nationwide 1Q08 Statistical Supplement

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nationwide 1Q08 Statistical Supplement

  1. 1. 2008 Nationwide Financial® Statistical Supplement FIRST QUARTER
  2. 2. 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, 2008 5 For the three months ended March 31, 2007 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 Nationwide Bank and Medium Term Notes Key Ratios and Statistics 17 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 26 Individual variable annuity guaranteed minimum death benefit reserve 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, 2008
  3. 3. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions except for per share data) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Operating Revenues Individual investments 371.2$ 368.9$ 359.0$ 370.7$ 338.8$ Retirement plans 281.1 283.3 284.9 296.9 279.1 Individual protection 339.3 331.8 332.8 345.8 344.6 Corporate and other 181.9 188.6 172.1 173.4 135.9 Total operating revenues 1,173.5$ 1,172.6$ 1,148.8$ 1,186.8$ 1,098.4$ Net realized investment gains/(losses) (1) (13.5) (4.2) (17.0) (118.1) (182.1) Total revenues 1,160.0$ 1,168.4$ 1,131.8$ 1,068.7$ 916.3$ Pre-tax Operating Earnings Individual investments 57.2$ 109.4$ 65.0$ 69.1$ 62.5$ Retirement plans 52.2 64.9 59.6 75.9 53.9 Individual protection 83.7 81.6 65.2 69.3 64.9 Corporate and other 32.6 25.8 13.9 2.3 (13.9) Pre-tax operating earnings 225.7$ 281.7$ 203.7$ 216.6$ 167.4$ Federal income tax expense 49.9 81.3 49.1 54.9 35.9 Net operating earnings 175.8$ 200.4$ 154.6$ 161.7$ 131.5$ Net realized investment gains/(losses), net of taxes(2) (7.0) (1.2) (8.4) (66.2) (87.9) Discontinued operations, net of taxes 45.5 (1.9) 0.8 (21.3) 0.9 Cumulative effect of adoption of accounting principles, net of taxes (6.0) - - - - Net income 208.3$ 197.3$ 147.0$ 74.2$ 44.5$ Per Common Diluted Share Net operating earnings 1.20$ 1.39$ 1.08$ 1.16$ 0.95$ Net realized investment gains/(losses), net of taxes (2) (0.05) (0.01) (0.06) (0.48) (0.64) Discontinued operations, net of taxes 0.31 (0.01) 0.01 (0.15) 0.01 Cumulative effect of adoption of accounting principles, net of taxes (0.04) - - - - Net income 1.42$ 1.37$ 1.03$ 0.53$ 0.32$ Sales by Channel Non-affiliated Independent broker/dealers 1,708.7$ 1,510.5$ 1,555.0$ 1,580.5$ 1,561.9$ Wirehouse and regional firms 679.7 680.7 703.6 815.0 706.4 Financial institutions 590.5 642.8 604.1 663.8 610.7 Pension plan administrators 175.8 98.9 95.6 137.4 119.6 Life specialists 88.3 91.1 12.9 137.3 105.6 Affiliated Nationwide Retirement Solutions 1,082.2 1,079.6 1,073.8 1,064.3 1,161.1 Mullin TBG 115.0 62.5 41.5 4.2 99.9 Nationwide Financial Network 354.4 370.0 357.7 386.8 320.9 Total 4,794.6$ 4,536.1$ 4,444.2$ 4,789.3$ 4,686.1$ (1) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). (2) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations), and net of adjustment to amortization related to net realized gains/(losses). Note: During the quarter ended December 31, 2007, the results of operations of TBG Financial are reflected as discontinued operations for 2007 and all prior years. During the quarter ended June 30, 2007, NFS restated its consolidated financial statements for all periods presented to reflect 1) the resulting change in reporting entity related to a current year acquisition (Nationwide Funds Group (NFG)) and 2) the change in accounting principle related to the accrual for litigation loss contingency legal expenses. In addition, the results of operations of The 401(k) Company are reflected as discontinued operations for the quarter ended March 31, 2007 and all prior years and the sales and account value sections in the subsequent portions of the report exclude amounts applicable to the operations that were discontinued. Quarterly Financial Highlights 1
  4. 4. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions except for per share data) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Balance Sheet Data Total assets 120,469.7$ 121,390.3$ 121,460.5$ 119,207.1$ 112,612.6$ Customer funds managed and administered 158,898.3$ 164,261.0$ 165,275.2$ 162,365.4$ 153,304.6$ Shareholders' equity Including accumulated other comprehensive income (AOCI) (1) 5,807.7$ 5,453.2$ 5,340.4$ 5,324.6$ 5,003.9$ AOCI 83.6 (69.1) (61.1) (81.5) (378.4) Excluding AOCI 5,724.1$ 5,522.3$ 5,401.5$ 5,406.1$ 5,382.3$ Net operating return on average equity excluding AOCI 12.4% 14.3% 11.3% 12.0% 9.8% Statutory capital and surplus 3,010.3$ 3,182.6$ 3,249.3$ 3,175.1$ 2,990.9$ Stock Data Closing Price 53.86$ 63.22$ 53.82$ 45.01$ 47.28$ Weighted average common shares outstanding Basic 145.9 143.2 141.8 139.0 137.9 Diluted 147.1 144.3 142.7 139.7 138.3 Book value per share Including AOCI 39.94$ 38.08$ 38.48$ 38.44$ 36.31$ Excluding AOCI 39.37$ 38.56$ 38.92$ 39.03$ 39.06$ (1) Includes changes in fair value of certain investments and derivatives under SFAS 115 and SFAS 133. Note: The results of operations of TBG Financial are reflected as discontinued operations for 2007 and all prior years and the results of operations of The 401(k) Company are reflected as discontinued operations for the quarter ended March 31, 2007 and all prior years. NFS Operating Segment Reporting Structure Quarterly Financial Highlights 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 Nationwide Funds Group Corporate Other 2
  5. 5. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 This Page Intentionally Left Blank. 3
  6. 6. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Operating Revenues Asset fees 184.2$ 193.0$ 193.5$ 202.5$ 183.9$ Cost of insurance charges 104.1 103.7 105.1 107.6 109.5 Administrative fees 29.0 28.0 29.7 32.7 32.9 Surrender fees 18.6 18.4 17.2 16.6 18.8 Total policy charges 335.9 343.1 345.5 359.4 345.1 Premiums 110.4 104.9 101.7 115.7 109.1 Net investment income 589.8 577.8 547.3 561.8 519.5 Operating realized gains (losses) 2.1 1.6 (3.4) (12.7) (16.8) Other income 135.3 145.2 157.7 162.6 141.5 Total operating revenues 1,173.5 1,172.6 1,148.8 1,186.8 1,098.4 Benefits Interest credited to policyholder accounts 342.1 337.0 333.3 329.6 312.6 Life insurance and annuity benefits 153.6 186.1 161.4 181.8 183.5 Policyholder dividends 21.3 20.0 23.1 18.7 23.9 Total benefits 517.0 543.1 517.8 530.1 520.0 Expenses Commissions 172.2 182.0 182.2 202.4 181.2 General operating expenses 233.2 249.9 243.0 237.0 234.3 Debt extinguishment costs - 10.2 - - - Deferral of policy acquisition costs (145.1) (158.0) (155.0) (173.2) (154.5) Subtotal 260.3 284.1 270.2 266.2 261.0 Amortization of policy acquisition costs 135.7 20.8 116.3 134.8 113.9 Amortization of value of business acquired 10.3 15.4 11.9 9.4 8.4 Interest expense 24.5 27.5 28.9 29.7 27.7 Total expenses 430.8 347.8 427.3 440.1 411.0 Pre-tax operating earnings 225.7$ 281.7$ 203.7$ 216.6$ 167.4$ Federal income tax expense 49.9 81.3 49.1 54.9 35.9 Net operating earnings 175.8$ 200.4$ 154.6$ 161.7$ 131.5$ Net realized investment gains/(losses), net of taxes (1) Realized gains/(losses) on sales, net of hedging 1.9 2.3 3.1 1.2 (5.0) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (8.6) (4.1) (10.7) (52.7) (57.5) Credit default swaps (0.2) (1.0) (0.8) (1.9) (1.7) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.4 1.5 0.3 (12.6) (23.8) Amounts credited to policyholder dividend obligation (0.7) (0.1) (0.5) (0.4) (0.1) Adjustment to VOBA amortization 0.2 0.2 0.2 0.2 0.2 Subtotal (7.0) (1.2) (8.4) (66.2) (87.9) Discontinued operations, net of taxes 45.5 (1.9) 0.8 (21.3) 0.9 Cumulative effect of adoption of accounting principles, net of taxes (6.0) - - - - Net income 208.3$ 197.3$ 147.0$ 74.2$ 44.5$ (1) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations), and net of adjustment to amortization related to net realized gains/(losses). Note: The results of operations of TBG Financial are reflected as discontinued operations for 2007 and all prior years and the results of operations of The 401(k) Company are reflected as discontinued operations for the quarter ended March 31, 2007 and all prior years. Quarterly Consolidated Income Statements 4
  7. 7. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees 141.9$ 29.2$ 12.8$ -$ 183.9$ Cost of insurance charges - - 109.5 - 109.5 Administrative fees 7.3 3.3 22.3 - 32.9 Surrender fees 11.5 0.5 6.8 - 18.8 Total policy charges 160.7 33.0 151.4 - 345.1 Premiums 34.1 - 75.0 - 109.1 Net investment income 137.0 161.7 117.5 103.3 519.5 Operating realized gains (losses) - - - (16.8) (16.8) Other income 7.0 84.4 0.7 49.4 141.5 Total operating revenues 338.8 279.1 344.6 135.9 1,098.4 Benefits Interest credited to policyholder accounts 96.0 107.6 47.6 61.4 312.6 Life insurance and annuity benefits 54.5 - 129.0 - 183.5 Policyholder dividends - - 23.9 - 23.9 Total benefits 150.5 107.6 200.5 61.4 520.0 Expenses Commissions 91.9 42.9 42.3 4.1 181.2 General operating expenses 44.6 73.3 59.9 56.5 234.3 Deferral of policy acquisition costs (89.2) (9.2) (56.1) - (154.5) Subtotal 47.3 107.0 46.1 60.6 261.0 Amortization of policy acquisition costs 77.7 10.1 26.1 - 113.9 Amortization of value of business acquired 0.8 0.5 7.0 0.1 8.4 Interest expense - - - 27.7 27.7 Total expenses 125.8 117.6 79.2 88.4 411.0 Pre-tax operating earnings 62.5$ 53.9$ 64.9$ (13.9)$ 167.4$ Federal income tax expense 35.9 Net operating earnings 131.5$ Net realized investment gains/(losses), net of taxes (1) (87.9) Discontinued operations, net of taxes 0.9 Net income 44.5$ (1) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations), and net of adjustment to amortization related to net realized gains/(losses). Note: The results of operations of TBG Financial are reflected as discontinued operations for 2007 and all prior years. For the three months ended March 31, 2008 Combining Income Statement 5
  8. 8. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 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 Premiums 33.5 - 76.9 - 110.4 Net investment income 174.0 165.5 119.7 130.6 589.8 Operating realized gains (losses) - - - 2.1 2.1 Other income 7.0 78.3 0.8 49.2 135.3 Total operating revenues 371.2 281.1 339.3 181.9 1,173.5 Benefits Interest credited to policyholder accounts 118.2 111.1 47.3 65.5 342.1 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 65.5 517.0 Expenses Commissions 88.8 41.7 33.4 8.3 172.2 General operating expenses 50.6 74.9 56.7 51.0 233.2 Deferral of policy acquisition costs (91.0) (9.0) (45.1) - (145.1) Subtotal 48.4 107.6 45.0 59.3 260.3 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 - - - 24.5 24.5 Total expenses 149.2 117.8 80.0 83.8 430.8 Pre-tax operating earnings 57.2$ 52.2$ 83.7$ 32.6$ 225.7$ Federal income tax expense 49.9 Net operating earnings 175.8$ Net realized investment gains/(losses), net of taxes (1) (7.0) Discontinued operations, net of taxes 45.5 Cumulative effect of adoption of accounting principles, net of taxes (6.0) Net income 208.3$ (1) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations), and net of adjustment to amortization related to net realized gains/(losses). Note: The results of operations of TBG Financial are reflected as discontinued operations for 2007 and all prior years and the results of operations of The 401(k) Company are reflected as discontinued operations for the quarter ended March 31, 2007 and all prior years. For the three months ended March 31, 2007 Combining Income Statement 6
