The document is Nationwide's 2007 annual summary which provides financial highlights and discusses key accomplishments. It summarizes that Nationwide earned $2 billion in net income in 2007 and operating revenue grew 3%. It also discusses focusing on strengthening customer relationships, expanding property and casualty products, progress in Nationwide Financial including acquisitions, and emphasizing diversity and inclusion.

1. annual summary
2007

2. CONTENTS
01 financial highlights
02 letter to policyholders
04 key accomplishments
08 diversity & inclusion
10 corporate citizenship
12 products & services
14 about Nationwide
16 comments about 2007 results of operations

3.
(Unaudited) (Based on U.S. generally accepted accounting principles) 2007 2006 (1) % Change
Results of Operations* (in millions of U.S. dollars, except key performance indicators)
Income Statement
Premium and policy charges $ 17,688 $ 17,427 1.5
Net investment income 3,579 $ 3,398 5.3
Net realized gains on investments, hedging instruments, and hedged items 337 236 42.8
Other income 1,193 1,078 10.7
Total revenue 22,797 22,139 3.0
Total benefits and expenses 20,115 19,245 4.5
Federal and foreign income taxes and other charges2 688 784 (12.2)
Net income $ 1,994 $ 2,110 (5.5)
Balance Sheet
Total assets $ 161,090 $ 160,216 0.5
Total reserves 49,356 52,412 (5.8)
Total liabilities 142,800 143,376 (0.4)
Non-controlling interests 2,303 2,548 (9.6)
Total policyholders’equity $ 15,987 $ 14,292 11.9
Net Income (Loss) by Segment
Property & Casualty Insurance Operations $ 987 $ 1,206 (18.2)
Scottsdale 246 255 (3.5)
Life and Retirement Savings 627 724 (13.4)
Corporate3 134 (75) 278.7
Total $ 1,994 $ 2,110 (5.5)
Key Performance Indicators
Total revenue growth 3.0% 5.5% †
Return on average total equity 13.2% 15.8% †
Statutory Property and Casualty trade combined ratio 97.4% 93.6% †
Statutory Property and Casualty trade combined ratio (excluding Nationwide Indemnity) 96.0% 92.2% †
Nationwide Financial Services (NFS) earnings per share4 $ 4.37 $ 4.80 (9.0)
Full-time equivalent employees (end of period) 36,023 35,877 0.4
*See Comments on 2007 Results of Operations on page 16 † Not applicable or not meaningful.
1 2006 results were restated for a change in accounting principle resulting in a $3 million reduction in net income. 2 Other charges include net income attributable to non-controlling interests, discontinued operations, net of tax,
and cumulative effect of adoption of accounting principle, net of tax. 3 Includes charges for net income attributable to non-controlling interests. 4 Per diluted common share, which takes into consideration all common stock
equivalents. Note: Certain prior year amounts were reclassified to conform to the 2007 presentation.
Combined Total Revenue
(in billions)
03 04 05 06 07
$18.2
$19.8
$21.0
$22.1
$22.8
Combined Net Income
(in millions)
03 04 05 06 07
$659
$1,014
$1,149
$2,110 $1,994
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financial highlights Years Ended December 31

4. letter to policyholders
Nationwide had another successful year in 2007. We
made very good progress on a number of significant
projects that are critical to our future.
We earned $2.0 billion in net income, and our
operating revenue grew by 3.0 percent over 2006.
Our net operating income totaled $1.75 billion.
While these results are gratifying, we must be realistic
about the conditions that helped create them.
Recently we’ve enjoyed very advantageous business
conditions in our property and casualty businesses.
Our losses have been much lower than expected,
mostly due to favorable hurricane experience.
Nationwide Financial continues to make good progress
toward its strategic financial objectives, and its
performance in 2007 benefited from a one-time item
relating to deferred acquisition costs. Our investment
performance was strong as we took advantage of
opportunities in the market while they lasted.
