Nationwide
2016 Annual Report
For your many sides
  • For your want to know about Nationwide side.

    Life has many sides — personal, professional, financial and planning for the future — and consumers need a trusted partner to help grow and protect those sides. Who can they turn to? Nationwide. Because, from business insurance to retirement guidance, no other financial services company has the breadth and depth of products and services that Nationwide does.


  • A letter from our CEO

    Serving the many sides of our members.


    Steve Rasmussen, Chief Executive Officer

    Nationwide’s future is stronger than ever as we continue to anticipate and adapt to meet the needs of the many sides of our members. 

    Our evolution from a regional auto insurer to a premier financial services, business and personal solutions company didn’t happen by chance. Rather, it happened because our members had new and more complex needs and we flexed to serve them. In 2016, Nationwide focused on how the breadth of our solutions can provide greater value to our members as we became an even more integrated company.

    While we continued to position our business to be more efficient in 2016, we also experienced the effects of a constantly changing environment. We confidently faced challenging market conditions with auto trends, low interest rates and regulatory changes. During this time, Nationwide’s business breadth and depth once again proved to be an asset as we achieved another year of positive momentum in our drive to become a stronger company. 

    Nationwide delivered solid performance in many of our businesses in 2016, highlighted by homeowners, small commercial, agribusiness and a majority of our financial services product lines. We also welcomed new partners, enhanced digital capabilities as well as invested in IT and other infrastructure updates that make it easier for members and partners to do business with us. 

    Our mission of protecting what matters most to our members guides us to be intentional in our evolution. Over the years, the Nationwide values have been a constant and are at the heart of our company. Those are beliefs that we’ve followed since our founding, and they are critical in building the relationships that have allowed Nationwide to grow into a Fortune 100 company. We want to make a difference in the lives of our members and their communities, and we have proudly done so since 1926. In short, when relationships matter, Nationwide wins.

    It’s an exciting time for Nationwide. We’re making solid gains and are well on our way to becoming a truly different American company — one that meets the needs of the many sides of its members, communities and partners as a part of its core mission.

    Steve Rasmussen
    Chief Executive Officer
    Nationwide

  • For your strong and stable side.


    We are a Fortune 100 Company

    $43 billion in total sales/direct written premium; $26.9 billion in operating revenue

    $910 million in net operating income; $209.8 billion in total assets



    Fortune World’s Most Admired Companies®; Fortune 100 Best Companies to Work For®; Fortune 50 Best Workplaces for Diversity®



    A+ A.M. Best (received 10/17/2002 | affirmed 7/7/2016)

    A1 Moody’s (received 3/10/2009 | affirmed 7/21/2016)

    A+ Standard & Poor’s (received 12/22/2008 | affirmed 4/22/2016)


    $17.2 billion: paid in claims and other benefits to members in 2016

    Nearly $400 million: contributed to nonprofit organizations by the Nationwide Foundation since 2000


  • For your many sides, there’s Nationwide.

    We began in 1926 when a group of farmers joined together to get fair rates on auto insurance. Over the past 90 years our portfolio has grown dramatically. Today, we help individuals and families plan for the future and help protect what matters most.


    Financial Services: Helping America prepare for and live in retirement.

    Nationwide financial services: Individual Life, Annuities, Retirement Plans, Corporate Life, Mutual Funds, Banking; $23.5 billion in sales

    #1 writer of corporate life1; 9th largest writer of variable annuities3; $6.9 billion: total assets — bank; 8th largest life insurer2; #1 in 457 plans based on number of plans4; $61 billion in assets under management — mutual funds; #8 provider of defined contribution plans4


    Commercial Lines: Helping business owners protect their life’s work.

    Nationwide commercial lines: Standard Commercial, Farm and Ranch, Commercial Agribusiness, Excess and Surplus/Specialty; $7.8 billion in total direct written premium

    #1 total small business insurer5; 2nd largest domestic specialty commercial lines insurer6; #1 writer of farm and ranch6; 7th largest commercial lines insurer6


    Personal Lines: Helping individuals and families protect what’s most important.

