2006
First Quarter
2006 Nationwide Financial® Statistical Supplement
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2006
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Nationwide Financial Services, Inc.
Statistical Supplement
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Nationwide Financial Services, Inc.
Stat...
Nationwide Financial Services, Inc.
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Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2006
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Nationwide Financial Services, Inc.
Sta...
Nationwide Financial Services, Inc.
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Nationwide Financial Services, Inc.
Sta...
Nationwide Financial Services, Inc.
Statistical Supplement
March 31, 2006
This Page Intentional...
Nationwide Financial Services, Inc.
Statistical Su...
Nationwide Financial Services, Inc.
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Nationwide Financial Services, Inc.
Statistical S...
Nationwide Financial Services, Inc.
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Nationwide Financial Services, Inc.
Statistical ...
Nationwide Financial Services, Inc.
Statisti...
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
nationwide 1Q06 Statistical Supplement
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nationwide 1Q06 Statistical Supplement

Published on: Mar 3, 2016
Published in: Economy & Finance      
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Transcripts - nationwide 1Q06 Statistical Supplement

  • 1. 2006 First Quarter 2006 Nationwide Financial® Statistical Supplement
  • 2. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 This Page Intentionally Left Blank.
  • 3. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Table of Contents Page Quarterly Financial Highlights 1-2 NFS Financial Reporting Structure 2 Quarterly Consolidated Income Statements 4 Combining Income Statements For the three months ended March 31, 2006 5 For the three months ended March 31, 2005 6 Quarterly Consolidated Balance Sheets 8 Individual Investments Segment Quarterly earnings trends 9 Account value activity 9 Account values by product 10 Sales by product 10 Sales by channel 10 Retirement Plans Segment Quarterly earnings trends 11 Account value activity 11 Account values by product 12 Sales by product 12 Sales by channel 12 Individual Protection Segment Quarterly earnings trends 13 Policy reserves 13 Insurance in force 13 Sales by product 14 Sales by channel 14 Investment life quarterly earnings trends 15 Investment life policy reserve activity 15 Fixed life quarterly earnings trends 16 Fixed life policy reserve activity 16 Corporate and Other Segment Quarterly earnings trends 17 Medium term notes account value activity 17 Other Data Customer funds managed and administered 18 Separate account assets by segment and fund type 18 Securities available-for-sale 19 Aging of gross unrealized losses on securities available-for-sale 19 Credit quality of fixed maturity securities available-for-sale 20 Mortgage loans by region and property type 20 Deferred policy acquisition costs 21 Individual variable annuity deferred acquisition costs 22 Value of business acquired 23 Individual variable annuity guaranteed minimum death benefits 24 Individual variable annuity guaranteed minimum accumulation benefits 25 Individual variable annuity guaranteed minimum income benefits 25 Individual variable annuity guaranteed minimum death benefit reserve activity 26 Individual variable annuity guaranteed minimum accumulation benefit embedded derivative activity 26 Individual fixed annuity and fixed option of variable annuity summary of crediting rate detail 26 Historical Data 27-40 Glossary 41-44 Shareholder Information 45