We’re in a very competitive industry, so we must
build on our past success and financial performance
to meet the new challenges of the future. While
we pursue greater efficiency, we also know future
success will not be determined solely on how well we
manage our expenses. Growing our revenue, the top
line, is our primary goal. We need to invest in things
that help us increase revenue – our operational
capability to help us better deliver an On Your Side
experience, and our marketing and advertising to
reach more and more consumers.
In 2007, we took some significant steps that will help
us achieve our goals in 2008 and beyond. Our focus
on the On Your Side experience is helping us learn
how we can better understand and serve the needs of
our customers, and we have many projects under way
that will help us provide a differentiating experience.
In our Raleigh, N.C., service center we’ve examined
the ways we interact with our exclusive agents and
the customers they serve, and made several changes
that improved their overall level of satisfaction.
For example, we’ve enabled our phone
representatives to complete more than a dozen
different transactions while the customer is on
the phone – procedures that previously had been
handed off to processing centers. We’re now
providing our agents advance notice of premium
changes so they can initiate conversations with
their customers to better advise them about
their needs and how their products work. We’ve
also strengthened our culture to clearly focus
on customers. This includes hiring people with a
Preparing to meet
new challenges
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5. strong customer orientation, changing learning and
development systems, and creating rewards based
upon customer service goals.
These are some very meaningful changes we’re
making to benefit our customers.
Our associates’commitment to the On Your Side effort
demonstrates their ability to adapt and respond in
times of great change. To build on this, we’re investing
heavily in becoming more competitive in serving
targeted segments of customers and realigning
our distribution methods to meet their needs.
Individual customer requirements have changed very
dramatically in the last 20 years, and we can no longer
approach the market with a one-size-fits-all approach.
Whatever challenges we face in the future, we know
we’ll succeed by looking at our business through the
lens of the customer. Our financial success enables
us to face the future from a position of strength and
to continually focus on improving our customers’
experience with us.
W.G. Jurgensen
Chief Executive Officer
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6. key accomplishments
Nationwide knows that the customers who value us most are the ones who build a relationship with us – either
through an agent, a caring associate or through one of the many other ways they interact with us.
We know our customer experience is what will separate us from the pack of organizations clamoring for people’s
business. And that’s what we’ve continued to focus on in 2007.
We’ve worked to strengthen our customer relationships – by simplifying processes, developing new products
and providing the options our customers say they want. We know we’ll be a better company by looking at our
business from our customers’ point of view.
Strengthening our customer relationships
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7. Property and Casualty
Customers prefer to buy insurance when and how
they want it, and they want options. Nationwide sells
a unique mix of product lines – auto, commercial,
specialty and homeowners insurance – through
multiple distribution channels such as exclusive and
independent agents, toll-free contact numbers, the
Internet, and employer and group endorsers. This
allows Nationwide to meet the diverse needs of
its customers, while paving the way for long-term
growth and profitability. We are focused on the
customer, distribution excellence and operational
simplicity as part of our strategy for success.
A key success in 2007 was a direct written premium
growth rate of 1.3 percent, despite a weak economy.
While that may seem small, we did well when
compared to the insurance industry as whole, which
had negative growth for the first time since 1943,
according to the Insurance Information Institute.
A major part of our strategy featured finding new and
better ways to enhance the customer experience. New
programs, like piloting new online payment programs
and the creation of simpler billing statements, were
unveiled during the past year. And existing ones, like
our Nationwide AutoWatch program, were expanded
and refined. More than 60,000 Nationwide customers
were able to see their car being repaired though this
innovative program in 2007.
We expanded our specialty capability through the
acquisition of three large independent agencies. The
largest of these was Eastwood Insurance Services, a
$217 million independent specialty insurance agency
with 48 locations in five states. Based in Anaheim
Hills, Calif., Eastwood sells insurance to drivers with
less-than-perfect driving records.
