Nationwide reported total operating revenue of $6.1 billion for the first three months of 2014, up 5 percent over the same period last year and steady compared to fourth quarter 2013.
First quarter operating earnings were balanced across the company’s financial services and property/casualty businesses.
Nationwide’s P/C business reported $166 million in net operating income for the quarter, down from $231 million during the same period in 2013. The decline was attributed to an increase in weather-related claims, which were $378 million for the quarter, up from $263 million reported during the first quarter of 2013, which the insurer said was a particularly light winter weather quarter.
Nationwide said it grew direct written premium across all P/C businesses to $4.5 billion through first quarter 2014, up nearly 6 percent over the same time last year.
Commercial lines performance was up more than 11 percent over first quarter of last year, driven by Scottsdale’s product offerings, standard commercial lines and Nationwide Agribusiness.
Personal lines direct written premium grew two percent over first quarter 2013. Nationwide’s direct channel contributed 55 percent of the year-over-year growth in personal lines and was up more than 18 percent over first quarter last year.
Nationwide’s six P/C brands are Nationwide Insurance, Allied Insurance, Scottsdale Insurance, Nationwide Agribusiness, Harleysville Insurance and Titan Insurance.
“Results were positive during the quarter in both the financial services and P/C businesses,” said Chief Financial Officer Mark Thresher. “In financial services, sales were strong in both new and existing products. P/C business growth was led by commercial lines, and our personal lines direct channel continued to see high demand. While our P/C business was impacted by severe winter conditions, primarily the polar vortex, our capital position remains strong.”
Nationwide added two strategic partnerships during the quarter, announcing a new 10-year sponsorship agreement with The Ohio State University and a partnership with Hagerty Insurance Agency LLC to provide classic car insurance through Nationwide agents.
Source: Nationwide
Topics Trends Profit Loss Pricing Trends Agribusiness Property Casualty
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