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nationwide 	1Q06 Statistical Supplement
 

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    nationwide 	1Q06 Statistical Supplement nationwide 1Q06 Statistical Supplement Document Transcript

    • 2006 First Quarter 2006 Nationwide Financial® Statistical Supplement
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 This Page Intentionally Left Blank.
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Table of Contents Page Quarterly Financial Highlights 1-2 NFS Financial Reporting Structure 2 Quarterly Consolidated Income Statements 4 Combining Income Statements For the three months ended March 31, 2006 5 For the three months ended March 31, 2005 6 Quarterly Consolidated Balance Sheets 8 Individual Investments Segment Quarterly earnings trends 9 Account value activity 9 Account values by product 10 Sales by product 10 Sales by channel 10 Retirement Plans Segment Quarterly earnings trends 11 Account value activity 11 Account values by product 12 Sales by product 12 Sales by channel 12 Individual Protection Segment Quarterly earnings trends 13 Policy reserves 13 Insurance in force 13 Sales by product 14 Sales by channel 14 Investment life quarterly earnings trends 15 Investment life policy reserve activity 15 Fixed life quarterly earnings trends 16 Fixed life policy reserve activity 16 Corporate and Other Segment Quarterly earnings trends 17 Medium term notes account value activity 17 Other Data Customer funds managed and administered 18 Separate account assets by segment and fund type 18 Securities available-for-sale 19 Aging of gross unrealized losses on securities available-for-sale 19 Credit quality of fixed maturity securities available-for-sale 20 Mortgage loans by region and property type 20 Deferred policy acquisition costs 21 Individual variable annuity deferred acquisition costs 22 Value of business acquired 23 Individual variable annuity guaranteed minimum death benefits 24 Individual variable annuity guaranteed minimum accumulation benefits 25 Individual variable annuity guaranteed minimum income benefits 25 Individual variable annuity guaranteed minimum death benefit reserve activity 26 Individual variable annuity guaranteed minimum accumulation benefit embedded derivative activity 26 Individual fixed annuity and fixed option of variable annuity summary of crediting rate detail 26 Historical Data 27-40 Glossary 41-44 Shareholder Information 45
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Quarterly Financial Highlights ($ in millions except for per share data) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Individual investments $ 371.8 $ 377.3 $ 385.3 $ 380.1 $ 382.6 Retirement plans 263.7 262.6 271.4 276.0 278.6 Individual protection 338.6 338.8 331.4 339.7 338.4 Corporate and other 87.9 96.2 97.4 103.5 100.1 Total operating revenues $ 1,062.0 $ 1,074.9 $ 1,085.5 $ 1,099.3 $ 1,099.7 Net realized gains (losses) on investments, hedging (1) instruments and hedged items 27.3 1.7 (14.5) 3.7 (8.1) Total revenues $ 1,089.3 $ 1,076.6 $ 1,071.0 $ 1,103.0 $ 1,091.6 Pre-tax Operating Earnings Individual investments $ 61.3 $ 66.1 $ 56.2 $ 53.4 $ 56.4 Retirement plans 47.1 45.3 45.4 49.7 53.6 Individual protection 71.8 63.0 63.8 59.6 64.9 Corporate and other 12.9 21.3 (1.1) 22.6 11.6 Pre-tax operating earnings $ 193.1 $ 195.7 $ 164.3 $ 185.3 $ 186.5 Federal income tax expense 50.7 50.8 (8.0) 33.1 42.2 Net operating earnings $ 142.4 $ 144.9 $ 172.3 $ 152.2 $ 144.3 Net realized gains (losses) on investments, hedging (1) instruments and hedged items, net of taxes 17.8 1.1 (9.4) 2.4 (5.3) Adjustment to DAC amortization related to net realized gains (losses), net of taxes (1.0) (2.5) 2.9 0.1 3.3 Discontinued operations, net of taxes 1.3 (2.3) 0.9 (24.4) - Net income $ 160.5 $ 141.2 $ 166.7 $ 130.3 $ 142.3 Per Diluted Share Net operating earnings $ 0.93 $ 0.94 $ 1.12 $ 0.99 $ 0.94 Net realized gains (losses) on investments, hedging (1) instruments and hedged items, net of taxes 0.12 0.01 (0.07) 0.02 (0.03) Adjustment to DAC amortization related to net realized gains (losses), net of taxes (0.01) (0.02) 0.02 - 0.02 Discontinued operations, net of taxes 0.01 (0.01) 0.01 (0.16) - Net income $ 1.05 $ 0.92 $ 1.08 $ 0.85 $ 0.93 Sales by Channel Non-affiliated Independent broker/dealers $ 1,485.6 $ 1,292.1 $ 1,280.4 $ 1,207.9 $ 1,487.8 Wirehouse and regional firms 501.9 479.2 449.1 482.3 590.1 Financial institutions 514.4 470.5 398.8 424.3 523.7 Pension plan administrators 139.9 116.0 108.2 104.9 135.9 Life specialists 126.6 104.3 82.5 69.0 172.6 Affiliated Nationwide Retirement Solutions 959.5 993.7 1,012.7 948.8 1,028.5 Nationwide agents 176.9 184.9 188.8 207.2 196.4 Nationwide Financial Network 160.9 155.3 160.2 181.6 185.7 The 401(k) Company 426.8 323.7 303.5 288.3 535.9 TBG Financial 108.5 38.6 92.3 36.0 110.4 Total $ 4,601.0 $ 4,158.3 $ 4,076.5 $ 3,950.3 $ 4,967.0 (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes). Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. 1
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Quarterly Financial Highlights ($ in millions except for per share data) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Balance Sheet Data Total assets $ 116,005.9 $ 115,699.7 $ 117,421.3 $ 116,159.9 $ 116,558.7 Customer funds managed and administered $ 149,093.4 $ 150,614.7 $ 155,650.6 $ 155,612.9 $ 162,451.6 Shareholders' equity (1) Including accumulated other comprehensive income (AOCI) $ 5,147.3 $ 5,434.9 $ 5,375.6 $ 5,350.4 $ 5,126.2 AOCI 222.6 395.7 196.1 100.7 (77.9) Excluding AOCI $ 4,924.7 $ 5,039.2 $ 5,179.5 $ 5,249.7 $ 5,204.1 Net operating return on average equity excluding AOCI 11.7% 11.6% 13.5% 11.7% 11.0% (2) Adjusted net operating return on average equity excluding AOCI 11.7% 11.6% 11.2% 11.7% 11.0% Statutory capital and surplus $ 3,015.9 $ 3,152.3 $ 3,305.9 $ 3,262.1 $ 3,279.3 Stock Data Closing Price $ 35.90 $ 37.94 $ 40.05 $ 44.00 $ 43.02 Weighted average shares outstanding Basic 152.7 153.0 153.1 152.9 152.3 Diluted 153.5 153.7 153.9 153.6 152.9 Book value per share Including AOCI $ 33.64 $ 35.52 $ 35.09 $ 35.08 $ 34.40 Excluding AOCI $ 32.19 $ 32.94 $ 33.81 $ 34.42 $ 34.93 (1) Includes changes in fair value of certain investments and derivatives under SFAS 115 and SFAS 133. (2) 3Q 2005 return adjusted for $42.6 million impact of one-time tax adjustments associated with separate account dividend received deductions and $14.1 million charge related to calling of trust preferred securities. Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. NFS Operating Segment Reporting Structure NATIONWIDE FINANCIAL SERVICES, INC. Individual Retirement Individual Corporate Investments Plans Protection & Other Variable Annuities Public Sector - 457 Fixed Life Medium Term Notes Universal Fixed Annuities Private Sector – 401(k) Structured Products Whole Term In Retirement Corporate Other Investment Life Income Products Variable Universal Advisory Services COLI 2
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 This Page Intentionally Left Blank. 3
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Quarterly Consolidated Income Statements ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Asset fees $ 157.0 $ 156.8 $ 163.1 $ 163.0 $ 168.9 Cost of insurance charges 96.4 96.8 97.8 97.5 98.9 Administrative fees 30.6 27.0 29.6 27.7 30.2 Surrender fees 25.1 26.4 24.1 22.6 23.0 Total policy charges 309.1 307.0 314.6 310.8 321.0 Traditional life and immediate annuity premiums 95.9 99.7 97.2 107.1 107.8 Net investment income 576.1 587.1 592.8 587.9 577.3 Operating realized gains (losses) 0.2 0.8 0.5 1.1 1.3 Other income 80.7 80.3 80.4 92.4 92.3 Total operating revenues 1,062.0 1,074.9 1,085.5 1,099.3 1,099.7 Benefits Interest credited 334.5 348.1 350.6 347.7 342.1 Life insurance and annuity benefits 136.2 145.9 142.9 149.9 156.1 Policyholder dividends 26.9 26.3 27.1 27.0 20.2 Total benefits 497.6 520.3 520.6 524.6 518.4 Expenses Commissions 137.8 138.6 130.2 140.1 153.1 General operating expenses 202.5 197.7 198.9 209.3 213.4 Debt extinguishment costs - - 21.7 - - Deferral of policy acquisition costs (128.9) (126.9) (112.4) (120.8) (135.1) Subtotal 211.4 209.4 238.4 228.6 231.4 Amortization of policy acquisition costs 121.8 111.0 122.9 123.7 125.7 Amortization of value of business acquired 12.0 11.7 11.3 10.0 11.6 Interest expense on debt 26.1 26.8 28.0 27.1 26.1 Total expenses 371.3 358.9 400.6 389.4 394.8 Pre-tax operating earnings $ 193.1 $ 195.7 $ 164.3 $ 185.3 $ 186.5 Federal income tax expense 50.7 50.8 (8.0) 33.1 42.2 Net operating earnings $ 142.4 $ 144.9 $ 172.3 $ 152.2 $ 144.3 Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 24.7 9.4 8.4 20.5 7.3 Realized losses on sales, net of hedging (3.0) (4.2) (3.3) (7.9) (12.9) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (3.0) (3.8) (12.6) (7.5) (0.6) Credit default swaps (1.1) (0.5) (2.8) (0.4) (0.1) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.5 0.8 1.4 (1.9) 0.5 Amounts credited to policyholder dividend obligation (0.8) (0.7) (2.1) 0.3 0.1 Adjustment to VOBA amortization 0.5 0.1 1.6 (0.7) 0.4 Subtotal 17.8 1.1 (9.4) 2.4 (5.3) Adjustment to DAC amortization related to net realized gains (losses), net of taxes (1.0) (2.5) 2.9 0.1 3.3 Discontinued operations, net of taxes 1.3 (2.3) 0.9 (24.4) - Net income $ 160.5 $ 141.2 $ 166.7 $ 130.3 $ 142.3 (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes). Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. 4
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Combining Income Statement For the three months ended March 31, 2006 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees $ 124.0 $ 33.9 $ 11.0 $ - $ 168.9 Cost of insurance charges - - 98.9 - 98.9 Administrative fees 4.6 2.7 22.9 - 30.2 Surrender fees 15.2 1.5 6.3 - 23.0 Total policy charges 143.8 38.1 139.1 - 321.0 Traditional life and immediate annuity premiums 31.9 - 75.9 - 107.8 Net investment income 206.4 164.2 116.2 90.5 577.3 Operating realized gains (losses) - - - 1.3 1.3 Other income 0.5 76.3 7.2 8.3 92.3 Total operating revenues 382.6 278.6 338.4 100.1 1,099.7 Benefits Interest credited 137.7 113.2 45.6 45.6 342.1 Life insurance and annuity benefits 41.0 - 115.1 - 156.1 Policyholder dividends - - 20.2 - 20.2 Total benefits 178.7 113.2 180.9 45.6 518.4 Expenses Commissions 73.6 37.8 35.6 6.1 153.1 General operating expenses 48.4 72.2 82.0 10.8 213.4 Debt extinguishment costs - - - - - Deferral of policy acquisition costs (74.4) (9.4) (51.3) - (135.1) Subtotal 47.6 100.6 66.3 16.9 231.4 Amortization of policy acquisition costs 97.6 10.1 18.0 - 125.7 Amortization of value of business acquired 2.3 1.1 8.1 0.1 11.6 Interest expense on debt - - 0.2 25.9 26.1 Total expenses 147.5 111.8 92.6 42.9 394.8 Pre-tax operating earnings $ 56.4 $ 53.6 $ 64.9 $ 11.6 $ 186.5 Federal income tax expense 42.2 Net operating earnings $ 144.3 Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 7.3 Realized losses on sales, net of hedging (12.9) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (0.6) Credit default swaps (0.1) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.5 Amounts credited to policyholder dividend obligation 0.1 Adjustment to VOBA amortization 0.4 Subtotal (5.3) Adjustment to DAC amortization related to net realized gains (losses), net of taxes 3.3 Discontinued operations, net of taxes - Net income $ 142.3 (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes). 5
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Combining Income Statement For the three months ended March 31, 2005 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees $ 112.6 $ 35.1 $ 9.3 $ - $ 157.0 Cost of insurance charges - - 96.4 - 96.4 Administrative fees 4.2 2.5 23.9 - 30.6 Surrender fees 15.7 2.1 7.3 - 25.1 Total policy charges 132.5 39.7 136.9 - 309.1 Traditional life and immediate annuity premiums 22.1 - 73.8 - 95.9 Net investment income 216.8 166.3 119.1 73.9 576.1 Operating realized gains (losses) - - - 0.2 0.2 Other income 0.4 57.7 8.8 13.8 80.7 Total operating revenues 371.8 263.7 338.6 87.9 1,062.0 Benefits Interest credited 146.6 111.8 45.6 30.5 334.5 Life insurance and annuity benefits 33.8 - 102.4 - 136.2 Policyholder dividends - - 26.9 - 26.9 Total benefits 180.4 111.8 174.9 30.5 497.6 Expenses Commissions 61.7 33.7 35.8 6.6 137.8 General operating expenses 44.5 68.1 78.1 11.8 202.5 Debt extinguishment costs - - - - - Deferral of policy acquisition costs (60.3) (10.0) (58.6) - (128.9) Subtotal 45.9 91.8 55.3 18.4 211.4 Amortization of policy acquisition costs 82.6 12.3 26.9 - 121.8 Amortization of value of business acquired 1.6 0.7 9.7 - 12.0 Interest expense on debt - - - 26.1 26.1 Total expenses 130.1 104.8 91.9 44.5 371.3 Pre-tax operating earnings $ 61.3 $ 47.1 $ 71.8 $ 12.9 $ 193.1 Federal income tax expense 50.7 Net operating earnings $ 142.4 Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 24.7 Realized losses on sales, net of hedging (3.0) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (3.0) Credit default swaps (1.1) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.5 Amounts credited to policyholder dividend obligation (0.8) Adjustment to VOBA amortization 0.5 Subtotal 17.8 Adjustment to DAC amortization related to net realized gains (losses), net of taxes (1.0) Discontinued operations, net of taxes 1.3 Net income $ 160.5 (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes). Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. 6
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 This Page Intentionally Left Blank. 7
