2007 Nationwide Financial® Statistical Supplement
FIRST QUARTER
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
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Nationwide Financial Services, Inc.
Statistical Supplement
Table of Contents
Page
Quarterly Financial Highlights 1-2
NFS F...
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Statistical Supplement
March 31, 2007
Quarterly Financial Highlights
($ in millions ex...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Quarterly Financial Highlights
($ in millions ex...
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Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Quarterly Consolidated Income Statements
($ in m...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Combining Income Statement
For the three months ...
Nationwide Financial Services, Inc.
Statistical Supplement
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Combining Income Statement
For the three months ...
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Nationwide Financial Services, Inc.
Statistical Supplement
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Quarterly Consolidated Balance Sheets
($ in mill...
Nationwide Financial Services, Inc.
Statistical Supplement
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Individual Investments
Quarterly Earnings Trends...
Nationwide Financial Services, Inc.
Statistical Supplement
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Individual Investments
Account Values by Product...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07
Op...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Retirement Plans
Account Values by Product
($ in...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07
Op...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Individual Protection
Sales by Product
($ in mil...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Investment Life
Quarterly Earnings Trends
($ in ...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Fixed Life
Quarterly Earnings Trends
($ in milli...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Corporate and Other
Quarterly Earnings Trends
($...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Customer Funds Managed and Administered
($ in mi...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Securities Available-For-Sale
Gross Gross
Amorti...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Amortized Fair Amortized Fair
($ in millions) Co...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Deferred Policy Acquisition Costs
Individual Ret...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
($ in millions)
Account DAC Annualized Account D...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Individual Retirement Individual Corporate
($ in...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
($ in millions)
Account Account
GMDB Benefit Typ...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
($ in millions)
Account Account
GMAB Benefit Typ...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Individual Variable Annuity Guaranteed Minimum D...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Historical Financial Highlights
($ in millions e...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
($ in millions except for per share data) 2002 2...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
($ in millions) 2002 2003 2004 2005 2006
Operati...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Historical Consolidated Balance Sheet
($ in mill...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Individual Investments
($ in millions) 2002 2003...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Individual Investments
($ in millions) 2002 2003...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Retirement Plans
($ in millions) 2002 2003 2004 ...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
($ in millions) 2002 2003 2004 2005 2006
Private...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Individual Protection
($ in millions) 2002 2003 ...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Individual Protection
($ in millions) 2002 2003 ...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2007
Investment Life
($ in millions) 2002 2003 2004 2...
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Statistical Supplement
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Fixed Life
($ in millions) 2002 2003 2004 2005 2...
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nationwide 	1Q07 Statistical Supplement
nationwide 	1Q07 Statistical Supplement
nationwide 	1Q07 Statistical Supplement
nationwide 	1Q07 Statistical Supplement
nationwide 	1Q07 Statistical Supplement
nationwide 	1Q07 Statistical Supplement
nationwide 	1Q07 Statistical Supplement
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Transcript of "nationwide 1Q07 Statistical Supplement"

  1. 1. 2007 Nationwide Financial® Statistical Supplement FIRST QUARTER
  2. 2. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 This Page Intentionally Left Blank.
  3. 3. Nationwide Financial Services, Inc. Statistical Supplement 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, 2007 5 For the three months ended March 31, 2006 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 lifetime withdrawal 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 March 31, 2007
  4. 4. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Quarterly Financial Highlights ($ in millions except for per share data) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Operating Revenues Individual investments 382.6$ 373.2$ 382.3$ 376.2$ 365.0$ Retirement plans 269.5 285.7 277.4 278.3 279.0 Individual protection 338.4 333.7 338.6 334.8 342.5 Corporate and other 100.1 111.5 108.8 125.0 142.3 Total operating revenues 1,090.6$ 1,104.1$ 1,107.1$ 1,114.3$ 1,128.8$ Net realized gains (losses) on investments, hedging instruments and hedged items (1) (8.1) (11.0) 5.5 13.0 (13.5) Total revenues 1,082.5$ 1,093.1$ 1,112.6$ 1,127.3$ 1,115.3$ Pre-tax Operating Earnings Individual investments 56.4$ 52.5$ 60.4$ 41.5$ 51.0$ Retirement plans 53.6 64.5 53.7 44.7 50.1 Individual protection 64.9 60.5 71.0 78.4 82.9 Corporate and other 11.6 16.6 21.7 17.8 33.6 Pre-tax operating earnings 186.5$ 194.1$ 206.8$ 182.4$ 217.6$ Federal income tax expense 42.2 (69.9) 52.1 37.5 47.2 Net operating earnings 144.3$ 264.0$ 154.7$ 144.9$ 170.4$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) (5.3) (7.2) 3.6 8.5 (8.8) Adjustment to amortization related to net realized gains (losses), net of taxes 3.3 1.0 1.2 0.8 1.7 Discontinued operations, net of taxes - - - - 45.9 Cumulative effect of adoption of accounting principles, net of taxes - - - - (6.0) Net income 142.3$ 257.8$ 159.5$ 154.2$ 203.2$ Per Diluted Share Net operating earnings 0.94$ 1.76$ 1.03$ 0.97$ 1.16$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) (0.03) (0.05) 0.02 0.05 (0.06) Adjustment to amortization related to net realized gains (losses), net of taxes 0.02 0.01 0.01 0.01 0.01 Discontinued operations, net of taxes - - - - 0.31 Cumulative effect of adoption of accounting principles, net of taxes - - - - (0.04) Net income 0.93$ 1.72$ 1.06$ 1.03$ 1.38$ Sales by Channel Non-affiliated Independent broker/dealers 1,487.8$ 1,380.7$ 1,363.9$ 1,525.8$ 1,708.7$ Wirehouse and regional firms 590.1 555.6 596.4 691.5 679.7 Financial institutions 523.7 580.7 570.1 620.6 590.5 Pension plan administrators 135.9 139.6 124.8 132.5 175.8 Life specialists 172.6 84.0 46.3 277.7 88.3 Affiliated Nationwide Retirement Solutions 1,028.5 1,001.2 1,031.3 989.2 1,082.2 Nationwide agents 196.4 203.1 186.6 201.7 196.1 Nationwide Financial Network 185.7 171.0 168.3 173.7 158.3 TBG Financial 110.4 62.7 21.4 31.6 115.0 Total 4,431.1$ 4,178.6$ 4,109.1$ 4,644.3$ 4,794.6$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. In addition, the sales and account value sections in the subsequent portions of the report exclude amounts applicable to the operations that were discontinued. 1
  5. 5. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Quarterly Financial Highlights ($ in millions except for per share data) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Balance Sheet Data Total assets 116,558.7$ 113,083.0$ 114,880.0$ 119,411.6$ 120,343.5$ Customer funds managed and administered 146,101.8$ 143,027.6$ 145,835.3$ 154,069.3$ 156,080.8$ Shareholders' equity Including accumulated other comprehensive income (AOCI) (1) 5,126.2$ 5,236.8$ 5,630.0$ 5,538.3$ 5,715.4$ AOCI (77.9) (202.0) 47.8 31.9 83.6 Excluding AOCI 5,204.1$ 5,438.8$ 5,582.2$ 5,506.4$ 5,631.8$ Net operating return on average equity excluding AOCI 11.0% 19.8% 11.2% 10.5% 12.2% Adjusted net operating return on average equity excluding AOCI (2) 11.0% 11.5% 11.2% 10.5% 12.2% Statutory capital and surplus 3,279.3$ 3,437.4$ 3,504.2$ 3,336.6$ 3,010.0$ Stock Data Closing Price 43.02$ 44.08$ 48.10$ 54.20$ 53.86$ Weighted average shares outstanding Basic 152.3 149.2 149.5 148.7 145.9 Diluted 152.9 149.9 150.3 149.8 147.1 Book value per share Including AOCI 34.40$ 35.08$ 37.61$ 37.93$ 39.31$ Excluding AOCI 34.93$ 36.43$ 37.29$ 37.72$ 38.73$ (1) Includes changes in fair value of certain investments and derivatives under SFAS 115 and SFAS 133. (2) 2Q 2006 return adjusted for $113.1 million of released tax reserves and associated tax-related adjustments relating to prior tax years. Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. NFS Operating Segment Reporting Structure NATIONWIDE FINANCIAL SERVICES, INC. Individual Investments Retirement Plans Individual Protection Corporate and Other Variable Annuities Fixed Annuities Income Products Advisory Services Public Sector - 457 Private Sector – 401(k) Fixed Life Investment Life Nationwide Bank Medium Term Notes Structured Products Universal Whole Term Variable Universal COLI Corporate Other 2
  6. 6. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 This Page Intentionally Left Blank. 3
  7. 7. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Quarterly Consolidated Income Statements ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Operating Revenues Asset fees 168.9$ 170.0$ 169.2$ 183.1$ 184.2$ Cost of insurance charges 98.9 100.2 100.6 102.3 104.1 Administrative fees 30.2 47.2 36.2 25.5 29.0 Surrender fees 23.0 20.2 21.6 18.9 18.6 Total policy charges 321.0 337.6 327.6 329.8 335.9 Traditional life and immediate annuity premiums 107.8 109.7 110.5 113.5 110.4 Net investment income 577.3 572.1 577.9 571.2 574.5 Operating realized gains (losses) 1.3 1.1 4.1 3.1 2.1 Other income 83.2 83.6 87.0 96.7 105.9 Total operating revenues 1,090.6 1,104.1 1,107.1 1,114.3 1,128.8 Benefits Interest credited 342.1 345.7 348.2 344.3 334.8 Life insurance and annuity benefits 156.1 156.4 163.8 170.5 153.6 Policyholder dividends 20.2 24.5 24.6 21.4 21.3 Total benefits 518.4 526.6 536.6 536.2 509.7 Expenses Commissions 153.1 160.4 160.7 174.2 168.7 General operating expenses 204.3 205.3 191.8 244.8 207.1 Deferral of policy acquisition costs (135.1) (147.4) (138.8) (167.1) (145.1) Subtotal 222.3 218.3 213.7 251.9 230.7 Amortization of policy acquisition costs 125.7 127.5 109.8 109.6 135.7 Amortization of value of business acquired 11.6 12.5 14.9 7.0 10.3 Interest expense on debt 26.1 25.1 25.3 27.2 24.8 Total expenses 385.7 383.4 363.7 395.7 401.5 Pre-tax operating earnings 186.5$ 194.1$ 206.8$ 182.4$ 217.6$ Federal income tax expense 42.2 (69.9) 52.1 37.5 47.2 Net operating earnings 144.3$ 264.0$ 154.7$ 144.9$ 170.4$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 7.3 11.0 10.2 31.2 14.9 Realized losses on sales, net of hedging (12.9) (19.1) (4.4) (12.5) (14.8) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (0.6) (2.5) (2.9) (5.0) (8.6) Credit default swaps (0.1) (0.1) (0.1) (0.5) (0.2) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.5 3.4 0.3 (4.6) 0.4 Amounts credited to policyholder dividend obligation 0.1 (0.7) 0.5 0.1 (0.7) Adjustment to VOBA amortization 0.4 0.8 - (0.2) 0.2 Subtotal (5.3) (7.2) 3.6 8.5 (8.8) Adjustment to amortization related to net realized gains (losses), net of taxes 3.3 1.0 1.2 0.8 1.7 Discontinued operations, net of taxes - - - - 45.9 Cumulative effect of adoption of accounting principles, net of taxes - - - - (6.0) Net income 142.3$ 257.8$ 159.5$ 154.2$ 203.2$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. 4
