nationwide 2Q07 Statistical Supplement

2007 Nationwide Financial® Statistical Supplement
SECOND QUARTER

Nationwide Financial Services, Inc.
Statistical Supplement
June 30, 2007
This Page Intentionally Left Blank.

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
Account values by product 12
Sales by product 12
Sales by channel 12
Individual Protection Segment
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
Nationwide Bank and Medium Term Notes Key Ratios and Statistics 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

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$
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$
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
instruments and hedged items, net of taxes(1)
(0.05) 0.02 0.05 (0.05) (0.02)
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

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

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
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 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%
Currently Reported Return on Average Allocated Capital (Excluding AOCI)
Individual Investments 11.7% 12.5% 13.9% 11.1% 14.7%
Currently Reported Consolidated Financial Highlights
* 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

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
Federal income tax expense (67.4) 52.0 41.4 49.8 81.3
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)
Net income 262.7$ 161.9$ 158.4$ 208.3$ 197.3$
(1)
Quarterly Consolidated Income Statements
4

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
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
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
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
Interest expense on debt - - 0.1 27.5 27.6
Total expenses 70.4 107.4 78.2 98.4 354.4
Federal income tax expense 81.3
Net operating earnings 198.5$
(1)
(2.7)
gains (losses), net of taxes 1.5
Net income 197.3$
(1)
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

June 30, 2007
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
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
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
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
Federal income tax expense (67.4)
Net operating earnings 268.9$
(1)
(7.2)
gains (losses), net of taxes 1.0
Net income 262.7$
(1)
For the three months ended June 30, 2006
Combining Income Statement
6

June 30, 2007
7

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$
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
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

June 30, 2007
Individual Investments
Quarterly Earnings Trends
Operating Revenues
Asset fees 125.0$ 125.2$ 137.2$ 137.8$ 146.8$
Surrender fees 14.2 14.7 12.5 12.6 12.6
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
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
Subtotal 51.4 53.6 61.0 48.4 56.4
Total expenses 138.4 134.9 152.0 149.2 70.4
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%
Account Value Activity
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
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) -
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

June 30, 2007
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$
Private label annuities 96.7 94.8 92.1 73.2 97.5
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$
Total individual investment sales 1,385.8$ 1,354.4$ 1,503.9$ 1,370.6$ 1,521.7$
Non-affiliated
Independent broker/dealers 412.6$ 403.1$ 443.1$ 427.9$ 448.9$
Life specialists - - - 0.1 -
Affiliated
Non-affiliated
Affiliated
Total individual fixed annuities 45.8$ 57.2$ 44.0$ 37.3$ 40.1$
Income Products
Non-affiliated
Affiliated
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
Affiliated
Total advisory services program 70.1$ 47.7$ 42.4$ 36.8$ 36.6$
Sales by Channel
Account Values by Product
Sales by Product
10

June 30, 2007
Operating Revenues
Asset fees 33.6$ 32.9$ 33.6$ 33.7$ 33.1$
Surrender fees 1.1 0.8 1.1 1.0 1.1
Other income 69.9 73.5 78.6 78.3 84.6
Benefits
Expenses
Commissions 36.6 37.4 39.8 41.7 42.2
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)
Total expenses 107.8 112.2 120.2 117.8 107.4
General account 11,050.0$ 10,909.6$ 11,079.3$ 11,175.4$ 11,216.3$
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%
Asset fees to average separate account values 0.74% 0.74% 0.74% 0.73% 0.73%
Average allocated capital 817.1$ 806.7$ 815.4$ 795.0$ 737.4$
Pre-tax operating earnings to operating revenue 23.1% 19.8% 16.5% 18.6% 22.9%
Pre-tax operating earnings to average account values 0.27%
Private Sector Pension Plans
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)
Public Sector Pension Plans
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
Case acquisitions/(terminations), net (1,381.1) (88.8) 62.8 (14.9) (45.6)
Total retirement plan account values 69,905.0$ 72,143.1$ 76,597.1$ 77,894.8$ 81,187.0$
Retirement Plans
Retirement Plans
11

June 30, 2007
Retirement 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$
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$
Retirement Plans
Sales by Product
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
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$
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
Non-affiliated
Independent broker/dealers 810.4$ 824.6$ 964.3$ 1,157.3$ 945.0$
Affiliated
Nationwide Retirement Solutions 8.0 7.9 7.5 7.9 7.6
Nationwide Retirement Solutions 993.2$ 1,023.4$ 981.7$ 1,074.3$ 1,072.0$
12