While there were no major hurricanes in 2007,
Nationwide’s property and casualty business
did provide On Your Side service to customers
experiencing claims. From helping many customers
recover from spring hail storms and supporting
customers who experienced the wildfires in
California, we were there for our customers when
they needed us. Throughout the year, we were
able to concentrate on delivering day-to-day
outstanding experiences.
We also spent a great deal of time assessing our
exposure in high-risk areas and improving the
balance between the interests of customers and the
company. As a result, we’re in a much better position
to fulfill our commitments to our customers.
We’ll build on these 2007 successes as we focus
on fulfilling our On Your Side promise to customers
and operating profitably, which will lead to gains in
market share.
Nationwide Financial
2007 was a year of solid progress in Nationwide
Financial’s effort to accelerate growth and improve
returns for shareholders. While turmoil in the
capital markets and the threat of recession create
uncertainty in the short term, Nationwide Financial
is well positioned for growth from a fundamental
business perspective. We’re optimistic that
enhancements to our operations, combined with
the addition of higher return businesses, disciplined
expense management and an increasingly efficient
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8. key accomplishments
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capital structure continue to move us closer to our
long-term financial targets.
The three primary components of our strategy are:
• Strengthening our core businesses, while
improving overall efficiency and profitability
• Building new sources of earnings
• Effectively managing capital
To that end, we made great progress during 2007
achieving improvements in core businesses and
acquiring higher-return businesses, while maintaining
disciplined expense and capital management.
Our strategy and a focus on simpler solutions in 2007
helped us set records in the following areas:
• Net operating earnings per share of $4.46*
• Operating revenues of $4.7 billion
• Customer funds managed and administered
• Sales of fixed-life products
• Sales of retirement plans
Nationwide Financial returned more than $650
million to shareholders through dividends and share
repurchases. We also increased dividends from
26 cents to 29 cents per share effective in 2008.
We completed the merger of the Nationwide
Federal Credit Union with Nationwide Bank, which
accelerated the bank’s road to profitability. We
also completed the acquisition of a mutual funds
business, now called Nationwide Funds Group. These
are major steps in our efforts to be a more complete
financial services product provider and strengthen
our competitive position.
*Excludes $0.37 related to a favorable unlocking of deferred acquisition costs.

9.
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Nationwide Better Health
When we created Nationwide Better Health in 2006,
we were the first company to fully integrate disease
and disability management. We currently provide
services for some 350 customers, reaching more
than 3 million individuals. Increasingly, customers are
taking advantage of our“true integration”solution,
using both our health and productivity services.
In 2007, we acquired two health promotion
organizations, WellCorp and INTERVENT, adding
biometric screenings, health risk assessments and
lifestyle health coaching. These new services provide
best practice health management tools that can help
employers focus on preventive solutions and early
identification of employee health issues.
We earned Full Disease Management Accreditation
for our disease and maternity management
services. The accreditation underscores Nationwide
Better Health’s commitment to provide quality
health management programs. We added two
new programs in 2007 – oncology and obesity
management. The former helps people undergoing
cancer treatment better manage its side effects.
The latter program focuses on lifestyle and behavior
changes to improve health.
Our goal is to help clients keep their employees
healthier and improve their lifestyle, while lowering
medical expenses and reducing absenteeism.
The Customer Experience
We’ve come a long way since improving our financial
discipline and achieving record growth in net income
by 2006. In 2007, we sharpened our focus on the
value we create for our agent partners and customers.
We took the next significant step – re-engineering
the customer experience to improve customer loyalty
and their willingness to recommend us to others. We
strongly believe a superior customer experience will
lead us to sustainable and significant growth.
Nationwide’s focus on operational excellence and
innovations began in our Raleigh, N.C., service center.
We incubated ideas we will export throughout our
company that will lead to a positive long-term effect
on customers’experiences. We also introduced
several guiding principles for all our associates as key
components on our roadmap for success.
Life Comes at You Fast®
Sometimes taking a risk can really pay off. Our 2007
Super Bowl ad featuring actor/rapper Kevin Federline
paid huge marketing dividends. The pre-event buzz
and favorable media hype garnered Nationwide
unprecedented free publicity. Nationwide continues
the highly successful campaign that uses humor to
attract consumers’attention to the need to protect
their property and investments.