  8. 8. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Combining Income Statement For the three months ended March 31, 2007 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees 137.8$ 33.7$ 12.7$ -$ 184.2$ Cost of insurance charges - - 104.1 - 104.1 Administrative fees 6.3 2.6 20.1 - 29.0 Surrender fees 12.6 1.0 5.0 - 18.6 Total policy charges 156.7 37.3 141.9 - 335.9 Traditional life and immediate annuity premiums 33.5 - 76.9 - 110.4 Net investment income 174.0 165.5 119.6 115.4 574.5 Operating realized gains (losses) - - - 2.1 2.1 Other income 0.8 76.2 4.1 24.8 105.9 Total operating revenues 365.0 279.0 342.5 142.3 1,128.8 Benefits Interest credited 118.2 111.1 47.3 58.2 334.8 Life insurance and annuity benefits 46.6 - 107.0 - 153.6 Policyholder dividends - - 21.3 - 21.3 Total benefits 164.8 111.1 175.6 58.2 509.7 Expenses Commissions 88.8 41.7 31.2 7.0 168.7 General operating expenses 50.6 74.9 62.7 18.9 207.1 Deferral of policy acquisition costs (91.0) (9.0) (45.1) - (145.1) Subtotal 48.4 107.6 48.8 25.9 230.7 Amortization of policy acquisition costs 99.5 9.8 26.4 - 135.7 Amortization of value of business acquired 1.3 0.4 8.6 - 10.3 Interest expense on debt - - 0.2 24.6 24.8 Total expenses 149.2 117.8 84.0 50.5 401.5 Pre-tax operating earnings 51.0$ 50.1$ 82.9$ 33.6$ 217.6$ Federal income tax expense 47.2 Net operating earnings 170.4$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 14.9 Realized losses on sales, net of hedging (14.8) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (8.6) Credit default swaps (0.2) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.4 Amounts credited to policyholder dividend obligation (0.7) Adjustment to VOBA amortization 0.2 Subtotal (8.8) Adjustment to amortization related to net realized gains (losses), net of taxes 1.7 Discontinued operations, net of taxes 45.9 Cumulative effect of adoption of accounting principles, net of taxes (6.0) Net income 203.2$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). 5
  9. 9. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 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 67.2 7.2 8.3 83.2 Total operating revenues 382.6 269.5 338.4 100.1 1,090.6 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 63.1 82.0 10.8 204.3 Deferral of policy acquisition costs (74.4) (9.4) (51.3) - (135.1) Subtotal 47.6 91.5 66.3 16.9 222.3 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 147.5 102.7 92.6 42.9 385.7 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 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, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. 6
  10. 10. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 This Page Intentionally Left Blank. 7
  11. 11. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Quarterly Consolidated Balance Sheets ($ in millions, except per share data) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Assets Investments Securities available-for-sale: Fixed maturity securities 28,645.0$ 27,980.9$ 28,579.0$ 28,160.0$ 28,356.6$ Equity securities 76.5 63.2 65.2 67.6 69.0 Trading assets 27.8 21.0 22.8 24.3 24.3 Mortgage loans 9,048.3 9,060.7 8,981.2 8,909.8 8,689.8 Real estate 108.6 108.4 104.8 76.7 67.8 Policy loans 933.9 948.3 957.7 966.9 974.6 Other long-term investments 688.9 687.4 680.6 780.1 770.0 Short-term investments 2,830.5 2,169.7 1,917.4 2,215.6 2,469.3 Total investments 42,359.5 41,039.6 41,308.7 41,201.0 41,421.4 Cash 23.9 23.6 12.9 20.2 19.4 Accrued investment income 398.9 388.7 412.6 373.8 387.5 Deferred policy acquisition costs 3,794.7 3,875.6 3,783.5 3,851.0 3,819.6 Value of business acquired 443.3 405.2 399.1 392.7 385.6 Other intangible assets 45.4 44.9 44.2 43.6 42.9 Goodwill 359.0 359.0 359.0 359.0 341.7 Other assets 2,200.3 2,117.3 2,433.2 2,475.6 2,637.3 Assets held in separate accounts 66,933.7 64,829.1 66,126.8 70,694.7 71,288.1 Total assets 116,558.7$ 113,083.0$ 114,880.0$ 119,411.6$ 120,343.5$ Liabilities and shareholders' equity Future policy benefits and claims 39,519.4$ 38,451.3$ 38,131.9$ 38,097.8$ 37,322.6$ Short-term debt 147.4 189.8 88.6 85.2 156.6 Long-term debt 1,398.3 1,398.4 1,398.1 1,398.5 1,398.9 Other liabilities 3,433.7 2,977.6 3,504.6 3,597.1 4,461.9 Liabilities related to separate accounts 66,933.7 64,829.1 66,126.8 70,694.7 71,288.1 111,432.5 107,846.2 109,250.0 113,873.3 114,628.1 Shareholders' equity 5,126.2 5,236.8 5,630.0 5,538.3 5,715.4 Total liabilities and shareholders' equity 116,558.7$ 113,083.0$ 114,880.0$ 119,411.6$ 120,343.5$ Capital Structure ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Total capital, including AOCI 6,524.5$ 6,635.2$ 7,028.1$ 6,936.8$ 7,114.3$ Less AOCI (77.9) (202.0) 47.8 31.9 83.6 Total capital, excluding AOCI 6,602.4$ 6,837.2$ 6,980.3$ 6,904.9$ 7,030.7$ Leverage, including AOCI Long-term debt--to--total capital 21.4% 21.1% 19.9% 20.2% 19.7% Leverage, excluding AOCI Long-term debt--to--total capital 21.2% 20.5% 20.0% 20.3% 19.9% Ratio of pre-tax operating earnings before interest expense to interest expense 8.1X 8.7X 9.2X 7.7X 9.8X 8
  12. 12. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Individual Investments Quarterly Earnings Trends ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Operating Revenues Asset fees 124.0$ 125.0$ 125.2$ 137.2$ 137.8$ Administrative fees 4.6 4.9 5.5 5.4 6.3 Surrender fees 15.2 14.2 14.7 12.5 12.6 Total policy charges 143.8 144.1 145.4 155.1 156.7 Net Investment Income General account assets 212.7 200.0 205.9 187.7 181.0 Charge for invested capital (6.3) (6.1) (6.8) (6.0) (7.0) Total net investment income 206.4 193.9 199.1 181.7 174.0 Premiums on income products 31.9 34.6 37.3 38.7 33.5 Other income 0.5 0.6 0.5 0.7 0.8 Total operating revenues 382.6 373.2 382.3 376.2 365.0 Benefits Interest credited 137.7 132.7 131.5 126.4 118.2 Immediate annuity benefits 28.5 30.4 31.7 36.3 28.9 Policy benefits 12.5 19.2 23.8 20.0 17.7 Total benefits 178.7 182.3 187.0 182.7 164.8 Expenses Commissions 73.6 86.2 86.0 94.7 88.8 General operating expenses 48.4 56.0 54.5 65.0 50.6 Deferral of policy acquisition costs (74.4) (90.8) (86.9) (98.7) (91.0) Subtotal 47.6 51.4 53.6 61.0 48.4 Amortization of policy acquisition costs 97.6 84.8 79.5 90.8 99.5 Amortization of value of business acquired 2.3 2.2 1.8 0.2 1.3 Total expenses 147.5 138.4 134.9 152.0 149.2 Pre-tax operating earnings 56.4$ 52.5$ 60.4$ 41.5$ 51.0$ Key Ratios/Statistics Average Account Values: General account 14,825.4$ 14,374.0$ 13,824.3$ 13,223.4$ 12,664.0$ Separate account 36,504.3 36,815.8 36,824.2 38,340.3 39,726.2 Advisory services program 443.3 491.6 528.7 573.2 607.0 Total average individual investments account values 51,773.0$ 51,681.4$ 51,177.2$ 52,136.9$ 52,997.2$ Earned rate 5.74% 5.56% 5.95% 5.67% 5.71% Credited rate 3.72% 3.69% 3.80% 3.82% 3.73% Interest spread on average general account values 2.02% 1.87% 2.15% 1.85% 1.98% Prepayment penalties and bond call premium income 0.11% 0.09% 0.24% 0.17% 0.15% Base interest spread on average general account values 1.91% 1.78% 1.91% 1.68% 1.83% Asset fees to average separate account values 1.36% 1.36% 1.36% 1.43% 1.39% General operating expenses to average account values 0.37% 0.43% 0.43% 0.50% 0.38% Pre-tax operating earnings to average account values 0.44% 0.41% 0.47% 0.32% 0.38% Pre-tax operating earnings to operating revenues 14.7% 14.1% 15.8% 11.0% 14.0% Average allocated capital 1,563.0$ 1,504.3$ 1,467.4$ 1,441.9$ 1,383.1$ Return on average allocated capital 11.9% 11.8% 13.1% 10.3% 13.6% Individual Investments Account Value Activity ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Individual Variable Annuities Balance, beginning of period 40,796.0$ 42,071.5$ 41,140.7$ 41,771.1$ 43,804.8$ Deposits 1,045.0 1,279.9 1,263.4 1,446.6 1,314.8 Withdrawals and surrenders (1,535.4) (1,479.4) (1,554.2) (1,564.3) (1,586.1) Net flows (490.4) (199.5) (290.8) (117.7) (271.3) Investment performance/interest credited 1,903.4 (605.1) 1,070.8 2,373.2 825.9 Policy charges (140.6) (141.3) (141.2) (153.1) (154.2) Benefits and other 3.1 15.1 (8.4) (68.7) 6.5 Balance, end of period 42,071.5$ 41,140.7$ 41,771.1$ 43,804.8$ 44,211.7$ Individual Fixed Annuities Balance, beginning of period 8,041.8$ 7,746.6$ 7,425.0$ 6,995.6$ 6,536.1$ Deposits 38.6 42.7 53.3 43.6 44.2 Withdrawals and surrenders (400.9) (437.5) (534.1) (521.3) (470.4) Net flows (362.3) (394.8) (480.8) (477.7) (426.2) Policyholder interest credited 73.4 79.2 68.2 63.6 58.1 Policy charges (2.8) (2.5) (3.1) (2.2) (2.1) Benefits and other (3.5) (3.5) (13.7) (43.2) (7.5) Balance, end of period 7,746.6$ 7,425.0$ 6,995.6$ 6,536.1$ 6,158.4$ Income Products 2,025.1$ 1,970.6$ 1,994.0$ 2,025.6$ 2,043.8$ Advisory Services Program 475.0$ 508.1$ 549.2$ 597.1$ 616.8$ Total individual investment account values 52,318.2$ 51,044.4$ 51,309.9$ 52,963.6$ 53,030.7$ 9
  13. 13. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Individual Investments Account Values by Product ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Individual Variable Annuities BEST of AMERICA products 34,117.5$ 33,495.1$ 34,215.3$ 36,106.8$ 36,628.6$ Private label annuities 7,505.5 7,243.9 7,171.5 7,319.7 7,233.7 Nationwide Financial Network and other 448.5 401.7 384.3 378.3 349.4 Total individual variable annuities 42,071.5$ 41,140.7$ 41,771.1$ 43,804.8$ 44,211.7$ Individual Fixed Annuities 7,746.6$ 7,425.0$ 6,995.6$ 6,536.1$ 6,158.4$ Income Products 2,025.1$ 1,970.6$ 1,994.0$ 2,025.6$ 2,043.8$ Advisory Services Program 475.0$ 508.1$ 549.2$ 597.1$ 616.8$ Total individual investment account values 52,318.2$ 51,044.4$ 51,309.9$ 52,963.6$ 53,030.7$ Individual Investments Sales by Product ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Individual Variable Annuities BEST of AMERICA products 912.5$ 1,116.3$ 1,096.6$ 1,265.5$ 1,166.9$ Private label annuities 73.0 96.7 94.8 92.1 73.2 Nationwide Financial Network and other 0.9 1.0 1.0 0.7 0.9 Total individual variable annuities 986.4$ 1,214.0$ 1,192.4$ 1,358.3$ 1,241.0$ Individual Fixed Annuities 39.5$ 45.8$ 57.2$ 44.0$ 37.3$ Income Products 58.5$ 55.9$ 57.1$ 59.2$ 55.5$ Advisory Services Program 62.6$ 70.1$ 47.7$ 42.4$ 36.8$ Total individual investment sales 1,147.0$ 1,385.8$ 1,354.4$ 1,503.9$ 1,370.6$ Individual Investments Sales by Channel ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Individual Variable Annuities Non-affiliated Independent broker/dealers 347.7$ 412.6$ 403.1$ 443.1$ 427.9$ Wirehouse and regional firms 220.8 274.4 312.7 363.9 314.0 Financial institutions 318.2 410.6 383.3 446.7 402.4 Life specialists 0.8 - - - 0.1 Affiliated Nationwide agents 63.6 71.3 51.0 59.2 62.3 Nationwide Financial Network 35.3 45.1 42.3 45.4 34.3 Total individual variable annuities 986.4$ 1,214.0$ 1,192.4$ 1,358.3$ 1,241.0$ Individual Fixed Annuities Non-affiliated Independent broker/dealers 2.6$ 2.5$ 5.4$ 2.9$ 5.4$ Wirehouse and regional firms 1.0 3.0 3.1 2.7 3.6 Financial institutions 14.7 19.0 20.5 18.2 14.3 Affiliated Nationwide agents 17.4 19.8 24.7 17.8 12.4 Nationwide Financial Network 3.8 1.5 3.5 2.4 1.6 Total individual fixed annuities 39.5$ 45.8$ 57.2$ 44.0$ 37.3$ Income Products Non-affiliated Independent broker/dealers 28.1$ 28.5$ 19.5$ 22.0$ 26.0$ Wirehouse and regional firms 17.0 15.5 25.8 26.4 16.9 Financial institutions 6.1 9.4 7.9 7.3 8.8 Affiliated Nationwide agents 3.6 3.1 2.9 2.0 2.4 Nationwide Financial Network 3.7 (0.6) 1.0 1.5 1.4 Total income products 58.5$ 55.9$ 57.1$ 59.2$ 55.5$ Advisory Services Program Non-affiliated Independent broker/dealers 48.0$ 60.2$ 41.3$ 31.0$ 28.7$ Financial institutions 4.0 5.7 2.3 3.5 2.1 Affiliated Nationwide Financial Network 10.6 4.2 4.1 7.9 6.0 Total advisory services program 62.6$ 70.1$ 47.7$ 42.4$ 36.8$ Total individual investment sales 1,147.0$ 1,385.8$ 1,354.4$ 1,503.9$ 1,370.6$ 10
