NU Online News Service, Aug. 10, 3:16 p.m.EDT

A hardening market and exposure growth in Nationwide'scommercial lines segment has led to a 19 percent growth in policysales during the first half of 2012.

The Columbus, Ohio-based insurer says net income after sixmonths was $386 million, compared to $169 million a year ago whencatastrophe losses were a record-setting $1.5 billion.

This year weather-related losses were $850 million during thefirst six months, driven in large part by a windstorm through theMidwest and Mid-Atlantic states.

Nationwide says direct written premiums for the first half wereup more than 7 percent, to $7.9 billion, compared to the sameperiod a year ago.

“We have been getting rate increases, especially at ScottsdaleInsurance, our [excess and surplus] company,” says Mark Thresher,chief financial officer. “Exposures are growing as the economyslowly improves.”

Increases are mostly seen on renewal business; new businessremains under pressure by competition, he adds.

About $200 million in the growth of first-half direct writtenpremiums is attributable to the acquisition of Harleysville Mutual InsuranceCo., which closed on May 1.

The total consideration paid to Harleysville Group's publicstockholders was about $834 million and Harleysville, under thesame brand name, is now a part of Nationwide's property andcasualty independent agency business unit with Allied Insurance.

Thresher says the merger puts Nationwide in a better position inthe Northeast and Mid-Atlantic where Allied didn't havebusiness.

“It also brings us more of a commercial mix,” Thresher adds. Hesays a majority of Harleysville's book was commercial, whereasAllied's book consists mostly of personal insurance business.