June 30, 2007
Operating Revenues
Asset fees 11.4$ 11.1$ 12.3$ 12.7$ 13.1$
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
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
Benefits
Life benefits 106.8 108.3 114.2 107.0 111.4
Total benefits 180.8 182.4 182.7 175.6 179.0
Expenses
Commissions 32.3 29.9 33.0 31.2 32.6
Subtotal 51.4 55.6 55.8 48.8 55.7
Total expenses 92.4 85.2 73.7 84.0 78.2
General operating expenses to operating revenues 19.8% 20.3% 24.5% 18.3% 21.1%
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$
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
Policy Reserves
13

June 30, 2007
Sales by Product
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$
Non-affiliated
Affiliated
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$
Sales by Channel
14

June 30, 2007
Operating Revenues
Asset fees 11.4$ 11.1$ 12.3$ 12.7$ 13.1$
Surrender fees 4.4 5.7 4.5 4.5 4.0
Other income 6.5 6.6 6.5 4.8 5.4
Benefits
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
Subtotal 26.5 30.4 31.1 23.8 30.5
Total expenses 57.7 56.1 59.8 47.4 46.0
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$
(1)
Excludes experience rated BOLI corporate investment life.
Investment Life
Policy Reserve Activity
Deposits 288.1 320.6 1,180.0 360.8 336.5
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 - - - - -
Investment Life
15

June 30, 2007
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
Benefits
Life benefits 74.7 73.6 78.3 74.9 79.9
Total benefits 119.9 118.5 119.2 114.9 119.5
Expenses
Commissions 9.4 13.2 10.1 8.5 8.8
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
Total expenses 34.7 29.1 13.9 36.6 32.2
Life benefits per $1,000 of average life insurance in force 6.26$ 5.97$ 6.20$ 5.90$ 6.24$
Traditional/Universal Life
Deposits 112.3 116.7 120.9 106.7 114.8
Net flows 55.1 66.0 65.5 44.6 58.1
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)
Policy Reserve Activity
Fixed Life
Fixed Life
16

June 30, 2007
Operating Revenues
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)
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
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
Amortization of value of business acquired - (0.4) 0.3 - 0.1
Debt extinguishment costs - - - - 10.2
Total expenses 79.5 73.5 86.1 84.2 98.4
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%
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%
($ in millions)
Medium Term Notes Q2'06 Q3'06 Q4'06 Q2'07
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)
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
Corporate and Other
Nationwide Bank
Medium Term Notes
17

June 30, 2007
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
Note: Total Customer Funds Managed and Administered includes NFG funds as detailed below.
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
Q2'06 Q3'06 Q4'06 Q1'07 Q2'07
($ in millions)
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
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

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
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
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
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
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
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
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

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

June 30, 2007
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)
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$
Capitalization 250.7 37.2 201.1 - 489.0
Amortization (329.3) (47.4) (102.7) - (479.4)
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$
Capitalization 293.6 41.5 204.1 - 539.2
Amortization (276.1) (39.9) (114.4) - (430.4)
securities available-for-sale and other 11.0 - - 111.4 122.4
Capitalization 376.8 43.8 199.5 - 620.1
Amortization (228.3) (45.7) (120.6) - (394.6)
securities available-for-sale and other 18.0 - - 59.5 77.5
Capitalization 414.7 49.2 204.7 - 668.6
Amortization (528.2) (53.7) (92.7) - (674.6)
securities available-for-sale and other 22.5 - 9.8 (213.1) (180.8)
Deferred Policy Acquisition Costs
21

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%
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%
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

June 30, 2007
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$
Amortization (6.5) (6.9) (32.6) - (46.0)
losses on securities available-for-sale (8.8) (3.9) 1.9 (0.2) (11.0)
Amortization (7.2) (3.5) (34.3) - (45.0)
losses on securities available-for-sale 9.5 2.7 (2.1) - 14.3
Amortization (7.5) (4.7) (40.1) - (52.3)
losses on securities available-for-sale 1.6 1.6 6.9 (0.4) 9.7
Amortization (6.3) (2.0) (38.0) - (46.3)
losses on securities available-for-sale and other (2.6) (1.5) 3.9 0.2 0.0
Value of Business Acquired
23

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
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
Total 1,098.7$ 184.2$ 1,758.3$ 305.4$
GAAP GMDB reserves 27.2$ -
Statutory GMDB reserves 38.4$ -
Account Account
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
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

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
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
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
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
December 31, 2004
Net Amount at Risk
June 30, 2007
25

June 30, 2007
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)
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)
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