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Quarterly Consolidated Balance Sheets ($ in millions, except per share data) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Assets Investments Securities available-for-sale: Fixed maturity securities $ 31,188.2 $ 31,778.5 $ 31,092.2 $ 30,106.0 $ 28,645.0 Equity securities 77.5 80.8 78.6 75.6 76.5 Trading assets 26.0 28.5 34.7 34.4 27.8 Mortgage loans 9,127.8 9,214.7 9,332.5 9,148.6 9,048.3 Real estate 108.6 103.8 107.7 108.7 108.6 Policy loans 921.9 928.6 935.6 930.6 933.9 Other long-term investments 581.8 628.0 617.6 691.9 688.9 Short-term investments 2,126.1 2,022.0 2,104.2 2,073.2 2,830.5 Total investments 44,157.9 44,784.9 44,303.1 43,169.0 42,359.5 Cash 38.3 45.8 47.6 16.4 23.9 Accrued investment income 427.3 409.6 436.8 396.3 398.9 Deferred policy acquisition costs 3,706.0 3,581.0 3,710.4 3,685.4 3,794.7 Value of business acquired 477.0 458.9 457.7 449.7 443.3 Other intangible assets 48.6 46.7 46.1 45.6 45.4 Goodwill 400.5 389.6 389.6 364.5 359.0 Other assets 2,383.5 2,214.1 2,227.5 2,069.2 2,200.3 Assets held in separate accounts 64,366.8 63,769.1 65,802.5 65,963.8 66,933.7 Total assets $ 116,005.9 $ 115,699.7 $ 117,421.3 $ 116,159.9 $ 116,558.7 Liabilities and shareholders' equity Future policy benefits and claims $ 40,816.2 $ 40,842.3 $ 40,787.4 $ 39,748.1 $ 39,519.4 Short-term debt 182.9 352.1 391.2 252.3 147.4 Long-term debt 1,406.4 1,406.1 1,406.0 1,398.0 1,398.3 Other liabilities 4,086.3 3,895.2 3,658.6 3,447.3 3,433.7 Liabilities related to separate accounts 64,366.8 63,769.1 65,802.5 65,963.8 66,933.7 110,858.6 110,264.8 112,045.7 110,809.5 111,432.5 Shareholders' equity 5,147.3 5,434.9 5,375.6 5,350.4 5,126.2 Total liabilities and shareholders' equity $ 116,005.9 $ 115,699.7 $ 117,421.3 $ 116,159.9 $ 116,558.7 Capital Structure Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Total capital, including AOCI $ 6,553.7 $ 6,841.0 $ 6,781.6 $ 6,748.4 $ 6,524.5 Less AOCI 222.6 395.7 196.1 100.7 (77.9) Total capital, excluding AOCI $ 6,331.1 $ 6,445.3 $ 6,585.5 $ 6,647.7 $ 6,602.4 Leverage, including AOCI Long-term debt--to--total capital 21.5% 20.6% 20.7% 20.7% 21.4% Leverage, excluding AOCI Long-term debt--to--total capital 22.2% 21.8% 21.3% 21.0% 21.2% Ratio of pre-tax operating earnings before interest expense to interest expense 8.4X 8.3X 6.9X 7.8X 8.1X 8
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Investments Quarterly Earnings Trends ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Asset fees $ 112.6 $ 112.7 $ 118.5 $ 118.1 $ 124.0 Administrative fees 4.2 3.6 4.1 4.3 4.6 Surrender fees 15.7 16.2 16.0 14.2 15.2 Total policy charges 132.5 132.5 138.6 136.6 143.8 Net Investment Income General account assets 223.1 226.1 226.4 220.3 212.7 Charge for invested capital (6.3) (6.3) (6.5) (6.9) (6.3) Total net investment income 216.8 219.8 219.9 213.4 206.4 Premiums on income products 22.1 24.7 26.4 29.7 31.9 Other income 0.4 0.3 0.4 0.4 0.5 Total operating revenues 371.8 377.3 385.3 380.1 382.6 Benefits Interest credited 146.6 149.8 148.2 144.5 137.7 Immediate annuity benefits 19.7 21.1 22.7 25.7 28.5 Policy benefits 14.1 21.2 14.6 16.3 12.5 Total benefits 180.4 192.1 185.5 186.5 178.7 Expenses Commissions 61.7 67.7 62.4 65.7 73.6 General operating expenses 44.5 47.2 47.3 50.7 48.4 Deferral of policy acquisition costs (60.3) (68.5) (59.9) (62.0) (74.4) Subtotal 45.9 46.4 49.8 54.4 47.6 Amortization of policy acquisition costs 82.6 70.8 92.2 83.7 97.6 Amortization of value of business acquired 1.6 1.9 1.6 2.1 2.3 Total expenses 130.1 119.1 143.6 140.2 147.5 Pre-tax operating earnings $ 61.3 $ 66.1 $ 56.2 $ 53.4 $ 56.4 Key Ratios/Statistics Average Account Values: General account $ 16,300.2 $ 16,223.7 $ 16,110.5 $ 15,515.1 $ 14,825.4 Separate account 35,430.3 35,060.4 35,669.0 35,975.9 36,504.3 Advisory services program 222.2 281.5 345.3 393.7 443.3 Total average individual investments account values $ 51,952.7 $ 51,565.6 $ 52,124.8 $ 51,884.7 $ 51,773.0 Earned rate 5.47% 5.57% 5.62% 5.68% 5.74% Credited rate 3.60% 3.69% 3.68% 3.73% 3.72% Interest spread on average general account values 1.87% 1.88% 1.94% 1.95% 2.02% Prepayment penalties and bond call premium income 0.17% 0.17% 0.30% 0.19% 0.11% Base interest spread on average general account values 1.70% 1.71% 1.64% 1.76% 1.91% Asset fees to average separate account values 1.27% 1.29% 1.33% 1.31% 1.36% General operating expenses to average account values 0.34% 0.37% 0.36% 0.39% 0.37% Pre-tax operating earnings to average account values 0.47% 0.51% 0.43% 0.41% 0.44% Pre-tax operating earnings to operating revenues 16.5% 17.5% 14.6% 14.0% 14.7% Average allocated capital $ 1,685.5 $ 1,678.2 $ 1,689.8 $ 1,649.3 $ 1,563.0 Return on average allocated capital 11.1% 12.0% 16.7% 12.1% 11.9% (1) Adjusted return on average allocated capital 11.1% 12.0% 10.9% 12.1% 11.9% (1) 3Q 2005 return adjusted for $24.3 million impact of one-time tax adjustments associated with separate account dividend received deductions. Note: All prior periods have been reclassified to reflect NFS Bermuda as discontinued operations. Individual Investments Account Value Activity ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual Variable Annuities Balance, beginning of period $ 41,481.9 $ 40,441.0 $ 40,726.4 $ 41,651.8 $ 40,796.0 Deposits 944.4 943.1 870.2 903.5 1,045.0 Withdrawals and surrenders (1,299.2) (1,388.7) (1,429.5) (1,456.8) (1,535.4) Net flows (354.8) (445.6) (559.3) (553.3) (490.4) Investment performance/interest credited (513.6) 848.7 1,615.9 971.1 1,903.4 Policy charges (133.4) (133.5) (138.9) (137.6) (140.6) Benefits and other (39.1) 15.8 7.7 24.6 3.1 Acquisitions/(terminations), net - - - (1,160.6) - Balance, end of period $ 40,441.0 $ 40,726.4 $ 41,651.8 $ 40,796.0 $ 42,071.5 Individual Fixed Annuities Balance, beginning of period $ 8,902.5 $ 8,817.6 $ 8,731.8 $ 8,559.3 $ 8,041.8 Deposits 50.1 52.4 27.4 31.0 38.6 Withdrawals and surrenders (210.0) (230.0) (274.0) (330.0) (400.9) Net flows (159.9) (177.6) (246.6) (299.0) (362.3) Policyholder interest credited 83.6 83.7 82.8 77.6 73.4 Policy charges (2.7) (2.9) (3.2) (2.6) (2.8) Benefits and other (5.9) 11.0 (5.5) (3.9) (3.5) Acquisitions/(terminations), net - - - (289.6) - Balance, end of period $ 8,817.6 $ 8,731.8 $ 8,559.3 $ 8,041.8 $ 7,746.6 Income Products $ 1,916.3 $ 1,935.0 $ 1,954.7 $ 1,978.3 $ 2,025.1 Advisory services program $ 248.4 $ 314.6 $ 375.9 $ 411.5 $ 475.0 Total individual investment account values $ 51,423.3 $ 51,707.8 $ 52,541.7 $ 51,227.6 $ 52,318.2 9
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Investments Account Values by Product ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual Variable Annuities BEST of AMERICA products $ 32,801.3 $ 33,119.9 $ 33,989.0 $ 32,937.0 $ 34,117.5 Private label annuities 7,119.5 7,110.0 7,178.4 7,398.9 7,505.5 Nationwide Financial Network and other 520.2 496.5 484.4 460.1 448.5 Total individual variable annuities $ 40,441.0 $ 40,726.4 $ 41,651.8 $ 40,796.0 $ 42,071.5 Individual Fixed Annuities $ 8,817.6 $ 8,731.8 $ 8,559.3 $ 8,041.8 $ 7,746.6 Income Products $ 1,916.3 $ 1,935.0 $ 1,954.7 $ 1,978.3 $ 2,025.1 Advisory Services Program $ 248.4 $ 314.6 $ 375.9 $ 411.5 $ 475.0 Total individual investment account values $ 51,423.3 $ 51,707.8 $ 52,541.7 $ 51,227.6 $ 52,318.2 Individual Investments Sales by Product ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual Variable Annuities BEST of AMERICA products $ 815.4 $ 832.4 $ 720.1 $ 767.6 $ 912.5 Private label annuities 89.2 95.3 79.8 82.3 73.0 Nationwide Financial Network and other 1.2 1.3 1.1 1.1 0.9 Total individual variable annuities $ 905.8 $ 929.0 $ 801.0 $ 851.0 $ 986.4 Individual Fixed Annuities $ 62.7 $ 67.6 $ 31.5 $ 32.6 $ 39.5 Income Products $ 44.9 $ 47.7 $ 49.3 $ 54.8 $ 58.5 Advisory Services Program $ 53.2 $ 63.8 $ 65.1 $ 49.2 $ 62.6 Total individual investment sales $ 1,066.6 $ 1,108.1 $ 946.9 $ 987.6 $ 1,147.0 Individual Investments Sales by Channel ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual Variable Annuities Non-affiliated Independent broker/dealers $ 327.9 $ 355.5 $ 309.4 $ 311.5 $ 347.7 Wirehouse and regional firms 208.2 217.6 198.3 197.8 220.8 Financial institutions 289.2 267.2 224.8 250.3 318.2 Life specialists 0.3 - - - 0.8 Affiliated Nationwide agents 58.5 63.2 48.1 60.5 63.6 Nationwide Financial Network 21.7 25.5 20.4 30.9 35.3 Total individual variable annuities $ 905.8 $ 929.0 $ 801.0 $ 851.0 $ 986.4 Individual Fixed Annuities Non-affiliated Independent broker/dealers $ 1.6 $ 1.9 $ 1.9 $ 1.6 $ 2.6 Wirehouse and regional firms 1.7 3.4 1.2 1.9 1.0 Financial institutions 50.8 53.5 16.3 8.8 14.7 Pension plan administrators - - - - - Affiliated Nationwide agents 7.5 7.9 11.0 17.9 17.4 Nationwide Financial Network 1.1 0.9 1.1 2.4 3.8 Total individual fixed annuities $ 62.7 $ 67.6 $ 31.5 $ 32.6 $ 39.5 Income Products Non-affiliated Independent broker/dealers $ 22.3 $ 16.6 $ 17.6 $ 20.4 $ 28.1 Wirehouse and regional firms 10.7 15.5 19.0 18.2 17.0 Financial institutions 6.8 9.0 4.8 8.6 6.1 Affiliated Nationwide agents 2.0 3.1 3.7 3.9 3.6 Nationwide Financial Network 3.1 3.5 4.2 3.7 3.7 Total income products $ 44.9 $ 47.7 $ 49.3 $ 54.8 $ 58.5 Advisory Services Program Non-affiliated Independent broker/dealers $ 48.3 $ 54.9 $ 57.7 $ 44.4 $ 48.0 Financial institutions 0.5 2.9 1.5 3.2 4.0 Affiliated Nationwide Financial Network 4.4 6.0 5.9 1.6 10.6 Total advisory services program $ 53.2 $ 63.8 $ 65.1 $ 49.2 $ 62.6 Total individual investment sales $ 1,066.6 $ 1,108.1 $ 946.9 $ 987.6 $ 1,147.0 10
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Retirement Plans Quarterly Earnings Trends ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Asset fees $ 35.1 $ 34.1 $ 34.2 $ 34.4 $ 33.9 Administrative fees 2.5 2.0 1.8 2.4 2.7 Surrender fees 2.1 2.5 1.7 1.9 1.5 Total policy charges 39.7 38.6 37.7 38.7 38.1 Net investment income 166.3 162.3 165.7 167.1 164.2 Other income 57.7 61.7 68.0 70.2 76.3 Total operating revenues 263.7 262.6 271.4 276.0 278.6 Benefits Interest credited 111.8 112.2 115.4 115.6 113.2 Expenses Commissions 33.7 31.6 33.7 34.3 37.8 General operating expenses 68.1 70.7 72.6 72.8 72.2 Deferral of policy acquisition costs (10.0) (9.2) (9.1) (8.9) (9.4) Subtotal 91.8 93.1 97.2 98.2 100.6 Amortization of policy acquisition costs 12.3 11.1 12.1 11.9 10.1 Amortization of value of business acquired 0.7 0.9 1.3 0.6 1.1 Total expenses 104.8 105.1 110.6 110.7 111.8 Pre-tax operating earnings $ 47.1 $ 45.3 $ 45.4 $ 49.7 $ 53.6 Key Ratios/Statistics Average Account Values: General account $ 10,589.9 $ 10,795.0 $ 11,010.1 $ 11,151.0 $ 11,241.2 Separate account 20,206.2 19,582.4 19,342.2 19,737.8 19,298.8 Non insurance assets 10,987.4 11,914.9 13,023.6 14,056.6 15,258.6 Administration only 35,093.1 35,400.4 36,725.4 37,508.5 39,690.3 Total average retirement plan account values $ 76,876.6 $ 77,692.7 $ 80,101.3 $ 82,453.9 $ 85,488.9 Earned rate 6.28% 6.01% 6.02% 5.99% 5.84% Credited rate 4.22% 4.16% 4.19% 4.15% 4.03% Interest spread on average general account values 2.06% 1.85% 1.83% 1.84% 1.81% Prepayment penalties and bond call premium income 0.25% 0.19% 0.18% 0.19% 0.09% Base interest spread on average general account values 1.81% 1.66% 1.65% 1.65% 1.72% Asset fees to average separate account values 0.69% 0.70% 0.71% 0.70% 0.70% General operating expenses to average account values 0.35% 0.36% 0.36% 0.35% 0.34% Pre-tax operating earnings to average account values 0.25% 0.23% 0.23% 0.24% 0.25% Pre-tax operating earnings to operating revenue 17.9% 17.3% 16.7% 18.0% 19.2% Average allocated capital $ 745.5 $ 753.6 $ 784.1 $ 806.5 $ 816.2 Return on average allocated capital 18.6% 17.7% 25.1% 20.1% 19.4% (1) Adjusted return on average allocated capital 18.6% 17.7% 17.7% 20.1% 19.4% (1) 3Q 2005 return adjusted for $14.6 million impact of one-time tax adjustments associated with separate account dividend received deductions. Retirement Plans Account Value Activity ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Private Sector Pension Plans Balance, beginning of period $ 37,736.0 $ 38,109.3 $ 39,324.9 $ 41,235.7 $ 42,906.5 New deposits/sales 2,255.2 1,682.4 1,833.3 1,676.4 2,327.7 Participant withdrawals and surrenders (1,497.8) (1,308.3) (1,464.6) (1,601.7) (1,855.7) Net flows 757.4 374.1 368.7 74.7 472.0 Investment performance/interest credited (361.0) 811.6 1,591.8 1,027.6 2,112.0 Policy and other charges (52.3) (52.9) (53.5) (57.8) (25.2) Case acquisitions/(terminations), net 29.2 82.8 3.8 626.3 784.6 Balance, end of period $ 38,109.3 $ 39,324.9 $ 41,235.7 $ 42,906.5 $ 46,249.9 Public Sector Pension Plans Balance, beginning of period $ 38,925.2 $ 38,982.5 $ 38,968.6 $ 40,673.4 $ 40,092.0 New deposits/sales 952.3 984.8 1,004.2 940.3 1,020.0 Participant withdrawals and surrenders (739.1) (640.6) (634.2) (625.0) (694.2) Net flows 213.2 344.2 370.0 315.3 325.8 Investment performance/interest credited (208.0) 575.5 1,359.3 850.3 1,376.2 Policy and other charges (17.2) (17.3) (17.5) (17.4) (18.0) Case acquisitions/(terminations), net 69.3 (916.3) (7.0) (1,729.6) (46.8) Balance, end of period $ 38,982.5 $ 38,968.6 $ 40,673.4 $ 40,092.0 $ 41,729.2 Total retirement plan account values $ 77,091.8 $ 78,293.5 $ 81,909.1 $ 82,998.5 $ 87,979.1 11
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Retirement Plans Account Values by Product ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Private Sector Pension Plans BEST of AMERICA annuity products $ 8,204.6 $ 7,995.6 $ 7,969.2 $ 7,791.9 $ 7,738.8 BEST of AMERICA trust products 11,416.3 12,413.4 13,633.7 14,479.5 16,037.7 Subtotal BEST of AMERICA 19,620.9 20,409.0 21,602.9 22,271.4 23,776.5 The 401(k) Company 11,328.9 11,712.4 12,215.3 13,147.7 16,349.9 Nationwide Financial Network products 1,429.2 1,411.2 1,372.3 1,378.4 1,316.5 Nationwide employee and agent benefit plans 5,097.7 5,155.2 5,426.4 5,504.2 4,207.1 Other 632.6 637.1 618.8 604.8 599.9 Total private sector pension plans $ 38,109.3 $ 39,324.9 $ 41,235.7 $ 42,906.5 $ 46,249.9 Public Sector Pension Plans IRC Section 457 annuities $ 15,394.0 $ 14,797.6 $ 15,321.2 $ 15,790.2 $ 16,148.1 Administration only agreements 23,588.5 24,171.0 25,352.2 24,301.8 25,581.1 Total public sector pension plans $ 38,982.5 $ 38,968.6 $ 40,673.4 $ 40,092.0 $ 41,729.2 Total retirement plan account values $ 77,091.8 $ 78,293.5 $ 81,909.1 $ 82,998.5 $ 87,979.1 Retirement Plans Sales by Product ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Private Sector Pension Plans BEST of AMERICA annuity products $ 392.6 $ 357.5 $ 361.0 $ 296.7 $ 351.0 BEST of AMERICA trust products 1,167.0 888.7 948.0 971.2 1,277.5 Subtotal BEST of AMERICA 1,559.6 1,246.2 1,309.0 1,267.9 1,628.5 The 401(k) Company 426.8 323.7 303.5 288.3 535.9 Nationwide Financial Network products 53.2 41.7 52.6 58.4 56.5 Other 23.1 16.0 - - 12.6 Total private sector pension plan $ 2,062.7 $ 1,627.6 $ 1,665.1 $ 1,614.6 $ 2,233.5 Public Sector Pension Plans IRC Section 457 annuities $ 373.8 $ 394.4 $ 397.6 $ 379.0 $ 407.3 Administration only agreements 578.5 590.4 606.7 561.3 612.6 Total public sector pension plans $ 952.3 $ 984.8 $ 1,004.3 $ 940.3 $ 1,019.9 Total retirement plan sales $ 3,015.0 $ 2,612.4 $ 2,669.4 $ 2,554.9 $ 3,253.4 Retirement Plans Sales by Channel ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Private Sector Pension Plans Non-affiliated Independent broker/dealers $ 1,019.9 $ 793.2 $ 828.6 $ 770.3 $ 994.7 Wirehouse and regional firms 264.9 225.1 215.3 248.4 337.0 Financial institutions 154.5 125.7 133.8 137.2 167.7 Pension plan administrators 139.9 116.0 108.2 104.9 135.9 Affiliated Nationwide Retirement Solutions 7.2 8.9 8.4 8.5 8.6 Nationwide agents 20.8 16.5 39.0 19.2 24.0 Nationwide Financial Network 28.7 18.5 28.3 37.8 29.7 The 401(k) Company 426.8 323.7 303.5 288.3 535.9 Total private sector pension plans $ 2,062.7 $ 1,627.6 $ 1,665.1 $ 1,614.6 $ 2,233.5 Public Sector Pension Plans Nationwide Retirement Solutions $ 952.3 $ 984.8 $ 1,004.3 $ 940.3 $ 1,019.9 Total retirement plan sales $ 3,015.0 $ 2,612.4 $ 2,669.4 $ 2,554.9 $ 3,253.4 12
