Nationwide's CFO says he would anticipate some upward ratemovement from the insurance industry in the wake of SuperstormSandy.

“I think [companies] will step back and say, 'This is now twoyears in a row [that the Northeast has been hit by a storm],'” MarkThresher, the Columbus, Ohio-based insurer's CFO, tellsPC360. “They are going to think about their concentrationsin this region.”

Nationwide will join the industry in reassessing its exposure,he says, before it decides whether Sandy provides an opportunityfor growth in the Northeast or if the storm signals a need for rateincreases or a pull-back.

The company has received about 40,000 Sandy-related claims, butit is unclear how many of those will result in payment since it isexpected a lot of damages are the result of storm surge—anuncovered peril.

“This makes it difficult to predict amounts of losses,” Threshersays.

Nationwide's commercial-business insurance subsidiaries areexpecting Business Interruption claims to “be a big factor,”Thresher adds. Nationwide can also be paying for claims due tocommercial property and auto damages.

During the first nine months of 2012, Nationwide hasn't seenmuch rate increase in personal lines. Instead, says Thresher, ratesare increasing in lines of business that are growing the most: MainStreet commercial insurance, Excess & Surplus andAgribusiness.

The insurer found opportunity as a result of the drought thatgripped the Midwest this year. Though it does not insure crops,Nationwide was in position to take advantage of agriculturalshoppers as some insurers raised rates or pulled back from farmingrisk, Thresher says.

“We've also trained more of our producers how to sell[Agribusiness] products,” Thresher adds.

Q3, NINE-MONTH RESULTS

Nationwide returned to the black with a net profit of $378million during the third quarter, compared to a loss of $881million a year ago during the same period.

The insurer says it booked net operating income of $723 millionafter nine months compared to $375 million during the same time ayear ago.

Results were helped by low Catastrophe losses and businessgrowth—organically and by acquisition. P&C results includeHarleysville's results since May 1, when Nationwide's acquisition of Harleysville closed.

Year-over-year direct premiums written grew 9 percent to $12.2billion after nine months. Thresher says exposure growth played arole—a sign of some improvement in the economy.