  • 4. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Quarterly Financial Highlights ($ in millions except for per share data) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Individual investments $ 371.8 $ 377.3 $ 385.3 $ 380.1 $ 382.6 Retirement plans 263.7 262.6 271.4 276.0 278.6 Individual protection 338.6 338.8 331.4 339.7 338.4 Corporate and other 87.9 96.2 97.4 103.5 100.1 Total operating revenues $ 1,062.0 $ 1,074.9 $ 1,085.5 $ 1,099.3 $ 1,099.7 Net realized gains (losses) on investments, hedging (1) instruments and hedged items 27.3 1.7 (14.5) 3.7 (8.1) Total revenues $ 1,089.3 $ 1,076.6 $ 1,071.0 $ 1,103.0 $ 1,091.6 Pre-tax Operating Earnings Individual investments $ 61.3 $ 66.1 $ 56.2 $ 53.4 $ 56.4 Retirement plans 47.1 45.3 45.4 49.7 53.6 Individual protection 71.8 63.0 63.8 59.6 64.9 Corporate and other 12.9 21.3 (1.1) 22.6 11.6 Pre-tax operating earnings $ 193.1 $ 195.7 $ 164.3 $ 185.3 $ 186.5 Federal income tax expense 50.7 50.8 (8.0) 33.1 42.2 Net operating earnings $ 142.4 $ 144.9 $ 172.3 $ 152.2 $ 144.3 Net realized gains (losses) on investments, hedging (1) instruments and hedged items, net of taxes 17.8 1.1 (9.4) 2.4 (5.3) Adjustment to DAC amortization related to net realized gains (losses), net of taxes (1.0) (2.5) 2.9 0.1 3.3 Discontinued operations, net of taxes 1.3 (2.3) 0.9 (24.4) - Net income $ 160.5 $ 141.2 $ 166.7 $ 130.3 $ 142.3 Per Diluted Share Net operating earnings $ 0.93 $ 0.94 $ 1.12 $ 0.99 $ 0.94 Net realized gains (losses) on investments, hedging (1) instruments and hedged items, net of taxes 0.12 0.01 (0.07) 0.02 (0.03) Adjustment to DAC amortization related to net realized gains (losses), net of taxes (0.01) (0.02) 0.02 - 0.02 Discontinued operations, net of taxes 0.01 (0.01) 0.01 (0.16) - Net income $ 1.05 $ 0.92 $ 1.08 $ 0.85 $ 0.93 Sales by Channel Non-affiliated Independent broker/dealers $ 1,485.6 $ 1,292.1 $ 1,280.4 $ 1,207.9 $ 1,487.8 Wirehouse and regional firms 501.9 479.2 449.1 482.3 590.1 Financial institutions 514.4 470.5 398.8 424.3 523.7 Pension plan administrators 139.9 116.0 108.2 104.9 135.9 Life specialists 126.6 104.3 82.5 69.0 172.6 Affiliated Nationwide Retirement Solutions 959.5 993.7 1,012.7 948.8 1,028.5 Nationwide agents 176.9 184.9 188.8 207.2 196.4 Nationwide Financial Network 160.9 155.3 160.2 181.6 185.7 The 401(k) Company 426.8 323.7 303.5 288.3 535.9 TBG Financial 108.5 38.6 92.3 36.0 110.4 Total $ 4,601.0 $ 4,158.3 $ 4,076.5 $ 3,950.3 $ 4,967.0 (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes). Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. 1
  • 5. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Quarterly Financial Highlights ($ in millions except for per share data) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Balance Sheet Data Total assets $ 116,005.9 $ 115,699.7 $ 117,421.3 $ 116,159.9 $ 116,558.7 Customer funds managed and administered $ 149,093.4 $ 150,614.7 $ 155,650.6 $ 155,612.9 $ 162,451.6 Shareholders' equity (1) Including accumulated other comprehensive income (AOCI) $ 5,147.3 $ 5,434.9 $ 5,375.6 $ 5,350.4 $ 5,126.2 AOCI 222.6 395.7 196.1 100.7 (77.9) Excluding AOCI $ 4,924.7 $ 5,039.2 $ 5,179.5 $ 5,249.7 $ 5,204.1 Net operating return on average equity excluding AOCI 11.7% 11.6% 13.5% 11.7% 11.0% (2) Adjusted net operating return on average equity excluding AOCI 11.7% 11.6% 11.2% 11.7% 11.0% Statutory capital