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2007 Nationwide Financial® Statistical Supplement
SECOND QUARTER
Nationwide Financial Services, Inc.
Statistical Supplement
June 30, 2007
This Page Intentionally Left Blank.
Nationwide Financial Services, Inc.
Statistical Supplement
Table of Contents
Page
Quarterly Financial Highlights 1-2
NFS F...
Nationwide Financial Services, Inc.
Statistical Supplement
June 30, 2007
($ in millions except for per share data) Q2'06 Q...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions except for per share data) Q2'06 Q...
Nationwide Financial Services, Inc.
Statistical Supplement
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Earnings Impact of NFG Acquisition and Change in ...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07
Ope...
Nationwide Financial Services, Inc.
Statistical Supplement
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Individual Retirement Individual Corporate
($ in ...
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Individual Retirement Individual Corporate
($ in ...
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Nationwide Financial Services, Inc.
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($ in millions, except per share data) Q2'06 Q3'0...
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Individual Investments
Quarterly Earnings Trends
...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07
Ind...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07
Ope...
Nationwide Financial Services, Inc.
Statistical Supplement
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Retirement Plans
Account Values by Product
($ in ...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07
Ope...
Nationwide Financial Services, Inc.
Statistical Supplement
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Individual Protection
Sales by Product
($ in mill...
Nationwide Financial Services, Inc.
Statistical Supplement
June 30, 2007
Quarterly Earnings Trends
($ in millions) Q2'06 Q...
Nationwide Financial Services, Inc.
Statistical Supplement
June 30, 2007
($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07
Ope...
Nationwide Financial Services, Inc.
Statistical Supplement
June 30, 2007
($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07
Ope...
Nationwide Financial Services, Inc.
Statistical Supplement
June 30, 2007
($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07
Ind...
Nationwide Financial Services, Inc.
Statistical Supplement
June 30, 2007
Gross Gross
Amortized Unrealized Unrealized Estim...
Nationwide Financial Services, Inc.
Statistical Supplement
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Amortized Fair Amortized Fair
($ in millions) Cos...
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Statistical Supplement
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Individual Retirement Individual Corporate
($ in ...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions)
Account DAC Annualized Account DA...
Nationwide Financial Services, Inc.
Statistical Supplement
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Individual Retirement Individual Corporate
($ in ...
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Statistical Supplement
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($ in millions)
Account Account
GMDB Benefit Type...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions)
Account Account
GMAB Benefit Type...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07
Bal...
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Statistical Supplement
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($ in millions except for per share data) 2002 20...
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($ in millions except for per share data) 2002 20...
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Nationwide Financial Services, Inc.
Statistical Supplement
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Earnings Impact of NFG Acquisition and Change in ...
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Statistical Supplement
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($ in millions) 2002 2003 2004 2005 2006
Operatin...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions, except per share data) 2002 2003 ...
Nationwide Financial Services, Inc.
Statistical Supplement
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($ in millions) 2002 2003 2004 2005 2006
Operatin...
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($ in millions) 2002 2003 2004 2005 2006
Individu...
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($ in millions) 2002 2003 2004 2005 2006
Operatin...
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($ in millions) 2002 2003 2004 2005 2006
Private ...
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
nationwide 2Q07 Statistical Supplement
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nationwide 2Q07 Statistical Supplement

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nationwide 2Q07 Statistical Supplement

  1. 1. 2007 Nationwide Financial® Statistical Supplement SECOND QUARTER
  2. 2. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 This Page Intentionally Left Blank.
  3. 3. Nationwide Financial Services, Inc. Statistical Supplement Table of Contents Page Quarterly Financial Highlights 1-2 NFS Financial Reporting Structure 2 Quarterly Restatement of Earnings 3 Quarterly Consolidated Income Statements 4 Combining Income Statements For the three months ended June 30, 2007 5 For the three months ended June 30, 2006 6 Quarterly Consolidated Balance Sheets 8 Individual Investments Segment Quarterly earnings trends 9 Account value activity 9 Account values by product 10 Sales by product 10 Sales by channel 10 Retirement Plans Segment Quarterly earnings trends 11 Account value activity 11 Account values by product 12 Sales by product 12 Sales by channel 12 Individual Protection Segment Quarterly earnings trends 13 Policy reserves 13 Insurance in force 13 Sales by product 14 Sales by channel 14 Investment life quarterly earnings trends 15 Investment life policy reserve activity 15 Fixed life quarterly earnings trends 16 Fixed life policy reserve activity 16 Corporate and Other Segment Quarterly earnings trends 17 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 25 Individual variable annuity guaranteed minimum death benefit reserve activity 26 Individual variable annuity guaranteed minimum accumulation benefit embedded derivative activity 26 Individual fixed annuity and fixed option of variable annuity summary of crediting rate detail 26 Historical Data 27-42 Glossary 43-46 Shareholder Information 47 June 30, 2007
  4. 4. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions except for per share data) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Operating Revenues Individual investments 377.7$ 386.9$ 380.6$ 371.2$ 368.9$ Retirement plans 287.0 279.8 279.6 281.1 283.3 Individual protection 334.3 339.0 335.3 343.2 336.6 Corporate and other 147.2 145.8 164.4 182.0 188.5 Total operating revenues 1,146.2$ 1,151.5$ 1,159.9$ 1,177.5$ 1,177.3$ Net realized gains (losses) on investments, hedging instruments and hedged items(1) (11.0) 5.5 13.0 (13.5) (4.2) Total revenues 1,135.2$ 1,157.0$ 1,172.9$ 1,164.0$ 1,173.1$ Pre-tax Operating Earnings Individual investments 57.0$ 65.0$ 45.9$ 57.2$ 109.4$ Retirement plans 66.2 55.4 46.2 52.2 64.9 Individual protection 61.1 71.4 78.9 83.6 79.4 Corporate and other 17.2 17.3 19.5 32.3 26.1 Pre-tax operating earnings 201.5$ 209.1$ 190.5$ 225.3$ 279.8$ Federal income tax expense (67.4) 52.0 41.4 49.8 81.3 Net operating earnings 268.9$ 157.1$ 149.1$ 175.5$ 198.5$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes(1) (7.2) 3.6 8.5 (8.8) (2.7) Adjustment to amortization related to net realized gains (losses), net of taxes 1.0 1.2 0.8 1.7 1.5 Discontinued operations, net of taxes - - - 45.9 - Cumulative effect of adoption of accounting principles, net of taxes - - - (6.0) - Net income 262.7$ 161.9$ 158.4$ 208.3$ 197.3$ Per Common Diluted Share Net operating earnings 1.79$ 1.05$ 1.00$ 1.19$ 1.38$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes(1) (0.05) 0.02 0.05 (0.05) (0.02) Adjustment to amortization related to net realized gains (losses), net of taxes 0.01 0.01 0.01 0.01 0.01 Discontinued operations, net of taxes - - - 0.31 - Cumulative effect of adoption of accounting principles, net of taxes - - - (0.04) - Net income 1.75$ 1.08$ 1.06$ 1.42$ 1.37$ Sales by Channel Non-affiliated Independent broker/dealers 1,380.7$ 1,363.9$ 1,525.8$ 1,708.7$ 1,510.5$ Wirehouse and regional firms 555.6 596.4 691.5 679.7 680.7 Financial institutions 580.7 570.1 620.6 590.5 642.8 Pension plan administrators 139.6 124.8 132.5 175.8 98.9 Life specialists 84.0 46.3 277.7 88.3 91.1 Affiliated Nationwide Retirement Solutions 1,001.2 1,031.3 989.2 1,082.2 1,079.6 Nationwide agents 203.1 186.6 201.7 196.1 195.8 Nationwide Financial Network 171.0 168.3 173.7 158.3 174.2 TBG Financial 62.7 21.4 31.6 115.0 62.5 Total 4,178.6$ 4,109.1$ 4,644.3$ 4,794.6$ 4,536.1$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Note: 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 2006 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
  5. 5. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions except for per share data) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Balance Sheet Data Total assets 113,292.4$ 114,962.0$ 119,531.1$ 120,469.7$ 121,390.3$ Customer funds managed and administered 146,043.4$ 148,759.1$ 156,909.9$ 158,898.3$ 164,261.0$ Shareholders' equity Including accumulated other comprehensive income (AOCI) (1) 5,289.8$ 5,686.9$ 5,622.7$ 5,807.7$ 5,453.2$ AOCI (202.0) 47.8 31.9 83.6 (69.1) Excluding AOCI 5,491.8$ 5,639.1$ 5,590.8$ 5,724.1$ 5,522.3$ Net operating return on average equity excluding AOCI 20.0% 11.3% 10.6% 12.4% 14.1% Adjusted net operating return on average equity excluding AOCI (2) 11.7% 11.3% 10.6% 12.4% 14.1% Statutory capital and surplus 3,437.4$ 3,504.2$ 3,336.6$ 3,010.3$ 3,182.6$ Stock Data Closing Price 44.08$ 48.10$ 54.20$ 53.86$ 63.22$ Weighted average common shares outstanding Basic 149.2 149.5 148.7 145.9 143.2 Diluted 149.9 150.3 149.8 147.1 144.3 Book value per share Including AOCI 35.43$ 37.99$ 38.51$ 39.94$ 38.08$ Excluding AOCI 36.78$ 37.67$ 38.29$ 39.37$ 38.56$ (1) Includes changes in fair value of certain investments and derivatives under SFAS 115 and SFAS 133. (2) 2Q 2006 return adjusted for $113.1 million of released tax reserves and associated tax-related adjustments relating to prior tax years. Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. NFS Operating Segment Reporting Structure Quarterly Financial Highlights NATIONWIDE FINANCIAL SERVICES, INC. Individual Investments Retirement Plans Individual Protection Corporate and Other Variable Annuities Fixed Annuities Income Products Advisory Services Public Sector - 457 Private Sector – 401(k) Fixed Life Investment Life Nationwide Bank Medium Term Notes Structured Products Universal Whole Term Variable Universal COLI Nationwide Funds Group Corporate Other 2
