OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Superior) and issuer credit ratings (ICR) of “aa-” of Nationwide Group (Nationwide) and its four property/casualty pooled members and 22 reinsured affiliates.

Concurrently, A.M. Best has affirmed the debt ratings of “a” of the $1.1 billion in existing surplus notes of Nationwide Mutual Insurance Company (Nationwide Mutual) and the $400 million in pass-through securities of North Front Pass-Through Trust. The outlook for all the above ratings is stable. All companies are domiciled in Columbus, OH. (See link below for a detailed list of the companies and ratings.)

Nationwide’s ratings reflect its strong capitalization, favorable core operating results attributable to its continually evolving risk management process, which includes strict underwriting discipline, increased rates and numerous operating efficiencies implemented by management. In addition, Nationwide benefits from a diversified product offering that includes standard and specialty personal, commercial and surplus lines of business. The ratings further recognize Nationwide’s market presence, multiple distribution channels and decentralized operational structure that provides superior service to agents and policyholders.

The ratings also take into consideration the recent announcement of the offer by Nationwide Mutual and certain other affiliates to acquire the publicly traded common shares of the downstream holding company, Nationwide Financial Services, Inc. (NFS) (NYSE:NFS - News), the parent of Nationwide’s life subsidiaries. Risk-adjusted capitalization is expected to decline as a result of the privatization transaction, yet remain well supportive of Nationwide’s current ratings. If accepted by NFS, closure of the transaction is subject to various regulatory and shareholder approvals.

A.M. Best also has affirmed the FSR of B (Good) and the ICR of “bbb-” of Nationwide Indemnity Company (NIC). NIC is the group’s run-off entity, primarily for asbestos and environmental (A&E) claims. The outlook for these ratings is stable.

In addition, A.M. Best has affirmed the FSR of B- (Fair) and the ICR of “bb-” of Nationwide Insurance Company of Florida (NICOF). NICOF is dedicated to writing the group’s Florida homeowners’ business. The outlook for these ratings has been revised to stable from negative, reflecting the favorable impact of NICOF’s aggressive coastal non-renewal initiative on its catastrophic exposure and risk-adjusted capitalization. As wholly owned subsidiaries of Nationwide Mutual, NIC’s and NICOF’s ratings benefit from the implicit and explicit financial support of their parent.

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Source: A.M. Best Co.

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