and surplus $ 3,015.9 $ 3,152.3 $ 3,305.9 $ 3,262.1 $ 3,279.3 Stock Data Closing Price $ 35.90 $ 37.94 $ 40.05 $ 44.00 $ 43.02 Weighted average shares outstanding Basic 152.7 153.0 153.1 152.9 152.3 Diluted 153.5 153.7 153.9 153.6 152.9 Book value per share Including AOCI $ 33.64 $ 35.52 $ 35.09 $ 35.08 $ 34.40 Excluding AOCI $ 32.19 $ 32.94 $ 33.81 $ 34.42 $ 34.93 (1) Includes changes in fair value of certain investments and derivatives under SFAS 115 and SFAS 133. (2) 3Q 2005 return adjusted for $42.6 million impact of one-time tax adjustments associated with separate account dividend received deductions and $14.1 million charge related to calling of trust preferred securities. Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. NFS Operating Segment Reporting Structure NATIONWIDE FINANCIAL SERVICES, INC. Individual Retirement Individual Corporate Investments Plans Protection & Other Variable Annuities Public Sector - 457 Fixed Life Medium Term Notes Universal Fixed Annuities Private Sector – 401(k) Structured Products Whole Term In Retirement Corporate Other Investment Life Income Products Variable Universal Advisory Services COLI 2
  • 6. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 This Page Intentionally Left Blank. 3
  • 7. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Quarterly Consolidated Income Statements ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Asset fees $ 157.0 $ 156.8 $ 163.1 $ 163.0 $ 168.9 Cost of insurance charges 96.4 96.8 97.8 97.5 98.9 Administrative fees 30.6 27.0 29.6 27.7 30.2 Surrender fees 25.1 26.4 24.1 22.6 23.0 Total policy charges 309.1 307.0 314.6 310.8 321.0 Traditional life and immediate annuity premiums 95.9 99.7 97.2 107.1 107.8 Net investment income 576.1 587.1 592.8 587.9 577.3 Operating realized gains (losses) 0.2 0.8 0.5 1.1 1.3 Other income 80.7 80.3 80.4 92.4 92.3 Total operating revenues 1,062.0 1,074.9 1,085.5 1,099.3 1,099.7 Benefits Interest credited 334.5 348.1 350.6 347.7 342.1 Life insurance and annuity benefits 136.2 145.9 142.9 149.9 156.1 Policyholder dividends 26.9 26.3 27.1 27.0 20.2 Total benefits 497.6 520.3 520.6 524.6 518.4 Expenses Commissions 137.8 138.6 130.2 140.1 153.1 General operating expenses 202.5 197.7 198.9 209.3 213.4 Debt extinguishment costs - - 21.7 - - Deferral of policy acquisition costs (128.9) (126.9) (112.4) (120.8) (135.1) Subtotal 211.4 209.4 238.4 228.6 231.4 Amortization of policy acquisition costs 121.8 111.0 122.9 123.7 125.7 Amortization of value of business acquired 12.0 11.7 11.3 10.0 11.6 Interest expense on debt 26.1 26.8 28.0 27.1 26.1 Total expenses 371.3 358.9 400.6 389.4 394.8 Pre-tax operating earnings $ 193.1 $ 195.7 $ 164.3 $ 185.3 $ 186.5 Federal income tax expense 50.7 50.8 (8.0) 33.1 42.2 Net operating earnings $ 142.4 $ 144.9 $ 172.3 $ 152.2 $ 144.3 Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 24.7 9.4 8.4 20.5 7.3 Realized losses on sales, net of hedging (3.0) (4.2) (3.3) (7.9) (12.9) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (3.0) (3.8) (12.6) (7.5) (0.6) Credit default swaps (1.1) (0.5) (2.8) (0.4) (0.1) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.5 0.8 1.4 (1.9) 0.5 Amounts credited to policyholder dividend obligation (0.8) (0.7) (2.1) 0.3 0.1 Adjustment to VOBA amortization 0.5 0.1 1.6 (0.7) 0.4 Subtotal 17.8 1.1 (9.4) 2.4 (5.3) Adjustment to DAC amortization related to net realized gains (losses), net of taxes (1.0) (2.5) 2.9 0.1 3.3 Discontinued operations, net of taxes 1.3 (2.3) 0.9 (24.4) - Net income $ 160.5 $ 141.2 $ 166.7 $ 130.3 $ 142.3 (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes). Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. 4
