customer service operations have transitioned to new systems.
Are my existing Ohio National policies still valid with AuguStar Life?
Direct answer: Yes, all existing Ohio National policies remain valid and unchanged, with AuguStar Life maintaining full contractual obligations including death benefits and dividend payments.
The corporate transformation does not affect existing policy terms, premium requirements, or benefit entitlements. However, ongoing policy service may experience changes in customer service quality and agent relationships during the transition period.
How financially strong is AuguStar Life compared to other insurers?
Direct answer: AuguStar Life maintains A ratings from major agencies, indicating good financial strength, though below the highest AAA ratings of industry leaders like Northwestern Mutual.
The company benefits from strong institutional investor backing and adequate capitalization for policy obligations. However, top-rated insurance companies typically offer superior financial metrics and longer-term stability records.
Why does AuguStar Life have such high customer complaint rates?
Direct answer: The 10.82 NAIC complaint index reflects operational challenges during the corporate transformation, including system changes, staff reductions, and agent network disruption.
Major corporate transitions often create temporary service challenges as companies integrate new systems and processes. However, the elevated complaint levels suggest ongoing operational issues that potential customers should consider when evaluating alternatives.
What makes AuguStar Life’s indexed whole life insurance unique?
Direct answer: AuguStar Life offers one of the few indexed whole life products that combines traditional whole life guarantees with market index-linked interest crediting potential.
This hybrid approach provides more conservative growth potential than indexed universal life while maintaining whole life insurance guarantees. However, the product complexity requires sophisticated understanding and may not suit customers seeking straightforward permanent coverage.
Should I choose AuguStar Life over more established competitors?
Direct answer: Most consumers benefit from exploring established alternatives with superior customer service and market positioning before selecting AuguStar Life.
While AuguStar Life offers competitive financial strength and innovative products, operational challenges and service quality concerns suggest considering proven market leaders unless specific product features or underwriting advantages make AuguStar Life uniquely suitable for your needs.
Can I still work with my Ohio National agent for AuguStar Life policies?
Direct answer: Agent availability depends on whether your specific agent maintained relationships with AuguStar Life, as many agents departed during the corporate transition.
The transformation disrupted many long-standing agent relationships, affecting ongoing policy service and support. Contact your agent directly to confirm continued availability or request referrals to active AuguStar Life representatives in your area.
Final Recommendation: Should You Choose AuguStar Life Insurance?
AuguStar Life Insurance represents a company in transition with strong financial backing but significant operational challenges that affect the overall customer experience. While the institutional investor support provides financial stability and enables innovative product development, persistent customer service issues and market positioning challenges limit the company’s appeal for most life insurance buyers.
The transformation from respected mutual company Ohio National to investor-backed AuguStar Life creates both opportunities and risks. Strong capitalization enables competitive products and financial security, but operational disruption and elevated complaint rates suggest ongoing execution challenges that may persist for several years.
Consider AuguStar Life primarily if you have specific needs for indexed life insurance products, value accelerated underwriting capabilities, or work with advisors experienced in navigating complex product structures. For most families seeking reliable life insurance with excellent customer service, established market leaders typically provide superior overall value and peace of mind.
Bottom Line
AuguStar Life offers competitive financial strength and unique products but generally lags established competitors in customer service and operational excellence. Most consumers benefit from exploring proven alternatives before committing to this transitioning company.