  9. 9. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 This Page Intentionally Left Blank. 7
  10. 10. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions, except per share data) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Assets Investments Securities available-for-sale: Fixed maturity securities 28,356.6$ 27,479.5$ 27,295.4$ 27,189.2$ 26,796.7$ Equity securities 69.0 71.3 69.7 124.2 117.6 Trading assets 24.3 28.2 24.7 37.7 66.5 Mortgage loans 8,689.8 8,457.5 8,534.5 8,316.1 8,156.4 Real estate 50.4 48.0 29.5 21.8 21.6 Policy loans 974.6 991.5 1,007.2 1,018.3 1,036.7 Other long-term investments 1,256.2 1,277.6 1,195.7 1,187.2 1,164.3 Short-term investments 2,469.3 1,756.9 1,395.2 1,173.6 1,327.5 Total investments 41,890.2 40,110.5 39,551.9 39,068.1 38,687.3 Cash 88.8 53.8 73.2 73.6 73.0 Accrued investment income 393.3 356.1 412.5 368.4 420.1 Deferred policy acquisition costs 3,819.6 4,051.1 4,054.1 4,095.6 4,267.0 Value of business acquired 385.6 370.8 363.9 354.8 345.9 Other intangible assets 46.7 45.9 45.1 44.3 43.5 Goodwill 341.7 341.7 350.6 301.2 301.2 Other assets 2,215.7 2,267.6 2,822.5 2,046.1 2,187.0 Separate account assets 71,288.1 73,792.8 73,786.7 72,855.0 66,287.6 Total assets 120,469.7$ 121,390.3$ 121,460.5$ 119,207.1$ 112,612.6$ Liabilities and shareholders' equity Future policy benefits and claims 37,322.6$ 36,453.5$ 36,313.2$ 35,441.5$ 35,523.0$ Short-term debt 156.6 249.7 454.1 309.3 327.6 Long-term debt 1,398.9 1,499.7 1,515.1 1,565.1 1,620.0 Other liabilities 4,495.8 3,941.4 4,051.0 3,711.6 3,850.5 Separate account liabilities 71,288.1 73,792.8 73,786.7 72,855.0 66,287.6 114,662.0 115,937.1 116,120.1 113,882.5 107,608.7 Shareholders' equity 5,807.7 5,453.2 5,340.4 5,324.6 5,003.9 Total liabilities and shareholders' equity 120,469.7$ 121,390.3$ 121,460.5$ 119,207.1$ 112,612.6$ ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Total capital, including AOCI 7,206.6$ 6,952.9$ 6,855.5$ 6,889.7$ 6,623.9$ Less AOCI 83.6 (69.1) (61.1) (81.5) (378.4) Total capital, excluding AOCI 7,123.0$ 7,022.0$ 6,916.6$ 6,971.2$ 7,002.3$ Leverage, including AOCI Long-term debt--to--total capital 19.4% 21.6% 22.1% 22.7% 24.5% Leverage, excluding AOCI Long-term debt--to--total capital 19.6% 21.4% 21.9% 22.5% 23.1% Ratio of pre-tax operating earnings before interest expense to interest expense 10.2X 11.2X 8.0X 8.3X 7.0X Quarterly Consolidated Balance Sheets Capital Structure 8
  11. 11. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 Individual Investments Quarterly Earnings Trends ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Operating Revenues Asset fees 137.8$ 146.8$ 148.0$ 155.0$ 141.9$ Administrative fees 6.3 6.2 7.0 7.6 7.3 Surrender fees 12.6 12.6 11.5 11.2 11.5 Total policy charges 156.7 165.6 166.5 173.8 160.7 Net Investment Income General account assets 181.0 174.5 160.8 155.5 142.6 Charge for invested capital (7.0) (7.5) (7.4) (7.0) (5.6) Total net investment income 174.0 167.0 153.4 148.5 137.0 Premiums 33.5 30.2 29.7 39.9 34.1 Other income 7.0 6.1 9.4 8.5 7.0 Total operating revenues 371.2 368.9 359.0 370.7 338.8 Benefits Interest credited to policyholder accounts 118.2 114.4 109.7 102.0 96.0 Immediate annuity benefits 28.9 26.9 27.1 36.7 31.4 Policy benefits 17.7 47.8 24.8 23.6 23.1 Total benefits 164.8 189.1 161.6 162.3 150.5 Expenses Commissions 88.8 100.0 101.1 108.2 91.9 General operating expenses 50.6 57.3 50.2 41.3 44.6 Deferral of policy acquisition costs (91.0) (100.9) (100.1) (106.6) (89.2) Subtotal 48.4 56.4 51.2 42.9 47.3 Amortization of policy acquisition costs 99.5 12.7 79.8 95.1 77.7 Amortization of value of business acquired 1.3 1.3 1.4 1.3 0.8 Total expenses 149.2 70.4 132.4 139.3 125.8 Pre-tax operating earnings 57.2$ 109.4$ 65.0$ 69.1$ 62.5$ Key Ratios/Statistics Average Account Values: General account 12,664.0$ 12,172.9$ 11,588.1$ 10,909.1$ 10,486.4$ Separate account 39,726.2 40,992.6 42,502.5 42,692.8 40,617.9 Advisory services program 607.0 630.3 656.6 658.4 625.8 Total average individual investments account values 52,997.2$ 53,795.8$ 54,747.2$ 54,260.3$ 51,730.1$ Earned rate 5.71% 5.73% 5.55% 5.70% 5.44% Credited rate 3.73% 3.76% 3.79% 3.74% 3.66% Interest spread on average general account values 1.98% 1.97% 1.76% 1.96% 1.78% Income from mortgage loan prepayments and bond call premiums 0.15% 0.17% 0.09% 0.18% 0.04% Base interest spread on average general account values 1.83% 1.80% 1.67% 1.78% 1.74% Asset fees to average separate account values 1.39% 1.43% 1.39% 1.45% 1.40% General operating expenses to average account values 0.38% 0.43% 0.37% 0.30% 0.34% Pre-tax operating earnings to average account values 0.43% 0.81% 0.48% 0.51% 0.48% Pre-tax operating earnings to operating revenues 15.4% 29.7% 18.1% 18.6% 18.4% Average allocated capital 1,383.1$ 1,393.8$ 1,454.6$ 1,439.5$ 1,414.4$ Return on average allocated capital 14.7% 22.4% 15.4% 14.4% 15.0% Individual Investments Account Value Activity ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Individual Variable Annuities Balance, beginning of period 43,804.8$ 44,211.7$ 46,131.5$ 47,067.0$ 46,121.5$ Deposits 1,314.8 1,499.1 1,496.9 1,673.9 1,309.5 Withdrawals and surrenders (1,586.1) (1,714.0) (1,707.2) (1,776.6) (1,669.9) Net flows (271.3) (214.9) (210.3) (102.7) (360.4) Investment performance/interest credited to policyholder accounts 825.9 2,213.2 1,237.6 (536.8) (3,123.1) Policy charges (154.2) (162.5) (165.6) (171.0) (159.5) Benefits and other 6.5 84.0 73.8 (135.0) 219.8 Balance, end of period 44,211.7$ 46,131.5$ 47,067.0$ 46,121.5$ 42,698.3$ Individual Fixed Annuities Balance, beginning of period 6,536.1$ 6,158.4$ 5,721.2$ 5,113.3$ 4,717.3$ Deposits 44.2 45.8 49.8 52.5 43.7 Withdrawals and surrenders (470.4) (535.4) (706.3) (491.5) (331.8) Net flows (426.2) (489.6) (656.5) (439.0) (288.1) Policyholder interest credited 58.1 54.3 50.5 44.4 39.8 Policy charges (2.1) (1.9) (1.9) (1.4) (0.9) Benefits and other (7.5) - - - (0.1) Balance, end of period 6,158.4$ 5,721.2$ 5,113.3$ 4,717.3$ 4,468.0$ Income Products 2,043.8$ 2,064.4$ 2,083.8$ 2,101.0$ 2,102.5$ Advisory Services Program 616.8$ 643.7$ 669.5$ 647.2$ 604.4$ Total individual investment account values 53,030.7$ 54,560.8$ 54,933.6$ 53,587.0$ 49,873.2$ 9
  12. 12. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Individual Variable Annuities BEST of AMERICA products 36,628.6$ 38,367.4$ 39,167.0$ 38,371.2$ 35,629.1$ Private label annuities 7,233.7 7,414.2 7,561.7 7,438.1 6,801.6 Nationwide Financial Network and other 349.4 349.9 338.3 312.2 267.6 Total individual variable annuities 44,211.7$ 46,131.5$ 47,067.0$ 46,121.5$ 42,698.3$ Individual Fixed Annuities 6,158.4$ 5,721.2$ 5,113.3$ 4,717.3$ 4,468.0$ Income Products 2,043.8$ 2,064.4$ 2,083.8$ 2,101.0$ 2,102.5$ Advisory Services Program 616.8$ 643.7$ 669.5$ 647.2$ 604.4$ Total individual investment account values 53,030.7$ 54,560.8$ 54,933.6$ 53,587.0$ 49,873.2$ ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Individual Variable Annuities BEST of AMERICA products 1,166.9$ 1,296.5$ 1,274.4$ 1,431.2$ 1,090.4$ Private label annuities 73.2 97.5 118.5 145.4 118.0 Nationwide Financial Network and other 0.9 0.8 0.6 0.5 0.7 Total individual variable annuities 1,241.0$ 1,394.8$ 1,393.5$ 1,577.1$ 1,209.1$ Individual Fixed Annuities 37.3$ 40.1$ 37.0$ 41.9$ 40.6$ Income Products 55.5$ 50.2$ 54.4$ 56.6$ 48.8$ Advisory Services Program 36.8$ 36.6$ 42.6$ 31.2$ 23.2$ Total individual investment sales 1,370.6$ 1,521.7$ 1,527.5$ 1,706.8$ 1,321.7$ ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Individual Variable Annuities Non-affiliated Independent broker/dealers 427.9$ 448.9$ 464.3$ 502.8$ 385.7$ Wirehouse and regional firms 314.0 370.1 392.0 481.9 345.1 Financial institutions 402.4 465.8 442.1 478.1 395.0 Life specialists 0.1 - - - - Affiliated Nationwide Financial Network 96.6 110.0 95.1 114.3 83.3 Total individual variable annuities 1,241.0$ 1,394.8$ 1,393.5$ 1,577.1$ 1,209.1$ Individual Fixed Annuities Non-affiliated Independent broker/dealers 5.4$ 5.1$ 7.3$ 2.9$ 9.3$ Wirehouse and regional firms 3.6 2.3 2.0 3.0 1.3 Financial institutions 14.3 13.9 9.9 16.9 14.7 Affiliated Nationwide Financial Network 14.0 18.8 17.8 19.1 15.3 Total individual fixed annuities 37.3$ 40.1$ 37.0$ 41.9$ 40.6$ Income Products Non-affiliated Independent broker/dealers 26.0$ 24.8$ 25.2$ 25.8$ 20.7$ Wirehouse and regional firms 16.9 15.7 20.3 15.5 16.8 Financial institutions 8.8 6.3 5.1 10.1 8.0 Affiliated Nationwide Financial Network 3.8 3.4 3.8 5.2 3.3 Total income products 55.5$ 50.2$ 54.4$ 56.6$ 48.8$ Advisory Services Program Non-affiliated Independent broker/dealers 28.7$ 25.2$ 27.0$ 17.7$ 16.8$ Financial institutions 2.1 3.2 2.4 3.9 2.4 Affiliated Nationwide Financial Network 6.0 8.2 13.2 9.6 4.0 Total advisory services program 36.8$ 36.6$ 42.6$ 31.2$ 23.2$ Total individual investment sales 1,370.6$ 1,521.7$ 1,527.5$ 1,706.8$ 1,321.7$ Sales by Channel Individual Investments Account Values by Product Individual Investments Sales by Product Individual Investments 10
  13. 13. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Operating Revenues Asset fees 33.7$ 33.1$ 32.1$ 33.6$ 29.2$ Administrative fees 2.6 2.6 3.2 3.4 3.3 Surrender fees 1.0 1.1 0.6 0.3 0.5 Total policy charges 37.3 36.8 35.9 37.3 33.0 Net investment income 165.5 161.9 162.1 165.7 161.7 Other income 78.3 84.6 86.9 93.9 84.4 Total operating revenues 281.1 283.3 284.9 296.9 279.1 Benefits Interest credited to policyholder accounts 111.1 111.0 111.9 109.3 107.6 Expenses Commissions 41.7 42.2 42.2 44.9 42.9 General operating expenses 74.9 74.8 70.1 66.0 73.3 Deferral of policy acquisition costs (9.0) (9.3) (9.0) (8.8) (9.2) Subtotal 107.6 107.7 103.3 102.1 107.0 Amortization of policy acquisition costs 9.8 (0.9) 9.4 9.1 10.1 Amortization of value of business acquired 0.4 0.6 0.7 0.5 0.5 Total expenses 117.8 107.4 113.4 111.7 117.6 Pre-tax operating earnings 52.2$ 64.9$ 59.6$ 75.9$ 53.9$ Key Ratios/Statistics Average Account Values: General account 11,175.4$ 11,216.3$ 11,176.4$ 11,040.5$ 11,042.8$ Separate account 18,441.8 18,256.8 17,569.7 16,738.5 15,791.2 Non insurance assets 19,314.3 20,581.9 21,648.1 21,870.7 21,315.7 Administration only 28,314.4 29,485.9 30,715.0 31,139.3 30,396.6 Total average retirement plan account values 77,245.9$ 79,540.9$ 81,109.2$ 80,789.0$ 78,546.3$ Earned rate 5.92% 5.77% 5.80% 6.00% 5.86% Credited rate 3.97% 3.95% 4.00% 3.96% 3.90% Interest spread on average general account values 1.95% 1.82% 1.80% 2.04% 1.96% Income from mortgage loan prepayments and bond call premiums 0.11% 0.07% 0.06% 0.18% 0.14% Base interest spread on average general account values 1.84% 1.75% 1.74% 1.86% 1.82% Asset fees to average separate account values 0.73% 0.73% 0.73% 0.80% 0.74% General operating expenses to average account values 0.39% 0.38% 0.35% 0.33% 0.37% Pre-tax operating earnings to average account values 0.27% 0.33% 0.29% 0.38% 0.27% Pre-tax operating earnings to operating revenue 18.6% 22.9% 20.9% 25.6% 19.3% Average allocated capital 795.0$ 737.4$ 747.1$ 774.0$ 774.8$ Return on average allocated capital 19.6% 24.8% 23.5% 26.8% 20.4% Note: The results of operations of The 401(k) Company are reflected as discontinued operations for the quarter ended March 31, 2007 and all prior years. ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Private Sector Pension Plans Balance, beginning of period 32,645.3$ 32,927.9$ 33,929.2$ 32,726.5$ 32,286.5$ New deposits/sales 2,006.0 1,506.2 1,536.8 1,580.9 1,760.2 Participant withdrawals and surrenders (1,520.2) (1,255.6) (1,402.9) (1,624.3) (1,460.4) Net flows 485.8 250.6 133.9 (43.4) 299.8 Investment performance/interest credited to policyholder accounts 598.6 1,506.2 721.2 (328.5) (1,954.9) Policy charges and other (65.1) (65.8) (66.5) (68.1) (60.4) Case acquisitions/(terminations), net (736.7) (689.7) (1,991.3) - - Balance, end of period 32,927.9$ 33,929.2$ 32,726.5$ 32,286.5$ 30,571.0$ Public Sector Pension Plans Balance, beginning of period 43,951.8$ 44,966.9$ 47,257.8$ 48,304.8$ 48,260.1$ New deposits/sales 1,074.4 1,071.9 1,066.0 1,055.8 1,153.1 Participant withdrawals and surrenders (717.3) (747.2) (812.7) (780.6) (883.0) Net flows 357.1 324.7 253.3 275.2 270.1 Investment performance/interest credited 692.4 2,032.2 1,065.0 (141.2) (2,482.6) Policy charges and other (19.5) (20.4) (21.0) (21.4) (18.3) Case acquisitions/(terminations), net (14.9) (45.6) (250.3) (157.3) (54.3) Balance, end of period 44,966.9$ 47,257.8$ 48,304.8$ 48,260.1$ 45,975.0$ Total retirement plan account values 77,894.8$ 81,187.0$ 81,031.3$ 80,546.6$ 76,546.0$ Account Value Activity Retirement Plans Quarterly Earnings Trends Retirement Plans 11