10. diversity inclusion
In 2007, we continued concentrating on diversity
and inclusion. We appointed our first chief diversity
officer to guide a newly created Office of Diversity
and Inclusion. We also established a diversity and
inclusion senior leadership team to help drive
initiatives consistently across the company.
With help from leaders and associates throughout the
company, we developed diversity strategies in five
key areas:
• Workforce – to attract and retain the best talent
• Workplace – to fuel diverse thinking that leads
to innovation
• Marketplace – to grow our company and
increase market share
• Community – to build and maintain a positive
community reputation
• Suppliers – to enhance and build mutually
beneficial supplier relationships
Key accomplishments across these key areas include:
• Support before Congress of the Employment
Non-Discrimination Act. This act makes it illegal
to discriminate in the workplace because of
sexual orientation or gender identity.
|2007annualsummary
8
Valuing diverse voices
At Nationwide, we’re focused on building customer loyalty and creating a work environment where every
associate’s voice is heard and valued. It begins by creating an environment where we value the views of all our
customers, associates, communities and business partners. By understanding their unique differences and
preferences, we create a culture that promotes and embraces diverse points of view. Creating this environment
will help define our ability to create an On Your Side experience for customers and associates, today and tomorrow.
• Completion of diversity and inclusion
training by more than 80 percent of
Nationwide associates.
• Scoring a perfect 100 for the third
consecutive year on the Human Rights
Campaign’s fifth annual Corporate Equality
Index. The index measures corporate
America’s treatment of gay, lesbian, bisexual
and transgender employees, consumers and
investors. We were the only major company
in our industry to achieve this score.
• Expanding associate groups to provide
networking, mentoring and professional
development to all associates that help build
richer cultural experiences.
We’re committed to attracting, developing and
retaining a diverse and talented workforce that
represents the communities and markets we serve.
And we’re dedicated to creating an environment
where honest, open feedback is given freely and we
can reap the benefits of a richly diverse workforce.
This is how we’ll use the power of difference to serve
an ever-changing marketplace.

11.
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12. corporate citizenship
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Transforming lives
at critical moments

13.
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Nationwide has a long and proud tradition of corporate citizenship. Protecting people,
communities and the things they hold dear is part of who we are. Doing it at critical
moments is part of our unique charge.
We transform lives in three focused ways – through
philanthropy, volunteerism and workplace giving. Our
associates and agents, along with the Nationwide
Foundation, make a difference in the lives of people
in need.
In recognition of our corporate citizenship efforts,
Nationwide was awarded United Way of America’s
prestigious Spirit of America® Award for 2007. It is
United Way’s highest national honor, recognizing a
company’s outstanding commitment to improve lives
in local communities. Nationwide became only the
third company to earn this honor twice – we first won
the award in 2000.
In 2007, we helped launch Project Mentor in the
Columbus City Schools, in partnership with Big
Brothers Big Sisters. Project Mentor is a unique
program in which our associates mentor at-risk
students in schools during work hours. More than 300
Nationwide mentors, partnering with another 900
community volunteers, are helping change young lives
by focusing on education and improving graduation
rates. We’re proud to be the lead corporate sponsor of
this innovative program and pleased to take an active
role in helping students achieve academic success.
During 2007, the Nationwide Foundation’s $50 million
contribution to Nationwide Children’s Hospital,
announced in 2006, led to the creation of three
new endowed chairs named for former Nationwide
leaders: Dimon R. McFerson, Injury Research; Murray
D. Lincoln, Cardiothoracic Surgery; and George H.
Dunlap, Interventional Cardiology. These chairs are in
addition to the Dean W. Jeffers Chair in Neonatology
created in 2006.
These endowed chairs enable some of the world’s
leading physicians to continue their pioneering
research and clinical care, solidifying the hospital’s
position as a leader in pediatric health care.
