AM Finest Affirms Credit score Scores of Nationwide Mutual Insurance coverage Firm and Its Key Working Subsidiaries

OLDWICK, N.J., December 22, 2021–(BUSINESS WIRE)–AM Finest has affirmed the Monetary Power Ranking (FSR) of A+ (Superior) and the Lengthy-Time period Issuer Credit score Ranking (Lengthy-Time period ICR) of “aa-” (Superior) of the members of Nationwide Group (Nationwide). Concurrently, AM Finest has affirmed the FSR of A+ (Superior) and Lengthy-Time period ICR of “aa-” (Superior) of Nationwide Life Insurance coverage Firm and its subsidiaries, Nationwide Life and Annuity Insurance coverage Firm and Jefferson Nationwide Life Insurance coverage Firm. These corporations are the important thing life/annuity subsidiaries of Nationwide Monetary Companies Inc. (NFS), and collectively generally known as Nationwide Life Group. Moreover, AM Finest has affirmed the Lengthy-Time period ICR of “a-” (Wonderful) of NFS and all of its present Lengthy- and Brief-Time period Situation Credit score Scores (Lengthy-Time period IR; Brief-Time period IR). AM Finest additionally has affirmed the FSR of A- (Wonderful) and the Lengthy-Time period ICR of “a-” (Wonderful) of Harleysville Life Insurance coverage Firm (HLIC). The outlook of those Credit score Scores (rankings) is secure.

As well as, AM Finest has affirmed the Lengthy-Time period IRs of “a” (Wonderful) of the excess notes issued by Nationwide Mutual Insurance coverage Firm (Nationwide Mutual). Lastly, AM Finest has affirmed the FSR of B++ (Good) and the Lengthy-Time period ICR of “bbb” (Good) of Titan Insurance coverage Firm (Titan). The outlook of those rankings is secure. All corporations are headquartered in Columbus, OH, except in any other case specified. (See hyperlink beneath for an in depth itemizing of all the businesses and rankings.)

The rankings of Nationwide replicate its steadiness sheet power, which AM Finest assesses as strongest, in addition to its marginal working efficiency, favorable enterprise profile and acceptable enterprise threat administration (ERM). These rankings additionally think about the breadth of group’s sources as mirrored within the consolidated outcomes of the enterprise.

Nationwide’s risk-adjusted capitalization stays greater than supportive of its threat profile, and is on the strongest stage, as measured by Finest’s Capital Adequacy Ratio (BCAR). This included buffer positions towards important weather-related occasions and pure catastrophe-related losses. The general steadiness sheet evaluation additionally considers the expansion and high quality of surplus, in addition to the group’s monetary flexibility. Partially offsetting that is the affect of volatility of reserves in sure traces of enterprise. Nationwide’s rankings additionally replicate underwriting outcomes which are persistently weaker than friends and business averages in its core property/casualty traces of enterprise. Whereas Nationwide has applied a variety of strategic and operational initiatives to deal with the underwriting efficiency, the advantages of those plans have but to realize appreciable traction. AM Finest notes that regardless of this, income progress has been robust and working outcomes are on monitor to be favorable to prior 12 months via year-end 2021. Robust funding outcomes have bolstered underwriting efficiency over the previous a number of years.

The rankings of Nationwide Life Group replicate its steadiness sheet power, which AM Finest assesses as strongest, in addition to its robust working efficiency, favorable enterprise profile and acceptable ERM.

The group’s steadiness sheet power evaluation stays anchored by its risk-adjusted capitalization on the strongest stage, as measured by BCAR, in addition to the group’s total monetary power and suppleness. AM Finest notes that the group’s high quality of surplus is considerably decrease given the utilization of affiliated surplus notes and captive insurers, which give help of sure redundant reserving wants inside the capital construction. Nationwide Life Group’s working efficiency continues to replicate its various product portfolio and geographic attain, with favorable gross sales progress throughout core merchandise and robust working outcomes reported via the primary three quarters of 2021. The group continues to learn from its market-leading place amongst retirement plan suppliers, in addition to high 10 service in its core life and annuity markets.

The rankings of HLIC replicate its steadiness sheet power, which AM Finest assesses as very robust, in addition to its marginal working efficiency, restricted enterprise profile and acceptable ERM. HLIC stopped writing new enterprise in 2014 and its legacy enterprise continues to run off as anticipated.

The rankings of Titan replicate its steadiness sheet power, which AM Finest assesses as sufficient, in addition to its marginal working efficiency, restricted enterprise profile and acceptable ERM.

The rankings replicate the help offered by the Nationwide group throughout all facets of Titan’s short-term and long-term operations on a day-to-day foundation. Titan serves a targeted goal market with distinct dynamics for the advantage of the Nationwide enterprise.

An entire itemizing of Nationwide Group’s FSRs, Lengthy-Time period ICRs and Lengthy- and Brief-Time period IRs additionally is accessible.

This press launch pertains to Credit score Scores which were printed on AM Finest’s web site. For all score info referring to the discharge and pertinent disclosures, together with particulars of the workplace answerable for issuing every of the person rankings referenced on this launch, please see AM Finest’s Latest Ranking Exercise net web page. For extra info relating to the use and limitations of Credit score Ranking opinions, please view Information to Finest’s Credit score Scores. For info on the correct use of Finest’s Credit score Scores, Finest’s Preliminary Credit score Assessments and AM Finest press releases, please view Information to Correct Use of Finest’s Scores & Assessments.

AM Finest is a worldwide credit standing company, information writer and information analytics supplier specializing within the insurance coverage business. Headquartered in the USA, the corporate does enterprise in over 100 international locations with regional workplaces in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico Metropolis. For extra info, go to www.ambest.com.

Copyright © 2021 by A.M. Finest Ranking Companies, Inc. and/or its associates. ALL RIGHTS RESERVED.

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Kate Steffanelli
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Christopher Sharkey
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Jim Peavy
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+1 908 439 2200, ext. 5644
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