A.M. Best Affirms and Assigns Ratings to Nationwide Group; Removes Nationwide Indemnity Company and Crestbrook Insurance Company from Under Review.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) of the Nationwide Group (Nationwide) and its four property/casualty pool members and 22 reinsured affiliates. In addition, A.M. Best has affirmed the issuer credit rating (ICR) of "aa-" of Nationwide Mutual Insurance Company (Nationwide Mutual) and has assigned the same ICRs to Nationwide and all of its remaining subsidiaries. Concurrently, A.M. Best has affirmed the debt ratings of "a" on Nationwide Mutual's $1.1 billion in existing surplus notes and its $400 million in contingent surplus notes. The ICR of Nationwide Financial Services, Inc. (NYSE: NFS) and the FSRs of its three life/health subsidiaries are unchanged by these actions. The outlook for all the above ratings is stable. All companies are domiciled in Columbus, OH, unless otherwise specified. (See link below for a detailed list of ratings.)

Nationwide's ratings reflect its strong capitalization and improved core operating results attributable to an enhanced underwriting discipline, increased rates and numerous operating efficiencies implemented by management. In addition, the group benefits from a diversified product offering that includes standard and specialty personal, commercial and surplus lines of business.

The ratings further recognize Nationwide's market presence, multiple distribution channels and decentralized operational structure that provides superior service to agents and policyholders.

A.M. Best has also downgraded the FSR to B+ (Very Good) from A- (Excellent) and the ICR to "bbb-" from "a-"of Nationwide Indemnity Company (NIC). The ratings have been removed from under review and assigned a stable outlook. NIC is the run-off entity for the group's asbestos and environmental (A&E) claims. Additionally, A.M. Best has removed the FSR of A- (Excellent) of Crestbrook Insurance Company (Crestbrook) from under review, assigning it a rating of NR-3 (Rating Procedure Inapplicable).

These ratings of NIC reflect the decline in capitalization that was partially offset by the financial support provided by the company's ultimate parent, Nationwide Mutual. Crestbrook has been assigned a rating of NR-3 in consideration of its current dormant status.

For a complete list of Nationwide Group's FSRs, ICRs and debt ratings, visit www.ambest.com/press/050308nationwide.pdf.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

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 www.ambest.com.