Fitch Affirms Nationwide Life's Ratings.Business Editors CHICAGO--(BUSINESS WIRE)--Feb. 22, 2001 Fitch affirms the `AA+' insurer financial strength rating of Nationwide Life Insurance Company (NLIC NLIC National Lead Information Center NLIC National Landslide Information Center NLIC National Life Insurance Company NLIC National Lenders' Insurance Council ) and Nationwide Life & Annuity Insurance Company (NLAIC). NLIC and NLAIC (jointly referred to as Nationwide Life) are the primary operating subsidiaries 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. (NFS (Network File System) The file sharing protocol in a Unix network. This de facto Unix standard, which is widely known as a "distributed file system," was developed by Sun. See file sharing protocol and WebNFS. NFS - Network File System ), which is ultimately 81.5% owned 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). The Rating Outlook for NLIC and NLAIC is Stable. Nationwide Life's ratings are supported by a strong competitive position, as witnessed by a top five market share in variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. , double-digit growth in sales across all product lines, and continued solid profitability. The company also maintains a high-quality balance sheet with excellent liquidity characteristics, while liabilities show better-than-average stability given the focus on qualified markets. Balanced against these strengths is the highly competitive nature of the retirement savings market, currently reflected in a rising surrender rate. Within the Nationwide Enterprise, Fitch views both the life and property/casualty lines of business as core, and able to operate independently. However, Nationwide Life does benefit from its parentage PARENTAGE. Kindred. Vide 2 Bouv. Inst. n. 1955; Branch; Line. through enhanced financial flexibility. For example, Nationwide Life's competitive profile was improved through the acquisition of Gartmore Investment Management plc by Nationwide Mutual. Specifically, Nationwide Life is expected to benefit from this acquisition through the addition of Gartmore's funds to its variable products. At year-end 2000, NFS's consolidated debt and trust preferred securities-to-total capital was approximately 17%, which Fitch believes is conservative. In addition, management's long-term financial leverage targets at under 25% are considered reasonable for the current ratings. Fixed-charge coverage fixed-charge coverage The number of times that a firm's operating income exceeds its fixed payments. Fixed-charge coverage is a measure of a firm's ability to meet contractually fixed payments, with high coverage indicating significant flexibility for making was also excellent at 13 times (x). Entity/Issue/Type Action Rating/Outlook Nationwide Life Insurance Company Nationwide Life & Annuity -- Insurer financial strength Affirmed `AA+'/Stable. |
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