  • 8. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Combining Income Statement For the three months ended March 31, 2006 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees $ 124.0 $ 33.9 $ 11.0 $ - $ 168.9 Cost of insurance charges - - 98.9 - 98.9 Administrative fees 4.6 2.7 22.9 - 30.2 Surrender fees 15.2 1.5 6.3 - 23.0 Total policy charges 143.8 38.1 139.1 - 321.0 Traditional life and immediate annuity premiums 31.9 - 75.9 - 107.8 Net investment income 206.4 164.2 116.2 90.5 577.3 Operating realized gains (losses) - - - 1.3 1.3 Other income 0.5 76.3 7.2 8.3 92.3 Total operating revenues 382.6 278.6 338.4 100.1 1,099.7 Benefits Interest credited 137.7 113.2 45.6 45.6 342.1 Life insurance and annuity benefits 41.0 - 115.1 - 156.1 Policyholder dividends - - 20.2 - 20.2 Total benefits 178.7 113.2 180.9 45.6 518.4 Expenses Commissions 73.6 37.8 35.6 6.1 153.1 General operating expenses 48.4 72.2 82.0 10.8 213.4 Debt extinguishment costs - - - - - Deferral of policy acquisition costs (74.4) (9.4) (51.3) - (135.1) Subtotal 47.6 100.6 66.3 16.9 231.4 Amortization of policy acquisition costs 97.6 10.1 18.0 - 125.7 Amortization of value of business acquired 2.3 1.1 8.1 0.1 11.6 Interest expense on debt - - 0.2 25.9 26.1 Total expenses 147.5 111.8 92.6 42.9 394.8 Pre-tax operating earnings $ 56.4 $ 53.6 $ 64.9 $ 11.6 $ 186.5 Federal income tax expense 42.2 Net operating earnings $ 144.3 Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 7.3 Realized losses on sales, net of hedging (12.9) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (0.6) Credit default swaps (0.1) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.5 Amounts credited to policyholder dividend obligation 0.1 Adjustment to VOBA amortization 0.4 Subtotal (5.3) Adjustment to DAC amortization related to net realized gains (losses), net of taxes 3.3 Discontinued operations, net of taxes - Net income $ 142.3 (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes). 5
  • 9. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Combining Income Statement For the three months ended March 31, 2005 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees $ 112.6 $ 35.1 $ 9.3 $ - $ 157.0 Cost of insurance charges - - 96.4 - 96.4 Administrative fees 4.2 2.5 23.9 - 30.6 Surrender fees 15.7 2.1 7.3 - 25.1 Total policy charges 132.5 39.7 136.9 - 309.1 Traditional life and immediate annuity premiums 22.1 - 73.8 - 95.9 Net investment income 216.8 166.3 119.1 73.9 576.1 Operating realized gains (losses) - - - 0.2 0.2 Other income 0.4 57.7 8.8 13.8 80.7 Total operating revenues 371.8 263.7 338.6 87.9 1,062.0 Benefits Interest credited 146.6 111.8 45.6 30.5 334.5 Life insurance and annuity benefits 33.8 - 102.4 - 136.2 Policyholder dividends - - 26.9 - 26.9 Total benefits 180.4 111.8 174.9 30.5 497.6 Expenses Commissions 61.7 33.7 35.8 6.6 137.8 General operating expenses 44.5 68.1 78.1 11.8 202.5 Debt extinguishment costs - - - - - Deferral of policy acquisition costs (60.3) (10.0) (58.6) - (128.9) Subtotal 45.9 91.8 55.3 18.4 211.4 Amortization of policy acquisition costs 82.6 12.3 26.9 - 121.8 Amortization of value of business acquired 1.6 0.7 9.7 - 12.0 Interest expense on debt - - - 26.1 26.1 Total expenses 130.1 104.8 91.9 44.5 371.3 Pre-tax operating earnings $ 61.3 $ 47.1 $ 71.8 $ 12.9 $ 193.1 Federal income tax expense 50.7 Net operating earnings $ 142.4 Net realized gains (losses) on investments, hedging instruments and hedged items, net of taxes (1) Realized