<PAGE> 1
File No. 33-62284
811-1979
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
Pre-Effective Amendment No. / /
Post-Effective Amendment No. 5 /X/
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No.
(Exact Name of Registrant)
OHIO NATIONAL VARIABLE ACCOUNT B
(Name of Depositor)
THE OHIO NATIONAL LIFE INSURANCE COMPANY
(Address of Depositor's Principal Executive Offices)
237 William Howard Taft Road
Cincinnati, Ohio 45219
(Depositor's Telephone Number)
(513) 861-3600
(Name and Address of Agent for Service)
Ronald L. Benedict, Second Vice President and Counsel
The Ohio National Life Insurance Company
P.O. Box 237
Cincinnati, Ohio 45201
Notice to:
W. Randolph Thompson, Esq.
Of Counsel
Jones & Blouch L.L.P.
Suite 405 West
1025 Thomas Jefferson Street, N.W.
Washington, D.C. 20007
Approximate Date of Proposed Public Offering: As soon after the effective date
of this amendment as is practicable.
Registrant has heretofore registered an indefinite amount of securities under
the Securities Act of 1933 pursuant to Rule 24f-2 and on February 23, 1996 filed
its Rule 24f-2 Notice for its most recent fiscal year.
It is proposed that this filing will become effective (check appropriate space):
___ immediately upon filing pursuant to paragraph (b)
___ on (date) pursuant to paragraph (b)
___ 60 days after filing pursuant to paragraph (a)(i)
_X_ on May 1, 1996, pursuant to paragraph (a)(i)
___ 75 days after filing pursuant to paragraph (a)(ii)
___ on (date) pursuant to paragraph (a)(ii) of Rule 485.
If appropriate, check the following box:
___ this post-effective amendment designates a new effective date for
a previously filed post-effective amendment.
<PAGE> 2
OHIO NATIONAL VARIABLE ACCOUNT B
<TABLE>
<CAPTION>
N-4 Item Caption in Prospectus
- -------- ---------------------
<S> <C>
1 Cover Page
2 Glossary of Special Terms
3 Not applicable
4 Not applicable
5 The Ohio National Companies
6 Deductions and Expenses
7 Description of Variable Annuity Contracts
8 Annuity Period
9 Death Benefit
10 Accumulation Period
11 Surrender and Partial Withdrawal
12 Federal Tax Status
13 Not applicable
14 Table of Contents
Caption in Statement of Additional Information
15 Cover Page
16 Table of Contents
17 Not applicable
18 Custodian
Independent Certified Public Accountants
19 See Prospectus (Distribution of Variable Annuity Contracts)
20 Underwriter
21 Calculation of Money Market Subaccount Yield
Total Return
22 See Prospectus (Annuity Period)
23 Financial Statements
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
Caption in Part C
-----------------
<S> <C>
24 Financial Statements and Exhibits
25 Directors and Officers of the Depositor
26 Persons Controlled by or Under Common Control with the Depositor or
Registrant
27 Number of Contractowners
28 Indemnification
29 Principal Underwriter
30 Location of Accounts and Records
31 Not applicable
32 Not applicable
</TABLE>
<PAGE> 4
PART A
PROSPECTUS
<PAGE> 5
PROSPECTUS
SINGLE PURCHASE PAYMENT
INDIVIDUAL NON-TAX QUALIFIED VARIABLE ANNUITY CONTRACTS
OHIO NATIONAL VARIABLE ACCOUNT B
THE OHIO NATIONAL LIFE INSURANCE COMPANY
237 WILLIAM HOWARD TAFT ROAD
CINCINNATI, OHIO 45219
TELEPHONE (513) 559-6452
This prospectus offers a multiple funded, single purchase payment, individual
variable annuity contract, designed for non-tax qualified retirement plans, that
provides for the accumulation of values and the payment of annuity benefits on a
variable and/or fixed basis. Unless specifically stated otherwise, only
provisions relating to the variable portion of the contracts are described in
this prospectus. The fixed portion ("Guaranteed Accumulation Account") is
briefly described in an appendix to the Statement of Additional Information.
Variable annuities are designed to provide lifetime annuity payments which will
vary with the investment results of the investment vehicle chosen. The
accumulation value of a contract will vary with the investment performance of
Ohio National Fund, Inc. (the "Fund"), prior to the annuity payout date, and the
amount of each annuity payment will vary with the Fund's investment performance
subsequent to the commencement of annuity payments. There can be no assurance
that the value of a contract during the years prior to the annuity payout date
or the aggregate amount of annuity payments received after such date will equal
or exceed the purchase payments made therefor.
The variable annuity contracts offered by this prospectus are flexible purchase
payment contracts designed to be sold on an individual basis for use in
retirement plans which do not qualify for special tax treatment under the
Internal Revenue Code.
The minimum purchase payment is $10,000. Generally, the maximum purchase payment
is $500,000.
The net purchase payment (after deduction of any applicable state premium tax)
is allocated to one or more subaccounts of Ohio National Variable Account B
("VAB") in such portion as the contract owner may choose. VAB is a separate
account established by The Ohio National Life Insurance Company ("Ohio National
Life"). The assets of VAB are invested in shares of the Fund, a mutual fund
having nine investment portfolios: Equity Portfolio, Money Market Portfolio,
Bond Portfolio, Omni Portfolio, International Portfolio, Capital Appreciation
Portfolio, Small Cap Portfolio, Global Contrarian Portfolio and Aggressive
Growth Portfolio (see the accompanying prospectus of the Fund).
All or part of the contract's accumulation value may be withdrawn before the
annuity payout date. Amounts withdrawn may be subject to federal income tax
penalties, and a contingent deferred sales charge may be assessed up to 6% of
the amount withdrawn.
The contracts offered hereby may be revoked by the purchaser without penalty
within 20 days of their delivery.
THIS PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE. IT SETS FORTH THE
INFORMATION ABOUT VAB AND THE VARIABLE ANNUITY CONTRACTS OFFERED BY THIS
PROSPECTUS THAT YOU SHOULD KNOW BEFORE INVESTING. ADDITIONAL INFORMATION ABOUT
VAB HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN A STATEMENT OF
ADDITIONAL INFORMATION DATED MAY 1, 1996. THE STATEMENT OF ADDITIONAL
INFORMATION IS INCORPORATED HEREIN BY REFERENCE AND IS AVAILABLE UPON REQUEST
AND WITHOUT CHARGE BY WRITING OR CALLING OHIO NATIONAL LIFE AT THE ABOVE
ADDRESS. THE TABLE OF CONTENTS FOR THE STATEMENT OF ADDITIONAL INFORMATION IS ON
PAGE 2.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THIS PROSPECTUS SHOULD BE ACCOMPANIED BY THE CURRENT PROSPECTUS OF OHIO NATIONAL
FUND, INC.
MAY 1, 1996
<PAGE> 6
TABLE OF CONTENTS
<TABLE>
<S> <C>
Glossary of Special Terms................................ 2
Fee Table................................................ 3
Accumulation Unit Values................................. 4
Financial Statements................................. 5
The Ohio National Companies.............................. 5
Ohio National Life................................... 5
Ohio National Variable Account B..................... 5
Ohio National Fund, Inc.............................. 5
Distribution of Variable Annuity Contracts............... 6
Deductions and Expenses.................................. 7
Contingent Deferred Sales Charge..................... 7
Deduction For Administrative Expenses................ 7
Deduction For Risk Undertakings...................... 7
Transfer Fee......................................... 7
Deduction For State Premium Tax...................... 8
Fund Expenses........................................ 8
Description of Variable Annuity Contracts................ 8
20-Day Free Look..................................... 8
Accumulation Period.................................. 8
Annuity Period....................................... 11
Other Contract Provisions............................ 13
Performance Data..................................... 13
Federal Tax Status....................................... 13
</TABLE>
STATEMENT OF ADDITIONALINFORMATION
Custodian
Independent Certified Public Accountants
Underwriter
Calculation of Money Market Subaccount Yield
Total Return
Transfer Limitations
Financial Statements for VAB and Ohio National Life
Appendix: Guaranteed Accumulation Account
GLOSSARY OF SPECIAL TERMS
ACCUMULATION PERIOD - The period prior to the annuity payout date and during the
lifetime of the annuitant.
ACCUMULATION UNIT - A unit of measure used to determine the value of contracts
during the accumulation period.
ACCUMULATION VALUE - The cash value of an annuity contract before the annuity
payout date.
ANNUITANT - Any natural person who is to receive or is receiving annuity
payments and upon whose continuation of life annuity payments with life
contingencies depend.
ANNUITY PAYOUT DATE - THE date on which annuity payments are to begin.
ANNUITY PAYMENTS - Periodic payments made to an annuitant pursuant to an annuity
contract.
ANNUITY UNIT - A unit of measure used to determine the second and subsequent
variable annuity payments and reflecting the investment performance of the Fund.
FUND SHARES - Shares of Ohio National Fund, Inc., or shares of another
registered open-end investment company substituted therefor.
OWNER - During the lifetime of the designated annuitant and prior to the
specified annuity payout date, the owner is the person in whose name the
contract is registered. On and after the annuity payout date the annuitant
becomes the owner. After the death of the annuitant, the beneficiary becomes the
owner.
PURCHASE PAYMENT - The amount of payment made by, or on behalf of, the owner
under the annuity contract.
SETTLEMENT - The application of the accumulation value of an annuity contract
under the settlement provisions contained therein.
SUBACCOUNT - The Equity subaccount, Money Market subaccount, Bond subaccount,
Omni subaccount, International subaccount, Capital Appreciation subaccount,
Small Cap subaccount, Global Contrarian subaccount, Aggressive Growth
subaccount, or such other subaccounts as may be established under VAB.
VALUATION PERIOD - The period of time from one determination of accumulation
unit and annuity unit values to their next determination. Such determination is
made at the same time that the net asset value of Fund Shares is determined. See
page 17 of the accompanying Fund prospectus.
1940 ACT - The Investment Company Act of 1940, as amended, or any similar
successor federal legislation.
2
<PAGE> 7
FEE TABLE
<TABLE>
<CAPTION>
CONTRACTOWNER TRANSACTION EXPENSES CONTRACT YEAR
Deferred Sales Loan (as a percentage OF SURRENDER PERCENTAGE
of amount withdrawn or surrendered OR WITHDRAWAL CHARGED
------------- -------
<S> <C> <C>
1 6%
2 5%
3 4%
4 3%
5 2%
6 1%
7 and later 0%
Exchange (transfer) Fee $3 (currently no charge for the first 4 transfers per year)
-----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MONEY INTER CAPITAL
EQUITY MARKET BOND OMNI NATIONAL APPRECIATION
------ ------ ---- ---- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
VAB ANNUAL EXPENSES (as a percentage
of average account value)
Mortality and Expense Risk Fees 0.65% 0.65% 0.65% 0.65% 0.65% 0.65%
Account Fees and Expenses 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
---- ---- ---- ---- ---- ----
Total VAB Annual Expenses 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
FUND ANNUAL EXPENSES (as a percentage
of the Fund's average net assets)
Management Fees 0.54% 0.25%* 0.60% 0.57% 0.90% 0.80%
Other Expenses 0.19% 0.19% 0.15% 0.18% 0.22% 0.16%
---- ---- ---- ---- ---- ----
Total Fund Annual Expenses 0.73% 0.44%* 0.75% 0.75% 1.12% 0.96%
EXAMPLE
If you surrendered your 1 Year $ 79 $ 76* $ 79 $ 79 $ 82 $ 81
contract at the end of the
applicable time period, you 3 Years 91 83* 92 92 103 98
would pay the following
aggregate expenses on a $1,000 5 Years 110 95* 111 111 130 122
investment, assuming 5%
annual return: 10 Year 193 161* 195 195 235 218
EXAMPLE
If you do not surrender your 1 Year 17 14* 17 17 21 19
contract or you annuitize at
the end of the applicable 3 Years 51 42* 52 52 63 58
time period, you would
pay the following 5 Years 89 73* 90 90 109 101
aggregate expenses
on the same investment: 10 Years 193 161* 195 195 235 218
<CAPTION>
SMALL GLOBAL AGGRESSIVE
CAP CONTRARIAN GROWTH
--- ---------- ------
<S> <C> <C> <C>
VAB ANNUAL EXPENSES (as a percentage
of average account value)
Mortality and Expense Risk Fees 0.65% 0.65% 0.65%
Account Fees and Expenses 0.25% 0.25% 0.25%
---- ---- ----
Total VAB Annual Expenses 0.90% 0.90% 0.90%
FUND ANNUAL EXPENSES (as a percentage
of the Fund's average net assets)
Management Fees 0.80% 0.90% 0.80%
Other Expenses 0.16% 0.68% 0.22%
---- ---- ----
Total Fund Annual Expenses 0.96% 1.58% 1.02%
EXAMPLE
If you surrendered your 1 Year $ 81 $ 87 $ 81
contract at the end of the
applicable time period, you 3 Years 98 116 100
would pay the following
aggregate expenses on a $1,000 5 Years 122 152 125
investment, assuming 5%
annual return: 10 Year 218 282 224
EXAMPLE
If you do not surrender your 1 Year 19 25 20
contract or you annuitize at
the end of the applicable 3 Years 58 77 60
time period, you would
pay the following 5 Years 101 132 104
aggregate expenses
on the same investment: 10 Years 218 282 224
</TABLE>
The purpose of the above table is to help you to understand the costs and
expenses that a variable annuity contractowner will bear directly or indirectly.
THE EXAMPLE INCLUDED IN THE ABOVE TABLE SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSE, AND ACTUAL EXPENSES MAY BE GREATER OR
LESS THAN THOSE SHOWN. Note that the expense amounts shown in the example are
aggregate amounts for the total number of years indicated. Neither the table nor
the example reflect any premium taxes that may be applicable to a contract,
which currently range from 0% to 3.5%. The above table and example reflect only
the charges for contracts currently offered by this prospectus and not other
contracts that may be offered by Ohio National Life. For further details, see
Deductions and Expenses, page 7.
*For the Money Market Porfolio, management fees in excess of 0.25% are presently
being waived by the Fund's investment adviser. Without the waiver, the Money
Market Portfolio's Management Fee would be 0.30%, its Total Fund Annual Expenses
would be 0.49%, and its expenses would total $76 for a $1,000 contract
surrendered at the end of 1 year, $84 if surrendered at the end of 3 years, $98
if surrendered at the end of 5 years or $167 if surrendered at the end of 10
years. For a $1,000 contract annuitized or not surrendered, the expenses without
the waiver would be $14 for 1 year, $44 for 3 years, $76 for 5 years or $167 for
10 years.