  6. 6. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Earnings Impact of NFG Acquisition and Change in Accounting Principle ($ in millions, except per share data) Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Previously Reported Pre-Tax Operating Earnings Individual Investments 56.4$ 52.5$ 60.4$ 41.5$ 51.0$ Retirement Plans 53.6 64.4 53.6 44.9 50.1 Individual Protection 64.9 60.5 71.0 78.4 82.9 Corporate and Other 11.6 16.6 21.7 17.8 33.6 Total 186.5 194.0 206.7 182.6 217.6 Impact of Acquisition of Nationwide Funds Group (before tax)* Individual Investments (1.2) 4.5 4.6 4.4 6.2 Retirement Plans (0.2) 1.8 1.8 1.3 2.1 Individual Protection (0.7) 0.6 0.4 0.5 0.7 Corporate and Other 0.4 1.1 1.0 (0.3) 0.6 Total (1.7) 8.0 7.8 5.9 9.6 Impact of Change in Accounting Principle* Corporate and Other (0.3) (0.5) (5.4) 2.0 (1.9) Currently Reported Pre-Tax Operating Earnings Individual Investments 55.2 57.0 65.0 45.9 57.2 Retirement Plans 53.4 66.2 55.4 46.2 52.2 Individual Protection 64.2 61.1 71.4 78.9 83.6 Corporate and Other 11.7 17.2 17.3 19.5 32.3 Total 184.5$ 201.5$ 209.1$ 190.5$ 225.3$ Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Previously Reported Operating Margin Individual Investments (pre-tax operating earnings to average account values) 0.44% 0.41% 0.47% 0.32% 0.38% Retirement Plans (pre-tax operating earnings to average account values) 0.30% 0.36% 0.30% 0.24% 0.26% Individual Protection (pre-tax operating earnings to operating revenues) 19.2% 18.1% 21.0% 23.4% 24.2% Previously Reported Return on Average Allocated Capital (Excluding AOCI) Individual Investments 11.9% 11.8% 13.1% 10.3% 13.6% Retirement Plans 19.4% 23.0% 18.9% 16.7% 19.0% Individual Protection 9.8% 9.2% 10.4% 11.6% 12.1% Previously Reported Consolidated Financial Highlights Net operating return on average equity excluding AOCI 11.0% 19.8% 11.2% 10.5% 12.2% Net operating earnings per average diluted share $ 0.94 $ 1.76 $ 1.03 $ 0.97 $ 1.16 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Currently Reported Operating Margin Individual Investments (pre-tax operating earnings to average account values) 0.43% 0.44% 0.51% 0.35% 0.43% Retirement Plans (pre-tax operating earnings to average account values) 0.30% 0.37% 0.31% 0.25% 0.27% Individual Protection (pre-tax operating earnings to operating revenues) 19.0% 18.3% 21.1% 23.5% 24.4% Currently Reported Return on Average Allocated Capital (Excluding AOCI) Individual Investments 11.7% 12.5% 13.9% 11.1% 14.7% Retirement Plans 19.3% 23.5% 19.4% 17.1% 19.6% Individual Protection 9.7% 9.3% 10.5% 11.7% 12.1% Currently Reported Consolidated Financial Highlights Net operating return on average equity excluding AOCI 10.9% 20.0% 11.3% 10.6% 12.4% Net operating earnings per average diluted share $ 0.94 $ 1.79 $ 1.05 $ 1.00 $ 1.19 * On April 30, 2007, the Company completed the purchase of NWD Investment Management, now known as Nationwide Funds Group (NFG). The Company has presented its historical financial statements for all periods presented to reflect 1) the combined results of NFS and NFG as though the companies were combined for all periods presented and 2) the change in accounting principle related to the accrual for legal costs associated with litigation defense and regulatory investigations. Historically, the Company accrued for these costs by estimating the ultimate costs of such activity. Beginning second quarter 2007, the Company’s accrual for such legal expenses includes only the amount for services that have been provided but not yet paid. The Company believes the newly adopted accounting principle is preferable because it more accurately reflects expenses in the periods in which they are incurred. The Company continues to estimate and accrue amounts expected to be paid for litigation and regulatory investigation loss contingencies. 3
  7. 7. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Operating Revenues Asset fees 170.0$ 169.2$ 183.1$ 184.2$ 193.0$ Cost of insurance charges 100.2 100.6 102.3 104.1 103.7 Administrative fees 47.2 36.2 25.5 29.0 28.0 Surrender fees 20.2 21.6 18.9 18.6 18.4 Total policy charges 337.6 327.6 329.8 335.9 343.1 Traditional life and immediate annuity premiums 109.7 110.5 113.5 110.4 104.9 Net investment income 572.2 578.2 571.6 580.4 577.8 Operating realized gains (losses) 1.1 4.1 3.1 2.1 1.5 Other income 125.6 131.1 141.9 148.7 150.0 Total operating revenues 1,146.2 1,151.5 1,159.9 1,177.5 1,177.3 Benefits Interest credited 345.7 348.2 345.5 342.1 337.0 Life insurance and annuity benefits 156.4 163.8 170.5 153.6 186.1 Policyholder dividends 24.5 24.6 21.4 21.3 20.0 Total benefits 526.6 536.6 537.4 517.0 543.1 Expenses Commissions 160.4 160.7 174.2 168.7 181.4 General operating expenses 240.0 234.3 280.7 240.8 257.0 Debt extinguishment costs - - - - 10.2 Deferral of policy acquisition costs (147.4) (138.8) (167.1) (145.1) (158.0) Subtotal 253.0 256.2 287.8 264.4 290.6 Amortization of policy acquisition costs 127.5 109.8 109.6 135.7 20.8 Amortization of value of business acquired 12.5 14.5 7.4 10.3 15.4 Interest expense on debt 25.1 25.3 27.2 24.8 27.6 Total expenses 418.1 405.8 432.0 435.2 354.4 Pre-tax operating earnings 201.5$ 209.1$ 190.5$ 225.3$ 279.8$ Federal income tax expense (67.4) 52.0 41.4 49.8 81.3 Net operating earnings 268.9$ 157.1$ 149.1$ 175.5$ 198.5$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 11.0 10.2 31.2 14.9 12.4 Realized losses on sales, net of hedging (19.1) (4.4) (12.5) (14.8) (11.6) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (2.5) (2.9) (5.0) (8.6) (4.1) Credit default swaps (0.1) (0.1) (0.5) (0.2) (1.0) Derivatives, excluding hedging gains and losses on sales and credit default swaps 3.4 0.3 (4.6) 0.4 1.5 Amounts credited to policyholder dividend obligation (0.7) 0.5 0.1 (0.7) (0.1) Adjustment to VOBA amortization 0.8 - (0.2) 0.2 0.2 Subtotal (7.2) 3.6 8.5 (8.8) (2.7) Adjustment to amortization related to net realized gains (losses), net of taxes 1.0 1.2 0.8 1.7 1.5 Discontinued operations, net of taxes - - - 45.9 - Cumulative effect of adoption of accounting principles, net of taxes - - - (6.0) - Net income 262.7$ 161.9$ 158.4$ 208.3$ 197.3$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. Quarterly Consolidated Income Statements 4
  8. 8. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees 146.8$ 33.1$ 13.1$ -$ 193.0$ Cost of insurance charges - - 103.7 - 103.7 Administrative fees 6.2 2.6 19.2 - 28.0 Surrender fees 12.6 1.1 4.7 - 18.4 Total policy charges 165.6 36.8 140.7 - 343.1 Traditional life and immediate annuity premiums 30.2 - 74.7 - 104.9 Net investment income 167.0 161.9 115.8 133.1 577.8 Operating realized gains (losses) - - - 1.5 1.5 Other income 6.1 84.6 5.4 53.9 150.0 Total operating revenues 368.9 283.3 336.6 188.5 1,177.3 Benefits Interest credited 114.4 111.0 47.6 64.0 337.0 Life insurance and annuity benefits 74.7 - 111.4 - 186.1 Policyholder dividends - - 20.0 - 20.0 Total benefits 189.1 111.0 179.0 64.0 543.1 Expenses Commissions 100.0 42.2 32.6 6.6 181.4 General operating expenses 57.3 74.8 70.9 54.0 257.0 Debt extinguishment costs - - - 10.2 10.2 Deferral of policy acquisition costs (100.9) (9.3) (47.8) - (158.0) Subtotal 56.4 107.7 55.7 70.8 290.6 Amortization of policy acquisition costs 12.7 (0.9) 9.0 - 20.8 Amortization of value of business acquired 1.3 0.6 13.4 0.1 15.4 Interest expense on debt - - 0.1 27.5 27.6 Total expenses 70.4 107.4 78.2 98.4 354.4 Pre-tax operating earnings 109.4$ 64.9$ 79.4$ 26.1$ 279.8$ Federal income tax expense 81.3 Net operating earnings 198.5$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) (2.7) Adjustment to amortization related to net realized gains (losses), net of taxes 1.5 Net income 197.3$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Administrative fees - - (1.7) - (1.7) Life insurance and annuity benefits (23.5) - - - (23.5) Amortization of policy acquisition costs 84.9 10.5 16.4 - 111.8 Amortization of value of business acquired - - (5.1) - (5.1) Combined pre-tax impact of DAC items 61.4$ 10.5$ 9.6$ -$ 81.5$ Significant Items Impacting Deferred Acquisition Costs and Related Balances As part of its regular quarterly analysis of deferred acquistion costs (DAC), the Company completed a comprehensive review of assumptions used to project DAC and other related items. Primarily as a result of sustained financial market performance that has outperformed the long-term assumptions in the Company’s models, the Company unlocked its assumptions for all investment products and variable universal life insurance products. Also during the second quarter of 2007, the Company added a new feature to its existing guaranteed minimum withdrawal benefit rider, Lifetime Income (L.INC). This new feature results in a substantial change in the existing contracts and as a result existing DAC and other related balances were eliminated. For the three months ended June 30, 2007 Combining Income Statement 5
  9. 9. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees 125.0$ 33.6$ 11.4$ -$ 170.0$ Cost of insurance charges - - 100.2 - 100.2 Administrative fees 4.9 22.6 19.7 - 47.2 Surrender fees 14.2 1.1 4.9 - 20.2 Total policy charges 144.1 57.3 136.2 - 337.6 Traditional life and immediate annuity premiums 34.6 - 75.1 - 109.7 Net investment income 193.9 159.8 116.5 102.0 572.2 Operating realized gains (losses) - - - 1.1 1.1 Other income 5.1 69.9 6.5 44.1 125.6 Total operating revenues 377.7 287.0 334.3 147.2 1,146.2 Benefits Interest credited 132.7 113.0 49.5 50.5 345.7 Life insurance and annuity benefits 49.6 - 106.8 - 156.4 Policyholder dividends - - 24.5 - 24.5 Total benefits 182.3 113.0 180.8 50.5 526.6 Expenses Commissions 86.2 36.6 32.3 5.3 160.4 General operating expenses 56.0 68.5 66.3 49.2 240.0 Debt extinguishment costs - - - - - Deferral of policy acquisition costs (90.8) (9.4) (47.2) - (147.4) Subtotal 51.4 95.7 51.4 54.5 253.0 Amortization of policy acquisition costs 84.8 10.9 31.8 - 127.5 Amortization of value of business acquired 2.2 1.2 9.1 - 12.5 Interest expense on debt - - 0.1 25.0 25.1 Total expenses 138.4 107.8 92.4 79.5 418.1 Pre-tax operating earnings 57.0$ 66.2$ 61.1$ 17.2$ 201.5$ Federal income tax expense (67.4) Net operating earnings 268.9$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) (7.2) Adjustment to amortization related to net realized gains (losses), net of taxes 1.0 Net income 262.7$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. For the three months ended June 30, 2006 Combining Income Statement 6
  10. 10. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 This Page Intentionally Left Blank. 7
  11. 11. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions, except per share data) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Assets Investments Securities available-for-sale: Fixed maturity securities 27,980.9$ 28,579.0$ 28,160.0$ 28,356.6$ 27,479.5$ Equity securities 63.2 65.2 67.6 69.0 71.3 Trading assets 21.0 22.8 24.3 24.3 28.2 Mortgage loans 9,060.7 8,981.2 8,909.8 8,689.8 8,457.5 Real estate 108.4 104.8 76.7 67.8 65.2 Policy loans 948.3 957.7 966.9 974.6 991.5 Other long-term investments 687.4 680.6 780.1 770.0 787.7 Short-term investments 2,169.7 1,917.4 2,215.6 2,469.3 1,756.9 Total investments 41,039.6 41,308.7 41,201.0 41,421.4 39,637.8 Cash 59.0 61.6 83.4 82.3 45.3 Accrued investment income 388.7 412.6 373.8 387.5 350.9 Deferred policy acquisition costs 3,875.6 3,783.5 3,851.0 3,819.6 4,051.1 Value of business acquired 405.2 399.1 392.7 385.6 370.8 Other intangible assets 44.9 44.2 43.6 42.9 42.4 Goodwill 359.0 359.0 359.0 341.7 341.7 Other assets 2,291.3 2,466.5 2,531.9 2,700.6 2,757.5 Assets held in separate accounts 64,829.1 66,126.8 70,694.7 71,288.1 73,792.8 Total assets 113,292.4$ 114,962.0$ 119,531.1$ 120,469.7$ 121,390.3$ Liabilities and shareholders' equity Future policy benefits and claims 38,451.3$ 38,131.9$ 38,097.8$ 37,322.6$ 36,453.5$ Short-term debt 189.8 88.6 85.2 156.6 249.7 Long-term debt 1,398.4 1,398.1 1,398.5 1,398.9 1,499.7 Other liabilities 3,134.0 3,529.7 3,632.2 4,495.8 3,941.4 Liabilities related to separate accounts 64,829.1 66,126.8 70,694.7 71,288.1 73,792.8 108,002.6 109,275.1 113,908.4 114,662.0 115,937.1 Shareholders' equity 5,289.8 5,686.9 5,622.7 5,807.7 5,453.2 Total liabilities and shareholders' equity 113,292.4$ 114,962.0$ 119,531.1$ 120,469.7$ 121,390.3$ ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Total capital, including AOCI 6,688.2$ 7,085.0$ 7,021.2$ 7,206.6$ 6,952.9$ Less AOCI (202.0) 47.8 31.9 83.6 (69.1) Total capital, excluding AOCI 6,890.2$ 7,037.2$ 6,989.3$ 7,123.0$ 7,022.0$ Leverage, including AOCI Long-term debt--to--total capital 20.9% 19.7% 19.9% 19.4% 21.6% Leverage, excluding AOCI Long-term debt--to--total capital 20.3% 19.9% 20.0% 19.6% 21.4% Ratio of pre-tax operating earnings before interest expense to interest expense 9.0X 9.3X 8.0X 10.1X 11.1X Quarterly Consolidated Balance Sheets Capital Structure 8
