A.M. Best Co. downgraded the financial strength rating to “B+” (very good) from “B++” (very good) of Nationwide Indemnity Co. of Columbus, Ohio. The rating was placed under review with negative implications due to the significant decline in capitalization reported in the company’s third quarter financial statement.
Nationwide Indemnity strengthened reserves in the third quarter, which resulted in a reduction of surplus by approximately $300 million, contributing to the dramatic reduction in risk-adjusted capitalization.
Nationwide Indemnity is a wholly owned subsidiary of Nationwide Mutual Insurance Co. (Nationwide) also of Columbus, Ohio, and was established to run off Nationwide’s discontinued operations, including indemnity claims.
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