3
<PAGE> 8
ACCUMULATION UNIT VALUES
<TABLE>
EQUITY SUBACCOUNT
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ----------- ---------------
<S> <C> <C> <C>
1993* $10.000000 $10.239365 20,283
1994 10.239365 10.173015 115,993
1995 10.173015 12.824740 239,825
---- ---------- ---------- -------
</TABLE>
<TABLE>
MONEY MARKET SUBACCOUNT**
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ----------- --------------
<S> <C> <C> <C>
1993* $10.000000 $10.045964 1,204
1994 10.045964 10.354108 56,892
1995 10.354108 10.837896 34,285
---- ---------- ---------- ------
</TABLE>
<TABLE>
BOND SUBACCOUNT
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ----------- --------------
<S> <C> <C> <C>
1993* $10.000000 $ 9.910842 19,364
1994 9.910842 9.445623 75,521
1995 9.445623 11.130129 97,129
---- ---------- ---------- ------
</TABLE>
<TABLE>
OMNI SUBACCOUNT
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ----------- --------------
<S> <C> <C> <C>
1993* $10.000000 $10.143037 44,348
1994 10.143037 9.999661 109,853
1995 9.999661 12.165280 194,243
---- ---------- ---------- -------
</TABLE>
<TABLE>
INTERNATIONAL SUBACCOUNT
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ----------- --------------
<S> <C> <C> <C>
1993* $10.000000 $10.834626 15,210
1994 10.834626 11.604279 234,799
1995 11.604279 12.892796 330,279
---- ---------- ---------- -------
</TABLE>
<TABLE>
CAPITAL APPRECIATION SUBACCOUNT
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ----------- --------------
<S> <C> <C> <C>
1994* $10.000000 $10.390128 34,382
1995 10.390128 12.626458 136,612
---- ---------- ---------- -------
</TABLE>
<TABLE>
SMALL CAP SUBACCOUNT
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ----------- --------------
<S> <C> <C> <C>
1994* $10.000000 $12.053440 39,627
1995 12.053440 15.889068 123,612
---- ---------- ---------- -------
</TABLE>
<TABLE>
GLOBAL CONTRARIAN SUBACCOUNT
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ----------- --------------
<S> <C> <C> <C>
1995* $10.000000 $10.816003 21,621
</TABLE>
4
<PAGE> 9
<TABLE>
AGGRESSIVE GROWTH SUBACCOUNT
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ----------- --------------
<S> <C> <C> <C>
1995* $10.000000 $12.610012 39,115
</TABLE>
* Series of variable annuity contracts commenced on October 7, 1993. Capital
Appreciation and Small Cap subaccounts commenced on May 1, 1994. Global
Contrarian and Aggressive Growth subaccounts commenced on March 31, 1995.
** The current annualized yield of the Money Market subaccount for the
seven days ended December 31, 1995, was 4.53%.
FINANCIAL STATEMENTS
The complete financial statements of VAB and Ohio National Life, and the
Independent Auditors' Reports thereon, may be found in the Statement of
Additional Information.
THE OHIO NATIONAL COMPANIES
OHIO NATIONAL LIFE
Ohio National Life was organized under the laws of Ohio in 1909 as a stock life
insurance company and became a mutual life insurance company in 1959. It writes
life, accident and health insurance and annuities in 46 states and the District
of Columbia. Currently it has assets in excess of $5.5 billion and equity in
excess of $500 million. Its home office is located at 237 William Howard Taft
Road, Cincinnati, Ohio.
OHIO NATIONAL VARIABLE ACCOUNT B
VAB was established in 1969 by Ohio National Life as a separate account under
Ohio law for the purpose of funding variable annuity contracts. Purchase
payments for the variable annuity contracts are allocated to one or more
subaccounts of VAB. Income, gains and losses, whether or not realized, from
assets allocated to VAB are, as provided in the contracts, credited to or
charged against VAB without regard to other income, gains or losses of Ohio
National Life. The assets maintained in VAB will not be charged with any
liabilities arising out of any other business conducted by Ohio National Life.
Nevertheless, all obligations arising under the contracts, including the
commitment to make annuity payments, are general corporate obligations of Ohio
National Life. Accordingly, all of Ohio National Life's assets are available to
meet its obligations under the contracts. VAB is registered as a unit investment
trust under the 1940 Act.
OHIO NATIONAL FUND, INC.
The assets of each subaccount of VAB are invested at net asset value (without an
initial sales charge) in shares of a corresponding portfolio of the Fund: the
Equity Portfolio, Money Market Portfolio, Bond Portfolio, Omni Portfolio (a
flexible portfolio fund), International Portfolio, Capital Appreciation
Portfolio, Small Cap Portfolio, Global Contrarian Portfolio or Aggressive Growth
Portfolio. The Fund is a diversified, open-end, management investment company
registered under the 1940 Act. The value of the Fund's investments fluctuates
daily and is subject to the risk of changing economic conditions as well as the
risk inherent in the ability of management to anticipate changes necessary in
such investments to meet changes in economic conditions. The Fund receives
investment advice, for a fee, from its investment adviser, Ohio National
Investments, Inc., and from Societe Generale Asset Management Corp. (sub-adviser
to the International and Global Contrarian Portfolios), T. Rowe Price
Associates, Inc. (sub-adviser to the Capital Appreciation Portfolio), Founders
Asset Management, Inc. (sub-adviser to the Small Cap Portfolio), and Strong
Capital Management, Inc. (sub-adviser to the Aggressive Growth Portfolio). For
additional information concerning the Fund, including the investment objectives
of each of its portfolios, see the attached Fund prospectus. Read the Fund
prospectus carefully before investing.
5
<PAGE> 10
In addition to being offered to VAB, Fund shares are currently offered to other
separate accounts of Ohio National Life in connection with variable annuity
contracts and a separate account of Ohio National Life Assurance Corporation in
connection with variable life insurance contracts. In the future, Fund shares
may be offered to other insurance company separate accounts. It is conceivable
that in the future it may become disadvantageous for both variable life and
variable annuity separate accounts to invest in the Fund. Although neither Ohio
National Life nor the Fund currently foresees any such disadvantage, the Board
of Directors of the Fund will monitor events in order to identify any material
conflict between variable life and variable annuity contractowners and to
determine what action, if any, should be taken in response thereto, including
the possible withdrawal of VAB's participation in the Fund. Material conflicts
could result from such things as (1) changes in state insurance law; (2) changes
in federal income tax law; (3) changes in the investment management of any
portfolio of the Fund; or (4) differences between voting instructions given by
variable life and variable annuity contractowners.
VOTING RIGHTS
Ohio National Life shall vote Fund shares held in VAB at meetings of Fund
shareholders in accordance with voting instructions received from contract
owners. The number of Fund shares for which an owner is entitled to give
instructions will be determined by Ohio National Life in the manner described
below, not more than 90 days prior to the meeting of the Fund. Fund proxy
material will be distributed to each owner together with appropriate forms for
giving voting instructions. Fund shares held in VAB, for which no timely
instructions are received, will be voted by Ohio National Life in proportion to
the instructions which are received with respect to all contracts participating
in VAB.
During the accumulation period, the number of Fund shares for which instructions
may be given to Ohio National Life is determined by dividing the variable
accumulation value of a subaccount of the contract by the net asset value of a
share of the corresponding Fund portfolio as of the same date. During the
annuity payment period, the number of Fund portfolio shares for which such
instructions may be given is determined by dividing the actuarial liability for
variable annuities in the course of payment by the net asset value of a Fund
portfolio share as of the same date. Generally, the number of votes tends to
decrease as annuity payments progress.
DISTRIBUTION OF VARIABLE ANNUITY CONTRACTS
The variable annuity contracts are sold by Ohio National Life insurance agents
who are also registered representatives (a) of The O. N. Equity Sales Company
("ONESCO"), a wholly-owned subsidiary of Ohio National Life, registered under
the Securities Exchange Act of 1934, and a member of the National Association of
Securities Dealers, Inc. or (b) of other broker-dealers that have entered into
distribution agreements with the principal underwriter of the contracts. At the
date of this prospectus ONESCO was the principal underwriter of the contracts.
However, pending receipt of necessary regulatory approvals, Ohio National
Equities, Inc., a new wholly-owned subsidiary of Ohio National Life, will become
the principal underwriter. As compensation for their sales efforts, ONESCO and
the other broker-dealers will receive a fee from Ohio National Life equal to 6%
of purchase payments. ONESCO and the other broker-dealers will remunerate their
registered representatives from their own funds. Purchase payments on which no
compensation is paid to registered representatives will not be included in
amounts on which the 6% sales compensation will be paid to ONESCO and the other
broker-dealers. To the extent that the amount of the contingent deferred sales
charge received by Ohio National Life is not sufficient to recover the fee paid
to ONESCO and the other broker-dealers, any deficiency will be made up from Ohio
National Life's general account assets which include, among other things, any
profit from the mortality and expense risk charges.
6
<PAGE> 11
DEDUCTIONS AND EXPENSES
CONTINGENT DEFERRED SALES CHARGE
No deduction for sales expense is made from purchase payments. A contingent
deferred sales charge may be assessed by Ohio National Life when a contract is
surrendered or a partial withdrawal of accumulation value is made before the
annuity payout date to defray expenses relating to the sale of the contract,
including compensation to sales personnel, cost of sales literature and
prospectuses, and other expenses related to sales activity. Such charge equals a
percentage of the contract value withdrawn. This percentage will vary with the
contract year in which the surrender or withdrawal occurs as follows:
<TABLE>
<CAPTION>
CONTRACT YEAR PERCENTAGE
------------- ----------
<S> <C>
1 6%
2 5%
3 4%
4 3%
5 2%
6 1%
7 and later 0%
</TABLE>
Once each contract year, a partial withdrawal of not more than 10% of the
accumulation value (as of the first day of the contract year) may be made
without the imposition of the contingent deferred sales charge.
DEDUCTION FOR ADMINISTRATIVE EXPENSES
A deduction is made at the end of each valuation period equal to 0.25% on an
annual basis of the contract value for administrative expenses. This deduction
is not designed to produce a profit but to reimburse Ohio National Life for
expenses incurred for accounting, auditing, legal, contract owner services,
reports to regulatory authorities and contract owners, contract issue, etc.
Because the administrative expense deduction is a percentage of assets, it is
possible that larger contracts may bear a portion of the cost of administering
smaller contracts.
DEDUCTION FOR RISK UNDERTAKINGS
Prior to the annuity payout date, Ohio National Life guarantees that the
accumulation value of all contracts will not be affected by any excess of sales
and administrative expenses over the deductions provided therefor. Ohio National
Life also guarantees to pay a death benefit in the event of the annuitant's
death prior to the annuity payout date (see Death Benefit, page 10). After the
annuity payout date, Ohio National Life guarantees that variable annuity
payments will not be affected by adverse mortality experience or expenses.
For assuming these risks, Ohio National Life, in determining the accumulation
unit values and the annuity unit values for each subaccount, makes a deduction
from the applicable investment results equal to 0.65% of the contract value on
an annual basis. Such deduction may be decreased by Ohio National Life at any
time and may be increased not more frequently than annually to not more than
1.55% on an annual basis. Although Ohio National Life views the risk charge as
an indivisible whole, of the amount currently being deducted, it has estimated
that a reasonable allocation would be 0.25% for mortality risk, and 0.4% for
expense risk. Although Ohio National Life hopes to realize a profit from this
charge, if the deduction is insufficient to cover the actual risk involved, the
loss will fall on Ohio National Life; conversely, if the deduction proves more
than sufficient, the excess will be a gain to Ohio National Life.
TRANSFER FEE
A transfer fee of $3 (which may be increased to $10) is made for transferring
contract values from one or more subaccounts to one or more other subaccounts.
The fee is charged against the subaccount(s) from which the transfer is
effected. Currently, no fee is charged for the first four transfers each year.
7
<PAGE> 12
DEDUCTION FOR STATE PREMIUM TAX
Most states do not presently charge a premium tax for these contracts. Where a
tax applies, the rates are presently 1.0% in Puerto Rico, West Virginia and
Wyoming, 1.25% in South Dakota, 2.0% in Kansas, Kentucky and Maine, 2.25% in the
District of Columbia, 2.35% in California and 3.5% in Nevada. Normally, any such
applicable taxes will not be deducted until annuity payments begin. However, in
Kansas, South Dakota and Wyoming, they are presently being deducted from the
purchase payment.
FUND EXPENSES
There are deductions from, and expenses paid out of, the assets of the Fund.
These are described in the attached Fund prospectus.
DESCRIPTION OF VARIABLE ANNUITY CONTRACTS
20-DAY FREE LOOK
The contract owner may revoke the contract at any time until the end of 20 days
after receipt of the contract and receive a refund of the entire purchase price.
To revoke, the owner must return the contract to Ohio National Life within the
20 day period. In those states where required by state law, the value of the
contract as of the date of cancellation will be returned in lieu of the entire
purchase price in case of revocation during the 20 day free look period.
ACCUMULATION PERIOD
PURCHASE PAYMENT PROVISIONS
The contracts provide for a single minimum purchase payment of $10,000 and a
maximum payment of $500,000. A larger payment, or more than one payment, may be
made with Ohio National Life's consent.
ACCUMULATION UNITS
Prior to the annuity payout date, the contract value is measured by accumulation
units. The purchase payment results in the crediting of accumulation units to
the contract (see Crediting Accumulation Units, below). The number of
accumulation units so credited remains constant but the dollar value of
accumulation units will vary depending upon the investment results of the
particular subaccount to which contract values are allocated.
CREDITING ACCUMULATION UNITS
Completed application forms, together with a check for the purchase payment, are
forwarded to the home office of Ohio National Life for acceptance. Upon
acceptance, a contract is issued to the contract owner, and the purchase payment
is then credited to the contract in the form of accumulation units. The purchase
payment is credited not later than two business days after receipt if the
application and all information necessary for processing the purchase payment
are complete. If an application is not accepted within five business days, the
purchase payment will be returned immediately to the applicant unless the
applicant specifically consents to having Ohio National Life retain the purchase
payment until the application is completed. After that, the purchase payment
will be credited within two business days.
ALLOCATION OF THE PURCHASE PAYMENT
In the contract application, you may direct the allocation of your purchase
payment among the subaccounts of VAB and the general account of Ohio National
Life. The amount allocated to any subaccount or the general account must equal a
whole percentage.
8
<PAGE> 13
ACCUMULATION UNIT VALUE AND ACCUMULATION VALUE
The accumulation unit value of each subaccount of VAB was set at $10 when the
first payment was allocated to each such subaccount. The accumulation unit value
for any subsequent valuation period is determined by multiplying the
accumulation unit value for the immediately preceding valuation period by the
net investment factor (described below) for such subsequent valuation period.
The accumulation value is determined by multiplying the total number of
accumulation units (for each subaccount) credited to the contract by the
accumulation unit value (for such subaccount) for the valuation period for which
the accumulation value is being determined.
NET INVESTMENT FACTOR
The net investment factor is a quantitative measure of the investment results of
each subaccount of VAB. The net investment factor for each subaccount for any
valuation period is determined by dividing (a) by (b), then subtracting (c) from
the result, where:
(a) is -
(1) the net asset value of a share in the appropriate portfolio of the Fund
determined as of the end of a valuation period, plus
(2) The per share amount of any dividends or other distributions declared for
that portfolio by the Fund if the "ex-dividend" date occurs during the
valuation period, plus or minus
(3) per share charge or credit for any taxes paid or reserved for which is
determined by Ohio National Life to result from the maintenance or
operation of that subaccount of VAB; (No federal income taxes are
applicable under present law.)