  12. 12. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Individual Investments Quarterly Earnings Trends ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Operating Revenues Asset fees 125.0$ 125.2$ 137.2$ 137.8$ 146.8$ Administrative fees 4.9 5.5 5.4 6.3 6.2 Surrender fees 14.2 14.7 12.5 12.6 12.6 Total policy charges 144.1 145.4 155.1 156.7 165.6 Net Investment Income General account assets 200.0 205.9 187.7 181.0 174.5 Charge for invested capital (6.1) (6.8) (6.0) (7.0) (7.5) Total net investment income 193.9 199.1 181.7 174.0 167.0 Premiums on income products 34.6 37.3 38.7 33.5 30.2 Other income 5.1 5.1 5.1 7.0 6.1 Total operating revenues 377.7 386.9 380.6 371.2 368.9 Benefits Interest credited 132.7 131.5 126.4 118.2 114.4 Immediate annuity benefits 30.4 31.7 36.3 28.9 26.9 Policy benefits 19.2 23.8 20.0 17.7 47.8 Total benefits 182.3 187.0 182.7 164.8 189.1 Expenses Commissions 86.2 86.0 94.7 88.8 100.0 General operating expenses 56.0 54.5 65.0 50.6 57.3 Deferral of policy acquisition costs (90.8) (86.9) (98.7) (91.0) (100.9) Subtotal 51.4 53.6 61.0 48.4 56.4 Amortization of policy acquisition costs 84.8 79.5 90.8 99.5 12.7 Amortization of value of business acquired 2.2 1.8 0.2 1.3 1.3 Total expenses 138.4 134.9 152.0 149.2 70.4 Pre-tax operating earnings 57.0$ 65.0$ 45.9$ 57.2$ 109.4$ Key Ratios/Statistics Average Account Values: General account 14,374.0$ 13,824.3$ 13,223.4$ 12,664.0$ 12,172.9$ Separate account 36,815.8 36,824.2 38,340.3 39,726.2 40,992.6 Advisory services program 491.6 528.7 573.2 607.0 630.3 Total average individual investments account values 51,681.4$ 51,177.2$ 52,136.9$ 52,997.2$ 53,795.8$ Earned rate 5.56% 5.95% 5.67% 5.71% 5.73% Credited rate 3.69% 3.80% 3.82% 3.73% 3.76% Interest spread on average general account values 1.87% 2.15% 1.85% 1.98% 1.97% Income from mortgage loan prepayments and bond call premiums 0.09% 0.24% 0.17% 0.15% 0.17% Base interest spread on average general account values 1.78% 1.91% 1.68% 1.83% 1.80% Asset fees to average separate account values 1.36% 1.36% 1.43% 1.39% 1.43% General operating expenses to average account values 0.43% 0.43% 0.50% 0.38% 0.43% Average allocated capital 1,504.3$ 1,467.4$ 1,441.9$ 1,383.1$ 1,393.8$ Return on average allocated capital 12.5% 13.9% 11.1% 14.7% 22.4% Pre-tax operating earnings to average account values 0.44% 0.51% 0.35% 0.43% 0.81% Pre-tax operating earnings to operating revenues 15.1% 16.8% 12.1% 15.4% 29.7% Key ratios excluding DAC items discussed on page 5 Return on average allocated capital 11.0% Pre-tax operating earnings to average account values 0.36% Pre-tax operating earnings to operating revenues 13.0% Individual Investments Account Value Activity ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Individual Variable Annuities Balance, beginning of period 42,071.5$ 41,140.7$ 41,771.1$ 43,804.8$ 44,211.7$ Deposits 1,279.9 1,263.4 1,446.6 1,314.8 1,499.1 Withdrawals and surrenders (1,479.4) (1,554.2) (1,564.3) (1,586.1) (1,714.0) Net flows (199.5) (290.8) (117.7) (271.3) (214.9) Investment performance/interest credited (605.1) 1,070.8 2,373.2 825.9 2,213.2 Policy charges (141.3) (141.2) (153.1) (154.2) (162.5) Benefits and other 15.1 (8.4) (68.7) 6.5 84.0 Balance, end of period 41,140.7$ 41,771.1$ 43,804.8$ 44,211.7$ 46,131.5$ Individual Fixed Annuities Balance, beginning of period 7,746.6$ 7,425.0$ 6,995.6$ 6,536.1$ 6,158.4$ Deposits 42.7 53.3 43.6 44.2 45.8 Withdrawals and surrenders (437.5) (534.1) (521.3) (470.4) (535.4) Net flows (394.8) (480.8) (477.7) (426.2) (489.6) Policyholder interest credited 79.2 68.2 63.6 58.1 54.3 Policy charges (2.5) (3.1) (2.2) (2.1) (1.9) Benefits and other (3.5) (13.7) (43.2) (7.5) - Balance, end of period 7,425.0$ 6,995.6$ 6,536.1$ 6,158.4$ 5,721.2$ Income Products 1,970.6$ 1,994.0$ 2,025.6$ 2,043.8$ 2,064.4$ Advisory Services Program 508.1$ 549.2$ 597.1$ 616.8$ 643.7$ Total individual investment account values 51,044.4$ 51,309.9$ 52,963.6$ 53,030.7$ 54,560.8$ 9
  13. 13. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Individual Variable Annuities BEST of AMERICA products 33,495.1$ 34,215.3$ 36,106.8$ 36,628.6$ 38,367.4$ Private label annuities 7,243.9 7,171.5 7,319.7 7,233.7 7,414.2 Nationwide Financial Network and other 401.7 384.3 378.3 349.4 349.9 Total individual variable annuities 41,140.7$ 41,771.1$ 43,804.8$ 44,211.7$ 46,131.5$ Individual Fixed Annuities 7,425.0$ 6,995.6$ 6,536.1$ 6,158.4$ 5,721.2$ Income Products 1,970.6$ 1,994.0$ 2,025.6$ 2,043.8$ 2,064.4$ Advisory Services Program 508.1$ 549.2$ 597.1$ 616.8$ 643.7$ Total individual investment account values 51,044.4$ 51,309.9$ 52,963.6$ 53,030.7$ 54,560.8$ ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Individual Variable Annuities BEST of AMERICA products 1,116.3$ 1,096.6$ 1,265.5$ 1,166.9$ 1,296.5$ Private label annuities 96.7 94.8 92.1 73.2 97.5 Nationwide Financial Network and other 1.0 1.0 0.7 0.9 0.8 Total individual variable annuities 1,214.0$ 1,192.4$ 1,358.3$ 1,241.0$ 1,394.8$ Individual Fixed Annuities 45.8$ 57.2$ 44.0$ 37.3$ 40.1$ Income Products 55.9$ 57.1$ 59.2$ 55.5$ 50.2$ Advisory Services Program 70.1$ 47.7$ 42.4$ 36.8$ 36.6$ Total individual investment sales 1,385.8$ 1,354.4$ 1,503.9$ 1,370.6$ 1,521.7$ ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Individual Variable Annuities Non-affiliated Independent broker/dealers 412.6$ 403.1$ 443.1$ 427.9$ 448.9$ Wirehouse and regional firms 274.4 312.7 363.9 314.0 370.1 Financial institutions 410.6 383.3 446.7 402.4 465.8 Life specialists - - - 0.1 - Affiliated Nationwide agents 71.3 51.0 59.2 62.3 63.6 Nationwide Financial Network 45.1 42.3 45.4 34.3 46.4 Total individual variable annuities 1,214.0$ 1,192.4$ 1,358.3$ 1,241.0$ 1,394.8$ Individual Fixed Annuities Non-affiliated Independent broker/dealers 2.5$ 5.4$ 2.9$ 5.4$ 5.1$ Wirehouse and regional firms 3.0 3.1 2.7 3.6 2.3 Financial institutions 19.0 20.5 18.2 14.3 13.9 Affiliated Nationwide agents 19.8 24.7 17.8 12.4 14.5 Nationwide Financial Network 1.5 3.5 2.4 1.6 4.3 Total individual fixed annuities 45.8$ 57.2$ 44.0$ 37.3$ 40.1$ Income Products Non-affiliated Independent broker/dealers 28.5$ 19.5$ 22.0$ 26.0$ 24.8$ Wirehouse and regional firms 15.5 25.8 26.4 16.9 15.7 Financial institutions 9.4 7.9 7.3 8.8 6.3 Affiliated Nationwide agents 3.1 2.9 2.0 2.4 2.4 Nationwide Financial Network (0.6) 1.0 1.5 1.4 1.0 Total income products 55.9$ 57.1$ 59.2$ 55.5$ 50.2$ Advisory Services Program Non-affiliated Independent broker/dealers 60.2$ 41.3$ 31.0$ 28.7$ 25.2$ Financial institutions 5.7 2.3 3.5 2.1 3.2 Affiliated Nationwide Financial Network 4.2 4.1 7.9 6.0 8.2 Total advisory services program 70.1$ 47.7$ 42.4$ 36.8$ 36.6$ Total individual investment sales 1,385.8$ 1,354.4$ 1,503.9$ 1,370.6$ 1,521.7$ Sales by Channel Individual Investments Account Values by Product Individual Investments Sales by Product Individual Investments 10
  14. 14. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Operating Revenues Asset fees 33.6$ 32.9$ 33.6$ 33.7$ 33.1$ Administrative fees 22.6 7.9 2.8 2.6 2.6 Surrender fees 1.1 0.8 1.1 1.0 1.1 Total policy charges 57.3 41.6 37.5 37.3 36.8 Net investment income 159.8 164.7 163.5 165.5 161.9 Other income 69.9 73.5 78.6 78.3 84.6 Total operating revenues 287.0 279.8 279.6 281.1 283.3 Benefits Interest credited 113.0 112.2 113.2 111.1 111.0 Expenses Commissions 36.6 37.4 39.8 41.7 42.2 General operating expenses 68.5 69.7 81.6 74.9 74.8 Deferral of policy acquisition costs (9.4) (8.8) (9.2) (9.0) (9.3) Subtotal 95.7 98.3 112.2 107.6 107.7 Amortization of policy acquisition costs 10.9 9.7 7.6 9.8 (0.9) Amortization of value of business acquired 1.2 4.2 0.4 0.4 0.6 Total expenses 107.8 112.2 120.2 117.8 107.4 Pre-tax operating earnings 66.2$ 55.4$ 46.2$ 52.2$ 64.9$ Key Ratios/Statistics Average Account Values: General account 11,050.0$ 10,909.6$ 11,079.3$ 11,175.4$ 11,216.3$ Separate account 18,155.5 17,668.4 18,193.8 18,441.8 18,256.8 Non insurance assets 16,085.7 16,611.8 17,962.0 19,314.3 20,581.9 Administration only 25,476.0 25,834.3 27,135.0 28,314.4 29,485.9 Total average retirement plan account values 70,767.2$ 71,024.1$ 74,370.1$ 77,245.9$ 79,540.9$ Earned rate 5.78% 6.03% 5.91% 5.92% 5.77% Credited rate 4.09% 4.11% 4.09% 3.97% 3.95% Interest spread on average general account values 1.69% 1.92% 1.82% 1.95% 1.82% Income from mortgage loan prepayments and bond call premiums 0.06% 0.12% 0.09% 0.11% 0.07% Base interest spread on average general account values 1.63% 1.80% 1.73% 1.84% 1.75% Asset fees to average separate account values 0.74% 0.74% 0.74% 0.73% 0.73% General operating expenses to average account values 0.39% 0.39% 0.44% 0.39% 0.38% Average allocated capital 817.1$ 806.7$ 815.4$ 795.0$ 737.4$ Return on average allocated capital 23.5% 19.4% 17.1% 19.6% 24.8% Pre-tax operating earnings to average account values 0.37% 0.31% 0.25% 0.27% 0.33% Pre-tax operating earnings to operating revenue 23.1% 19.8% 16.5% 18.6% 22.9% Key ratios excluding DAC items discussed on page 5 Return on average allocated capital 21.1% Pre-tax operating earnings to average account values 0.27% Pre-tax operating earnings to operating revenues 19.2% Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Private Sector Pension Plans Balance, beginning of period 29,900.0$ 29,626.1$ 30,601.9$ 32,645.3$ 32,927.9$ New deposits/sales 1,420.5 1,427.9 1,563.6 2,006.0 1,506.2 Participant withdrawals and surrenders (1,239.7) (1,225.2) (1,322.9) (1,520.2) (1,255.6) Net flows 180.8 202.7 240.7 485.8 250.6 Investment performance/interest credited (382.7) 838.9 1,867.9 598.6 1,506.2 Policy charges and other (72.0) (65.8) (65.2) (65.1) (65.8) Case acquisitions/(terminations), net - - - (736.7) (689.7) Balance, end of period 29,626.1$ 30,601.9$ 32,645.3$ 32,927.9$ 33,929.2$ Public Sector Pension Plans Balance, beginning of period 41,729.2$ 40,278.9$ 41,541.2$ 43,951.8$ 44,966.9$ New deposits/sales 993.2 1,023.4 981.8 1,074.4 1,071.9 Participant withdrawals and surrenders (654.2) (567.9) (496.5) (717.3) (747.2) Net flows 339.0 455.5 485.3 357.1 324.7 Investment performance/interest credited (370.1) 914.6 1,882.2 692.4 2,032.2 Policy charges and other (38.1) (19.0) (19.7) (19.5) (20.4) Case acquisitions/(terminations), net (1,381.1) (88.8) 62.8 (14.9) (45.6) Balance, end of period 40,278.9$ 41,541.2$ 43,951.8$ 44,966.9$ 47,257.8$ Total retirement plan account values 69,905.0$ 72,143.1$ 76,597.1$ 77,894.8$ 81,187.0$ Account Value Activity Retirement Plans Quarterly Earnings Trends Retirement Plans 11
  15. 15. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Retirement Plans Account Values by Product ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Private Sector Pension Plans BEST of AMERICA annuity products 7,399.3$ 7,360.4$ 7,557.1$ 7,383.9$ 7,514.0$ BEST of AMERICA trust products 16,133.6 17,089.9 18,834.1 19,794.4 21,369.3 Subtotal BEST of AMERICA 23,532.9 24,450.3 26,391.2 27,178.3 28,883.3 Nationwide Financial Network products 1,304.8 1,256.1 1,268.2 1,020.6 1,044.0 Nationwide employee and agent benefit plans 4,204.7 4,322.0 4,435.6 4,200.4 3,482.8 Other 583.7 573.5 550.3 528.6 519.1 Total private sector pension plans 29,626.1$ 30,601.9$ 32,645.3$ 32,927.9$ 33,929.2$ Public Sector Pension Plans IRC Section 457 annuities 14,908.2$ 15,243.4$ 15,979.5$ 16,310.2$ 16,942.6$ Administration only agreements 25,370.7 26,297.8 27,972.3 28,656.7 30,315.2 Total public sector pension plans 40,278.9$ 41,541.2$ 43,951.8$ 44,966.9$ 47,257.8$ Total retirement plan account values 69,905.0$ 72,143.1$ 76,597.1$ 77,894.8$ 81,187.0$ Retirement Plans Sales by Product ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Private Sector Pension Plans BEST of AMERICA annuity products 327.8$ 291.0$ 260.4$ 318.5$ 254.8$ BEST of AMERICA trust products 976.9 1,024.5 1,225.1 1,487.4 1,190.1 Subtotal BEST of AMERICA 1,304.7 1,315.5 1,485.5 1,805.9 1,444.9 Nationwide Financial Network products 40.6 42.9 48.2 35.9 31.2 Other 20.8 15.0 21.0 21.0 19.8 Total private sector pension plan 1,366.1$ 1,373.4$ 1,554.7$ 1,862.8$ 1,495.9$ Public Sector Pension Plans IRC Section 457 annuities 389.0$ 381.6$ 355.4$ 389.7$ 385.5$ Administration only agreements 604.2 641.8 626.3 684.6 686.5 Total public sector pension plans 993.2$ 1,023.4$ 981.7$ 1,074.3$ 1,072.0$ Total retirement plan sales 2,359.3$ 2,396.8$ 2,536.4$ 2,937.1$ 2,567.9$ Retirement Plans Sales by Channel ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Private Sector Pension Plans Non-affiliated Independent broker/dealers 810.4$ 824.6$ 964.3$ 1,157.3$ 945.0$ Wirehouse and regional firms 245.8 239.7 282.2 326.3 274.3 Financial institutions 120.4 141.2 130.5 148.2 137.9 Pension plan administrators 139.6 124.8 132.5 175.8 98.9 Affiliated Nationwide Retirement Solutions 8.0 7.9 7.5 7.9 7.6 Nationwide agents 20.2 16.2 19.9 29.3 15.6 Nationwide Financial Network 21.7 19.0 17.8 18.0 16.6 Total private sector pension plans 1,366.1$ 1,373.4$ 1,554.7$ 1,862.8$ 1,495.9$ Public Sector Pension Plans Nationwide Retirement Solutions 993.2$ 1,023.4$ 981.7$ 1,074.3$ 1,072.0$ Total retirement plan sales 2,359.3$ 2,396.8$ 2,536.4$ 2,937.1$ 2,567.9$ 12