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Protection Quarterly Earnings Trends ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Asset fees $ 9.3 $ 10.0 $ 10.4 $ 10.5 $ 11.0 Administrative fees 23.9 21.4 23.7 21.0 22.9 Surrender fees 7.3 7.7 6.4 6.5 6.3 Cost of insurance 96.4 96.8 97.8 97.5 98.9 Total policy charges 136.9 135.9 138.3 135.5 139.1 Net Investment Income General account assets 123.4 125.7 121.3 122.3 120.5 Charge for invested capital (4.3) (4.4) (4.2) (4.7) (4.3) Total net investment income 119.1 121.3 117.1 117.6 116.2 Traditional life premiums 73.8 75.0 70.8 77.4 75.9 Other income 8.8 6.6 5.2 9.2 7.2 Total operating revenues 338.6 338.8 331.4 339.7 338.4 Benefits Interest credited 45.6 49.6 48.0 47.5 45.6 Life benefits 102.4 103.6 105.6 107.9 115.1 Policyholder dividends 26.9 26.3 27.1 27.0 20.2 Total benefits 174.9 179.5 180.7 182.4 180.9 Expenses Commissions 35.8 32.8 27.9 33.8 35.6 General operating expenses 78.1 74.6 75.3 78.4 82.0 Deferral of policy acquisition costs (58.6) (49.2) (43.4) (49.9) (51.3) Subtotal 55.3 58.2 59.8 62.3 66.3 Amortization of policy acquisition costs 26.9 29.1 18.6 28.1 18.0 Amortization of value of business acquired 9.7 8.9 8.4 7.2 8.1 Interest expense on debt - 0.1 0.1 0.1 0.2 Total expenses 91.9 96.3 86.9 97.7 92.6 Pre-tax operating earnings $ 71.8 $ 63.0 $ 63.8 $ 59.6 $ 64.9 Key Ratios/Statistics General operating expenses to operating revenues 23.1% 22.0% 22.7% 23.1% 24.2% Pre-tax operating earnings to operating revenues 21.2% 18.6% 19.3% 17.5% 19.2% Average allocated capital $ 1,764.1 $ 1,782.5 $ 1,798.5 $ 1,817.9 $ 1,829.6 Return on average allocated capital 11.0% 9.6% 10.9% 9.5% 9.8% Adjusted return on average allocated capital (1) 11.0% 9.6% 10.0% 9.5% 9.8% (1) 3Q 2005 return adjusted for $3.7 million impact of one-time tax adjustments associated with separate account dividend received deductions. Note: All prior periods have been reclassified to reflect NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. Individual Protection Policy Reserves Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 ($ in millions) Individual investment life $ 4,892.1 $ 4,994.9 $ 5,209.5 $ 5,329.5 $ 5,573.1 Corporate investment life - general account 5,106.4 5,173.7 5,499.4 5,613.8 5,997.2 Corporate investment life - separate account 1,161.5 1,164.4 1,143.6 1,130.8 1,143.6 Subtotal investment life 11,160.0 11,333.0 11,852.5 12,074.1 12,713.9 Traditional life 4,234.5 4,227.9 4,229.8 4,225.2 4,210.3 Universal life 1,022.4 1,043.4 1,067.7 1,089.3 1,108.1 Subtotal fixed life 5,256.9 5,271.3 5,297.5 5,314.5 5,318.4 Total individual protection policy reserves $ 16,416.9 $ 16,604.3 $ 17,150.0 $ 17,388.6 $ 18,032.3 Individual Protection Insurance In Force ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual investment life $ 56,772.8 $ 56,756.8 $ 56,739.3 $ 57,021.7 $ 57,164.1 Corporate investment life - general account 9,777.4 9,840.0 10,310.4 10,305.0 10,633.5 Corporate investment life - separate account 13,344.9 13,344.9 13,336.2 13,330.5 13,330.5 Subtotal investment life 79,895.1 79,941.7 80,385.9 80,657.2 81,128.1 Traditional life 33,596.4 34,628.5 35,500.1 36,589.3 37,678.6 Universal life 8,510.3 8,776.5 8,887.1 9,114.6 9,192.6 Subtotal fixed life 42,106.7 43,405.0 44,387.2 45,703.9 46,871.2 Total individual protection insurance in force $ 122,001.8 $ 123,346.7 $ 124,773.1 $ 126,361.1 $ 127,999.3 13
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Protection Sales by Product Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 ($ in millions) BEST of AMERICA Variable Life Series First year sales $ 26.9 $ 29.7 $ 30.3 $ 35.0 $ 34.2 Renewal sales 76.8 79.4 74.8 73.1 75.9 Total BEST of AMERICA variable life series 103.7 109.1 105.1 108.1 110.1 Nationwide Financial Network Variable Life Products First year sales 7.5 6.3 4.4 5.8 5.0 Renewal sales 52.5 49.9 53.1 49.5 51.2 Total Nationwide Financial Network variable life products 60.0 56.2 57.5 55.3 56.2 Corporate Owned Life Insurance (COLI) First year sales 57.6 54.8 79.7 35.7 83.5 Renewal sales 177.2 88.1 95.1 69.3 198.7 Total COLI 234.8 142.9 174.8 105.0 282.2 Traditional/Universal life First year sales 26.6 28.3 26.4 30.1 21.6 Renewal sales 94.3 101.3 96.4 109.3 96.5 Total traditional/universal life 120.9 129.6 122.8 139.4 118.1 Total individual protection sales $ 519.4 $ 437.8 $ 460.2 $ 407.8 $ 566.6 Individual Protection Sales by Channel Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 ($ in millions) Non-affiliated Independent broker/dealers $ 65.6 $ 70.0 $ 65.2 $ 59.7 $ 66.7 Wirehouse and regional firms 16.4 17.6 15.3 16.0 14.3 Financial institutions 12.6 12.2 17.6 16.2 13.0 Life specialists 126.3 104.3 82.5 69.0 171.8 Affiliated Nationwide agents 88.1 94.2 87.0 105.7 87.8 Nationwide Financial Network 101.9 100.9 100.3 105.2 102.6 TBG Financial 108.5 38.6 92.3 36.0 110.4 Total individual protection sales $ 519.4 $ 437.8 $ 460.2 $ 407.8 $ 566.6 14
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Investment Life Quarterly Earnings Trends Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 ($ in millions) Operating Revenues Asset fees $ 9.3 $ 10.0 $ 10.4 $ 10.5 $ 11.0 Administrative fees 20.4 17.8 20.2 17.3 19.5 Surrender fees 6.9 7.3 6.0 6.1 5.6 Cost of insurance 84.4 84.7 85.3 84.6 85.4 Total policy charges 121.0 119.8 121.9 118.5 121.5 Net Investment Income General account assets 38.6 42.6 38.1 37.9 37.2 Charge for invested capital (4.3) (4.4) (4.2) (4.7) (4.3) Total net investment income 34.3 38.2 33.9 33.2 32.9 Other income 8.8 6.6 5.2 9.2 7.2 Total operating revenues 164.1 164.6 161.0 160.9 161.6 Benefits Interest credited 27.3 31.2 29.3 28.5 26.8 Life benefits 29.0 33.8 31.5 34.1 39.1 Total benefits 56.3 65.0 60.8 62.6 65.9 Expenses Commissions 27.0 23.3 20.7 24.6 27.9 General operating expenses 49.9 42.2 43.7 43.0 50.8 Deferral of policy acquisition costs (46.2) (33.6) (29.9) (33.1) (37.5) Subtotal 30.7 31.9 34.5 34.5 41.2 Amortization of policy acquisition costs 22.5 23.2 19.4 20.6 12.6 Amortization of value of business acquired 7.3 6.0 6.2 5.6 5.9 Interest expense on debt - 0.1 0.1 0.1 0.2 Total expenses 60.5 61.2 60.2 60.8 59.9 Pre-tax operating earnings $ 47.3 $ 38.4 $ 40.0 $ 37.5 $ 35.8 Key Ratios/Statistics (1) $ 5.97 $ 6.00 $ 6.05 $ 6.00 $ 6.07 Cost of insurance per $1,000 of average net amount at risk Life benefits per $1,000 of average net amount at risk (1) $ 2.05 $ 2.39 $ 2.23 $ 2.42 $ 2.78 30.4% 25.6% 27.1% 26.7% 31.4% General operating expenses to operating revenues 28.8% 23.3% 24.8% 23.3% 22.2% Pre-tax operating earnings to operating revenues Average allocated capital $ 1,231.4 $ 1,247.7 $ 1,255.2 $ 1,259.5 $ 1,262.2 Return on average allocated capital 10.6% 8.6% 10.6% 9.1% 8.3% (2) Adjusted return on average allocated capital 10.6% 8.6% 9.4% 9.1% 8.3% (1) Excludes separate account corporate investment life. (2) 3Q 2005 return adjusted for $3.7 million impact of one-time tax adjustments associated with separate account dividend received deductions. Note: All prior periods have been reclassified to reflect NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. Investment Life Policy Reserve Activity ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Balance, beginning of period $ 10,406.2 $ 11,160.0 $ 11,333.0 $ 11,852.5 $ 12,074.1 Deposits 1,209.2 292.0 391.6 261.0 419.9 Withdrawals and surrenders (271.5) (206.7) (134.2) (168.4) (146.2) Net flows 937.7 85.3 257.4 92.6 273.7 Investment performance/interest credited (76.3) 219.0 361.6 227.3 470.8 Policy charges (121.0) (119.8) (122.0) (118.6) (121.8) Benefits and other 13.4 (11.5) 22.5 21.8 17.1 Acquired business - - - (1.5) - Balance, end of period $ 11,160.0 $ 11,333.0 $ 11,852.5 $ 12,074.1 $ 12,713.9 15
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Fixed Life Quarterly Earnings Trends Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 ($ in millions) Operating Revenues Administrative fees $ 3.5 $ 3.6 $ 3.5 $ 3.7 $ 3.4 Surrender fees 0.4 0.4 0.4 0.4 0.7 Cost of insurance 12.0 12.1 12.5 12.9 13.5 Total policy charges 15.9 16.1 16.4 17.0 17.6 Net investment income 84.8 83.1 83.2 84.4 83.3 Traditional life premiums 73.8 75.0 70.8 77.4 75.9 Total operating revenues 174.5 174.2 170.4 178.8 176.8 Benefits Interest credited 18.3 18.4 18.7 19.0 18.8 Life benefits 73.4 69.8 74.1 73.8 76.0 Policyholder dividends 26.9 26.3 27.1 27.0 20.2 Total benefits 118.6 114.5 119.9 119.8 115.0 Expenses Commissions 8.8 9.5 7.2 9.2 7.7 General operating expenses 28.2 32.4 31.6 35.4 31.2 Deferral of policy acquisition costs (12.4) (15.6) (13.5) (16.8) (13.8) Subtotal 24.6 26.3 25.3 27.8 25.1 Amortization of policy acquisition costs 4.4 5.9 (0.8) 7.5 5.4 Amortization of value of business acquired 2.4 2.9 2.2 1.6 2.2 Total expenses 31.4 35.1 26.7 36.9 32.7 Pre-tax operating earnings $ 24.5 $ 24.6 $ 23.8 $ 22.1 $ 29.1 Key Ratios/Statistics $ 7.02 $ 6.53 $ 6.75 $ 6.55 $ 6.57 Life benefits per $1,000 of average life insurance in force 16.2% 18.6% 18.5% 19.8% 17.6% General operating expenses to operating revenues 14.0% 14.1% 14.0% 12.4% 16.5% Pre-tax operating earnings to operating revenues Average allocated capital $ 532.7 $ 534.8 $ 543.4 $ 558.4 $ 567.4 Return on average allocated capital 11.9% 12.0% 11.4% 10.3% 13.3% Fixed Life Policy Reserve Activity ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Traditional/Universal Life Balance, beginning of period $ 5,276.8 $ 5,256.9 $ 5,271.3 $ 5,297.5 $ 5,314.5 Deposits 108.8 113.5 104.9 121.4 106.0 Withdrawals and surrenders (56.8) (53.6) (51.7) (51.9) (51.2) Net flows 52.0 59.9 53.2 69.5 54.8 Interest credited 18.3 18.4 18.7 19.0 22.7 Policy charges (15.9) (16.1) (16.4) (17.0) (17.6) Benefits and other (74.3) (47.8) (29.3) (54.5) (56.0) Balance, end of period $ 5,256.9 $ 5,271.3 $ 5,297.5 $ 5,314.5 $ 5,318.4 16
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Corporate and Other Quarterly Earnings Trends ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Net Investment Income General account assets $ 73.4 $ 83.2 $ 90.1 $ 90.9 $ 90.8 Periodic net coupon settlements on non-qualifying derivatives 0.5 0.5 - (1.1) (0.3) Total net investment income 73.9 83.7 90.1 89.8 90.5 Operating realized gains (losses) 0.2 0.8 0.5 1.1 1.3 Other income 13.8 11.7 6.8 12.6 8.3 Total operating revenues 87.9 96.2 97.4 103.5 100.1 Benefits Interest Credited Products 30.1 36.1 38.8 39.9 45.4 Periodic net coupon settlements on non-qualifying derivatives 0.4 0.4 0.2 0.2 0.2 Total benefits 30.5 36.5 39.0 40.1 45.6 Expenses Commissions 6.6 6.5 6.2 6.3 6.1 General operating expenses 11.8 5.2 3.7 7.4 10.8 Amortization of value of business acquired - - - 0.1 0.1 Debt extinguishment costs - - 21.7 - - Interest expense on debt 26.1 26.7 27.9 27.0 25.9 Total expenses 44.5 38.4 59.5 40.8 42.9 Pre-tax operating earnings $ 12.9 $ 21.3 $ (1.1) $ 22.6 $ 11.6 Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc. and NFS Bermuda as discontinued operations. Medium Term Notes ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Key Ratios/Statistics Average Account Values: General account $ 4,281.5 $ 4,085.3 $ 4,029.5 $ 4,024.0 $ 4,060.1 Earned rate 4.16% 4.92% 4.94% 5.25% 5.67% Credited rate 2.81% 3.53% 3.85% 3.97% 4.47% Interest spread on average general account values 1.35% 1.39% 1.09% 1.28% 1.20% Prepayment penalties and bond call premium income 0.13% 0.26% 0.06% 0.09% 0.12% Base interest spread on average general account values 1.22% 1.13% 1.03% 1.19% 1.08% Account Value Activity Balance, beginning of period $ 4,401.6 $ 4,161.4 $ 4,009.1 $ 4,049.8 $ 3,998.2 Deposits - 200.0 400.0 300.0 250.0 Maturities (236.8) (358.1) (370.5) (340.0) (125.0) Net flows (236.8) (158.1) 29.5 (40.0) 125.0 Interest credited and amortization 31.9 35.5 52.8 31.0 44.7 Other benefits - interest payments (35.3) (29.7) (41.6) (42.6) (45.8) Balance, end of period $ 4,161.4 $ 4,009.1 $ 4,049.8 $ 3,998.2 $ 4,122.1 17
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Customer Funds Managed and Administered ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual variable annuities $ 40,441.0 $ 40,726.4 $ 41,651.8 $ 40,796.0 $ 42,071.5 Individual fixed annuities 8,817.6 8,731.8 8,559.3 8,041.8 7,746.6 Income products 1,916.3 1,935.0 1,954.7 1,978.3 2,025.1 Advisory services program 248.4 314.6 375.9 411.5 475.0 Subtotal individual investments 51,423.3 51,707.8 52,541.7 51,227.6 52,318.2 Private sector pension plans 38,109.3 39,324.9 41,235.7 42,906.5 46,249.9 Public sector pension plans 38,982.5 38,968.6 40,673.4 40,092.0 41,729.2 Subtotal retirement plans 77,091.8 78,293.5 81,909.1 82,998.5 87,979.1 Individual protection investment life 11,160.0 11,333.0 11,852.5 12,074.1 12,713.9 Individual protection fixed life 5,256.9 5,271.3 5,297.5 5,314.5 5,318.4 Subtotal individual protection 16,416.9 16,604.3 17,150.0 17,388.6 18,032.3 Medium term notes 4,161.4 4,009.1 4,049.8 3,998.2 4,122.1 Customer funds managed and administered $ 149,093.4 $ 150,614.7 $ 155,650.6 $ 155,612.9 $ 162,451.6 Separate Account Assets by Segment and Fund Type Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 ($ in millions) Individual Investments Equity $ 29,114.8 $ 29,414.8 $ 30,464.2 $ 30,533.0 $ 32,002.5 Bond 4,144.0 4,275.1 4,095.9 3,899.8 3,809.9 Money market 1,673.9 1,500.5 1,587.5 1,371.4 1,392.0 Subtotal individual investments 34,932.7 35,190.4 36,147.6 35,804.2 37,204.4 Retirement Plans Equity $ 16,080.0 $ 16,097.0 $ 16,565.1 $ 16,826.1 $ 15,873.7 Bond 2,044.4 2,010.5 2,069.3 1,993.0 1,851.0 Money market 622.1 541.4 529.4 513.3 468.2 Other 1,346.1 423.3 448.4 530.9 541.4 Subtotal retirement plans 20,092.6 19,072.2 19,612.2 19,863.3 18,734.3 Individual Protection Equity $ 5,833.3 $ 5,943.1 $ 6,617.6 $ 7,073.6 $ 7,653.4 Bond 2,219.0 2,250.5 2,060.0 2,059.4 2,081.8 Money market 704.9 734.0 782.1 580.5 600.8 Subtotal individual protection 8,757.2 8,927.6 9,459.7 9,713.5 10,336.0 Corporate and Other Equity $ 525.1 $ 520.4 $ 525.4 $ 525.0 $ 597.2 Bond 52.5 52.2 51.3 50.8 55.3 Money market 6.7 6.3 6.3 7.0 6.5 Subtotal corporate and other 584.3 578.9 583.0 582.8 659.0 Total Equity $ 51,553.2 $ 51,975.3 $ 54,172.3 $ 54,957.7 $ 56,126.8 Bond 8,459.9 8,588.3 8,276.5 8,003.0 7,798.0 Money market 3,007.6 2,782.2 2,905.3 2,472.2 2,467.5 Other 1,346.1 423.3 448.4 530.9 541.4 Total separate account assets by fund type $ 64,366.8 $ 63,769.1 $ 65,802.5 $ 65,963.8 $ 66,933.7 18