(b) is the net asset value of a share in the appropriate portfolio of the
Fund determined as the end of the preceding valuation period; and
(c) is the deduction for administrative and sales expenses and risk
undertakings. (See Deduction for Administrative Expenses, page 7, and
Deduction for Risk Undertakings, page 7.)
SURRENDER AND PARTIAL WITHDRAWAL
Prior to the annuity payout date, the owner of a contract may surrender (totally
withdraw the value of) his or her contract for its accumulation value or elect a
partial (at least $500) withdrawal therefrom. These transactions may be subject
to the contingent deferred sales charge described on page 7. Such charge is a
percentage of the total amount withdrawn. For example, if a partial withdrawal
of $500 is requested during the first contract year, Ohio National Life would
pay you $500, but the total amount deducted from the accumulation value would be
$531.91 (i.e., $531.91 x 6% $31.91). Unless otherwise specified, the withdrawal
will be made pro-rata from the values of each subaccount. The amount available
for withdrawal is the sum of the subaccount values less any contingent deferred
sales charge, provided, however, that no partial withdrawal that would cause the
contract value to fall below $5,000 will be allowed. Payment by Ohio National
Life shall be made within seven days from the date of receipt of the request for
such payment except as it may be deferred under the circumstances described
below. (For tax consequences of a surrender or withdrawal, see Federal Tax
Status, page 13.)
Occasionally Ohio National Life may receive a request for a surrender or partial
withdrawal before the check for your purchase payment has cleared the banking
system. Ohio National Life may delay the surrender or partial withdrawal until
your check has cleared. Ohio National Life requires the return of the contract
in the case of a complete surrender.
The right to withdraw may be suspended or the date of payment postponed (1) for
any period during which the New York Stock Exchange is closed (other than
customary weekend and holiday closings) or during which trading on the Exchange,
as determined by the Securities and Exchange Commission, is restricted; (2) for
any period during which an emergency, as determined by the Commission, exists as
a result of which disposal of securities held in the Fund is not reasonably
practical, or it is not reasonably practical to determine the value of the
Fund's net assets; or (3) or such other periods as the Commission may by order
permit for the protection of security holders.
9
<PAGE> 14
TRANSFERS AMONG SUBACCOUNTS
Contract values may be transferred from one subaccount to another upon the
request of the owner. Transfers may be made at any time during the accumulation
period. The amount of any such transfer must be at least $300 (or the entire
value of the contract's interest in a subaccount, if less). Ohio National Life
reserves the right to limit the number, frequency, method or amount of
transfers. Transfers from any portfolio of the Fund on any one day may be
limited to 1% of the previous day's total net assets of that portfolio if Ohio
National Life or the Fund, in its or their discretion, believes that the
portfolio might otherwise be damaged. After the annuity payout date, transfers
among subaccounts can only be made once each calendar quarter. Such transfers
may then be made without a transfer fee. (See Transfer Fee, page 7, and
Transfers After Annuity Payout Date, page 12.)
SCHEDULED TRANSFERS (DOLLAR COST AVERAGING)
Ohio National Life administers a scheduled transfer ("DCA") program enabling you
to preauthorize automatic monthly or quarterly transfers of a specified dollar
amount from any variable subaccount(s) to any other subaccount(s), including the
Guaranteed Accumulation Account. Each DCA transfer must be at least $500 and at
least 12 DCA transfers must be scheduled. No transfer fee is charged for DCA
transfers. Ohio National Life may discontinue the DCA program at any time. You
may also discontinue further DCA transfers by giving Ohio National Life written
notice at least 7 business days before the next scheduled transfer.
DCA generally has the effect of reducing the risk of purchasing at the top, and
selling at the bottom, of market cycles. DCA Transfers from a fund with a
stabilized net asset value, such as the Money Market subaccount, will generally
reduce the average total cost of indirectly purchasing Fund shares because
greater numbers of shares will be purchased when the share prices are lower than
when prices are higher. However, DCA does not assure you of a profit, nor does
it protect against losses in a declining market. Moreover, for transfers from a
subaccount not having a stabilized net asset value, DCA will have the effect of
reducing the average price of the shares being redeemed. DCA might also be used
to systematically transfer accumulation values from variable subaccounts to the
General Accumulation Account, in anticipation of retirement, in order to reduce
the risk of making a single transfer during a low market.
TELEPHONE TRANSFERS
If the contract owner first submits a pre-authorization form to Ohio National
Life, transfers may be made by telephoning Ohio National Life at 1-800-635-3225.
Ohio National Life will honor pre-authorized telephone transfer instructions
from anyone who is able to provide the personal identifying information
requested, but reserves the right to refuse to honor any such request if that
seems prudent. Ohio National Life will use reasonable procedures to confirm that
telephone instructions are genuine. (Otherwise, Ohio National Life may be liable
for any losses due to unauthorized or fraudulent instructions.) A written
confirmation will be sent following each telephone transfer.
DEATH BENEFIT
In the event of the death of the annuitant prior to the annuity payout date, the
contract provides a death benefit to be paid to a designated beneficiary. The
amount of the death benefit will be determined as of the end of the valuation
period in which written notice of death of the annuitant is received by Ohio
National Life. It will be paid in one sum into an interest-bearing checking
account established in the beneficiary's name with Bank One, Springfield,
Illinois, unless the owner or beneficiary elects settlement under one or more of
the settlement options provided in the contract. The checking account will bear
interest based upon then current money market rates. The beneficiary will then
be able to write checks against such account at any time and in any amount up to
the total in the account. Such checks must be for a minimum of $250. The amount
of death benefit is the accumulation value of the contract or, if greater, the
difference between your purchase payment and any partial withdrawals.
10
<PAGE> 15
OHIO NATIONAL LIFE EMPLOYEE DISCOUNT
Ohio National Life and its affiliated companies offer a credit on the purchase
of contracts by any of their employees, directors or retirees, or their spouse
or the surviving spouse of a deceased retiree, covering any of the foregoing or
any of their minor children, or any of their children ages 18 to 21 who is
either (i) living in the purchaser's household or (ii) a full-time college
student being supported by the purchaser or any of the purchaser's minor
grandchildren under the Uniform Gifts to Minors Act. This credit is treated as
additional income under the contract. The amount of the credit equals 3.5% of
the single purchase payment. Ohio National Life credits the Guaranteed
Accumulation Account of the employee's contract in this amount at the time the
purchase payment is made by the employee.
ANNUITY PERIOD
ANNUITY PAYOUT DATE
Annuity payments under a contract will begin on the annuity payout date. This
date is selected by the owner at the time the contract is issued and must be at
least 30 days after the contract date. It may be changed from time to time by
the owner so long as the annuity payout date selected is the first day of any
month at least 30 days after the date of such change. The contract restricts the
annuity payout date to not later than the first of the month following the
annuitant's 75th birthday; however, this restriction may be waived by mutual
agreement between Ohio National Life and the owner.
The contracts include Ohio National Life's assurance that annuity payments will
be paid for the lifetime of the annuitant in accordance with the annuity rates
contained in the contract, regardless of actual mortality experience.
Once annuity payments commence, the contract cannot be surrendered for cash
except that, upon the death of the annuitant, the beneficiary shall be entitled
to surrender the contract for the commuted value of any remaining period-certain
payments.
ANNUITY OPTIONS
The owner may elect one or more of the following annuity options, and may change
such election anytime before the annuity payout date.
Option 1(a): Life Annuity with installment payments for the
lifetime of the annuitant (under this option it is
possible for the annuitant to receive only one payment;
this could happen if the annuitant should die before
receiving the second payment; there is no residual value
of the contract after annuitant's death).
Option 1(b): Life Annuity with installment payments guaranteed
for five years and continuing thereafter during the
remaining lifetime of the annuitant.
Option 1(c): Life Annuity with installment payments guaranteed
for ten years and continuing thereafter during the
remaining lifetime of the annuitant.
Option 1(d): Installment Refund Life Annuity with payments
guaranteed for a period certain and continuing thereafter
during the remaining lifetime of the annuitant. The
number of period-certain payments is equal to the amount
applied under this option divided by the amount of the
first payment.
Option 2(a): Joint & Survivor Life Annuity with installment
payments during the lifetime of an annuitant and
continuing during the lifetime of a designated contingent
annuitant (under this option it is possible for the
annuitant and contingent annuitant to receive only one
payment; this could happen if both were to die before
receiving the second payment).
Option 2(b): Joint & Survivor Life Annuity with installment
payments guaranteed for ten years and continuing
thereafter during the remaining lifetime of the annuitant
or a designated contingent annuitant.
11
<PAGE> 16
Unless the contract owner directs otherwise, as of the annuity payout date the
contract values will be applied to provide annuity payments pro-rata from each
subaccount in the same proportion as the contract values immediately prior to
the annuity payout date.
If no election is in effect on the annuity payout date, the accumulation value
of the contract will be applied under Option 1(c) with the beneficiary as payee
for an remaining period-certain installments payable after the death of the
annuitant. Options 2(a) and 2(b) are available only with the consent of Ohio
National Life if the contingent annuitant is not related to the annuitant.
Other settlement options are available as agreed to by Ohio National Life.
DETERMINATION OF AMOUNT OF THE FIRST VARIABLE ANNUITY PAYMENT
The first variable annuity payment is determined by applying the accumulation
value for each subaccount in accordance with the settlement option tables
contained in the contract. The rates contained in those tables depend upon the
annuitant's (and any contingent annuitant's) age and sex and the option
selected. The accumulation value to be applied is determined at the end of a
valuation period (selected by Ohio National Life and uniformly applied) not more
than 10 valuation periods before the annuity payout date.
If the amount to be applied under an option is less than $5,000, the option
shall not be available and accumulation value shall be paid in a single sum to
the annuitant. If the first periodic payment under any option would be less than
$25, Ohio National Life reserves the right to change the frequency of payments
so that the first such payment is at least $25.
ANNUITY UNIT AND THE DETERMINATION OF SUBSEQUENT PAYMENTS
Subsequent variable annuity payments will vary to reflect the investment
performance of each applicable subaccount. The amount of each subsequent payment
is determined by annuity units. The number of annuity units for each subaccount
is determined by dividing the dollar amount of the first annuity payment from
each subaccount by the value of the subaccount annuity unit for the same
valuation period used to determine the accumulation value of the contract
applied to provide annuity payments. This number of annuity units remains fixed
during the annuity payment period unless changed as provided below.
The annuity unit value for each subaccount was set at $10 for the valuation
period as of which the first variable annuity payable from each subaccount of
VAB was calculated. The annuity unit value for each subsequent valuation period
equals the annuity unit value for the immediately preceding valuation period
multiplied by the net investment factor (see page 9) for such subsequent
valuation period and by a factor (0.9998925 for a one-day valuation period) to
neutralize the assumed interest rate discussed below.
The dollar amount of each subsequent variable annuity payment is equal to the
fixed number of annuity units for each subaccount multiplied by the value of the
annuity unit for the valuation period.
The annuity rate tables contained in the contracts are based on the Progressive
Annuity Mortality Table with compound interest at the effective rate of 4% per
year. A higher interest assumption would mean a higher initial annuity payment
but a more slowly rising series of subsequent annuity payments if annuity unit
values were increasing (or a more rapidly falling series of subsequent annuity
payments if annuity unit values were decreasing). A lower interest assumption
would have the opposite effect. If the actual net investment rate were equal to
the assumed interest rate, annuity payments would be level.
TRANSFERS AFTER ANNUITY PAYOUT DATE
After annuity payments have been made for at least 12 months, the annuitant can,
once each 12 months, change the subaccount(s) on which variable annuity payments
are based. On at least 30 days written notice to Ohio National Life at its home
office, that portion of the periodic variable annuity payment directed by the
annuitant will be changed to reflect the investment results of a different
subaccount. The annuity payment immediately after such change will be the amount
that would have been paid without such change. Subsequent payments will reflect
the new mix of subaccount allocation.
12
<PAGE> 17
OTHER CONTRACT PROVISIONS
ASSIGNMENT
Any amount payable in settlement of the contracts may not be commuted,
anticipated, assigned or otherwise encumbered. To the extent permitted by law,
no such amounts shall be subject in any way to any legal process to subject them
to payment of any claims against an annuitant before the annuity payout date. A
contract may be collaterally assigned and the ownership may be transferred by
the owner before the annuity payout.
PERIODIC REPORTS
Ohio National Life will furnish each owner, at least annually after the first
contract year, and prior to the annuity payout date, a statement showing the
number of accumulation units credited to the contract by subaccount and the
accumulation unit value of each such unit as of a date not more than four months
from the date of furnishing of the report. In addition, as long as the contract
remains in effect, Ohio National Life will forward such periodic reports as may
be furnished it by the Fund.
SUBSTITUTION FOR FUND SHARES
If investment in the Fund is no longer possible or in Ohio National Life's
judgment becomes inappropriate to the purposes of the contract, Ohio National
Life may substitute another mutual fund. Substitution may be made with respect
to both existing investments and the investment of future purchase payments.
However, no such substitution will be made without any necessary approval of the
Securities and Exchange Commission. We may also add other investment portfolios
of the Fund as eligible investments of VAB.
CONTRACT OWNER INQUIRIES
Any questions from contract owners should be directed to Ohio National Life,
Variable Annuity Administration, P.O. Box 2669, Cincinnati, Ohio 45201;
telephone (513) 559-6452.
PERFORMANCE DATA
Ohio National Life may advertise performance data for the various Fund
portfolios showing the percentage change in the value of an accumulation unit
based on the performance of the applicable portfolio over a period of time
(usually a calendar year). Such percentage change is determined by dividing the
increase (or decrease) in value for the unit by the accumulation unit value at
the beginning of the period. This percentage figure will reflect the deduction
of any asset-based charges under the contracts but will not reflect the
deduction of any applicable contingent deferred sales charge which would reduce
any percentage increase or make greater any percentage decrease.
Any such advertising will also include average annual total return figures
calculated as shown in the Statement of Additional Information. The average
annual total return figures will reflect the deduction of applicable contingent
deferred sales charges as well as applicable asset-based charges.
Ohio National Life may also distribute sales literature comparing separate
account performance to the Consumer Price Index or to such established market
indexes as the Dow Jones Industrial Average, the Standard & Poor's 500 Stock
Index, IBC's Money Fund Reports, Lehman Brothers Bond Indices, Morgan Stanley
Europe Australia Far East Index, Morgan Stanley World Index, Russell 2000 Index,
or other variable annuity separate accounts.
FEDERAL TAX STATUS
The following discussion of federal income tax treatment of amounts received
under a variable annuity contract is not exhaustive, does not purport to cover
all situations, and is not intended as tax advice. A qualified tax adviser
should always be consulted with regard to the application of law to individual
circumstances. Tax laws can change, even with respect to contracts that have
already been issued. Tax law revisions, with unfavorable consequences to
contracts offered by this prospectus, could have retroactive effect on
previously issued contracts or on subsequent voluntary transactions in
previously issued contracts.