  16. 16. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Operating Revenues Asset fees 11.4$ 11.1$ 12.3$ 12.7$ 13.1$ Administrative fees 19.7 22.8 17.3 20.1 19.2 Surrender fees 4.9 6.1 5.3 5.0 4.7 Cost of insurance 100.2 100.6 102.3 104.1 103.7 Total policy charges 136.2 140.6 137.2 141.9 140.7 Net Investment Income General account assets 120.5 122.0 121.5 123.7 120.5 Charge for invested capital (4.0) (3.4) (4.7) (4.1) (4.7) Total net investment income 116.5 118.6 116.8 119.6 115.8 Traditional life premiums 75.1 73.2 74.8 76.9 74.7 Other income 6.5 6.6 6.5 4.8 5.4 Total operating revenues 334.3 339.0 335.3 343.2 336.6 Benefits Interest credited 49.5 49.5 47.1 47.3 47.6 Life benefits 106.8 108.3 114.2 107.0 111.4 Policyholder dividends 24.5 24.6 21.4 21.3 20.0 Total benefits 180.8 182.4 182.7 175.6 179.0 Expenses Commissions 32.3 29.9 33.0 31.2 32.6 General operating expenses 66.3 68.8 82.0 62.7 70.9 Deferral of policy acquisition costs (47.2) (43.1) (59.2) (45.1) (47.8) Subtotal 51.4 55.6 55.8 48.8 55.7 Amortization of policy acquisition costs 31.8 20.6 11.2 26.4 9.0 Amortization of value of business acquired 9.1 8.9 6.5 8.6 13.4 Interest expense on debt 0.1 0.1 0.2 0.2 0.1 Total expenses 92.4 85.2 73.7 84.0 78.2 Pre-tax operating earnings 61.1$ 71.4$ 78.9$ 83.6$ 79.4$ Key Ratios/Statistics General operating expenses to operating revenues 19.8% 20.3% 24.5% 18.3% 21.1% Average allocated capital 1,845.5$ 1,852.3$ 1,869.0$ 1,933.2$ 1,973.6$ Return on average allocated capital 9.3% 10.5% 11.7% 12.1% 11.0% Pre-tax operating earnings to operating revenues 18.3% 21.1% 23.5% 24.4% 23.6% Key ratios excluding DAC items discussed on page 5 Return on average allocated capital 9.7% Pre-tax operating earnings to operating revenues 20.6% ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Individual investment life 5,435.3$ 5,545.3$ 5,842.5$ 5,927.3$ 6,251.2$ Corporate investment life - excluding experience rated BOLI 6,030.6 6,235.8 6,600.9 6,738.2 7,049.6 Corporate investment life - experience rated BOLI 1,134.2 1,189.8 1,913.5 1,965.7 2,009.4 Subtotal investment life 12,600.1 12,970.9 14,356.9 14,631.2 15,310.2 Traditional life 4,301.0 4,282.9 4,170.9 4,153.8 4,150.0 Universal life 1,129.7 1,158.6 1,159.0 1,169.3 1,191.4 Subtotal fixed life 5,430.7 5,441.5 5,329.9 5,323.1 5,341.4 Total individual protection policy reserves 18,030.8$ 18,412.4$ 19,686.8$ 19,954.3$ 20,651.6$ ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Individual investment life 57,336.8$ 57,189.7$ 57,536.7$ 57,748.8$ 57,489.0$ Corporate investment life - excluding experience rated BOLI 10,730.7 10,904.1 11,451.7 11,560.9 11,963.4 Corporate investment life - experience rated BOLI 13,330.5 13,320.3 13,312.7 13,308.7 13,295.4 Subtotal investment life 81,398.0 81,414.1 82,301.1 82,618.4 82,747.8 Traditional life 39,040.1 40,326.2 41,061.3 40,504.2 41,631.0 Universal life 9,476.0 9,720.0 9,950.3 10,082.2 10,270.3 Subtotal fixed life 48,516.1 50,046.2 51,011.6 50,586.4 51,901.3 Total individual protection insurance in force 129,914.1$ 131,460.3$ 133,312.7$ 133,204.8$ 134,649.1$ Individual Protection Insurance In Force Individual Protection Quarterly Earnings Trends Policy Reserves Individual Protection 13
  17. 17. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Individual Protection Sales by Product ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 BEST of AMERICA Variable Life Series First year sales 37.8$ 34.3$ 31.7$ 29.4$ 33.5$ Renewal sales 72.3 72.9 78.2 79.3 74.3 Total BEST of AMERICA variable life series 110.1 107.2 109.9 108.7 107.8 Nationwide Financial Network Variable Life Products First year sales 9.8 4.5 1.7 1.6 2.0 Renewal sales 41.6 42.7 45.2 50.6 47.3 Total Nationwide Financial Network variable life products 51.4 47.2 46.9 52.2 49.3 Corporate Owned Life Insurance (COLI) First year sales 54.6 10.2 248.3 39.0 61.0 Renewal sales 92.1 57.5 61.0 164.2 92.6 Total COLI 146.7 67.7 309.3 203.2 153.6 Traditional/Universal life First year sales 23.0 32.5 25.5 19.8 24.4 Renewal sales 102.3 103.3 112.4 103.0 111.4 Total traditional/universal life 125.3 135.8 137.9 122.8 135.8 Total individual protection sales 433.5$ 357.9$ 604.0$ 486.9$ 446.5$ ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Non-affiliated Independent broker/dealers 66.5$ 70.0$ 62.5$ 63.4$ 61.5$ Wirehouse and regional firms 16.9 15.1 16.3 18.9 18.3 Financial institutions 15.6 14.9 14.4 14.7 15.7 Life specialists 84.0 46.3 277.7 88.2 91.1 Affiliated Nationwide agents 88.7 91.8 102.8 89.7 99.7 Nationwide Financial Network 99.1 98.4 98.7 97.0 97.7 TBG Financial 62.7 21.4 31.6 115.0 62.5 Total individual protection sales 433.5$ 357.9$ 604.0$ 486.9$ 446.5$ Individual Protection Sales by Channel 14
  18. 18. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Quarterly Earnings Trends ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Operating Revenues Asset fees 11.4$ 11.1$ 12.3$ 12.7$ 13.1$ Administrative fees 16.5 18.7 13.0 16.0 14.6 Surrender fees 4.4 5.7 4.5 4.5 4.0 Cost of insurance 86.2 85.8 86.9 88.2 87.3 Total policy charges 118.5 121.3 116.7 121.4 119.0 Net Investment Income General account assets 37.5 37.3 38.8 37.7 37.7 Charge for invested capital (4.0) (3.4) (4.7) (4.1) (4.7) Total net investment income 33.5 33.9 34.1 33.6 33.0 Other income 6.5 6.6 6.5 4.8 5.4 Total operating revenues 158.5 161.8 157.3 159.8 157.4 Benefits Interest credited 28.8 29.2 27.6 28.6 28.0 Life benefits 32.1 34.7 35.9 32.1 31.5 Total benefits 60.9 63.9 63.5 60.7 59.5 Expenses Commissions 22.9 16.7 22.9 22.7 23.8 General operating expenses 34.7 37.2 49.2 33.9 39.8 Deferral of policy acquisition costs (31.1) (23.5) (41.0) (32.8) (33.1) Subtotal 26.5 30.4 31.1 23.8 30.5 Amortization of policy acquisition costs 24.3 19.4 23.9 17.1 4.3 Amortization of value of business acquired 6.8 6.2 4.6 6.3 11.1 Interest expense on debt 0.1 0.1 0.2 0.2 0.1 Total expenses 57.7 56.1 59.8 47.4 46.0 Pre-tax operating earnings 39.9$ 41.8$ 34.0$ 51.7$ 51.9$ Key Ratios/Statistics Cost of insurance per $1,000 of average net amount at risk(1) 6.11$ 6.08$ 6.16$ 6.23$ 6.19$ Life benefits per $1,000 of average net amount at risk(1) 2.28$ 2.46$ 2.54$ 2.27$ 2.23$ General operating expenses to operating revenues 21.9% 23.0% 31.3% 21.2% 25.3% Average allocated capital 1,271.9$ 1,275.7$ 1,283.5$ 1,295.1$ 1,302.7$ Return on average allocated capital 9.1% 9.2% 7.9% 11.7% 11.1% Pre-tax operating earnings to operating revenues 25.2% 25.8% 21.6% 32.4% 33.0% Key ratios excluding DAC items discussed on page 5 Return on average allocated capital 9.2% Pre-tax operating earnings to operating revenues 26.6% (1) Excludes experience rated BOLI corporate investment life. Investment Life Policy Reserve Activity ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Balance, beginning of period 12,713.9$ 12,600.1$ 12,970.9$ 14,356.9$ 14,631.2$ Deposits 288.1 320.6 1,180.0 360.8 336.5 Withdrawals and surrenders (165.5) (128.5) (136.5) (220.9) (125.4) Net flows 122.6 192.1 1,043.5 139.9 211.1 Investment performance/interest credited (126.7) 326.7 619.7 262.1 594.8 Policy charges (118.1) (121.3) (116.7) (121.5) (118.9) Benefits and other 8.4 (26.7) (160.5) (6.2) (8.0) Acquired business - - - - - Balance, end of period 12,600.1$ 12,970.9$ 14,356.9$ 14,631.2$ 15,310.2$ Investment Life 15
  19. 19. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Operating Revenues Administrative fees 3.2$ 4.1$ 4.3$ 4.1$ 4.6$ Surrender fees 0.5 0.4 0.8 0.5 0.7 Cost of insurance 14.0 14.8 15.4 15.9 16.4 Total policy charges 17.7 19.3 20.5 20.5 21.7 Net investment income 83.0 84.7 82.7 86.0 82.8 Traditional life premiums 75.1 73.2 74.8 76.9 74.7 Total operating revenues 175.8 177.2 178.0 183.4 179.2 Benefits Interest credited 20.7 20.3 19.5 18.7 19.6 Life benefits 74.7 73.6 78.3 74.9 79.9 Policyholder dividends 24.5 24.6 21.4 21.3 20.0 Total benefits 119.9 118.5 119.2 114.9 119.5 Expenses Commissions 9.4 13.2 10.1 8.5 8.8 General operating expenses 31.6 31.6 32.8 28.8 31.1 Deferral of policy acquisition costs (16.1) (19.6) (18.2) (12.3) (14.7) Subtotal 24.9 25.2 24.7 25.0 25.2 Amortization of policy acquisition costs 7.5 1.2 (12.7) 9.3 4.7 Amortization of value of business acquired 2.3 2.7 1.9 2.3 2.3 Total expenses 34.7 29.1 13.9 36.6 32.2 Pre-tax operating earnings 21.2$ 29.6$ 44.9$ 31.9$ 27.5$ Key Ratios/Statistics Life benefits per $1,000 of average life insurance in force 6.26$ 5.97$ 6.20$ 5.90$ 6.24$ General operating expenses to operating revenues 18.0% 17.8% 18.4% 15.7% 17.4% Pre-tax operating earnings to operating revenues 12.1% 16.7% 25.2% 17.4% 15.3% Average allocated capital 573.6$ 576.6$ 585.5$ 638.1$ 670.8$ Return on average allocated capital 9.6% 13.3% 19.9% 13.0% 10.7% ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Traditional/Universal Life Balance, beginning of period 5,318.4$ 5,430.7$ 5,441.5$ 5,329.9$ 5,323.1$ Deposits 112.3 116.7 120.9 106.7 114.8 Withdrawals and surrenders (57.2) (50.7) (55.4) (62.1) (56.7) Net flows 55.1 66.0 65.5 44.6 58.1 Interest credited 20.7 20.6 19.9 19.3 20.1 Policy charges (17.7) (19.3) (20.2) (20.7) (21.8) Benefits and other 54.2 (56.5) (176.8) (50.0) (38.1) Balance, end of period 5,430.7$ 5,441.5$ 5,329.9$ 5,323.1$ 5,341.4$ Policy Reserve Activity Fixed Life Quarterly Earnings Trends Fixed Life 16
  20. 20. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Operating Revenues Net Investment Income General account assets 102.3$ 96.1$ 110.1$ 121.8$ 133.5$ Periodic net coupon settlements on non-qualifying derivatives (0.3) (0.3) (0.5) (0.5) (0.4) Total net investment income 102.0 95.8 109.6 121.3 133.1 Operating realized gains (losses) 1.1 4.1 3.1 2.1 1.5 Other income 44.1 45.9 51.7 58.6 53.9 Total operating revenues 147.2 145.8 164.4 182.0 188.5 Benefits Interest Credited Products 50.4 55.0 59.1 65.4 64.0 Periodic net coupon settlements on non-qualifying derivatives 0.1 - (0.3) 0.1 - Total benefits 50.5 55.0 58.8 65.5 64.0 Expenses Commissions 5.3 7.4 6.7 7.0 6.6 General operating expenses 49.2 41.3 52.1 52.6 54.0 Amortization of value of business acquired - (0.4) 0.3 - 0.1 Debt extinguishment costs - - - - 10.2 Interest expense on debt 25.0 25.2 27.0 24.6 27.5 Total expenses 79.5 73.5 86.1 84.2 98.4 Pre-tax operating earnings 17.2$ 17.3$ 19.5$ 32.3$ 26.1$ Key Ratio / Statistics Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Total Assets - - 294.6 999.0 964.9 Net Interest Margin - - 3.18% 3.22% 2.89% ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Key Ratios/Statistics Average Account Values: General account 4,084.7$ 4,008.6$ 4,284.7$ 4,473.7$ 4,143.9$ Earned rate 5.94% 6.69% 6.52% 6.41% 6.44% Credited rate 4.94% 5.49% 5.41% 5.19% 5.44% Interest spread on average general account values 1.00% 1.20% 1.11% 1.22% 1.00% Income from mortgage loan prepayments and bond call premiums 0.00% 0.05% 0.12% 0.21% 0.13% Base interest spread on average general account values 1.00% 1.15% 0.99% 1.01% 0.87% ($ in millions) Medium Term Notes Q2'06 Q3'06 Q4'06 Q2'07 Balance, beginning of period 4,122.1$ 4,047.4$ 3,969.9$ 4,599.5$ 4,347.9$ Deposits 300.0 - 1,225.0 250.0 200.0 Maturities (379.4) (73.8) (602.1) (500.0) (600.0) Net flows (79.4) (73.8) 622.9 (250.0) (400.0) Interest credited and amortization 52.5 56.6 59.6 59.3 56.5 Other benefits - interest payments (47.8) (60.3) (52.9) (60.9) (64.5) Balance, end of period 4,047.4$ 3,969.9$ 4,599.5$ 4,347.9$ 3,939.9$ Nationwide Bank -$ -$ 222.3$ 853.1$ 812.2$ Nationwide Funds Group 3,015.8$ 2,923.8$ 2,840.6$ 2,817.5$ 3,109.5$ Total corporate and other account values 7,063.2$ 6,893.7$ 7,662.4$ 8,018.5$ 7,861.6$ Corporate and Other Account Value Activity Corporate and Other Quarterly Earnings Trends Nationwide Bank Medium Term Notes 17