  14. 14. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Operating Revenues Asset fees 33.9$ 33.6$ 32.9$ 33.6$ 33.7$ Administrative fees 2.7 22.6 7.9 2.8 2.6 Surrender fees 1.5 1.1 0.8 1.1 1.0 Total policy charges 38.1 57.3 41.6 37.5 37.3 Net investment income 164.2 159.8 164.7 163.5 165.5 Other income 67.2 68.6 71.1 77.3 76.2 Total operating revenues 269.5 285.7 277.4 278.3 279.0 Benefits Interest credited 113.2 113.0 112.2 113.2 111.1 Expenses Commissions 37.8 36.6 37.4 39.8 41.7 General operating expenses 63.1 68.9 69.0 81.8 74.9 Deferral of policy acquisition costs (9.4) (9.4) (8.8) (9.2) (9.0) Subtotal 91.5 96.1 97.6 112.4 107.6 Amortization of policy acquisition costs 10.1 10.9 9.7 7.6 9.8 Amortization of value of business acquired 1.1 1.2 4.2 0.4 0.4 Total expenses 102.7 108.2 111.5 120.4 117.8 Pre-tax operating earnings 53.6$ 64.5$ 53.7$ 44.7$ 50.1$ Key Ratios/Statistics Average Account Values: General account 11,241.2$ 11,050.0$ 10,909.6$ 11,079.3$ 11,175.4$ Separate account 19,298.8 18,155.5 17,668.4 18,193.8 18,441.8 Non insurance assets 15,258.6 16,085.7 16,611.8 17,962.0 19,314.3 Administration only 24,941.5 25,476.0 25,834.3 27,135.0 28,314.4 Total average retirement plan account values 70,740.1$ 70,767.2$ 71,024.1$ 74,370.1$ 77,245.9$ Earned rate 5.84% 5.78% 6.03% 5.91% 5.92% Credited rate 4.03% 4.09% 4.11% 4.09% 3.97% Interest spread on average general account values 1.81% 1.69% 1.92% 1.82% 1.95% Prepayment penalties and bond call premium income 0.09% 0.06% 0.12% 0.09% 0.11% Base interest spread on average general account values 1.72% 1.63% 1.80% 1.73% 1.84% Asset fees to average separate account values 0.70% 0.74% 0.74% 0.74% 0.73% General operating expenses to average account values 0.36% 0.39% 0.39% 0.44% 0.39% Pre-tax operating earnings to average account values 0.30% 0.36% 0.30% 0.24% 0.26% Pre-tax operating earnings to operating revenue 19.9% 22.6% 19.4% 16.1% 18.0% Average allocated capital 816.2$ 817.1$ 806.7$ 815.4$ 795.0$ Return on average allocated capital 19.4% 23.0% 18.9% 16.7% 19.0% Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Private Sector Pension Plans Balance, beginning of period 29,758.8$ 29,900.0$ 29,626.1$ 30,601.9$ 32,645.3$ New deposits/sales 1,791.8 1,420.5 1,427.9 1,563.6 2,006.0 Participant withdrawals and surrenders (1,478.6) (1,239.7) (1,225.2) (1,322.9) (1,520.2) Net flows 313.2 180.8 202.7 240.7 485.8 Investment performance/interest credited 1,330.8 (382.7) 838.9 1,867.9 598.6 Policy charges and other (23.9) (72.0) (65.8) (65.2) (65.1) Case acquisitions/(terminations), net (1,478.9) - - - (736.7) Balance, end of period 29,900.0$ 29,626.1$ 30,601.9$ 32,645.3$ 32,927.9$ Public Sector Pension Plans Balance, beginning of period 40,092.0$ 41,729.2$ 40,278.9$ 41,541.2$ 43,951.8$ New deposits/sales 1,020.0 993.2 1,023.4 981.8 1,074.4 Participant withdrawals and surrenders (694.2) (654.2) (567.9) (496.5) (717.3) Net flows 325.8 339.0 455.5 485.3 357.1 Investment performance/interest credited 1,376.2 (370.1) 914.6 1,882.2 692.4 Policy charges and other (18.0) (38.1) (19.0) (19.7) (19.5) Case acquisitions/(terminations), net (46.8) (1,381.1) (88.8) 62.8 (14.9) Balance, end of period 41,729.2$ 40,278.9$ 41,541.2$ 43,951.8$ 44,966.9$ Total retirement plan account values 71,629.2$ 69,905.0$ 72,143.1$ 76,597.1$ 77,894.8$ Account Value Activity Retirement Plans Quarterly Earnings Trends Retirement Plans 11
  15. 15. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Retirement Plans Account Values by Product ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Private Sector Pension Plans BEST of AMERICA annuity products 7,738.8$ 7,399.3$ 7,360.4$ 7,557.1$ 7,383.9$ BEST of AMERICA trust products 16,037.7 16,133.6 17,089.9 18,834.1 19,794.4 Subtotal BEST of AMERICA 23,776.5 23,532.9 24,450.3 26,391.2 27,178.3 Nationwide Financial Network products 1,316.5 1,304.8 1,256.1 1,268.2 1,020.6 Nationwide employee and agent benefit plans 4,207.1 4,204.7 4,322.0 4,435.6 4,200.4 Other 599.9 583.7 573.5 550.3 528.6 Total private sector pension plans 29,900.0$ 29,626.1$ 30,601.9$ 32,645.3$ 32,927.9$ Public Sector Pension Plans IRC Section 457 annuities 16,148.1$ 14,908.2$ 15,243.4$ 15,979.5$ 16,310.2$ Administration only agreements 25,581.1 25,370.7 26,297.8 27,972.3 28,656.7 Total public sector pension plans 41,729.2$ 40,278.9$ 41,541.2$ 43,951.8$ 44,966.9$ Total retirement plan account values 71,629.2$ 69,905.0$ 72,143.1$ 76,597.1$ 77,894.8$ Retirement Plans Sales by Product ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Private Sector Pension Plans BEST of AMERICA annuity products 351.0$ 327.8$ 291.0$ 260.4$ 318.5$ BEST of AMERICA trust products 1,277.5 976.9 1,024.5 1,225.1 1,487.4 Subtotal BEST of AMERICA 1,628.5 1,304.7 1,315.5 1,485.5 1,805.9 Nationwide Financial Network products 56.5 40.6 42.9 48.2 35.9 Other 12.6 20.8 15.0 21.0 21.0 Total private sector pension plan 1,697.6$ 1,366.1$ 1,373.4$ 1,554.7$ 1,862.8$ Public Sector Pension Plans IRC Section 457 annuities 407.3$ 389.0$ 381.6$ 355.4$ 389.7$ Administration only agreements 612.6 604.2 641.8 626.3 684.6 Other - - - - - Total public sector pension plans 1,019.9$ 993.2$ 1,023.4$ 981.7$ 1,074.3$ Total retirement plan sales 2,717.5$ 2,359.3$ 2,396.8$ 2,536.4$ 2,937.1$ Retirement Plans Sales by Channel ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Private Sector Pension Plans Non-affiliated Independent broker/dealers 994.7$ 810.4$ 824.6$ 964.3$ 1,157.3$ Wirehouse and regional firms 337.0 245.8 239.7 282.2 326.3 Financial institutions 167.7 120.4 141.2 130.5 148.2 Pension plan administrators 135.9 139.6 124.8 132.5 175.8 Affiliated Nationwide Retirement Solutions 8.6 8.0 7.9 7.5 7.9 Nationwide agents 24.0 20.2 16.2 19.9 29.3 Nationwide Financial Network 29.7 21.7 19.0 17.8 18.0 Total private sector pension plans 1,697.6$ 1,366.1$ 1,373.4$ 1,554.7$ 1,862.8$ Public Sector Pension Plans Nationwide Retirement Solutions 1,019.9$ 993.2$ 1,023.4$ 981.7$ 1,074.3$ Total retirement plan sales 2,717.5$ 2,359.3$ 2,396.8$ 2,536.4$ 2,937.1$ 12
  16. 16. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Operating Revenues Asset fees 11.0$ 11.4$ 11.1$ 12.3$ 12.7$ Administrative fees 22.9 19.7 22.8 17.3 20.1 Surrender fees 6.3 4.9 6.1 5.3 5.0 Cost of insurance 98.9 100.2 100.6 102.3 104.1 Total policy charges 139.1 136.2 140.6 137.2 141.9 Net Investment Income General account assets 120.5 120.5 122.0 121.5 123.7 Charge for invested capital (4.3) (4.0) (3.4) (4.7) (4.1) Total net investment income 116.2 116.5 118.6 116.8 119.6 Traditional life premiums 75.9 75.1 73.2 74.8 76.9 Other income 7.2 5.9 6.2 6.0 4.1 Total operating revenues 338.4 333.7 338.6 334.8 342.5 Benefits Interest credited 45.6 49.5 49.5 47.1 47.3 Life benefits 115.1 106.8 108.3 114.2 107.0 Policyholder dividends 20.2 24.5 24.6 21.4 21.3 Total benefits 180.9 180.8 182.4 182.7 175.6 Expenses Commissions 35.6 32.3 29.9 33.0 31.2 General operating expenses 82.0 66.3 68.8 82.0 62.7 Deferral of policy acquisition costs (51.3) (47.2) (43.1) (59.2) (45.1) Subtotal 66.3 51.4 55.6 55.8 48.8 Amortization of policy acquisition costs 18.0 31.8 20.6 11.2 26.4 Amortization of value of business acquired 8.1 9.1 8.9 6.5 8.6 Interest expense on debt 0.2 0.1 0.1 0.2 0.2 Total expenses 92.6 92.4 85.2 73.7 84.0 Pre-tax operating earnings 64.9$ 60.5$ 71.0$ 78.4$ 82.9$ Key Ratios/Statistics General operating expenses to operating revenues 24.2% 19.9% 20.3% 24.5% 18.3% Pre-tax operating earnings to operating revenues 19.2% 18.1% 21.0% 23.4% 24.2% Average allocated capital 1,829.6$ 1,845.5$ 1,852.3$ 1,869.0$ 1,933.2$ Return on average allocated capital 9.8% 9.2% 10.4% 11.6% 12.1% Individual Protection Policy Reserves ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Individual investment life 5,573.1$ 5,435.3$ 5,545.3$ 5,842.5$ 5,927.3$ Corporate investment life - excluding experience rated BOLI 5,997.2 6,030.6 6,235.8 6,600.9 6,738.2 Corporate investment life - experience rated BOLI 1,143.6 1,134.2 1,189.8 1,913.5 1,965.7 Subtotal investment life 12,713.9 12,600.1 12,970.9 14,356.9 14,631.2 Traditional life 4,210.3 4,301.0 4,282.9 4,170.9 4,153.8 Universal life 1,108.1 1,129.7 1,158.6 1,159.0 1,169.3 Subtotal fixed life 5,318.4 5,430.7 5,441.5 5,329.9 5,323.1 Total individual protection policy reserves 18,032.3$ 18,030.8$ 18,412.4$ 19,686.8$ 19,954.3$ Individual Protection Insurance In Force ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Individual investment life 57,164.1$ 57,336.8$ 57,189.7$ 57,536.7$ 57,748.8$ Corporate investment life - excluding experience rated BOLI 10,633.5 10,730.7 10,904.1 11,451.7 11,560.9 Corporate investment life - experience rated BOLI 13,330.5 13,330.5 13,320.3 13,312.7 13,308.7 Subtotal investment life 81,128.1 81,398.0 81,414.1 82,301.1 82,618.4 Traditional life 37,678.6 39,040.1 40,326.2 41,061.3 40,504.2 Universal life 9,192.6 9,476.0 9,720.0 9,950.3 10,082.2 Subtotal fixed life 46,871.2 48,516.1 50,046.2 51,011.6 50,586.4 Total individual protection insurance in force 127,999.3$ 129,914.1$ 131,460.3$ 133,312.7$ 133,204.8$ Individual Protection Quarterly Earnings Trends 13
  17. 17. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Individual Protection Sales by Product ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 BEST of AMERICA Variable Life Series First year sales 34.2$ 37.8$ 34.3$ 31.7$ 29.4$ Renewal sales 75.9 72.3 72.9 78.2 79.3 Total BEST of AMERICA variable life series 110.1 110.1 107.2 109.9 108.7 Nationwide Financial Network Variable Life Products First year sales 5.0 9.8 4.5 1.7 1.6 Renewal sales 51.2 41.6 42.7 45.2 50.6 Total Nationwide Financial Network variable life products 56.2 51.4 47.2 46.9 52.2 Corporate Owned Life Insurance (COLI) First year sales 83.5 54.6 10.2 248.3 39.0 Renewal sales 198.7 92.1 57.5 61.0 164.2 Total COLI 282.2 146.7 67.7 309.3 203.2 Traditional/Universal life First year sales 21.6 23.0 32.5 25.5 19.8 Renewal sales 96.5 102.3 103.3 112.4 103.0 Total traditional/universal life 118.1 125.3 135.8 137.9 122.8 Total individual protection sales 566.6$ 433.5$ 357.9$ 604.0$ 486.9$ Individual Protection Sales by Channel ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Non-affiliated Independent broker/dealers 66.7$ 66.5$ 70.0$ 62.5$ 63.4$ Wirehouse and regional firms 14.3 16.9 15.1 16.3 18.9 Financial institutions 13.0 15.6 14.9 14.4 14.7 Life specialists 171.8 84.0 46.3 277.7 88.2 Affiliated Nationwide agents 87.8 88.7 91.8 102.8 89.7 Nationwide Financial Network 102.6 99.1 98.4 98.7 97.0 TBG Financial 110.4 62.7 21.4 31.6 115.0 Total individual protection sales 566.6$ 433.5$ 357.9$ 604.0$ 486.9$ 14