13
<PAGE> 18
Ohio National Life is taxed as a life insurance company under Subchapter L of
the Internal Revenue Code (the "Code"). Since the operations of VAB are a part
of, and are taxed with, the operations of Ohio National Life, VAB is not
separately taxed as a "regulated investment company" under Subchapter M of the
Code.
The contracts described in this prospectus are considered annuity contracts
under Section 72 of the Code, which generally provides for taxation of
annuities. Under existing provisions of the Code, if the owner of the contract
is a natural person, any increase in the accumulation value of the contract is
not taxable to you as the owner or annuitant until you receive it, either in the
form of annuity payments, as contemplated by the contract, or in some other form
of distribution. With certain exceptions, where the owner of the contract is a
non-natural person (corporation, partnership or trust) any increase in the
accumulation value of the contract attributable to a purchase payment made after
February 28, 1986 will be treated as ordinary income received or accrued by the
owner during the current tax year.
When annuity payments commence under the contract each payment is taxable under
Section 72 of the Code as ordinary income in the year of receipt if the
annuitant has neither paid any portion of the purchase payment for the contract
nor has previously been taxed on any portion of the purchase payment. If any
portion of the purchase payment has been paid from or included in your taxable
income, this aggregate amount will be considered your "investment in the
contract." You will be entitled to exclude from your taxable income a portion of
each annuity payment equal to your "investment in the contract" divided by the
period of expected annuity payments, determined by your life expectancy and the
form of annuity benefit. Once your "investment in the contract" is recovered,
the entire portion of each annuity payment will be included in your taxable
income.
If an election is made to receive the accumulated value in a single sum in lieu
of annuity payments, the net amount so received will be treated as taxable
income to the extent it exceeds the "investment in the contract." A partial
withdrawal of contract values is taxable as income to the extent that the
accumulated value of the contract immediately before the payment exceeds the
"investment in the contract." Such a withdrawal is treated as a distribution of
earnings first and only second as a recovery of your "investment in the
contract." If any part of the value of the contract is assigned or pledged to
secure a loan, such value will be taxed as if it had been a partial withdrawal,
and it may be subject to the penalty tax.
There is a penalty tax equal to 10% of any amount that must be included in gross
income for tax purposes. The penalty will not apply to a redemption that is (1)
received on or after the taxpayer reaches age 59 1/2; (2) made to a beneficiary
on or after the death of the annuitant; (3) attributable to the taxpayer's
becoming disabled; (4) made as a series of substantially equal periodic payments
for the life of the annuitant (or joint lives of the annuitant and beneficiary);
(5) from a contract that is a qualified funding asset for purposes of a
structured settlement; or (6) made under an annuity contract that is purchased
with a single premium and with an annuity payout date not later than a year from
the purchase of the annuity. If an election is made not to have withholding
apply to the early withdrawal or if an insufficient amount is withheld, the
contract owner may be responsible for payment of estimated tax. You may also
incur penalties under the estimated tax rules if the withholding and estimated
tax payments are not sufficient. Failure to provide your taxpayer identification
number will automatically subject any payments under the contract to
withholding.
Section 1035(a) of the Code provides for tax-free exchanges of annuity
contracts, with the new contract maintaining the same tax status as the old. To
the extent that the value of a new contract is allocable to payments made prior
to August 14, 1982 under the old contract, any withdrawal of contract values
will be treated as a return of the investment in the contract to the extent
available. Amounts in excess of the investment in the contract will be treated
as ordinary income. Such contracts will be subject to the penalty tax only with
respect to amounts attributable to payments made after August 13, 1982.
When a contract is issued in connection with a deferred compensation plan or
arrangement, all rights, discretions and powers relative to the contract, are
vested in the employer and you must look only to your employer for the payment
of deferred compensation benefits. Generally an annuitant will have no
"investment in the contract" and amounts received by you from your employer
under a deferred compensation arrangement will be taxable in full as ordinary
income in the year of receipt.
14
<PAGE> 19
PART B
STATEMENT OF ADDITIONAL INFORMATION
<PAGE> 20
OHIO NATIONAL VARIABLE ACCOUNT B
OF
THE OHIO NATIONAL LIFE INSURANCE COMPANY
237 William Howard Taft Road
Cincinnati, Ohio 45219
Telephone (513) 559-6452
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1996
This Statement of Additional Information is not a prospectus. It should be read
in conjunction with the prospectus for Ohio National Variable Account B ("VAB")
single purchase payment individual non-tax qualified variable annuity contracts
dated May 1, 1996. To obtain a free copy of the VAB prospectus, write or call
The Ohio National Life Insurance Company ("Ohio National Life") at the above
address.
<TABLE>
Table of Contents
<S> <C>
Custodian ..................................................................... 2
Independent Certified Public Accountants ...................................... 2
Underwriter ................................................................... 2
Calculation of Money Market Subaccount Yield .................................. 3
Total Return .................................................................. 3
Transfer Limitations .......................................................... 4
Financial Statements .......................................................... 5
Appendix: Guaranteed Accumulation Account .................................... 14
</TABLE>
"TOP PLUS" NON-TAX QUALIFIED
<PAGE> 21
CUSTODIAN
Ohio National Life has executed an agreement with The Provident Bank ("the
Bank"), Cincinnati, Ohio, pursuant to which the shares of Ohio National Fund,
Inc. ("Fund") and other assets credited to VAB will be held in the custody of
the Bank. The agreement provides that the Bank will purchase Fund shares at
their net asset value determined as of the end of the valuation period of VAB
during which the purchase payment is received by Ohio National Life. The Bank
effects redemptions of Fund shares held by VAB upon instructions from Ohio
National Life at net asset value determined as of the end of the valuation
period of VAB during which a redemption request is received or made by Ohio
National Life. In addition, the Bank maintains appropriate records with respect
to all transactions in Fund shares relative to VAB.
The agreement requires the Bank to have at all times an aggregate capital,
surplus and undivided profit of not less than $2 million and prohibits
resignation by the Bank until (a) a successor custodian bank having the
qualifications enumerated above shall have agreed to serve as custodian, or (b)
VAB has been completely liquidated and the proceeds of such liquidation properly
distributed. Subject to these conditions the agreement of custodianship may be
terminated by either party upon sixty days written notice. For its services as
custodian, the Bank will be paid a fee to be agreed upon from time to time by
the Bank and Ohio National Life.
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The financial statements of VAB as of December 31, 1995 and for the periods
indicated herein and of The Ohio National Life Insurance Company's consolidated
financial statements as of December 31, 1995 and 1994 and for the periods
indicated herein have been included herein in reliance upon the reports of KPMG
Peat Marwick LLP, independent certified public accountants, appearing elsewhere
herein, and upon the authority of said firm as experts in accounting and
auditing.
UNDERWRITER
The offering of the contracts is continuous. As of the date of this Statement of
Additional Information, The O.N. Equity Sales Company ("ONESCO"), a wholly-owned
subsidiary of Ohio National Life, was the principal underwriter of the
contracts. The aggregate amount of underwriting commissions paid to ONESCO with
respect to contracts issued by VAB, and the amounts retained by ONESCO, for each
of the last three years have been:
<TABLE>
<CAPTION>
Aggregate Retained
Year Commissions Commissions
---- ----------- -----------
<S> <C> <C>
1995 $821,577 $ 75,503
1994 963,635 110,006
1993 747,048 87,412
</TABLE>
-2-
<PAGE> 22
Pending receipt of necessary regulatory approvals, Ohio National Equities, Inc.,
a new wholly-owned subsidiary of Ohio National Life, will become the principal
underwriter of the contracts.
CALCULATION OF MONEY MARKET SUBACCOUNT YIELD
The current yield of the Money Market subaccount for the seven days ended on
December 31, 1995, was 4.53%. This was calculated by determining the net change,
exclusive of capital changes, in the value of a hypothetical pre-existing
account having a balance of one accumulation unit of the subaccount at the
beginning of the seven-day period, dividing the net change in subaccount value
by the value of the subaccount at the beginning of the base period to obtain the
base period return, and multiplying the difference by 365/7. The resulting
figure is carried to the nearest hundredth of one percent.
TOTAL RETURN
The average compounded rate of return for a contract with respect to a
particular subaccount over a given period is found by equating the initial
amount invested to the ending redeemable value using the following formula:
P(1 + T) to the nth power = ERV
where: P = a hypothetical initial payment of $1,000,
T = the average annual total return,
n = the number of years, and
ERV = the ending redeemable value of a hypothetical
$1,000 beginning-of-period payment at the end
of the period (or fractional portion thereof).
For this purpose, it should be noted that the current series of contracts were
initially offered on October 7, 1993. Hypothetical results based upon the
performance of the subaccounts prior to that date assume that the same charges
and deductions applicable to the current contracts were in effect from the
inception of each corresponding portfolio of the Fund. Based on those
assumptions, the average annual total returns for contracts in each of the
subaccounts from the inception of the subaccount and for the one-, five- and
ten-year periods ending on December 31, 1995, and assuming surrender of the
contract on the latter date, are as follows:
<TABLE>
<CAPTION>
One Five Ten From Inception
Year Years Years Inception Date
---- ----- ----- --------- ----
<S> <C> <C> <C> <C> <C>
Equity 26.07% 12.44% 12.33% 9.18% 10-06-69
Money Market 4.67% 3.28% 5.23% 6.89% 03-20-80
Bond 17.83% 8.00% 7.34% 8.07% 11-02-82
Omni 21.66% 11.07% 9.75% 10.22% 09-10-84
International 11.10% N/A N/A 15.80% 04-30-93
Capital Appreciation 21.52% N/A N/A 14.97% 05-01-94
Small Cap 31.82% N/A N/A 31.92% 05-01-94
Global Contrarian N/A N/A N/A 8.16% 03-31-95
Aggressive Growth N/A N/A N/A 26.10% 03-31-95
</TABLE>
-3-
<PAGE> 23
TRANSFER LIMITATIONS
To the extent that transfers, surrenders, partial withdrawals and annuity
payments from a subaccount exceed net purchase payments and transfers into that
subaccount, securities of the corresponding portfolio of the Fund may have to be
sold. Excessive sales of a portfolio's securities on short notice could be
detrimental to that portfolio and to contractowners with values allocated to the
corresponding subaccount. To protect the interests of all contractowners, Ohio
National Life reserves the right to limit the number, frequency, method or
amount of transfers. Transfers from any portfolio of the Fund on any one day may
be limited to 1% of the previous day's total net assets of that portfolio if
Ohio National Life or the Fund, in its or their discretion, believes that the
portfolio might otherwise be damaged.
If and when transfers must be so limited, some transfer requests will not be
made. In determining which requests will be made, scheduled transfers (that is,
those pursuant to a pre-existing dollar cost averaging program) will be made
first, followed by mailed written requests in the order postmarked and, lastly,
telephone and facsimile requests in the order received. Contractowners whose
transfer requests are not made will be so notified. Current SEC rules preclude
Ohio National Life from processing at a later date those requests that were not
made. Accordingly, a new transfer request would have to be submitted in order to
make a transfer that was not made because of these limitations.
-4-
<PAGE> 24
OHIO NATIONAL VARIABLE ACCOUNT B
INDEPENDENT AUDITORS' REPORT
The Board of Directors
The Ohio National Life Insurance Company
The Contract Owners
Ohio National Variable Account B
We have audited the accompanying statements of assets and contract owners'
equity of Ohio National Variable Account B as of December 31, 1995, and the
related statements of operations, changes in contract owners' equity and
schedules of changes in unit values for each of the periods indicated herein.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1995, by examination of the
underlying mutual fund. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Ohio National Variable Account
B at December 31, 1995, and the results of its operations, changes in contract
owners' equity and changes in unit values for each of the periods indicated
herein, in conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Cincinnati, Ohio
January 26, 1996
OHIO NATIONAL VARIABLE ACCOUNT B
STATEMENTS OF ASSETS AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MONEY INTER- CAPITAL SMALL GLOBAL AGGRESS.
