A.M. Best Co. placed the “A-” (excellent) financial strength rating of Nationwide Ins. Co. of Florida (NICOF) under review with negative implications, as a result of anticipated losses associated with Hurricanes Charley, Frances, Ivan and Jeanne, and the subsequent reduction of the company’s risk adjusted capitalization. Although established as a separate legal entity within the Nationwide Group, NICOF’s financial strength rating reflects both the explicit and implicit support of its parent, Nationwide Mutual Ins. Co.
A.M. Best remains concerned with NICOF’s risk-adjusted capitalization and elevated probable maximum loss relative to its surplus.
Accordingly, maintaining the current rating level is contingent upon additional financial support from Nationwide Mutual Ins. Co.