  14. 14. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 Retirement Plans Account Values by Product ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Private Sector Pension Plans BEST of AMERICA annuity products 7,383.9$ 7,514.0$ 7,470.0$ 7,178.6$ 6,452.7$ BEST of AMERICA trust products 19,794.4 21,369.3 21,926.9 21,814.6 20,816.8 Subtotal BEST of AMERICA 27,178.3 28,883.3 29,396.9 28,993.2 27,269.5 Nationwide Financial Network products 1,020.6 1,044.0 1,033.2 1,014.5 960.1 Nationwide employee and agent benefit plans 4,200.4 3,482.8 1,782.5 1,795.4 1,862.7 Other 528.6 519.1 513.9 483.4 478.7 Total private sector pension plans 32,927.9$ 33,929.2$ 32,726.5$ 32,286.5$ 30,571.0$ Public Sector Pension Plans IRC Section 457 annuities 16,310.2$ 16,942.6$ 17,190.1$ 17,096.3$ 16,345.6$ Administration only agreements 28,656.7 30,315.2 31,114.7 31,163.8 29,629.4 Total public sector pension plans 44,966.9$ 47,257.8$ 48,304.8$ 48,260.1$ 45,975.0$ Total retirement plan account values 77,894.8$ 81,187.0$ 81,031.3$ 80,546.6$ 76,546.0$ Retirement Plans Sales by Product ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Private Sector Pension Plans BEST of AMERICA annuity products 318.5$ 254.8$ 249.3$ 242.1$ 257.3$ BEST of AMERICA trust products 1,487.4 1,190.1 1,201.7 1,247.1 1,383.7 Subtotal BEST of AMERICA 1,805.9 1,444.9 1,451.0 1,489.2 1,641.0 Nationwide Financial Network products 35.9 31.2 38.6 43.7 46.9 Other 21.0 19.8 14.9 27.0 20.8 Total private sector pension plans 1,862.8$ 1,495.9$ 1,504.5$ 1,559.9$ 1,708.7$ Public Sector Pension Plans IRC Section 457 annuities 389.7$ 385.5$ 387.1$ 386.2$ 435.8$ Administration only agreements 684.6 686.5 679.0 669.5 717.2 Total public sector pension plans 1,074.3 1,072.0 1,066.1 1,055.7 1,153.0 Total retirement plan sales 2,937.1$ 2,567.9$ 2,570.6$ 2,615.6$ 2,861.7$ Retirement Plans Sales by Channel ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Private Sector Pension Plans Non-affiliated Independent broker/dealers 1,157.3$ 945.0$ 959.4$ 949.3$ 1,048.4$ Wirehouse and regional firms 326.3 274.3 267.6 293.8 324.0 Financial institutions 148.2 137.9 126.6 134.2 172.6 Pension plan administrators 175.8 98.9 95.6 137.4 119.6 Affiliated Nationwide Retirement Solutions 7.9 7.6 7.7 8.6 8.1 Nationwide Financial Network 47.3 32.2 47.6 36.6 36.0 Total private sector pension plans 1,862.8$ 1,495.9$ 1,504.5$ 1,559.9$ 1,708.7$ Public Sector Pension Plans Nationwide Retirement Solutions 1,074.3$ 1,072.0$ 1,066.1$ 1,055.7$ 1,153.0$ Total retirement plan sales 2,937.1$ 2,567.9$ 2,570.6$ 2,615.6$ 2,861.7$ 12
  15. 15. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Operating Revenues Asset fees 12.7$ 13.1$ 13.4$ 13.9$ 12.8$ Administrative fees 20.1 19.2 19.5 21.7 22.3 Surrender fees 5.0 4.7 5.1 5.1 6.8 Cost of insurance 104.1 103.7 105.1 107.6 109.5 Total policy charges 141.9 140.7 143.1 148.3 151.4 Net Investment Income General account assets 123.8 120.4 120.8 124.4 121.2 Charge for invested capital (4.1) (4.7) (4.1) (4.2) (3.7) Total net investment income 119.7 115.7 116.7 120.2 117.5 Premiums 76.9 74.7 72.0 75.8 75.0 Other income 0.8 0.7 1.0 1.5 0.7 Total operating revenues 339.3 331.8 332.8 345.8 344.6 Benefits Interest credited to policyholder accounts 47.3 47.6 48.1 49.0 47.6 Life benefits 107.0 111.4 109.5 121.5 129.0 Policyholder dividends 21.3 20.0 23.1 18.7 23.9 Total benefits 175.6 179.0 180.7 189.2 200.5 Expenses Commissions 33.4 31.9 32.1 43.4 42.3 General operating expenses 56.7 64.6 63.8 63.7 59.9 Deferral of policy acquisition costs (45.1) (47.8) (45.9) (57.8) (56.1) Subtotal 45.0 48.7 50.0 49.3 46.1 Amortization of policy acquisition costs 26.4 9.0 27.1 30.6 26.1 Amortization of value of business acquired 8.6 13.5 9.8 7.4 7.0 Total expenses 80.0 71.2 86.9 87.3 79.2 Pre-tax operating earnings 83.7$ 81.6$ 65.2$ 69.3$ 64.9$ Key Ratios/Statistics General operating expenses to operating revenues 16.7% 19.5% 19.2% 18.4% 17.4% Pre-tax operating earnings to operating revenues 24.7% 24.6% 19.6% 20.0% 18.8% Average allocated capital 1,933.2$ 1,973.6$ 1,973.5$ 1,998.0$ 2,024.4$ Return on average allocated capital 12.2% 11.3% 9.4% 9.5% 9.1% Note: The results of operations of TBG Financial are reflected as discontinued operations for 2007 and all prior years. ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Individual investment life 5,927.3$ 6,251.2$ 6,400.5$ 6,298.2$ 5,776.6$ Corporate investment life - excluding experience rated BOLI 6,738.2 7,049.6 7,162.0 7,192.9 7,002.4 Corporate investment life - experience rated BOLI 1,965.7 2,009.4 2,023.3 2,085.9 1,501.3 Subtotal investment life 14,631.2 15,310.2 15,585.8 15,577.0 14,280.3 Traditional life 4,153.8 4,150.0 4,152.0 4,156.4 4,156.1 Universal life 1,169.3 1,191.4 1,218.6 1,257.1 1,294.0 Subtotal fixed life 5,323.1 5,341.4 5,370.6 5,413.5 5,450.1 Total individual protection policy reserves 19,954.3$ 20,651.6$ 20,956.4$ 20,990.5$ 19,730.4$ ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Individual investment life 57,748.8$ 57,489.0$ 57,514.1$ 57,772.0$ 57,196.0$ Corporate investment life - excluding experience rated BOLI 11,560.9 11,963.4 11,963.0 11,980.3 12,014.9 Corporate investment life - experience rated BOLI 13,308.7 13,295.4 13,289.7 13,311.2 13,284.0 Subtotal investment life 82,618.4 82,747.8 82,766.8 83,063.5 82,494.9 Traditional life 40,504.2 41,631.0 41,882.4 43,970.7 44,899.4 Universal life 10,082.2 10,270.3 10,100.8 10,484.5 10,764.5 Subtotal fixed life 50,586.4 51,901.3 51,983.2 54,455.2 55,663.9 Total individual protection insurance in force 133,204.8$ 134,649.1$ 134,750.0$ 137,518.7$ 138,158.8$ Individual Protection Insurance In Force Individual Protection Quarterly Earnings Trends Policy Reserves Individual Protection 13
  16. 16. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 Individual Protection Sales by Product ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 BEST of AMERICA Variable Life Series First year sales 29.4$ 33.5$ 39.6$ 39.4$ 30.1$ Renewal sales 79.3 74.3 73.2 80.2 71.2 Total BEST of AMERICA variable life series 108.7 107.8 112.8 119.6 101.3 Nationwide Financial Network Variable Life Products First year sales 1.6 2.0 1.5 1.6 1.9 Renewal sales 50.6 47.3 42.0 43.8 41.6 Total Nationwide Financial Network variable life products 52.2 49.3 43.5 45.4 43.5 Corporate Owned Life Insurance (COLI) First year sales 39.0 61.0 20.6 61.3 69.9 Renewal sales 164.2 92.6 33.8 80.2 135.6 Total COLI 203.2 153.6 54.4 141.5 205.5 Traditional/Universal life First year sales 19.8 24.4 32.0 44.7 48.2 Renewal sales 103.0 111.4 103.4 115.7 104.2 Total traditional/universal life 122.8 135.8 135.4 160.4 152.4 Total individual protection sales 486.9$ 446.5$ 346.1$ 466.9$ 502.7$ ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Non-affiliated Independent broker/dealers 63.4$ 61.5$ 71.8$ 82.0$ 81.0$ Wirehouse and regional firms 18.9 18.3 21.7 20.8 19.2 Financial institutions 14.7 15.7 18.0 20.6 18.0 Life specialists 88.2 91.1 12.9 137.3 105.6 Affiliated Mullin TBG 115.0 62.5 41.5 4.2 99.9 Nationwide Financial Network 186.7 197.4 180.2 202.0 179.0 Total individual protection sales 486.9$ 446.5$ 346.1$ 466.9$ 502.7$ Individual Protection Sales by Channel 14
  17. 17. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 Quarterly Earnings Trends ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Operating Revenues Asset fees 12.7$ 13.1$ 13.4$ 13.9$ 12.8$ Administrative fees 16.0 14.6 13.7 14.0 14.0 Surrender fees 4.5 4.0 4.5 4.3 6.0 Cost of insurance 88.2 87.3 88.2 89.4 90.0 Total policy charges 121.4 119.0 119.8 121.6 122.8 Net Investment Income General account assets 37.8 37.6 36.9 40.1 36.7 Charge for invested capital (4.1) (4.7) (4.1) (4.2) (3.7) Total net investment income 33.7 32.9 32.8 35.9 33.0 Other income 0.8 0.7 1.0 1.5 0.7 Total operating revenues 155.9 152.6 153.6 159.0 156.5 Benefits Interest credited to policyholder accounts 28.6 28.0 28.2 28.7 28.0 Life benefits 32.1 31.5 35.3 45.4 44.3 Total benefits 60.7 59.5 63.5 74.1 72.3 Expenses Commissions 24.9 23.1 20.4 26.0 26.4 General operating expenses 27.9 33.5 34.0 32.1 33.1 Deferral of policy acquisition costs (32.8) (33.1) (29.0) (35.5) (38.1) Subtotal 20.0 23.5 25.4 22.6 21.4 Amortization of policy acquisition costs 17.1 4.3 16.5 19.3 18.6 Amortization of value of business acquired 6.3 11.2 7.3 5.5 5.0 Total expenses 43.4 39.0 49.2 47.4 45.0 Pre-tax operating earnings 51.8$ 54.1$ 40.9$ 37.5$ 39.2$ Key Ratios/Statistics Cost of insurance per $1,000 of average net amount at risk (1) 6.23$ 6.19$ 6.30$ 6.38$ 6.39$ Life benefits per $1,000 of average net amount at risk (1) 2.27$ 2.23$ 2.52$ 3.24$ 3.14$ General operating expenses to operating revenues 17.9% 22.0% 22.1% 20.2% 21.2% Pre-tax operating earnings to operating revenues 33.2% 35.5% 26.6% 23.6% 25.0% Average allocated capital 1,295.1$ 1,302.7$ 1,307.3$ 1,310.1$ 1,320.1$ Return on average allocated capital 11.8% 11.6% 9.4% 8.3% 8.9% (1) Excludes experience rated BOLI corporate investment life. Note: The results of operations of TBG Financial are reflected as discontinued operations for 2007 and all prior years. Investment Life Policy Reserve Activity ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Balance, beginning of period 14,356.9$ 14,631.2$ 15,310.2$ 15,585.8$ 15,577.0$ Deposits 360.8 336.5 232.8 335.5 348.1 Withdrawals and surrenders (220.9) (125.4) (151.2) (142.2) (137.7) Net flows 139.9 211.1 81.6 193.3 210.4 Investment performance/interest credited to policyholder accounts 262.1 594.8 303.2 (96.0) (1,398.5) Policy charges (121.5) (118.9) (119.1) (121.6) (123.9) Benefits and other (6.2) (8.0) 9.9 15.5 15.3 Balance, end of period 14,631.2$ 15,310.2$ 15,585.8$ 15,577.0$ 14,280.3$ Investment Life 15