  18. 18. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Investment Life Quarterly Earnings Trends ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Operating Revenues Asset fees 11.0$ 11.4$ 11.1$ 12.3$ 12.7$ Administrative fees 19.5 16.5 18.7 13.0 16.0 Surrender fees 5.6 4.4 5.7 4.5 4.5 Cost of insurance 85.4 86.2 85.8 86.9 88.2 Total policy charges 121.5 118.5 121.3 116.7 121.4 Net Investment Income General account assets 37.2 37.5 37.3 38.8 37.7 Charge for invested capital (4.3) (4.0) (3.4) (4.7) (4.1) Total net investment income 32.9 33.5 33.9 34.1 33.6 Other income 7.2 5.9 6.2 6.0 4.1 Total operating revenues 161.6 157.9 161.4 156.8 159.1 Benefits Interest credited 26.8 28.8 29.2 27.6 28.6 Life benefits 39.1 32.1 34.7 35.9 32.1 Total benefits 65.9 60.9 63.9 63.5 60.7 Expenses Commissions 27.9 22.9 16.7 22.9 22.7 General operating expenses 50.8 34.7 37.2 49.2 33.9 Deferral of policy acquisition costs (37.5) (31.1) (23.5) (41.0) (32.8) Subtotal 41.2 26.5 30.4 31.1 23.8 Amortization of policy acquisition costs 12.6 24.3 19.4 23.9 17.1 Amortization of value of business acquired 5.9 6.8 6.2 4.6 6.3 Interest expense on debt 0.2 0.1 0.1 0.2 0.2 Total expenses 59.9 57.7 56.1 59.8 47.4 Pre-tax operating earnings 35.8$ 39.3$ 41.4$ 33.5$ 51.0$ Key Ratios/Statistics Cost of insurance per $1,000 of average net amount at risk (1) 6.07$ 6.11$ 6.08$ 6.16$ 6.23$ Life benefits per $1,000 of average net amount at risk (1) 2.78$ 2.28$ 2.46$ 2.54$ 2.27$ General operating expenses to operating revenues 31.4% 22.0% 23.0% 31.4% 21.3% Pre-tax operating earnings to operating revenues 22.2% 24.9% 25.7% 21.4% 32.1% Average allocated capital 1,262.2$ 1,271.9$ 1,275.7$ 1,283.5$ 1,295.1$ Return on average allocated capital 8.3% 9.0% 9.1% 7.9% 11.6% (1) Excludes experience rated BOLI corporate investment life. Investment Life Policy Reserve Activity ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Balance, beginning of period 12,074.1$ 12,713.9$ 12,600.1$ 12,970.9$ 14,356.8$ Deposits 419.9 288.1 320.6 1,180.0 360.8 Withdrawals and surrenders (146.2) (165.5) (128.5) (136.5) (220.9) Net flows 273.7 122.6 192.1 1,043.5 139.9 Investment performance/interest credited 470.8 (126.7) 326.7 619.6 261.8 Policy charges (121.8) (118.1) (121.3) (116.7) (121.5) Benefits and other 17.1 8.4 (26.7) (160.5) (6.2) Acquired business - - - - - Balance, end of period 12,713.9$ 12,600.1$ 12,970.9$ 14,356.8$ 14,630.8$ 15
  19. 19. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Fixed Life Quarterly Earnings Trends ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Operating Revenues Administrative fees 3.4$ 3.2$ 4.1$ 4.3$ 4.1$ Surrender fees 0.7 0.5 0.4 0.8 0.5 Cost of insurance 13.5 14.0 14.8 15.4 15.9 Total policy charges 17.6 17.7 19.3 20.5 20.5 Net investment income 83.3 83.0 84.7 82.7 86.0 Traditional life premiums 75.9 75.1 73.2 74.8 76.9 Total operating revenues 176.8 175.8 177.2 178.0 183.4 Benefits Interest credited 18.8 20.7 20.3 19.5 18.7 Life benefits 76.0 74.7 73.6 78.3 74.9 Policyholder dividends 20.2 24.5 24.6 21.4 21.3 Total benefits 115.0 119.9 118.5 119.2 114.9 Expenses Commissions 7.7 9.4 13.2 10.1 8.5 General operating expenses 31.2 31.6 31.6 32.8 28.8 Deferral of policy acquisition costs (13.8) (16.1) (19.6) (18.2) (12.3) Subtotal 25.1 24.9 25.2 24.7 25.0 Amortization of policy acquisition costs 5.4 7.5 1.2 (12.7) 9.3 Amortization of value of business acquired 2.2 2.3 2.7 1.9 2.3 Total expenses 32.7 34.7 29.1 13.9 36.6 Pre-tax operating earnings 29.1$ 21.2$ 29.6$ 44.9$ 31.9$ Key Ratios/Statistics Life benefits per $1,000 of average life insurance in force 6.57$ 6.26$ 5.97$ 6.20$ 5.90$ General operating expenses to operating revenues 17.6% 18.0% 17.8% 18.4% 15.7% Pre-tax operating earnings to operating revenues 16.5% 12.1% 16.7% 25.2% 17.4% Average allocated capital 567.4$ 573.6$ 576.6$ 585.5$ 638.1$ Return on average allocated capital 13.3% 9.6% 13.3% 19.9% 13.0% Fixed Life Policy Reserve Activity ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Traditional/Universal Life Balance, beginning of period 5,314.5$ 5,318.4$ 5,430.7$ 5,441.5$ 5,329.9$ Deposits 106.0 112.3 116.7 120.9 106.7 Withdrawals and surrenders (51.2) (57.2) (50.7) (55.4) (62.1) Net flows 54.8 55.1 66.0 65.5 44.6 Interest credited 22.7 20.7 20.6 19.9 19.3 Policy charges (17.6) (17.7) (19.3) (20.2) (20.7) Benefits and other (56.0) 54.2 (56.5) (176.8) (50.0) Balance, end of period 5,318.4$ 5,430.7$ 5,441.5$ 5,329.9$ 5,323.1$ 16
  20. 20. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Corporate and Other Quarterly Earnings Trends ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Operating Revenues Net Investment Income General account assets 90.8$ 102.2$ 95.8$ 109.7$ 115.9$ Periodic net coupon settlements on non-qualifying derivatives (0.3) (0.3) (0.3) (0.5) (0.5) Total net investment income 90.5 101.9 95.5 109.2 115.4 Operating realized gains (losses) 1.3 1.1 4.1 3.1 2.1 Other income 8.3 8.5 9.2 12.7 24.8 Total operating revenues 100.1 111.5 108.8 125.0 142.3 Benefits Interest Credited Products 45.4 50.4 55.0 57.9 58.1 Periodic net coupon settlements on non-qualifying derivatives 0.2 0.1 - (0.3) 0.1 Total benefits Total benefits 45.6 50.5 55.0 57.6 58.2 Expenses Commissions 6.1 5.3 7.4 6.7 7.0 General operating expenses 10.8 14.1 (0.5) 16.0 18.9 Amortization of value of business acquired 0.1 - - (0.1) - Interest expense on debt 25.9 25.0 25.2 27.0 24.6 Total expenses 42.9 44.4 32.1 49.6 50.5 Pre-tax operating earnings 11.6$ 16.6$ 21.7$ 17.8$ 33.6$ Medium Term Notes ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Key Ratios/Statistics Average Account Values: General account 4,060.1$ 4,084.7$ 4,008.6$ 4,284.7$ 4,473.7$ Earned rate 5.67% 5.94% 6.69% 6.52% 6.41% Credited rate 4.47% 4.94% 5.49% 5.41% 5.19% Interest spread on average general account values 1.20% 1.00% 1.20% 1.11% 1.22% Prepayment penalties and bond call premium income 0.12% 0.00% 0.05% 0.12% 0.21% Base interest spread on average general account values 1.08% 1.00% 1.15% 0.99% 1.01% Account Value Activity Balance, beginning of period 3,998.2$ 4,122.1$ 4,047.4$ 3,969.9$ 4,599.5$ Deposits 250.0 300.0 - 1,225.0 250.0 Maturities (125.0) (379.4) (73.8) (602.1) (500.0) Net flows Net flows 125.0 (79.4) (73.8) 622.9 (250.0) Interest credited and amortization 44.7 52.5 56.6 59.6 59.3 Other benefits - interest payments (45.8) (47.8) (60.3) (52.9) (60.9) Balance, end of period 4,122.1$ 4,047.4$ 3,969.9$ 4,599.5$ 4,347.9$ 17
  21. 21. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Customer Funds Managed and Administered ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Individual variable annuities 42,071.5$ 41,140.7$ 41,771.1$ 43,804.8$ 44,211.7$ Individual fixed annuities 7,746.6 7,425.0 6,995.6 6,536.1 6,158.4 Income products 2,025.1 1,970.6 1,994.0 2,025.6 2,043.8 Advisory services program 475.0 508.1 549.2 597.1 616.8 Subtotal individual investments 52,318.2 51,044.4 51,309.9 52,963.6 53,030.7 Private sector pension plans 29,900.0 29,626.1 30,601.9 32,645.3 32,927.9 Public sector pension plans 41,729.2 40,278.9 41,541.2 43,951.8 44,966.9 Subtotal retirement plans 71,629.2 69,905.0 72,143.1 76,597.1 77,894.8 Individual protection investment life 12,713.9 12,600.1 12,970.9 14,356.9 14,631.2 Individual protection fixed life 5,318.4 5,430.7 5,441.5 5,329.9 5,323.1 Subtotal individual protection 18,032.3 18,030.8 18,412.4 19,686.8 19,954.3 Medium term notes 4,122.1 4,047.4 3,969.9 4,599.5 4,347.9 Nationwide Bank - - - 222.3 853.1 Subtotal corporate and other 4,122.1 4,047.4 3,969.9 4,821.8 5,201.0 Customer funds managed and administered 146,101.8$ 143,027.6$ 145,835.3$ 154,069.3$ 156,080.8$ Separate Account Assets by Segment and Fund Type Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 ($ in millions) Individual Investments Equity 32,002.5$ 30,490.7$ 31,275.7$ 33,531.0$ 33,757.2$ Bond 3,809.9 4,134.1 4,355.0 4,499.2 4,666.4 Money market 1,392.0 1,802.4 1,590.5 1,429.1 1,569.5 Subtotal individual investments 37,204.4 36,427.2 37,221.2 39,459.3 39,993.1 Retirement Plans Equity 15,873.7$ 14,709.4$ 14,794.1$ 15,603.8$ 14,413.5$ Bond 1,851.0 1,782.8 1,830.4 1,934.8 2,674.8 Money market 468.2 508.8 514.3 472.4 523.3 Other 541.4 575.7 621.3 616.4 644.5 Subtotal retirement plans 18,734.3 17,576.7 17,760.1 18,627.4 18,256.1 Individual Protection Equity 7,653.4$ 7,397.0$ 7,744.9$ 8,672.3$ 8,818.8$ Bond 2,081.8 2,174.1 2,040.9 1,954.8 2,055.1 Money market 600.8 628.1 768.2 1,325.3 1,336.0 Subtotal individual protection 10,336.0 10,199.2 10,554.0 11,952.4 12,209.9 Corporate and Other Equity 597.2$ 561.7$ 534.0$ 592.5$ 749.2$ Bond 55.3 57.4 50.1 55.9 70.0 Money market 6.5 6.9 7.4 7.2 9.8 Subtotal corporate and other 659.0 626.0 591.5 655.6 829.0 Total Equity 56,126.8$ 53,158.8$ 54,348.7$ 58,399.6$ 57,738.7$ Bond 7,798.0 8,148.4 8,276.4 8,444.7 9,466.3 Money market 2,467.5 2,946.2 2,880.4 3,234.0 3,438.6 Other 541.4 575.7 621.3 616.4 644.5 Total separate account assets by fund type 66,933.7$ 64,829.1$ 66,126.8$ 70,694.7$ 71,288.1$ 18
  22. 22. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Securities Available-For-Sale Gross Gross Amortized Unrealized Unrealized Estimated ($ in millions) Cost Gains Losses Fair Value March 31, 2007 Fixed maturity securities: U.S. Treasury securities and obligations of U.S. Government corporations 209.7$ 12.4$ 1.6$ 220.5$ Agencies not backed by the full faith and credit of the U.S. Government 496.1 46.0 1.0 541.1 Obligations of states and political subdivisions 260.4 0.7 5.5 255.6 Debt securities issued by foreign governments 31.2 1.7 0.1 32.8 Corporate securities Public 9,293.5 211.2 100.1 9,404.6 Private 6,306.3 132.1 66.4 6,372.0 Mortgage-backed securities--U.S. Government backed 7,858.4 41.0 78.1 7,821.3 Asset-backed securities 3,699.4 43.0 33.7 3,708.7 Total fixed maturities 28,155.0 488.1 286.5 28,356.6 Equity securities 58.4 11.1 0.5 69.0 Total 28,213.4$ 499.2$ 287.0$ 28,425.6$ December 31, 2006 Fixed maturity securities: U.S. Treasury securities and obligations of U.S. Government corporations 179.0$ 12.2$ 2.1$ 189.1$ Agencies not backed by the full faith and credit of the U.S. Government 564.5 46.2 2.3 608.4 Obligations of states and political subdivisions 274.7 0.7 7.4 268.0 Debt securities issued by foreign governments 36.2 1.7 0.2 37.7 Corporate securities Public 9,732.8 220.0 127.4 9,825.4 Private 6,605.1 131.5 83.8 6,652.8 Mortgage-backed securities--U.S. Government backed 6,946.0 23.8 122.8 6,847.0 Asset-backed securities 3,728.9 45.5 42.8 3,731.6 Total fixed maturities 28,067.2 481.6 388.8 28,160.0 Equity securities 57.2 11.0 0.6 67.6 Total 28,124.4$ 492.6$ 389.4$ 28,227.6$ Aging of Gross Unrealized Losses on Securities Available-For-Sale 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, 2007 Fixed maturity securities: U.S. Treasury securities & obligations of U.S. Government corporations 78.2$ 0.7$ 29.6$ 0.9$ 107.8$ 1.6$ Agencies not backed by the full faith and credit of the U.S. Government 5.0 - 104.8 1.0 109.8 1.0 Obligations of states and political subdivisions 82.9 0.6 149.2 4.9 232.1 5.5 Debt securities issued by foreign governments - - 1.3 0.1 1.3 0.1 Corporate securities Public 2,230.1 23.7 3,250.6 76.4 5,480.7 100.1 Private 1,302.7 13.2 1,989.6 53.2 3,292.3 66.4 Mortgage-backed securities--U.S.. Government backed 658.8 3.1 3,555.6 75.0 4,214.4 78.1 Asset-backed securities 554.4 4.1 1,304.4 29.6 1,858.8 33.7 Total fixed maturities 4,912.1 45.4 10,385.1 241.1 15,297.2 286.5 Equity securities 17.9 0.2 3.4 0.3 21.3 0.5 Total 4,930.0$ 45.6$ 10,388.5$ 241.4$ 15,318.5$ 287.0$ Percentage of gross unrealized losses 16% 84% December 31, 2006 Fixed maturity securities: U.S. Treasury securities & obligations of U.S. Government corporations 66.5$ 1.0$ 29.9$ 1.1$ 96.4$ 2.1$ Agencies not backed by the full faith and credit of the U.S. Government 31.7 0.1 125.2 2.2 156.9 2.3 Obligations of states and political subdivisions 84.5 1.0 161.9 6.4 246.4 7.4 Debt securities issued by foreign governments 12.8 0.1 1.3 0.1 14.1 0.2 Corporate securities Public 2,627.7 27.8 3,525.8 99.6 6,153.5 127.4 Private 1,288.6 15.0 2,165.1 68.8 3,453.7 83.8 Mortgage-backed securities--U.S.. Government backed 966.9 7.6 4,194.0 115.2 5,160.9 122.8 Asset-backed securities 580.2 4.5 1,475.0 38.3 2,055.2 42.8 Total fixed maturities 5,658.9 57.1 11,678.2 331.7 17,337.1 388.8 Equity securities 17.6 0.3 3.4 0.3 21.0 0.6 Total 5,676.5$ 57.4$ 11,681.6$ 332.0$ 17,358.1$ 389.4$ Percentage of gross unrealized losses 15% 85% or Equal to One Year Unrealized Losses MoreUnrealized Losses Less Than 19
