AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the members of Nationwide Property and Casualty Group (Nationwide P&C Group). Concurrently, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of Nationwide Life Insurance Company and its subsidiaries, Nationwide Life and Annuity Insurance Company and Jefferson National Life Insurance Company. These companies are the key life/annuity subsidiaries of Nationwide Financial Services Inc. (NFS), and collectively known as Nationwide Life Group.

Additionally, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) of NFS and all of its existing Long-Term Issue Credit Ratings (Long-Term IRs). In addition, AM Best has affirmed the Long-Term IRs of “a-” (Excellent) of the surplus notes issued by Nationwide Mutual Insurance Company. Finally, AM Best has affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb” (Good) of Titan Insurance Company (Titan). The outlook of all these Credit Ratings (ratings) is stable. All companies are headquartered in Columbus, OH, unless otherwise specified. (See link below for a detailed listing of all the companies and ratings.)

The ratings of Nationwide P&C Group reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM). Following several years of material underwriting and operating losses, the group saw significant improvement in operating results through the first nine months of 2024 due to higher rates and selective non-renewals of unprofitable blocks of business. Additionally, the organization has implemented certain expense savings, which contributed to improved results. Nationwide P&C Group’s strategy is to reposition its personal and commercial lines of business toward profitability and put more focus on expanding its specialized products. While this strategy will reduce Nationwide’s footprint and weaken its market share in the near term, the brand recognition remains strong, and in the longer term, the organization intends to achieve profitable business growth in all P&C lines. The balance sheet assessment reflects Nationwide P&C Group’s very strong risk-adjusted capital position as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its well-managed, diverse investment portfolio. AM Best notes that the group’s overall liquidity and financial flexibility remains more than adequate, despite pressures within certain property/casualty lines of business, which have led to more moderate growth in capital in recent years.

The ratings of Nationwide Life Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate ERM. The group’s balance sheet assessment remains anchored by its risk-adjusted capitalization at the strongest level, as measured by BCAR. AM Best notes that Nationwide Life Group’s quality of surplus is somewhat lower given the usage of affiliated surplus notes, as well as captive insurers, which provide support of certain redundant reserving needs within the capital structure. However, the assessment acknowledges that the group has grown surplus at a rate well above the life industry average over the last five-year period. Nationwide Life Group’s operating performance continues to reflect its diverse product portfolio and geographic reach. Through the first three quarters of 2024, top line growth was favorable and exceeded company projections primarily by increased market demand for fixed products. Operating results, which are expected to remain strong through the end of 2024, have been a major source of earnings for the overall enterprise over recent years. The organization continues to benefit from its favorable market position among the leading providers of retirement plans, as well as being the top 10 carrier in core life and annuity markets. Several new large distribution arrangements contributed to robust growth over the last two years.

The ratings of Titan reflect its balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate ERM. Titan serves a focused target market with distinct dynamics for the benefit of the Nationwide enterprise.

A complete listing of Nationwide’s FSRs, Long-Term ICRs and Long-Term IRs also is available.

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