  18. 18. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Operating Revenues Administrative fees 4.1$ 4.6$ 5.8$ 7.7$ 8.3$ Surrender fees 0.5 0.7 0.6 0.8 0.8 Cost of insurance 15.9 16.4 16.9 18.2 19.5 Total policy charges 20.5 21.7 23.3 26.7 28.6 Net investment income 86.0 82.8 83.9 84.3 84.5 Premiums 76.9 74.7 72.0 75.8 75.0 Total operating revenues 183.4 179.2 179.2 186.8 188.1 Benefits Interest credited to policyholder accounts 18.7 19.6 19.9 20.3 19.6 Life benefits 74.9 79.9 74.2 76.1 84.7 Policyholder dividends 21.3 20.0 23.1 18.7 23.9 Total benefits 114.9 119.5 117.2 115.1 128.2 Expenses Commissions 8.5 8.8 11.7 17.4 15.9 General operating expenses 28.8 31.1 29.8 31.6 26.8 Deferral of policy acquisition costs (12.3) (14.7) (16.9) (22.3) (18.0) Subtotal 25.0 25.2 24.6 26.7 24.7 Amortization of policy acquisition costs 9.3 4.7 10.6 11.3 7.5 Amortization of value of business acquired 2.3 2.3 2.5 1.9 2.0 Total expenses 36.6 32.2 37.7 39.9 34.2 Pre-tax operating earnings 31.9$ 27.5$ 24.3$ 31.8$ 25.7$ Key Ratios/Statistics Life benefits per $1,000 of average life insurance in force 5.90$ 6.24$ 5.71$ 5.72$ 6.15$ General operating expenses to operating revenues 15.7% 17.4% 16.6% 16.9% 14.2% Pre-tax operating earnings to operating revenues 17.4% 15.3% 13.6% 17.0% 13.7% Average allocated capital 638.1$ 670.8$ 666.3$ 687.9$ 704.3$ Return on average allocated capital 13.0% 10.7% 9.5% 12.0% 9.5% ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Traditional/Universal Life Balance, beginning of period 5,329.9$ 5,323.1$ 5,341.4$ 5,370.6$ 5,413.5$ Deposits 106.7 114.8 116.7 154.7 134.7 Withdrawals and surrenders (62.1) (56.7) (56.1) (62.0) (55.4) Net flows 44.6 58.1 60.6 92.7 79.3 Interest credited to policyholder accounts 19.3 20.1 20.5 20.8 20.6 Policy charges (20.7) (21.8) (24.1) (26.8) (29.5) Benefits and other (50.0) (38.1) (27.8) (43.8) (33.8) Balance, end of period 5,323.1$ 5,341.4$ 5,370.6$ 5,413.5$ 5,450.1$ Policy Reserve Activity Fixed Life Quarterly Earnings Trends Fixed Life 16
  19. 19. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Operating Revenues Net Investment Income General account assets 131.1$ 133.6$ 115.1$ 127.4$ 103.3$ Periodic net coupon settlements on non-qualifying derivatives (0.5) (0.4) - - - Total net investment income 130.6 133.2 115.1 127.4 103.3 Operating realized gains (losses) 2.1 1.6 (3.4) (12.7) (16.8) Other income 49.2 53.8 60.4 58.7 49.4 Total operating revenues 181.9 188.6 172.1 173.4 135.9 Benefits Interest credited Products 65.4 64.0 63.6 69.3 61.4 Periodic net coupon settlements on non-qualifying derivatives 0.1 - - - - Total benefits 65.5 64.0 63.6 69.3 61.4 Expenses Commissions 8.3 7.9 6.8 5.9 4.1 General operating expenses 51.0 53.2 58.9 66.0 56.5 Amortization of value of business acquired - - - 0.2 0.1 Debt extinguishment costs - 10.2 - - - Interest expense 24.5 27.5 28.9 29.7 27.7 Total expenses 83.8 98.8 94.6 101.8 88.4 Pre-tax operating earnings 32.6$ 25.8$ 13.9$ 2.3$ (13.9)$ Note: The results of operations of TBG Financial are reflected as discontinued operations for 2007 and all prior years. Key Ratio / Statistics Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Total Assets 999.0 964.9 995.4 1,062.8 1,348.3 Net Interest Margin 3.22% 2.96% 3.08% 3.18% 2.98% ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Key Ratios/Statistics Daily Average Account Values: General account 4,440.2$ 4,219.9$ 4,107.7$ 4,527.5$ 4,527.2$ Earned rate 6.47% 6.34% 6.35% 6.58% 5.53% Credited rate 5.23% 5.35% 5.42% 5.42% 4.70% Interest spread on daily average general account values 1.24% 0.99% 0.93% 1.16% 0.83% Income from mortgage loan prepayments and bond call premiums 0.22% 0.12% 0.15% 0.28% 0.08% Base interest spread on daily average general account values 1.02% 0.87% 0.78% 0.88% 0.75% ($ in millions) Medium Term Notes Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Balance, beginning of period 4,599.5$ 4,347.9$ 3,939.9$ 4,529.0$ 4,525.7$ Deposits 250.0 200.0 899.8 - - Maturities (500.0) (600.0) (320.0) - - Net flows (250.0) (400.0) 579.8 - - Interest credited to policyholder accounts and amortization 59.3 56.5 55.7 61.1 53.2 Other benefits - interest payments (60.9) (64.5) (46.4) (64.4) (50.2) Balance, end of period 4,347.9$ 3,939.9$ 4,529.0$ 4,525.7$ 4,528.7$ Nationwide Bank 853.1$ 812.2$ 798.6$ 798.3$ 985.7$ Nationwide Funds Group 2,817.5$ 3,109.5$ 3,026.3$ 1,917.3$ 1,640.6$ Total corporate and other account values 8,018.5$ 7,861.6$ 8,353.9$ 7,241.3$ 7,155.0$ Corporate and Other Account Value Activity Corporate and Other Quarterly Earnings Trends Nationwide Bank Medium Term Notes 17
  20. 20. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Individual variable annuities 44,211.7$ 46,131.5$ 47,067.0$ 46,121.5$ 42,698.3$ Individual fixed annuities 6,158.4 5,721.2 5,113.3 4,717.3 4,468.0 Income products 2,043.8 2,064.4 2,083.8 2,101.0 2,102.5 Advisory services program 616.8 643.7 669.5 647.2 604.4 Subtotal individual investments 53,030.7 54,560.8 54,933.6 53,587.0 49,873.2 Private sector pension plans 32,927.9 33,929.2 32,726.5 32,286.5 30,571.0 Public sector pension plans 44,966.9 47,257.8 48,304.8 48,260.1 45,975.0 Subtotal retirement plans 77,894.8 81,187.0 81,031.3 80,546.6 76,546.0 Individual protection investment life 14,631.2 15,310.2 15,585.8 15,577.0 14,280.3 Individual protection fixed life 5,323.1 5,341.4 5,370.6 5,413.5 5,450.1 Subtotal individual protection 19,954.3 20,651.6 20,956.4 20,990.5 19,730.4 Medium term notes 4,347.9 3,939.9 4,529.0 4,525.7 4,528.7 Nationwide Bank 853.1 812.2 798.6 798.3 985.7 Nationwide Funds Group 2,817.5 3,109.5 3,026.3 1,917.3 1,640.6 Subtotal corporate and other 8,018.5 7,861.6 8,353.9 7,241.3 7,155.0 Customer funds managed and administered 158,898.3$ 164,261.0$ 165,275.2$ 162,365.4$ 153,304.6$ Note: Total Customer Funds Managed and Administered includes NFG funds as detailed below. ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Individual Investments 13,979.2 14,882.0 15,396.2 15,690.1 14,884.5 Retirement Plans 7,461.5 7,909.3 8,871.4 9,020.1 8,813.0 Individual Protection 3,442.0 3,629.0 3,682.1 3,543.2 3,369.3 Corporate and Other 2,817.5 3,109.5 3,026.3 1,917.3 1,640.6 Customer funds managed and administered 27,700.2$ 29,529.8$ 30,976.0$ 30,170.7$ 28,707.4$ Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 ($ in millions) Individual Investments Equity 33,757.2$ 35,677.4$ 36,383.4$ 35,459.8$ 31,632.0$ Bond 4,666.4 4,681.6 4,998.5 5,170.9 5,318.6 Money market 1,569.5 1,633.1 1,630.9 1,742.1 1,912.3 Subtotal individual investments 39,993.1 41,992.1 43,012.8 42,372.8 38,862.9 Retirement Plans Equity 14,413.5$ 14,492.8$ 14,725.5$ 14,311.9$ 12,543.8$ Bond 2,674.8 2,583.8 925.6 996.0 1,083.9 Money market 523.3 507.7 544.3 555.9 598.2 Other 644.5 673.2 686.5 731.3 761.4 Subtotal retirement plans 18,256.1 18,257.5 16,881.9 16,595.1 14,987.3 Individual Protection Equity 8,818.8$ 9,370.9$ 9,570.3$ 9,387.5$ 8,486.6$ Bond 2,055.1 2,143.6 2,180.2 2,860.0 2,379.1 Money market 1,336.0 1,359.9 1,375.2 955.3 1,001.0 Subtotal individual protection 12,209.9 12,874.4 13,125.7 13,202.8 11,866.7 Corporate and Other Equity 749.2$ 604.8$ 692.6$ 615.5$ 504.6$ Bond 70.0 56.3 64.2 59.8 55.3 Money market 9.8 7.7 9.5 9.0 10.8 Subtotal corporate and other 829.0 668.8 766.3 684.3 570.7 Total Equity 57,738.7$ 60,145.9$ 61,371.8$ 59,774.7$ 53,167.0$ Bond 9,466.3 9,465.3 8,168.5 9,086.7 8,836.9 Money market 3,438.6 3,508.4 3,559.9 3,262.3 3,522.3 Other 644.5 673.2 686.5 731.3 761.4 Total separate account assets by fund type 71,288.1$ 73,792.8$ 73,786.7$ 72,855.0$ 66,287.6$ Customer Funds Managed and Administered Nationwide Funds Group - Customer Funds Managed and Administered Separate Account Assets by Segment and Fund Type 18
  21. 21. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 Gross Gross Amortized Unrealized Unrealized Estimated ($ in millions) Cost Gains Losses Fair Value March 31, 2008 Fixed maturity securities: U.S. Treasury securities and obligations of U.S. Government corporations 147.8$ 22.8$ 0.3$ 170.3$ Agencies not backed by the full faith and credit of the U.S. Government 449.4 73.6 0.1 522.9 Obligations of states and political subdivisions 262.8 3.8 1.8 264.8 Debt securities issued by foreign governments 50.2 3.3 - 53.5 Corporate securities Public 9,160.6 242.5 296.1 9,107.0 Private 5,844.3 178.9 66.5 5,956.7 Mortgage-backed securities 7,288.5 77.0 363.5 7,002.0 Asset-backed securities 4,058.7 32.9 372.1 3,719.5 Total fixed maturities 27,262.3 634.8 1,100.4 26,796.7 Equity securities 118.6 4.4 5.4 117.6 Total 27,380.9$ 639.2$ 1,105.8$ 26,914.3$ December 31, 2007 Fixed maturity securities: U.S. Treasury securities and obligations of U.S. Government corporations 172.8$ 17.4$ 0.9$ 189.3$ Agencies not backed by the full faith and credit of the U.S. Government 418.1 61.5 - 479.6 Obligations of states and political subdivisions 273.3 1.7 2.8 272.2 Debt securities issued by foreign governments 56.2 2.5 0.3 58.4 Corporate securities Public 9,233.2 175.2 178.8 9,229.6 Private 6,010.7 135.7 66.9 6,079.5 Mortgage-backed securities 7,142.5 40.3 108.2 7,074.6 Asset-backed securities 3,957.1 33.4 184.5 3,806.0 Total fixed maturities 27,263.9 467.7 542.4 27,189.2 Equity securities 117.5 8.3 1.6 124.2 Total 27,381.4$ 476.0$ 544.0$ 27,313.4$ 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, 2008 Fixed maturity securities: U.S. Treasury securities & obligations of U.S. Government corporations 10.1$ -$ 1.5$ 0.3$ 11.6$ 0.3$ Agencies not backed by the full faith and credit of the U.S. Government 11.3 0.1 - - 11.3 0.1 Obligations of states and political subdivisions 31.1 0.4 33.1 1.4 64.2 1.8 Debt securities issued by foreign governments - - 1.2 - 1.2 - Corporate securities Public 2,564.1 208.8 1,338.5 87.3 3,902.6 296.1 Private 652.1 38.2 1,306.6 28.3 1,958.7 66.5 Mortgage-backed securities 2,102.2 200.3 1,619.5 163.2 3,721.7 363.5 Asset-backed securities 1,829.1 262.2 1,115.8 109.9 2,944.9 372.1 Total fixed maturities 7,200.0 710.0 5,416.2 390.4 12,616.2 1,100.4 Equity securities 87.2 5.4 0.1 - 87.3 5.4 Total 7,287.2$ 715.4$ 5,416.3$ 390.4$ 12,703.5$ 1,105.8$ Percentage of gross unrealized losses 65% 35% December 31, 2007 Fixed maturity securities: U.S. Treasury securities & obligations of U.S. Government corporations 23.7$ 0.6$ 4.2$ 0.3$ 27.9$ 0.9$ Agencies not backed by the full faith and credit of the U.S. Government - - 13.9 - 13.9 - Obligations of states and political subdivisions 23.9 0.2 154.3 2.6 178.2 2.8 Debt securities issued by foreign governments 26.4 0.3 1.2 - 27.6 0.3 Corporate securities Public 2,452.6 103.4 2,287.7 75.4 4,740.3 178.8 Private 740.4 18.8 2,076.6 48.1 2,817.0 66.9 Mortgage-backed securities 1,448.4 27.6 2,775.7 80.6 4,224.1 108.2 Asset-backed securities 1,515.3 132.3 1,211.6 52.2 2,726.9 184.5 Total fixed maturities 6,230.7 283.2 8,525.2 259.2 14,755.9 542.4 Equity securities 37.5 1.6 0.1 - 37.6 1.6 Total 6,268.2$ 284.8$ 8,525.3$ 259.2$ 14,793.5$ 544.0$ Percentage of gross unrealized losses 52% 48% or Equal to One Year Unrealized Losses MoreUnrealized Losses Less Than Securities Available-For-Sale Aging of Gross Unrealized Losses on Securities Available-For-Sale 19