  23. 23. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Amortized Fair Amortized Fair ($ in millions) Cost Value Cost Value NAIC Designation Rating Agency Equivalent Designation 19,362.3$ 19,351.3$ 19,727.7$ 19,807.0$ 6,928.8 6,997.2 6,787.2 6,875.8 1,091.5 1,101.6 1,100.0 1,108.9 647.8 659.8 511.1 524.9 18.5 27.3 21.1 29.7 18.3 22.8 7.9 10.3 28,067.2$ 28,160.0$ 28,155.0$ 28,356.6$ ($ in millions) Apartment March 31, 2007 Office Warehouse Retail & Other Total New England 175.2$ 15.2$ 85.9$ 94.4$ 370.7$ Middle Atlantic 177.6 323.3 321.9 181.4 1,004.2 East North Central 95.9 237.6 605.8 515.8 1,455.1 West North Central 38.9 89.5 65.3 143.3 337.0 South Atlantic 184.5 489.1 801.7 680.3 2,155.6 East South Central 30.7 57.5 122.3 154.0 364.5 West South Central 27.3 164.7 177.5 241.1 610.6 Mountain 114.5 136.0 208.9 347.3 806.7 Pacific 348.9 434.9 452.0 360.8 1,596.6 Subtotal - Principal 1,193.5$ 1,947.8$ 2,841.3$ 2,718.4$ 8,701.0$ Valuation allowance (33.0) Unamortized premium 16.1 Change in fair value of hedged mortgage loans and commitments 5.7 Total mortgage loans on real estate, net 8,689.8$ Apartment December 31, 2006 Office Warehouse Retail & Other Total New England 176.4$ 15.3$ 99.6$ 84.2$ 375.5$ Middle Atlantic 196.3 328.4 359.2 186.0 1,069.9 East North Central 97.4 245.9 614.4 513.4 1,471.1 West North Central 40.2 90.2 65.9 138.3 334.6 South Atlantic 203.7 489.5 886.4 667.5 2,247.1 East South Central 34.6 58.0 127.8 164.1 384.5 West South Central 52.9 151.6 177.6 232.4 614.5 Mountain 114.7 136.8 206.4 354.9 812.8 Pacific 346.1 431.1 468.8 366.9 1,612.9 Subtotal - Principal 1,262.3$ 1,946.8$ 3,006.1$ 2,707.7$ 8,922.9$ Valuation allowance (36.0) Unamortized premium 17.8 Change in fair value of hedged mortgage loans and commitments 5.1 Total mortgage loans on real estate, net 8,909.8$ Mortgage Loans by Region and Property Type 6 In or near default Total fixed maturities March 31, 2007 1 Aaa/Aa/A 2 Baa 3 Ba Credit Quality of Fixed Maturity Securities Available-For-Sale 4 B 5 Caa and lower December 31, 2006 20
  24. 24. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Deferred Policy Acquisition Costs Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Three Months Ended March 31, 2007 Balance, beginning of period 1,995.8$ 293.3$ 1,530.1$ 31.8$ 3,851.0$ Capitalization 91.0 9.0 45.1 - 145.1 Amortization (99.5) (9.8) (26.4) - (135.7) Adjustments to unrealized gains and losses on securities available-for-sale and other - - - (40.8) (40.8) Balance, end of period 1,987.3$ 292.5$ 1,548.8$ (9.0)$ 3,819.6$ Year Ended December 31, 2006 Balance, beginning of period 1,997.7$ 294.8$ 1,410.9$ (18.0)$ 3,685.4$ Capitalization 350.8 36.8 200.8 - 588.4 Amortization (352.7) (38.3) (81.6) - (472.6) Adjustments to unrealized gains and losses on securities available-for-sale and other - - - 49.8 49.8 Balance, end of period 1,995.8$ 293.3$ 1,530.1$ 31.8$ 3,851.0$ 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$ 21
  25. 25. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 ($ in millions) Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 1,157.8$ 80.3$ 4,633.0$ 285.2$ 2 4,698.1 276.5 3,194.1 174.3 3 3,196.1 168.2 3,639.6 186.5 4 3,637.1 180.4 4,425.8 191.2 5 4,397.2 184.1 4,584.6 165.4 6 4,531.8 159.2 4,697.1 169.4 7 4,640.3 162.8 4,599.3 153.3 8 4,454.4 146.6 2,862.0 97.0 9 2,662.3 94.0 2,514.9 89.7 10 2,412.4 87.3 1,934.5 84.0 11-15 6,791.4 286.6 5,635.7 233.9 16-20 1,289.9 49.6 783.7 30.1 21-27 342.9 4.0 300.5 2.3 Total: 44,211.7$ 1,879.6$ 14.4% 43,804.8$ 1,862.3$ 14.6% Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 3,000.3$ 200.6$ 3,748.9$ 253.1$ 2 3,521.0 212.8 4,649.3 259.9 3 4,361.5 224.6 4,844.1 239.2 4 4,519.7 199.0 5,106.3 243.4 5 4,752.0 210.0 4,917.0 206.2 6 4,662.3 189.1 3,813.5 148.0 7 3,569.7 128.5 3,708.0 121.0 8 3,006.1 96.8 2,624.7 101.5 9 2,169.5 84.9 2,315.0 84.8 10 2,029.1 75.5 1,690.1 62.5 11-15 4,386.3 168.0 3,427.8 132.6 16-20 512.5 19.4 316.6 13.6 21-27 306.0 2.2 320.6 2.3 Total: 40,796.0$ 1,811.4$ 13.5% 41,481.9$ 1,868.1$ 12.5% Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 4,500.3$ 310.6$ 3,922.1$ 310.3$ 2 4,638.5 284.0 4,442.5 312.6 3 5,014.8 283.3 4,327.7 303.1 4 4,864.6 275.1 3,564.3 190.1 5 3,886.5 170.6 3,579.4 158.0 6 3,833.3 140.9 2,996.5 132.1 7 3,114.6 116.5 2,817.0 83.2 8 2,685.2 72.8 1,956.2 59.9 9 1,877.4 52.3 1,410.6 40.9 10 1,415.8 35.7 937.1 27.5 11-15 2,493.5 61.0 1,590.1 43.9 16-20 186.4 3.5 143.9 3.0 21-25 325.0 1.2 194.5 1.7 Total: 38,835.9$ 1,807.5$ 12.5% 31,881.9$ 1,666.3$ 14.4% December 31, 2002 Individual Variable Annuity Deferred Acquisition Costs March 31, 2007 December 31, 2006 December 31, 2004 December 31, 2003 December 31, 2005 22
  26. 26. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Three Months Ended March 31, 2007 Balance, beginning of period 14.1$ 4.9$ 367.5$ 6.2$ 392.7$ Amortization (1.3) (0.4) (8.6) - (10.3) Adjustments to realized and unrealized gains and losses on securities available-for-sale 4.6 (1.4) - - 3.2 Balance, end of period 17.4$ 3.1$ 358.9$ 6.2$ 385.6$ Year Ended December 31, 2006 Balance, beginning of period 29.4$ 15.7$ 398.2$ 6.4$ 449.7$ Amortization (6.5) (6.9) (32.6) - (46.0) Adjustments to realized and unrealized gains and losses on securities available-for-sale (8.8) (3.9) 1.9 (0.2) (11.0) Balance, end of period 14.1$ 4.9$ 367.5$ 6.2$ 392.7$ 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$ Value of Business Acquired 23
  27. 27. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 ($ in millions) Account Account GMDB Benefit Type Values Gross Net Values Gross Net Return of premium 9,127.1$ 37.9$ 15.0$ 9,243.7$ 42.9$ 17.1$ Reset 17,795.1 156.1 23.5 17,752.7 177.3 26.0 Ratchet 14,164.4 181.3 21.1 13,651.6 195.2 17.4 Roll-up 547.8 82.4 5.4 568.1 87.7 5.7 Combo 2,577.3 34.2 17.0 2,588.7 30.1 14.9 Subtotal 44,211.7$ 491.9 82.0 43,804.8$ 533.2 81.1 Earnings enhancement 482.6$ 42.9$ 42.9$ 477.8$ 41.1$ 41.1$ Total 534.8$ 124.9$ 574.3$ 122.2$ GAAP GMDB reserves 32.4$ 29.6$ Statutory GMDB reserves 27.5$ 27.3$ Account Account GMDB Benefit Type Values Gross Net Values Gross Net Return of premium 9,272.7$ 83.3$ 32.5$ 9,848.6$ 136.8$ 54.1$ Reset 17,130.4 388.0 61.8 18,084.1 751.7 158.1 Ratchet 11,233.2 410.3 31.6 10,322.1 644.5 46.3 Roll-up 629.1 143.8 8.4 707.2 167.5 9.7 Combo 2,530.6 45.7 22.3 2,519.9 39.8 19.2 Subtotal 40,796.0$ 1,071.1 156.6 41,481.9$ 1,740.3 287.4 Earnings enhancement 418.5$ 27.6$ 27.6$ 310.1$ 18.0$ 18.0$ Total 1,098.7$ 184.2$ 1,758.3$ 305.4$ GAAP GMDB reserves 27.2$ - Statutory GMDB reserves 38.4$ - Account Account GMDB Benefit Type Values Gross Net Values Gross Net Return of premium 9,713.8$ 247.8$ 199.8$ 8,743.2$ 832.0$ 736.7$ Reset 17,834.0 1,313.4 579.6 15,272.2 3,532.5 1,842.1 Ratchet 8,433.7 1,008.3 147.8 6,087.5 1,977.1 411.2 Roll-up 725.7 195.8 22.3 675.0 290.9 34.3 Combo 2,128.7 42.0 39.6 1,104.0 114.8 111.6 Subtotal 38,835.9$ 2,807.3 989.1 31,881.9$ 6,747.3 3,135.9 Earnings enhancement 314.1$ 10.9$ 10.9$ 213.1$ 1.7$ 1.7$ Total 2,818.2$ 1,000.0$ 6,749.0$ 3,137.6$ 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 3.8$ 5.4$ 4.1$ 1.1$ 0.6$ 15.0$ 60 Reset 2.1 5.4 7.9 6.4 1.7 23.5 64 Ratchet 2.2 5.0 7.4 4.3 2.2 21.1 66 Roll-up 0.4 1.0 1.7 1.4 0.9 5.4 70 Combo 1.1 3.1 5.6 4.8 2.4 17.0 68 Subtotal 9.6 19.9 26.7 18.0 7.8 82.0 65 Earnings enhancement 4.5 12.7 17.8 7.9 - 42.9 62 Total 14.1$ 32.6$ 44.5$ 25.9$ 7.8$ 124.9$ 64 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 "net premiums." 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 "anniversary" 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. Individual Variable Annuity Guaranteed Minimum Death Benefits December 31, 2002 Net Amount at RiskNet Amount at Risk December 31, 2004 Net Amount at Risk December 31, 2006 Net Amount at Risk, Net of Reinsurance by Benefit Type and Age at March 31, 2007 March 31, 2007 Net Amount at Risk Net Amount at Risk December 31, 2005 Net Amount at Risk December 31, 2003 24
  28. 28. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 ($ in millions) Account Account GMAB Benefit Type Values Gross Net Values Gross Net 5 Year 2,359.1$ 0.4$ 0.4$ 2,131.1$ 0.1$ 0.1$ 7 Year 2,038.0 0.4 0.4 1,865.7 0.1 0.1 10 Year 816.0 0.1 0.1 784.0 - - Total 5,213.1$ 0.9$ 0.9$ 4,780.8$ 0.2$ 0.2$ CPPLI included in totals 3,380.7$ 0.9$ 0.9$ 2,946.4$ 0.2$ 0.2$ Account Account GMAB Benefit Type Values Gross Net Values Gross Net 5 Year 1,041.8$ 0.5$ 0.5$ 512.2$ 0.1$ 0.1$ 7 Year 1,103.5 0.2 0.2 647.5 - - 10 Year 595.5 0.1 0.1 332.4 - - Total 2,740.8$ 0.8$ 0.8$ 1,492.1$ 0.1$ 0.1$ CPPLI included in totals 939.1$ 0.6$ 0.6$ - - - ($ in millions) Account Account GMIB Benefit Type Values Gross Net Values Gross Net Ratchet 444.2$ 0.1$ -$ 450.6$ 0.2$ -$ Roll-up 1,178.5 2.9 - 1,187.1 3.3 - Combo 0.6 - - 0.5 - - Total 1,623.3$ 3.0$ -$ 1,638.2$ 3.5$ -$ Account Account GMIB Benefit Type Values Gross Net Values Gross Net Ratchet 444.7$ 0.3$ -$ 439.7$ 0.7$ -$ Roll-up 1,189.3 5.0 - 1,188.7 7.2 - Combo 0.5 - - 1.0 - - Total 1,634.5$ 5.3$ -$ 1,629.4$ 7.9$ -$ Account Account GMIB Benefit Type Values Gross Net Values Gross Net Ratchet 418.0$ 1.0$ -$ 307.8$ 4.6$ -$ Roll-up 1,132.2 8.6 - 664.4 20.4 - Combo 1.1 - - 0.1 - - Total 1,551.3$ 9.6$ -$ 972.3$ 25.0$ -$ ($ in millions) Account Account GLWB Benefit Type Values Gross Net Values Gross Net L.INC 1,358.4$ -$ -$ 993.8$ -$ -$ Total 1,358.4$ -$ -$ 993.8$ -$ -$ 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. L.INC: Lifetime Income is a living benefit rider that provides a lifetime withdrawal benefit to the insured. The withdrawal percent is based on the insured's age at the time of the first withdrawal. Individual Variable Annuity Guaranteed Minimum Income Benefits March 31, 2007 December 31, 2006 Individual Variable Annuity Guaranteed Lifetime Withdrawal Benefits Net Amount at Risk Net Amount at Risk March 31, 2007 December 31, 2006 December 31, 2004 Net Amount at Risk Net Amount at Risk Net Amount at Risk December 31, 2005 Net Amount at Risk December 31, 2005 Net Amount at Risk December 31, 2002 Net Amount at Risk December 31, 2003 Net Amount at Risk December 31, 2004 Net Amount at Risk Individual Variable Annuity Guaranteed Minimum Accumulation Benefits March 31, 2007 December 31, 2006 Net Amount at Risk Net Amount at Risk 25
