We can all agree that 2020 was a year like no other. Families and businesses across the country — and the world — faced uncertainty. And no matter the industry, business was not business as usual.
Changing consumer behaviors, adverse market conditions and a low interest rate environment due to COVID-19 put pressure on our sales results in certain product lines while buoying others.
In all, we drove strong sales, with momentum in new business across both personal auto and home insurance and financial services. Commercial new premium and retention were also favorable during the year.
Net operating income came in below prior year due to severe weather and wildfire losses in property and casualty; however, our financial services business helped offset weather losses, contributing more than $1 billion to the bottom line. In total, Nationwide paid nearly $17 billion in claims and other benefits to members during the year.
So where do we go from here? We keep our members at the center of every decision we make. We continue to look for ways to create greater value. And we continue to manage our company for long-term financial strength. We believe these are the reasons we’ve been in business for nearly 100 years and why we’ll be here to take care of our members for many more.
Chief Financial Officer
received: 3/10/09affirmed: 5/27/20
received: 10/17/02affirmed: 12/17/20
received: 12/22/08affirmed: 6/23/20
Nationwide’s capital position is strong, enabling us to continue to serve our members and partners and grow our company well into the future.
In 2020, total investments increased to $125.5 billion, up from $113.9 billion in 2019. Net investment income of $4.1 billion was slightly down from 4.2 billion in 2019, driven primarily by lower interest rates, higher short-term balances and alternative investments.