gains on sales, net of hedging 24.7 Realized losses on sales, net of hedging (3.0) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (3.0) Credit default swaps (1.1) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.5 Amounts credited to policyholder dividend obligation (0.8) Adjustment to VOBA amortization 0.5 Subtotal 17.8 Adjustment to DAC amortization related to net realized gains (losses), net of taxes (1.0) Discontinued operations, net of taxes 1.3 Net income $ 160.5 (1) Excluding operating items (periodic net coupon settlements on non-qualifying derivatives, trading portfolio realized gains and losses, and trading portfolio valuation changes). Note: All prior periods have been reclassified to reflect Cap Pro Holding, Inc., NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. 6
  • 10. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 This Page Intentionally Left Blank. 7
  • 11. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Quarterly Consolidated Balance Sheets ($ in millions, except per share data) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Assets Investments Securities available-for-sale: Fixed maturity securities $ 31,188.2 $ 31,778.5 $ 31,092.2 $ 30,106.0 $ 28,645.0 Equity securities 77.5 80.8 78.6 75.6 76.5 Trading assets 26.0 28.5 34.7 34.4 27.8 Mortgage loans 9,127.8 9,214.7 9,332.5 9,148.6 9,048.3 Real estate 108.6 103.8 107.7 108.7 108.6 Policy loans 921.9 928.6 935.6 930.6 933.9 Other long-term investments 581.8 628.0 617.6 691.9 688.9 Short-term investments 2,126.1 2,022.0 2,104.2 2,073.2 2,830.5 Total investments 44,157.9 44,784.9 44,303.1 43,169.0 42,359.5 Cash 38.3 45.8 47.6 16.4 23.9 Accrued investment income 427.3 409.6 436.8 396.3 398.9 Deferred policy acquisition costs 3,706.0 3,581.0 3,710.4 3,685.4 3,794.7 Value of business acquired 477.0 458.9 457.7 449.7 443.3 Other intangible assets 48.6 46.7 46.1 45.6 45.4 Goodwill 400.5 389.6 389.6 364.5 359.0 Other assets 2,383.5 2,214.1 2,227.5 2,069.2 2,200.3 Assets held in separate accounts 64,366.8 63,769.1 65,802.5 65,963.8 66,933.7 Total assets $ 116,005.9 $ 115,699.7 $ 117,421.3 $ 116,159.9 $ 116,558.7 Liabilities and shareholders' equity Future policy benefits and claims $ 40,816.2 $ 40,842.3 $ 40,787.4 $ 39,748.1 $ 39,519.4 Short-term debt 182.9 352.1 391.2 252.3 147.4 Long-term debt 1,406.4 1,406.1 1,406.0 1,398.0 1,398.3 Other liabilities 4,086.3 3,895.2 3,658.6 3,447.3 3,433.7 Liabilities related to separate accounts 64,366.8 63,769.1 65,802.5 65,963.8 66,933.7 110,858.6 110,264.8 112,045.7 110,809.5 111,432.5 Shareholders' equity 5,147.3 5,434.9 5,375.6 5,350.4 5,126.2 Total liabilities and shareholders' equity $ 116,005.9 $ 115,699.7 $ 117,421.3 $ 116,159.9 $ 116,558.7 Capital Structure Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Total capital, including AOCI $ 6,553.7 $ 6,841.0 $ 6,781.6 $ 6,748.4 $ 6,524.5 Less AOCI 222.6 395.7 196.1 100.7 (77.9) Total capital, excluding AOCI $ 6,331.1 $ 6,445.3 $ 6,585.5 $ 6,647.7 $ 6,602.4 Leverage, including AOCI Long-term debt--to--total capital 21.5% 20.6% 20.7% 20.7% 21.4% Leverage, excluding AOCI Long-term debt--to--total capital 22.2% 21.8% 21.3% 21.0% 21.2% Ratio of pre-tax operating earnings before interest expense to interest expense 8.4X 8.3X 6.9X 7.8X 8.1X 8