In an unexpected tribute to the generosity of our
associates and agents, the hospital was renamed
Nationwide Children’s Hospital by its Board of
Directors. It’s also symbolic of our partnership with
the hospital and our commitment to improve the
lives of our communities’children.
Because we’re a company that helps our customers
prepare for the unforeseen, we have a proud tradition
of stepping up to help people affected by disaster. Our
support of the American Red Cross continued to assist
people in need in 2007. As a founding partner of the
American Red Cross Disaster Relief Fund, Nationwide
helps provide assistance at local levels everywhere
for people struck by disasters such as house fires and
wildfires, earthquakes, tornadoes and hurricanes.
These are just a few examples of the way Nationwide
makes a difference. Saving, rebuilding and enriching
lives is what Nationwide’s corporate citizenship is
all about. Every day, we turn critical moments into
powerful possibilities in places where our associates
and agents live and work. It’s another way we help
people when it matters most.

14. products services
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Property Casualty
Companies Products Distribution channels
Nationwide Insurance Insurance for autos, motorcycles, boats, RVs,
homes and businesses; individual and group
health insurance, health savings accounts,
health reimbursement accounts, special risk
coverage
Exclusive Nationwide agents, individual
brokers, sponsor organizations, employers,
banks and Internet
Allied Insurance Insurance for autos, motorcycles, boats, RVs,
homes, businesses and farms
Independent agents
Nationwide Agribusiness Insurance for farms and agribusinesses; loss-
control services
Direct sales, exclusive Nationwide agents,
independent agents
Scottsdale Insurance Specialty insurance products for business and
individuals, commercial and excess liability
coverage, pet insurance
General agents
Titan Insurance Specialty auto insurance Exclusive Nationwide agents, independent
agents
Health
Companies Products Distribution channels
Nationwide Better Health Health and wellness programs;
disease, disability, absence,
maternity and medical management
Direct sales

15. Banking Mortgage
Companies Products Distribution channels
Nationwide Bank CDs, loans, savings and checking accounts Internet, direct sales, service centers and ATMs
Nationwide Advantage Mortgage Mortgages, home equity lines of credit Internet, Nationwide exclusive agents,
direct sales
Life Insurance Retirement Savings
Companies Products Distribution channels
Nationwide Financial Variable and fixed annuities, life insurance,
private-sector retirement plans, immediate
annuities
Financial planners, brokers, financial
institutions, pension plan administrators,
Nationwide Financial Network agents,
exclusive Nationwide agents
Nationwide Retirement Solutions Public-sector retirement plans Direct sales
Asset Management
Companies Products Distribution channels
Nationwide Funds Group Mutual funds Financial planners
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16. about Nationwide
Key facts about Nationwide
Approximately 36,000 employees
More than 16 million policies in force
Significant U.S. rankings
Property and Casualty rankings*
4th-largest homeowners insurer
6th-largest auto insurer
9th-largest commercial insurer
6th-largest total property and casualty insurer
*Source: A.M. Best 2006 DWP
Life and Retirement Savings rankings
#1 provider of defined contribution plans1
#7 provider of variable life insurance2
#13 writer of individual variable annuities3
#18 U.S. life insurer based on premium4
#15 U.S. life insurer based on admitted assets4
1
“Plan Sponsor” magazine, June 2007
2
Tillinghast Q3 2007
3
VARDS Q3 2007
4
A.M. Best Q3 2007
1 4
|2007annualsummary
Board of Directors
Lewis J. Alphin
James B. Bachmann
A. I. Bell
Timothy J. Corcoran
Yvonne M. Curl
Kenneth D. Davis
Keith W. Eckel
Fred C. Finney
W. G. Jurgensen
Office of the CEO
W. G. Jurgensen
Chief Executive Officer
Nationwide
Patricia R. Hatler
Executive Vice President
Chief Legal Officer
Nationwide
Terri L. Hill
Executive Vice President
Chief Administrative
Officer
Nationwide
Lawrence A. Hilsheimer
Executive Vice President
Chief Financial Officer
Nationwide
Michael C. Keller
Executive Vice President
Chief Information Officer
Nationwide
Daniel T. Kelley
M. Diane Koken
Lydia M. Marshall
Terry W. McClure
Barry J. Nalebuff
Ralph M. Paige
Arden L. Shisler
Jeffrey W. Zellers
James R. Lyski
Executive Vice President
Chief Marketing Officer
Nationwide
Michael D. Miller
President and Chief
Operating Officer
Scottsdale Insurance
Steve S. Rasmussen
President and Chief
Operating Officer
Property and Casualty
Insurance
Nationwide
Gail G. Snyder
Senior Vice President
Chief Investment Officer
Nationwide
Mark R. Thresher
President and Chief
Operating Officer
Nationwide Financial

17.
