Fitch Publishes Unrated Issuer Report on Nationwide Mutual Insurance Group

CHICAGO--()--Fitch Ratings today published an Unrated Issuer Report (UIR) on Nationwide Mutual Insurance Group. UIRs provide analytical perspective and transparency on key issues that impact an organization's creditworthiness but without providing a credit rating or rating-like opinion.

In addition to highlighting what Fitch considers to be Nationwide's main credit issues and trends, the report takes a closer look at:

--Franchise and Market Position.

--Operating Performance.

Nationwide is one of a handful of remaining multi-line companies operating in the U.S. market. Nationwide's overall franchise is driven by its property/casualty (P/C) business, as a large, geographically diversified personal lines underwriter with a small to midsized commercial market presence, supported by independent agent distribution. The company's 2009 repurchase of the remaining minority interest in NFS underscores its commitment to the stability and growth potential of the niche-focused NFS franchise.

For the P/C business changes in technology, shifting consumer buying preferences and advances by direct insurance distributors present future threats to Nationwide's longer term market share that necessitate significant investment and expenditure for the company to keep pace.

Operating as a mutual insurer allows Nationwide to concentrate less than stock company peers on return on capital and short-term results in either business. Nationwide's fundamental profitability trend is steady with uneven underwriting results, primarily due to catastrophes. NFS' profitability provides stability for consolidated results.

The UIR includes a peer analysis comparing Nationwide with other large P/C underwriters on several important financial metrics.

UIRs are not solicited by the issuer, and Fitch receives no compensation from the issuer for the provision of an UIR. While an UIR is typically based primarily on public information, Fitch analysts may ask questions of an issuer's management while preparing an UIR. The level of management participation, if any, can vary significantly from case to case.

Additional information is available at 'www.fitchratings.com'.

For more information on Unrated Issuer Reports please go to: http://www.fitchratings.com/web_content/product/unrated_reports.pdf.

Applicable Criteria and Related Research:

--'Nationwide Mutual Insurance Group Unrated Issuer Report' (February 2015);

--'2015 Outlook: U.S. Property/Casualty Insurance' (December 2014);

--'2015 Outlook: U.S. Life Insurance' (December 2014);

--'Statutory Performance Rankings - U.S. Property/Casualty Insurers (August 2014).

Applicable Criteria and Related Research: Nationwide Mutual Insurance Group (Defending Franchise as Competition Mounts)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=861727

Statutory Performance Rankings -- U.S. Property/Casualty Insurers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=760287

2015 Outlook: U.S. Property/Casualty Insurance (Competitive Forces Promoting Earnings Decline)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=830988

2015 Outlook: U.S. Life Insurance

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=840868

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Contacts

Fitch Ratings
Martha M. Butler, CFA
Senior Director
+1-312-368-3191
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
R. Andrew Davidson, CFA
Senior Director
+1 312 368-3144
or
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: alyssa.castelli@fitchratings.com
Elizabeth Fogerty, New York, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Martha M. Butler, CFA
Senior Director
+1-312-368-3191
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
R. Andrew Davidson, CFA
Senior Director
+1 312 368-3144
or
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: alyssa.castelli@fitchratings.com
Elizabeth Fogerty, New York, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com