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Securities Available-For-Sale Gross Gross Amortized Unrealized Unrealized Estimated ($ in millions) Cost Gains Losses Fair Value March 31, 2006 Fixed maturity securities: U.S. Treasury securities and obligations of U.S. Government corporations $ 262.7 $ 11.0 $ 6.3 $ 267.4 Agencies not backed by the full faith and credit of the U.S. Government 942.3 43.7 11.7 974.3 Obligations of states and political subdivisions 307.7 0.7 10.5 297.9 Debt securities issued by foreign governments 42.6 1.3 0.8 43.1 Corporate securities Public 10,140.6 215.2 189.8 10,166.0 Private 6,954.3 128.6 130.8 6,952.1 Mortgage-backed securities--U.S. Government backed 6,534.5 6.5 213.2 6,327.8 Asset-backed securities 3,647.4 39.8 70.8 3,616.4 Total fixed maturities 28,832.1 446.8 633.9 28,645.0 Equity securities 63.1 13.9 0.5 76.5 Total $ 28,895.2 $ 460.7 $ 634.4 $ 28,721.5 December 31, 2005 Fixed maturity securities: U.S. Treasury securities and obligations of U.S. Government corporations $ 197.1 $ 14.4 $ 1.2 $ 210.3 Agencies not backed by the full faith and credit of the U.S. Government 882.3 61.2 6.7 936.8 Obligations of states and political subdivisions 314.5 2.4 3.9 313.0 Debt securities issued by foreign governments 42.7 2.7 0.1 45.3 Corporate securities Public 10,728.5 302.0 122.0 10,908.5 Private 7,199.3 200.7 77.5 7,322.5 Mortgage-backed securities--U.S. Government backed 6,824.7 21.3 117.0 6,729.0 Asset-backed securities 3,641.7 44.2 45.3 3,640.6 Total fixed maturities 29,830.8 648.9 373.7 30,106.0 Equity securities 64.8 11.2 0.4 75.6 Total $ 29,895.6 $ 660.1 $ 374.1 $ 30,181.6 Aging of Gross Unrealized Losses on Securities Available-For-Sale Unrealized Losses Less Than Unrealized Losses More or Equal to One Year Than One Year Total Gross Gross Gross Estimated Unrealized Estimated Unrealized Estimated Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses March 31, 2006 Fixed maturity securities: U.S. Treasury securities & obligations of U.S. Government corporations $ 146.8 $ 4.2 $ 51.1 $ 2.1 $ 197.9 $ 6.3 Agencies not backed by the full faith and credit of the U.S. Government 496.4 11.3 29.3 0.4 525.7 11.7 Obligations of states and political subdivisions 235.9 9.4 29.6 1.1 265.5 10.5 Debt securities issued by foreign governments 20.9 0.8 - - 20.9 0.8 Corporate securities - - Public 4,431.5 121.9 1,599.4 67.9 6,030.9 189.8 Private 2,900.2 77.8 911.1 53.0 3,811.3 130.8 Mortgage-backed securities--U.S.. Government backed 4,801.3 167.6 1,031.4 45.6 5,832.7 213.2 Asset-backed securities 1,625.6 48.3 577.2 22.5 2,202.8 70.8 Total fixed maturities 14,658.6 441.3 4,229.1 192.6 18,887.7 633.9 Equity securities 20.5 0.5 20.5 0.5 Total $ 14,679.1 $ 441.8 $ 4,229.1 $ 192.6 $ 18,908.2 $ 634.4 Percentage of gross unrealized losses 70% 30% December 31, 2005 Fixed maturity securities: U.S. Treasury securities & obligations of U.S. Government corporations $ 37.4 $ 0.8 $ 11.6 $ 0.4 $ 49.0 $ 1.2 Agencies not backed by the full faith and credit of the U.S. Government 329.2 5.4 42.2 1.3 371.4 6.7 Obligations of states and political subdivisions 157.8 3.1 29.7 0.8 187.5 3.9 Debt securities issued by foreign governments 8.6 0.1 - - 8.6 0.1 Corporate securities Public 3,731.0 73.4 1,247.0 48.6 4,978.0 122.0 Private 1,957.3 46.5 767.7 31.0 2,725.0 77.5 Mortgage-backed securities--U.S.. Government backed 4,526.2 96.0 702.9 21.0 5,229.1 117.0 Asset-backed securities 1,516.4 28.2 490.2 17.1 2,006.6 45.3 Total fixed maturities 12,263.9 253.5 3,291.3 120.2 15,555.2 373.7 Equity securities 20.8 0.4 20.8 0.4 Total $ 12,284.7 $ 253.9 $ 3,291.3 $ 120.2 $ 15,576.0 $ 374.1 Percentage of gross unrealized losses 68% 32% 19
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Credit Quality of Fixed Maturity Securities Available-For-Sale December 31, 2005 March 31, 2006 Amortized Fair Amortized Fair ($ in millions) Cost Value Cost Value NAIC Designation Rating Agency Equivalent Designation 1 Aaa/Aa/A $ 19,945.0 $ 20,053.4 $ 19,509.7 $ 19,273.9 2 Baa 8,105.1 8,247.9 7,554.5 7,575.0 3 Ba 1,090.0 1,096.7 1,164.8 1,169.0 4 B 546.1 549.2 488.1 496.6 5 Caa and lower 53.3 60.5 60.5 71.0 6 In or near default 91.3 98.3 54.5 59.5 Total fixed maturities $ 29,830.8 $ 30,106.0 $ 28,832.1 $ 28,645.0 Mortgage Loans by Region and Property Type ($ in millions) Apartment March 31, 2006 Office Warehouse Retail & Other Total New England $ 228.2 $ 15.7 $ 102.9 $ 84.1 $ 430.9 Middle Atlantic 198.3 372.8 365.5 121.8 1,058.4 East North Central 270.1 255.7 620.5 500.1 1,646.4 West North Central 59.9 85.7 67.7 81.5 294.8 South Atlantic 215.3 445.3 852.0 668.4 2,181.0 East South Central 38.9 79.1 122.4 120.3 360.7 West South Central 198.8 144.1 164.6 232.7 740.2 Mountain 169.0 118.6 194.3 259.0 740.9 Pacific 369.1 484.0 415.4 333.5 1,602.0 Subtotal - Principal $ 1,747.6 $ 2,001.0 $ 2,905.3 $ 2,401.4 $ 9,055.3 Valuation allowance (33.0) Unamortized premium 31.3 Change in fair value of hedged mortgage loans and commitments (5.3) Total mortgage loans on real estate, net $ 9,048.3 Apartment December 31, 2005 Office Warehouse Retail & Other Total New England $ 230.0 $ 15.7 $ 112.0 $ 53.7 $ 411.4 Middle Atlantic 211.0 370.2 395.6 119.8 1,096.6 East North Central 316.5 271.2 583.4 493.4 1,664.5 West North Central 75.0 87.4 68.2 81.3 311.9 South Atlantic 211.0 404.5 842.4 690.1 2,148.0 East South Central 39.3 79.7 123.4 121.0 363.4 West South Central 199.4 155.0 149.8 232.0 736.2 Mountain 189.7 120.0 222.3 258.8 790.8 Pacific 404.5 486.0 409.6 324.0 1,624.1 Subtotal - Principal $ 1,876.4 $ 1,989.7 $ 2,906.7 $ 2,374.1 $ 9,146.9 Valuation allowance (34.0) Unamortized premium 35.9 Change in fair value of hedged mortgage loans and commitments (0.2) Total mortgage loans on real estate, net $ 9,148.6 20
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Deferred Policy Acquisition Costs Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Three Months Ended March 31, 2006 Balance, beginning of period $ 1,997.7 $ 294.8 $ 1,410.9 $ (18.0) $ 3,685.4 Capitalization 74.4 9.4 51.3 - 135.1 Amortization (97.6) (10.1) (18.0) - (125.7) Adjustments to unrealized gains and losses on securities available-for-sale and other 99.9 99.9 Balance, end of period $ 1,974.5 $ 294.1 $ 1,444.2 $ 81.9 $ 3,794.7 Year Ended December 31, 2005 Balance, beginning of period $ 2,080.6 $ 305.0 $ 1,312.6 $ (137.1) $ 3,561.1 Capitalization 250.7 37.2 201.1 - 489.0 Amortization (329.3) (47.4) (102.7) - (479.4) Adjustments to unrealized gains and losses on - securities available-for-sale and other (4.3) - (0.1) 119.1 114.7 Balance, end of period $ 1,997.7 $ 294.8 $ 1,410.9 $ (18.0) $ 3,685.4 Year Ended December 31, 2004 Balance, beginning of period $ 2,052.1 $ 303.4 $ 1,222.9 $ (248.5) $ 3,329.9 Capitalization 293.6 41.5 204.1 - 539.2 Amortization (276.1) (39.9) (114.4) - (430.4) Adjustments to unrealized gains and losses on securities available-for-sale and other 11.0 - - 111.4 122.4 Balance, end of period $ 2,080.6 $ 305.0 $ 1,312.6 $ (137.1) $ 3,561.1 Year Ended December 31, 2003 Balance, beginning of period $ 1,885.6 $ 305.3 $ 1,144.0 $ (308.0) $ 3,026.9 Capitalization 376.8 43.8 199.5 - 620.1 Amortization (228.3) (45.7) (120.6) - (394.6) Adjustments to unrealized gains and losses on securities available-for-sale and other 18.0 - - 59.5 77.5 Balance, end of period $ 2,052.1 $ 303.4 $ 1,222.9 $ (248.5) $ 3,329.9 Year Ended December 31, 2002 Balance, beginning of period $ 1,976.6 $ 309.8 $ 1,022.2 $ (94.9) $ 3,213.7 Capitalization 414.7 49.2 204.7 - 668.6 Amortization (528.2) (53.7) (92.7) - (674.6) Adjustments to unrealized gains and losses on securities available-for-sale and other 22.5 - 9.8 (213.1) (180.8) Balance, end of period $ 1,885.6 $ 305.3 $ 1,144.0 $ (308.0) $ 3,026.9 Year Ended December 31, 2001 Balance, beginning of period $ 1,723.8 $ 295.8 $ 874.8 $ (21.7) $ 2,872.7 Capitalization 453.4 61.6 227.7 - 742.7 Amortization (220.0) (47.6) (80.3) - (347.9) Adjustments to unrealized gains and losses on securities available-for-sale and other 19.4 - - (73.2) (53.8) Balance, end of period $ 1,976.6 $ 309.8 $ 1,022.2 $ (94.9) $ 3,213.7 21
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Variable Annuity Deferred Acquisition Costs ($ in millions) March 31, 2006 December 31, 2005 Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 $ 882.5 $ 63.5 $ 3,000.3 $ 200.6 2 3,115.9 192.8 3,521.0 212.8 3 3,634.3 201.5 4,361.5 224.6 4 4,494.4 212.2 4,519.7 199.0 5 4,647.5 185.8 4,752.0 210.0 6 4,838.8 192.8 4,662.3 189.1 7 4,742.8 173.4 3,569.7 128.5 8 3,540.3 119.0 3,006.1 96.8 9 2,908.1 92.3 2,169.5 84.9 10 2,096.6 85.9 2,029.1 75.5 11-15 6,022.1 238.9 4,386.3 168.0 16-20 826.9 32.1 512.5 19.4 21-27 321.3 3.0 306.0 2.2 Total: $ 42,071.5 $ 1,793.2 14.8% $ 40,796.0 $ 1,811.4 13.5% December 31, 2004 December 31, 2003 Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 $ 3,748.9 $ 253.1 $ 4,500.3 $ 310.6 2 4,649.3 259.9 4,638.5 284.0 3 4,844.1 239.2 5,014.8 283.3 4 5,106.3 243.4 4,864.6 275.1 5 4,917.0 206.2 3,886.5 170.6 6 3,813.5 148.0 3,833.3 140.9 7 3,708.0 121.0 3,114.6 116.5 8 2,624.7 101.5 2,685.2 72.8 9 2,315.0 84.8 1,877.4 52.3 10 1,690.1 62.5 1,415.8 35.7 11-15 3,427.8 132.6 2,493.5 61.0 16-20 316.6 13.6 186.4 3.5 21-27 320.6 2.3 325.0 1.2 Total: $ 41,481.9 $ 1,868.1 12.5% $ 38,835.9 $ 1,807.5 12.5% December 31, 2002 December 31, 2001 Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 $ 3,922.1 $ 310.3 $ 5,322.0 $ 322.4 2 4,442.5 312.6 5,585.8 371.5 3 4,327.7 303.1 4,473.6 260.9 4 3,564.3 190.1 4,473.6 235.5 5 3,579.4 158.0 3,836.3 215.1 6 2,996.5 132.1 3,678.8 136.2 7 2,817.0 83.2 2,845.0 100.7 8 1,956.2 59.9 2,030.2 69.8 9 1,410.6 40.9 1,330.4 47.5 10 937.1 27.5 977.7 33.7 11-15 1,590.1 43.9 1,292.4 44.5 16-20 143.9 3.0 184.8 5.5 21-25 194.5 1.7 315.1 0.5 Total: $ 31,881.9 $ 1,666.3 14.4% $ 36,345.7 $ 1,843.8 12.6% 22
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Value of Business Acquired Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Three Months Ended March 31, 2006 Balance, beginning of period $ 29.4 $ 15.7 $ 398.2 $ 6.4 $ 449.7 Amortization (2.3) (1.1) (8.1) (0.1) (11.6) Adjustments to realized and unrealized gains and losses on securities available-for-sale 3.6 1.2 0.4 - 5.2 Balance, end of period $ 30.7 $ 15.8 $ 390.5 $ 6.3 $ 443.3 Year Ended December 31, 2005 Balance, beginning of period $ 27.1 $ 16.5 $ 430.4 $ 6.4 $ 480.4 Amortization (7.2) (3.5) (34.2) (0.1) (45.0) Adjustments to realized and unrealized gains and losses on securities available-for-sale 9.5 2.7 2.0 0.1 14.3 Balance, end of period $ 29.4 $ 15.7 $ 398.2 $ 6.4 $ 449.7 Year Ended December 31, 2004 Balance, beginning of period $ 33.0 $ 19.6 $ 463.6 $ 6.8 $ 523.0 Amortization (7.5) (4.7) (40.1) - (52.3) Adjustments to realized and unrealized gains and losses on securities available-for-sale 1.6 1.6 6.9 (0.4) 9.7 Balance, end of period $ 27.1 $ 16.5 $ 430.4 $ 6.4 $ 480.4 Year Ended December 31, 2003 Balance, beginning of period $ 41.9 $ 23.1 $ 497.7 $ 6.6 $ 569.3 Amortization (6.3) (2.0) (38.0) (0.1) (46.4) Adjustments to realized and unrealized gains and losses on securities available-for-sale and other (2.6) (1.5) 3.9 0.3 0.1 Balance, end of period $ 33.0 $ 19.6 $ 463.6 $ 6.8 $ 523.0 23
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Variable Annuity Guaranteed Minimum Death Benefits ($ in millions) March 31, 2006 December 31, 2005 Account Net Amount at Risk Account Net Amount at Risk GMDB Benefit Type Values Gross Net Values Gross Net Return of premium $ 9,438.2 $ 62.4 $ 24.3 $ 9,272.7 $ 83.3 $ 32.5 Reset 17,494.7 283.0 42.7 17,130.4 388.0 61.8 Ratchet 11,919.9 304.1 22.2 11,233.2 410.3 31.6 Roll-up 627.5 125.6 7.1 629.1 143.8 8.4 Combo 2,591.2 39.4 19.2 2,530.6 45.7 22.3 Subtotal $ 42,071.5 814.5 115.5 $ 40,796.0 1,071.1 156.6 Earnings enhancement $ 444.6 $ 33.5 $ 33.5 $ 418.5 $ 27.6 $ 27.6 Total $ 848.0 $ 149.0 $ 1,098.7 $ 184.2 GAAP GMDB reserves $ 26.9 $ 27.2 Statutory GMDB reserves $ 32.6 $ 38.4 December 31, 2004 December 31, 2003 Account Net Amount at Risk Account Net Amount at Risk GMDB Benefit Type Values Gross Net Values Gross Net Return of premium $ 9,848.6 $ 136.8 $ 54.1 $ 9,713.8 $ 247.8 $ 199.8 Reset 18,084.1 751.7 158.1 17,834.0 1,313.4 579.6 Ratchet 10,322.1 644.5 46.3 8,433.7 1,008.3 147.8 Roll-up 707.2 167.5 9.7 725.7 195.8 22.3 Combo 2,519.9 39.8 19.2 2,128.7 42.0 39.6 Subtotal $ 41,481.9 1,740.3 287.4 $ 38,835.9 2,807.3 989.1 Earnings enhancement $ 310.1 $ 18.0 $ 18.0 $ 314.1 $ 10.9 $ 10.9 Total $ 1,758.3 $ 305.4 $ 2,818.2 $ 1,000.0 December 31, 2002 December 31, 2001 Account Net Amount at Risk Account Net Amount at Risk GMDB Benefit Type Values Gross Net Values Gross Net Return of premium $ 8,743.2 $ 832.0 $ 736.7 $ 11,410.6 $ 471.9 $ 407.2 Reset 15,272.2 3,532.5 1,842.1 17,377.3 1,601.2 700.1 Ratchet 6,087.5 1,977.1 411.2 6,245.9 1,150.3 153.7 Roll-up 675.0 290.9 34.3 817.7 148.0 17.3 Combo 1,104.0 114.8 111.6 494.2 17.0 15.5 Subtotal $ 31,881.9 6,747.3 3,135.9 $ 36,345.7 3,388.4 1,293.8 Earnings enhancement $ 213.1 $ 1.7 $ 1.7 $ 88.6 $ 2.1 $ 2.1 Total $ 6,749.0 $ 3,137.6 $ 3,390.5 $ 1,295.9 Net Amount at Risk, Net of Reinsurance by Benefit Type and Age at March 31, 2006 Wghtd. Avg. GMDB Benefit Type 0 to 50 51 to 60 61 to 70 71 to 80 Over 81 Total Attained Age Return of premium $ 6.2 $ 8.7 $ 6.5 $ 2.1 $ 0.8 $ 24.3 60 Reset 4.4 10.2 15.2 10.5 2.4 42.7 63 Ratchet 2.4 5.3 7.5 4.5 2.4 22.2 65 Roll-up 0.5 1.5 1.8 1.8 1.5 7.1 69 Combo 1.2 