  22. 22. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 Amortized Est. Fair Amortized Est. Fair ($ in millions) Cost Value Cost Value NAIC Designation Rating Agency Equivalent Designation 19,034.0$ 18,576.0$ 19,153.4$ 19,056.5$ 6,458.5 6,567.4 6,445.9 6,512.7 1,211.5 1,142.3 1,194.0 1,166.7 387.9 358.9 348.2 341.6 104.6 87.6 83.8 73.1 65.8 64.5 38.6 38.6 27,262.3$ 26,796.7$ 27,263.9$ 27,189.2$ ($ in millions) Apartment March 31, 2008 Office Warehouse Retail & Other Total New England 138.2$ 26.9$ 77.5$ 97.4$ 340.0$ Middle Atlantic 167.4 267.7 358.0 163.3 956.4 East North Central 93.9 236.7 552.2 499.2 1,382.0 West North Central 33.5 69.2 63.8 139.7 306.2 South Atlantic 145.3 482.1 734.9 504.5 1,866.8 East South Central 23.0 44.5 121.0 143.7 332.2 West South Central 15.8 169.6 183.1 234.7 603.2 Mountain 122.3 139.9 141.9 360.8 764.9 Pacific 340.1 430.9 437.4 395.1 1,603.5 Subtotal - Principal 1,079.5$ 1,867.5$ 2,669.8$ 2,538.4$ 8,155.2$ Valuation allowance (24.8) Unamortized premium 12.1 Lower of cost or market adjustment on mortgage loans held for sale (8.6) Change in fair value of hedged mortgage loans and commitments 22.5 Total mortgage loans on real estate, net 8,156.4$ Apartment December 31, 2007 Office Warehouse Retail & Other Total New England 141.1$ 27.1$ 78.3$ 92.5$ 339.0$ Middle Atlantic 172.9 278.0 355.5 164.0 970.4 East North Central 91.2 239.2 555.8 491.7 1,377.9 West North Central 34.9 70.7 77.0 152.3 334.9 South Atlantic 155.9 494.1 737.1 562.4 1,949.5 East South Central 25.8 45.0 122.0 154.0 346.8 West South Central 22.8 170.1 179.7 242.4 615.0 Mountain 123.0 138.1 168.4 359.4 788.9 Pacific 333.0 434.5 438.6 386.2 1,592.3 Subtotal - Principal 1,100.6$ 1,896.8$ 2,712.4$ 2,604.9$ 8,314.7$ Valuation allowance (24.8) Unamortized premium 12.9 Lower of cost or market adjustment on mortgage loans held for sale (3.8) Change in fair value of hedged mortgage loans and commitments 17.1 Total mortgage loans on real estate, net 8,316.1$ Mortgage Loans by Region and Property Type 6 In or near default Total fixed maturities March 31, 2008 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, 2007 20
  23. 23. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Three Months Ended March 31, 2008 Balance, beginning of period 2,078.0$ 292.9$ 1,637.6$ 87.1$ 4,095.6$ Capitalization 89.2 9.2 56.1 - 154.5 Amortization (77.7) (10.1) (26.1) - (113.9) Adjustments to unrealized gains and losses on securities available-for-sale and other 44.7 0.6 0.6 84.9 130.8 Balance, end of period 2,134.2$ 292.6$ 1,668.2$ 172.0$ 4,267.0$ Year Ended December 31, 2007 Balance, beginning of period 1,945.0$ 292.1$ 1,530.5$ 83.4$ 3,851.0$ Capitalization 398.6 36.1 196.6 - 631.3 Amortization (287.1) (27.4) (93.1) - (407.6) Adjustments to unrealized gains and losses on securities available-for-sale and other 21.5 (7.9) 3.6 3.7 20.9 Balance, end of period 2,078.0$ 292.9$ 1,637.6$ 87.1$ 4,095.6$ Year Ended December 31, 2006 Balance, beginning of period 1,936.4$ 294.5$ 1,412.0$ 42.5$ 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 10.5 (0.9) (0.7) 40.9 49.8 Balance, end of period 1,945.0$ 292.1$ 1,530.5$ 83.4$ 3,851.0$ Year Ended December 31, 2005 Balance, beginning of period 2,094.6$ 304.9$ 1,314.2$ (152.6)$ 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 (79.6) (0.2) (0.6) 195.1 114.7 Balance, end of period 1,936.4$ 294.5$ 1,412.0$ 42.5$ 3,685.4$ Year Ended December 31, 2004 Balance, beginning of period 2,052.1$ 303.3$ 1,223.3$ (248.8)$ 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 25.0 - 1.2 96.2 122.4 Balance, end of period 2,094.6$ 304.9$ 1,314.2$ (152.6)$ 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 (0.1) 0.4 59.2 77.5 Balance, end of period 2,052.1$ 303.3$ 1,223.3$ (248.8)$ 3,329.9$ Deferred Policy Acquisition Costs 21
  24. 24. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 1,151.9$ 82.7$ 5,368.6$ 290.5$ 2 5,002.4 301.3 4,762.3 189.8 3 4,404.5 191.0 3,177.3 160.6 4 2,957.0 158.2 3,598.2 173.8 5 3,310.3 168.6 4,310.5 178.7 6 3,934.5 170.9 4,363.6 154.0 7 3,949.2 147.2 4,593.7 163.6 8 4,084.6 155.6 3,533.0 140.7 9 2,989.9 134.8 2,309.3 97.3 10 2,022.9 93.8 2,164.7 89.6 11-15 6,842.9 335.3 6,371.0 294.7 16-20 1,705.7 76.8 1,247.3 51.0 21-27 342.5 4.6 322.0 3.4 Total: 42,698.3$ 2,020.8$ 15.0% 46,121.5$ 1,987.7$ 14.9% Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 4,633.0$ 285.2$ 3,000.3$ 200.6$ 2 3,194.1 174.3 3,521.0 212.8 3 3,639.6 186.5 4,361.5 224.6 4 4,425.8 191.2 4,519.7 199.0 5 4,584.6 165.4 4,752.0 210.0 6 4,697.1 169.4 4,662.3 189.1 7 4,599.3 153.3 3,569.7 128.5 8 2,862.0 97.0 3,006.1 96.8 9 2,514.9 89.7 2,169.5 84.9 10 1,934.5 84.0 2,029.1 75.5 11-15 5,635.7 233.9 4,386.3 168.0 16-20 783.7 30.1 512.5 19.4 21-27 300.5 2.3 306.0 2.2 Total: 43,804.8$ 1,862.3$ 14.6% 40,796.0$ 1,811.4$ 13.5% Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 3,748.9$ 253.1$ 4,500.3$ 310.6$ 2 4,649.3 259.9 4,638.5 284.0 3 4,844.1 239.2 5,014.8 283.3 4 5,106.3 243.4 4,864.6 275.1 5 4,917.0 206.2 3,886.5 170.6 6 3,813.5 148.0 3,833.3 140.9 7 3,708.0 121.0 3,114.6 116.5 8 2,624.7 101.5 2,685.2 72.8 9 2,315.0 84.8 1,877.4 52.3 10 1,690.1 62.5 1,415.8 35.7 11-15 3,427.8 132.6 2,493.5 61.0 16-20 316.6 13.6 186.4 3.5 21-25 320.6 2.3 325.0 1.2 Total: 41,481.9$ 1,868.1$ 12.5% 38,835.9$ 1,807.5$ 12.5% Individual Variable Annuity Deferred Acquisition Costs March 31, 2008 December 31, 2007 December 31, 2004 December 31, 2003 December 31, 2005December 31, 2006 22
  25. 25. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Three Months Ended March 31, 2008 Balance, beginning of period 13.5$ 5.8$ 329.5$ 6.0$ 354.8$ Amortization (0.8) (0.5) (7.0) (0.1) (8.4) Adjustments to realized and unrealized gains and losses on securities available-for-sale - (0.7) 0.1 0.1 (0.5) Balance, end of period 12.7$ 4.6$ 322.6$ 6.0$ 345.9$ Year Ended December 31, 2007 Balance, beginning of period 14.1$ 4.9$ 367.5$ 6.2$ 392.7$ Amortization (5.3) (2.2) (39.3) (0.2) (47.0) Adjustments to realized and unrealized gains and losses on securities available-for-sale 4.7 3.1 1.3 - 9.1 Balance, end of period 13.5$ 5.8$ 329.5$ 6.0$ 354.8$ 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) (34.3) - (45.0) Adjustments to realized and unrealized gains and losses on securities available-for-sale 9.5 2.7 2.1 - 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) - (46.3) Adjustments to realized and unrealized gains and losses on securities available-for-sale and other (2.6) (1.5) 3.9 0.2 - Balance, end of period 33.0$ 19.6$ 463.6$ 6.8$ 523.0$ Value of Business Acquired 23
  26. 26. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Account Account GMDB Benefit Type Values Gross Net Values Gross Net Return of premium 8,229.2$ 43.0$ 35.0$ 9,086.7$ 23.4$ 18.7$ Reset 16,625.8 401.9 302.4 18,055.4 120.7 62.1 Ratchet 15,067.2 1,006.6 801.2 15,931.7 224.4 133.3 Roll-up 431.9 84.4 11.0 492.2 61.7 8.4 Combo 2,344.2 165.1 163.7 2,555.5 48.0 47.0 Subtotal 42,698.3$ 1,701.0 1,313.3 46,121.5$ 478.2 269.5 Earnings enhancement 476.0$ 36.3$ 36.3$ 519.2$ 49.8$ 49.8$ Total 1,737.3$ 1,349.6$ 528.0$ 319.3$ GAAP GMDB reserves 57.0$ 47.6$ Statutory GMDB reserves 69.1$ 34.4$ Account Account GMDB Benefit Type Values Gross Net Values Gross Net Return of premium 9,243.7$ 42.9$ 33.9$ 9,272.7$ 83.3$ 32.5$ Reset 17,752.7 177.3 49.3 17,130.4 388.0 61.8 Ratchet 13,651.6 195.2 31.7 11,233.2 410.3 31.6 Roll-up 568.1 87.7 11.3 629.1 143.8 8.4 Combo 2,588.7 30.1 28.9 2,530.6 45.7 22.3 Subtotal 43,804.8$ 533.2 155.1 40,796.0$ 1,071.1 156.6 Earnings enhancement 477.8$ 41.1$ 41.1$ 418.5$ 27.6$ 27.6$ Total 574.3$ 196.2$ 1,098.7$ 184.2$ GAAP GMDB reserves 29.6$ 27.2$ Statutory GMDB reserves 27.3$ 38.4$ Account Account GMDB Benefit Type Values Gross Net Values Gross Net Return of premium 9,848.6$ 136.8$ 54.1$ 9,713.8$ 247.8$ 199.8$ Reset 18,084.1 751.7 158.1 17,834.0 1,313.4 579.6 Ratchet 10,322.1 644.5 46.3 8,433.7 1,008.3 147.8 Roll-up 707.2 167.5 9.7 725.7 195.8 22.3 Combo 2,519.9 39.8 19.2 2,128.7 42.0 39.6 Subtotal 41,481.9$ 1,740.3 287.4 38,835.9$ 2,807.3 989.1 Earnings enhancement 310.1$ 18.0$ 18.0$ 314.1$ 10.9$ 10.9$ Total 1,758.3$ 305.4$ 2,818.2$ 1,000.0$ 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 8.0$ 11.6$ 10.2$ 3.3$ 1.9$ 35.0$ 61 Reset 38.8 92.0 99.3 55.9 16.4 302.4 63 Ratchet 77.8 200.2 255.6 182.2 85.4 801.2 66 Roll-up 0.9 1.7 3.2 3.2 2.0 11.0 71 Combo 11.1 32.0 54.2 46.4 20.0 163.7 67 Subtotal 136.6 337.5 422.5 291.0 125.7 1,313.3 65 Earnings enhancement 3.4 10.1 14.8 8.0 - 36.3 63 Total 140.0$ 347.6$ 437.3$ 299.0$ 125.7$ 1,349.6$ 65 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 Net Amount at Risk December 31, 2004 Net Amount at Risk December 31, 2007 Net Amount at Risk, Net of Reinsurance by Benefit Type and Age at March 31, 2008 March 31, 2008 Net Amount at Risk Net Amount at Risk December 31, 2005 Net Amount at Risk December 31, 2003 December 31, 2006 Net Amount at Risk 24
  27. 27. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Account Account GMAB Benefit Type Values Gross Net Values Gross Net 5 Year 3,001.6$ 48.7$ 48.7$ 2,985.6$ 4.6$ 4.6$ 7 Year 2,609.4 55.5 55.5 2,644.1 6.2 6.2 10 Year 882.9 10.4 10.4 927.3 1.3 1.3 Total 6,493.9$ 114.6$ 114.6$ 6,557.0$ 12.1$ 12.1$ CPPLI included in totals 4,828.3$ 114.6$ 114.6$ 4,772.4$ 12.1$ 12.1$ Account Account GMAB Benefit Type Values Gross Net Values Gross Net 5 Year 2,131.1$ 0.1$ 0.1$ 1,041.8$ 0.5$ 0.5$ 7 Year 1,865.7 0.1 0.1 1,103.5 0.2 0.2 10 Year 784.0 - - 595.5 0.1 0.1 Total 4,780.8$ 0.2$ 0.2$ 2,740.8$ 0.8$ 0.8$ CPPLI included in totals 2,946.4$ 0.2$ 0.2$ 939.1$ 0.6$ 0.6$ Account GMAB Benefit Type Values Gross Net 5 Year 512.2$ 0.1$ 0.1$ 7 Year 647.5 - - 10 Year 332.4 - - Total 1,492.1$ 0.1$ 0.1$ CPPLI included in totals - - - ($ in millions) Account Account GMIB Benefit Type Values Gross Net Values Gross Net Ratchet 379.5$ 0.1$ -$ 425.2$ 0.1$ -$ Roll-up 997.0 3.6 - 1,119.9 1.8 - Combo 0.3 - - 0.3 - - Total 1,376.8$ 3.7$ -$ 1,545.4$ 1.9$ -$ Account Account GMIB Benefit Type Values Gross Net Values Gross Net Ratchet 450.6$ 0.2$ -$ 444.7$ 0.3$ -$ Roll-up 1,187.1 3.3 - 1,189.3 5.0 - Combo 0.5 - - 0.5 - - Total 1,638.2$ 3.5$ -$ 1,634.5$ 5.3$ -$ Account Account GMIB Benefit Type Values Gross Net Values Gross Net Ratchet 439.7$ 0.7$ -$ 418.0$ 1.0$ -$ Roll-up 1,188.7 7.2 - 1,132.2 8.6 - Combo 1.0 - - 1.1 - - Total 1,629.4$ 7.9$ -$ 1,551.3$ 9.6$ -$ 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. Net Amount at Risk Net Amount at Risk December 31, 2004 Net Amount at Risk Individual Variable Annuity Guaranteed Minimum Accumulation Benefits Individual Variable Annuity Guaranteed Minimum Income Benefits March 31, 2008 December 31, 2007 Net Amount at Risk Net Amount at Risk December 31, 2004 December 31, 2003 Net Amount at Risk December 31, 2007 Net Amount at Risk Net Amount at Risk December 31, 2006 Net Amount at Risk December 31, 2005 Net Amount at Risk December 31, 2005 March 31, 2008 December 31, 2006 Net Amount at Risk 25