EQUITY MARKET BOND OMNI NATIONAL APPREC. CAP CONTR. GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets - Investments
at market value
(note 2) $31,692,108 $2,037,538 $3,363,007 $23,120,571 $17,877,407 $3,219,312 $2,153,602 $343,736 $592,440
=========== ========== ========== =========== =========== ========== ========== ======== ========
Contract owners'
equity:
Contracts in
accumulation
period (note 3) $30,649,431 $1,957,926 $3,323,689 $22,803,191 $17,877,407 $3,219,312 $2,153,602 $343,736 $592,440
Annuity reserves
for contracts in
payment period 1,042,677 79,612 39,318 317,380 0 0 0 0 0
----------- ---------- ---------- ----------- ----------- ---------- ---------- -------- --------
Total contract
owners' equity $31,692,108 $2,037,538 $3,363,007 $23,120,571 $17,877,407 $3,219,312 $2,153,602 $343,736 $592,440
=========== ========== ========== =========== =========== ========== ========== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 25
OHIO NATIONAL VARIABLE ACCOUNT B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
EQUITY MONEY MARKET BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
1995 1994 1995 1994 1995 1994
------------------------ ----------------------- ----------------------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested capital gains
and dividends ............................. $ 765,464 $ 681,207 $ 100,339 $ 61,214 $ 143,904 $ 150,716
----------- ----------- ---------- ---------- ---------- ----------
Realized and Unrealized gain
(loss) on investments:
Realized gain (loss) ....................... 334,966 258,005 0 0 4,677 (21,722)
Unrealized gain (loss) ..................... 5,201,091 (955,121) 0 0 328,653 (208,926)
----------- ----------- ---------- ---------- ---------- ----------
Net gain (loss) on
investments ............................. 5,536,057 (697,116) 0 0 333,330 (230,648)
----------- ----------- ---------- ---------- ---------- ----------
Net investment activity ................. 6,301,521 (15,909) 100,339 61,214 477,234 (79,932)
----------- ----------- ---------- ---------- ---------- ----------
Equity transactions:
Sales:
Contract purchase payments ................ 3,783,192 4,453,181 934,384 1,225,440 764,847 1,052,268
Transfers from fixed and
other subaccounts ....................... 1,917,272 815,860 332,192 400,324 164,917 10,306
----------- ----------- ---------- ---------- ---------- ----------
5,700,464 5,269,041 1,266,576 1,625,764 929,764 1,062,574
----------- ----------- ---------- ---------- ---------- ----------
Redemptions:
Withdrawals and surrenders .................. 1,391,091 572,332 173,670 88,760 127,381 39,153
Annuity and death benefit
payments .................................. 544,978 253,271 7,251 82,427 11,271 28,557
Transfers to fixed and
other subaccounts ......................... 540,461 1,744,883 1,436,196 545,685 341,845 367,642
----------- ----------- ---------- ---------- ---------- ----------
2,476,530 2,570,486 1,617,117 716,872 480,497 435,352
----------- ----------- ---------- ---------- ---------- ----------
Net equity transactions ................. 3,223,934 2,698,555 (350,541) 908,892 449,267 627,222
----------- ----------- ---------- ---------- ---------- ----------
Risk and administrative
expense (note 4) ............................ 293,247 230,219 29,381 18,366 29,494 21,729
----------- ----------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity .......................... 9,232,208 2,452,427 (279,583) 951,740 897,007 525,561
Contract owners' equity:
Beginning of period ......................... 22,459,900 20,007,473 2,317,121 1,365,381 2,466,000 1,940,439
----------- ----------- ---------- ---------- ---------- ----------
End of period ............................... $31,692,108 $22,459,900 $2,037,538 $2,317,121 $3,363,007 $2,466,000
=========== =========== ========== ========== ========== ==========
<CAPTION>
- ----------------------------------------------------------------------------
OMNI
SUBACCOUNT
1995 1994
---------------------------
<S> <C> <C>
Investment activity:
Reinvested capital gains
and dividends ............................. $ 567,491 $ 683,941
----------- -----------
Realized and Unrealized gain
(loss) on investments:
Realized gain (loss) ....................... 214,074 196,821
Unrealized gain (loss) ..................... 3,286,859 (974,886)
----------- -----------
Net gain (loss) on
investments ............................. 3,500,933 (778,065)
----------- -----------
Net investment activity ................. 4,068,424 (94,124)
----------- -----------
Equity transactions:
Sales:
Contract purchase payments ................ 2,322,421 4,009,573
Transfers from fixed and
other subaccounts ....................... 630,281 449,347
----------- -----------
2,952,702 4,458,920
----------- -----------
Redemptions:
Withdrawals and surrenders .................. 1,190,228 665,282
Annuity and death benefit
payments .................................. 141,737 236,699
Transfers to fixed and
other subaccounts ......................... 821,966 1,691,319
----------- -----------
2,153,931 2,593,300
----------- -----------
Net equity transactions ................. 798,771 1,865,620
----------- -----------
Risk and administrative
expense (note 4) ............................ 229,636 203,448
----------- -----------
Net change in contract
owners' equity .......................... 4,637,559 1,568,048
Contract owners' equity:
Beginning of period ......................... 18,483,012 16,914,964
----------- -----------
End of period ............................... $23,120,571 $18,483,012
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
(continued)
<PAGE> 26
OHIO NATIONAL VARIABLE ACCOUNT B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994 (CONTINUED)
<TABLE>
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
INTERNATIONAL CAPITAL APPRECIATION (A) SMALL CAP (A)
SUBACCOUNT SUBACCOUNT SUBACCOUNT
1995 1994 1995 1994 1995 1994
------------------------ ------------------------ --------------------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested capital gains
and dividends ........................... $ 553,908 $ 105,074 $ 36,886 $ 3,624 $ 3,942 $ 4,377
----------- ----------- ---------- -------- ---------- --------
Realized and Unrealized gain
(loss) on investments:
Realized gain (loss) .................... 92,960 43,126 8,474 190 26,681 1,283
Unrealized gain (loss) .................. 1,160,817 152,271 194,214 (3,228) 261,953 11,800
----------- ----------- ---------- -------- ---------- --------
Net gain (loss) on
investments ......................... 1,253,777 195,397 202,688 (3,038) 288,634 13,083
----------- ----------- ---------- -------- ---------- --------
Net investment activity ............. 1,807,685 300,471 239,574 586 292,576 17,460
----------- ----------- ---------- -------- ---------- --------
Equity transactions:
Sales:
Contract purchase payments .............. 3,503,140 7,633,263 2,287,561 340,464 1,305,146 410,006
Transfers from fixed and
other subaccounts ..................... 549,988 4,000,876 382,531 33,537 146,831 64,261
----------- ----------- ---------- -------- ---------- --------
4,053,128 11,634,139 2,670,092 374,001 1,451,977 474,267
----------- ----------- ---------- -------- ---------- --------
Redemptions:
Withdrawals and surrenders ................ 395,993 82,769 1,651 0 1,373 0
Annuity and death benefit
payments ................................ 65,426 105,283 0 0 0 0
Transfers to fixed and
other subaccounts ....................... 2,329,089 191,310 32,345 16,617 57,038 12,604
----------- ----------- ---------- -------- ---------- --------
2,790,508 379,362 33,996 16,617 58,411 12,604
----------- ----------- ---------- -------- ---------- --------
Net equity transactions ............... 1,262,620 11,254,777 2,636,096 357,384 1,393,566 461,663
----------- ----------- ---------- -------- ---------- --------
Risk and administrative
expense (note 4) .......................... 166,334 105,301 13,593 735 10,182 1,481
----------- ----------- ---------- -------- ---------- --------
Net change in contract
owners' equity ........................ 2,903,971 11,449,947 2,862,077 357,235 1,675,960 477,642
Contract owners' equity:
Beginning of period ....................... 14,973,436 3,523,489 357,235 0 477,642 0
----------- ----------- ---------- -------- ---------- --------
End of period ............................. $17,877,407 $14,973,436 $3,219,312 $357,235 $2,153,602 $477,642
=========== =========== ========== ======== ========== ========
<CAPTION>
----------------------------
GLOBAL AGGRESSIVE
CONTRAR.(B) GROWTH (B)
SUBACCOUNT SUBACCOUNT
1995 1995
------------ ----------
<S> <C> <C>
Investment activity:
Reinvested capital gains
and dividends ........................... $ 447 $ 11,649
-------- --------
Realized and Unrealized gain
(loss) on investments:
Realized gain (loss) .................... (105) 193
Unrealized gain (loss) .................. 7,563 19,014
-------- --------
Net gain (loss) on
investments ......................... 7,458 19,207
-------- --------
Net investment activity ............. 7,905 30,856
-------- --------
Equity transactions:
Sales:
Contract purchase payments .............. 349,702 499,326
Transfers from fixed and
other subaccounts ..................... 11,337 65,472
-------- --------
361,039 564,798
-------- --------
Redemptions:
Withdrawals and surrenders ................ 0 910
Annuity and death benefit
payments ................................ 0 0
Transfers to fixed and
other subaccounts ....................... 24,529 1,918
-------- --------
24,529 2,828
-------- --------
Net equity transactions ............... 336,510 561,970
-------- --------
Risk and administrative
expense (note 4) .......................... 679 386
-------- --------
Net change in contract
owners' equity ........................ 343,736 592,440
Contract owners' equity:
Beginning of period ....................... 0 0
-------- --------
End of period ............................. $343,736 $592,440
======== ========
</TABLE>
(a) Commenced operations May 1, 1994.
(b) Commenced operations March 31, 1995.
The accompanying notes are an integral part of these financial statements.
<PAGE> 27
OHIO NATIONAL VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
(1) BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Ohio
National Variable Account B (the Account) is a separate account of The
Ohio National Life Insurance Company (ONLIC) and all obligations arising
under variable annuity contracts are general corporate obligations of
ONLIC. The account has been registered as a unit investment trust under
the Investment Company Act of 1940.
Assets of the Account are invested in shares of Ohio National Fund, Inc.
(the Fund), a diversified open-end management investment company. The
Fund's investments are subject to varying degrees of market, interest and
financial risks; the issuers' abilities to meet certain obligations may
be affected by economic developments in their respective industries.
Annuity reserves are computed for currently payable contracts according
to the Progressive Annuity Mortality Table. The assumed interest rate is
3.5 and 4.0 percent depending on the contract selected by the annuitant.
Charges to annuity reserves for adverse mortality and expense risk
experience are reimbursed to the Account by ONLIC.
Investments are valued at the net asset value of fund shares held at
December 31, 1995. Share transactions are recorded on the trade date.
Income and capital gain distributions are recorded on the ex-dividend
date. Net realized capital gain or loss is determined on the basis of
average cost.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
(2) INVESTMENTS
At December 31, 1995 the aggregate cost and number of shares of Ohio
National Fund, Inc. owned by the respective subaccounts were:
<TABLE>
<CAPTION>
MONEY INTER- CAPITAL SMALL GLOBAL AGGRESS.
EQUITY MARKET BOND OMNI NATIONAL APPREC. CAP CONTR. GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost $23,999,567 $2,037,538 $3,207,396 $18,914,961 $16,288,860 $3,028,326 $1,879,848 $336,173 $573,426
Number of shares 1,108,755 203,754 307,714 1,313,691 1,242,876 268,545 135,857 31,819 50,020
</TABLE>
(3) CONTRACTS IN ACCUMULATION PERIOD
At December 31, 1995 the accumulation units and value per unit of the
respective subaccounts and products were:
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT
------------------ --------------
<S> <C> <C>
EQUITY SUBACCOUNT
Combination .................... 24,629.795 $102.816617
Back Load ...................... 1,095.059 52.603280
Top I .......................... 22,159.939 45.651565
Top II ......................... 622,320.611 38.520577
Top Plus ....................... 239,824.761 12.824740
MONEY MARKET SUBACCOUNT
VIA ............................ 29,058.691 25.237165
Top I .......................... 5,895.526 19.137562
Top II ......................... 43,414.758 17.048698
Top Plus ....................... 34,284.877 10.837896
BOND SUBACCOUNT
Top I .......................... 3,601.483 27.051775
Top II ......................... 94,682.527 22.654830
Top Plus ....................... 97,145.768 11.130129
OMNI SUBACCOUNT
Top I .......................... 53,357.284 29.362718
Top II ......................... 646,846.741 29.177631
Top Plus ....................... 194,243.008 12.165280
</TABLE>
<PAGE> 28
OHIO NATIONAL VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<S> <C> <C>
INTERNATIONAL SUBACCOUNT
Top I ................................ 17,005.791 14.702847
Top II ............................... 909,289.966 14.702847
Top Plus ............................. 330,279.189 12.892796
CAPITAL APPRECIATION SUBACCOUNT
Top I ................................ 455.817 11.370573
Top II ............................... 130,970.039 11.370573
Top Plus ............................. 136,611.923 12.626458
SMALL CAP SUBACCOUNT
Top II ............................... 15,532.451 12.201273
Top Plus ............................. 123,612.405 15.889068
GLOBAL CONTRARIAN SUBACCOUNT
Top II ............................... 10,852.235 10.125502
Top Plus ............................. 21,620.916 10.816003
AGGRESSIVE GROWTH SUBACCOUNT
Top II ............................... 9,447.777 10.499375
Top Plus ............................. 39,115.288 12.610012
</TABLE>
(4) RISK AND ADMINISTRATIVE EXPENSE
A deduction is made at the end of each valuation period, equal to 0.25%
on an annual basis, of the contract value for administrative expenses,
based on premiums established at the time the contracts are issued.
Although variable annuity payments differ according to the investment
performance of the Accounts, they are not affected by mortality or
expense experience because ONLIC assumes the expense risk and the
mortality risk under the contracts. ONLIC charges the Accounts' assets
for assuming those risks, based on the contract value at a rate of 0.25%
for mortality risk and 0.4% for expense risk on an annual basis.
The expense risk assumed by ONLIC is the risk that the deductions for
sales and administrative expenses provided for in the variable annuity
contract may prove insufficient to cover the cost of those terms.
The mortality risk results from a provision in the contract in which
ONLIC agrees to make annuity payments regardless of how long a
particular annuitant or other payee lives and how long all annuitants or
other payees as a class live if payment options involving life
contingencies are chosen. Those annuity payments are determined in
accordance with annuity purchase rate provisions established at the time
the contracts are issued.
(5) CONTRACT CHARGES
No deduction for a sales charge is made from purchase payments. A
contingent deferred sales charge ranging from 0% to 6% may be assessed
by ONLIC when a contract is surrendered or a partial withdrawal of
accumulation value is made before the annuity payout date.
A transfer fee is charged for each transfer from one subaccount to
another. The fee is charged against the contract owner's equity in the
subaccount from which the transfer is effected.
State premium taxes presently range from 0% to 2 1/2% for these
contracts. In those jurisdictions permitting, such taxes will be
deducted when annuity payments begin. Elsewhere, they will be deducted
from purchase payments.
(6) FEDERAL INCOME TAXES
Operations of the Account form a part of, and are taxed with, operations
of ONLIC which is taxed as a life insurance company under the Internal
Revenue Code. Taxes are the responsibility of the contract owner upon
termination or withdrawal. No Federal income taxes are payable under
present law on dividend income or capital gains distribution from the
Fund shares held in the Account or on capital gains realized by the
Account on redemption of the Fund shares.
<PAGE> 29
OHIO NATIONAL VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
(7) NOTE TO SCHEDULE 1
Schedule 1 presents the components of the change in the unit values,
which are the basis for determining contract owners' equity. This
schedule is presented for each series, as applicable, in the following
format:
- Beginning unit value
- Reinvested capital gains and dividends
(This amount reflects the increase in the unit value due to
capital gain and dividend distributions from the underlying
mutual fund.)
- Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit
value resulting from the market appreciation (depreciation) of
the fund.)
- Contract charges
(This amount reflects the decrease in the unit value due to
Risk and Administrative Expenses discussed in note 4 to the
financial statements.)
- Ending unit value
- Percentage increase (decrease) in unit value.
<PAGE> 30
SCHEDULE 1
OHIO NATIONAL VARIABLE ACCOUNT B
SCHEDULES OF CHANGES IN UNIT VALUES
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
EQUITY SUBACCOUNT B
<TABLE>
<CAPTION>
1995 COMBINATION BACK LOAD TOP I TOP II TOP PLUS
<S> <C> <C> <C> <C> <C>
Beginning unit value............................. 81.637986 41.809023 36.283811 30.616106 10.173015
Reinvested capital gains and dividends........... 2.742090 1.396517 1.205043 1.030439 0.348156
Realized and unrealized gain..................... 19.371159 9.915634 8.696663 7.260302 2.410290
Contract charges................................. (0.934618) (0.517894) (0.533952) (0.386270) (0.106721)
Ending unit value................................ 102.816617 52.603280 45.651565 38.520577 12.824740
Percentage increase in unit value*............... 25.9% 25.8% 25.8% 25.8% 26.1%
<CAPTION>
1994 COMBINATION BACK LOAD TOP I TOP II TOP PLUS
<S> <C> <C> <C> <C> <C>
Beginning unit value............................. 82.251550 42.164841 36.592684 30.876667 10.239365
Reinvested capital gains and dividends........... 2.711190 1.399652 1.206926 1.017393 0.336496
Realized and unrealized loss..................... (2.502581) (1.292096) (1.040544) (0.846236) (0.310933)
Contract charges................................. (0.822173) (0.463374) (0.475255) (0.431718) (0.091913)
Ending unit value................................ 81.637986 41.809023 36.283811 30.616106 10.173015
Percentage decrease in unit value*............... (0.7)% (0.8)% (0.8)% (0.8)% (0.6)%
</TABLE>
* An annualized rate of return cannot be determined as contract charges do not
include the contract charges discussed in note (5).
