NU Online News Service, May 10, 2:53 p.m.EDT

Nationwide Insurance says its 2011 first-quarter net incomeincreased 29 percent to $512 million on higher net operating incomein the property and casualty and financial services segments.

Overall, the company recorded a 10 percent increase infirst-quarter operating income to $476 million.

Mark Thresher, chief financial officer, says the Columbus,Ohio-based insurer is seeing improvement in new P&C businessover the last six months, which Nationwide believes “is a verypositive sign for growth over the next several quarters.”

Thresher says Nationwide has “continued to see momentum” itobserved at the end of 2010 in personal and commercial lines as theeconomy appears to be improving. In reporting results for the yearin February, Nationwide saw some positive movement in commercial exposure.

P&C net operating income was up 17 percent to $338 millioncompared to the first quarter in 2010 on lower claims and betterinvestments.

However, Thresher says Nationwide has received more than 50,000claims in state affected by severe mid-April weather.Nationwide is the North Carolina's largest writer of personallines insurance, according to Highline Data. The state was battered bytornadoes the weekend of April 15.

Nationwide’s P&C operating income next quarter “will bechallenged due to a surge in claims driven by severe spring weatheracross most of the country,” Thresher adds.

Premiums from direct and affinity lines grew more than 15percent during the first three months of 2011. Thresher saysNationwide “worked hard on marketing efforts” and is “seeing goodresults.”

Net operating income from the financial-services business grew12 percent to $128 million during the first quarter.

Investment income was $849 million compared to $790 million forthe 2010 first quarter.