AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of "a-" (Excellent) to Omaha National Insurance Co. (ONIC) (Omaha, NE). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect ONIC's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The very strong balance sheet assessment reflects ONIC's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), which includes a $20 million capital contribution from the company's intermediate parent, Omaha National Group Inc. (ONG), in April 2022, following ONG's issuance of $20 million of senior unsecured debt. ONG also made a $35 million capital contribution to the company in December 2021, following ONG's August 2021 Series B convertible preferred stock issuance. While ONG is capitalized primarily with convertible preferred stock and debt, which results in high financial leverage per AM Best's guidelines, the balance sheet assessment recognizes the equity-like characteristics of ONG's convertible preferred stock, the parent's adequate liquidity position and ongoing capital support from several investors.