MONEY MARKET SUBACCOUNT B
<TABLE>
<CAPTION>
1995 VIA TOP I TOP II TOP PLUS
<S> <C> <C> <C> <C>
Beginning unit value............................. 24.205890 18.355539 16.319825 10.354108
Reinvested dividends............................. 1.352642 1.062689 0.912513 0.579004
Contract charges................................. (0.321367) (0.280666) (0.183640) (0.095216)
Ending unit value................................ 25.237165 19.137562 17.048698 10.837896
Percentage increase in unit value*............... 4.3% 4.3% 4.5% 4.7%
<CAPTION>
1994 VIA TOP I TOP II TOP PLUS
<S> <C> <C> <C> <C>
Beginning unit value............................. 23.578345 17.879672 15.865417 10.045964
Reinvested dividends............................. 0.937356 0.746707 0.631794 0.400467
Contract charges................................. (0.309811) (0.270840) (0.177386) (0.092323)
Ending unit value................................ 24.205890 18.355539 16.319825 10.354108
Percentage increase in unit value*............... 2.7% 2.7% 2.9% 3.1%
</TABLE>
* An annualized rate of return cannot be determined as contract charges do not
include the contract charges discussed in note (5).
BOND SUBACCOUNT B
<TABLE>
<CAPTION>
1995 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value............................. 23.002903 19.263675 9.445623
Reinvested capital gains and dividends........... 1.312460 1.100484 0.541348
Realized and unrealized gain..................... 3.063398 2.522822 1.236580
Contract charges................................. (0.326986) (0.232151) (0.093422)
Ending unit value................................ 27.051775 22.654830 11.130129
Percentage increase in unit value*............... 17.6% 17.6% 17.8%
<CAPTION>
1994 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value............................. 24.183549 20.252393 9.910842
Reinvested capital gains and dividends........... 1.737965 1.456380 0.710898
Realized and unrealized loss..................... (2.614973) (2.230031) (1.090233)
Contract charges................................. (0.303638) (0.215067) (0.085884)
Ending unit value................................ 23.002903 19.263675 9.445623
Percentage decrease in unit value*............... (4.9)% (4.9)% (4.7)%
</TABLE>
* An annualized rate of return cannot be determined as contract charges do not
include the contract charges discussed in note (5).
(continued)
<PAGE> 31
SCHEDULE 1 (CONTINUED)
OHIO NATIONAL VARIABLE ACCOUNT B
SCHEDULES OF CHANGES IN UNIT VALUES
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
OMNI SUBACCOUNT B
<TABLE>
<CAPTION>
1995 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value............................. 24.183329 24.030898 9.999661
Reinvested capital gains and dividends........... 0.768417 0.762912 0.321491
Realized and unrealized gain..................... 4.761955 4.678786 1.945772
Contract charges................................. (0.350983) (0.294965) (0.101644)
Ending unit value................................ 29.362718 29.177631 12.165280
Percentage increase in unit value*............... 21.4% 21.4% 21.7%
<CAPTION>
1994 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value............................. 24.578556 24.423644 10.143037
Reinvested capital gains and dividends........... 0.968614 0.959682 0.398562
Realized and unrealized loss..................... (1.048413) (1.087806) (0.451972)
Contract charges................................. (0.315428) (0.264622) (0.089966)
Ending unit value................................ 24.183329 24.030898 9.999661
Percentage decrease in unit value*............... (1.6)% (1.6)% (1.4)%
</TABLE>
* An annualized rate of return cannot be determined as contract charges do not
include the contract charges discussed in note (5).
INTERNATIONAL SUBACCOUNT B
<TABLE>
<CAPTION>
1995 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value............................. 13.259582 13.259582 11.604279
Reinvested capital gains and dividends........... 0.486534 0.485230 0.427074
Realized and unrealized gain..................... 1.137778 1.110834 0.971406
Contract charges................................. (0.181047) (0.152799) (0.109963)
Ending unit value................................ 14.702847 14.702847 12.892796
Percentage increase in unit value*............... 10.9% 10.9% 11.1%
<CAPTION>
1994 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value............................. 12.404596 12.404596 10.834626
Reinvested capital gains and dividends........... 0.141563 0.141861 0.124472
Realized and unrealized gain..................... 0.887395 0.860090 0.750694
Contract charges................................. (0.173972) (0.146965) (0.105513)
Ending unit value................................ 13.259582 13.259582 11.604279
Percentage increase in unit value*............... 6.9% 6.9% 7.1%
</TABLE>
* An annualized rate of return cannot be determined as contract charges do not
include the contract charges discussed in note (5).
CAPITAL APPRECIATION SUBACCOUNT B
<TABLE>
<CAPTION>
1995 TOP I TOP II TOP PLUS
<S> <C> <C> <C>
Beginning unit value............................. 10.000000*** 10.000000*** 10.390128
Reinvested capital gains and dividends........... 0.232825 0.238549 0.257166
Realized and unrealized gain..................... 1.281303 1.253494 2.086288
Contract charges................................. (0.143555) (0.121470) (0.107124)
Ending unit value................................ 11.370573 11.370573 12.626458
Percentage increase in unit value*............... 13.7% 13.7% 21.5%
1994 TOP PLUS
<S> <C>
Beginning unit value............................. 10.000000**
Reinvested capital gains and dividends........... 0.240457
Realized and unrealized gain..................... 0.243420
Contract charges................................. (0.093749)
Ending unit value................................ 10.390128
Percentage increase in unit value*............... 3.9%
</TABLE>
* An annualized rate of return cannot be determined as contract charges do
not include the contract charges discussed in note(5).
** Commenced operations May 1, 1994.
*** Commenced operations March 31, 1995.
(continued)
<PAGE> 32
SCHEDULE 1 (CONTINUED)
OHIO NATIONAL VARIABLE ACCOUNT B
SCHEDULES OF CHANGES IN UNIT VALUES
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
SMALL CAP SUBACCOUNT B
<TABLE>
<CAPTION>
1995 TOP II TOP PLUS
<S> <C> <C>
Beginning unit value............................. 10.000000*** 12.053440
Reinvested capital gains and dividends........... 0.038545 0.046338
Realized and unrealized gain..................... 2.296433 3.920914
Contract charges................................. (0.133705) (0.131624)
Ending unit value................................ 12.201273 15.889068
Percentage increase in unit value*............... 22.0% 31.8%
<CAPTION>
1994 TOP PLUS
<S> <C>
Beginning unit value............................. 10.000000**
Reinvested capital gains and dividends........... 0.254904
Realized and unrealized gain..................... 1.905839
Contract charges................................. (0.107303)
Ending unit value................................ 12.053440
Percentage increase in unit value*............... 20.5%
</TABLE>
* An annualized rate of return cannot be determined as contract charges do
not include the contract charges discussed in note(5).
** Commenced operations May 1, 1994.
*** Commenced operations March 31, 1995.
GLOBAL CONTRARIAN SUBACCOUNT B
<TABLE>
<CAPTION>
1995 TOP II TOP PLUS
<S> <C> <C>
Beginning unit value............................. 10.000000*** 10.000000**
Reinvested capital gains and dividends........... 0.025913 0.027475
Realized and unrealized gain..................... 0.209827 0.884367
Contract charges................................. (0.110238) (0.095839)
Ending unit value................................ 10.125502 10.816003
Percentage increase in unit value*............... 1.3% 8.2%
</TABLE>
* An annualized rate of return cannot be determined as contract charges do
not include the contract charges discussed in note(5).
** Commenced operations March 31, 1995.
*** Commenced operations October 2, 1995.
AGGRESSIVE GROWTH SUBACCOUNT B
<TABLE>
<CAPTION>
1995 TOP II TOP PLUS
<S> <C> <C>
Beginning unit value............................. 10.000000*** 10.000000**
Reinvested capital gains and dividends........... 0.490558 0.569631
Realized and unrealized gain..................... 0.124172 2.149950
Contract charges................................. (0.115355) (0.109569)
Ending unit value................................ 10.499375 12.610012
Percentage increase in unit value*............... 5.0% 26.1%
</TABLE>
* An annualized rate of return cannot be determined as contract charges do
not include the contract charges discussed in note (5).
** Commenced operations March 31, 1995.
*** Commenced operations October 2, 1995.
See accompanying notes to the financial statements.
<PAGE> 33
APPENDIX
GUARANTEED ACCUMULATION ACCOUNT
The Guaranteed Accumulation Account guarantees a fixed return for a specified
period of time and guarantees the principal against loss. Any portion of a
contract relating to the Guaranteed Accumulation Account is not registered under
the Securities Act of 1933. The Guaranteed Accumulation Account is not
registered as an investment company under the 1940 Act. Accordingly, neither the
Guaranteed Accumulation Account nor any interests in it are subject to the
provisions or restrictions of either such Act, and the disclosures in this
appendix have not been reviewed by the staff of the Securities and Exchange
Commission.
The Guaranteed Accumulation Account consists of all of Ohio National Life's
general assets other than those allocated to a separate account. Accumulation
values under a contract will be allocated between the Guaranteed Accumulation
Account and VAB. The allocation will be as elected by the owner at the time of
purchase or as subsequently changed.
Ohio National Life will invest its general assets in its discretion as allowed
by applicable state law. Investment income from Ohio National Life's general
assets will be allocated to those contracts having guaranteed accumulation
values in accordance with the terms of such contracts.
The amount of investment income allocated to the contracts will vary from year
to year in Ohio National Life's sole discretion. However, Ohio National Life
guarantees that it will credit interest at a rate of not less than 3% per year,
compounded annually, to contract values allocated to the Guaranteed Accumulation
Account. Ohio National Life may credit interest at a rate in excess of 3%, but
any such excess interest credit will be in Ohio National Life's sole discretion.
Ohio National Life guarantees that the guaranteed accumulation value of a
contract will never be less that (a) the amount of purchase payments allocated
to, and transfers into, the Guaranteed Accumulation Account, plus (b) interest
credited at the rate of 3% per year compounded annually, plus (c) any additional
excess interest Ohio National Life may credit to guaranteed accumulation values,
and less (d) any partial withdrawals and transfers from the guaranteed
accumulation values, and less (e) any contingent deferred sales charges on
partial withdrawals, state premium taxes and transfer fees. No deductions are
made from the Guaranteed Accumulation Account for administrative expenses or
risk undertakings. (See "Deductions and Expenses" in the prospectus.)
Not more than 20% of the guaranteed accumulation value of a contract (or $1,000,
if greater), as of the beginning of any contract year, may be transferred to one
or more variable subaccounts during that contract year. As provided by
applicable state law, Ohio National Life reserves the right to defer the payment
of amounts withdrawn from the Guaranteed Accumulation Account for a period not
to exceed six months from the date written request for such withdrawal is
received by Ohio National Life.
-14-
<PAGE> 34
OHIO NATIONAL VARIABLE ACCOUNT B
FORM N-4
PART C
OTHER INFORMATION
<PAGE> 35
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
The following financial statements of the Registrant are included in Part B of
this Registration Statement:
Independent Auditors' Report of KPMG Peat Marwick LLP dated January 19,
1996
Statements of Assets and Contract Owners' Equity dated December 31, 1995
Statement of Operations and Changes in Contract Owners' Equity for the
Years Ended December 31, 1995 and 1994
Notes to Financial Statements dated December 31, 1995
Schedules of Changes in Unit Values for the Years Ended December 31, 1995
and 1994
The following consolidated financial statements of the Depositor and its
subsidiaries are also included in Part B of this Registration Statement and will
be furnished by a subsequent Post-effective Amendment hereto:
Independent Auditors' Report of KPMG Peat Marwick LLP dated February 9,
1996
Consolidated Balance Sheets dated December 31, 1995 and 1994
Consolidated Statements of Operations for the Years Ended December 31,
1995, 1994 and 1993
Consolidated Statements of Surplus for the Years Ended December 31, 1995,
1994 and 1993
Consolidated Statements of Cash Flow for the Years Ended December 31, 1995,
1994 and 1993
Notes to Consolidated Financial Statements dated December 31, 1995, 1994
and 1993
The following financial information is included in Part A of this Registration
Statement:
Accumulation Unit Values
Consents of the Following Persons:
KPMG Peat Marwick LLP
Exhibits:
(13) Computation of Performance Data
All other relevant exhibits, which have previously been filed with the
Commission and are incorporated herein by reference, are as follows:
-1-
<PAGE> 36
(1) Resolution of Board of Directors of the Depositor authorizing
establishment of the Registrant was filed as Exhibit A(1) of the
Registrant's registration statement on Form S-6 on August 3, 1982
(File no. 2-78653).
(2) Agreement of Custodianship between the Depositor and The Provident
Bank was filed as Exhibit 3 of the Registrant's Form N-4,
Post-effective Amendment no. 5 on April 27, 1988 (File no. 2-91214).
(3)(a) Distribution Agreement between the Depositor and The O.N. Equity
Sales Company was filed as Exhibit A(3)(a) of the Registrant's
registration statement on Form S-6 on October 25, 1982 (File no.
2-78653).
(3)(b) Registered Representative's Sales Contract with Variable Annuity
Supplement was filed as Exhibit (3)(b) of the Registrant's Form N-4,
Post-effective Amendment no. 9 on February 27, 1991 (File no.
2-91214).
(3)(c) Variable Annuity Sales Commission Schedule was filed as Exhibit
A(3)(c) of the Registrant's registration statement on Form S-6 on May
18, 1984 (File no. 2-91214).
(4) Combination Annuity Contract, Form 93-VB-1, was filed as Exhibit (4)
of the Registrant's Form N-4 on May 6, 1993 (File No. 33-62284).
(5) Single Purchase Payment Variable Annuity Application, Form V-4891-B,
was filed as Exhibit (5) of the Registrant's Form N-4 on May 6, 1993
(File No. 33-62284).
(6)(a) Articles of Incorporation of the Depositor were filed as Exhibit
A(6)(a) of Ohio National Variable Interest Account registration
statement on Form N-8B-2 on July 11, 1980 (File no. 811-3060).
(6)(b) Code of Regulations (by-laws) of the Depositor were filed as Exhibit
A(6)(b) of Ohio National Variable Interest Account registration
statement on Form N-8B-2 on July 11, 1980 (File no. 811-3060).
(8) Powers of Attorney by certain Directors of the Depositor were filed
as Exhibit (8) of the Registrant's Form N-4, Post-effective Amendment
no. 4 on March 27, 1995.
