OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of the members of Nationwide Group (Nationwide). 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 IR). The outlook of these Credit Ratings (ratings) is stable.

In addition, AM Best has affirmed the Long-Term IRs of “a” (Excellent) of the surplus notes issued by Nationwide Mutual Insurance Company. Lastly, 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 these 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 reflect its balance sheet strength, which AM Best assesses as strongest, as well as its marginal operating performance, favorable business profile and appropriate enterprise risk management (ERM). These ratings also consider the breadth of the organization’s resources as reflected in the enterprise’s consolidated results.

Nationwide’s risk-adjusted capital remains more than supportive of its risk profile, and remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Additionally, this metric is stressed to include buffer positions against significant weather-related events and natural catastrophe-related losses. The overall balance sheet assessment reflects a favorable assessment of growth and quality of surplus, as well as the organization’s financial flexibility. Nationwide’s ratings also reflect underwriting results that are consistently weaker than peers and industry averages in the core property/casualty lines of business. While Nationwide has implemented a wide range of strategic and operational initiatives to address underwriting performance over the past few years, the benefit of these plans will take some time to impact results. Additionally, the industry as a whole has been challenged by inflationary pressures over the past 12-month period. AM Best notes despite these headwinds, revenue growth has been strong, driven by strong renewals within personal lines and favorable premiums trends in core lines of business. Strong investment results have bolstered underwriting performance over the past several 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, as well as the organization’s overall financial strength and flexibility. AM Best notes that the 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 growth surplus at a rate well above the life industry average over the past 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 2022, top line growth across core products was hampered by volatility of financial markets, and operating results are expected to fall modestly short of expectations as a result of macroeconomic pressures. The organization continues to benefit from its favorable market position among the leading providers of retirement plans, as well as the top 10 carrier in its core life and annuity markets.

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 Group’s FSRs, Long-Term ICRs and Long-Term IRs also is available.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.