Nationwide Mutual received an “AA” insurer financial strength rating (FSR) from Fitch, as did its related pool members, Nationwide Mutual Fire Insurance Co., Scottsdale Insurance Co., and Farmland Mutual Insurance Co. Also, Fitch assigned an “A+” surplus note rating to Nationwide Mutual. The rating outlook is stable.
The rating is supported by Nationwide Mutual’s solid market share, large and high-quality distribution channels and balance sheet strength. Balanced against the above-noted positives are the company’s recent operating results.
Fitch sees Nationwide Mutual maintaining very good financial flexibility. In spite of the large proportion of affiliated investments, flexibility is enhanced by a high-quality bond portfolio, a $400-million catastrophe contingent surplus note and a $1-billion line of credit. Additionally, reserves are believed to be adequate and future reserve strengthening measures, including actions related to the company’s A&E exposure, are not expected.
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