3.7 5.8 5.7 2.8 19.2 68 Subtotal 14.7 29.4 36.8 24.6 9.9 115.5 64 Earnings enhancement 4.1 10.1 13.9 5.4 - 33.5 61 Total $ 18.8 $ 39.5 $ 50.7 $ 30.0 $ 9.9 $ 149.0 63 Definition of GMDB Benefit Types Return of premium: provides the greater of account value or total deposits made to the contract less any partial withdrawals and assessments, which is referred to as quot;net premiums.quot; In general, there is no lock in age for this benefit, however for some contracts, the GMDB reverts to the account value at a specified age, typically age 75. Reset: provides the greater of a return of premium death benefit or the most recent five-year anniversary (prior to lock in age) account value adjusted for withdrawals. For most contracts, this GMDB locks in at age 86 or 90 and for others the GMDB reverts to the account value at age 75, 85, 86 or 90. Ratchet: provides the greater of a return of premium death benefit or the highest quot;anniversaryquot; account value (prior to age 86) adjusted for withdrawals. Currently, there are three versions of ratchet, with the difference being based on the definition of anniversary: monthaversary - evaluated monthly, annual - evaluated annually, and five-year - evaluated every fifth year. The majority of the business is an annual ratchet. Rollup: provides the greater of a return of premium death benefit or premiums adjusted for withdrawals accumulated at generally 5% simple interest up to the earlier of age 86 or 200% of adjusted premiums. There are two variations of this benefit. For certain contracts, this GMDB locks in at age 86 and for others the GMDB reverts to the account value at age 75. Combo: provides the greater of annual ratchet death benefit or the rollup death benefit. This benefit locks in at either age 81 or 86. Earnings enhancement: provides an enhancement to the death benefit that is a specified percentage of the adjusted earnings accumulated on the contract at the date of death. There are two versions of this benefit, one where the benefit expires at age 86 and a credit of 4% of account value is deposited into the contract and the second where the benefit doesn't have an end age, but has a cap on the payout and is paid upon the first death in a spousal situation. Both benefits have age limitations. This benefit is paid in addition to any other death benefits paid under the contract. 24
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Variable Annuity Guaranteed Minimum Accumulation Benefits ($ in millions) March 31, 2006 December 31, 2005 Account Net Amount at Risk Account Net Amount at Risk GMAB Benefit Type Values Gross Net Values Gross Net 5 Year $ 1,305.4 $ 0.2 $ 0.2 $ 1,041.8 $ 0.5 $ 0.5 7 Year 1,297.3 0.1 0.1 1,103.5 0.2 0.2 10 Year 656.3 - - 595.5 0.1 0.1 Total $ 3,259.0 $ 0.3 $ 0.3 $ 2,740.8 $ 0.8 $ 0.8 CPPLI included in totals $ 1,437.0 $ 0.2 $ 0.2 $ 939.1 $ 0.6 $ 0.6 December 31, 2004 Account Net Amount at Risk GMAB Benefit Type Values Gross Net 5 Year $ 512.2 $ 0.1 $ 0.1 7 Year 647.5 - - 10 Year 332.4 - - Total $ 1,492.1 $ 0.1 $ 0.1 Individual Variable Annuity Guaranteed Minimum Income Benefits March 31, 2006 December 31, 2005 Account Net Amount at Risk Account Net Amount at Risk GMIB Benefit Type Values Gross Net Values Gross Net Ratchet $ 458.5 $ 0.2 $ - $ 444.7 $ 0.3 $ - Roll-up 1,217.3 3.8 - 1,189.3 5.0 - Combo 0.6 - - 0.5 - - Total $ 1,676.4 $ 4.0 $ - $ 1,634.5 $ 5.3 $ - December 31, 2004 December 31, 2003 Account Net Amount at Risk Account Net Amount at Risk GMIB Benefit Type Values Gross Net Values Gross Net Ratchet $ 439.7 $ 0.7 $ - $ 418.0 $ 1.0 $ - Roll-up 1,188.7 7.2 - 1,132.2 8.6 - Combo 1.0 - - 1.1 - - Total $ 1,629.4 $ 7.9 $ - $ 1,551.3 $ 9.6 $ - December 31, 2002 December 31, 2001 Account Net Amount at Risk Account Net Amount at Risk GMIB Benefit Type Values Gross Net Values Gross Net Ratchet $ 307.8 $ 4.6 $ - $ 151.1 $ 0.8 $ - Roll-up 664.4 20.4 - 329.2 1.5 - Combo 0.1 - - - - - Total $ 972.3 $ 25.0 $ - $ 480.3 $ 2.3 $ - Definition of Benefit Types 5 Year, 7 Year, 10 Year: the waiting period required to receive the guaranteed accumulation benefit. Ratchet: provides an annuitization value equal to the greater of account value, net premiums paid or the highest one-year anniversary account value (prior to age 86) adjusted for withdrawals. Rollup: provides an annuitization value equal to the greater of account value and premiums adjusted for withdrawals accumulated at 5% compound interest up to the earlier of age 86 or 200% of adjusted premiums. Combo: provides an annuitization value equal to the greater of account value, ratchet GMIB benefit or rollup GMIB benefit. CPPLI: Capital Preservation Plus Lifetime Income is a living benefit rider that combines a GMAB feature in its first five to 10 years with a lifetime withdrawal benefit which begins upon the maturity of the GMAB and extends for the duration of the insured's life. 25
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Variable Annuity Guaranteed Minimum Death Benefit Reserve Activity ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Balance, beginning of period $ 23.7 $ 26.5 $ 25.3 $ 24.7 $ 27.2 Expense provision 8.0 8.4 8.4 8.2 8.3 Net claims paid (5.2) (9.6) (9.0) (5.7) (8.6) Balance, end of period $ 26.5 $ 25.3 $ 24.7 $ 27.2 $ 26.9 Individual Variable Annuity Guaranteed Minimum Accumulation Benefit Embedded Derivative Activity ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Balance, beginning of period $ 23.1 $ 24.0 $ 45.8 $ 53.4 $ 67.9 Value of new business sold 5.8 13.2 14.3 20.7 26.8 Change in fair value (4.9) 8.6 (6.7) (6.2) (17.1) Balance, end of period $ 24.0 $ 45.8 $ 53.4 $ 67.9 $ 77.6 CPPLI included in end of period balance $ 0.1 $ 3.6 $ 6.8 $ 12.0 $ 16.3 Individual Fixed Annuity and Fixed Option of Variable Annuity Summary of Crediting Rate Detail as of March 31, 2006 Ratchet Reset Account Wtd. Avg. Account Wtd. Avg. ($ in millions) Value Crediting Rate Value Crediting Rate Minimum interest rate of 3.50% or greater $ 26.5 - $ 1,072.5 4.23% Minimum interest rate of 3.0% to 3.49% 2,808.9 4.78% 5,335.2 3.09% Minimum interest rate lower than 3.00% 879.8 3.28% 649.1 3.49% MVA with no minimum interest rate guarantee - - - - Total $ 3,715.2 4.39% $ 7,056.8 3.30% MVA & Other Total Account Wtd. Avg. Account Wtd. Avg. Value Crediting Rate Value Crediting Rate Minimum interest rate of 3.50% or greater $ - - 1,099.0 4.13% Minimum interest rate of 3.0% to 3.49% - - 8,144.1 3.67% Minimum interest rate lower than 3.00% 13.9 3.58% 1,542.8 3.37% MVA with no minimum interest rate guarantee 1,594.9 3.06% 1,594.9 3.06% Total $ 1,608.8 3.06% $ 12,380.8 3.60% 26
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Historical Financial Highlights ($ in millions except for per share data) 2001 2002 2003 2004 2005 Operating Revenues Individual investments $ 1,090.5 $ 1,210.4 $ 1,392.8 $ 1,477.4 $ 1,514.5 Retirement plans 983.0 919.3 953.3 1,007.9 1,073.7 Individual protection 834.8 1,001.9 1,348.7 1,350.1 1,348.5 Corporate and other 164.4 220.4 278.1 310.0 385.0 Total operating revenues $ 3,072.7 $ 3,352.0 $ 3,972.9 $ 4,145.4 $ 4,321.7 Net realized gains (losses) on investments, hedging instruments and hedged items, excluding securitizations (1) (16.1) (88.1) (86.3) (40.9) 18.2 Total revenues $ 3,056.6 $ 3,263.9 $ 3,886.6 $ 4,104.5 $ 4,339.9 Pre-tax Operating Earnings (Loss) Individual investments $ 231.3 $ (120.5) $ 182.9 $ 234.4 $ 237.0 Retirement plans 179.1 139.6 148.8 178.6 187.5 Individual protection 189.8 188.1 215.5 242.7 258.2 Corporate and other (11.5) 18.2 54.8 58.6 55.7 Pre-tax operating earnings $ 588.7 $ 225.4 $ 602.0 $ 714.3 $ 738.4 Federal income tax expense 151.1 24.6 148.7 181.2 126.6 Net operating earnings $ 437.6 $ 200.8 $ 453.3 $ 533.1 $ 611.8 Net realized gains (losses) on investments, hedging instruments and hedged items, excluding securitizations, net of taxes (1) (10.4) (57.4) (56.2) (26.6) 11.9 Adjustment to DAC amortization related to net realized gains (losses), net of taxes - - - - (0.5) Discontinued operations, net of taxes (7.3) 0.8 1.3 (1.1) (24.5) Cumulative effect of adoption of accounting principles, net of taxes (7.1) - (0.6) (3.4) - Net income $ 412.8 $ 144.2 $ 397.8 $ 502.0 $ 598.7 Per Diluted Share Net operating earnings $ 3.39 $ 1.51 $ 2.98 $ 3.49 $ 3.98 Net realized gains (losses) on investments, hedging instruments and hedged items, excluding securitizations, net of taxes (1) (0.08) (0.43) (0.38) (0.18) 0.08 Adjustment to DAC amortization related to net realized gains (losses), net of taxes - - - - - Discontinued operations, net of taxes (0.06) 0.01 0.01 (0.01) (0.16) Cumulative effect of adoption of accounting principles, net of taxes (0.05) - - (0.02) - Net income $ 3.20 $ 1.09 $ 2.61 $ 3.28 $ 3.90 Sales by Channel Non-affiliated Independent broker/dealers $ 4,547.7 $ 4,391.2 $ 4,615.1 $ 5,223.2 $ 5,266.0 Wirehouse and regional firms 2,454.7 2,204.8 1,995.0 1,992.1 1,912.5 Financial institutions 3,577.1 4,180.6 3,758.2 2,618.5 1,808.0 Pension plan administrators 1,018.3 747.4 574.8 476.1 469.0 Life specialists 508.6 510.6 387.5 382.8 382.4 Affiliated Nationwide Retirement Solutions 2,693.2 2,633.1 3,209.9 3,665.9 3,914.7 Nationwide agents 714.8 736.7 686.3 714.3 757.8 Nationwide Financial Network - 274.5 793.6 760.9 658.0 The 401(k) Company 403.7 472.5 680.9 893.1 1,342.3 TBG Financial 233.8 146.9 160.9 184.2 275.4 Total $ 16,151.9 $ 16,298.3 $ 16,862.2 $ 16,911.1 $ 16,786.1 (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes). Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. 27
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Historical Financial Highlights ($ in millions except for per share data) 2001 2002 2003 2004 2005 Balance Sheet Data Total assets $ 91,960.9 $ 95,560.3 $ 111,088.2 $ 116,950.6 $ 116,159.9 Total customer funds managed and administered $ 100,703.2 $ 102,853.8 $ 132,061.6 $ 149,227.7 $ 155,612.9 Shareholder's equity Including AOCI $ 3,443.3 $ 4,443.3 $ 4,875.4 $ 5,215.1 $ 5,350.4 AOCI 202.5 400.3 504.9 432.2 100.7 Excluding AOCI $ 3,240.8 $ 4,043.0 $ 4,370.5 $ 4,782.9 $ 5,249.7 Net operating return on average equity excluding AOCI 14.2% 5.9% 10.8% 11.7% 12.2% (1) Adjusted net operating return on average equity excluding AOCI 14.2% 5.9% 10.8% 11.7% 11.3% Statutory capital and surplus $ 1,759.8 $ 2,015.7 $ 2,730.0 $ 2,967.5 $ 3,262.1 Stock Data Closing Price $ 41.46 $ 28.65 $ 33.06 $ 38.23 $ 44.00 Weighted average shares outstanding Basic 128.9 132.4 151.8 152.1 152.9 Diluted 129.2 132.6 152.3 152.9 153.6 Book value per share Including AOCI $ 26.71 $ 29.25 $ 32.10 $ 34.20 $ 35.08 Excluding AOCI $ 25.14 $ 26.62 $ 28.77 $ 31.36 $ 34.42 (1) 2005 return adjusted for $42.6 million impact of one-time tax adjustments associated with separate account dividend received deductions and $14.1 million charge related to calling of trust preferred securities. Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. 28
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Historical Consolidated Earnings Trends ($ in millions) 2001 2002 2003 2004 2005 Operating Revenues Asset fees $ 613.9 $ 547.6 $ 547.2 $ 620.7 $ 639.9 Cost of insurance charges 201.9 266.5 371.3 379.7 388.5 Administrative fees 128.5 125.5 107.7 117.9 114.9 Surrender fees 72.8 85.3 94.2 104.3 98.2 Total policy charges 1,017.1 1,024.9 1,120.4 1,222.6 1,241.5 Traditional life premiums 251.1 302.3 426.2 402.7 399.9 Net investment income 1,727.2 1,892.5 2,198.0 2,231.7 2,343.9 Realized gain on securitizations 1.9 - - - - Operating realized gains and (losses) (1.2) 8.9 15.7 8.7 2.6 Other income 76.6 123.4 212.6 279.7 333.8 Total operating revenues 3,072.7 3,352.0 3,972.9 4,145.4 4,321.7 Benefits Interest credited 1,235.7 1,260.7 1,367.6 1,328.3 1,380.9 Life insurance and annuity benefits 296.6 392.0 581.7 548.6 574.9 Policyholder dividends 41.7 63.5 105.7 101.4 107.3 Total benefits 1,574.0 1,716.2 2,055.0 1,978.3 2,063.1 Expenses Commissions 688.4 629.0 594.9 565.4 546.7 General operating expenses 561.5 683.5 804.3 841.5 808.4 Debt extinguishment costs - - - - 21.7 Deferral of policy acquisition costs (742.7) (668.6) (620.1) (539.2) (489.0) Subtotal 507.2 643.9 779.1 867.7 887.8 Amortization of policy acquisition costs 347.9 674.6 394.6 430.4 479.4 Amortization of value of business acquired - 15.2 46.4 52.3 45.0 Interest expense on debt 54.9 76.7 95.8 102.4 108.0 Total expenses 910.0 1,410.4 1,315.9 1,452.8 1,520.2 Pre-tax operating earnings $ 588.7 $ 225.4 $ 602.0 $ 714.3 $ 738.4 Federal income tax expense 151.1 24.6 148.7 181.2 126.6 Net operating earnings $ 437.6 $ 200.8 $ 453.3 $ 533.1 $ 611.8 Net realized gains (losses) on investments, hedging instruments and hedged items, excluding securitizations, net of taxes (1) Realized gains on sales, net of hedging 27.7 14.4 69.0 64.8 63.0 Realized losses on sales, net of hedging (14.7) (10.3) (20.8) (19.5) (18.4) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (52.5) (78.6) (110.7) (67.1) (26.9) Credit default swaps (0.3) (4.2) 8.6 0.3 (4.8) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.5 6.2 0.8 (3.4) 0.8 Amounts credited to policyholder dividend obligation - - (3.5) (4.7) (3.3) Adjustment to VOBA amortization 28.9 15.1 0.4 3.0 1.5 Subtotal (10.4) (57.4) (56.2) (26.6) 11.9 Adjustment to DAC amortization related to net realized gains (losses), net of taxes - - - - (0.5) Discontinued operations, net of taxes (7.3) 0.8 1.3 (1.1) (24.5) Cumulative effect of adoption of accounting principles, net of taxes (7.1) - (0.6) (3.4) - Net income $ 412.8 $ 144.2 $ 397.8 $ 502.0 $ 598.7 (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes). Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. 29