  29. 29. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Individual Variable Annuity Guaranteed Minimum Death Benefit Reserve Activity ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Balance, beginning of period 27.2$ 26.9$ 30.2$ 31.8$ 29.6$ Expense provision 8.3 8.3 8.4 7.9 8.4 Net claims paid (8.6) (5.0) (6.8) (10.1) (5.6) Balance, end of period 26.9$ 30.2$ 31.8$ 29.6$ 32.4$ Individual Variable Annuity Guaranteed Minimum Accumulation Benefit Embedded Derivative Activity ($ in millions) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Balance, beginning of period 67.9$ 77.6$ 102.4$ 109.7$ 116.3$ Value of new business sold 26.8 26.0 18.2 24.2 17.7 Change in fair value (17.1) (1.2) (10.9) (17.6) (13.7) Balance, end of period 77.6$ 102.4$ 109.7$ 116.3$ 120.3$ CPPLI included in end of period balance 16.3$ 20.7$ 15.2$ 22.0$ 1.0$ Individual Fixed Annuity and Fixed Option of Variable Annuity Summary of Crediting Rate Detail as of March 31, 2007 Account Wtd. Avg. Account Wtd. Avg. ($ in millions) Value Crediting Rate Value Crediting Rate Minimum interest rate of 3.50% or greater -$ - 1,220.9$ 4.16% Minimum interest rate of 3.0% to 3.49% 1,937.9 4.53% 4,423.6 3.14% Minimum interest rate lower than 3.00% 845.3 3.33% 397.3 3.51% MVA with no minimum interest rate guarantee - - - - Total 2,783.2$ 4.17% 6,041.8$ 3.37% Account Wtd. Avg. Account Wtd. Avg. Value Crediting Rate Value Crediting Rate Minimum interest rate of 3.50% or greater -$ - 1,220.9 4.16% Minimum interest rate of 3.0% to 3.49% - - 6,361.5 3.56% Minimum interest rate lower than 3.00% 44.7 3.94% 1,287.3 3.41% MVA with no minimum interest rate guarantee 1,620.6 2.87% 1,620.6 2.87% Total 1,665.3$ 2.90% 10,490.3$ 3.51% ResetRatchet TotalMVA & Other 26
  30. 30. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Historical Financial Highlights ($ in millions except for per share data) 2002 2003 2004 2005 2006 Operating Revenues Individual investments 1,210.4$ 1,392.8$ 1,477.4$ 1,514.5$ 1,514.3$ Retirement plans 898.8 930.5 979.5 1,041.7 1,110.9 Individual protection 1,001.9 1,348.7 1,350.1 1,348.5 1,345.5 Corporate and other 220.4 278.1 310.0 385.0 445.4 Total operating revenues 3,331.5$ 3,950.1$ 4,117.0$ 4,289.7$ 4,416.1$ Net realized gains (losses) on investments, hedging instruments and hedged items (1) (87.6) (86.3) (40.9) 18.2 (0.6) Total revenues 3,243.9$ 3,863.8$ 4,076.1$ 4,307.9$ 4,415.5$ Pre-tax Operating Earnings (Loss) Individual investments (120.5)$ 182.9$ 234.4$ 237.0$ 210.8$ Retirement plans 142.5 152.8 180.3 187.8 216.5 Individual protection 188.1 215.5 242.7 258.2 274.8 Corporate and other 18.2 54.8 58.6 55.7 67.7 Pre-tax operating earnings 228.3$ 606.0$ 716.0$ 738.7$ 769.8$ Federal income tax expense 25.7 150.1 181.7 126.7 61.9 Net operating earnings 202.6$ 455.9$ 534.3$ 612.0$ 707.9$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) (56.9) (56.2) (26.6) 11.9 (0.4) Adjustment to amortization related to net realized gains (losses), net of taxes - - - (0.5) 6.3 Discontinued operations, net of taxes (1.5) (1.3) (2.3) (24.7) - Cumulative effect of adoption of accounting principles, net of taxes - (0.6) (3.4) - - Net income 144.2$ 397.8$ 502.0$ 598.7$ 713.8$ Per Diluted Share Net operating earnings 1.53$ 2.99$ 3.49$ 3.98$ 4.70$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) (0.43) (0.37) (0.17) 0.08 - Adjustment to amortization related to net realized gains (losses), net of taxes - - - - 0.04 Discontinued operations, net of taxes (0.01) (0.01) (0.02) (0.16) - Cumulative effect of adoption of accounting principles, net of taxes - - (0.02) - - Net income 1.09$ 2.61$ 3.28$ 3.90$ 4.74$ Sales by Channel Non-affiliated Independent broker/dealers 4,391.2$ 4,615.1$ 5,223.2$ 5,266.0$ 5,758.2$ Wirehouse and regional firms 2,204.8 1,995.0 1,992.1 1,912.5 2,433.6 Financial institutions 4,180.6 3,758.2 2,618.5 1,808.0 2,295.1 Pension plan administrators 747.4 574.8 476.1 469.0 532.8 Life specialists 510.6 387.5 382.8 382.4 580.6 Affiliated Nationwide Retirement Solutions 2,633.1 3,209.9 3,665.9 3,914.7 4,050.2 Nationwide agents 736.7 686.3 714.3 757.8 787.8 Nationwide Financial Network 274.5 793.6 760.9 658.0 698.7 TBG Financial 146.9 160.9 184.2 275.4 226.1 Total 15,825.8$ 16,181.3$ 16,018.0$ 15,443.8$ 17,363.1$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Note: The results of operations of Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) are reflected as discontinued operations for 2005 and all prior years. In addition, the results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. 27
  31. 31. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 ($ in millions except for per share data) 2002 2003 2004 2005 2006 Balance Sheet Data Total assets 95,560.3$ 111,088.2$ 116,950.6$ 116,159.9$ 119,411.6$ Total customer funds managed and administered 99,036.6$ 125,171.9$ 137,994.8$ 142,465.2$ 154,069.3$ Shareholder's equity Including AOCI 4,443.3$ 4,875.4$ 5,215.1$ 5,350.4$ 5,538.3$ AOCI 400.3 504.9 432.2 100.7 31.9 Excluding AOCI 4,043.0$ 4,370.5$ 4,782.9$ 5,249.7$ 5,506.4$ Net operating return on average equity excluding AOCI 6.0% 10.9% 11.7% 12.2% 13.1% Adjusted net operating return on average equity excluding AOCI (1) 6.0% 10.9% 11.7% 11.4% 11.2% Statutory capital and surplus 2,015.7$ 2,730.0$ 2,967.5$ 3,262.1$ 3,336.6$ Stock Data Closing Price 28.65$ 33.06$ 38.23$ 44.00$ 54.20$ Weighted average shares outstanding Basic 132.4 151.8 152.1 152.9 149.9 Diluted 132.6 152.3 152.9 153.6 150.7 Book value per share Including AOCI 29.25$ 32.10$ 34.20$ 35.08$ 37.93$ Excluding AOCI 26.62$ 28.77$ 31.36$ 34.42$ 37.72$ (1) 2005 return adjusted for $37.9 million impact of one-time tax adjustments associated with separate account dividend received deductions. 2006 return adjusted for $113.1 million of released tax reserves and associated tax-related adjustments relating to prior tax years. Note: The results of operations of Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) are reflected as discontinued operations for 2005 and all prior years. In addition, the results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. Historical Financial Highlights 28
  32. 32. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 ($ in millions) 2002 2003 2004 2005 2006 Operating Revenues Asset fees 547.6$ 547.2$ 620.7$ 639.9$ 691.2$ Cost of insurance charges 266.5 371.3 379.7 388.5 402.0 Administrative fees 125.5 107.7 117.9 114.9 139.1 Surrender fees 85.3 94.2 104.3 98.2 83.7 Total policy charges 1,024.9 1,120.4 1,222.6 1,241.5 1,316.0 Traditional life premiums 302.3 426.2 402.7 399.9 441.5 Net investment income 1,892.5 2,198.0 2,231.7 2,343.9 2,298.5 Operating realized gains and (losses) 8.9 15.7 8.7 2.6 9.6 Other income 102.9 189.8 251.3 301.8 350.5 Total operating revenues 3,331.5 3,950.1 4,117.0 4,289.7 4,416.1 Benefits Interest credited 1,260.7 1,367.6 1,328.3 1,380.9 1,380.3 Life insurance and annuity benefits 392.0 581.7 548.6 574.9 646.8 Policyholder dividends 63.5 105.7 101.4 107.3 90.7 Total benefits 1,716.2 2,055.0 1,978.3 2,063.1 2,117.8 Expenses Commissions 629.0 594.9 565.4 546.7 648.4 General operating expenses 660.1 777.5 811.4 776.1 846.2 Debt extinguishment costs - - - 21.7 - Deferral of policy acquisition costs (668.6) (620.1) (539.2) (489.0) (588.4) Subtotal 620.5 752.3 837.6 855.5 906.2 Amortization of policy acquisition costs 674.6 394.6 430.4 479.4 472.6 Amortization of value of business acquired 15.2 46.4 52.3 45.0 46.0 Interest expense on debt 76.7 95.8 102.4 108.0 103.7 Total expenses 1,387.0 1,289.1 1,422.7 1,487.9 1,528.5 Pre-tax operating earnings 228.3$ 606.0$ 716.0$ 738.7$ 769.8$ Federal income tax expense 25.7 150.1 181.7 126.7 61.9 Net operating earnings 202.6$ 455.9$ 534.3$ 612.0$ 707.9$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 14.4 69.0 64.8 63.0 59.7 Realized losses on sales, net of hedging (9.8) (20.8) (19.5) (18.4) (48.9) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (78.6) (110.7) (67.1) (26.9) (11.0) Credit default swaps (4.2) 8.6 0.3 (4.8) (0.8) Derivatives, excluding hedging gains and losses on sales and credit default swaps 6.2 0.8 (3.4) 0.8 (0.4) Amounts credited to policyholder dividend obligation - (3.5) (4.7) (3.3) - Adjustment to VOBA amortization 15.1 0.4 3.0 1.5 1.0 Subtotal (56.9) (56.2) (26.6) 11.9 (0.4) Adjustment to amortization related to net realized gains (losses), net of taxes - - - (0.5) 6.3 Discontinued operations, net of taxes (1.5) (1.3) (2.3) (24.7) - Cumulative effect of adoption of accounting principles, net of taxes - (0.6) (3.4) - - Net income 144.2$ 397.8$ 502.0$ 598.7$ 713.8$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Note: The results of operations of Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) are reflected as discontinued operations for 2005 and all prior years. In addition, the results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. Historical Consolidated Earnings Trends 29
  33. 33. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Historical Consolidated Balance Sheet ($ in millions, except per share data) 2002 2003 2004 2005 2006 Assets Investments Securities available-for-sale: Fixed maturity securities 27,754.2$ 30,787.1$ 31,516.8$ 30,106.0$ 28,160.0$ Equity securities 134.7 128.7 87.0 75.6 67.6 Trading assets - 4.9 15.9 34.4 24.3 Mortgage loans 8,486.5 8,964.7 9,267.5 9,148.6 8,909.8 Real estate 145.6 123.4 108.3 108.7 76.7 Policy loans 986.4 963.2 987.2 930.6 966.9 Other long-term investments 205.0 194.6 604.2 691.9 780.1 Short-term investments 1,420.1 1,970.3 2,009.9 2,073.2 2,215.6 Total investments 39,132.5 43,136.9 44,596.8 43,169.0 41,201.0 Cash 21.7 11.5 52.4 16.4 20.2 Accrued investment income 402.4 439.6 428.7 396.3 373.8 Deferred policy acquisition costs 3,026.9 3,329.9 3,561.1 3,685.4 3,851.0 Value of business acquired 569.3 523.0 480.4 449.7 392.7 Other intangible assets 58.7 52.3 48.7 45.6 43.6 Goodwill 399.4 406.7 382.3 364.5 359.0 Other assets 1,601.1 2,250.7 2,497.0 2,069.2 2,475.6 Assets held in separate accounts 50,348.3 60,937.6 64,903.2 65,963.8 70,694.7 Total assets 95,560.3$ 111,088.2$ 116,950.6$ 116,159.9$ 119,411.6$ Liabilities and shareholders' equity Future policy benefits and claims 36,274.3$ 40,049.3$ 41,077.2$ 39,748.1$ 38,097.8$ Short-term debt 2.7 205.3 230.8 252.3 85.2 Long term debt 1,197.6 1,405.6 1,406.0 1,398.0 1,398.5 Other liabilities 3,294.1 3,615.0 4,118.3 3,447.3 3,597.1 Liabilities related to separate accounts 50,348.3 60,937.6 64,903.2 65,963.8 70,694.7 91,117.0 106,212.8 111,735.5 110,809.5 113,873.3 Shareholders' equity 4,443.3 4,875.4 5,215.1 5,350.4 5,538.3 Total liabilities and shareholders' equity 95,560.3$ 111,088.2$ 116,950.6$ 116,159.9$ 119,411.6$ Capital Structure 2002 2003 2004 2005 2006 Total capital, including AOCI 5,640.9$ 6,281.0$ 6,621.1$ 6,748.4$ 6,936.8$ Less AOCI 400.3 504.9 432.2 100.7 31.9 Total capital, excluding AOCI 5,240.6$ 5,776.1$ 6,188.9$ 6,647.7$ 6,904.9$ Leverage including AOCI Long-term debt--to--total capital 21.2% 22.4% 21.2% 20.7% 20.2% Leverage excluding AOCI Long-term debt--to--total capital 22.9% 24.3% 22.7% 21.0% 20.3% Ratio of pre-tax operating earnings before interest expense to interest expense 4.0X 7.3X 8.0X 7.8X 8.4X 30
