S&P’s affirmed its “A+” counterparty credit and financial strength ratings on Nationwide Mutual Insurance Co. and related entities. The outlook has been revised to “negative” from “stable.” Deteriorating capitalization due to weak U.S. equity markets affected the outlook, according to an S&P’s credit analyst.
However, the ratings continue to reflect Nationwide’s strong franchise in the personal property/casualty insurance sector and improving underwriting results. Partially offsetting its strengths is a weakened capital position caused by an above-average exposure to equities and the potential for adverse development of asbestos reserves.
The negative outlook reflects the weakened capital position of the organization, which S&P’s believes is currently at the lower end of the indicated rating. The company’s ability to restore the capital adequacy of the organization to a level that is more commensurate with the indicated rating will determine the necessity of further rating actions.
Topics Trends
Was this article valuable?
Here are more articles you may enjoy.
Viewpoint: California’s Surplus Lines HO Market Driven by Access, Not Wildfire Risk 
Chubb: Cyber Claim Severity Nearly Doubled for Large Businesses 
Florida Man Faked Brain Injury for Years in Attempt to Gain $6M in Insurance 
New York Restaurateur Charged In No-Fault Auto Insurance Fraud Scheme From This Issue