  • 12. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Investments Quarterly Earnings Trends ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Asset fees $ 112.6 $ 112.7 $ 118.5 $ 118.1 $ 124.0 Administrative fees 4.2 3.6 4.1 4.3 4.6 Surrender fees 15.7 16.2 16.0 14.2 15.2 Total policy charges 132.5 132.5 138.6 136.6 143.8 Net Investment Income General account assets 223.1 226.1 226.4 220.3 212.7 Charge for invested capital (6.3) (6.3) (6.5) (6.9) (6.3) Total net investment income 216.8 219.8 219.9 213.4 206.4 Premiums on income products 22.1 24.7 26.4 29.7 31.9 Other income 0.4 0.3 0.4 0.4 0.5 Total operating revenues 371.8 377.3 385.3 380.1 382.6 Benefits Interest credited 146.6 149.8 148.2 144.5 137.7 Immediate annuity benefits 19.7 21.1 22.7 25.7 28.5 Policy benefits 14.1 21.2 14.6 16.3 12.5 Total benefits 180.4 192.1 185.5 186.5 178.7 Expenses Commissions 61.7 67.7 62.4 65.7 73.6 General operating expenses 44.5 47.2 47.3 50.7 48.4 Deferral of policy acquisition costs (60.3) (68.5) (59.9) (62.0) (74.4) Subtotal 45.9 46.4 49.8 54.4 47.6 Amortization of policy acquisition costs 82.6 70.8 92.2 83.7 97.6 Amortization of value of business acquired 1.6 1.9 1.6 2.1 2.3 Total expenses 130.1 119.1 143.6 140.2 147.5 Pre-tax operating earnings $ 61.3 $ 66.1 $ 56.2 $ 53.4 $ 56.4 Key Ratios/Statistics Average Account Values: General account $ 16,300.2 $ 16,223.7 $ 16,110.5 $ 15,515.1 $ 14,825.4 Separate account 35,430.3 35,060.4 35,669.0 35,975.9 36,504.3 Advisory services program 222.2 281.5 345.3 393.7 443.3 Total average individual investments account values $ 51,952.7 $ 51,565.6 $ 52,124.8 $ 51,884.7 $ 51,773.0 Earned rate 5.47% 5.57% 5.62% 5.68% 5.74% Credited rate 3.60% 3.69% 3.68% 3.73% 3.72% Interest spread on average general account values 1.87% 1.88% 1.94% 1.95% 2.02% Prepayment penalties and bond call premium income 0.17% 0.17% 0.30% 0.19% 0.11% Base interest spread on average general account values 1.70% 1.71% 1.64% 1.76% 1.91% Asset fees to average separate account values 1.27% 1.29% 1.33% 1.31% 1.36% General operating expenses to average account values 0.34% 0.37% 0.36% 0.39% 0.37% Pre-tax operating earnings to average account values 0.47% 0.51% 0.43% 0.41% 0.44% Pre-tax operating earnings to operating revenues 16.5% 17.5% 14.6% 14.0% 14.7% Average allocated capital $ 1,685.5 $ 1,678.2 $ 1,689.8 $ 1,649.3 $ 1,563.0 Return on average allocated capital 11.1% 12.0% 16.7% 12.1% 11.9% (1) Adjusted return on average allocated capital 11.1% 12.0% 10.9% 12.1% 11.9% (1) 3Q 2005 return adjusted for $24.3 million impact of one-time tax adjustments associated with separate account dividend received deductions. Note: All prior periods have been reclassified to reflect NFS Bermuda as discontinued operations. Individual Investments Account Value Activity ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual Variable Annuities Balance, beginning of period $ 41,481.9 $ 40,441.0 $ 40,726.4 $ 41,651.8 $ 40,796.0 Deposits 944.4 943.1 870.2 903.5 1,045.0 Withdrawals and surrenders (1,299.2) (1,388.7) (1,429.5) (1,456.8) (1,535.4) Net flows (354.8) (445.6) (559.3) (553.3) (490.4) Investment performance/interest credited (513.6) 848.7 1,615.9 971.1 1,903.4 Policy charges (133.4) (133.5) (138.9) (137.6) (140.6) Benefits and other (39.1) 15.8 7.7 24.6 3.1 Acquisitions/(terminations), net - - - (1,160.6) - Balance, end of period $ 40,441.0 $ 40,726.4 $ 41,651.8 $ 40,796.0 $ 42,071.5 Individual Fixed Annuities Balance, beginning of period $ 8,902.5 $ 8,817.6 $ 8,731.8 $ 8,559.3 $ 8,041.8 Deposits 50.1 52.4 27.4 31.0 38.6 Withdrawals and surrenders (210.0) (230.0) (274.0) (330.0) (400.9) Net flows (159.9) (177.6) (246.6) (299.0) (362.3) Policyholder interest credited 83.6 83.7 82.8 77.6 73.4 Policy charges (2.7) (2.9) (3.2) (2.6) (2.8) Benefits and other (5.9) 11.0 (5.5) (3.9) (3.5) Acquisitions/(terminations), net - - - (289.6) - Balance, end of period $ 8,817.6 $ 8,731.8 $ 8,559.3 $ 8,041.8 $ 7,746.6 Income Products $ 1,916.3 $ 1,935.0 $ 1,954.7 $ 1,978.3 $ 2,025.1 Advisory services program $ 248.4 $ 314.6 $ 375.9 $ 411.5 $ 475.0 Total individual investment account values $ 51,423.3 $ 51,707.8 $ 52,541.7 $ 51,227.6 $ 52,318.2 9
