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

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

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

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

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

P&C net operating income was up 17 percent to $338 million compared to the first quarter in 2010 on lower claims and better investments.

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

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

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

Net operating income from the financial-services business grew 12 percent to $128 million during the first quarter.

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

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