  21. 21. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Individual variable annuities 41,140.7$ 41,771.1$ 43,804.8$ 44,211.7$ 46,131.5$ Individual fixed annuities 7,425.0 6,995.6 6,536.1 6,158.4 5,721.2 Income products 1,970.6 1,994.0 2,025.6 2,043.8 2,064.4 Advisory services program 508.1 549.2 597.1 616.8 643.7 Subtotal individual investments 51,044.4 51,309.9 52,963.6 53,030.7 54,560.8 Private sector pension plans 29,626.1 30,601.9 32,645.3 32,927.9 33,929.2 Public sector pension plans 40,278.9 41,541.2 43,951.8 44,966.9 47,257.8 Subtotal retirement plans 69,905.0 72,143.1 76,597.1 77,894.8 81,187.0 Individual protection investment life 12,600.1 12,970.9 14,356.9 14,631.2 15,310.2 Individual protection fixed life 5,430.7 5,441.5 5,329.9 5,323.1 5,341.4 Subtotal individual protection 18,030.8 18,412.4 19,686.8 19,954.3 20,651.6 Medium term notes 4,047.4 3,969.9 4,599.5 4,347.9 3,939.9 Nationwide Bank - - 222.3 853.1 812.2 Nationwide Funds Group 3,015.8 2,923.8 2,840.6 2,817.5 3,109.5 Subtotal corporate and other 7,063.2 6,893.7 7,662.4 8,018.5 7,861.6 Customer funds managed and administered 146,043.4$ 148,759.1$ 156,909.9$ 158,898.3$ 164,261.0$ Note: Total Customer Funds Managed and Administered includes NFG funds as detailed below. ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Individual Investments 11,982.1 12,370.3 13,293.0 13,979.2 14,882.0 Retirement Plans 6,269.4 6,473.6 7,086.8 7,461.5 7,909.3 Individual Protection 3,055.1 3,210.2 3,377.4 3,442.0 3,629.0 Corporate and Other 3,015.8 2,923.8 2,840.6 2,817.5 3,109.5 Customer funds managed and administered 24,322.4$ 24,977.9$ 26,597.8$ 27,700.2$ 29,529.8$ Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 ($ in millions) Individual Investments Equity 30,490.7$ 31,275.7$ 33,531.0$ 33,757.2$ 35,677.4$ Bond 4,134.1 4,355.0 4,499.2 4,666.4 4,681.6 Money market 1,802.4 1,590.5 1,429.1 1,569.5 1,633.1 Subtotal individual investments 36,427.2 37,221.2 39,459.3 39,993.1 41,992.1 Retirement Plans Equity 14,709.4$ 14,794.1$ 15,603.8$ 14,413.5$ 14,492.8$ Bond 1,782.8 1,830.4 1,934.8 2,674.8 2,583.8 Money market 508.8 514.3 472.4 523.3 507.7 Other 575.7 621.3 616.4 644.5 673.2 Subtotal retirement plans 17,576.7 17,760.1 18,627.4 18,256.1 18,257.5 Individual Protection Equity 7,397.0$ 7,744.9$ 8,672.3$ 8,818.8$ 9,370.9$ Bond 2,174.1 2,040.9 1,954.8 2,055.1 2,143.6 Money market 628.1 768.2 1,325.3 1,336.0 1,359.9 Subtotal individual protection 10,199.2 10,554.0 11,952.4 12,209.9 12,874.4 Corporate and Other Equity 561.7$ 534.0$ 592.5$ 749.2$ 604.8$ Bond 57.4 50.1 55.9 70.0 56.3 Money market 6.9 7.4 7.2 9.8 7.7 Subtotal corporate and other 626.0 591.5 655.6 829.0 668.8 Total Equity 53,158.8$ 54,348.7$ 58,399.6$ 57,738.7$ 60,145.9$ Bond 8,148.4 8,276.4 8,444.7 9,466.3 9,465.3 Money market 2,946.2 2,880.4 3,234.0 3,438.6 3,508.4 Other 575.7 621.3 616.4 644.5 673.2 Total separate account assets by fund type 64,829.1$ 66,126.8$ 70,694.7$ 71,288.1$ 73,792.8$ Customer Funds Managed and Administered Nationwide Funds Group - Customer Funds Managed and Administered Separate Account Assets by Segment and Fund Type 18
  22. 22. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Gross Gross Amortized Unrealized Unrealized Estimated ($ in millions) Cost Gains Losses Fair Value June 30, 2007 Fixed maturity securities: U.S. Treasury securities and obligations of U.S. Government corporations 221.6$ 9.8$ 4.7$ 226.7$ Agencies not backed by the full faith and credit of the U.S. Government 474.9 37.9 4.7 508.1 Obligations of states and political subdivisions 255.0 0.5 10.2 245.3 Debt securities issued by foreign governments 31.0 1.0 0.2 31.8 Corporate securities Public 9,351.0 170.2 165.0 9,356.2 Private 6,201.9 95.9 117.6 6,180.2 Mortgage-backed securities--U.S. Government backed 7,512.3 7.3 175.4 7,344.2 Asset-backed securities 3,624.0 29.1 66.1 3,587.0 Total fixed maturities 27,671.7 351.7 543.9 27,479.5 Equity securities 59.6 12.4 0.7 71.3 Total 27,731.3$ 364.1$ 544.6$ 27,550.8$ December 31, 2006 Fixed maturity securities: U.S. Treasury securities and obligations of U.S. Government corporations 179.0$ 12.2$ 2.1$ 189.1$ Agencies not backed by the full faith and credit of the U.S. Government 564.5 46.2 2.3 608.4 Obligations of states and political subdivisions 274.7 0.7 7.4 268.0 Debt securities issued by foreign governments 36.2 1.7 0.2 37.7 Corporate securities Public 9,732.8 220.0 127.4 9,825.4 Private 6,605.1 131.5 83.8 6,652.8 Mortgage-backed securities--U.S. Government backed 6,946.0 23.8 122.8 6,847.0 Asset-backed securities 3,728.9 45.5 42.8 3,731.6 Total fixed maturities 28,067.2 481.6 388.8 28,160.0 Equity securities 57.2 11.0 0.6 67.6 Total 28,124.4$ 492.6$ 389.4$ 28,227.6$ Than One Year Total Gross Gross Gross Estimated Unrealized Estimated Unrealized Estimated Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2007 Fixed maturity securities: U.S. Treasury securities & obligations of U.S. Government corporations 51.9$ 1.4$ 87.4$ 3.3$ 139.3$ 4.7$ Agencies not backed by the full faith and credit of the U.S. Government 160.3 3.0 85.5 1.7 245.8 4.7 Obligations of states and political subdivisions 23.1 0.6 208.1 9.6 231.2 10.2 Debt securities issued by foreign governments 9.0 0.1 1.2 0.1 10.2 0.2 Corporate securities Public 3,184.5 52.5 3,421.6 112.5 6,606.1 165.0 Private 1,411.7 24.3 2,541.4 93.3 3,953.1 117.6 Mortgage-backed securities--U.S.. Government backed 2,699.1 32.3 3,403.5 143.1 6,102.6 175.4 Asset-backed securities 1,158.8 17.4 1,340.7 48.7 2,499.5 66.1 Total fixed maturities 8,698.4 131.6 11,089.4 412.3 19,787.8 543.9 Equity securities 20.0 0.7 0.1 - 20.1 0.7 Total 8,718.4$ 132.3$ 11,089.5$ 412.3$ 19,807.9$ 544.6$ Percentage of gross unrealized losses 24% 76% December 31, 2006 Fixed maturity securities: U.S. Treasury securities & obligations of U.S. Government corporations 66.5$ 1.0$ 29.9$ 1.1$ 96.4$ 2.1$ Agencies not backed by the full faith and credit of the U.S. Government 31.7 0.1 125.2 2.2 156.9 2.3 Obligations of states and political subdivisions 84.5 1.0 161.9 6.4 246.4 7.4 Debt securities issued by foreign governments 12.8 0.1 1.3 0.1 14.1 0.2 Corporate securities Public 2,627.7 27.8 3,525.8 99.6 6,153.5 127.4 Private 1,288.6 15.0 2,165.1 68.8 3,453.7 83.8 Mortgage-backed securities--U.S.. Government backed 966.9 7.6 4,194.0 115.2 5,160.9 122.8 Asset-backed securities 580.2 4.5 1,475.0 38.3 2,055.2 42.8 Total fixed maturities 5,658.9 57.1 11,678.2 331.7 17,337.1 388.8 Equity securities 17.6 0.3 3.4 0.3 21.0 0.6 Total 5,676.5$ 57.4$ 11,681.6$ 332.0$ 17,358.1$ 389.4$ Percentage of gross unrealized losses 15% 85% or Equal to One Year Unrealized Losses MoreUnrealized Losses Less Than Securities Available-For-Sale Aging of Gross Unrealized Losses on Securities Available-For-Sale 19
  23. 23. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Amortized Fair Amortized Fair ($ in millions) Cost Value Cost Value NAIC Designation Rating Agency Equivalent Designation 19,362.3$ 19,351.3$ 19,591.5$ 19,371.0$ 6,928.8 6,997.2 6,425.9 6,442.0 1,091.5 1,101.6 1,102.3 1,098.6 647.8 659.8 534.8 543.3 18.5 27.3 10.5 14.7 18.3 22.8 6.7 9.9 28,067.2$ 28,160.0$ 27,671.7$ 27,479.5$ ($ in millions) Apartment June 30, 2007 Office Warehouse Retail & Other Total New England 173.9$ 16.4$ 84.9$ 89.7$ 364.9$ Middle Atlantic 177.1 290.7 322.4 180.7 970.9 East North Central 84.5 242.9 565.2 511.3 1,403.9 West North Central 37.6 88.8 73.8 145.3 345.5 South Atlantic 169.8 534.5 805.2 591.5 2,101.0 East South Central 26.4 45.7 116.5 153.2 341.8 West South Central 27.1 174.8 171.0 243.6 616.5 Mountain 105.1 127.6 214.1 346.8 793.6 Pacific 321.3 432.7 419.5 371.2 1,544.7 Subtotal - Principal 1,122.8$ 1,954.1$ 2,772.6$ 2,633.3$ 8,482.8$ Valuation allowance (21.6) Unamortized premium 15.1 Change in fair value of hedged mortgage loans and commitments (18.8) Total mortgage loans on real estate, net 8,457.5$ Apartment December 31, 2006 Office Warehouse Retail & Other Total New England 176.4$ 15.3$ 99.6$ 84.2$ 375.5$ Middle Atlantic 196.3 328.4 359.2 186.0 1,069.9 East North Central 97.4 245.9 614.4 513.4 1,471.1 West North Central 40.2 90.2 65.9 138.3 334.6 South Atlantic 203.7 489.5 886.4 667.5 2,247.1 East South Central 34.6 58.0 127.8 164.1 384.5 West South Central 52.9 151.6 177.6 232.4 614.5 Mountain 114.7 136.8 206.4 354.9 812.8 Pacific 346.1 431.1 468.8 366.9 1,612.9 Subtotal - Principal 1,262.3$ 1,946.8$ 3,006.1$ 2,707.7$ 8,922.9$ Valuation allowance (36.0) Unamortized premium 17.8 Change in fair value of hedged mortgage loans and commitments 5.1 Total mortgage loans on real estate, net 8,909.8$ Credit Quality of Fixed Maturity Securities Available-For-Sale 4 B 5 Caa and lower December 31, 2006 Mortgage Loans by Region and Property Type 6 In or near default Total fixed maturities June 30, 2007 1 Aaa/Aa/A 2 Baa 3 Ba 20
  24. 24. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Six Months Ended June 30, 2007 Balance, beginning of period 1,995.8$ 293.3$ 1,530.1$ 31.8$ 3,851.0$ Capitalization 191.9 18.3 92.9 - 303.1 Amortization (112.2) (8.9) (35.4) - (156.5) Adjustments to unrealized gains and losses on securities available-for-sale and other - - - 53.5 53.5 Balance, end of period 2,075.5$ 302.7$ 1,587.6$ 85.3$ 4,051.1$ Year Ended December 31, 2006 Balance, beginning of period 1,997.7$ 294.8$ 1,410.9$ (18.0)$ 3,685.4$ Capitalization 350.8 36.8 200.8 - 588.4 Amortization (352.7) (38.3) (81.6) - (472.6) Adjustments to unrealized gains and losses on securities available-for-sale and other - - - 49.8 49.8 Balance, end of period 1,995.8$ 293.3$ 1,530.1$ 31.8$ 3,851.0$ Year Ended December 31, 2005 Balance, beginning of period 2,080.6$ 305.0$ 1,312.6$ (137.1)$ 3,561.1$ Capitalization 250.7 37.2 201.1 - 489.0 Amortization (329.3) (47.4) (102.7) - (479.4) Adjustments to unrealized gains and losses on securities available-for-sale and other (4.3) - (0.1) 119.1 114.7 Balance, end of period 1,997.7$ 294.8$ 1,410.9$ (18.0)$ 3,685.4$ Year Ended December 31, 2004 Balance, beginning of period 2,052.1$ 303.4$ 1,222.9$ (248.5)$ 3,329.9$ Capitalization 293.6 41.5 204.1 - 539.2 Amortization (276.1) (39.9) (114.4) - (430.4) Adjustments to unrealized gains and losses on securities available-for-sale and other 11.0 - - 111.4 122.4 Balance, end of period 2,080.6$ 305.0$ 1,312.6$ (137.1)$ 3,561.1$ Year Ended December 31, 2003 Balance, beginning of period 1,885.6$ 305.3$ 1,144.0$ (308.0)$ 3,026.9$ Capitalization 376.8 43.8 199.5 - 620.1 Amortization (228.3) (45.7) (120.6) - (394.6) Adjustments to unrealized gains and losses on securities available-for-sale and other 18.0 - - 59.5 77.5 Balance, end of period 2,052.1$ 303.4$ 1,222.9$ (248.5)$ 3,329.9$ Year Ended December 31, 2002 Balance, beginning of period 1,976.6$ 309.8$ 1,022.2$ (94.9)$ 3,213.7$ Capitalization 414.7 49.2 204.7 - 668.6 Amortization (528.2) (53.7) (92.7) - (674.6) Adjustments to unrealized gains and losses on securities available-for-sale and other 22.5 - 9.8 (213.1) (180.8) Balance, end of period 1,885.6$ 305.3$ 1,144.0$ (308.0)$ 3,026.9$ Deferred Policy Acquisition Costs 21
  25. 25. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 2,545.1$ 108.5$ 4,633.0$ 285.2$ 2 4,867.5 199.8 3,194.1 174.3 3 3,271.4 170.3 3,639.6 186.5 4 3,724.1 185.5 4,425.8 191.2 5 4,483.5 191.4 4,584.6 165.4 6 4,607.4 166.4 4,697.1 169.4 7 4,753.7 173.9 4,599.3 153.3 8 4,348.0 159.6 2,862.0 97.0 9 2,601.8 102.6 2,514.9 89.7 10 2,396.8 95.3 1,934.5 84.0 11-15 6,873.8 314.7 5,635.7 233.9 16-20 1,314.9 54.5 783.7 30.1 21-27 343.5 4.1 300.5 2.3 Total: 46,131.5$ 1,926.6$ 14.8% 43,804.8$ 1,862.3$ 14.6% Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 3,000.3$ 200.6$ 3,748.9$ 253.1$ 2 3,521.0 212.8 4,649.3 259.9 3 4,361.5 224.6 4,844.1 239.2 4 4,519.7 199.0 5,106.3 243.4 5 4,752.0 210.0 4,917.0 206.2 6 4,662.3 189.1 3,813.5 148.0 7 3,569.7 128.5 3,708.0 121.0 8 3,006.1 96.8 2,624.7 101.5 9 2,169.5 84.9 2,315.0 84.8 10 2,029.1 75.5 1,690.1 62.5 11-15 4,386.3 168.0 3,427.8 132.6 16-20 512.5 19.4 316.6 13.6 21-27 306.0 2.2 320.6 2.3 Total: 40,796.0$ 1,811.4$ 13.5% 41,481.9$ 1,868.1$ 12.5% Account DAC Annualized Account DAC Annualized Year Values Balance Lapse Rate Values Balance Lapse Rate 1 4,500.3$ 310.6$ 3,922.1$ 310.3$ 2 4,638.5 284.0 4,442.5 312.6 3 5,014.8 283.3 4,327.7 303.1 4 4,864.6 275.1 3,564.3 190.1 5 3,886.5 170.6 3,579.4 158.0 6 3,833.3 140.9 2,996.5 132.1 7 3,114.6 116.5 2,817.0 83.2 8 2,685.2 72.8 1,956.2 59.9 9 1,877.4 52.3 1,410.6 40.9 10 1,415.8 35.7 937.1 27.5 11-15 2,493.5 61.0 1,590.1 43.9 16-20 186.4 3.5 143.9 3.0 21-25 325.0 1.2 194.5 1.7 Total: 38,835.9$ 1,807.5$ 12.5% 31,881.9$ 1,666.3$ 14.4% December 31, 2002 Individual Variable Annuity Deferred Acquisition Costs June 30, 2007 December 31, 2006 December 31, 2004 December 31, 2003 December 31, 2005 22
