A.M. Best Assigns Rating to Nationwide Mutual's New Surplus Notes.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--March 31, 2004 A.M. Best Co. has assigned an "a" debt rating to the proposed $300 million surplus notes, due 2034, to be issued 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 (Columbus, OH). The rating outlook is stable. The financial strength ratings of A+ (Superior) of the primary property/casualty companies of the Nationwide Group (Nationwide) are unaffected. All existing debt ratings have been 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. . Additionally, the stable outlook on all of Nationwide's financial strength and debt ratings remains. The financial strength ratings of A+ (Superior) and A (Excellent) of Nationwide's affiliated life insurance companies and the debt ratings of Nationwide Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc. are also unaffected. The negative outlook on Nationwide's life insurance companies' financial strength and debt ratings remains. All companies listed above are located in Columbus, OH. Proceeds from the surplus notes issuance will be used to redeem the $300 million 7.5% 30-year surplus notes issued in 1994 and to fund other capital expenditures. Nationwide's 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. remains supportive of its current ratings, and A.M. Best expects the payment of interest on the surplus notes to come from earnings. The assigned debt rating is supported by Nationwide's strong capitalization and the value of the Nationwide franchise. These rating factors are derived from Nationwide's overall market knowledge, customer loyalty and efficient cost structure. The rating takes into account the diversified diversified (di·verˑ·s earnings stream provided through dividends from affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. , which include Nationwide Financial Services, Inc. and Nationwide Mutual's asset management operations. Nationwide ranks as the fourth-largest domestic property/casualty insurance company and is a top-10 writer of variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The following debt rating has been assigned with a stable outlook: Nationwide Mutual Insurance Company-- -- "a" on $300 million surplus notes, due 2034 The following debt ratings have been affirmed with a stable outlook: Nationwide Mutual Insurance Company-- -- "a" on $300 million 7.5% surplus notes, due 2024 -- "a" on $400 million 8.25% surplus notes, due 2031 -- "a" on $300 million 7.875% surplus notes, due 2033 For a list of A.M. Best's debt ratings, please visit http://www3.ambest.com/debtratings/. 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. |
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