    Nationwide personal lines: Standard Auto, Homeowners and Renters, Pet, Sport Vehicles, Personal Liability; $11.7 billion in total direct written premium

    #1 pet insurer7; 7th largest homeowners insurer6; 8th largest auto insurer6

  • For your big-hearted side.

    At Nationwide, we create lasting change in our communities with a focused approach combining philanthropy, volunteerism and workplace giving. But what really sets us apart from other companies is the dedication of our associates and the deep relationships with our national partners that make a real impact across the country.


    Nationwide Childrens Hospital

    $30 million

    Grants committed by the Nationwide Foundation since 2014 for the creation and operation of the Nationwide Foundation Pediatric Innovation Fund

    For more than 60 years, Nationwide and the Nationwide Foundation have been working with Nationwide Children’s Hospital to help ensure every child has access to quality medical care.

    United Way

    $9.6 million

    Pledged to the United Way by our associates, partners and retirees in 2016

    We’re proud to say that our associates have been giving to United Way since our first workplace campaign in 1951. Today, almost 70% of our associates contribute to benefit local United Ways across the country.

    American Red Cross

    $14.3 million

    Contributed by the Nationwide Foundation to American Red Cross disaster relief since 2000

    For more than 70 years, Nationwide and the American Red Cross have partnered together to help communities across the country through blood donation and disaster relief. Nationwide associates give around 14,000 pints of blood annually, benefiting approximately 42,000 lives.

    Feeding America

    4.2 million

    Meals raised by Nationwide associates in 2016 for Feeding America member food banks1

    The Nationwide Foundation supports Feeding America, its National Produce Program and 22 of its member food banks across the nation, granting more than $10.9 million since 2000. 

  • More ways we show we care.


    Make Safe Happen

    Accidental injuries are the leading cause of death among children1 and nearly 50 percent of these accidents happen at home2. In partnership with our Make Safe Happen Advisory Council — an esteemed group of injury prevention and child safety experts — we’re setting out to reduce childhood injuries and deaths in the U.S. by 50 percent by the year 2020. 

    Learn more at MakeSafeHappen.com.

    Associates Helping Associates

    The Associates Helping Associates program is a way for our associates to support each other during times of extreme financial hardship resulting from a disaster or personal tragedy. The program, operated by a third-party nonprofit organization, provides associates with financial assistance up to $3,000 for food, shelter and other basic needs.

    Nationwide Volunteer Network

    By partnering with VolunteerMatch, a national organization that matches individuals with volunteer opportunities, Nationwide makes it easy for associates to search and connect with organizations that suit their unique interests. Through the network, associates can earn Volunteer Rewards of paid time off and a grant from the Nationwide Foundation for their qualified organization.

  • Nationwide 2016 Volunteer of the Year


    In 2008, when Barbara Davies experienced the unthinkable loss of her son, she never imagined she’d have to relive that heartbreak just four years later. Roy Davies Jr. was 20 years old when he died unexpectedly from an undiagnosed heart condition. In 2012, his younger brother Taylor, 15, passed away from an undiagnosed blood disorder. 

    For Barbara, a claims manager for the Nationwide National Catastrophe team, and her husband, Roy Sr., there were simply no words to describe the anguish. The couple turned to The Compassionate Friends for support, guidance, shoulders to cry on — anything to help them work through their grief. And then, over time — and in honor of their sons — they began to offer the same for other families in need.

    The Compassionate Friends has more than 600 chapters in the U.S. and abroad; each chapter is run by volunteers whose purpose is to help others through the life changing catastrophe of losing a child. 

    As leaders of the organization’s Nashville chapter, the Davies coordinate the group’s efforts to offer comfort to parents, grandparents and siblings suffering a recent loss. 

    Barbara often uses vacation time to arrange programming, write notes of appreciation to donors and attend and speak at meetings and conferences — traveling at her own expense.