  26. 26. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Six Months Ended June 30, 2007 Balance, beginning of period 14.1$ 4.9$ 367.5$ 6.2$ 392.7$ Amortization (2.6) (1.0) (22.0) (0.1) (25.7) Adjustments to realized and unrealized gains and losses on securities available-for-sale 4.6 (0.8) - - 3.8 Balance, end of period 16.1$ 3.1$ 345.5$ 6.1$ 370.8$ 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 0.0 Balance, end of period 33.0$ 19.6$ 463.6$ 6.8$ 523.0$ Value of Business Acquired 23
  27. 27. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Account Account GMDB Benefit Type Values Gross Net Values Gross Net Return of premium 9,398.9$ 27.3$ 10.9$ 9,243.7$ 42.9$ 17.1$ Reset 18,385.1 111.0 18.8 17,752.7 177.3 26.0 Ratchet 15,165.4 127.9 16.6 13,651.6 195.2 17.4 Roll-up 547.6 66.4 4.4 568.1 87.7 5.7 Combo 2,634.5 31.1 15.5 2,588.7 30.1 14.9 Subtotal 46,131.5$ 363.7 66.2 43,804.8$ 533.2 81.1 Earnings enhancement 497.4$ 49.2$ 49.2$ 477.8$ 41.1$ 41.1$ Total 412.9$ 115.4$ 574.3$ 122.2$ GAAP GMDB reserves 40.7$ 29.6$ Statutory GMDB reserves 24.9$ 27.3$ Account Account GMDB Benefit Type Values Gross Net Values Gross Net Return of premium 9,272.7$ 83.3$ 32.5$ 9,848.6$ 136.8$ 54.1$ Reset 17,130.4 388.0 61.8 18,084.1 751.7 158.1 Ratchet 11,233.2 410.3 31.6 10,322.1 644.5 46.3 Roll-up 629.1 143.8 8.4 707.2 167.5 9.7 Combo 2,530.6 45.7 22.3 2,519.9 39.8 19.2 Subtotal 40,796.0$ 1,071.1 156.6 41,481.9$ 1,740.3 287.4 Earnings enhancement 418.5$ 27.6$ 27.6$ 310.1$ 18.0$ 18.0$ Total 1,098.7$ 184.2$ 1,758.3$ 305.4$ GAAP GMDB reserves 27.2$ - Statutory GMDB reserves 38.4$ - Account Account GMDB Benefit Type Values Gross Net Values Gross Net Return of premium 9,713.8$ 247.8$ 199.8$ 8,743.2$ 832.0$ 736.7$ Reset 17,834.0 1,313.4 579.6 15,272.2 3,532.5 1,842.1 Ratchet 8,433.7 1,008.3 147.8 6,087.5 1,977.1 411.2 Roll-up 725.7 195.8 22.3 675.0 290.9 34.3 Combo 2,128.7 42.0 39.6 1,104.0 114.8 111.6 Subtotal 38,835.9$ 2,807.3 989.1 31,881.9$ 6,747.3 3,135.9 Earnings enhancement 314.1$ 10.9$ 10.9$ 213.1$ 1.7$ 1.7$ Total 2,818.2$ 1,000.0$ 6,749.0$ 3,137.6$ Wghtd. Avg. GMDB Benefit Type 0 to 50 51 to 60 61 to 70 71 to 80 Over 81 Total Attained Age Return of premium 2.6$ 3.8$ 3.2$ 0.9$ 0.4$ 10.9$ 61 Reset 1.5 4.2 6.5 5.2 1.4 18.8 64 Ratchet 1.6 3.9 5.8 3.6 1.7 16.6 66 Roll-up 0.3 0.8 1.4 1.2 0.7 4.4 70 Combo 1.0 2.8 5.1 4.4 2.2 15.5 68 Subtotal 7.0 15.5 22.0 15.3 6.4 66.2 65 Earnings enhancement 5.2 14.5 19.9 9.6 - 49.2 62 Total 12.2$ 30.0$ 41.9$ 24.9$ 6.4$ 115.4$ 64 Definition of GMDB Benefit Types Return of premium: provides the greater of account value or total deposits made to the contract less any partial withdrawals and assessments, which is referred to as "net premiums." In general, there is no lock in age for this benefit, however for some contracts, the GMDB reverts to the account value at a specified age, typically age 75. Reset: provides the greater of a return of premium death benefit or the most recent five-year anniversary (prior to lock in age) account value adjusted for withdrawals. For most contracts, this GMDB locks in at age 86 or 90 and for others the GMDB reverts to the account value at age 75, 85, 86 or 90. Ratchet: provides the greater of a return of premium death benefit or the highest "anniversary" account value (prior to age 86) adjusted for withdrawals. Currently, there are three versions of ratchet, with the difference being based on the definition of anniversary: monthaversary - evaluated monthly, annual - evaluated annually, and five-year - evaluated every fifth year. The majority of the business is an annual ratchet. Rollup: provides the greater of a return of premium death benefit or premiums adjusted for withdrawals accumulated at generally 5% simple interest up to the earlier of age 86 or 200% of adjusted premiums. There are two variations of this benefit. For certain contracts, this GMDB locks in at age 86 and for others the GMDB reverts to the account value at age 75. Combo: provides the greater of annual ratchet death benefit or the rollup death benefit. This benefit locks in at either age 81 or 86. Earnings enhancement: provides an enhancement to the death benefit that is a specified percentage of the adjusted earnings accumulated on the contract at the date of death. There are two versions of this benefit, one where the benefit expires at age 86 and a credit of 4% of account value is deposited into the contract and the second where the benefit doesn't have an end age, but has a cap on the payout and is paid upon the first death in a spousal situation. Both benefits have age limitations. This benefit is paid in addition to any other death benefits paid under the contract. Net Amount at Risk, Net of Reinsurance by Benefit Type and Age at March 31, 2007 June 30, 2007 Net Amount at Risk Net Amount at Risk December 31, 2005 Net Amount at Risk December 31, 2003 Individual Variable Annuity Guaranteed Minimum Death Benefits December 31, 2002 Net Amount at RiskNet Amount at Risk December 31, 2004 Net Amount at Risk December 31, 2006 24
  28. 28. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Account Account GMAB Benefit Type Values Gross Net Values Gross Net 5 Year 2,594.2$ 0.7$ 0.7$ 2,131.1$ 0.1$ 0.1$ 7 Year 2,288.7 0.6 0.6 1,865.7 0.1 0.1 10 Year 875.8 0.1 0.1 784.0 - - Total 5,758.7$ 1.4$ 1.4$ 4,780.8$ 0.2$ 0.2$ CPPLI included in totals 3,913.4$ 1.4$ 1.4$ 2,946.4$ 0.2$ 0.2$ Account Account GMAB Benefit Type Values Gross Net Values Gross Net 5 Year 1,041.8$ 0.5$ 0.5$ 512.2$ 0.1$ 0.1$ 7 Year 1,103.5 0.2 0.2 647.5 - - 10 Year 595.5 0.1 0.1 332.4 - - Total 2,740.8$ 0.8$ 0.8$ 1,492.1$ 0.1$ 0.1$ CPPLI included in totals 939.1$ 0.6$ 0.6$ - - - ($ in millions) Account Account GMIB Benefit Type Values Gross Net Values Gross Net Ratchet 450.3$ 0.1$ -$ 450.6$ 0.2$ -$ Roll-up 1,191.5 1.9 - 1,187.1 3.3 - Combo 0.5 - - 0.5 - - Total 1,642.3$ 2.0$ -$ 1,638.2$ 3.5$ -$ Account Account GMIB Benefit Type Values Gross Net Values Gross Net Ratchet 444.7$ 0.3$ -$ 439.7$ 0.7$ -$ Roll-up 1,189.3 5.0 - 1,188.7 7.2 - Combo 0.5 - - 1.0 - - Total 1,634.5$ 5.3$ -$ 1,629.4$ 7.9$ -$ Account Account GMIB Benefit Type Values Gross Net Values Gross Net Ratchet 418.0$ 1.0$ -$ 307.8$ 4.6$ -$ Roll-up 1,132.2 8.6 - 664.4 20.4 - Combo 1.1 - - 0.1 - - Total 1,551.3$ 9.6$ -$ 972.3$ 25.0$ -$ ($ in millions) Account Account GLWB Benefit Type Values Gross Net Values Gross Net L.INC 1,840.6$ -$ -$ 993.8$ -$ -$ Total 1,840.6$ -$ -$ 993.8$ -$ -$ Definition of Benefit Types 5 Year, 7 Year, 10 Year: the waiting period required to receive the guaranteed accumulation benefit. Ratchet: provides an annuitization value equal to the greater of account value, net premiums paid or the highest one-year anniversary account value (prior to age 86) adjusted for withdrawals. Rollup: provides an annuitization value equal to the greater of account value and premiums adjusted for withdrawals accumulated at 5% compound interest up to the earlier of age 86 or 200% of adjusted premiums. Combo: provides an annuitization value equal to the greater of account value, ratchet GMIB benefit or rollup GMIB benefit. CPPLI: Capital Preservation Plus Lifetime Income is a living benefit rider that combines a GMAB feature in its first five to 10 years with a lifetime withdrawal benefit which begins upon the maturity of the GMAB and extends for the duration of the insured's life. L.INC: Lifetime Income is a living benefit rider that provides a lifetime withdrawal benefit to the insured. The withdrawal percent is based on the insured's age at the time of the first withdrawal. December 31, 2006 Net Amount at Risk Net Amount at Risk Net Amount at Risk Net Amount at Risk December 31, 2005 Net Amount at Risk December 31, 2005 Net Amount at Risk December 31, 2002 Net Amount at Risk December 31, 2003 Net Amount at Risk June 30, 2007 December 31, 2006 December 31, 2004 Net Amount at Risk Individual Variable Annuity Guaranteed Minimum Accumulation Benefits Individual Variable Annuity Guaranteed Minimum Income Benefits Individual Variable Annuity Guaranteed Lifetime Withdrawal Benefits June 30, 2007 December 31, 2006 Net Amount at Risk Net Amount at Risk December 31, 2004 Net Amount at Risk June 30, 2007 25
  29. 29. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Balance, beginning of period 26.9$ 30.2$ 31.8$ 29.6$ 32.4$ Expense provision 8.3 8.4 7.9 8.4 11.6 Net claims paid (5.0) (6.8) (10.1) (5.6) (3.3) Balance, end of period 30.2$ 31.8$ 29.6$ 32.4$ 40.7$ ($ in millions) Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Balance, beginning of period 77.6$ 102.4$ 109.7$ 116.3$ 120.3$ Value of new business sold 26.0 18.2 24.2 17.7 19.7 Change in fair value (1.2) (10.9) (17.6) (13.7) (12.5) Balance, end of period 102.4$ 109.7$ 116.3$ 120.3$ 127.5$ CPPLI included in end of period balance 20.7$ 15.2$ 22.0$ 1.0$ 26.1$ Account Wtd. Avg. Account Wtd. Avg. ($ in millions) Value Crediting Rate Value Crediting Rate Minimum interest rate of 3.50% or greater -$ - 1,163.2$ 4.13% Minimum interest rate of 3.0% to 3.49% 1,717.9 4.36% 4,101.6 3.13% Minimum interest rate lower than 3.00% 832.1 4.36% 411.1 3.59% MVA with no minimum interest rate guarantee - - - - Total 2,550.0$ 4.36% 5,675.9$ 3.37% Account Wtd. Avg. Account Wtd. Avg. Value Crediting Rate Value Crediting Rate Minimum interest rate of 3.50% or greater -$ - 1,163.2 4.13% Minimum interest rate of 3.0% to 3.49% - - 5,819.5 3.50% Minimum interest rate lower than 3.00% - - 1,243.2 4.11% MVA with no minimum interest rate guarantee 1,626.4 2.77% 1,626.4 2.77% Total 1,626.4$ 2.77% 9,852.3$ 3.53% Ratchet Total Individual Variable Annuity Guaranteed Minimum Death Benefit Reserve Activity Individual Variable Annuity Guaranteed Minimum Accumulation Benefit Embedded Derivative Activity Individual Fixed Annuity and Fixed Option of Variable Annuity Summary of Crediting Rate Detail as of June 30, 2007 MVA & Other Reset 26
  30. 30. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions except for per share data) 2002 2003 2004 2005 2006 Operating Revenues Individual investments 1,224.9$ 1,404.5$ 1,487.0$ 1,528.2$ 1,526.6$ Retirement plans 903.7 934.1 982.5 1,045.2 1,115.6 Individual protection 1,004.6 1,350.6 1,351.2 1,350.4 1,346.3 Corporate and other 291.7 367.3 420.9 503.7 599.9 Total operating revenues 3,424.9$ 4,056.5$ 4,241.6$ 4,427.5$ 4,588.4$ Net realized gains (losses) on investments, hedging instruments and hedged items (1) (87.6) (86.3) (40.9) 18.2 (0.6) Total revenues 3,337.3$ 3,970.2$ 4,200.7$ 4,445.7$ 4,587.8$ Pre-tax Operating Earnings (Loss) Individual investments (106.0)$ 194.6$ 244.0$ 250.7$ 223.1$ Retirement plans 147.4 156.4 183.3 191.3 221.2 Individual protection 190.8 217.4 243.8 260.1 275.6 Corporate and other 23.2 52.6 66.8 54.6 65.7 Pre-tax operating earnings 255.4$ 621.0$ 737.9$ 756.7$ 785.6$ Federal income tax expense 35.2 155.5 189.2 133.0 67.5 Net operating earnings 220.2$ 465.5$ 548.7$ 623.7$ 718.1$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) (56.9) (56.2) (26.6) 11.9 (0.4) Adjustment to amortization related to net realized gains (losses), net of taxes - - - (0.5) 6.3 Discontinued operations, net of taxes (1.5) (1.3) (2.3) (24.7) - Cumulative effect of adoption of accounting principles, net of taxes - (0.6) (3.4) - - Net income 161.8$ 407.4$ 516.4$ 610.4$ 724.0$ Per Common Diluted Share Net operating earnings 1.66$ 3.06$ 3.59$ 4.06$ 4.77$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) (0.43) (0.38) (0.17) 0.07 - Adjustment to amortization related to net realized gains (losses), net of taxes - - - - 0.03 - Discontinued operations, net of taxes (0.01) (0.01) (0.02) (0.16) - Cumulative effect of adoption of accounting principles, net of taxes - - (0.02) - - Net income 1.22$ 2.67$ 3.38$ 3.97$ 4.80$ Sales by Channel Non-affiliated Independent broker/dealers 4,391.2$ 4,615.1$ 5,223.2$ 5,266.0$ 5,758.2$ Wirehouse and regional firms 2,204.8 1,995.0 1,992.1 1,912.5 2,433.6 Financial institutions 4,180.6 3,758.2 2,618.5 1,808.0 2,295.1 Pension plan administrators 747.4 574.8 476.1 469.0 532.8 Life specialists 510.6 387.5 382.8 382.4 580.6 Affiliated Nationwide Retirement Solutions 2,633.1 3,209.9 3,665.9 3,914.7 4,050.2 Nationwide agents 736.7 686.3 714.3 757.8 787.8 Nationwide Financial Network 274.5 793.6 760.9 658.0 698.7 TBG Financial 146.9 160.9 184.2 275.4 226.1 Total 15,825.8$ 16,181.3$ 16,018.0$ 15,443.8$ 17,363.1$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Note: The results of operations of Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) are reflected as discontinued operations for 2005 and all prior years. In addition, the results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. Historical Financial Highlights 27
