Nationwide Posts Solid Q2 Net Income Gain on Lower Losses

Nationwide says its 2013 second-quarter net income was $657 million, a considerable turnaround from 2012's second-quarter net loss of $122 million.

The Columbus, Ohio-based insurer benefitted from a reduction in weather-related claims as $547 million in net realized investment gains, compared to a loss of $89 million in last year's second quarter.

Chief Financial Officer Mark Thresher points out to PC360 that, beyond lower weather losses, the insurer saw improvements in general profitability. He notes that non-weather losses also decreased, and added that commercial-lines business has been “growing nicely for us,” as the company continues to get rate as well as exposure growth in that area.

He attributes the commercial-lines growth to both the continued favorable rate environment as well as an improving economy that has helped grow the exposure base.

For personal lines, Thresher says while homeowners has seen rate increases over the last couple of years, due in large part to weather-related losses, auto has remained competitive. He says Nationwide's strategy involves attracting customers to a multi-product relationship through multiple channels — independent agents, Nationwide agents and direct.

Regarding the insurer's overall strategy for the remainder of this year and beyond, Thresher says Nationwide remains committed to growing across the board in a diversified way. He points to the results for the quarter and half-year, noting that the company's operating income was split almost evenly between its property and casualty business and its financial services business.

For the second quarter, operating income was $332 million, of which $113 million came from P&C and $185 million from financial services. In 2012's second quarter, operating income was $99 million a year ago. 

For the half-year, operating income was $749 million, with $344 million coming from P&C and $367 million coming from financial services. Operating income was $373 million for the first half of 2012.