    As Nationwide’s 2016 Volunteer of the Year, Barbara earned a $5,000 grant for The Compassionate Friends.

  • Partnering for success.


    Nationwide has a long history of serving the retirement planning needs of America’s workers and, in late 2016, the city of Des Moines selected Nationwide as its exclusive retirement plan provider. Consolidating from nine providers to one, Nationwide will oversee recordkeeping, marketing and educational services for the plan’s 1,800 participants and $165 million in assets. 

    Moving participants to a single provider delivers many benefits, including lower administrative and investment costs, more efficient plan administration and an improved participant experience. 

    “We’re excited about our partnership with Nationwide and the enhanced value and service we’ll provide to participants,” said James Wells, human resources director for the city of Des Moines. “The company’s hands-on service model and integrated offerings further support our commitment to delivering high-quality participant experiences.”

    Nationwide partnered with local leadership and multiple internal teams to show how the company’s participant service, plan sponsor support and proven commitment to the community benefit the city and its participants. 

    “This truly was a collaborative effort that highlights the importance of strong partnerships, both inside and outside the walls of our business,” said Steve Ebert, institutional sales executive at Nationwide. “We look forward to deepening our relationship with the city of Des Moines and to helping serve the retirement needs of its employees.”



    Want to know more?

    Learn more about how Nationwide helps American’s workers prepare for and live in retirement 

  • Growing stronger together.


    Nationwide and SchoolsFirst Federal Credit Union — the largest credit union in California and the fifth largest in the country — have partnered together for the past 13 years to offer a combination 401(a)/403(b)/457 retirement package to teachers and school employees in 205 school districts and more than 10 counties in California. 

    Known as SchoolsFirst’s “Retirement Builder Plan,” the plan has $900 million in assets and 22,039 member accounts. 

    “I view our partners at SchoolsFirst as an extension of the Nationwide family. I think they’d say the same thing about us,” said Ben Bates, client acquisition director for Nationwide. “We trust and respect each other’s ideas and input as we work toward a common goal of serving our members and growing.”

    What began as a startup plan with an initial deposit of $36,000 turned into significant growth for SchoolsFirst during the past decade. They surpassed a half-billion dollars in assets for the plan in 2013 and are on their way to reaching a record $1 billion.

    SchoolsFirst attributes the growth and success of their business to a steadfast commitment to their members, which has also helped the partnership with Nationwide flourish over the years.

    “Since we first opened our doors in 1934, our business has been rooted in the philosophy of people helping people. Our members are at the center of everything we do,” said Carol Rose, vice president at SchoolsFirst. “Nationwide understands the importance of putting its members first, and they’ve helped us offer retirement solutions that our members need and value.” 




  • Getting back to business.


    “The town too tough to die.”

    That’s the motto for Pilger, a rural village in Nebraska with a population of 352. Two years ago, that motto was put to the test when two tornadoes touched down almost simultaneously a mile apart, devastating about 75 percent of the town. 

    “I knew what a tornado could do, but you never think it would hit your place,” said Dan Oswald, a Nationwide member who lost his seed business. Fortunately, with the help of two Nationwide associates and an independent agent, Dan’s insurance claim was processed before the governor even landed to declare a state of emergency. Since then, the seed dealer has rebuilt and, due to business growth, increased the square footage of his facility by 66 percent. 

    Not far from Dan’s seed business was the town’s largest employer, the Farmers Cooperative, whose grain storage and agronomy facilities — and the town’s only convenience store — also had been reduced to a pile of rubble. 

    Nationwide’s agribusiness division was on-site the day after the storm to assess the damage and help get the co-op back to business. By the end of the week, the co-op had a $1 million check in hand to cover immediate business expenses, and the reconstruction of new facilities was underway. By setting up essential equipment, the co-op was able to meet the demands of the fall agronomy season. And, within six months, co-op employees were able to move into their new office. Later on, construction was completed on a new grain storage facility and convenience store. 