  34. 34. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Individual Investments ($ in millions) 2002 2003 2004 2005 2006 Operating Revenues Asset fees 375.6$ 370.9$ 435.5$ 461.9$ 511.4$ Administrative fees 23.3 12.1 15.7 16.2 20.4 Surrender fees 61.1 56.0 62.2 62.1 56.6 Total policy charges 460.0 439.0 513.4 540.2 588.4 Net Investment Income General account assets 717.4 886.5 895.3 895.9 806.3 Charge for invested capital (36.4) (26.1) (22.5) (26.0) (25.2) Total net investment income 681.0 860.4 872.8 869.9 781.1 Premiums on income products 69.4 93.4 90.8 102.9 142.5 Other income - - 0.4 1.5 2.3 Total operating revenues 1,210.4 1,392.8 1,477.4 1,514.5 1,514.3 Benefits Interest credited 513.2 637.5 606.1 589.1 528.3 Immediate annuity benefits 55.1 82.0 76.1 89.2 126.9 Policy benefits 61.6 78.5 63.1 66.2 75.5 Total benefits 629.9 798.0 745.3 744.5 730.7 Expenses Commissions 381.7 345.5 288.3 257.5 340.5 General operating expenses 202.5 208.6 219.4 189.7 223.9 Deferral of policy acquisition costs (414.7) (376.8) (293.6) (250.7) (350.8) Subtotal 169.5 177.3 214.1 196.5 213.6 Amortization of policy acquisition costs 528.2 228.3 276.1 329.3 352.7 Amortization of value of business acquired 3.3 6.3 7.5 7.2 6.5 Total expenses 701.0 411.9 497.7 533.0 572.8 Pre-tax operating earnings (loss) (120.5)$ 182.9$ 234.4$ 237.0$ 210.8$ Key Ratios/Statistics Average Account Values: General account 10,793.7$ 15,340.9$ 16,211.1$ 15,966.7$ 14,041.3$ Separate account 30,091.0 29,170.6 34,198.8 35,600.5 37,223.3 Advisory services program - 7.8 99.1 309.3 508.1 Total average individual investment account values 40,884.7$ 44,519.3$ 50,509.0$ 51,876.5$ 51,772.7$ Earned rate 6.62% 5.78% 5.52% 5.61% 5.74% Credited rate 4.73% 4.16% 3.74% 3.69% 3.76% Interest spread on average general account values 1.88% 1.62% 1.78% 1.92% 1.98% Prepayment penalties and bond call premium income 0.06% 0.05% 0.12% 0.21% 0.15% Base interest spread on average general account values 1.82% 1.57% 1.66% 1.71% 1.83% Total asset fees to average separate account values 1.25% 1.27% 1.27% 1.30% 1.37% General operating expenses to average account values 0.50% 0.47% 0.43% 0.37% 0.43% Pre-tax operating earnings (loss) to average account values (0.29%) 0.41% 0.46% 0.46% 0.41% Pre-tax operating earnings (loss) to operating revenues (10.0%) 13.1% 15.9% 15.6% 13.9% Average allocated capital 1,658.8$ 1,805.6$ 1,747.0$ 1,671.0$ 1,499.3$ Return on average allocated capital (2.9%) 8.2% 10.4% 13.0% 11.7% Note: The results of operations of NFS Bermuda are reflected as discontinued operations for 2005 and all prior years. Individual Investments Account Value Activity ($ in millions) 2002 2003 2004 2005 2006 Individual Variable Annuities Balance, beginning of period 36,345.7$ 31,881.9$ 38,835.9$ 41,481.9$ 40,796.0$ Deposits 5,038.1 5,023.8 4,409.2 3,661.2 5,034.9 Withdrawals and surrenders (4,852.1) (4,347.8) (4,964.4) (5,574.2) (6,133.3) Net flows 186.0 676.0 (555.2) (1,913.0) (1,098.4) Investment performance/interest credited (4,852.6) 6,757.7 3,681.9 2,922.1 4,742.3 Policy charges (459.7) (437.2) (515.0) (543.4) (576.2) Benefits and other (0.6) (42.5) 34.3 9.0 (58.9) Acquisitions/(terminations), net 663.1 - - (1,160.6) - Balance, end of period 31,881.9$ 38,835.9$ 41,481.9$ 40,796.0$ 43,804.8$ Individual Fixed Annuities Balance, beginning of period 4,250.2$ 7,338.1$ 8,630.7$ 8,902.5$ 8,041.8$ Deposits 2,392.3 1,553.4 672.9 160.9 178.2 Withdrawals and surrenders (474.4) (605.1) (753.6) (1,044.0) (1,893.8) Net flows 1,917.9 948.3 (80.7) (883.1) (1,715.6) Policyholder interest credited 298.6 364.8 362.7 327.7 284.4 Policy charges (3.6) (8.1) (9.9) (11.4) (10.6) Benefits and other (2.8) (12.4) (0.3) (4.3) (63.9) Acquisitions/(terminations), net 877.8 - - (289.6) - Balance, end of period 7,338.1$ 8,630.7$ 8,902.5$ 8,041.8$ 6,536.1$ Income Products 1,676.5$ 1,840.7$ 1,901.6$ 1,978.3$ 2,025.6$ Advisory Services Program -$ 26.6$ 195.9$ 411.5$ 597.1$ Total individual investment account values 40,896.5$ 49,333.9$ 52,481.9$ 51,227.6$ 52,963.6$ Historical Earnings Trends 31
  35. 35. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Individual Investments ($ in millions) 2002 2003 2004 2005 2006 Individual Variable Annuities BEST of AMERICA products 25,880.2$ 31,058.5$ 33,573.0$ 32,937.0$ 36,106.8$ Private label annuities 5,339.5 7,123.4 7,350.9 7,398.9 7,319.7 Nationwide Financial Network and other 662.2 654.0 558.0 460.1 378.3 Total individual variable annuities 31,881.9$ 38,835.9$ 41,481.9$ 40,796.0$ 43,804.8$ Individual Fixed Annuities 7,338.1$ 8,630.7$ 8,902.5$ 8,041.8$ 6,536.1$ Income Products 1,676.5$ 1,840.7$ 1,901.6$ 1,978.3$ 2,025.6$ Advisory Services Program -$ 26.6$ 195.9$ 411.5$ 597.1$ Total individual investment account values 40,896.5$ 49,333.9$ 52,481.9$ 51,227.6$ 52,963.6$ Individual Investments Sales by Product ($ in millions) 2002 2003 2004 2005 2006 Individual Variable Annuities BEST of AMERICA products 3,824.7$ 4,066.8$ 3,674.3$ 3,135.5$ 4,390.9$ Private label annuities 795.3 659.3 449.0 346.6 356.6 Nationwide Financial Network and other 2.5 9.3 7.0 4.7 3.6 Total individual variable annuities 4,622.5$ 4,735.4$ 4,130.3$ 3,486.8$ 4,751.1$ Advisory Services Program -$ 25.7$ 181.0$ 231.3$ 222.8$ Total individual investment sales 7,330.3$ 6,738.8$ 5,338.5$ 4,109.2$ 5,391.1$ Individual Investments Sales by Channel ($ in millions) 2002 2003 2004 2005 2006 Individual Variable Annuities Non-affiliated Independent broker/dealers 1,750.1$ 1,683.7$ 1,534.6$ 1,304.3$ 1,606.5$ Wirehouse and regional firms 1,264.1 1,086.4 991.6 821.9 1,171.8 Financial institutions 1,313.9 1,657.0 1,270.8 1,031.5 1,558.8 Life specialists - 3.4 2.3 0.3 0.8 Affiliated Nationwide Retirement Solutions - - - - - Nationwide agents 214.8 185.3 224.6 230.3 245.1 Nationwide Financial Network 79.6 119.6 106.4 98.5 168.1 Total individual variable annuities 4,622.5$ 4,735.4$ 4,130.3$ 3,486.8$ 4,751.1$ Individual Fixed Annuities Non-affiliated Independent broker/dealers 47.3$ 48.7$ 17.1$ 7.0$ 13.4$ Wirehouse and regional firms 133.0 58.0 20.6 8.2 9.8 Financial institutions 2,224.0 1,628.7 774.3 129.4 72.4 Pension plan administrators 3.4 - - - - Affiliated Nationwide Retirement Solutions 13.2 - - - - Nationwide agents 126.0 60.7 38.6 44.3 79.7 Nationwide Financial Network 17.7 28.4 8.2 5.5 11.2 Total individual fixed annuities 2,564.6$ 1,824.5$ 858.8$ 194.4$ 186.5$ Income Products Non-affiliated Independent broker/dealers 61.9$ 75.6$ 70.8$ 76.9$ 98.1$ Wirehouse and regional firms 14.2 44.9 52.2 63.4 84.7 Financial institutions 65.4 15.5 23.4 29.2 30.7 Pension plan administrators - - - - - Affiliated Nationwide Retirement Solutions - - - - - Nationwide agents 1.7 7.5 8.7 12.7 11.6 Nationwide Financial Network - 9.7 13.3 14.5 5.6 Total income products 143.2$ 153.2$ 168.4$ 196.7$ 230.7$ Advisory Services Program Non-affiliated Independent broker/dealers -$ 21.2$ 160.0$ 205.3$ 180.5$ Wirehouse and regional firms - - - - - Financial institutions - 3.0 8.9 8.1 15.5 Pension plan administrators - - - - - Affiliated Nationwide Financial Network - 1.5 12.1 17.9 26.8 Total advisory services program -$ 25.7$ 181.0$ 231.3$ 222.8$ Total individual investment sales 7,330.3$ 6,738.8$ 5,338.5$ 4,109.2$ 5,391.1$ Account Values by Product 32
  36. 36. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Retirement Plans ($ in millions) 2002 2003 2004 2005 2006 Operating Revenues Asset fees 151.5$ 146.9$ 150.8$ 137.8$ 134.0$ Administrative fees 15.9 8.8 8.9 8.7 36.0 Surrender fees 6.7 5.7 12.1 8.2 4.5 Total policy charges 174.1 161.4 171.8 154.7 174.5 Net investment income 655.3 662.9 647.6 661.4 652.2 Benefits Interest credited 467.8 458.9 446.1 455.0 451.6 Expenses Commissions 85.8 92.7 111.3 133.3 151.6 General operating expenses 198.5 222.2 238.7 251.9 282.8 Deferral of policy acquisition costs (49.2) (43.8) (41.5) (37.2) (36.8) Subtotal 235.1 271.1 308.5 348.0 397.6 Amortization of policy acquisition costs 53.7 45.7 39.9 47.4 38.3 Amortization of value of business acquired (0.3) 2.0 4.7 3.5 6.9 Total expenses 288.5 318.8 353.1 398.9 442.8 Pre-tax operating earnings 142.5$ 152.8$ 180.3$ 187.8$ 216.5$ Key Ratios/Statistics Average Account Values: General account 8,888.5$ 9,786.0$ 10,175.6$ 10,881.2$ 11,093.0$ Separate account 19,505.3 18,743.7 20,287.9 19,792.0 18,512.4 Non insurance assets 2,142.2 4,312.4 8,315.6 12,500.3 16,515.0 Administration only 11,349.8 17,184.0 21,995.8 24,289.9 25,904.7 Total average retirement plan account values 41,885.8$ 50,026.1$ 60,774.9$ 67,463.4$ 72,025.1$ Earned rate 7.37% 6.77% 6.36% 6.08% 5.88% Credited rate 5.26% 4.69% 4.38% 4.18% 4.07% Interest spread on average general account values 2.11% 2.08% 1.98% 1.90% 1.81% Prepayment penalties and bond call premium income 0.11% 0.21% 0.18% 0.20% 0.09% Base interest spread on average general account values 2.00% 1.87% 1.80% 1.70% 1.72% Total asset fees to average separate account values 0.78% 0.78% 0.74% 0.70% 0.72% General operating expenses to average account values 0.47% 0.44% 0.39% 0.37% 0.39% Pre-tax operating earnings to average account values 0.34% 0.31% 0.30% 0.28% 0.30% Pre-tax operating earnings to operating revenues 15.8% 16.4% 18.4% 18.0% 19.5% Average allocated capital 611.7$ 689.2$ 724.4$ 773.9$ 815.1$ Return on average allocated capital 18.3% 17.0% 18.6% 20.4% 19.5% Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. Retirement Plans Account Value Activity ($ in millions) 2002 2003 2004 2005 2006 Private Sector Pension Plans Balance, beginning of period 17,769.7$ 18,170.0$ 22,789.2$ 26,503.1$ 29,758.8$ New deposits/sales 4,615.3 4,825.5 5,619.9 6,104.9 6,203.8 Participant withdrawals and surrenders (3,697.4) (3,824.9) (4,308.0) (4,721.0) (5,266.4) Net flows 917.9 1,000.6 1,311.9 1,383.9 937.4 Investment performance/interest credited (1,843.5) 3,811.9 2,596.3 2,083.3 3,654.9 Policy charges and other (148.3) (193.3) (194.3) (211.5) (226.9) Net, case acquisitions/(terminations) (57.0) - - - (1,478.9) Acquired business 1,531.2 - - - - Balance, end of period 18,170.0$ 22,789.2$ 26,503.1$ 29,758.8$ 32,645.3$ Public Sector Pension Plans Balance, beginning of period 26,076.2$ 23,537.6$ 34,545.4$ 38,925.2$ 40,092.0$ New deposits/sales 2,581.8 3,178.9 3,637.1 3,881.6 4,018.4 Participant withdrawals and surrenders (2,082.0) (1,878.3) (2,242.5) (2,638.9) (2,412.8) Net flows 499.8 1,300.6 1,394.6 1,242.7 1,605.6 Investment performance/interest credited (2,205.4) 4,781.0 2,869.6 2,577.1 3,802.9 Policy charges and other (62.3) (57.6) (65.8) (69.4) (94.8) Net, case acquisitions/(terminations) (770.7) 4,983.8 181.4 (2,583.6) (1,453.9) Balance, end of period 23,537.6$ 34,545.4$ 38,925.2$ 40,092.0$ 43,951.8$ Total retirement plan account values 41,707.6$ 57,334.6$ 65,428.3$ 69,850.8$ 76,597.1$ Historical Earnings Trends 33