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
Total operating revenues 3,424.9$ 4,056.5$ 4,241.6$ 4,427.5$ 4,588.4$
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$
Federal income tax expense 35.2 155.5 189.2 133.0 67.5
(1)
(56.9) (56.2) (26.6) 11.9 (0.4)
gains (losses), net of taxes - - - (0.5) 6.3
Discontinued operations, net of taxes (1.5) (1.3) (2.3) (24.7) -
principles, net of taxes - (0.6) (3.4) - -
Net income 161.8$ 407.4$ 516.4$ 610.4$ 724.0$
Per Common Diluted Share
instruments and hedged items, net of taxes (1)
(0.43) (0.38) (0.17) 0.07 -
gains (losses), net of taxes - - - - 0.03
-
principles, net of taxes - - (0.02) - -
Net income 1.22$ 2.67$ 3.38$ 3.97$ 4.80$
Sales by Channel
Non-affiliated
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
Affiliated
Nationwide Retirement Solutions 2,633.1 3,209.9 3,665.9 3,914.7 4,050.2
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

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$
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.
Historical Financial Highlights
28

June 30, 2007
29

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$
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
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
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%
Previously Reported Return on Average Allocated Capital (Excluding AOCI)
Individual Investments -2.9% 8.2% 10.4% 13.0% 11.7%
Previously Reported Consolidated Financial Highlights
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%
Currently Reported Return on Average Allocated Capital (Excluding AOCI)
Individual Investments -2.3% 8.6% 10.7% 13.5% 12.3%
Currently Reported Consolidated Financial Highlights
* 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

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
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
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
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
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 -
Subtotal 686.8 843.8 940.4 975.3 1,061.5
Total expenses 1,453.3 1,380.5 1,525.4 1,607.7 1,683.8
Federal income tax expense 35.2 155.5 189.2 133.0 67.5
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)
gains (losses), net of taxes - - - (0.5) 6.3
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).
Historical Consolidated Earnings Trends
31

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
Leverage excluding AOCI
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

June 30, 2007
($ in millions) 2002 2003 2004 2005 2006
Operating Revenues
Asset fees 375.6$ 370.9$ 435.5$ 461.9$ 511.4$
Surrender fees 61.1 56.0 62.2 62.1 56.6
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
Benefits
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
Subtotal 169.5 177.3 214.1 196.5 213.6
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$
General account 10,793.7$ 15,340.9$ 16,211.1$ 15,966.7$ 14,041.3$
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%
Total asset fees to average separate account values 1.25% 1.27% 1.27% 1.30% 1.37%
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%
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
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) -
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) -
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$
Historical Earnings Trends
33

June 30, 2007
($ in millions) 2002 2003 2004 2005 2006
Private label annuities 5,339.5 7,123.4 7,350.9 7,398.9 7,319.7
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$
($ in millions) 2002 2003 2004 2005 2006
Private label annuities 795.3 659.3 449.0 346.6 356.6
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$
($ in millions) 2002 2003 2004 2005 2006
Non-affiliated
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 - - - - -
Non-affiliated
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 - - - -
Total individual fixed annuities 2,564.6$ 1,824.5$ 858.8$ 194.4$ 186.5$
Income Products
Non-affiliated
Pension plan administrators - - - - -
Affiliated
Nationwide Retirement Solutions - - - - -
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$
Sales by Channel
Sales by Product
34

June 30, 2007
($ in millions) 2002 2003 2004 2005 2006
Operating Revenues
Asset fees 151.5$ 146.9$ 150.8$ 137.8$ 134.0$
Surrender fees 6.7 5.7 12.1 8.2 4.5
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
Expenses
Commissions 85.8 92.7 111.3 133.3 151.6
Subtotal 235.1 271.1 308.5 348.0 397.6
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
General account 8,888.5$ 9,786.0$ 10,175.6$ 10,881.2$ 11,093.0$
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%
Total asset fees to average separate account values 0.78% 0.78% 0.74% 0.70% 0.72%
($ in millions) 2002 2003 2004 2005 2006
Net flows 917.9 1,000.6 1,311.9 1,383.9 937.4
Net, case acquisitions/(terminations) (57.0) - - - (1,478.9)
Acquired business 1,531.2 - - - -
Net flows 499.8 1,300.6 1,394.6 1,242.7 1,605.6
Net, case acquisitions/(terminations) (770.7) 4,983.8 181.4 (2,583.6) (1,453.9)
Historical Earnings Trends
Retirement Plans
Retirement Plans
35

June 30, 2007
($ in millions) 2002 2003 2004 2005 2006
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
($ in millions) 2002 2003 2004 2005 2006
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
($ in millions) 2002 2003 2004 2005 2006
Non-affiliated
Wirehouse and regional firms 726.5 742.2 863.7 953.7 1,104.7
Affiliated
Nationwide Retirement Solutions 38.1 32.5 28.8 33.0 32.0
Nationwide Retirement Solutions 2,581.8$ 3,177.4$ 3,637.1$ 3,881.7$ 4,018.2$
Sales by Channel
Retirement Plans
Retirement Plans
Sales by Product
Retirement Plans
36

nationwide 2Q07 Statistical Supplement

nationwide 2Q07 Statistical Supplement

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