  28. 28. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) Account Account GLWB Benefit Type Values Gross Net Values Gross Net L.INC 3,113.2$ -$ -$ 2,865.8$ -$ -$ Total 3,113.2$ -$ -$ 2,865.8$ -$ -$ Account GLWB Benefit Type Values Gross Net L.INC 993.8$ -$ -$ Total 993.8$ -$ -$ ($ in millions) Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Balance, beginning of period 29.6$ 32.4$ 40.7$ 43.4$ 47.6$ Expense provision 8.4 11.6 6.2 7.6 17.1 Net claims paid (5.6) (3.3) (3.5) (3.4) (7.7) Balance, end of period 32.4$ 40.7$ 43.4$ 47.6$ 57.0$ Account Wtd. Avg. Account Wtd. Avg. ($ in millions) Value Crediting Rate Value Crediting Rate Minimum interest rate of 3.50% or greater -$ - 978.2$ 3.84% Minimum interest rate of 3.0% to 3.49% 1,214.9 4.09% 3,107.7 3.14% Minimum interest rate lower than 3.00% 802.5 3.40% 460.9 3.63% MVA with no minimum interest rate guarantee - - - - Total 2,017.4$ 3.82% 4,546.8$ 3.34% Account Wtd. Avg. Account Wtd. Avg. Value Crediting Rate Value Crediting Rate Minimum interest rate of 3.50% or greater -$ - 978.2 3.84% Minimum interest rate of 3.0% to 3.49% - - 4,322.6 3.40% Minimum interest rate lower than 3.00% 32.5 4.00% 1,295.9 3.50% MVA with no minimum interest rate guarantee 1,832.9 2.55% 1,832.9 2.55% Total 1,865.4$ 2.58% 8,429.6$ 3.28% Definition of Benefit Types 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. MVA & Other Total December 31, 2006 Net Amount at Risk Individual Variable Annuity Guaranteed Minimum Death Benefit Reserve Activity Individual Fixed Annuity and Fixed Option of Variable Annuity Summary of Crediting Rate Detail as of March 31, 2008 Ratchet Reset Individual Variable Annuity Guaranteed Lifetime Withdrawal Benefits March 31, 2008 December 31, 2007 Net Amount at Risk Net Amount at Risk 26
  29. 29. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions except for per share data) 2003 2004 2005 2006 2007 Operating Revenues Individual investments 1,404.5$ 1,487.0$ 1,528.2$ 1,526.6$ 1,469.8$ Retirement plans 934.1 982.5 1,045.2 1,115.6 1,146.2 Individual protection 1,317.1 1,318.2 1,321.1 1,321.0 1,349.7 Corporate and other 367.2 421.1 503.5 599.9 716.0 Total operating revenues 4,022.9$ 4,208.8$ 4,398.0$ 4,563.1$ 4,681.7$ Net realized investment gains/(losses) (1) (86.3) (40.9) 18.2 (0.6) (152.8) Total revenues 3,936.6$ 4,167.9$ 4,416.2$ 4,562.5$ 4,528.9$ Pre-tax Operating Earnings (Loss) Individual investments 194.6$ 244.0$ 250.7$ 223.1$ 300.7$ Retirement plans 156.4 183.3 191.3 221.2 252.6 Individual protection 225.5 247.3 266.1 280.8 299.8 Corporate and other 52.6 66.8 54.9 65.1 74.6 Pre-tax operating earnings 629.1$ 741.4$ 763.0$ 790.2$ 927.7$ Federal income tax expense 158.6 190.3 135.1 69.0 235.2 Net operating earnings 470.5$ 551.1$ 627.9$ 721.2$ 692.5$ Net realized investment gains/(losses), net of taxes (2) (56.2) (26.6) 11.1 5.9 (82.8) Discontinued operations, net of taxes (6.3) (4.7) (28.6) (3.1) 23.1 Cumulative effect of adoption of accounting principles, net of taxes (0.6) (3.4) - - (6.0) Net income 407.4$ 516.4$ 610.4$ 724.0$ 626.8$ Per Common Diluted Share Net operating earnings 3.09$ 3.60$ 4.09$ 4.79$ 4.83$ Net realized investment gains/(losses), net of taxes (2) (0.38) (0.17) 0.07 0.03 (0.58) Discontinued operations, net of taxes (0.04) (0.03) (0.19) (0.02) 0.16 Cumulative effect of adoption of accounting principles, net of taxes - (0.02) - - (0.04) Net income 2.67$ 3.38$ 3.97$ 4.80$ 4.37$ Sales by Channel Non-affiliated Independent broker/dealers 4,615.0$ 5,223.2$ 5,266.0$ 5,758.2$ 6,354.7$ Wirehouse and regional firms 1,995.0 1,992.1 1,912.5 2,433.6 2,879.0 Financial institutions 3,758.2 2,618.5 1,808.0 2,295.1 2,501.2 Pension plan administrators 574.8 476.1 469.0 532.8 507.7 Life specialists 387.5 382.8 382.4 580.6 329.6 Affiliated Nationwide Retirement Solutions 3,209.9 3,665.9 3,914.7 4,050.2 4,299.9 Mullin TBG 160.9 184.2 275.4 226.1 223.2 Nationwide Financial Network 1,479.9 1,475.2 1,415.8 1,486.5 1,468.9 Total 16,181.2$ 16,018.0$ 15,443.8$ 17,363.1$ 18,564.2$ (1) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). (2) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations), and net of adjustment to amortization related to net realized gains/(losses). Note: The results of operations of TBG Financial and The 401(k) Company are reflected as discontinued operations for 2007 and all prior years. In addition, 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. Historical Financial Highlights 27
  30. 30. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions except for per share data) 2003 2004 2005 2006 2007 Balance Sheet Data Total assets 111,237.8$ 117,121.2$ 116,361.2$ 119,531.1$ 119,207.1$ Total customer funds managed and administered 127,699.0$ 140,296.6$ 145,484.8$ 156,909.9$ 162,365.4$ Shareholder's equity Including AOCI 4,868.9$ 5,234.0$ 5,387.6$ 5,622.7$ 5,324.6$ AOCI 504.9 432.2 100.7 31.9 (81.5) Excluding AOCI 4,364.0$ 4,801.8$ 5,286.9$ 5,590.8$ 5,406.1$ Net operating return on average equity excluding AOCI 11.2% 12.1% 12.4% 13.2% 12.5% Adjusted net operating return on average equity excluding AOCI (1) 11.2% 12.1% 11.7% 11.3% 12.5% Statutory capital and surplus 2,730.0$ 2,967.5$ 3,262.1$ 3,336.6$ 3,175.1$ Stock Data Closing Price 33.06$ 38.23$ 44.00$ 54.20$ 45.01$ Weighted average common shares outstanding Basic 151.8 152.1 152.9 149.9 142.5 Diluted 152.3 152.9 153.6 150.7 143.5 Book value per share Including AOCI 32.05$ 34.32$ 35.33$ 38.51$ 38.44$ Excluding AOCI 28.73$ 31.49$ 34.67$ 38.29$ 39.03$ (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 $113.1 million of released tax reserves and associated tax-related adjustments relating to prior tax years. Note: The results of operations of TBG Financial and The 401(k) Company are reflected as discontinued operations for 2007 and all prior years. In addition, the results of operations of Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) are reflected as discontinued operations for 2005 and all prior years. Historical Financial Highlights 28
  31. 31. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) 2003 2004 2005 2006 2007 Operating Revenues Asset fees 547.2$ 620.7$ 639.9$ 691.2$ 773.2$ Cost of insurance charges 371.3 379.7 388.5 402.0 420.5 Administrative fees 107.7 117.9 114.9 139.1 119.4 Surrender fees 94.2 104.3 98.2 83.7 70.8 Total policy charges 1,120.4 1,222.6 1,241.5 1,316.0 1,383.9 Premiums 426.2 402.7 399.9 441.5 432.7 Net investment income 2,198.0 2,231.7 2,344.1 2,300.2 2,276.7 Operating realized gains and (losses) 15.7 8.7 2.6 9.7 (12.4) Other income 262.6 343.1 409.9 495.7 600.8 Total operating revenues 4,022.9 4,208.8 4,398.0 4,563.1 4,681.7 Benefits Interest credited to policyholder accounts 1,367.5 1,328.3 1,380.9 1,381.5 1,342.0 Life insurance and annuity benefits 581.7 548.6 574.9 646.8 682.9 Policyholder dividends 105.7 101.4 107.3 90.7 83.1 Total benefits 2,054.9 1,978.3 2,063.1 2,119.0 2,108.0 Expenses Commissions 597.2 573.2 557.5 658.3 738.8 General operating expenses 825.1 870.0 849.7 962.3 963.1 Debt extinguishment costs - - 21.7 - 10.2 Deferral of policy acquisition costs (620.1) (539.2) (489.0) (588.4) (631.3) Subtotal 802.2 904.0 939.9 1,032.2 1,080.8 Amortization of policy acquisition costs 394.6 430.4 479.4 472.6 407.6 Amortization of value of business acquired 46.3 52.3 45.0 46.0 47.0 Interest expense 95.8 102.4 107.6 103.1 110.6 Total expenses 1,338.9 1,489.1 1,571.9 1,653.9 1,646.0 Pre-tax operating earnings 629.1$ 741.4$ 763.0$ 790.2$ 927.7$ Federal income tax expense 158.6 190.3 135.1 69.0 235.2 Net operating earnings 470.5$ 551.1$ 627.9$ 721.2$ 692.5$ Net realized investment gains/(losses), net of taxes (1) Realized gains/(losses) on sales, net of hedging 48.2 45.3 43.8 17.1 8.5 Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (110.7) (67.1) (26.9) (11.0) (76.1) Credit default swaps 8.6 0.3 (4.8) (0.8) (3.9) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.8 (3.4) 0.8 (0.4) (10.4) Amounts credited to policyholder dividend obligation (3.5) (4.7) (3.3) - (1.7) Adjustment to VOBA amortization 0.4 3.0 1.5 1.0 0.8 Subtotal (56.2) (26.6) 11.1 5.9 (82.8) Discontinued operations, net of taxes (6.3) (4.7) (28.6) (3.1) 23.1 Cumulative effect of adoption of accounting principles, net of taxes (0.6) (3.4) - - (6.0) Net income 407.4$ 516.4$ 610.4$ 724.0$ 626.8$ (1) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations), and net of adjustment to amortization related to net realized gains/(losses). Note: The results of operations of TBG Financial and The 401(k) Company are reflected as discontinued operations for 2007 and all prior years. In addition, 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. Historical Consolidated Earnings Trends 29
  32. 32. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions, except per share data) 2003 2004 2005 2006 2007 Assets Investments Securities available-for-sale: Fixed maturity securities 30,787.1$ 31,516.8$ 30,106.0$ 28,160.0$ 27,189.2$ Equity securities 128.7 87.0 75.6 67.6 124.2 Trading assets 4.9 15.9 34.4 24.3 37.7 Mortgage loans 8,964.7 9,267.5 9,148.6 8,909.8 8,316.1 Real estate 123.4 108.3 108.7 59.1 21.8 Policy loans 963.2 987.2 930.6 966.9 1,018.3 Other long-term investments 194.6 604.2 691.9 856.0 1,187.2 Short-term investments 1,970.3 2,009.9 2,073.2 2,215.6 1,173.6 Total investments 43,136.9 44,596.8 43,169.0 41,259.3 39,068.1 Cash 15.3 60.3 49.5 84.1 73.6 Accrued investment income 439.6 428.7 396.3 373.8 368.4 Deferred policy acquisition costs 3,329.9 3,561.1 3,685.4 3,851.0 4,095.6 Value of business acquired 523.0 480.4 449.7 392.7 354.8 Other intangible assets 52.3 48.7 45.6 47.6 44.3 Goodwill 406.7 382.3 364.5 359.0 301.2 Other assets 2,396.5 2,659.7 2,237.4 2,468.9 2,046.1 Separate account assets 60,937.6 64,903.2 65,963.8 70,694.7 72,855.0 Total assets 111,237.8$ 117,121.2$ 116,361.2$ 119,531.1$ 119,207.1$ Liabilities and shareholders' equity Future policy benefits and claims 40,049.3$ 41,077.2$ 39,748.1$ 38,097.8$ 35,441.5$ Short-term debt 205.3 230.8 252.3 85.2 309.3 Long-term debt 1,405.6 1,406.0 1,398.0 1,398.5 1,565.1 Other liabilities 3,771.1 4,270.0 3,611.4 3,632.2 3,711.6 Separate account liabilities 60,937.6 64,903.2 65,963.8 70,694.7 72,855.0 106,368.9 111,887.2 110,973.6 113,908.4 113,882.5 Shareholders' equity 4,868.9 5,234.0 5,387.6 5,622.7 5,324.6 Total liabilities and shareholders' equity 111,237.8$ 117,121.2$ 116,361.2$ 119,531.1$ 119,207.1$ 2003 2004 2005 2006 2007 Total capital, including AOCI 6,274.5$ 6,640.0$ 6,785.6$ 7,021.2$ 6,889.7$ Less AOCI 504.9 432.2 100.7 31.9 (81.5) Total capital, excluding AOCI 5,769.6$ 6,207.8$ 6,684.9$ 6,989.3$ 6,971.2$ Leverage including AOCI Long-term debt--to--total capital 22.4% 21.2% 20.6% 19.9% 22.7% Leverage excluding AOCI Long-term debt--to--total capital 24.4% 22.6% 20.9% 20.0% 22.5% Ratio of pre-tax operating earnings before interest expense to interest expense 7.6X 8.2X 8.1X 8.7X 9.4X Historical Consolidated Balance Sheet Capital Structure 30
