Nationwide Reports Solid Performance in 2016
Columbus, OH - Nationwide reported $43 billion in total sales, nearly $27 billion in operating revenue and just shy of $1 billion in net operating income in its 2016 annual report, released today. The company paid $17.2 billion in claims and other benefits to policyholders.
Nationwide’s performance was highlighted by its homeowners, small commercial, agribusiness and financial services product lines. The results reflect an ongoing focus on building a diverse set of offerings across financial services, commercial and personal lines.
“Nationwide’s business breadth and depth once again proved to be an asset as we achieved another year of positive momentum in our drive to become a stronger company,” said Nationwide CEO Steve Rasmussen. “It’s an exciting time for Nationwide. We’re well on our way to becoming a truly different American company — one that meets the needs of the many sides of its members, communities and partners as a part of its core mission.”
“Nationwide delivered solid results in 2016, driven by our diverse portfolio and financial strength,” said Nationwide Chief Financial Officer Mark Thresher. “The insurance and financial services industry faced a challenging 2016. Many businesses — including Nationwide — felt the pressures of prolonged low interest rates, equity market volatility, auto loss trends and new legislation. Our diverse set of product offerings is a strategic advantage that differentiates Nationwide from competitors and helped us achieve overall profitable growth in a challenging environment.”
The company’s investment portfolio also performed well with Nationwide ending the year in a strong capital position. Nationwide’s investment portfolio grew to $96.6 billion, up from $86.8 billion at the end of 2015. Total policyholders’ equity grew to $21.8 billion, up from $20.6 billion at the end of 2015. Statutory surplus—a measure of financial strength and claims paying ability—increased to $15.5 billion, more than three times the amount required by regulators to cover Nationwide’s obligations to its customers.
The company’s primary rating agencies — A.M. Best, Moody’s and Standard & Poor’s — affirmed Nationwide’s financial strength and credit ratings in 2016, citing its strong capital position, diversified product offerings and other key factors.
“Our mission of protecting what matters most to our members guides us to be intentional in our evolution,” stated Rasmussen. “Over the years, the Nationwide values have been a constant and are at the heart of our company. Those are beliefs that we’ve followed since our founding, and they are critical in building the relationships that have allowed Nationwide to grow into a Fortune 100 company.”
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.