-2-
<PAGE> 37
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
Name and Principal Positions and Offices
Business Address with Depositor
- ------------------ ---------------------
<S> <C>
Trudy K. Backus* Vice President, Individual Insurance Services
Howard C. Becker* Vice President, Corporate and Human Resources
Paul L. Bergmann* Vice President, Financial Control (Treasurer)
Michael A. Boedeker* Vice President, Fixed Income Securities
Tom D. Bowman* Sales Vice President, Pensions
Joseph P. Brom* Senior Vice President & Chief Investment Officer
Dale P. Brown Director
36 East Seventh Street
Cincinnati, Ohio 45202
Jack E. Brown Director
50 E. Rivercenter Blvd.
Covington, Kentucky 41011
William R. Burleigh Director
One West Fourth Street
Suite 1100
Cincinnati, Ohio 45202
Victoria B. Buyniski Director
2343 Auburn Avenue
Cincinnati, Ohio 45219
Raymond R. Clark Director
201 East Fourth Street
Cincinnati, Ohio 45202
David W. Cook* Senior Vice President and Actuary
Dr. Alvin H. Crawford Director
Children's Hospital Medical Center
Department of Orthopedics
Elland and Bethesda Avenues
Cincinnati, Ohio 45229
Robert M. DiTommaso* Vice President, Career Marketing
Ronald J. Dolan* Senior Vice President and Chief Financial Officer
Michael J. Ferry* Information Systems Vice President
Bannus B. Hudson Director
One Eastwood Drive
Cincinnati, Ohio 45227
</TABLE>
-3-
<PAGE> 38
<TABLE>
<CAPTION>
Name and Principal Positions and Offices
Business Address with Depositor
- ------------------ ---------------------
<S> <C>
Daniel W. LeBlond Director
7680 Innovation Way
Mason, Ohio 45040
David G. McClure* Vice President, Variable Product Sales
Hamilton F. McGregor* Senior Vice President, Group & Pension Operations
Charles S. Mechem, Jr. Director
One East Fourth Street
Cincinnati, Ohio 45202
Joan E. Mettey* Vice President, Claims
James I. Miller, II* Vice President, Marketing Support
James W. Nethercott Director
8431 Concord Hills Circle
Cincinnati, Ohio 45243
Thomas O. Olson* Vice President, Underwriting
David B. O'Maley* Director, Chairman, President and Chief Executive Officer
George B. Pearson, Jr.* Vice President, PGA Marketing
Dallas L. Pennington* Vice President, Information Systems
J. Donald Richardson* Senior Regional Vice President
D. Gates Smith* Senior Vice President, Sales
Michael D. Stohler* Vice President, Mortgages and Real Estate
Stuart G. Summers* Senior Vice President and General Counsel
Oliver W. Waddell Director
425 Walnut Street
Cincinnati, Ohio 45202
Bradley L. Warnemunde Director and Chairman Emeritus
250 William Howard Taft Road
Cincinnati, Ohio 45219
Dr. David S. Williams* Vice President and Medical Director
Donald J. Zimmerman* Director and Senior Vice President, Insurance Operations
and Secretary
</TABLE>
*The principal business address for these individuals is 237 William Howard Taft
Road, Cincinnati, Ohio 452l9
-4-
<PAGE> 39
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
THE OHIO NATIONAL LIFE INSURANCE COMPANY/CINCINNATI
A MUTUAL LIFE INSURANCE COMPANY INCORPORATED UNDER THE LAWS OF OHIO
- --------------------------------------------------------------------------------
| |
| |
| |
| |
| |
| |
- ------------------------------- -----------------------------
ENTERPRISE PARK, INC. OHIO NATIONAL EQUITIES INC.
A GEORGIA CORPORATION A BROKER/DEALER
REAL ESTATE DEVELOPMENT COMPANY CAPITALIZED BY ONLI @ $30,000
CAPITALIZED BY ONLI $50,000
- ------------------------------- --------------------------------
Pres. & Dir. M. Stohler Chm. & Dir. D. O'Maley
V.P. & Dir. J. Brom Pres. & Dir. D. Zimmerman
Secy. & Dir. T. Tews VP/COO/Dir. D. McClure
Treas. & Dir. P. Bergmann VP & Dir. T. Backus
Director T. Bowman
Secretary R. Benedict
Treasurer K. Jaeger
Compliance Officer A. Starkey
Asst. Secy. B. Hopewell
- ------------------------------- --------------------------------
<CAPTION>
<S> <C>
- -------------------------------------------------------------------------------------------------------------------
THE OHIO NATIONAL LIFE INSURANCE COMPANY/CINCINNATI
A MUTUAL LIFE INSURANCE COMPANY INCORPORATED UNDER THE LAWS OF OHIO
- -------------------------------------------------------------------------------------------------------------------
| | S E P A R A T E A C C O U N T S |
| | -------------------------------- |
| | A B C D E F |
| | -------------------------------- |
| | | |
| | | |
- ------------------------------- ------------------------------ | -------------------------------------
OHIO NATIONAL INVESTMENTS, INC. THE O.N. EQUITY SALES COMPANY | OHIO NATIONAL LIFE
| ASSURANCE CORPORATION
AN INVESTMENT ADVISER AN OHIO CORPORATION | AN OHIO CORPORATION
CAPITALIZED BY ONLI @ $10,000 A BROKER/DEALER | A STOCK LIFE INSURANCE COMPANY
CAPITALIZED BY ONLI @ $790,000 | CAPITALIZED BY ONLI @ $32,000,000
| INCORPORATED UNDER THE LAWS OF OHIO
- ------------------------------- ------------------------------ | ------------------------------------
Chm. & Dir. D. O'Maley | Chm./Pres/.CEO & Dir. D. O'Maley
Pres. & Dir. J. Brom | Sr. VP & Dir. R. Dolan
Pres. & Dir. D. Zimmerman | Sr. VP/Secy. & Dir. D. Zimmerman
VP & Dir. M. Boedeker | Sr. VP & Dir. S. Summers
V.P. & Dir. T. Bowman | Sr. VP & Dir. J. Brom
VP & Dir. D. McClure | Sr. Vice Pres. D. Cook
V.P., COO & Dir. D. McClure | Sr. Vice Pres. G. Smith
VP & Dir. S. Williams | Vice President P. Bergmann
Secy. & Dir. R. Benedict | Vice President M. Boedeker
Treasurer D. Taney | Vice President R. DiTommaso
Director S. Summers | Vice President J. Mettey
Secretary R. Benedict | Vice President G. Pearson
Treasurer K. Jaeger | Vice President D. Pennington
Asst. Secy. B. Hopewell | Vice President M. Stohler
Asst. Secretary B. Hopewell | Second Vice Pres. J. Houser
| Asst. Secy. R. Benedict
Compliance Director A. Starkey | Asst. Secy. T. Tews
| Asst. Actuary K. Flischel
- ------------------------------- ------------------------------ | ------------------------------------
| | SEPARATE ACCOUNT
| |-------------------------------------
| | R
| | ---
<= Advisor to | Advisor to => |
-------------------------------------------------------- |
| | |
- ----------------------------- -------------------------------- | | --------------------------------
ONE FUND, INC. O.N. Investment Management Co. | | Ohio National Fund
| |
A MARYLAND CORPORATION An Ohio Corporation | | A Maryland Corporation
AN OPEN END DIVISIFIED A Financial Advisory service | | An open end diversified
MANAGEMENT INVESTMENT COMPANY Capitalized by ONESCO @ $145,000 | | management investment company
- ----------------------------- -------------------------------- | | --------------------------------
Pres. & Dir. D. Zimmerman Pres. & Dir. J. Brom | | Pres. & Dir. D. Zimmerman
Vice. Pres. M. Boedeker | ----- Vice President M. Boedeker
Vice Pres. J. Brom VP & Dir. M. Boedeker | Vice President J.Brom
Vice Pres. D. McClure | Vice President S. Williams
Vice Pres. S. Williams VP & Dir. D. McClure | Treasurer D. Taney
Treasurer D. Taney -------- Secy. & Dir. R. Benedict
Secy. & Dir. R. Benedict VP & Dir. S. Willams Asst. Secy. B. Hopewell
Asst. Secy. B. Hopewell Director J. Baker
Asst. Secy. A. Starkey Treasurer D. Taney Director G. Castrucci
Director J. Baker Director M. Kirby
Director G. Castrucci Secretary R. Benedict
Director M. Kirby
Asst. Secy. B. Hopewell
- --------------------------------- -------------------------------- ---------------------------------
</TABLE>
<PAGE> 40
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
The Organization Chart showing the relationships among the Depositor, the
Registrant and their affiliated entities is on page 4A hereof.
ITEM 27. NUMBER OF CONTRACTOWNERS
As of February 1, 1996, the Registrant's contracts were owned by 7,023 owners.
ITEM 28. INDEMNIFICATION
The sixth article of the Depositor's Articles of Incorporation, as amended,
provides as follows:
Each former, present and future Director, Officer or Employee of the
Corporation (and his heirs, executors or administrators), or any such
person (and his heirs, executors or administrators) who serves at the
Corporation's request as a director, officer, partner, member or employee
of another corporation, partnership or business organization or association
of any type whatsoever shall be indemnified by the Corporation against
reasonable expenses, including attorneys' fees, judgments, fine and amounts
paid in settlement actually and reasonably incurred by him in connection
with the defense of any contemplated, pending or threatened action, suit or
proceeding, civil, criminal, administrative or investigative, other than an
action by or in the right of the corporation, to which he is or may be made
a party by reason of being or having been such Director, Officer, or
Employee of the Corporation or having served at the Corporation's request
as such director, officer, partner, member or employee of any other
business organization or association, or in connection with any appeal
therein, provided a determination is made by majority vote of a
disinterested quorum of the Board of Directors (a) that such a person acted
in good faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Corporation, and (b) that, in any
matter the subject of criminal action, suit or proceeding, such person had
no reasonable cause to believe his conduct was unlawful. The termination of
any action, suit or proceeding by judgment, order, settlement, conviction,
or upon a plea of nolo contendere or its equivalent, shall not, of itself
create a presumption that the person did not act in good faith in any
manner which he reasonably believed to be in or not opposed to the best
interests of the Corporation, and with respect to any criminal action or
proceeding, he had reasonable cause to believe that his conduct was
unlawful. Such right of indemnification shall not be deemed exclusive of
any other rights to which such person may be entitled. The manner by which
the right to indemnification shall be determined in the absence of a
disinterested quorum of the Board of Directors shall be set forth in the
Code of Regulations or in such other manner as permitted by law. Each
former, present, and future Director, Officer or Employee of the
Corporation (and his heirs, executors or administrators) who serves at the
Corporation's request as a director, officer, partner, member or employee
of another corporation, partnership or business organization or association
of any type whatsoever shall be indemnified by the Corporation against
reasonable expenses, including attorneys' fees, actually and reasonably
incurred by him in connection with the defense or settlement of any
contemplated, pending or threatened action, suit or proceeding, by or in
the right of the Corporation to procure a judgment in its favor, to which
he is or may be a party by reason of being or having been such Director,
Officer or Employee of the Corporation or having served at the
Corporation's request as such director, officer, partner, member or
employee of any other business organization or association, or in
connection with any appeal therein, provided a determination is made by
majority vote of a disinterested quorum of the Board of Directors (a) that
such person was not, and has not been adjudicated to have been negligent or
guilty of misconduct in the performance of his duty to the Corporation or
to such other business organization or association, and (b) that such
person acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the Corporation.
-5-
<PAGE> 41
Such right of indemnification shall not be deemed exclusive of any other
rights to which such person may be entitled. The manner by which the right
of indemnification shall be determined in the absence of a disinterested
quorum of the Board of Directors shall be as set forth in the Code of
Regulations or in such other manner as permitted by law.
In addition, Article XII of the Depositor's Code of Regulations states as
follows:
If any director, officer or employee of the Corporation may be entitled to
indemnification by reason of Article Sixth of the Amended Articles of
Corporation, indemnification shall be made upon either (a) a determination
in writing of the majority of disinterested directors present, at a meeting
of the Board at which all disinterested directors present constitute a
quorum, that the director, officer or employee in question was acting in
good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of this Corporation or of such other business
organization or association in which he served at the Corporation's
request, and that, in any matter which is the subject of a criminal action,
suit or proceeding, he had no reasonable cause to believe that his conduct
was unlawful and in an action by or in the right of the Corporation to
procure a judgment in its favor that such person was not and has not been
adjudicated to have been negligent or guilty of misconduct in the
performance of his duty to the Corporation or to such other business
organization or association; or (b) if the number of all disinterested
directors would not be sufficient at any time to constitute a quorum, or if
the number of disinterested directors present at two consecutive meetings
of the Board has not been sufficient to constitute a quorum, a
determination to the same effect as set forth in the foregoing clause (a)
shall be made in a written opinion by independent legal counsel other than
an attorney, or a firm having association with it an attorney, who has been
retained by or who has performed services for this Corporation, or any
person to be indemnified within the past five years, or by the majority
vote of the policyholders, or by the Court of Common Pleas or the court in
which such action, suit or proceeding was brought. Prior to making any such
determination, the Board of Directors shall first have received the written
opinion of General Counsel that a number of directors sufficient to
constitute a quorum, as named therein, are disinterested directors. Any
director who is a party to or threatened with the action, suit or
proceeding in question, or any related action, suit or proceeding, or has
had or has an interest therein adverse to that of the Corporation, or who
for any other reason has been or would be affected thereby, shall not be
deemed a disinterested director and shall not be qualified to vote on the
question of indemnification. Anything in this Article to the contrary
notwithstanding, if a judicial or administrative body determines as part of
the settlement of any action, suit or proceeding that the Corporation
should indemnify a director, officer or employee for the amount of the
settlement, the Corporation shall so indemnify such person in accordance
with such determination. Expenses incurred with respect to any action, suit
or proceeding which may qualify for indemnification may be advanced by the
Corporation prior to final disposition thereof upon receipt of an
undertaking by or on behalf of the director, officer or employee to repay
such amount if it is ultimately determined hereunder that he is not
entitled to indemnification or to the extent that the amount so advanced
exceeds the indemnification to which he is ultimately determined to be
entitled.
ITEM 29. PRINCIPAL UNDERWRITERS
The principal underwriter of the Registrant's securities is presently The O.N.
Equity Sales Company ("ONESCO"). ONESCO is a wholly-owned subsidiary of the
Depositor. ONESCO also serves as the principal underwriter of securities issued
by Ohio National Variable Accounts A and D, other separate accounts of the
Depositor which are registered as unit investment trusts; and Ohio National
Variable Account R, a separate account of the Depositor's subsidiary, Ohio
National Life Assurance Corporation, which separate account is also registered
as a unit investment trust; and ONE Fund, Inc., an open-end investment company
of the management type.
-6-
<PAGE> 42
The directors and officers of ONESCO are:
<TABLE>
<CAPTION>
Name Positions with Underwriter
---- --------------------------
<S> <C>
David B. O'Maley Chairman and Director
Donald J. Zimmerman President and Director
David G. McClure Vice President, Chief Operating Officer and Director
James I. Miller II Vice President and Director
Ronald L. Benedict Secretary and Director
Robert M. DiTommaso Vice President
Thomas MacDonald Vice President
Kenneth M. Jaeger Treasurer
Amy D. Starkey Compliance Officer
Barbara A. Hopewell Assistant Secretary
</TABLE>
Pending receipt of necessary regulatory approvals, Ohio National Equities, Inc.
("ONE,Inc."), a new wholly-owned subsidiary of the Depositor, will become the
principal underwriter of the Registrant's securities as well as those of the
other entities listed above. The directors and officers of ONE, Inc. are:
<TABLE>
<CAPTION>
Name Position with ONE, Inc.
