Nationwide scores record sales, as rates and underwriting drive strong Q4’23

Columbus-domiciled Nationwide, a diversified financial services and insurance company in the United States, has achieved record-level sales for the third consecutive year in a row.

The insurer stated that significant rate and underwriting actions drove a strong Q4 2023 and will accelerate the company’s performance into 2024.

The record sales in 2023 were driven primarily by the impressive performance of its financial services business group, against the backdrop of the P&C industry being challenged by severe weather events and the impact of inflation on claims payments.

The insurer added that the loss settlement costs in personal lines were amplified by stubbornly high inflation for much of the year and record levels of severe convective storm losses.

Excess Surplus & Specialty lines and Nationwide Agribusiness lines excelled in this environment and achieved performance expectations.

The company has reported record sales of $60.3 billion in 2023, an increase of $3 billion over 2022. The insurer has paid out nearly $23 billion in claims and benefits to customers, in a year marked by stubbornly high inflation, increasing interest rates and severe weather.

Nationwide’s key measurement of profitability, net operating income, was steady at $1.3 billion and the total adjusted capital in 2023 rose to $25 billion, up almost 5% from the prior year.

Kirt Walker, Chief Executive Officer, Nationwide, commented, “I’m proud of what we accomplished in 2023 — capital growth, record top-line growth and strong net operating income. We faced many challenges and, through it all, our associates persevered and delivered on our promise of protection for our customers and our communities. That’s the mark of a resilient company. Some of those challenges we faced were industry-wide, like in P&C where the overall industry experienced one of the costliest years on record, driven by record levels of severe weather and persistent inflation.

“For Nationwide, our diverse portfolio of businesses enabled us to thrive while many peers struggled to deliver bottom-line results.”

Tim Frommeyer, Chief Financial Officer, said, “Nationwide’s diversification, strong risk-management capabilities, iconic brand and mutual structure proved to be important competitive advantages, fueling financial performance and AAA-level capital protection, which kept us strong and stable for our partners and members.

“Managing 2023 demanded agility and business-decision velocity, and we continue to double down on these strengths in 2024. We took advantage of opportunities the markets provided, we shifted capital toward businesses achieving their return-on-capital targets and we continued to drive operating efficiencies at levels that achieved our multi-year expense reduction goal.”

Walker stated that Nationwide’s diverse portfolio, capital strength and iconic brand are advantages moving into 2024. Further adding, “We are positioned to adapt, innovate and thrive for years to come. As we head toward our centennial in 2026, we are strong and stable and committed to protecting people, businesses and futures with extraordinary care. With our enduring financial strength backing our promise, we are building the protection company of the future.”

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