  33. 33. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) 2003 2004 2005 2006 2007 Operating Revenues Asset fees 370.9$ 435.5$ 461.9$ 511.4$ 587.6$ Administrative fees 12.1 15.7 16.2 20.4 27.1 Surrender fees 56.0 62.2 62.1 56.6 47.9 Total policy charges 439.0 513.4 540.2 588.4 662.6 Net Investment Income General account assets 886.5 895.3 895.9 806.3 671.8 Charge for invested capital (26.1) (22.5) (26.0) (25.2) (28.9) Total net investment income 860.4 872.8 869.9 781.1 642.9 Premiums 93.4 90.8 102.9 142.5 133.3 Other income 11.7 10.0 15.2 14.6 31.0 Total operating revenues 1,404.5 1,487.0 1,528.2 1,526.6 1,469.8 Benefits Interest credited to policyholder accounts 637.5 606.1 589.1 528.3 444.3 Immediate annuity benefits 82.0 76.1 89.2 126.9 119.6 Policy benefits 78.5 63.1 66.2 75.5 113.9 Total benefits 798.0 745.3 744.5 730.7 677.8 Expenses Commissions 345.5 288.3 257.5 340.5 398.1 General operating expenses 208.6 219.4 189.7 223.9 199.4 Deferral of policy acquisition costs (376.8) (293.6) (250.7) (350.8) (398.6) Subtotal 177.3 214.1 196.5 213.6 198.9 Amortization of policy acquisition costs 228.3 276.1 329.3 352.7 287.1 Amortization of value of business acquired 6.3 7.5 7.2 6.5 5.3 Total expenses 411.9 497.7 533.0 572.8 491.3 Pre-tax operating earnings (loss) 194.6$ 244.0$ 250.7$ 223.1$ 300.7$ Key Ratios/Statistics Average Account Values: General account 15,340.9$ 16,211.1$ 15,966.7$ 14,041.3$ 11,814.2$ Separate account 29,170.6 34,198.8 35,600.5 37,223.3 41,366.0 Advisory services program 7.8 99.1 309.3 508.1 634.9 Total average individual investment account values 44,519.3$ 50,509.0$ 51,876.5$ 51,772.7$ 53,815.1$ Earned rate 5.78% 5.52% 5.61% 5.74% 5.69% Credited rate 4.16% 3.74% 3.69% 3.76% 3.76% Interest spread on average general account values 1.62% 1.78% 1.92% 1.98% 1.93% Income from mortgage loan prepayments and bond call premiums 0.05% 0.12% 0.21% 0.15% 0.15% Base interest spread on average general account values 1.57% 1.66% 1.71% 1.83% 1.78% Total asset fees to average separate account values 1.27% 1.27% 1.30% 1.37% 1.42% General operating expenses to average account values 0.47% 0.43% 0.37% 0.43% 0.37% Pre-tax operating earnings (loss) to average account values 0.44% 0.48% 0.48% 0.43% 0.56% Pre-tax operating earnings (loss) to operating revenues 13.9% 16.4% 16.4% 14.6% 20.5% Average allocated capital 1,805.6$ 1,747.0$ 1,671.0$ 1,499.3$ 1,420.5$ Return on average allocated capital 8.6% 10.7% 13.5% 12.3% 16.7% Note: The results of operations of NFS Bermuda are reflected as discontinued operations for 2005 and all prior years. ($ in millions) 2003 2004 2005 2006 2007 Individual Variable Annuities Balance, beginning of period 31,881.9$ 38,835.9$ 41,481.9$ 40,796.0$ 43,804.8$ Deposits 5,023.8 4,409.2 3,661.2 5,034.9 5,984.7 Withdrawals and surrenders (4,347.8) (4,964.4) (5,574.2) (6,133.3) (6,783.9) Net flows 676.0 (555.2) (1,913.0) (1,098.4) (799.2) Investment performance/interest credited to policyholder accounts 6,757.7 3,681.9 2,922.1 4,742.3 3,739.9 Policy charges (437.2) (515.0) (543.4) (576.2) (653.3) Benefits and other (42.5) 34.3 9.0 (58.9) 29.3 Acquisitions/(terminations), net - - (1,160.6) - - Balance, end of period 38,835.9$ 41,481.9$ 40,796.0$ 43,804.8$ 46,121.5$ Individual Fixed Annuities Balance, beginning of period 7,338.1$ 8,630.7$ 8,902.5$ 8,041.8$ 6,536.1$ Deposits 1,553.4 672.9 160.9 178.2 192.3 Withdrawals and surrenders (605.1) (753.6) (1,044.0) (1,893.8) (2,203.6) Net flows 948.3 (80.7) (883.1) (1,715.6) (2,011.3) Policyholder interest credited 364.8 362.7 327.7 284.4 207.3 Policy charges (8.1) (9.9) (11.4) (10.6) (7.3) Benefits and other (12.4) (0.3) (4.3) (63.9) (7.5) Acquisitions/(terminations), net - - (289.6) - - Balance, end of period 8,630.7$ 8,902.5$ 8,041.8$ 6,536.1$ 4,717.3$ Income Products 1,840.7$ 1,901.6$ 1,978.3$ 2,025.6$ 2,101.0$ Advisory Services Program 26.6$ 195.9$ 411.5$ 597.1$ 647.2$ Total individual investment account values 49,333.9$ 52,481.9$ 51,227.6$ 52,963.6$ 53,587.0$ Historical Earnings Trends Individual Investments Individual Investments Account Value Activity 31
  34. 34. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) 2003 2004 2005 2006 2007 Individual Variable Annuities BEST of AMERICA products 31,058.5$ 33,573.0$ 32,937.0$ 36,106.8$ 38,371.2$ Private label annuities 7,123.4 7,350.9 7,398.9 7,319.7 7,438.1 Nationwide Financial Network and other 654.0 558.0 460.1 378.3 312.2 Total individual variable annuities 38,835.9$ 41,481.9$ 40,796.0$ 43,804.8$ 46,121.5$ Individual Fixed Annuities 8,630.7$ 8,902.5$ 8,041.8$ 6,536.1$ 4,717.3$ Income Products 1,840.7$ 1,901.6$ 1,978.3$ 2,025.6$ 2,101.0$ Advisory Services Program 26.6$ 195.9$ 411.5$ 597.1$ 647.2$ Total individual investment account values 49,333.9$ 52,481.9$ 51,227.6$ 52,963.6$ 53,587.0$ ($ in millions) 2003 2004 2005 2006 2007 Individual Variable Annuities BEST of AMERICA products 4,066.8$ 3,674.3$ 3,135.5$ 4,390.9$ 5,169.0$ Private label annuities 659.3 449.0 346.6 356.6 434.6 Nationwide Financial Network and other 9.3 7.0 4.7 3.6 2.8 Total individual variable annuities 4,735.4$ 4,130.3$ 3,486.8$ 4,751.1$ 5,606.4$ Individual Fixed Annuities 1,824.5$ 858.8$ 194.4$ 186.5$ 156.3$ Income Products 153.2$ 168.4$ 196.7$ 230.7$ 216.7$ Advisory Services Program 25.7$ 181.0$ 231.3$ 222.8$ 147.2$ Total individual investment sales 6,738.8$ 5,338.5$ 4,109.2$ 5,391.1$ 6,126.6$ ($ in millions) 2003 2004 2005 2006 2007 Individual Variable Annuities Non-affiliated Independent broker/dealers 1,683.7$ 1,534.6$ 1,304.3$ 1,606.5$ 1,843.9$ Wirehouse and regional firms 1,086.4 991.6 821.9 1,171.8 1,558.0 Financial institutions 1,657.0 1,270.8 1,031.5 1,558.8 1,788.4 Life specialists 3.4 2.3 0.3 0.8 0.1 Affiliated Nationwide Financial Network 304.9 331.0 328.8 413.2 416.0 Total individual variable annuities 4,735.4$ 4,130.3$ 3,486.8$ 4,751.1$ 5,606.4$ Individual Fixed Annuities Non-affiliated Independent broker/dealers 48.7$ 17.1$ 7.0$ 13.4$ 20.7$ Wirehouse and regional firms 58.0 20.6 8.2 9.8 10.9 Financial institutions 1,628.7 774.3 129.4 72.4 55.0 Affiliated Nationwide Financial Network 89.1 46.8 49.8 90.9 69.7 Total individual fixed annuities 1,824.5$ 858.8$ 194.4$ 186.5$ 156.3$ Income Products Non-affiliated Independent broker/dealers 75.6$ 70.8$ 76.9$ 98.1$ 101.8$ Wirehouse and regional firms 44.9 52.2 63.4 84.7 68.4 Financial institutions 15.5 23.4 29.2 30.7 30.3 Affiliated Nationwide Financial Network 17.2 22.0 27.2 17.2 16.2 Total income products 153.2$ 168.4$ 196.7$ 230.7$ 216.7$ Advisory Services Program Non-affiliated Independent broker/dealers 21.2$ 160.0$ 205.3$ 180.5$ 98.6$ Financial institutions 3.0 8.9 8.1 15.5 11.6 Affiliated Nationwide Financial Network 1.5 12.1 17.9 26.8 37.0 Total advisory services program 25.7$ 181.0$ 231.3$ 222.8$ 147.2$ Total individual investment sales 6,738.8$ 5,338.5$ 4,109.2$ 5,391.1$ 6,126.6$ Individual Investments Sales by Channel Account Values by Product Individual Investments Individual Investments Sales by Product 32
  35. 35. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) 2003 2004 2005 2006 2007 Operating Revenues Asset fees 146.9$ 150.8$ 137.8$ 134.0$ 132.5$ Administrative fees 8.8 8.9 8.7 36.0 11.8 Surrender fees 5.7 12.1 8.2 4.5 3.0 Total policy charges 161.4 171.8 154.7 174.5 147.3 Net investment income 662.9 647.6 661.4 652.2 655.2 Other income 109.8 163.1 229.1 288.9 343.7 Total operating revenues 934.1 982.5 1,045.2 1,115.6 1,146.2 Benefits Interest credited to policyholder accounts 458.9 446.1 455.0 451.6 443.3 Expenses Commissions 92.7 111.3 133.3 151.6 171.0 General operating expenses 222.2 238.7 251.9 282.8 285.8 Deferral of policy acquisition costs (43.8) (41.5) (37.2) (36.8) (36.1) Subtotal 271.1 308.5 348.0 397.6 420.7 Amortization of policy acquisition costs 45.7 39.9 47.4 38.3 27.4 Amortization of value of business acquired 2.0 4.7 3.5 6.9 2.2 Total expenses 318.8 353.1 398.9 442.8 450.3 Pre-tax operating earnings 156.4$ 183.3$ 191.3$ 221.2$ 252.6$ Key Ratios/Statistics Average Account Values: General account 9,786.0$ 10,175.6$ 10,881.2$ 11,093.0$ 11,135.3$ Separate account 18,743.7 20,287.9 19,792.0 18,512.4 17,723.6 Non insurance assets 4,312.4 8,315.6 12,500.3 16,515.0 20,747.9 Administration only 17,184.0 21,995.8 24,289.9 25,904.7 29,844.5 Total average retirement plan account values 50,026.1$ 60,774.9$ 67,463.4$ 72,025.1$ 79,451.3$ Earned rate 6.77% 6.36% 6.08% 5.88% 5.88% Credited rate 4.69% 4.38% 4.18% 4.07% 3.98% Interest spread on average general account values 2.08% 1.98% 1.90% 1.81% 1.90% Income from mortgage loan prepayments and bond call premiums 0.21% 0.18% 0.20% 0.09% 0.11% Base interest spread on average general account values 1.87% 1.80% 1.70% 1.72% 1.79% Total asset fees to average separate account values 0.78% 0.74% 0.70% 0.72% 0.75% General operating expenses to average account values 0.44% 0.39% 0.37% 0.39% 0.36% Pre-tax operating earnings to average account values 0.31% 0.30% 0.28% 0.31% 0.32% Pre-tax operating earnings to operating revenues 16.7% 18.7% 18.3% 19.8% 22.0% Average allocated capital 689.2$ 724.4$ 773.9$ 815.1$ 770.4$ Return on average allocated capital 17.4% 18.9% 20.7% 19.8% 23.4% Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2007 and all prior years. ($ in millions) 2003 2004 2005 2006 2007 Private Sector Pension Plans Balance, beginning of period 18,170.0$ 22,789.2$ 26,503.1$ 29,758.8$ 32,645.3$ New deposits/sales 4,825.5 5,619.9 6,104.9 6,203.8 6,629.9 Participant withdrawals and surrenders (3,824.9) (4,308.0) (4,721.0) (5,266.4) (5,803.0) Net flows 1,000.6 1,311.9 1,383.9 937.4 826.9 Investment performance/interest credited to policyholder accounts 3,811.9 2,596.3 2,083.3 3,654.9 2,497.5 Policy charges and other (193.3) (194.3) (211.5) (226.9) (265.5) Net, case acquisitions/(terminations) - - - (1,478.9) (3,417.7) Balance, end of period 22,789.2$ 26,503.1$ 29,758.8$ 32,645.3$ 32,286.5$ Public Sector Pension Plans Balance, beginning of period 23,537.6$ 34,545.4$ 38,925.2$ 40,092.0$ 43,951.8$ New deposits/sales 3,178.9 3,637.1 3,881.6 4,018.4 4,268.1 Participant withdrawals and surrenders (1,878.3) (2,242.5) (2,638.9) (2,412.8) (3,057.8) Net flows 1,300.6 1,394.6 1,242.7 1,605.6 1,210.3 Investment performance/interest credited 4,781.0 2,869.6 2,577.1 3,802.9 3,648.4 Policy charges and other (57.6) (65.8) (69.4) (94.8) (82.3) Net, case acquisitions/(terminations) 4,983.8 181.4 (2,583.6) (1,453.9) (468.1) Balance, end of period 34,545.4$ 38,925.2$ 40,092.0$ 43,951.8$ 48,260.1$ Total retirement plan account values 57,334.6$ 65,428.3$ 69,850.8$ 76,597.1$ 80,546.6$ Historical Earnings Trends Retirement Plans Retirement Plans Account Value Activity 33