---- -----------------------
<S> <C>
David B. O'Maley Chairman and Director
Donald J. Zimmerman President and Director
David G. McClure Vice President, Chief Operating Officer and Director
Trudy K. Backus Vice President and Director
Tom D. Bowman Director
Ronald L. Benedict Secretary
Kenneth M. Jaeger Treasurer
Amy D. Starkey Compliance Officer
Barbara A. Hopewell Assistant Secretary
</TABLE>
The principal business address of each of the foregoing is 237 William Howard
Taft Road, Cincinnati, Ohio 45219.
During the last fiscal year, ONESCO received the following commissions and other
compensation, directly or indirectly, from the Registrant:
<TABLE>
<CAPTION>
Net Underwriting Compensation
Discounts and on Redemption Brokerage
Commissions or Annuitization Commissions Compensation
- ---------------- ---------------- ----------- ------------
<S> <C> <C> <C>
$821,577 None None None
</TABLE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
The books and records of the Registrant which are required under Section 31(a)
of the 1940 Act and Rules thereunder are maintained in the possession of the
following persons:
(1) Journals and other records of original entry:
The Ohio National Life Insurance Company ("Depositor")
237 William Howard Taft Road
Cincinnati, Ohio 45219
-7-
<PAGE> 43
The Provident Bank ("Custodian")
One East Fourth Street
Cincinnati, Ohio 45269
(2) General and auxiliary ledgers:
Depositor and Custodian
(3) Securities records for portfolio securities:
Custodian
(4) Corporate charter, by-laws and minute books:
Registrant has no such documents.
(5) Records of brokerage orders:
Not applicable.
(6) Records of other portfolio transactions:
Custodian
(7) Records of options:
Not applicable
(8) Records of trial balances:
Custodian
(9) Quarterly records of allocation of brokerage orders and commissions:
Not applicable
(10) Records identifying persons or group authorizing portfolio transactions:
Depositor
(11) Files of advisory materials:
Not applicable
(12) Other records
Custodian and Depositor
ITEM 3L. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS
Not applicable.
-8-
<PAGE> 44
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
l940, the registrant, Ohio National Variable Account B, has caused this
post-effective amendment to the registration statement to be signed on its
behalf in the City of Cincinnati and the State of Ohio on this 28th day of
February, 1996.
OHIO NATIONAL VARIABLE ACCOUNT B
(Registrant)
By THE OHIO NATIONAL LIFE INSURANCE COMPANY
(Depositor)
By /s/Donald J. Zimmerman
----------------------------------
Donald J. Zimmerman, Senior Vice President,
Insurance Operations
Attest:
/s/Ronald L. Benedict
- ---------------------------------
Ronald L. Benedict
Second Vice President and Counsel
and Assistant Secretary
As required by the Securities Act of 1933 and the Investment Company Act of
l940, the depositor, The Ohio National Life Insurance Company, has caused this
post-effective amendment to the registration statement to be signed on its
behalf in the City of Cincinnati and the State of Ohio on the 28th day of
February, 1996.
THE OHIO NATIONAL LIFE INSURANCE COMPANY
(Depositor)
By/s/Donald J. Zimmerman
---------------------------------
Donald J. Zimmerman, Senior Vice President,
Insurance Operations
Attest:
/s/Ronald L. Benedict
- ---------------------------------
Ronald L. Benedict
Second Vice President and Counsel
and Assistant Secretary
<PAGE> 45
As required by the Securities Act of 1933, this post-effective amendment to
theregistration statement has been signed below by the following persons in the
capacities and on the dates indicated.
<TABLE>
<CAPTION>
Signature Title Date
- --------- ----- ----
<S> <C> <C>
/s/David B. O'Maley Chairman, President, February 28, 1996
------------------------- Chief Executive Officer
David B. O'Maley and Director
*/s/Dale P. Brown Director February 28, 1996
- --------------------------
Dale P. Brown
*/s/Jack E. Brown Director February 28, 1996
- --------------------------
Jack E. Brown
*/s/William R. Burleigh Director February 28, 1996
- --------------------------
William R. Burleigh
*/s/Victoria B. Buyniski Director February 28, 1996
- --------------------------
Victoria B. Buyniski
*/s/Raymond R. Clark Director February 28, 1996
- --------------------------
Raymond R. Clark
*/s/Alvin H. Crawford Director February 28, 1996
- --------------------------
Alvin H. Crawford
*/s/Bannus B. Hudson Director February 28, 1996
- --------------------------
Bannus B. Hudson
*/s/Daniel W. LeBlond Director February 28, 1996
- --------------------------
Daniel W. LeBlond
*/s/Charles S. Mechem, Jr. Director February 28, 1996
- --------------------------
Charles S. Mechem, Jr.
*/s/James W. Nethercott Director February 28, 1996
- --------------------------
James W. Nethercott
*/s/Oliver W. Waddell Director February 28, 1996
- --------------------------
Oliver W. Waddell
</TABLE>
<PAGE> 46
<TABLE>
<S> <C> <C>
*/s/Bradley L. Warnemunde Chairman Emeritus and February 28, 1996
- -------------------------- Director
Bradley L. Warnemunde
/s/Donald J. Zimmerman Senior Vice President, February 28, 1996
- -------------------------- Insurance Operations &
Donald J. Zimmerman Secretary and Director
*By /s/Donald J. Zimmerman
-----------------------
Donald J. Zimmerman, Attorney in Fact pursuant to Powers of Attorney, copies of which
have previously been filed as exhibits to the Registrant's registration statement.
</TABLE>
<PAGE> 47
INDEX OF CONSENTS AND EXHIBITS
<TABLE>
<CAPTION>
Page Number in
Exhibit Sequential
Number Description Numbering System
- ------- ----------- ----------------
<S> <C> <C>
Consent of KPMG Peat Marwick LLP
(13) Computation of Performance Data
</TABLE>
<PAGE> 48
CONSENTS
<PAGE> 49
Independent Auditors' Consent
-----------------------------
The Board of Directors
The Ohio National Life Insurance Company:
We consent to the inclusion of our report included herein and to the reference
to our firm under the heading "Independent Certified Public Accountants" in the
Statement of Additional Information.
KPMG Peat Marwick LLP
February 29, 1996
<PAGE> 1
EXHIBIT (13)
COMPUTATION OF PERFORMANCE DATA
<PAGE> 2
Annual Report Calculations
Equity
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP + Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/68 10.000000 8.82% 8.88% 9.18% 8.70% 1267.64% 10.17%
12/31/69 1.0090 10.090000
12/31/70 1.0763 10.859867
12/31/71 1.0766 11.691733
12/31/72 1.1340 13.258425
12/31/73 0.8989 11.917998
12/31/74 0.8047 9.590413
12/31/75 1.1985 11.494110
12/31/76 1.1680 13.425121
12/31/77 0.9116 12.238340
12/31/78 1.0726 13.126844
12/31/79 1.1587 15.210074
12/31/80 1.4147 21.517691
12/31/81 0.9707 20.887223
12/31/82 1.2874 26.890211
12/31/83 1.1849 31.862211
12/31/84 0.9912 31.581823
12/31/85 1.2369 39.063557 11.96% 12.02% 12.33% 11.83% 250.11% 13.35%
12/31/86 1.2331 48.169272
12/31/87 1.1082 53.381187
12/31/88 1.1503 61.404380
12/31/89 1.2321 75.656336
12/31/90 0.9614 72.736002 12.07% 12.13% 12.44% 11.94% 88.03% 13.46%
12/31/91 1.2018 87.414127
12/31/92 1.0754 94.005152
12/31/93 1.1409 107.250478
12/31/94 1.0025 107.518604 25.65% 25.71% 26.07% 25.51% 27.20% 27.20%
12/31/95 1.2720 136.763665
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 3
Money Market
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP + Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
7/31/80 10.000000 6.25% 6.31% 6.89% 6.13% 208.04% 7.57%
12/31/80 1.0483 10.483000
12/31/81 1.1625 12.186488
12/31/82 1.1227 13.681770
12/31/83 1.0861 14.859770
12/31/84 1.1011 16.362093
12/31/85 1.0775 17.630155 4.44% 4.50% 5.23% 4.33% 74.72% 5.74%
12/31/86 1.0630 18.740855
12/31/87 1.0628 19.917780
12/31/88 1.0713 21.337918
12/31/89 1.0889 23.234859
12/31/90 1.0789 25.068089 2.93% 2.99% 3.28% 2.82% 22.88% 4.21%
12/31/91 1.0554 26.456861
12/31/92 1.0317 27.295544
12/31/93 1.0274 28.043442
12/31/94 1.0400 29.165179 4.32% 4.38% 4.67% 4.21% 5.62% 5.62%
12/31/95 1.0562 30.804262
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 4
Bond
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP + Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
11/02/82 10.000000 7.70% 7.77% 8.07% 7.59% 212.58% 9.05%
12/31/82 1.0060 10.060000
12/31/83 1.0263 10.324578
12/31/84 1.1215 11.579014
12/31/85 1.2153 14.071976 6.98% 7.04% 7.34% 6.86% 122.13% 8.31%
12/31/86 1.1249 15.829566
12/31/87 1.0081 15.957785
12/31/88 1.0674 17.033340
12/31/89 1.1071 18.857611
12/31/90 1.0782 20.332276 7.64% 7.70% 8.00% 7.53% 53.74% 8.98%
12/31/91 1.1296 22.967339
12/31/92 1.0754 24.699076
12/31/93 1.1069 27.339407
12/31/94 0.9616 26.289574 17.44% 17.50% 17.83% 17.31% 18.90% 18.90%
12/31/95 1.1890 31.258304
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Omni
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP + Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
9/10/84 10.000000 9.31% 9.38% 10.22% 9.20% 232.74% 11.22%
12/31/84 1.0374 10.374000
12/31/85 1.1559 11.991307
12/31/86 1.1794 14.142547 8.78% 8.84% 9.75% 8.66% 135.28% 10.75%
12/31/87 0.9832 13.904952
12/31/88 1.1503 15.994867
12/31/89 1.1546 18.467673
12/31/90 1.0191 18.820405 10.69% 10.75% 11.07% 10.58% 76.80% 12.07%
12/31/91 1.1815 22.236309
12/31/92 1.0860 24.148632
12/31/93 1.1285 27.251731
12/31/94 0.9947 27.107297 21.25% 21.31% 21.66% 21.12% 22.75% 22.75%
12/31/95 1.2275 33.274207
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 5
International
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP + Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5/03/93 10.000000 15.41% 15.48% 15.80% 15.29% 51.38% 16.87%
12/31/93 1.2496 12.496000
12/31/94 1.0807 13.504427 10.73% 10.79% 11.10% 10.61% 12.10% 12.10%
12/31/95 1.1210 15.138463
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Small Cap
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP + Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4/30/94 10.000000 31.48% 31.56% 31.92% 31.34% 61.29% 33.18%
12/31/94 1.2126 12.126000 31.38% 31.44% 31.82% 31.24% 33.01% 33.01%
12/31/95 1.3301 16.128793
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Capital Appreciation
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP + Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4/30/94 10.000000 14.59% 14.67% 14.97% 14.46% 28.17% 16.04%
12/31/94 1.0453 10.453000 21.12% 21.18% 21.52% 20.98% 22.62% 22.62%
12/31/95 1.2262 12.817469
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Aggressive Growth
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP + Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/95 10.000000 25.78% 25.84% 26.10% 25.68% 26.95% 37.53%
12/31/95 1.2695 12.695000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
Global Contrarian
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Retirement Fund Fund
Year ROR Value TOP A TOP B TOP + Advantage Cumulative Annualized
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/95 10.000000 7.89% 7.95% 8.16% 7.80% 8.89% 12.05%
12/31/95 1.0889 10.889000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000073892
<NAME> OHIO NATIONAL VARIABLE ACCOUNT B
<SERIES>
<NUMBER> 1
<NAME> EQUITY
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 23,999,567
<INVESTMENTS-AT-VALUE> 31,692,108
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 31,692,108
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,042,677
<TOTAL-LIABILITIES> 1,042,677
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 910,030
<SHARES-COMMON-PRIOR> 734,939
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 30,649,431
<DIVIDEND-INCOME> 765,464
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 293,247
<NET-INVESTMENT-INCOME> 472,217
<REALIZED-GAINS-CURRENT> 334,966
<APPREC-INCREASE-CURRENT> 5,201,091
<NET-CHANGE-FROM-OPS> 6,008,274
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,700,464
<NUMBER-OF-SHARES-REDEEMED> 2,476,530
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000073982
<NAME> OHIO NATIONAL VARIABLE ACCOUNT B
<SERIES>
<NUMBER> 2
<NAME> MONEY MARKET
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 2,037,538
<INVESTMENTS-AT-VALUE> 2,037,538
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,037,538
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 79,612
<TOTAL-LIABILITIES> 79,612
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 112,654
<SHARES-COMMON-PRIOR> 142,529
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,957,926
<DIVIDEND-INCOME> 100,339
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 29,381
<NET-INVESTMENT-INCOME> 70,958
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 70,958
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,266,576
<NUMBER-OF-SHARES-REDEEMED> 1,617,117
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000073982
<NAME> OHIO NATIONAL VARIABLE ACCOUNT B
<SERIES>
<NUMBER> 3
<NAME> BOND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 3,207,396
<INVESTMENTS-AT-VALUE> 3,363,007
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,363,007
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 39,318
<TOTAL-LIABILITIES> 39,318
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 195,430
<SHARES-COMMON-PRIOR> 163,922
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 3,323,689
<DIVIDEND-INCOME> 143,904
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 29,494
<NET-INVESTMENT-INCOME> 114,410
<REALIZED-GAINS-CURRENT> 4,677
<APPREC-INCREASE-CURRENT> 328,653
<NET-CHANGE-FROM-OPS> 447,740
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 929,764
<NUMBER-OF-SHARES-REDEEMED> 480,497
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000073982
<NAME> OHIO NATIONAL VARIABLE ACCOUNT B
<SERIES>
<NUMBER> 4
<NAME> OMNI
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 18,914,961
<INVESTMENTS-AT-VALUE> 23,120,571
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 23,120,571
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 317,380
<TOTAL-LIABILITIES> 317,380
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 894,447
<SHARES-COMMON-PRIOR> 820,500
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 22,803,191
<DIVIDEND-INCOME> 567,491
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 229,636
<NET-INVESTMENT-INCOME> 337,855
<REALIZED-GAINS-CURRENT> 214,074
<APPREC-INCREASE-CURRENT> 3,286,859
<NET-CHANGE-FROM-OPS> 3,838,788
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,952,702
<NUMBER-OF-SHARES-REDEEMED> 2,153,931
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000073982
<NAME> OHIO NATIONAL VARIABLE ACCOUNT B
<SERIES>
<NUMBER> 5
<NAME> INTERNATIONAL
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 16,288,860
<INVESTMENTS-AT-VALUE> 17,877,407
<RECEIVABLES> 0
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