A.M. Best Affirms Ratings of Nationwide Group; Assigns Rating to Contingent Surplus Notes.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of A+ (Superior) of Nationwide Group (Nationwide). This rating applies to Nationwide's four property/casualty pool members led by Nationwide Mutual Insurance Company Nationwide Mutual Insurance Company & Affiliated Companies is a group of large U.S. insurance and financial services companies based in Columbus, Ohio. History Beginnings as Farm Bureau Mutual (Nationwide Mutual) (both of Columbus, OH) and its 22 reinsured affiliates. In addition, A.M. Best has assigned an issuer credit rating of "aa-" to Nationwide Mutual. Concurrently, A.M. Best has affirmed the debt ratings of "a" on Nationwide Mutual's existing surplus notes, and has assigned a debt rating of "a" to Nationwide Mutual's $400 million contingent surplus notes. The outlook for all the above ratings is stable. The rating of Nationwide is primarily based upon its strong capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and consistently improved operating results. Nationwide's core book of business has generated strong underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. profitability in recent years due to enhanced underwriting discipline, increased rates and numerous operating efficiencies implemented by management. In addition, Nationwide benefits from a diversified product offering that includes standard and specialty personal lines, surplus lines and commercial lines of business. The rating also recognizes Nationwide's market leadership position within the property/casualty industry, its multiple distribution channels and its decentralized de·cen·tral·ize v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es v.tr. 1. To distribute the administrative functions or powers of (a central authority) among several local authorities. operational structure that provides superior service to agents and policyholders. The financial strength ratings of A- (Excellent) and B+ (Very Good) of Nationwide Insurance Company of Florida (NICOF) and Nationwide Indemnity Company (NIC (1) (Network Interface Card) See network adapter. See also InterNIC. (2) (New Internet Computer) An earlier Linux-based computer from The New Internet Computer Company (NICC), Palo Alto, CA. ) (both of Columbus, OH), respectively, remain under review with negative implications. These ratings will remain under review pending further discussions with management regarding recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. plans for both entities. Currently, the financial strength rating of A+ (Superior) of the Nationwide Financial Services' core life insurance subsidiaries has a negative outlook. For a complete listing of Nationwide Group's financial strength and debt ratings, please visit www.ambest.com/press/120602nationwide.pdf. For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debt. For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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