AM Best Downgrades Nationwide Mutual Insurance Company and its Property/Casualty Subsidiaries; Confirms credit ratings of Life affiliates

ALDUICK, NJ, December 8, 2023—(BUSINESS WIRE)–AM Best downgraded the Financial Strength Rating (FSR) to A (Excellent) from A+ (Superior) and Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” (Excellent) from “aa-” (Superior) of Nationwide Property & Casualty Members Group (Nationwide P&C Group). AM Best also downgraded the Long-Term IR to “a-” (Excellent) from “a” (Excellent) on the excess bonds issued by Nationwide Mutual Insurance Company. At the same time, AM Best affirmed the long-term IR at “a-” (excellent) on $1 billion, 3.9% 30-year senior unsecured notes guaranteed by Nationwide Mutual Insurance Company.

At the same time, AM Best affirmed the FSR of A+ (Superior) and the long-term ICRs of “aa-” (Superior) of Nationwide Life Insurance Company and its subsidiaries, Nationwide Life and Annuity Insurance Company and Jefferson National Life Insurance Company. These companies are key life/annuity subsidiaries of Nationwide Financial Services Inc. (NFS) and collectively known as Nationwide Life Group. AM Best also affirmed NFS’s long-term ICR of “a-” (excellent) and its existing long-term IRs. Finally, AM Best affirmed Titan Insurance Company’s (Titan) FSR of B++ (Good) and Long-Term ICR of “bbb” (Good). The outlook for all these credit ratings (ratings) is stable. All companies are headquartered in Columbus, Ohio, unless otherwise noted. (See the link below for a detailed list of all companies and ratings.)

Nationwide’s ratings reflect the strength of its balance sheet, which AM Best rates as very strong, as well as its marginal operating results, neutral business profile and appropriate enterprise risk management (ERM). Nationwide P&C Group’s rating downgrade reflects a revision of its business profile rating to neutral from favorable. These rating actions were prompted by operating results that were consistently below its peers and benchmarks, as well as Nationwide P&C Group’s strategy to de-emphasize its less profitable personal and commercial lines of business and focus on more specialized products . While this strategy will reduce Nationwide’s footprint and weaken its market share, brand recognition remains strong and the organization intends to achieve profitable business growth in specialty lines. In addition, the organization has outlined certain cost savings and pricing actions to restore profitability over the next 18 months. The balance sheet rating reflects Nationwide P&C Group’s very strong risk-adjusted capital position, as measured by Best’s capital adequacy ratio (BCAR), and its well-managed, diversified investment portfolio. AM Best notes that the group’s overall liquidity and financial flexibility remain more than adequate, despite pressures in certain property/casualty business lines that have resulted in moderate capital deterioration over the past 12 months.

Nationwide Life Group’s ratings reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its strong operating performance, favorable business profile and appropriate ERM. The group’s balance sheet valuation remains anchored by its risk-adjusted capitalization at the strongest level measured by BCAR. AM Best notes that Nationwide Life Group’s surplus quality is slightly lower given the use of linked surplus notes as well as insurance underwriters that provide support for certain excess reserve needs within the capital structure. However, the assessment acknowledges that the group has grown surplus at a rate well above the life insurance industry average over the past five-year period. Nationwide Life Group’s operating results continue to reflect its diverse product portfolio and geographic reach. In the first three quarters of 2023, top-line growth in core products was favorable, mainly driven by fixed products and operating results, which are expected to be strong through the end of 2023. The organization continues to benefit from its favorable market position. position among leading pension plan providers, as well as being a top 10 carrier in its core life and annuity markets.

Titan’s ratings reflect its balance sheet strength, which AM Best rates as adequate, as well as its marginal operating results, limited business profile and appropriate ERM. Titan serves a focused target market with distinct enterprise-wide dynamics.

A full list of Nationwide’s FSRs, long-term ICRs and long-term IRs is also available.

This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and related disclosures, including details of the agency responsible for issuing each of the individual ratings mentioned in this release, please see AM Best’s web page for recent rating activities. For further information on the use and limitations of credit score opinions, please see Best’s Guide to Credit Scores. For information on the proper use of Best Credit Ratings, Best Performance Ratings, Best Preliminary Credit Ratings, and AM Best Press Releases, please see the Guide to the Proper Use of Best Ratings and Ratings.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Kate Stefanelli
Assistant Director
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Christopher Sharkey
Associate Director, Public Relations
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Michael Lagomarsino, CFA, FRM
Chief Director
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Al Slavin
Senior Public Relations Specialist
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