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Historical Consolidated Balance Sheet ($ in millions, except per share data) 2001 2002 2003 2004 2005 Assets Investments Securities available-for-sale: Fixed maturity securities $ 18,548.3 $ 27,754.2 $ 30,787.1 $ 31,516.8 $ 30,106.0 Equity securities 150.5 134.7 128.7 87.0 75.6 Trading assets - - 4.9 15.9 34.4 Mortgage loans 7,113.1 8,486.5 8,964.7 9,267.5 9,148.6 Real estate 172.0 145.6 123.4 108.3 108.7 Policy loans 592.7 986.4 963.2 987.2 930.6 Other long-term investments 125.0 205.0 194.6 604.2 691.9 Short-term investments 1,112.8 1,420.1 1,970.3 2,009.9 2,073.2 Total investments 27,814.4 39,132.5 43,136.9 44,596.8 43,169.0 Cash 65.0 21.7 11.5 52.4 16.4 Accrued investment income 309.7 402.4 439.6 428.7 396.3 Deferred policy acquisition costs 3,213.7 3,026.9 3,329.9 3,561.1 3,685.4 Value of business acquired - 569.3 523.0 480.4 449.7 Other intangible assets - 58.7 52.3 48.7 45.6 Goodwill 130.0 399.4 406.7 382.3 364.5 Other assets 781.4 1,601.1 2,250.7 2,497.0 2,069.2 Assets held in separate accounts 59,646.7 50,348.3 60,937.6 64,903.2 65,963.8 Total assets $ 91,960.9 $ 95,560.3 $ 111,088.2 $ 116,950.6 $ 116,159.9 Liabilities and shareholders' equity Future policy benefits and claims $ 25,491.6 $ 36,274.3 $ 40,049.3 $ 41,077.2 $ 39,748.1 Short-term debt 100.0 2.7 205.3 230.8 252.3 Long term debt 897.0 1,197.6 1,405.6 1,406.0 1,398.0 Other liabilities 2,382.3 3,294.1 3,615.0 4,118.3 3,447.3 Liabilities related to separate accounts 59,646.7 50,348.3 60,937.6 64,903.2 65,963.8 88,517.6 91,117.0 106,212.8 111,735.5 110,809.5 Shareholders' equity 3,443.3 4,443.3 4,875.4 5,215.1 5,350.4 Total liabilities and shareholders' equity $ 91,960.9 $ 95,560.3 $ 111,088.2 $ 116,950.6 $ 116,159.9 Capital Structure 2001 2002 2003 2004 2005 Total capital, including AOCI $ 4,340.3 $ 5,640.9 $ 6,281.0 $ 6,621.1 $ 6,748.4 Less AOCI 202.5 400.3 504.9 432.2 100.7 Total capital, excluding AOCI $ 4,137.8 $ 5,240.6 $ 5,776.1 $ 6,188.9 $ 6,647.7 Leverage including AOCI Long-term debt--to--total capital 20.7% 21.2% 22.4% 21.2% 20.7% Leverage excluding AOCI Long-term debt--to--total capital 21.7% 22.9% 24.3% 22.7% 21.0% Ratio of pre-tax operating earnings before interest expense to interest expense 11.7X 3.9X 7.3X 8.0X 7.8X 30
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Investments Historical Earnings Trends ($ in millions) 2001 2002 2003 2004 2005 Operating Revenues Asset fees $ 420.5 $ 375.6 $ 370.9 $ 435.5 $ 461.9 Administrative fees 18.6 23.3 12.1 15.7 16.2 Surrender fees 55.8 61.1 56.0 62.2 62.1 Total policy charges 494.9 460.0 439.0 513.4 540.2 Net Investment Income General account assets 577.9 717.4 886.5 895.3 895.9 Charge for invested capital (43.2) (36.4) (26.1) (22.5) (26.0) Total net investment income 534.7 681.0 860.4 872.8 869.9 Premiums on income products 60.9 69.4 93.4 90.8 102.9 Other income - - - 0.4 1.5 Total operating revenues 1,090.5 1,210.4 1,392.8 1,477.4 1,514.5 Benefits Interest credited 433.1 513.2 637.5 606.1 589.1 Immediate annuity benefits 53.4 55.1 82.0 76.1 89.2 Policy benefits 31.5 61.6 78.5 63.1 66.2 Total benefits 518.0 629.9 798.0 745.3 744.5 Expenses Commissions 409.5 381.7 345.5 288.3 257.5 General operating expenses 165.1 202.5 208.6 219.4 189.7 Deferral of policy acquisition costs (453.4) (414.7) (376.8) (293.6) (250.7) Subtotal 121.2 169.5 177.3 214.1 196.5 Amortization of policy acquisition costs 220.0 528.2 228.3 276.1 329.3 Amortization of value of business acquired - 3.3 6.3 7.5 7.2 Total expenses 341.2 701.0 411.9 497.7 533.0 Pre-tax operating earnings (loss) $ 231.3 $ (120.5) $ 182.9 $ 234.4 $ 237.0 Key Ratios/Statistics Average Account Values: General account $ 7,709.7 $ 10,793.7 $ 15,340.9 $ 16,211.1 $ 15,966.7 Separate account 33,560.7 30,091.0 29,170.6 34,198.8 35,600.5 Advisory services program - - 7.8 99.1 309.3 Total average individual investment account values $ 41,270.3 $ 40,884.7 $ 44,519.3 $ 50,509.0 $ 51,876.5 Earned rate 7.40% 6.62% 5.78% 5.52% 5.56% Credited rate 5.55% 4.73% 4.16% 3.74% 3.65% Interest spread on average general account values 1.86% 1.88% 1.62% 1.78% 1.91% Prepayment penalties and bond call premium income 0.07% 0.06% 0.05% 0.12% 0.20% Base interest spread on average general account values 1.78% 1.82% 1.57% 1.66% 1.71% Total asset fees to average separate account values 1.25% 1.25% 1.27% 1.27% 1.30% General operating expenses to average account values 0.40% 0.50% 0.47% 0.43% 0.37% Pre-tax operating earnings (loss) to average account values 0.56% (0.29%) 0.41% 0.46% 0.46% Pre-tax operating earnings (loss) to operating revenues 21.2% (10.0%) 13.1% 15.9% 15.6% Average allocated capital $ 1,335.5 $ 1,658.8 $ 1,805.6 $ 1,747.0 $ 1,671.0 Return on average allocated capital 13.4% (2.9%) 8.2% 10.4% 13.0% Adjusted return on average allocated capital (1) 13.4% (2.9%) 8.2% 10.4% 11.5% (1) 2005 return adjusted for $24.3 million impact of one-time tax adjustments associated with separate account dividend received deductions. Note: All prior periods have been reclassified to reflect NFS Bermuda as discontinued operations. Individual Investments Account Value Activity ($ in millions) 2001 2002 2003 2004 2005 Individual Variable Annuities Balance, beginning of period $ 39,753.1 $ 36,345.7 $ 31,881.9 $ 38,835.9 $ 41,481.9 Deposits 6,232.8 5,038.1 5,023.8 4,409.2 3,661.2 Withdrawals and surrenders (4,579.4) (4,852.1) (4,347.8) (4,964.4) (5,574.2) Net flows 1,653.4 186.0 676.0 (555.2) (1,913.0) Investment performance/interest credited (4,516.5) (4,852.6) 6,757.7 3,681.9 2,922.1 Policy charges (494.8) (459.7) (437.2) (515.0) (543.4) Benefits and other (49.5) (0.6) (42.5) 34.3 9.0 Acquisitions/(terminations), net - 663.1 - - (1,160.6) Balance, end of period $ 36,345.7 $ 31,881.9 $ 38,835.9 $ 41,481.9 $ 40,796.0 Individual Fixed Annuities Balance, beginning of period $ 2,422.0 $ 4,250.2 $ 7,338.1 $ 8,630.7 $ 8,902.5 Deposits 1,927.0 2,392.3 1,553.4 672.9 160.9 Withdrawals and surrenders (331.1) (474.4) (605.1) (753.6) (1,044.0) Net flows 1,595.9 1,917.9 948.3 (80.7) (883.1) Policyholder interest credited 178.7 298.6 364.8 362.7 327.7 Policy charges (2.1) (3.6) (8.1) (9.9) (11.4) Benefits and other 55.7 (2.8) (12.4) (0.3) (4.3) Acquisitions/(terminations), net - 877.8 - - (289.6) Balance, end of period $ 4,250.2 $ 7,338.1 $ 8,630.7 $ 8,902.5 $ 8,041.8 Income Products $ 1,590.8 $ 1,676.5 $ 1,840.7 $ 1,901.6 $ 1,978.3 Advisory services program $ - $ - $ 26.6 $ 195.9 $ 411.5 Total individual investment account values $ 42,186.7 $ 40,896.5 $ 49,333.9 $ 52,481.9 $ 51,227.6 31
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Investments Account Values by Product ($ in millions) 2001 2002 2003 2004 2005 Individual Variable Annuities BEST of AMERICA products $ 30,779.3 $ 25,880.2 $ 31,058.5 $ 33,573.0 $ 32,937.0 Private label annuities 5,558.8 5,339.5 7,123.4 7,350.9 7,398.9 Nationwide Financial Network and other 7.6 662.2 654.0 558.0 460.1 Total individual variable annuities $ 36,345.7 $ 31,881.9 $ 38,835.9 $ 41,481.9 $ 40,796.0 Individual Fixed Annuities $ 4,250.2 $ 7,338.1 $ 8,630.7 $ 8,902.5 $ 8,041.8 Income Products $ 1,590.8 $ 1,676.5 $ 1,840.7 $ 1,901.6 $ 1,978.3 Advisory Services Program $ - $ - $ 26.6 $ 195.9 $ 411.5 Total individual investment account values $ 42,186.7 $ 40,896.5 $ 49,333.9 $ 52,481.9 $ 51,227.6 Individual Investments Sales by Product ($ in millions) 2001 2002 2003 2004 2005 Individual Variable Annuities BEST of AMERICA products $ 4,190.3 $ 3,824.7 $ 4,066.8 $ 3,674.3 $ 3,135.5 Private label annuities 1,398.3 795.3 659.3 449.0 346.6 Nationwide Financial Network and other 2.8 2.5 9.3 7.0 4.7 Total individual variable annuities $ 5,591.4 $ 4,622.5 $ 4,735.4 $ 4,130.3 $ 3,486.8 Individual Fixed Annuities $ 1,906.4 $ 2,564.6 $ 1,824.5 $ 858.8 $ 194.4 Income Products $ 127.8 $ 143.2 $ 153.2 $ 168.4 $ 196.7 Advisory Services Program $ - $ - $ 25.7 $ 181.0 $ 231.3 Total individual investment sales $ 7,625.6 $ 7,330.3 $ 6,738.8 $ 5,338.5 $ 4,109.2 Individual Investments Sales by Channel ($ in millions) 2001 2002 2003 2004 2005 Individual Variable Annuities Non-affiliated Independent broker/dealers $ 2,235.2 $ 1,750.1 $ 1,683.7 $ 1,534.6 $ 1,304.3 Wirehouse and regional firms 1,581.1 1,264.1 1,086.4 991.6 821.9 Financial institutions 1,548.6 1,313.9 1,657.0 1,270.8 1,031.5 Life specialists - - 3.4 2.3 0.3 Affiliated Nationwide Retirement Solutions - - - - - Nationwide agents 226.5 214.8 185.3 224.6 230.3 Nationwide Financial Network - 79.6 119.6 106.4 98.5 Total individual variable annuities $ 5,591.4 $ 4,622.5 $ 4,735.4 $ 4,130.3 $ 3,486.8 Individual Fixed Annuities Non-affiliated Independent broker/dealers $ 17.8 $ 47.3 $ 48.7 $ 17.1 $ 7.0 Wirehouse and regional firms 64.0 133.0 58.0 20.6 8.2 Financial institutions 1,758.3 2,224.0 1,628.7 774.3 129.4 Pension plan administrators - 3.4 - - - Affiliated Nationwide Retirement Solutions - 13.2 - - - Nationwide agents 66.3 126.0 60.7 38.6 44.3 Nationwide Financial Network - 17.7 28.4 8.2 5.5 Total individual fixed annuities $ 1,906.4 $ 2,564.6 $ 1,824.5 $ 858.8 $ 194.4 Income Products Non-affiliated Independent broker/dealers $ 42.3 $ 61.9 $ 75.6 $ 70.8 $ 76.9 Wirehouse and regional firms 7.5 14.2 44.9 52.2 63.4 Financial institutions 14.7 65.4 15.5 23.4 29.2 Pension plan administrators 4.9 - - - - Affiliated Nationwide Retirement Solutions 44.3 - - - - Nationwide agents 14.1 1.7 7.5 8.7 12.7 Nationwide Financial Network - - 9.7 13.3 14.5 Total income products $ 127.8 $ 143.2 $ 153.2 $ 168.4 $ 196.7 Advisory Services Program Non-affiliated Independent broker/dealers $ - $ - $ 21.2 $ 160.0 $ 205.3 Wirehouse and regional firms - - - - - Financial institutions - - 3.0 8.9 8.1 Pension plan administrators - - - - - Affiliated Nationwide Financial Network - - 1.5 12.1 17.9 Total advisory services program $ - $ - $ 25.7 $ 181.0 $ 231.3 Total individual investment sales $ 7,625.6 $ 7,330.3 $ 6,738.8 $ 5,338.5 $ 4,109.2 32
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Retirement Plans Historical Earnings Trends ($ in millions) 2001 2002 2003 2004 2005 Operating Revenues Asset fees $ 176.8 $ 151.5 $ 146.9 $ 150.8 $ 137.8 Administrative fees 21.7 15.9 8.8 8.9 8.7 Surrender fees 7.5 6.7 5.7 12.1 8.2 Total policy charges 206.0 174.1 161.4 171.8 154.7 Net investment income 708.5 655.3 662.9 647.6 661.4 Other income 68.5 89.9 129.0 188.5 257.6 Total operating revenues 983.0 919.3 953.3 1,007.9 1,073.7 Benefits Interest credited 518.3 467.8 458.9 446.1 455.0 Expenses Commissions 89.8 85.8 92.7 111.3 133.3 General operating expenses 209.8 221.9 249.0 268.8 284.2 Deferral of policy acquisition costs (61.6) (49.2) (43.8) (41.5) (37.2) Subtotal 238.0 258.5 297.9 338.6 380.3 Amortization of policy acquisition costs 47.6 53.7 45.7 39.9 47.4 Amortization of value of business acquired - (0.3) 2.0 4.7 3.5 Total expenses 285.6 311.9 345.6 383.2 431.2 Pre-tax operating earnings $ 179.1 $ 139.6 $ 148.8 $ 178.6 $ 187.5 Key Ratios/Statistics Average Account Values: General account $ 9,088.3 $ 8,888.5 $ 9,786.0 $ 10,175.6 $ 10,881.2 Separate account 23,149.9 19,505.3 18,743.7 20,287.9 19,792.0 Non insurance assets 952.5 2,142.2 4,312.4 8,315.6 12,500.3 Administration only 13,303.5 14,833.4 22,590.3 30,078.1 36,217.3 Total average retirement plan account values $ 46,494.2 $ 45,369.4 $ 55,432.4 $ 68,857.2 $ 79,390.8 Earned rate 7.80% 7.37% 6.77% 6.36% 6.08% Credited rate 5.70% 5.26% 4.69% 4.38% 4.18% Interest spread on average general account values 2.10% 2.11% 2.08% 1.98% 1.90% Prepayment penalties and bond call premium income 0.16% 0.11% 0.21% 0.18% 0.20% Base interest spread on average general account values 1.94% 2.00% 1.87% 1.80% 1.70% Total asset fees to average separate account values 0.76% 0.78% 0.78% 0.74% 0.70% General operating expenses to average account values 0.45% 0.49% 0.45% 0.39% 0.36% Pre-tax operating earnings to average account values 0.39% 0.31% 0.27% 0.26% 0.24% Pre-tax operating earnings to operating revenues 18.2% 15.2% 15.6% 17.7% 17.5% Average allocated capital $ 627.6 $ 611.7 $ 689.2 $ 724.4 $ 773.9 Return on average allocated capital 21.5% 18.0% 16.6% 18.5% 20.4% (1) Adjusted return on average allocated capital 21.5% 18.0% 16.6% 18.5% 18.5% (1) 2005 return adjusted for $14.6 million impact of one-time tax adjustments associated with separate account dividend received deductions. Retirement Plans Account Value Activity ($ in millions) 2001 2002 2003 2004 2005 Private Sector Pension Plans Balance, beginning of period $ 21,161.4 $ 21,213.0 $ 21,987.2 $ 29,678.9 $ 37,736.0 New deposits/sales 4,510.8 5,087.8 5,506.5 6,512.9 7,447.3 Participant withdrawals and surrenders (3,567.4) (4,155.9) (4,402.6) (5,209.3) (5,872.4) Net flows 943.4 931.9 1,103.9 1,303.6 1,574.9 Investment performance/interest credited (1,525.4) (2,244.4) 4,837.0 3,688.5 3,070.0 Policy charges (151.6) (150.9) (196.6) (198.0) (216.5) Net, case acquisitions/(terminations) 785.2 706.4 1,947.4 3,263.0 742.1 Acquired business - 1,531.2 - - - Balance, end of period $ 21,213.0 $ 21,987.2 $ 29,678.9 $ 37,736.0 $ 42,906.5 Public Sector Pension Plans Balance, beginning of period $ 24,364.9 $ 26,076.2 $ 23,537.6 $ 34,545.4 $ 38,925.2 New deposits/sales 2,622.6 2,581.8 3,178.9 3,637.1 3,881.6 Participant withdrawals and surrenders (1,807.5) (2,082.0) (1,878.3) (2,242.5) (2,638.9) Net flows 815.1 499.8 1,300.6 1,394.6 1,242.7 Investment performance/interest credited (1,795.2) (2,205.4) 4,781.0 2,869.6 2,577.1 Policy charges (77.0) (62.3) (57.6) (65.8) (69.4) Net, case acquisitions/(terminations) 2,768.4 (770.7) 4,983.8 181.4 (2,583.6) Balance, end of period $ 26,076.2 $ 23,537.6 $ 34,545.4 $ 38,925.2 $ 40,092.0 Total retirement plan account values $ 47,289.2 $ 45,524.8 $ 64,224.3 $ 76,661.2 $ 82,998.5 33