  37. 37. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 ($ in millions) 2002 2003 2004 2005 2006 Private Sector Pension Plans BEST of AMERICA annuity products 9,229.3$ 9,818.1$ 8,845.8$ 7,791.9$ 7,557.1$ BEST of AMERICA trust products 2,878.3 6,212.3 10,558.4 14,479.5 18,834.1 Subtotal BEST of AMERICA 12,107.6 16,030.4 19,404.2 22,271.4 26,391.2 Nationwide Financial Network products 1,494.5 1,584.1 1,483.7 1,378.4 1,268.2 Nationwide employee and agent benefit plans 3,954.2 4,530.2 4,985.3 5,504.2 4,435.6 Other 613.7 644.5 629.9 604.8 550.3 Total private sector pension plans 18,170.0$ 22,789.2$ 26,503.1$ 29,758.8$ 32,645.3$ Public Sector Pension Plans IRC Section 457 annuities 12,065.1$ 13,916.9$ 14,889.2$ 15,790.2$ 15,979.5$ Administration only agreements 11,472.5 20,628.5 24,036.0 24,301.8 27,972.3 Total public sector pension plans 23,537.6$ 34,545.4$ 38,925.2$ 40,092.0$ 43,951.8$ Total retirement plan account values 41,707.6$ 57,334.6$ 65,428.3$ 69,850.8$ 76,597.1$ Retirement Plans Sales by Product ($ in millions) 2002 2003 2004 2005 2006 Private Sector Pension Plans BEST of AMERICA annuity products 2,611.2$ 2,034.9$ 1,679.7$ 1,371.1$ 1,230.2$ BEST of AMERICA trust products 1,617.0 2,110.2 3,232.0 3,974.9 4,504.0 Subtotal BEST of AMERICA 4,228.2 4,145.1 4,911.7 5,346.0 5,734.2 Nationwide Financial Network products 95.4 366.4 335.8 205.9 188.2 Other 46.8 31.0 28.1 75.8 69.4 Total private sector pension plans 4,370.4$ 4,542.5$ 5,275.6$ 5,627.7$ 5,991.8$ Public Sector Pension Plans IRC Section 457 annuities 1,375.6$ 1,442.4$ 1,514.2$ 1,544.8$ 1,533.3$ Administration only agreements 1,206.2 1,735.0 2,122.9 2,336.9 2,484.9 Total public sector pension plans 2,581.8$ 3,177.4$ 3,637.1$ 3,881.7$ 4,018.2$ Total retirement plan sales 6,952.2$ 7,719.9$ 8,912.7$ 9,509.4$ 10,010.0$ Retirement Plans Sales by Channel ($ in millions) 2002 2003 2004 2005 2006 Private Sector Pension Plans Non-affiliated Independent broker/dealers 2,243.0$ 2,534.6$ 3,154.4$ 3,412.0$ 3,594.0$ Wirehouse and regional firms 726.5 742.2 863.7 953.7 1,104.7 Financial institutions 519.0 411.4 493.3 551.2 559.8 Pension plan administrators 744.0 574.8 476.1 469.0 532.8 Affiliated Nationwide Retirement Solutions 38.1 32.5 28.8 33.0 32.0 Nationwide agents 45.6 58.1 71.2 95.5 80.3 Nationwide Financial Network 54.2 188.9 188.1 113.3 88.2 Total private sector pension plans 4,370.4$ 4,542.5$ 5,275.6$ 5,627.7$ 5,991.8$ Public Sector Pension Plans Nationwide Retirement Solutions 2,581.8$ 3,177.4$ 3,637.1$ 3,881.7$ 4,018.2$ Total retirement plan sales 6,952.2$ 7,719.9$ 8,912.7$ 9,509.4$ 10,010.0$ Account Values by Product Retirement Plans 34
  38. 38. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Individual Protection ($ in millions) 2002 2003 2004 2005 2006 Operating Revenues Asset fees 20.5$ 29.4$ 34.4$ 40.2$ 45.8$ Administrative fees 86.3 86.8 93.3 90.0 82.7 Surrender fees 17.5 32.5 30.0 27.9 22.6 Cost of insurance 266.5 371.3 379.7 388.5 402.0 Total policy charges 390.8 520.0 537.4 546.6 553.1 Net Investment Income General account assets 378.9 486.1 487.2 492.7 484.5 Charge for invested capital (17.2) (23.5) (19.3) (17.6) (16.4) Total net investment income 361.7 462.6 467.9 475.1 468.1 Traditional life premiums 232.9 332.8 311.9 297.0 299.0 Other income 16.5 33.3 32.9 29.8 25.3 Total operating revenues 1,001.9 1,348.7 1,350.1 1,348.5 1,345.5 Benefits Interest credited 188.2 193.3 189.4 190.7 191.7 Life benefits 275.3 421.2 409.4 419.5 444.4 Policyholder dividends 63.5 105.7 101.4 107.3 90.7 Total benefits 527.0 720.2 700.2 717.5 726.8 Expenses Commissions 153.8 135.7 142.0 130.3 130.8 General operating expenses 232.9 318.2 314.9 306.4 299.1 Deferral of policy acquisition costs (204.7) (199.5) (204.1) (201.1) (200.8) Subtotal 182.0 254.4 252.8 235.6 229.1 Amortization of policy acquisition costs 92.7 120.6 114.4 102.7 81.6 Amortization of value of business acquired 12.2 38.0 40.1 34.2 32.6 Interest expense on debt (0.1) - (0.1) 0.3 0.6 Total expenses 286.8 413.0 407.2 372.8 343.9 Pre-tax operating earnings 188.1$ 215.5$ 242.7$ 258.2$ 274.8$ Key Ratios/Statistics General operating expenses to operating revenues 23.2% 23.6% 23.3% 22.7% 22.2% Pre-tax operating earnings to operating revenues 18.8% 16.0% 18.0% 19.1% 20.4% Average allocated capital 1,224.2$ 1,722.4$ 1,731.1$ 1,788.9$ 1,849.2$ Return on average allocated capital 10.4% 8.4% 9.5% 10.2% 10.3% Note: The results of operations of NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) are reflected as discontinued operations for 2005 and all prior years. Individual Protection Policy Reserves ($ in millions) 2002 2003 2004 2005 2006 Individual investment life 3,514.8$ 4,443.8$ 4,962.1$ 5,329.5$ 5,842.5$ Corporate investment life - excluding experience rated BOLI 3,652.8 4,401.5 5,063.0 5,613.8 6,600.9 Corporate investment life - experience rated BOLI - - 381.1 1,130.8 1,913.5 Subtotal investment life 7,167.6 8,845.3 10,406.2 12,074.1 14,356.9 Traditional life 4,154.9 4,155.0 4,278.9 4,225.2 4,170.9 Universal life 836.4 896.8 997.9 1,089.3 1,159.0 Subtotal fixed life 4,991.3 5,051.8 5,276.8 5,314.5 5,329.9 Total individual protection policy reserves 12,158.9$ 13,897.1$ 15,683.0$ 17,388.6$ 19,686.8$ Individual Protection Insurance In Force ($ in millions) 2002 2003 2004 2005 2006 Individual investment life 55,581.0$ 56,478.4$ 56,836.7$ 57,021.7$ 57,536.7$ Corporate investment life - excluding experience rated BOLI 8,387.1 9,263.3 9,774.3 10,305.0 11,451.7 Corporate investment life - experience rated BOLI - - 1,129.8 13,330.5 13,312.7 Subtotal investment life 63,968.1 65,741.7 67,740.8 80,657.2 82,301.1 Traditional life 34,958.4 33,671.2 32,979.4 36,589.3 41,061.3 Universal life 7,922.5 8,407.4 8,505.5 9,114.6 9,950.3 Subtotal fixed life 42,880.9 42,078.6 41,484.9 45,703.9 51,011.6 Total individual protection insurance in force 106,849.0$ 107,820.3$ 109,225.7$ 126,361.1$ 133,312.7$ Historical Earnings Trends 35
  39. 39. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Individual Protection ($ in millions) 2002 2003 2004 2005 2006 BEST of AMERICA Variable Life Series First year sales 229.7$ 131.1$ 131.7$ 121.9$ 138.0$ Renewal sales 288.5 304.3 307.9 304.1 299.3 Total BEST of AMERICA variable life series 518.2 435.4 439.6 426.0 437.3 Nationwide Financial Network Variable Life Products First year sales 13.6 35.1 32.0 24.0 21.0 Renewal sales 55.0 229.1 223.8 205.0 180.7 Total Nationwide Financial Network variable life products 68.6 264.2 255.8 229.0 201.7 Corporate Owned Life Insurance (COLI) First year sales 247.6 173.2 157.0 227.8 396.6 Renewal sales 409.9 371.8 407.5 429.7 409.3 Total COLI 657.5 545.0 564.5 657.5 805.9 Traditional/Universal life First year sales 40.1 77.6 114.6 111.4 102.6 Renewal sales 258.9 400.3 392.3 401.3 414.5 Total traditional/universal life 299.0 477.9 506.9 512.7 517.1 Total individual protection sales 1,543.3$ 1,722.5$ 1,766.8$ 1,825.2$ 1,962.0$ Individual Protection Sales by Channel ($ in millions) 2002 2003 2004 2005 2006 Non-affiliated Independent broker/dealers 288.9$ 251.2$ 286.3$ 260.5$ 265.7$ Wirehouse and regional firms 67.0 63.5 64.0 65.3 62.6 Financial institutions 58.3 42.6 47.8 58.6 57.9 Life specialists 510.6 384.1 380.5 382.1 579.8 Affiliated Nationwide agents 348.6 374.7 371.2 375.0 371.1 Nationwide Financial Network 123.0 445.5 432.8 408.3 398.8 TBG Financial 146.9 160.9 184.2 275.4 226.1 Total individual protection sales 1,543.3$ 1,722.5$ 1,766.8$ 1,825.2$ 1,962.0$ Sales by Product 36
  40. 40. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Investment Life ($ in millions) 2002 2003 2004 2005 2006 Operating Revenues Asset fees 20.5$ 29.4$ 34.4$ 40.2$ 45.8$ Administrative fees 77.2 75.6 79.4 75.7 67.7 Surrender fees 16.5 31.7 29.2 26.3 20.2 Cost of insurance 229.1 331.2 334.9 339.0 344.3 Total policy charges 343.3 467.9 477.9 481.2 478.0 Net Investment Income General account assets 147.3 152.7 150.2 157.2 150.8 Charge for invested capital (17.2) (23.5) (19.3) (17.6) (16.4) Total net investment income 130.1 129.2 130.9 139.6 134.4 Other income 16.5 33.3 32.9 29.8 25.3 - - Total operating revenues 489.9 630.4 641.7 650.6 637.7 Benefits Interest credited 115.0 120.7 117.0 116.3 112.4 Life benefits 82.2 118.2 128.1 128.4 141.8 Total benefits 197.2 238.9 245.1 244.7 254.2 Expenses Commissions 136.1 107.1 99.5 95.6 90.4 General operating expenses 149.8 204.2 193.9 178.8 171.9 Deferral of policy acquisition costs (179.2) (161.7) (149.1) (142.8) (133.1) Subtotal 106.7 149.6 144.3 131.6 129.2 Amortization of policy acquisition costs 67.0 91.7 85.1 85.7 80.2 Amortization of value of business acquired 12.5 27.4 22.5 25.1 23.5 Interest expense on debt (0.1) - (0.1) 0.3 0.6 Total expenses 186.1 268.7 251.8 242.7 233.5 Pre-tax operating earnings 106.6$ 122.8$ 144.8$ 163.2$ 150.0$ Key Ratios/Statistics Cost of insurance per $1,000 of average net amount at risk(1) 5.86$ 5.84$ 5.88$ 6.01$ 6.10$ Life benefits per $1,000 of average net amount at risk(1) 2.10$ 2.08$ 2.25$ 2.28$ 2.51$ General operating expenses to operating revenues 30.6% 32.4% 30.2% 27.5% 27.0% Pre-tax operating earnings to operating revenues 21.8% 19.5% 22.6% 25.1% 23.5% Average allocated capital 819.0$ 1,143.4$ 1,191.5$ 1,246.1$ 1,273.2$ Return on average allocated capital 9.0% 7.5% 8.5% 9.7% 8.5% (1) Excludes experience rated BOLI corporate investment life. Investment Life Policy Reserve Activity ($ in millions) 2002 2003 2004 2005 2006 Balance, beginning of period 5,440.5$ 7,167.6$ 8,845.3$ 10,406.2$ 12,074.1$ Deposits 1,303.5 1,242.4 1,642.7 2,153.8 2,208.6 Withdrawals and surrenders (198.5) (464.4) (467.4) (780.8) (576.7) Net flows 1,105.0 778.0 1,175.3 1,373.0 1,631.9 Investment performance/interest credited (405.2) 1,357.0 842.8 731.6 1,290.4 Policy charges (343.5) (468.0) (478.0) (481.4) (477.9) Benefits and other 20.0 10.7 20.8 46.2 (161.7) Acquired business 1,350.8 - - (1.5) - Balance, end of period 7,167.6$ 8,845.3$ 10,406.2$ 12,074.1$ 14,356.8$ 37
  41. 41. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 Fixed Life ($ in millions) 2002 2003 2004 2005 2006 Operating Revenues Administrative fees 9.1$ 11.2$ 13.9$ 14.3$ 15.0$ Surrender fees 1.0 0.8 0.8 1.6 2.4 Cost of insurance 37.4 40.1 44.8 49.5 57.7 Total policy charges 47.5 52.1 59.5 65.4 75.1 Net investment income 231.6 333.4 337.0 335.5 333.7 Traditional life premiums 232.9 332.8 311.9 297.0 299.0 Total operating revenues 512.0 718.3 708.4 697.9 707.8 Benefits Interest credited 73.2 72.6 72.4 74.4 79.3 Life benefits 193.1 303.0 281.3 291.1 302.6 Policyholder dividends 63.5 105.7 101.4 107.3 90.7 Total benefits 329.8 481.3 455.1 472.8 472.6 Expenses Commissions 17.7 28.6 42.5 34.7 40.4 General operating expenses 83.1 114.0 121.0 127.6 127.2 Deferral of policy acquisition costs (25.5) (37.8) (55.0) (58.3) (67.7) Subtotal 75.3 104.8 108.5 104.0 99.9 Amortization of policy acquisition costs 25.7 28.9 29.3 17.0 1.4 Amortization of value of business acquired (0.3) 10.6 17.6 9.1 9.1 Total expenses 100.7 144.3 155.4 130.1 110.4 Pre-tax operating earnings 81.5$ 92.7$ 97.9$ 95.0$ 124.8$ Key Ratios/Statistics Life benefits per $1,000 of average life insurance in force 5.56$ 7.15$ 6.77$ 6.70$ 6.25$ General operating expenses to operating revenues 16.2% 15.9% 17.1% 18.3% 18.0% Pre-tax operating earnings to operating revenues 15.9% 12.9% 13.8% 13.6% 17.6% Average allocated capital 405.3$ 579.0$ 539.6$ 542.9$ 576.1$ Return on average allocated capital 13.0% 10.4% 11.8% 11.4% 14.1% Fixed Life Policy Reserve Activity ($ in millions) 2002 2003 2004 2005 2006 Traditional/Universal Life Balance, beginning of period 2,658.7$ 4,991.3$ 5,051.8$ 5,276.8$ 5,314.5$ Deposits 294.0 441.0 457.6 448.6 455.9 Withdrawals and surrenders (128.0) (188.9) (196.9) (214.0) (214.5) Net flows 166.0 252.1 260.7 234.6 241.4 Interest credited 73.2 72.6 72.4 74.4 83.9 Policy charges (47.5) (52.1) (59.5) (65.4) (74.8) Benefits and other (99.4) (212.1) (48.6) (205.9) (235.1) Acquired business 2,240.3 - - - - Balance, end of period 4,991.3$ 5,051.8$ 5,276.8$ 5,314.5$ 5,329.9$ Historical Earnings Trends 38
  42. 42. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2007 This Page Intentionally Left Blank. 39

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