  36. 36. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) 2003 2004 2005 2006 2007 Private Sector Pension Plans BEST of AMERICA annuity products 9,818.1$ 8,845.8$ 7,791.9$ 7,557.1$ 7,178.6$ BEST of AMERICA trust products 6,212.3 10,558.4 14,479.5 18,834.1 21,814.6 Subtotal BEST of AMERICA 16,030.4 19,404.2 22,271.4 26,391.2 28,993.2 Nationwide Financial Network products 1,584.1 1,483.7 1,378.4 1,268.2 1,014.5 Nationwide employee and agent benefit plans 4,530.2 4,985.3 5,504.2 4,435.6 1,795.4 Other 644.5 629.9 604.8 550.3 483.4 Total private sector pension plans 22,789.2$ 26,503.1$ 29,758.8$ 32,645.3$ 32,286.5$ Public Sector Pension Plans IRC Section 457 annuities 13,916.9$ 14,889.2$ 15,790.2$ 15,979.5$ 17,096.3$ Administration only agreements 20,628.5 24,036.0 24,301.8 27,972.3 31,163.8 Total public sector pension plans 34,545.4$ 38,925.2$ 40,092.0$ 43,951.8$ 48,260.1$ Total retirement plan account values 57,334.6$ 65,428.3$ 69,850.8$ 76,597.1$ 80,546.6$ ($ in millions) 2003 2004 2005 2006 2007 Private Sector Pension Plans BEST of AMERICA annuity products 2,034.9$ 1,679.7$ 1,371.1$ 1,230.2$ 1,064.7$ BEST of AMERICA trust products 2,110.2 3,232.0 3,974.9 4,504.0 5,126.3 Subtotal BEST of AMERICA 4,145.1 4,911.7 5,346.0 5,734.2 6,191.0 Nationwide Financial Network products 366.4 335.8 205.9 188.2 149.4 Other 31.0 28.1 75.8 69.4 82.7 Total private sector pension plans 4,542.5$ 5,275.6$ 5,627.7$ 5,991.8$ 6,423.1$ Public Sector Pension Plans IRC Section 457 annuities 1,442.4$ 1,514.2$ 1,544.8$ 1,533.3$ 1,548.5$ Administration only agreements 1,735.0 2,122.9 2,336.9 2,484.9 2,719.6 Total public sector pension plans 3,177.4$ 3,637.1$ 3,881.7$ 4,018.2$ 4,268.1$ Total retirement plan sales 7,719.9$ 8,912.7$ 9,509.4$ 10,010.0$ 10,691.2$ ($ in millions) 2003 2004 2005 2006 2007 Private Sector Pension Plans Non-affiliated Independent broker/dealers 2,534.6$ 3,154.4$ 3,412.0$ 3,594.0$ 4,011.0$ Wirehouse and regional firms 742.2 863.7 953.7 1,104.7 1,162.0 Financial institutions 411.4 493.3 551.2 559.8 546.9 Pension plan administrators 574.8 476.1 469.0 532.8 507.7 Affiliated Nationwide Retirement Solutions 32.5 28.8 33.0 32.0 31.8 Nationwide Financial Network 247.0 259.3 208.8 168.5 163.7 Total private sector pension plans 4,542.5$ 5,275.6$ 5,627.7$ 5,991.8$ 6,423.1$ Public Sector Pension Plans Nationwide Retirement Solutions 3,177.4$ 3,637.1$ 3,881.7$ 4,018.2$ 4,268.1$ Total retirement plan sales 7,719.9$ 8,912.7$ 9,509.4$ 10,010.0$ 10,691.2$ Sales by Channel Account Values by Product Retirement Plans Retirement Plans Sales by Product Retirement Plans 34
  37. 37. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) 2003 2004 2005 2006 2007 Operating Revenues Asset fees 29.4$ 34.4$ 40.2$ 45.8$ 53.1$ Administrative fees 86.8 93.3 90.0 82.7 80.5 Surrender fees 32.5 30.0 27.9 22.6 19.9 Cost of insurance 371.3 379.7 388.5 402.0 420.5 Total policy charges 520.0 537.4 546.6 553.1 574.0 Net Investment Income General account assets 486.1 487.2 492.7 484.5 489.4 Charge for invested capital (23.5) (19.3) (17.6) (16.4) (17.1) Total net investment income 462.6 467.9 475.1 468.1 472.3 Premiums 332.8 311.9 297.0 299.0 299.4 Other income 1.7 1.0 2.4 0.8 4.0 Total operating revenues 1,317.1 1,318.2 1,321.1 1,321.0 1,349.7 Benefits Interest credited to policyholder accounts 193.3 189.4 190.7 191.7 192.0 Life benefits 421.2 409.4 419.5 444.4 449.4 Policyholder dividends 105.7 101.4 107.3 90.7 83.1 Total benefits 720.2 700.2 717.5 726.8 724.5 Expenses Commissions 137.2 148.9 140.2 137.8 140.8 General operating expenses 275.1 271.4 261.4 262.2 248.8 Deferral of policy acquisition costs (199.5) (204.1) (201.1) (200.8) (196.6) Subtotal 212.8 216.2 200.5 199.2 193.0 Amortization of policy acquisition costs 120.6 114.4 102.7 81.6 93.1 Amortization of value of business acquired 38.0 40.1 34.3 32.6 39.3 Total expenses 371.4 370.7 337.5 313.4 325.4 Pre-tax operating earnings 225.5$ 247.3$ 266.1$ 280.8$ 299.8$ Key Ratios/Statistics General operating expenses to operating revenues 20.9% 20.6% 19.8% 19.8% 18.4% Pre-tax operating earnings to operating revenues 17.1% 18.8% 20.1% 21.3% 22.2% Average allocated capital 1,722.4$ 1,731.1$ 1,788.9$ 1,849.2$ 1,965.2$ Return on average allocated capital 8.8% 9.7% 10.5% 10.5% 10.6% Note: The results of operations of TBG Financial are reflected as discontinued operations for 2007 and all prior years. In addition, 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. ($ in millions) 2003 2004 2005 2006 2007 Individual investment life 4,443.8$ 4,962.1$ 5,329.5$ 5,842.5$ 6,298.2$ Corporate investment life - excluding experience rated BOLI 4,401.5 5,063.0 5,613.8 6,600.9 7,192.9 Corporate investment life - experience rated BOLI - 381.1 1,130.8 1,913.5 2,085.9 Subtotal investment life 8,845.3 10,406.2 12,074.1 14,356.9 15,577.0 Traditional life 4,155.0 4,278.9 4,225.2 4,170.9 4,156.4 Universal life 896.8 997.9 1,089.3 1,159.0 1,257.1 Subtotal fixed life 5,051.8 5,276.8 5,314.5 5,329.9 5,413.5 Total individual protection policy reserves 13,897.1$ 15,683.0$ 17,388.6$ 19,686.8$ 20,990.5$ ($ in millions) 2003 2004 2005 2006 2007 Individual investment life 56,478.4$ 56,836.7$ 57,021.7$ 57,536.7$ 57,772.0$ Corporate investment life - excluding experience rated BOLI 9,263.3 9,774.3 10,305.0 11,451.7 11,980.3 Corporate investment life - experience rated BOLI - 1,129.8 13,330.5 13,312.7 13,311.2 Subtotal investment life 65,741.7 67,740.8 80,657.2 82,301.1 83,063.5 Traditional life 33,671.2 32,979.4 36,589.3 41,061.3 43,970.7 Universal life 8,407.4 8,505.5 9,114.6 9,950.3 10,484.5 Subtotal fixed life 42,078.6 41,484.9 45,703.9 51,011.6 54,455.2 Total individual protection insurance in force 107,820.3$ 109,225.7$ 126,361.1$ 133,312.7$ 137,518.7$ Individual Protection Insurance In Force Historical Earnings Trends Individual Protection Individual Protection Policy Reserves 35
  38. 38. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) 2003 2004 2005 2006 2007 BEST of AMERICA Variable Life Series First year sales 131.1$ 131.7$ 121.9$ 138.0$ 141.9$ Renewal sales 304.3 307.9 304.1 299.3 307.0 Total BEST of AMERICA variable life series 435.4 439.6 426.0 437.3 448.9 Nationwide Financial Network Variable Life Products First year sales 35.1 32.0 24.0 21.0 6.7 Renewal sales 229.1 223.8 205.0 180.7 183.7 Total Nationwide Financial Network variable life products 264.2 255.8 229.0 201.7 190.4 Corporate Owned Life Insurance (COLI) First year sales 173.2 157.0 227.8 396.6 181.9 Renewal sales 371.8 407.5 429.7 409.3 370.8 Total COLI 545.0 564.5 657.5 805.9 552.7 Traditional/Universal life First year sales 77.6 114.6 111.4 102.6 120.9 Renewal sales 400.3 392.3 401.3 414.5 433.5 Total traditional/universal life 477.9 506.9 512.7 517.1 554.4 Total individual protection sales 1,722.5$ 1,766.8$ 1,825.2$ 1,962.0$ 1,746.4$ ($ in millions) 2003 2004 2005 2006 2007 Non-affiliated Independent broker/dealers 251.2$ 286.3$ 260.5$ 265.7$ 278.7$ Wirehouse and regional firms 63.5 64.0 65.3 62.6 79.7 Financial institutions 42.6 47.8 58.6 57.9 69.0 Life specialists 384.1 380.5 382.1 579.8 329.5 Affiliated Mullin TBG 160.9 184.2 275.4 226.1 223.2 Nationwide Financial Network 820.2 804.0 783.3 769.9 766.3 Total individual protection sales 1,722.5$ 1,766.8$ 1,825.2$ 1,962.0$ 1,746.4$ Sales by Channel Sales by Product Individual Protection Individual Protection 36
  39. 39. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2008 ($ in millions) 2003 2004 2005 2006 2007 Operating Revenues Asset fees 29.4$ 34.4$ 40.2$ 45.8$ 53.1$ Administrative fees 75.6 79.4 75.7 67.7 58.3 Surrender fees 31.7 29.2 26.3 20.2 17.3 Cost of insurance 331.2 334.9 339.0 344.3 353.1 Total policy charges 467.9 477.9 481.2 478.0 481.8 Net Investment Income General account assets 152.7 150.2 157.2 150.8 152.4 Charge for invested capital (23.5) (19.3) (17.6) (16.4) (17.1) Total net investment income 129.2 130.9 139.6 134.4 135.3 Other income 1.7 1.0 2.4 0.8 4.0 Total operating revenues 598.8 609.8 623.2 613.2 621.1 Benefits Interest credited to policyholder accounts 120.7 117.0 116.3 112.4 113.5 Life benefits 118.2 128.1 128.4 141.8 144.3 Total benefits 238.9 245.1 244.7 254.2 257.8 Expenses Commissions 108.6 106.4 105.5 97.4 94.4 General operating expenses 161.1 150.4 133.8 135.0 127.5 Deferral of policy acquisition costs (161.7) (149.1) (142.8) (133.1) (130.4) Subtotal 108.0 107.7 96.5 99.3 91.5 Amortization of policy acquisition costs 91.7 85.1 85.7 80.2 57.2 Amortization of value of business acquired 27.4 22.5 25.2 23.5 30.3 Total expenses 227.1 215.3 207.4 203.0 179.0 Pre-tax operating earnings 132.8$ 149.4$ 171.1$ 156.0$ 184.3$ Key Ratios/Statistics Cost of insurance per $1,000 of average net amount at risk (1) 5.84$ 5.88$ 6.01$ 6.10$ 6.27$ Life benefits per $1,000 of average net amount at risk (1) 2.08$ 2.25$ 2.28$ 2.51$ 2.56$ General operating expenses to operating revenues 26.9% 24.7% 21.5% 22.0% 20.5% Pre-tax operating earnings to operating revenues 22.2% 24.5% 27.5% 25.4% 29.7% Average allocated capital 1,143.4$ 1,191.5$ 1,246.1$ 1,273.2$ 1,303.2$ Return on average allocated capital 8.0% 8.8% 10.2% 8.9% 10.3% (1) Excludes experience rated BOLI corporate investment life. Note: The results of operations of TBG Financial are reflected as discontinued operations for 2007 and all prior years. In addition, 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. ($ in millions) 2003 2004 2005 2006 2007 Balance, beginning of period 7,167.6$ 8,845.3$ 10,406.2$ 12,074.1$ 14,356.9$ Deposits 1,242.4 1,642.7 2,153.8 2,208.6 1,265.6 Withdrawals and surrenders (464.4) (467.4) (780.8) (576.7) (639.7) Net flows 778.0 1,175.3 1,373.0 1,631.9 625.9 Investment performance/interest credited to policyholder accounts 1,357.0 842.8 731.6 1,290.5 1,064.1 Policy charges (468.0) (478.0) (481.4) (477.9) (481.1) Benefits and other 10.7 20.8 46.2 (161.7) 11.2 Acquired business - - (1.5) - - Balance, end of period 8,845.3$ 10,406.2$ 12,074.1$ 14,356.9$ 15,577.0$ Historical Earnings Trends Investment Life Investment Life Policy Reserve Activity 37
  40. 40. Nationwide Financial Services, Inc. Statistical Supplement Maarch 31, 2008 ($ in millions) 2003 2004 2005 2006 2007 Operating Revenues Administrative fees 11.2$ 13.9$ 14.3$ 15.0$ 22.2$ Surrender fees 0.8 0.8 1.6 2.4 2.6 Cost of insurance 40.1 44.8 49.5 57.7 67.4 Total policy charges 52.1 59.5 65.4 75.1 92.2 Net investment income 333.4 337.0 335.5 333.7 337.0 Premiums 332.8 311.9 297.0 299.0 299.4 Total operating revenues 718.3 708.4 697.9 707.8 728.6 Benefits Interest credited to policyholder accounts 72.6 72.4 74.4 79.3 78.5 Life benefits 303.0 281.3 291.1 302.6 305.1 Policyholder dividends 105.7 101.4 107.3 90.7 83.1 Total benefits 481.3 455.1 472.8 472.6 466.7 Expenses Commissions 28.6 42.5 34.7 40.4 46.4 General operating expenses 114.0 121.0 127.6 127.2 121.3 Deferral of policy acquisition costs (37.8) (55.0) (58.3) (67.7) (66.2) Subtotal 104.8 108.5 104.0 99.9 101.5 Amortization of policy acquisition costs 28.9 29.3 17.0 1.4 35.9 Amortization of value of business acquired 10.6 17.6 9.1 9.1 9.0 Total expenses 144.3 155.4 130.1 110.4 146.4 Pre-tax operating earnings 92.7$ 97.9$ 95.0$ 124.8$ 115.5$ Key Ratios/Statistics Life benefits per $1,000 of average life insurance in force 7.15$ 6.77$ 6.70$ 6.25$ 5.87$ General operating expenses to operating revenues 15.9% 17.1% 18.3% 18.0% 16.6% Pre-tax operating earnings to operating revenues 12.9% 13.8% 13.6% 17.6% 15.9% Average allocated capital 579.0$ 539.6$ 542.9$ 576.1$ 662.0$ Return on average allocated capital 10.4% 11.8% 11.4% 14.1% 11.3% ($ in millions) 2003 2004 2005 2006 2007 Traditional/Universal Life Balance, beginning of period 4,991.3$ 5,051.8$ 5,276.8$ 5,314.5$ 5,329.9$ Deposits 441.0 457.6 448.6 455.9 492.9 Withdrawals and surrenders (188.9) (196.9) (214.0) (214.5) (236.9) Net flows 252.1 260.7 234.6 241.4 256.0 Interest credited to policyholder accounts 72.6 72.4 74.4 83.9 80.7 Policy charges (52.1) (59.5) (65.4) (74.8) (93.4) Benefits and other (212.1) (48.6) (205.9) (235.1) (159.7) Balance, end of period 5,051.8$ 5,276.8$ 5,314.5$ 5,329.9$ 5,413.5$ Fixed Life Fixed Life Policy Reserve Activity Historical Earnings Trends 38
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