  31. 31. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions except for per share data) 2002 2003 2004 2005 2006 Balance Sheet Data Total assets 95,642.9$ 111,237.8$ 117,121.2$ 116,361.2$ 119,531.1$ Total customer funds managed and administered 101,487.6$ 127,699.0$ 140,296.6$ 145,484.8$ 156,909.9$ Shareholder's equity Including AOCI 4,423.7$ 4,868.9$ 5,234.0$ 5,387.6$ 5,622.7$ AOCI 400.3 504.9 432.2 100.7 31.9 Excluding AOCI 4,023.4$ 4,364.0$ 4,801.8$ 5,286.9$ 5,590.8$ Net operating return on average equity excluding AOCI 6.1% 11.1% 12.0% 12.4% 13.2% Adjusted net operating return on average equity excluding AOCI (1) 6.1% 11.1% 12.0% 11.6% 11.2% Statutory capital and surplus 2,015.7$ 2,730.0$ 2,967.5$ 3,262.1$ 3,336.6$ Stock Data Closing Price 28.65$ 33.06$ 38.23$ 44.00$ 54.20$ Weighted average common shares outstanding Basic 132.4 151.8 152.1 152.9 149.9 Diluted 132.6 152.3 152.9 153.6 150.7 Book value per share Including AOCI 29.12$ 32.05$ 34.32$ 35.33$ 38.51$ Excluding AOCI 26.49$ 28.73$ 31.49$ 34.67$ 38.29$ (1) 2005 return adjusted for $37.9 million impact of one-time tax adjustments associated with separate account dividend received deductions. 2006 return adjusted for $113.1 million of released tax reserves and associated tax-related adjustments relating to prior tax years. Note: The results of operations of Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) are reflected as discontinued operations for 2005 and all prior years. In addition, the results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. Historical Financial Highlights 28
  32. 32. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 This Page Intentionally Left Blank. 29
  33. 33. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 Earnings Impact of NFG Acquisition and Change in Accounting Principle ($ in millions, except per share data) 2002 2003 2004 2005 2006 Previously Reported Pre-Tax Operating Earnings Individual Investments (120.5)$ 182.9$ 234.4$ 237.0$ 210.8$ Retirement Plans 142.5 152.8 180.3 187.8 216.5 Individual Protection 188.1 215.5 242.7 258.2 274.8 Corporate and Other 18.2 54.8 58.6 55.7 67.7 Total 228.3 606.0 716.0 738.7 769.8 Impact of Acquisition of Nationwide Funds Group (before tax)* Individual Investments 14.5 11.7 9.6 13.7 12.3 Retirement Plans 4.9 3.6 3.0 3.5 4.7 Individual Protection 2.7 1.9 1.1 1.9 0.8 Corporate and Other 2.8 2.5 1.6 (0.5) 2.2 Total 24.9 19.7 15.3 18.6 20.0 Impact of Change in Accounting Principle* Corporate and Other 2.2 (4.7) 6.6 (0.6) (4.2) Currently Reported Pre-Tax Operating Earnings Individual Investments (106.0) 194.6 244.0 250.7 223.1 Retirement Plans 147.4 156.4 183.3 191.3 221.2 Individual Protection 190.8 217.4 243.8 260.1 275.6 Corporate and Other 23.2 52.6 66.8 54.6 65.7 Total 255.4$ 621.0$ 737.9$ 756.7$ 785.6$ 2002 2003 2004 2005 2006 Previously Reported Operating Margin Individual Investments (pre-tax operating earnings to average account values) -0.29% 0.41% 0.46% 0.46% 0.41% Retirement Plans (pre-tax operating earnings to average account values) 0.34% 0.31% 0.30% 0.28% 0.30% Individual Protection (pre-tax operating earnings to operating revenues) 18.8% 16.0% 18.0% 19.1% 20.4% Previously Reported Return on Average Allocated Capital (Excluding AOCI) Individual Investments -2.9% 8.2% 10.4% 13.0% 11.7% Retirement Plans 18.3% 17.0% 18.6% 20.4% 19.5% Individual Protection 10.4% 8.4% 9.5% 10.2% 10.3% Previously Reported Consolidated Financial Highlights Net operating return on average equity excluding AOCI 6.0% 10.9% 11.7% 12.4% 13.2% Net operating earnings per average diluted share $ 1.53 $ 2.99 $ 3.49 $ 3.98 $ 4.70 2002 2003 2004 2005 2006 Currently Reported Operating Margin Individual Investments (pre-tax operating earnings to average account values) -0.26% 0.44% 0.48% 0.48% 0.43% Retirement Plans (pre-tax operating earnings to average account values) 0.35% 0.31% 0.30% 0.28% 0.31% Individual Protection (pre-tax operating earnings to operating revenues) 19.0% 16.1% 18.0% 19.3% 20.5% Currently Reported Return on Average Allocated Capital (Excluding AOCI) Individual Investments -2.3% 8.6% 10.7% 13.5% 12.3% Retirement Plans 18.8% 17.4% 18.9% 20.7% 19.8% Individual Protection 10.5% 8.5% 9.6% 10.3% 10.3% Currently Reported Consolidated Financial Highlights Net operating return on average equity excluding AOCI 6.1% 11.1% 12.0% 12.4% 13.2% Net operating earnings per average diluted share $ 1.66 $ 3.06 $ 3.59 $ 4.06 $ 4.77 * On April 30, 2007, the Company completed the purchase of NWD Investment Management, now known as Nationwide Funds Group (NFG). The Company has presented its historical financial statements for all periods presented to reflect 1) the combined results of NFS and NFG as though the companies were combined for all periods presented and 2) the change in accounting principle related to the accrual for legal costs associated with litigation defense and regulatory investigations. Historically, the Company accrued for these costs by estimating the ultimate costs of such activity. Beginning second quarter 2007, the Company’s accrual for such legal expenses includes only the amount for services that have been provided but not yet paid. The Company believes the newly adopted accounting principle is preferable because it more accurately reflects expenses in the periods in which they are incurred. The Company continues to estimate and accrue amounts expected to be paid for litigation and regulatory investigation loss contingencies. 30
  34. 34. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) 2002 2003 2004 2005 2006 Operating Revenues Asset fees 547.6$ 547.2$ 620.7$ 639.9$ 691.2$ Cost of insurance charges 266.5 371.3 379.7 388.5 402.0 Administrative fees 125.5 107.7 117.9 114.9 139.1 Surrender fees 85.3 94.2 104.3 98.2 83.7 Total policy charges 1,024.9 1,120.4 1,222.6 1,241.5 1,316.0 Traditional life premiums 302.3 426.2 402.7 399.9 441.5 Net investment income 1,892.5 2,198.0 2,231.7 2,344.1 2,299.4 Operating realized gains and (losses) 8.9 15.7 8.7 2.6 9.6 Other income 196.3 296.2 375.9 439.4 521.9 Total operating revenues 3,424.9 4,056.5 4,241.6 4,427.5 4,588.4 Benefits Interest credited 1,260.7 1,367.6 1,328.3 1,380.9 1,381.5 Life insurance and annuity benefits 392.0 581.7 548.6 574.9 646.8 Policyholder dividends 63.5 105.7 101.4 107.3 90.7 Total benefits 1,716.2 2,055.0 1,978.3 2,063.1 2,119.0 Expenses Commissions 629.0 594.9 565.4 546.7 648.4 General operating expenses 726.4 869.0 914.2 895.9 1,001.5 Debt extinguishment costs - - - 21.7 - Deferral of policy acquisition costs (668.6) (620.1) (539.2) (489.0) (588.4) Subtotal 686.8 843.8 940.4 975.3 1,061.5 Amortization of policy acquisition costs 674.6 394.6 430.4 479.4 472.6 Amortization of value of business acquired 15.2 46.3 52.3 45.0 46.0 Interest expense on debt 76.7 95.8 102.3 108.0 103.7 Total expenses 1,453.3 1,380.5 1,525.4 1,607.7 1,683.8 Pre-tax operating earnings 255.4$ 621.0$ 737.9$ 756.7$ 785.6$ Federal income tax expense 35.2 155.5 189.2 133.0 67.5 Net operating earnings 220.2$ 465.5$ 548.7$ 623.7$ 718.1$ Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 14.4 69.0 64.8 63.0 59.7 Realized losses on sales, net of hedging (9.8) (20.8) (19.5) (18.4) (48.9) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (78.6) (110.7) (67.1) (26.9) (11.0) Credit default swaps (4.2) 8.6 0.3 (4.8) (0.8) Derivatives, excluding hedging gains and losses on sales and credit default swaps 6.2 0.8 (3.4) 0.8 (0.4) Amounts credited to policyholder dividend obligation - (3.5) (4.7) (3.3) - Adjustment to VOBA amortization 15.1 0.4 3.0 1.5 1.0 Subtotal (56.9) (56.2) (26.6) 11.9 (0.4) Adjustment to amortization related to net realized gains (losses), net of taxes - - - (0.5) 6.3 Discontinued operations, net of taxes (1.5) (1.3) (2.3) (24.7) - Cumulative effect of adoption of accounting principles, net of taxes - (0.6) (3.4) - - Net income 161.8$ 407.4$ 516.4$ 610.4$ 724.0$ (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). Note: The results of operations of Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) are reflected as discontinued operations for 2005 and all prior years. In addition, the results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. Historical Consolidated Earnings Trends 31
  35. 35. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions, except per share data) 2002 2003 2004 2005 2006 Assets Investments Securities available-for-sale: Fixed maturity securities 27,754.2$ 30,787.1$ 31,516.8$ 30,106.0$ 28,160.0$ Equity securities 134.7 128.7 87.0 75.6 67.6 Trading assets - 4.9 15.9 34.4 24.3 Mortgage loans 8,486.5 8,964.7 9,267.5 9,148.6 8,909.8 Real estate 145.6 123.4 108.3 108.7 76.7 Policy loans 986.4 963.2 987.2 930.6 966.9 Other long-term investments 205.0 194.6 604.2 691.9 780.1 Short-term investments 1,420.1 1,970.3 2,009.9 2,073.2 2,215.6 Total investments 39,132.5 43,136.9 44,596.8 43,169.0 41,201.0 Cash 26.3 15.3 60.3 49.5 83.4 Accrued investment income 402.4 439.6 428.7 396.3 373.8 Deferred policy acquisition costs 3,026.9 3,329.9 3,561.1 3,685.4 3,851.0 Value of business acquired 569.3 523.0 480.4 449.7 392.7 Other intangible assets 58.7 52.3 48.7 45.6 43.6 Goodwill 399.4 406.7 382.3 364.5 359.0 Other assets 1,679.1 2,396.5 2,659.7 2,237.4 2,531.9 Assets held in separate accounts 50,348.3 60,937.6 64,903.2 65,963.8 70,694.7 Total assets 95,642.9$ 111,237.8$ 117,121.2$ 116,361.2$ 119,531.1$ Liabilities and shareholders' equity Future policy benefits and claims 36,274.3$ 40,049.3$ 41,077.2$ 39,748.1$ 38,097.8$ Short-term debt 2.7 205.3 230.8 252.3 85.2 Long term debt 1,197.6 1,405.6 1,406.0 1,398.0 1,398.5 Other liabilities 3,396.3 3,771.1 4,270.0 3,611.4 3,632.2 Liabilities related to separate accounts 50,348.3 60,937.6 64,903.2 65,963.8 70,694.7 91,219.2 106,368.9 111,887.2 110,973.6 113,908.4 Shareholders' equity 4,423.7 4,868.9 5,234.0 5,387.6 5,622.7 Total liabilities and shareholders' equity 95,642.9$ 111,237.8$ 117,121.2$ 116,361.2$ 119,531.1$ 2002 2003 2004 2005 2006 Total capital, including AOCI 5,621.3$ 6,274.5$ 6,640.0$ 6,785.6$ 7,021.2$ Less AOCI 400.3 504.9 432.2 100.7 31.9 Total capital, excluding AOCI 5,221.0$ 5,769.6$ 6,207.8$ 6,684.9$ 6,989.3$ Leverage including AOCI Long-term debt--to--total capital 21.3% 22.4% 21.2% 20.6% 19.9% Leverage excluding AOCI Long-term debt--to--total capital 22.9% 24.4% 22.6% 20.9% 20.0% Ratio of pre-tax operating earnings before interest expense to interest expense 4.3X 7.5X 8.2X 8.0X 8.6X Historical Consolidated Balance Sheet Capital Structure 32