    “Our claims adjuster worked hard to get us back up and running quickly,” said Aaron Becker, general manager of the Farmers Cooperative. “Today, we have brand new, state-of-the-art facilities and we’re stronger than ever.” 




  • Making it personal.


    For many years, William Carleton has protected his family with life insurance through Nationwide. In 2016, when William’s condo association returned to Nationwide for its commercial insurance, he decided it might be time to make a switch as well. 

    Having spent most of his career in commercial real estate, William knew all there was to know about business insurance. But personal lines was another story. He and his wife, Patricia, sat down with their local agent to learn about the offerings available through Nationwide, among other carriers. 

    “I wasn’t familiar with any of it, and our local agent helped us figure out what we needed,” said Carleton. “We chose Nationwide for our home, auto and personal liability insurance because they delivered the best value and they’re a great company. Nationwide has done a lot in our community over the years, and that’s very important to us.” 

    As president of the condo association, William has many opportunities to spread the word about Nationwide to others in the development. And, he’s happy to do so. 

    “I tell people about the personal service I receive from Nationwide,” said Carleton. “It feels good to do business with them.” 




  • Nationwide delivered solid results in 2016, driven by our diverse portfolio and financial strength.


    The insurance and financial services industry faced a challenging 2016. Many businesses — including Nationwide — felt the pressures of prolonged low interest rates, equity market volatility, standard auto loss trends and new legislation.

    Despite the tough environment, Nationwide drove $43 billion in total sales, nearly $27 billion in operating revenue and just shy of $1 billion in net operating income. These results reflect an ongoing focus on building a diverse set of offerings across financial services, commercial and personal lines. 

    During the year, we took the opportunity to further expand our product portfolio through the acquisition of Jefferson National. We’re excited about the opportunities ahead of us as we combine forces with this leading financial services firm. 

    Additionally, our primary rating agencies — A.M. Best, Moody’s and Standard & Poor’s — affirmed Nationwide’s financial strength and credit ratings, citing our strong capital position and diversified product offerings, among other key factors. 

    Thank you to our members and partners for allowing us to serve you for the past 90 years. We look forward to continuing the valued relationships we have with you for many years to come. 


    Mark Thresher
    Chief Financial Officer
    Nationwide

  • For your love of numbers side. Total sales — 2012: $34.4 billion; 2013: $36.9 billion; 2014: $39.3 billion; 2015: $42.9 billion; 2016: $43.0 billion; Net operating income — 2012: $0.74 billion; 2013: $1.35 billion; 2014: $1.12 billion; 2015: $1.23 billion; 2016: $0.91 billion; Operating revenue — 2012: $22.4 billion; 2013: $23.9 billion; 2014: $25.3 billion; 2015: $26.0 billion; 2016: $26.9 billion; Total assets — 2012: $168.3 billion; 2013: $183.2 billion; 2014: $195.2 billion; 2015: $197.1 billion; 2016: $209.8 billion

  • This is what financial stability looks like.

    Capital strength

    Nationwide’s capital position remains strong. Statutory surplus — a measure of financial strength and claims-paying ability evaluated by regulators and rating agencies — increased to $15.5 billion. Nationwide maintains more than three times the amount of statutory surplus required by regulators to cover its obligations to customers. Total policyholders’ equity increased to $21.8 billion, compared to $20.6 billion at the end of 2015.

    Capital — 2014: $20.4 billion; 2015: $20.6 billion; 2016: $21.8 billion


    Investments

    Our investment strategy focus is to ensure Nationwide is financially strong, stable and secure so we can be there for our members. We strive to accomplish this by having:

    • An in-depth understanding of the company’s goals and member needs
    • Multi-asset class capabilities that provide diversification and strong risk-adjusted returns
    • A team that has the expertise needed in today’s financial marketplace

    In 2016, total investments increased to $96.6 billion, up from $86.8 billion in 2015. Net investment income of $3.4 billion was up from 2015, driven primarily by higher income on fixed maturities due to an increase in average investment balances.