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Retirement Plans Account Values by Product ($ in millions) 2001 2002 2003 2004 2005 Private Sector Pension Plans BEST of AMERICA annuity products $ 11,583.3 $ 9,229.3 $ 9,818.1 $ 8,845.8 $ 7,791.9 BEST of AMERICA trust products 1,364.2 2,878.3 6,212.3 10,558.4 14,479.5 Subtotal BEST of AMERICA 12,947.5 12,107.6 16,030.4 19,404.2 22,271.4 The 401(k) Company 3,443.3 3,817.2 6,889.7 11,232.9 13,147.7 Nationwide Financial Network products - 1,494.5 1,584.1 1,483.7 1,378.4 Nationwide employee and agent benefit plans 4,225.7 3,954.2 4,530.2 4,985.3 5,504.2 Other 596.5 613.7 644.5 629.9 604.8 Total private sector pension plans $ 21,213.0 $ 21,987.2 $ 29,678.9 $ 37,736.0 $ 42,906.5 Public Sector Pension Plans IRC Section 457 annuities $ 14,288.8 $ 12,065.1 $ 13,916.9 $ 14,889.2 $ 15,790.2 Administration only agreements 11,787.4 11,472.5 20,628.5 24,036.0 24,301.8 Total public sector pension plans $ 26,076.2 $ 23,537.6 $ 34,545.4 $ 38,925.2 $ 40,092.0 Total retirement plan account values $ 47,289.2 $ 45,524.8 $ 64,224.3 $ 76,661.2 $ 82,998.5 Retirement Plans Sales by Product ($ in millions) 2001 2002 2003 2004 2005 Private Sector Pension Plans BEST of AMERICA annuity products $ 3,067.6 $ 2,611.2 $ 2,034.9 $ 1,679.7 $ 1,407.8 BEST of AMERICA trust products 834.9 1,617.0 2,110.2 3,232.0 3,974.9 Subtotal BEST of AMERICA 3,902.5 4,228.2 4,145.1 4,911.7 5,382.7 The 401(k) Company 403.7 472.5 681.0 893.1 1,342.3 Nationwide Financial Network products - 95.4 366.4 335.8 205.9 Other 56.9 46.8 31.0 28.1 39.1 Total private sector pension plans $ 4,363.1 $ 4,842.9 $ 5,223.5 $ 6,168.7 $ 6,970.0 Public Sector Pension Plans IRC Section 457 annuities $ 1,521.2 $ 1,375.6 $ 1,442.4 $ 1,514.2 $ 1,544.8 Administration only agreements 1,101.4 1,206.2 1,735.0 2,122.9 2,336.9 Total public sector pension plans $ 2,622.6 $ 2,581.8 $ 3,177.4 $ 3,637.1 $ 3,881.7 Total retirement plan sales $ 6,985.7 $ 7,424.7 $ 8,400.9 $ 9,805.8 $ 10,851.7 Retirement Plans Sales by Channel ($ in millions) 2001 2002 2003 2004 2005 Private Sector Pension Plans Non-affiliated Independent broker/dealers $ 1,899.9 $ 2,243.0 $ 2,534.7 $ 3,154.4 $ 3,412.0 Wirehouse and regional firms 753.2 726.5 742.2 863.7 953.7 Financial institutions 210.6 519.0 411.4 493.3 551.2 Pension plan administrators 1,013.4 744.0 574.8 476.1 469.0 Affiliated Nationwide Retirement Solutions 26.3 38.1 32.5 28.8 33.0 Nationwide agents 56.0 45.6 58.1 71.2 95.5 Nationwide Financial Network - 54.2 188.9 188.1 113.3 The 401(k) Company 403.7 472.5 680.9 893.1 1,342.3 Total private sector pension plans $ 4,363.1 $ 4,842.9 $ 5,223.5 $ 6,168.7 $ 6,970.0 Public Sector Pension Plans Nationwide Retirement Solutions $ 2,622.6 $ 2,581.8 $ 3,177.4 $ 3,637.1 $ 3,881.7 Total retirement plan sales $ 6,985.7 $ 7,424.7 $ 8,400.9 $ 9,805.8 $ 10,851.7 34
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Protection Historical Earnings Trends 2001 2002 2003 2004 2005 ($ in millions) Operating Revenues Asset fees $ 16.6 $ 20.5 $ 29.4 $ 34.4 $ 40.2 Administrative fees 88.2 86.3 86.8 93.3 90.0 Surrender fees 9.5 17.5 32.5 30.0 27.9 Cost of insurance 201.9 266.5 371.3 379.7 388.5 Total policy charges 316.2 390.8 520.0 537.4 546.6 Net Investment Income General account assets 337.2 378.9 486.1 487.2 492.7 Charge for invested capital (13.9) (17.2) (23.5) (19.3) (17.6) Total net investment income 323.3 361.7 462.6 467.9 475.1 Traditional life premiums 190.2 232.9 332.8 311.9 297.0 Other income 5.1 16.5 33.3 32.9 29.8 Total operating revenues 834.8 1,001.9 1,348.7 1,350.1 1,348.5 Benefits Interest credited 177.7 188.2 193.3 189.4 190.7 Life benefits 211.7 275.3 421.2 409.4 419.5 Policyholder dividends 41.7 63.5 105.7 101.4 107.3 Total benefits 431.1 527.0 720.2 700.2 717.5 Expenses Commissions 187.7 153.8 135.7 142.0 130.3 General operating expenses 173.6 232.9 318.2 314.9 306.4 Deferral of policy acquisition costs (227.7) (204.7) (199.5) (204.1) (201.1) Subtotal 133.6 182.0 254.4 252.8 235.6 Amortization of policy acquisition costs 80.3 92.7 120.6 114.4 102.7 Amortization of value of business acquired - 12.2 38.0 40.1 34.2 Interest expense on debt - (0.1) - (0.1) 0.3 Total expenses 213.9 286.8 413.0 407.2 372.8 Pre-tax operating earnings $ 189.8 $ 188.1 $ 215.5 $ 242.7 $ 258.2 Key Ratios/Statistics 20.8% 23.2% 23.6% 23.3% 22.7% General operating expenses to operating revenues 22.7% 18.8% 16.0% 18.0% 19.1% Pre-tax operating earnings to operating revenues Average allocated capital $ 1,088.7 $ 1,224.2 $ 1,722.4 $ 1,731.1 $ 1,788.9 Return on average allocated capital 11.7% 10.4% 8.4% 9.5% 10.2% (1) Adjusted return on average allocated capital 11.7% 10.4% 8.4% 9.5% 10.0% (1) 2005 return adjusted for $3.7 million impact of one-time tax adjustments associated with separate account dividend received deductions. Note: All prior periods have been reclassified to reflect NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. Individual Protection Policy Reserves 2001 2002 2003 2004 2005 ($ in millions) Individual investment life $ 2,203.7 $ 3,514.8 $ 4,443.8 $ 4,962.1 $ 5,329.5 Corporate investment life - general account 3,236.8 3,652.8 4,401.5 5,063.0 5,613.8 Corporate investment life - separate account - - - 381.1 1,130.8 Subtotal investment life 5,440.5 7,167.6 8,845.3 10,406.2 12,074.1 Traditional life 1,873.4 4,154.9 4,155.0 4,278.9 4,225.2 Universal life 785.3 836.4 896.8 997.9 1,089.3 Subtotal fixed life 2,658.7 4,991.3 5,051.8 5,276.8 5,314.5 Total individual protection policy reserves $ 8,099.2 $ 12,158.9 $ 13,897.1 $ 15,683.0 $ 17,388.6 Individual Protection Insurance In Force 2001 2002 2003 2004 2005 ($ in millions) Individual investment life $ 30,641.0 $ 55,581.0 $ 56,478.4 $ 56,836.7 $ 57,021.7 Corporate investment life - general account 7,727.6 8,387.1 9,263.3 9,774.3 10,305.0 Corporate investment life - separate account - - - 1,129.8 13,330.5 Subtotal investment life 38,368.6 63,968.1 65,741.7 67,740.8 80,657.2 Traditional life 24,276.7 34,958.4 33,671.2 32,979.4 36,589.3 Universal life 7,806.3 7,922.5 8,407.4 8,505.5 9,114.6 Subtotal fixed life 32,083.0 42,880.9 42,078.6 41,484.9 45,703.9 Total individual protection insurance in force $ 70,451.6 $ 106,849.0 $ 107,820.3 $ 109,225.7 $ 126,361.1 35
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Protection Sales by Product 2001 2002 2003 2004 2005 ($ in millions) BEST of AMERICA Variable Life Series First year sales $ - $ 229.7 $ 131.1 $ 131.7 $ 121.9 * Renewal sales 552.4 288.5 304.3 307.9 304.1 Total BEST of AMERICA variable life series 552.4 518.2 435.4 439.6 426.0 Nationwide Financial Network Variable Life Products First year sales - 13.6 35.1 32.0 24.0 Renewal sales * - 55.0 229.1 223.8 205.0 Total Nationwide Financial Network variable life products - 68.6 264.2 255.8 229.0 Corporate Owned Life Insurance (COLI) First year sales - 247.6 173.2 157.0 227.8 Renewal sales * 742.3 409.9 371.8 407.5 429.7 Total COLI 742.3 657.5 545.0 564.5 657.5 Traditional/Universal life First year sales - 40.1 77.6 114.6 111.4 Renewal sales * 245.9 258.9 400.3 392.3 401.3 Total traditional/universal life 245.9 299.0 477.9 506.9 512.7 Total individual protection sales $ 1,540.6 $ 1,543.3 $ 1,722.5 $ 1,766.8 $ 1,825.2 * First year and renewal sales split is not available prior to 2002 Individual Protection Sales by Channel 2001 2002 2003 2004 2005 ($ in millions) Non-affiliated Independent broker/dealers $ 352.5 $ 288.9 $ 251.2 $ 286.3 $ 260.5 Wirehouse and regional firms 48.9 67.0 63.5 64.0 65.3 Financial institutions 44.9 58.3 42.6 47.8 58.6 Life specialists 508.6 510.6 384.1 380.5 382.1 Affiliated Nationwide agents 351.9 348.6 374.7 371.2 375.0 Nationwide Financial Network - 123.0 445.5 432.8 408.3 TBG Financial 233.8 146.9 160.9 184.2 275.4 Total individual protection sales $ 1,540.6 $ 1,543.3 $ 1,722.5 $ 1,766.8 $ 1,825.2 36
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Investment Life Historical Earnings Trends 2001 2002 2003 2004 2005 ($ in millions) Operating Revenues Asset fees $ 16.6 $ 20.5 $ 29.4 $ 34.4 $ 40.2 Administrative fees 79.0 77.2 75.6 79.4 75.7 Surrender fees 8.2 16.5 31.7 29.2 26.3 Cost of insurance 166.6 229.1 331.2 334.9 339.0 Total policy charges 270.4 343.3 467.9 477.9 481.2 Net Investment Income General account assets 143.3 147.3 152.7 150.2 157.2 Charge for invested capital (13.9) (17.2) (23.5) (19.3) (17.6) Total net investment income 129.4 130.1 129.2 130.9 139.6 Other income 5.1 16.5 33.3 32.9 29.8 Total operating revenues 404.9 489.9 630.4 641.7 650.6 Benefits Interest credited 106.9 115.0 120.7 117.0 116.3 Life benefits 54.0 82.2 118.2 128.1 128.4 Total benefits 160.9 197.2 238.9 245.1 244.7 Expenses Commissions 175.3 136.1 107.1 99.5 95.6 General operating expenses 113.2 149.8 204.2 193.9 178.8 Deferral of policy acquisition costs (207.2) (179.2) (161.7) (149.1) (142.8) Subtotal 81.3 106.7 149.6 144.3 131.6 Amortization of policy acquisition costs 49.6 67.0 91.7 85.1 85.7 Amortization of value of business acquired - 12.5 27.4 22.5 25.1 Interest expense on debt - (0.1) - (0.1) 0.3 Total expenses 130.9 186.1 268.7 251.8 242.7 Pre-tax operating earnings $ 113.1 $ 106.6 $ 122.8 $ 144.8 $ 163.2 Key Ratios/Statistics Cost of insurance per $1,000 of average net amount at risk (1) $ 5.42 $ 5.86 $ 5.84 $ 5.88 $ 5.11 Life benefits per $1,000 of average net amount at risk (1) $ 1.76 $ 2.10 $ 2.08 $ 2.25 $ 1.93 28.0% 30.6% 32.4% 30.2% 27.5% General operating expenses to operating revenues Pre-tax operating earnings to operating revenues 27.9% 21.8% 19.5% 22.6% 25.1% Average allocated capital $ 732.8 $ 819.0 $ 1,143.4 $ 1,191.5 $ 1,246.1 Return on average allocated capital 10.5% 9.0% 7.5% 8.5% 9.7% Adjusted return on average allocated capital (2) 10.5% 9.0% 7.5% 8.5% 9.4% (1) Excludes separate account corporate investment life. (2) 2005 return adjusted for $3.7 million impact of one-time tax adjustments associated with separate account dividend received deductions. Note: All prior periods have been reclassified to reflect NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. Investment Life Policy Reserve Activity ($ in millions) 2001 2002 2003 2004 2005 Balance, beginning of period $ 4,644.3 $ 5,440.5 $ 7,167.6 $ 8,845.3 $ 10,406.2 Deposits 1,363.5 1,303.5 1,242.4 1,642.7 2,153.8 Withdrawals and surrenders (97.7) (198.5) (464.4) (467.4) (780.8) Net flows 1,265.8 1,105.0 778.0 1,175.3 1,373.0 Investment performance/interest credited (185.1) (405.2) 1,357.0 842.8 731.6 Policy charges (270.4) (343.5) (468.0) (478.0) (481.4) Benefits and other (14.1) 20.0 10.7 20.8 46.2 Acquired business - 1,350.8 - - (1.5) Balance, end of period $ 5,440.5 $ 7,167.6 $ 8,845.3 $ 10,406.2 $ 12,074.1 37
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Fixed Life Historical Earnings Trends ($ in millions) 2001 2002 2003 2004 2005 Operating Revenues Administrative fees $ 9.2 $ 9.1 $ 11.2 $ 13.9 $ 14.3 Surrender fees 1.3 1.0 0.8 0.8 1.6 Cost of insurance 35.3 37.4 40.1 44.8 49.5 Total policy charges 45.8 47.5 52.1 59.5 65.4 Net investment income 193.9 231.6 333.4 337.0 335.5 Traditional life premiums 190.2 232.9 332.8 311.9 297.0 Total operating revenues 429.9 512.0 718.3 708.4 697.9 Benefits Interest credited 70.8 73.2 72.6 72.4 74.4 Life benefits 157.7 193.1 303.0 281.3 291.1 Policyholder dividends 41.7 63.5 105.7 101.4 107.3 Total benefits 270.2 329.8 481.3 455.1 472.8 Expenses Commissions 12.4 17.7 28.6 42.5 34.7 General operating expenses 60.4 83.1 114.0 121.0 127.6 Deferral of policy acquisition costs (20.5) (25.5) (37.8) (55.0) (58.3) Subtotal 52.3 75.3 104.8 108.5 104.0 Amortization of policy acquisition costs 30.7 25.7 28.9 29.3 17.0 Amortization of value of business acquired - (0.3) 10.6 17.6 9.1 Total expenses 83.0 100.7 144.3 155.4 130.1 Pre-tax operating earnings $ 76.7 $ 81.5 $ 92.7 $ 97.9 $ 95.0 Key Ratios/Statistics $ 4.94 $ 5.56 $ 7.15 $ 6.77 $ 6.70 Life benefits per $1,000 of average life insurance in force 14.0% 16.2% 15.9% 17.1% 18.3% General operating expenses to operating revenues 17.8% 15.9% 12.9% 13.8% 13.6% Pre-tax operating earnings to operating revenues Average allocated capital $ 355.9 $ 405.3 $ 579.0 $ 539.6 $ 542.9 Return on average allocated capital 14.0% 13.0% 10.4% 11.8% 11.4% Fixed Life Policy Reserve Activity ($ in millions) 2001 2002 2003 2004 2005 Traditional/Universal Life Balance, beginning of period $ 2,581.2 $ 2,658.7 $ 4,991.3 $ 5,051.8 $ 5,276.8 Deposits 245.9 294.0 441.0 457.6 448.6 Withdrawals and surrenders (102.2) (128.0) (188.9) (196.9) (214.0) Net flows 143.7 166.0 252.1 260.7 234.6 Interest credited 70.8 73.2 72.6 72.4 74.4 Policy charges (45.8) (47.5) (52.1) (59.5) (65.4) Benefits and other (91.2) (99.4) (212.1) (48.6) (205.9) Acquired business - 2,240.3 - - - Balance, end of period $ 2,658.7 $ 4,991.3 $ 5,051.8 $ 5,276.8 $ 5,314.5 38
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 This Page Intentionally Left Blank. 39
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Corporate and Other Historical Earnings Trends 2001 2002 2003 2004 2005 ($ in millions) Operating Revenues Net investment income General account assets $ 162.4 $ 200.1 $ 219.0 $ 247.6 $ 337.6 Periodic net coupon settlements on non-qualifying derivatives (1.7) (5.6) (6.9) (4.2) (0.1) Total net investment income 160.7 194.5 212.1 243.4 337.5 Realized gain on securitizations 1.9 - - - - Operating realized gains (losses) (1.2) 8.9 15.7 8.7 2.6 Other income 3.0 17.0 50.3 57.9 44.9 Total operating revenues 164.4 220.4 278.1 310.0 385.0 Benefits Interest credited Products 109.5 88.2 69.1 84.2 144.9 Periodic net coupon settlements on non-qualifying derivatives (2.9) 3.3 8.8 2.5 1.2 Total benefits 106.6 91.5 77.9 86.7 146.1 Expenses Commissions 1.4 7.7 21.0 23.8 25.6 General operating expenses 13.0 26.2 28.5 38.4 28.1 Amortization of value of business acquired - - 0.1 - 0.1 Debt extinguishment costs - - - - 21.7 Interest expense on debt 54.9 76.8 95.8 102.5 107.7 Total expenses 69.3 110.7 145.4 164.7 183.2 Pre-tax operating earnings (loss) $ (11.5) $ 18.2 $ 54.8 $ 58.6 $ 55.7 Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc. and NFS Bermuda as discontinued operations. Medium Term Notes ($ in millions) 2001 2002 2003 2004 2005 Key Ratios/Statistics Average Account Values: General account $ 2,427.5 $ 3,903.0 $ 4,442.8 $ 4,647.6 $ 4,124.0 Earned rate 5.44% 3.64% 3.09% 3.13% 4.83% Credited rate 4.51% 2.26% 1.56% 1.81% 3.50% Interest spread on average general account values 0.93% 1.38% 1.53% 1.32% 1.33% Prepayment penalties and bond call premium income 0.00% 0.03% 0.16% 0.20% 0.14% Base interest spread on average general account values 0.93% 1.35% 1.37% 1.12% 1.19% Account Value Activity Balance, beginning of period $ 1,627.7 $ 3,128.1 $ 4,273.6 $ 4,606.3 $ 4,401.6 Deposits 1,475.8 1,175.0 725.0 900.0 900.0 Maturities - - (389.7) (1,115.2) (1,305.4) Net flows 1,475.8 1,175.0 335.3 (215.2) (405.4) Interest credited and amortization 109.4 88.8 69.6 88.4 151.2 Other benefits - interest payments (84.8) (118.3) (72.2) (77.9) (149.2) Balance, end of period $ 3,128.1 $ 4,273.6 $ 4,606.3 $ 4,401.6 $ 3,998.2 40