  36. 36. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) 2002 2003 2004 2005 2006 Operating Revenues Asset fees 375.6$ 370.9$ 435.5$ 461.9$ 511.4$ Administrative fees 23.3 12.1 15.7 16.2 20.4 Surrender fees 61.1 56.0 62.2 62.1 56.6 Total policy charges 460.0 439.0 513.4 540.2 588.4 Net Investment Income General account assets 717.4 886.5 895.3 895.9 806.3 Charge for invested capital (36.4) (26.1) (22.5) (26.0) (25.2) Total net investment income 681.0 860.4 872.8 869.9 781.1 Premiums on income products 69.4 93.4 90.8 102.9 142.5 Other income 14.5 11.7 10.0 15.2 14.6 Total operating revenues 1,224.9 1,404.5 1,487.0 1,528.2 1,526.6 Benefits Interest credited 513.2 637.5 606.1 589.1 528.3 Immediate annuity benefits 55.1 82.0 76.1 89.2 126.9 Policy benefits 61.6 78.5 63.1 66.2 75.5 Total benefits 629.9 798.0 745.3 744.5 730.7 Expenses Commissions 381.7 345.5 288.3 257.5 340.5 General operating expenses 202.5 208.6 219.4 189.7 223.9 Deferral of policy acquisition costs (414.7) (376.8) (293.6) (250.7) (350.8) Subtotal 169.5 177.3 214.1 196.5 213.6 Amortization of policy acquisition costs 528.2 228.3 276.1 329.3 352.7 Amortization of value of business acquired 3.3 6.3 7.5 7.2 6.5 Total expenses 701.0 411.9 497.7 533.0 572.8 Pre-tax operating earnings (loss) (106.0)$ 194.6$ 244.0$ 250.7$ 223.1$ Key Ratios/Statistics Average Account Values: General account 10,793.7$ 15,340.9$ 16,211.1$ 15,966.7$ 14,041.3$ Separate account 30,091.0 29,170.6 34,198.8 35,600.5 37,223.3 Advisory services program - 7.8 99.1 309.3 508.1 Total average individual investment account values 40,884.7$ 44,519.3$ 50,509.0$ 51,876.5$ 51,772.7$ Earned rate 6.62% 5.78% 5.52% 5.61% 5.74% Credited rate 4.73% 4.16% 3.74% 3.69% 3.76% Interest spread on average general account values 1.88% 1.62% 1.78% 1.92% 1.98% Income from mortgage loan prepayments and bond call premiums 0.06% 0.05% 0.12% 0.21% 0.15% Base interest spread on average general account values 1.82% 1.57% 1.66% 1.71% 1.83% Total asset fees to average separate account values 1.25% 1.27% 1.27% 1.30% 1.37% General operating expenses to average account values 0.50% 0.47% 0.43% 0.37% 0.43% Pre-tax operating earnings (loss) to average account values (0.26%) 0.44% 0.48% 0.48% 0.43% Pre-tax operating earnings (loss) to operating revenues (8.7%) 13.9% 16.4% 16.4% 14.6% Average allocated capital 1,658.8$ 1,805.6$ 1,747.0$ 1,671.0$ 1,499.3$ Return on average allocated capital (2.3%) 8.6% 10.7% 13.5% 12.3% Note: The results of operations of NFS Bermuda are reflected as discontinued operations for 2005 and all prior years. ($ in millions) 2002 2003 2004 2005 2006 Individual Variable Annuities Balance, beginning of period 36,345.7$ 31,881.9$ 38,835.9$ 41,481.9$ 40,796.0$ Deposits 5,038.1 5,023.8 4,409.2 3,661.2 5,034.9 Withdrawals and surrenders (4,852.1) (4,347.8) (4,964.4) (5,574.2) (6,133.3) Net flows 186.0 676.0 (555.2) (1,913.0) (1,098.4) Investment performance/interest credited (4,852.6) 6,757.7 3,681.9 2,922.1 4,742.3 Policy charges (459.7) (437.2) (515.0) (543.4) (576.2) Benefits and other (0.6) (42.5) 34.3 9.0 (58.9) Acquisitions/(terminations), net 663.1 - - (1,160.6) - Balance, end of period 31,881.9$ 38,835.9$ 41,481.9$ 40,796.0$ 43,804.8$ Individual Fixed Annuities Balance, beginning of period 4,250.2$ 7,338.1$ 8,630.7$ 8,902.5$ 8,041.8$ Deposits 2,392.3 1,553.4 672.9 160.9 178.2 Withdrawals and surrenders (474.4) (605.1) (753.6) (1,044.0) (1,893.8) Net flows 1,917.9 948.3 (80.7) (883.1) (1,715.6) Policyholder interest credited 298.6 364.8 362.7 327.7 284.4 Policy charges (3.6) (8.1) (9.9) (11.4) (10.6) Benefits and other (2.8) (12.4) (0.3) (4.3) (63.9) Acquisitions/(terminations), net 877.8 - - (289.6) - Balance, end of period 7,338.1$ 8,630.7$ 8,902.5$ 8,041.8$ 6,536.1$ Income Products 1,676.5$ 1,840.7$ 1,901.6$ 1,978.3$ 2,025.6$ Advisory Services Program -$ 26.6$ 195.9$ 411.5$ 597.1$ Total individual investment account values 40,896.5$ 49,333.9$ 52,481.9$ 51,227.6$ 52,963.6$ Historical Earnings Trends Individual Investments Individual Investments Account Value Activity 33
  37. 37. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) 2002 2003 2004 2005 2006 Individual Variable Annuities BEST of AMERICA products 25,880.2$ 31,058.5$ 33,573.0$ 32,937.0$ 36,106.8$ Private label annuities 5,339.5 7,123.4 7,350.9 7,398.9 7,319.7 Nationwide Financial Network and other 662.2 654.0 558.0 460.1 378.3 Total individual variable annuities 31,881.9$ 38,835.9$ 41,481.9$ 40,796.0$ 43,804.8$ Individual Fixed Annuities 7,338.1$ 8,630.7$ 8,902.5$ 8,041.8$ 6,536.1$ Income Products 1,676.5$ 1,840.7$ 1,901.6$ 1,978.3$ 2,025.6$ Advisory Services Program -$ 26.6$ 195.9$ 411.5$ 597.1$ Total individual investment account values 40,896.5$ 49,333.9$ 52,481.9$ 51,227.6$ 52,963.6$ ($ in millions) 2002 2003 2004 2005 2006 Individual Variable Annuities BEST of AMERICA products 3,824.7$ 4,066.8$ 3,674.3$ 3,135.5$ 4,390.9$ Private label annuities 795.3 659.3 449.0 346.6 356.6 Nationwide Financial Network and other 2.5 9.3 7.0 4.7 3.6 Total individual variable annuities 4,622.5$ 4,735.4$ 4,130.3$ 3,486.8$ 4,751.1$ Individual Fixed Annuities 2,564.6$ 1,824.5$ 858.8$ 194.4$ 186.5$ Income Products 143.2$ 153.2$ 168.4$ 196.7$ 230.7$ Advisory Services Program -$ 25.7$ 181.0$ 231.3$ 222.8$ Total individual investment sales 7,330.3$ 6,738.8$ 5,338.5$ 4,109.2$ 5,391.1$ ($ in millions) 2002 2003 2004 2005 2006 Individual Variable Annuities Non-affiliated Independent broker/dealers 1,750.1$ 1,683.7$ 1,534.6$ 1,304.3$ 1,606.5$ Wirehouse and regional firms 1,264.1 1,086.4 991.6 821.9 1,171.8 Financial institutions 1,313.9 1,657.0 1,270.8 1,031.5 1,558.8 Life specialists - 3.4 2.3 0.3 0.8 Affiliated Nationwide Retirement Solutions - - - - - Nationwide agents 214.8 185.3 224.6 230.3 245.1 Nationwide Financial Network 79.6 119.6 106.4 98.5 168.1 Total individual variable annuities 4,622.5$ 4,735.4$ 4,130.3$ 3,486.8$ 4,751.1$ Individual Fixed Annuities Non-affiliated Independent broker/dealers 47.3$ 48.7$ 17.1$ 7.0$ 13.4$ Wirehouse and regional firms 133.0 58.0 20.6 8.2 9.8 Financial institutions 2,224.0 1,628.7 774.3 129.4 72.4 Pension plan administrators 3.4 - - - - Affiliated Nationwide Retirement Solutions 13.2 - - - - Nationwide agents 126.0 60.7 38.6 44.3 79.7 Nationwide Financial Network 17.7 28.4 8.2 5.5 11.2 Total individual fixed annuities 2,564.6$ 1,824.5$ 858.8$ 194.4$ 186.5$ Income Products Non-affiliated Independent broker/dealers 61.9$ 75.6$ 70.8$ 76.9$ 98.1$ Wirehouse and regional firms 14.2 44.9 52.2 63.4 84.7 Financial institutions 65.4 15.5 23.4 29.2 30.7 Pension plan administrators - - - - - Affiliated Nationwide Retirement Solutions - - - - - Nationwide agents 1.7 7.5 8.7 12.7 11.6 Nationwide Financial Network - 9.7 13.3 14.5 5.6 Total income products 143.2$ 153.2$ 168.4$ 196.7$ 230.7$ Advisory Services Program Non-affiliated Independent broker/dealers -$ 21.2$ 160.0$ 205.3$ 180.5$ Wirehouse and regional firms - - - - - Financial institutions - 3.0 8.9 8.1 15.5 Pension plan administrators - - - - - Affiliated Nationwide Financial Network - 1.5 12.1 17.9 26.8 Total advisory services program -$ 25.7$ 181.0$ 231.3$ 222.8$ Total individual investment sales 7,330.3$ 6,738.8$ 5,338.5$ 4,109.2$ 5,391.1$ Individual Investments Sales by Channel Account Values by Product Individual Investments Individual Investments Sales by Product 34
  38. 38. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) 2002 2003 2004 2005 2006 Operating Revenues Asset fees 151.5$ 146.9$ 150.8$ 137.8$ 134.0$ Administrative fees 15.9 8.8 8.9 8.7 36.0 Surrender fees 6.7 5.7 12.1 8.2 4.5 Total policy charges 174.1 161.4 171.8 154.7 174.5 Net investment income 655.3 662.9 647.6 661.4 652.2 Other income 74.3 109.8 163.1 229.1 288.9 Total operating revenues 903.7 934.1 982.5 1,045.2 1,115.6 Benefits Interest credited 467.8 458.9 446.1 455.0 451.6 Expenses Commissions 85.8 92.7 111.3 133.3 151.6 General operating expenses 198.5 222.2 238.7 251.9 282.8 Deferral of policy acquisition costs (49.2) (43.8) (41.5) (37.2) (36.8) Subtotal 235.1 271.1 308.5 348.0 397.6 Amortization of policy acquisition costs 53.7 45.7 39.9 47.4 38.3 Amortization of value of business acquired (0.3) 2.0 4.7 3.5 6.9 Total expenses 288.5 318.8 353.1 398.9 442.8 Pre-tax operating earnings 147.4$ 156.4$ 183.3$ 191.3$ 221.2$ Key Ratios/Statistics Average Account Values: General account 8,888.5$ 9,786.0$ 10,175.6$ 10,881.2$ 11,093.0$ Separate account 19,505.3 18,743.7 20,287.9 19,792.0 18,512.4 Non insurance assets 2,142.2 4,312.4 8,315.6 12,500.3 16,515.0 Administration only 11,349.8 17,184.0 21,995.8 24,289.9 25,904.7 Total average retirement plan account values 41,885.8$ 50,026.1$ 60,774.9$ 67,463.4$ 72,025.1$ Earned rate 7.37% 6.77% 6.36% 6.08% 5.88% Credited rate 5.26% 4.69% 4.38% 4.18% 4.07% Interest spread on average general account values 2.11% 2.08% 1.98% 1.90% 1.81% Income from mortgage loan prepayments and bond call premiums 0.11% 0.21% 0.18% 0.20% 0.09% Base interest spread on average general account values 2.00% 1.87% 1.80% 1.70% 1.72% Total asset fees to average separate account values 0.78% 0.78% 0.74% 0.70% 0.72% General operating expenses to average account values 0.47% 0.44% 0.39% 0.37% 0.39% Pre-tax operating earnings to average account values 0.35% 0.31% 0.30% 0.28% 0.31% Pre-tax operating earnings to operating revenues 16.3% 16.7% 18.7% 18.3% 19.8% Average allocated capital 611.7$ 689.2$ 724.4$ 773.9$ 815.1$ Return on average allocated capital 18.8% 17.4% 18.9% 20.7% 19.8% Note: The results of operations of The 401(k) Company are reflected as discontinued operations for 2006 and all prior years. ($ in millions) 2002 2003 2004 2005 2006 Private Sector Pension Plans Balance, beginning of period 17,769.7$ 18,170.0$ 22,789.2$ 26,503.1$ 29,758.8$ New deposits/sales 4,615.3 4,825.5 5,619.9 6,104.9 6,203.8 Participant withdrawals and surrenders (3,697.4) (3,824.9) (4,308.0) (4,721.0) (5,266.4) Net flows 917.9 1,000.6 1,311.9 1,383.9 937.4 Investment performance/interest credited (1,843.5) 3,811.9 2,596.3 2,083.3 3,654.9 Policy charges and other (148.3) (193.3) (194.3) (211.5) (226.9) Net, case acquisitions/(terminations) (57.0) - - - (1,478.9) Acquired business 1,531.2 - - - - Balance, end of period 18,170.0$ 22,789.2$ 26,503.1$ 29,758.8$ 32,645.3$ Public Sector Pension Plans Balance, beginning of period 26,076.2$ 23,537.6$ 34,545.4$ 38,925.2$ 40,092.0$ New deposits/sales 2,581.8 3,178.9 3,637.1 3,881.6 4,018.4 Participant withdrawals and surrenders (2,082.0) (1,878.3) (2,242.5) (2,638.9) (2,412.8) Net flows 499.8 1,300.6 1,394.6 1,242.7 1,605.6 Investment performance/interest credited (2,205.4) 4,781.0 2,869.6 2,577.1 3,802.9 Policy charges and other (62.3) (57.6) (65.8) (69.4) (94.8) Net, case acquisitions/(terminations) (770.7) 4,983.8 181.4 (2,583.6) (1,453.9) Balance, end of period 23,537.6$ 34,545.4$ 38,925.2$ 40,092.0$ 43,951.8$ Total retirement plan account values 41,707.6$ 57,334.6$ 65,428.3$ 69,850.8$ 76,597.1$ Historical Earnings Trends Retirement Plans Retirement Plans Account Value Activity 35
  39. 39. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2007 ($ in millions) 2002 2003 2004 2005 2006 Private Sector Pension Plans BEST of AMERICA annuity products 9,229.3$ 9,818.1$ 8,845.8$ 7,791.9$ 7,557.1$ BEST of AMERICA trust products 2,878.3 6,212.3 10,558.4 14,479.5 18,834.1 Subtotal BEST of AMERICA 12,107.6 16,030.4 19,404.2 22,271.4 26,391.2 Nationwide Financial Network products 1,494.5 1,584.1 1,483.7 1,378.4 1,268.2 Nationwide employee and agent benefit plans 3,954.2 4,530.2 4,985.3 5,504.2 4,435.6 Other 613.7 644.5 629.9 604.8 550.3 Total private sector pension plans 18,170.0$ 22,789.2$ 26,503.1$ 29,758.8$ 32,645.3$ Public Sector Pension Plans IRC Section 457 annuities 12,065.1$ 13,916.9$ 14,889.2$ 15,790.2$ 15,979.5$ Administration only agreements 11,472.5 20,628.5 24,036.0 24,301.8 27,972.3 Total public sector pension plans 23,537.6$ 34,545.4$ 38,925.2$ 40,092.0$ 43,951.8$ Total retirement plan account values 41,707.6$ 57,334.6$ 65,428.3$ 69,850.8$ 76,597.1$ ($ in millions) 2002 2003 2004 2005 2006 Private Sector Pension Plans BEST of AMERICA annuity products 2,611.2$ 2,034.9$ 1,679.7$ 1,371.1$ 1,230.2$ BEST of AMERICA trust products 1,617.0 2,110.2 3,232.0 3,974.9 4,504.0 Subtotal BEST of AMERICA 4,228.2 4,145.1 4,911.7 5,346.0 5,734.2 Nationwide Financial Network products 95.4 366.4 335.8 205.9 188.2 Other 46.8 31.0 28.1 75.8 69.4 Total private sector pension plans 4,370.4$ 4,542.5$ 5,275.6$ 5,627.7$ 5,991.8$ Public Sector Pension Plans IRC Section 457 annuities 1,375.6$ 1,442.4$ 1,514.2$ 1,544.8$ 1,533.3$ Administration only agreements 1,206.2 1,735.0 2,122.9 2,336.9 2,484.9 Total public sector pension plans 2,581.8$ 3,177.4$ 3,637.1$ 3,881.7$ 4,018.2$ Total retirement plan sales 6,952.2$ 7,719.9$ 8,912.7$ 9,509.4$ 10,010.0$ ($ in millions) 2002 2003 2004 2005 2006 Private Sector Pension Plans Non-affiliated Independent broker/dealers 2,243.0$ 2,534.6$ 3,154.4$ 3,412.0$ 3,594.0$ Wirehouse and regional firms 726.5 742.2 863.7 953.7 1,104.7 Financial institutions 519.0 411.4 493.3 551.2 559.8 Pension plan administrators 744.0 574.8 476.1 469.0 532.8 Affiliated Nationwide Retirement Solutions 38.1 32.5 28.8 33.0 32.0 Nationwide agents 45.6 58.1 71.2 95.5 80.3 Nationwide Financial Network 54.2 188.9 188.1 113.3 88.2 Total private sector pension plans 4,370.4$ 4,542.5$ 5,275.6$ 5,627.7$ 5,991.8$ Public Sector Pension Plans Nationwide Retirement Solutions 2,581.8$ 3,177.4$ 3,637.1$ 3,881.7$ 4,018.2$ Total retirement plan sales 6,952.2$ 7,719.9$ 8,912.7$ 9,509.4$ 10,010.0$ Sales by Channel Account Values by Product Retirement Plans Retirement Plans Sales by Product Retirement Plans 36

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