    73% Fixed maturity securities; 14% Mortgage loans; 3% Short-term investments; 1% real estate; 9% Other investments = $96.6 billion in investments


    Risk management

    Risk management is an integral part of ensuring that we deliver on the promises we have made to our members. We do this through growing our business, maintaining capital strength to withstand unexpected events and ensuring adequate returns for the risks we take. Nationwide has developed a well-respected risk management discipline for identifying, assessing and managing risks throughout the organization.


    Enterprise financial strength ratings

    Nationwide’s financial strength and credit ratings were affirmed by rating agencies during their most recent reviews. Factors cited to support these ratings include:

    • Strong capital position
    • Excellent risk management capabilities
    • Product and distribution breadth
    • Diversified businesses with market leadership position

    A+: A.M. Best (received 10/17/2002 | affirmed 7/7/2016); A1: Moody’s (received 3/10/2009 | affirmed 7/21/2016); A+: Standard & Poor’s (received 12/22/2008 |affirmed 4/22/2016)


  • Statutory financial highlights

    Nationwide prepares financial statements using generally accepted accounting principles (GAAP), which are a common set of accounting principles, standards and procedures that companies across different industries use to compile their financial statements.

    As an insurance company, Nationwide also prepares financial statements following statutory accounting principles, which are a set of accounting rules for insurance companies set forth by the National Association of Insurance Commissioners (NAIC).

    Statutory accounting principles are generally regarded as more conservative than GAAP. Statutory financial information is the basis for state regulation of insurance companies’ solvency throughout the U.S. Additionally, rating agencies use statutory financial information in their evaluation of an insurance company’s financial strength.

    2014: $36.3 billion; 2015: $40.2 billion; 2016: $40.1 billion

    Combined Statutory Revenue

    Combined statutory revenue is a financial measure that is calculated by combining the statutory revenues of Nationwide’s property and casualty and financial services subsidiaries. It excludes non-insurance sales, such as trust company and retail mutual.

    2014: $14.9 billion; 2015: $15.1 billion; 2016: $15.5 billion

    Combined Statutory Surplus

    Combined statutory surplus is a financial measure of Nationwide’s ability to meet future obligations, which is calculated based on accounting practices prescribed or permitted by the department of insurance of the state of domicile. Each of the states where Nationwide’s insurance companies are domiciled has adopted the NAIC statutory accounting principles as the basis of its statutory accounting practices.

    2014: $182.6 billion; 2015: $179.9 billion; 2016: $197.8 billion

    Combined Statutory Assets

    Combined statutory assets is a financial measure that is calculated by combining the net admitted statutory assets of Nationwide’s property and casualty and financial services subsidiaries.

  • Nationwide leadership

    Board of Directors

    James Bachmann
    Timothy Corcoran
    Yvonne Curl
    Kenneth Davis
    Stephen Hirsch
    Daniel Kelley

    Diane Koken
    Lydia Marshall
    Terry McClure
    Barry Nalebuff
    Brent Porteus

    Suku Radia
    Stephen Rasmussen
    Michael Toelle
    Sparky Weilnau
    Jeffrey Zellers



    Senior Executive Leadership

    Stephen Rasmussen
    Chief Executive Officer

    Mark Berven
    President and Chief Operating Officer Nationwide Property and Casualty

    Mark Howard
    Chief Legal Officer


    Michael Keller
    Chief Information Officer

    Gale King
    Chief Administrative Officer

    Mark Pizzi
    President and Chief Operating Officer Nationwide Direct and Member Solutions


    Mark Thresher
    Chief Financial Officer

    Kirt Walker
    President and Chief Operating Officer Nationwide Financial

    Terrance Williams
    Chief Marketing Officer



Nationwide Is...

Learn more from our associates about the company

2016 Annual Report

View and download Nationwide’s 2016 annual report

2016 Company Overview

View and download a condensed version of our annual report


Share Article