Echoing Moody’s, AM Best shifts Nationwide’s P&C business outlook to “positive”
AM Best announced today that it has changed its outlook for Nationwide’s P&C business to “positive” from “stable.” The rating agency also affirmed its A (Excellent) rating for Nationwide Mutual Insurance Company and Nationwide’s P&C affiliates, and an A+ (Superior) rating for Nationwide Life Insurance Company (NLIC), its subsidiary financial services businesses, with a “stable” outlook.
“AM Best’s outlook is a validation of the incredible work Nationwide’s P&C associates and distribution partners have been engaged in over the last several years,” said Mark Berven, President & COO, Nationwide Property & Casualty. “This is now the second rating agency outlook improvement in recent months, and our focus on the customer through an enhanced claims experience, data-informed underwriting and strong governance is how we will continue to operate.”
AM Best is the world’s largest credit rating agency specializing in the insurance industry. The agency’s decision follows a similar decision from Moody’s Ratings in October that also changed Nationwide’s P&C business outlook from “stable” to “positive.”
“The positive outlooks reflect Nationwide P&C Group’s improving underwriting and operating performance, which has benefited from corrective actions implemented by management in recent years,” AM Best noted. “This has resulted in a stronger and more diversified business profile which provides long-term foundation for earnings stability and organic surplus growth.”
Nationwide’s financial services business also earned affirmation from AM Best. The ratings agency singled out the NLIC’s balance sheet, “which AM Best assesses as strongest,” its favorable business profile and its operating performance strength.
“[NLIC] pursues both organic and non-organic diverse product growth across the life, annuity and accident and health lines with most exceeding earnings estimates and targeted capital returns,” AM Best advised. “The group continues to exercise advanced capital and risk management programs that are aligned with being an industry leader.”
For more information about Nationwide and Nationwide’s ratings, visit www.nationwide.com or Company Ratings.