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18. comments on 2007 results of oper
TOTAL REVENUE
Combined total revenue for 2007 grew 3% to $22.8 billion, up
from $22.1 billion a year ago. This growth was driven primarily by
increases in premiums, policy charges and net investment income.
The increase in premiums over the prior year was a result of modest
increases in both policies in force and average premium per policy.
This increase was in spite of competitive pressures in the private
passenger auto, main-street commercial, non-coastal homeowners
and specialty markets. Policy charges grew more than 5% in 2007
over the prior year, based upon higher average account balances.
Net investment income increased 5% to $3.6 billion in 2007,
compared to $3.4 billion in 2006, as credit spreads expanded
considerably and the yield curve shifted from inverted to more
normally sloped. In response to these economic factors, the
Company moved to being more fully invested in long-term assets.
Net realized gains on investments, hedging instruments and hedged
items for 2007 increased significantly, up nearly 43% over 2006. The
significant increase is due to realized gains from the sale of equity
securities of $440 million. These sales occurred as the Company
shifted its investment strategy from equity to fixed maturity securities.
The realized gains were partially offset by $127 million of impairment
charges related to changes in valuations that were deemed other-
than-temporary. The higher level of other income was primarily due
to bank products and alternative investment returns.
NET INCOME
Combined net income for 2007 declined slightly from 2006 to $2.0
billion, a decrease of $116 million, or 6%. Loss and loss adjustment
expenses exceeded revenue growth due in part to frequency
(increased rate of occurrence) in auto claims and severity (average
per claim) in homeowner claims. Included in the increases are more
than 1,500 claims related to wildfires, for which we established
reserves of $122 million ($79 million after tax). Additional notable
items include the recognition of $127 million of other-than-
temporary impairment charges ($83 million after tax), reorganization
costs of $102 million ($66 million after tax) to change the distribution
model in Florida from exclusive to independent agencies, and the
favorable impact of unlocking deferred policy acquisition costs of
$36 million (after tax and minority interest). The Company’s effective
tax rate returned to historical levels of 22% in 2007 from 29% in 2006.
The 2006 increase in deferred taxes related to the excess of carrying
value over tax basis in NFS.
The Property and Casualty Insurance Operations (PCIO) segment
income declined $219 million or 18%. Modest revenue growth
was offset by increased loss frequency and severity for current year
claims. However, loss results are out-performing the industry and are
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19. rations
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2007annualsummary |
consistent with the trends of key competitors. Total benefits and
expenses were negatively impacted by increases in reserves for
wildfires and costs associated with the Florida agent reorganization
as discussed previously. Prior year reserve development continued
to exhibit favorable trends for the PCIO segment.
Scottsdale’s net income for 2007 was down slightly, $9 million or
4%, over the prior year. The slight decrease was consistent with the
4% decline in premium revenues. This decline was due to increased
competition for the specialty market customer. Due to increased
pressure for customer growth, standard carriers with strong capital
positions are aggressively writing policies for customers they were
not interested in over the last couple of years.