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Glossary Advisory services program - Investment products, including mutual funds, separately managed accounts and variable annuities, provided with advice services, such as asset allocation profiling, through an asset-based fee compensation model. Allocated capital - A non-GAAP financial measure that is calculated by adding target surplus (calculated as 225% of NAIC defined risk based capital), to the following after-tax amounts: unamortized DAC, the difference between statutory benefit reserves and GAAP benefit reserves, the difference between GAAP invested assets and statutory invested assets, unamortized VOBA, unamortized deferred software costs, unamortized intangible assets, unamortized goodwill, unamortized debt issue costs, unamortized deferred revenue, less deferred premiums. Annuity - A contract that provides a periodic stream of cash flows at regular intervals for a specified period of time, such as number of years or for life. Asset fees to average separate account values - A financial measure that is calculated by dividing asset fees by average separate account values. Average allocated capital - A non-GAAP financial measure that is calculated by taking the mean average of the beginning and ending allocated capital amounts of a quarter for a quarterly average, or the mean average of the beginning of the year allocated capital amount and the ending allocated capital amounts for each of the four quarters for a yearly average. Average equity - A non-GAAP financial measure that is calculated by taking the mean average of the beginning and ending shareholder’s equity, excluding accumulated other comprehensive income for a quarterly average, or the mean average of the beginning of the year shareholder’s equity excluding accumulated other comprehensive income and the ending shareholder’s equity, excluding accumulated other comprehensive income for each of the four quarters for a yearly average. Average in force - A metric that is calculated by taking the mean average of the beginning and ending in force amounts of a quarter for a quarterly average, or the mean average of the beginning of the year in force amount and the ending in force amounts for each of the four quarters for a yearly average. BOLI (Bank Owned Life Insurance) - Generally refers to a large single premium purchase of a Modified Endowment Contract to informally fund a block of employee benefit liabilities. Book value per share excluding accumulated other comprehensive income - A non-GAAP financial measure that is calculated by adjusting book value to exclude accumulated other comprehensive income and then dividing the result by the number of shares outstanding on the date indicated. COLI (Corporate Owned Life Insurance) - Broadly describes the use of life insurance to informally fund a block of employee benefits. In its truest form refers to corporate owned life insurance but could also refer to other ownership arrangements such as split-dollar. Cost of Insurance per $1,000 of average net amount at risk - A non-GAAP financial measure that is calculated by annualizing the cost of insurance and dividing by the net amount at risk divided by one thousand. Credited Rate - A financial measure that is calculated by dividing interest credited by average general account values. Deferred Annuity - An annuity that can be paid either with a single premium or a series of installments, providing for the income payments to begin at some future date. Deferred Compensation Plan - A benefit plan that allows an employee to save pre-tax dollars. Many are set up similar to a 401(k) plan, including multiple investment options, but without regulated limits on the amount that can be deposited. 41
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Glossary Deferred Policy Acquisition Costs - The unamortized policy acquisition costs which are capitalized and charged to expense in proportion to premiums or estimated gross profits depending on the type of underlying contract. See Policy Acquisition Costs. Defined Benefit Plan - A qualified pension plan under Section 401 of the Internal Revenue code which defines the retirement benefit to plan participants. The definition of the retirement benefit may include such variables as age, length of service, and compensation, but it would not reflect the investment experience of the assets held to fund these benefits. Defined Contribution Plan - A benefit plan under which contributions are fixed in advance by formula, and benefits to retiring employees may vary. Deposits - Premiums received for interest sensitive life insurance, annuities or life insurance products. Dollar Cost Averaging - Paying a fixed amount of premium at regular intervals regardless of the unit values of the selected variable accounts or the current interest rate on new premiums paid into the guaranteed account. Earned Rate - A financial measure that is calculated by dividing net investment income by average general account values. Fixed Annuity - An annuity contract in which premiums paid are credited with a fixed rate of return by the life insurance company. GAAP - Refers to accounting principles generally accepted in the United States of America. General Account - An undivided account in which all investments are held that are not held in the separate account. General operating expenses to average account values - A GAAP financial measure that is calculated by dividing general operating expenses by average account values. Group Annuity - A pension plan providing annuities at retirement to a group of people under a master contract. It usually is issued to an employer for the benefit of employees. Immediate Annuity - An annuity providing for payment to begin immediately after a single premium is paid. Internal Replacement - Transaction whereby a policyholder's existing insurance product or investment contract is replaced with a similar product issued by the same entity. Interest spread on average general account assets - A financial measure that is calculated by subtracting the credited rate from the earned rate. Lapse - Termination of a policy because of failure to pay the premium. Leverage, excluding AOCI - A non-GAAP financial measure that is calculated by dividing long-term debt by total capital, excluding accumulated other comprehensive income (AOCI). Leverage, including AOCI - A financial measure that is calculated by dividing long-term debt by total capital. Life benefits per $1,000 of average net amount at risk - A metric that is calculated by annualizing the life insurance benefit amount and dividing by the average net amount at risk divided by one thousand, excluding separate account corporate investment life business. Life benefits per $1,000 of average in force - A metric that is calculated by annualizing the life insurance benefit amount and dividing by the average in force amount divided by one thousand, excluding separate account corporate investment life business. 42
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Glossary Life Insurance In Force - The sum of the face amounts, plus dividend additions, of life insurance policies outstanding at a given time. Nationwide Financial Network - Refers to the affiliated distribution channel that was formerly referred to as Nationwide Provident Producers. Net Amount at Risk - Insurance in force less accumulated account value. Pertains to investment life products and is the amount for which cost of life insurance is assessed. Net operating earnings - A non-GAAP financial measure that is calculated by adjusting net income to exclude net realized gains and losses on investments not related to securitizations and operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes), hedging instruments and hedged items, discontinued operations and cumulative effect of adoption of accounting principles, if any, all net of tax. Net operating earnings per diluted share - A non-GAAP financial measure that is calculated by dividing net operating earnings by the number of weighted average diluted shares outstanding for the period indicated. Non-GAAP financial measures - Key performance indicators used by management that have not been calculated in accordance with GAAP. None of these non-GAAP financial measures should be viewed as substitutes for any GAAP financial measures. Operating realized gains (losses) - A non-GAAP financial measure that represents net realized gains (losses) on investments related to securitizations and operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes), hedging instruments and hedged items. Operating return on average equity - A non-GAAP financial measure that is calculated by annualizing the net operating earnings and dividing by the average equity amount. Operating revenues - A non-GAAP financial measure that is calculated by adjusting total revenues to exclude net realized gains and losses on investments not related to securitizations and operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes), hedging instruments and hedged items. Persistency - Percentage of life insurance policies or annuity contracts remaining in force from one period to another. Policy Acquisition Costs - Expenses that vary with and are primarily related to the acquisition of new and renewal insurance contracts. Pre-tax operating earnings - A non-GAAP financial measure that is calculated by adjusting earnings from continuing operations before federal income taxes and cumulative effect of adoption of accounting principles, if any, to exclude net realized gains and losses on investments, hedging instruments and hedged items, except for operating items (periodic net coupon settlements on non- qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes) and realized gains and losses related to securitizations, if any. Pre-tax operating earnings to average account values - A non-GAAP financial measure that is calculated by dividing pre-tax operating earnings by average account values. Pre-tax operating earnings to operating revenues - A non-GAAP financial measure that is calculated by dividing pre-tax operating earnings by operating revenues. Qualified Plan - A plan purchased with pre-tax dollars, generally under a pension plan, specially sponsored program, or individual retirement account that the Internal Revenue Service approves as meeting the requirements of Section 401(a) of the 1986 Internal Revenue Code, as amended. Such plans receive tax advantages. Ratio of pre-tax operating earnings before interest to interest expense - A non-GAAP financial measure that is calculated by subtracting interest expense from pre-tax operating earnings and dividing the product by interest expense. Return on average allocated capital - A non-GAAP financial measure that is calculated by dividing annualized after-tax operating earnings by average allocated capital. 43
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Glossary Sales - Represents a production volume metric that is primarily comprised of statutory premiums and deposits on individual and group annuities and life insurance products sold to a diverse customer base. Statutory premiums and deposits are calculated in accordance with accounting practices prescribed or permitted by regulatory authorities and then adjusted to arrive at sales. Sales also include deposits on administration-only group pension plans. Sales are stated net of internal replacements, which in Nationwide Financial’s opinion provides a more meaningful disclosure of sales. In addition, sales exclude: funding agreements issued under Nationwide Financial’s medium-term note program; large case bank-owned life insurance (BOLI); large case pension plan acquisitions; and deposits into Nationwide employee and agent benefit plans. Although these products contribute to asset and earnings growth, they do not produce steady production flow that lends itself to meaningful comparisons and are therefore excluded from sales. Separate Account - A separate investment account established and maintained by an insurance enterprise used primarily for variable products. This arrangement permits wider latitude in the choice of investments for contract holders. Surrender Charges - Charges made against withdrawals from the contract value of most variable annuities for a period of time, typically four to seven years. Statutory capital and surplus - A financial measure that is calculated based on accounting practices prescribed or permitted by the department of insurance of the state of domicile. Each of the states in which the Company’s insurance companies are domiciled has adopted the National Association of Insurance Commissioners (NAIC) statutory accounting practices (NAIC SAP) as the basis of its statutory accounting practices. The Company’s insurance subsidiaries have no statutory accounting practices that differ from NAIC SAP. Universal Life Insurance - A flexible premium, adjustable benefit life insurance contract that accumulates cash values through the receipt of contractually determined interest credited. Variable Annuity - An annuity contract in which the funds are invested in investments for which the underlying values can fluctuate. Variable Life Insurance - A securities-based whole life insurance policy that employs a fixed premium and provides variable cash values and death benefit, dependent upon the performance of the separate account investment election. Variable Universal Life Insurance - A type of variable life insurance that has flexible premiums. Value of Business Acquired (VOBA) - Reflects the estimated fair value of the Nationwide Provident business in-force and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the life insurance and annuity contracts existing as of the closing date of the Nationwide Financial Network Merger. 44
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Shareholder Information Corporate Offices Upcoming Events Nationwide Financial One Nationwide Plaza 2nd Quarter 2006 Earnings Columbus, OH 43215 Quiet Period - July 19th to August 2nd Earnings Release - August 2nd Inquiries Conference Call - August 3rd Mark Barnett Vice President, Investor Relations UBS (614) 677-5331 Global Financial Services Conference barnetj5@nationwide.com New York, New York May 15th - 17th Roger W. Green Mark Thresher Officer, Investor Relations (614) 249-7319 greenr1@nationwide.com Financial Strength Ratings A.M. Best . A+ Moody's Aa3 Standard & Poors AA- Stock Symbol Nationwide Financial's common stock is traded on the New York Stock Exchange under the symbol quot;NFSquot; Nationwide Financial's trust-preferred securities are traded on the New York Stock Exchange under the symbol quot;NFS Aquot; This report is for information purposes only. It should be read in conjuction with documents filed by Nationwide Financial Services, Inc. with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 45
    • Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Notes 46