16:35 PM

Nationwide Delivers Strong Performance in 2015

Columbus, OH - Nationwide today reported total operating revenue of $26 billion for 20151, up 3 percent from 2014 driven by increased premiums and growth of customer assets under management. The continued growth supports the company’s position as one of the largest and strongest diversified insurance and financial services organizations in the U.S.

Nationwide delivered total sales of $42.9 billion across all product lines, up more than $3 billion from 2014. In its continued re-branding effort, the company leveraged its diverse product portfolio, financial stability and business relationships to enhance cross-selling opportunities and provide customers with more holistic product solutions. All major product lines grew over prior year, with strong growth momentum in life insurance, fixed annuities, retirement plans, commercial lines, and personal lines. Contributing to this growth, Nationwide's direct channel delivered double-digit growth as compared to 2014.

Nationwide delivered on its promise to protect members and business partners by paying more than $16.1 billion in claims and other benefits during the year.

Nationwide’s total net operating income increased to $1.2 billion1, driven by strong business performance across financial, personal and commercial line product segments. 

“Nationwide’s financial results for 2015 were strong, and we’re pleased with the direction we are headed as a company,” said Nationwide Chief Executive Officer Steve Rasmussen. “Great relationships are the hallmark of our company, and as we look ahead to 2016, we’re confident that we have the right mix of products and services to meet the diverse needs of our members and business partners now and in the future.”

“This year marked a time of significant change for Nationwide, yet our businesses continued to deliver solid results. We ended the year with a strong capital position,” said Chief Financial Officer Mark Thresher. “While we continue to make progress transforming our business, we are also keeping an eye on areas impacting current year results, including market volatility and other economic factors that continue to be a challenge, not just for Nationwide, but for the industry as a whole.”

Nationwide increased financial services product sales to $23.7 billion in 2015, up 14 percent over total sales in 2014. Nationwide’s financial services lines generated $1.1 billion in net operating income for the year.

Total direct written premium (DWP) for Nationwide’s property & casualty (P&C) lines grew 4 percent to $19.2 billion over the previous year, driven by growth across all major product lines. Nationwide’s P&C business reported $224 million in net operating income for the year.

As of Dec. 31, 2015, general account investments totaled $86.8 billion. Net investment income was $3.1 billion for the year. Total assets were $197 billion. Nationwide reported net income of $1.2 billion for the year.

Nationwide continued to strengthen its capital position with increases in both statutory surplus and policyholder equity during the year. Statutory surplus—a measure of financial strength and claims-paying ability as evaluated by regulators and rating agencies—was $15.1 billion, which is more than three times the amount required by regulators to cover the company’s obligations to customers. Total policyholder equity increased to $20.6 billion. 

Key Statistics

Total Operating Revenue
2015    $26.0 billion
2014    $25.3 billion

Total Sales
2015     $42.9 billion
2014     $39.3 billion

Claims and other benefits paid to members and partners
2015     $16.1 billion
2014     $15.5 billion

Net operating income
2015    $1.2 billion
2014    $1.1 billion

Year-end policyholder equity
2015    $20.6 billion
2014    $20.4 billion

Year-end statutory surplus
2015    $15.1 billion
2014    $14.9 billion

About Nationwide

Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.

[1] Nationwide analyzes operating performance using non-GAAP financial measures called “net operating income” and “net operating revenue,” which the company believes enhances understanding and comparability of its performance by highlighting its results from continuing operations and the underlying profitability drivers. Net operating income and net operating revenue exclude the impact of realized gains (losses) on sales of available-for-sale securities, certain hedging activities, other-than-temporary impairments, discontinued operations and extraordinary items, all net of taxes.