Net income from the Life Retirement Savings segment was
down $97 million or 13% primarily due to increased income tax
expense ($119 million) over 2006. The year-over-year increase in
income tax expense was a result of the release of tax contingency
reserves in 2006. Revenues were flat when compared to the prior
year as increases in asset fees ($82 million) and other income
($105 million) were offset by declines in realized investment gains
and losses ($175 million). Operating income before taxes was
consistent with prior year levels.
The Corporate segment captures investment results, discontinued
operations, non-controlling interests and all of the residual
operating results of Nationwide, including Nationwide Indemnity.
Nationwide Indemnity loss reserve development was fairly
consistent between 2007 and 2006. Pre-tax reserve strengthening
related to asbestos and environmental exposures was $225 million
($146 million after tax) in 2007, compared with $208 million ($135
million after tax) in 2006. After tax net income attributable to
non-controlling interests decreased in 2007 to $169 million, from
$232 million in 2006, which is commensurate with the net income
decrease in the Life Retirement Savings segment.
THE COMPANY
Nationwide is one of the largest insurance and financial services
companies in the U.S., with almost $23 billion in revenue and
$161 billion in assets (Fortune 104 in 2006). Nationwide consists of
three core businesses: domestic property and casualty insurance
operations, life insurance and retirement savings, and specialty
insurance lines underwritten through the Scottsdale family of
companies. The Company is also engaged in various strategic
investments including mortgage loan origination and servicing,
third party claims administration and real estate development.
Nationwide provides a full range of products and financial services
that includes auto, fire, life, health and commercial insurance;
administrative services; annuities; mutual funds; and retirement
plans. These products are offered through multiple distribution
channels.
Nationwide Mutual is the sole stockholder of Nationwide
Indemnity, a reinsurance company. Nationwide Indemnity holds
run-off environmental and asbestos business, which was assumed
from both affiliated and unaffiliated companies.
CREDIT RATINGS
Nationwide does business in all 50 states, the District of Columbia,
and the Virgin Islands. Nationwide Mutual Insurance Company and
Nationwide Mutual Fire Insurance Company are rated“A+”(Strong)
with a stable outlook by Standard Poor’s Rating Service, a division
of The McGraw-Hill Companies, Inc. (“SP”),“Aa3”(Excellent) with
a stable outlook by Moody’s Investor Service, Inc. (“Moody’s”), and
“A+p”(Superior) with a mixed outlook by A.M. Best. Nationwide
Life Insurance Company (NLIC) (and its insurance subsidiary) and
Nationwide Life Insurance Company of America (NLICA) (and its
insurance subsidiary) are both rated“A+g”(Superior) with a stable
outlook by A.M. Best, and both NLIC and NLICA’s claims paying
ability/financial strength are rated“Aa3”(Excellent) by Moody’s and
“AA-”(Very Strong) with stable outlook by SP. The commercial
paper issued by NLIC is rated“AMB-1”by A.M. Best,“P-1”by Moody’s
and“A-1+”by SP.
BASIS OF ACCOUNTING
Nationwide prepares its combined financial statements in
accordance with U.S. generally accepted accounting principles
(“GAAP”). For analytical purposes, including understanding
performance trends, decision-making and peer comparison,
management of Nationwide makes certain adjustments to some
data, resulting in non-GAAP financial measures. The following term
defines one of those financial measures:
Statutory Property and Casualty Trade Combined Ratio: A formula
used by property and casualty insurance companies to relate
premium income to claims, administration and dividend expenses.
It is calculated by dividing the sum of incurred losses by earned
premium and underwriting expenses by written premium. It
indicates the profitability of the insurer’s operations by combining
the loss ratio with expense ratio (including dividends if any). This
is termed the statutory combined ratio and measures the amount
that an insurer must pay to cover claims and expenses per dollar of
earned premium. The combined ratio does not take into account
investment income.

20. Nationwide
One Nationwide Plaza
Columbus, Ohio 43215
Nationwide, the Nationwide framemark
and On Your Side are federally registered
service marks of Nationwide Mutual
Insurance Company. G-9536-B