  • 13. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Investments Account Values by Product ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual Variable Annuities BEST of AMERICA products $ 32,801.3 $ 33,119.9 $ 33,989.0 $ 32,937.0 $ 34,117.5 Private label annuities 7,119.5 7,110.0 7,178.4 7,398.9 7,505.5 Nationwide Financial Network and other 520.2 496.5 484.4 460.1 448.5 Total individual variable annuities $ 40,441.0 $ 40,726.4 $ 41,651.8 $ 40,796.0 $ 42,071.5 Individual Fixed Annuities $ 8,817.6 $ 8,731.8 $ 8,559.3 $ 8,041.8 $ 7,746.6 Income Products $ 1,916.3 $ 1,935.0 $ 1,954.7 $ 1,978.3 $ 2,025.1 Advisory Services Program $ 248.4 $ 314.6 $ 375.9 $ 411.5 $ 475.0 Total individual investment account values $ 51,423.3 $ 51,707.8 $ 52,541.7 $ 51,227.6 $ 52,318.2 Individual Investments Sales by Product ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual Variable Annuities BEST of AMERICA products $ 815.4 $ 832.4 $ 720.1 $ 767.6 $ 912.5 Private label annuities 89.2 95.3 79.8 82.3 73.0 Nationwide Financial Network and other 1.2 1.3 1.1 1.1 0.9 Total individual variable annuities $ 905.8 $ 929.0 $ 801.0 $ 851.0 $ 986.4 Individual Fixed Annuities $ 62.7 $ 67.6 $ 31.5 $ 32.6 $ 39.5 Income Products $ 44.9 $ 47.7 $ 49.3 $ 54.8 $ 58.5 Advisory Services Program $ 53.2 $ 63.8 $ 65.1 $ 49.2 $ 62.6 Total individual investment sales $ 1,066.6 $ 1,108.1 $ 946.9 $ 987.6 $ 1,147.0 Individual Investments Sales by Channel ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual Variable Annuities Non-affiliated Independent broker/dealers $ 327.9 $ 355.5 $ 309.4 $ 311.5 $ 347.7 Wirehouse and regional firms 208.2 217.6 198.3 197.8 220.8 Financial institutions 289.2 267.2 224.8 250.3 318.2 Life specialists 0.3 - - - 0.8 Affiliated Nationwide agents 58.5 63.2 48.1 60.5 63.6 Nationwide Financial Network 21.7 25.5 20.4 30.9 35.3 Total individual variable annuities $ 905.8 $ 929.0 $ 801.0 $ 851.0 $ 986.4 Individual Fixed Annuities Non-affiliated Independent broker/dealers $ 1.6 $ 1.9 $ 1.9 $ 1.6 $ 2.6 Wirehouse and regional firms 1.7 3.4 1.2 1.9 1.0 Financial institutions 50.8 53.5 16.3 8.8 14.7 Pension plan administrators - - - - - Affiliated Nationwide agents 7.5 7.9 11.0 17.9 17.4 Nationwide Financial Network 1.1 0.9 1.1 2.4 3.8 Total individual fixed annuities $ 62.7 $ 67.6 $ 31.5 $ 32.6 $ 39.5 Income Products Non-affiliated Independent broker/dealers $ 22.3 $ 16.6 $ 17.6 $ 20.4 $ 28.1 Wirehouse and regional firms 10.7 15.5 19.0 18.2 17.0 Financial institutions 6.8 9.0 4.8 8.6 6.1 Affiliated Nationwide agents 2.0 3.1 3.7 3.9 3.6 Nationwide Financial Network 3.1 3.5 4.2 3.7 3.7 Total income products $ 44.9 $ 47.7 $ 49.3 $ 54.8 $ 58.5 Advisory Services Program Non-affiliated Independent broker/dealers $ 48.3 $ 54.9 $ 57.7 $ 44.4 $ 48.0 Financial institutions 0.5 2.9 1.5 3.2 4.0 Affiliated Nationwide Financial Network 4.4 6.0 5.9 1.6 10.6 Total advisory services program $ 53.2 $ 63.8 $ 65.1 $ 49.2 $ 62.6 Total individual investment sales $ 1,066.6 $ 1,108.1 $ 946.9 $ 987.6 $ 1,147.0 10
  • 14. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Retirement Plans Quarterly Earnings Trends ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Asset fees $ 35.1 $ 34.1 $ 34.2 $ 34.4 $ 33.9 Administrative fees 2.5 2.0 1.8 2.4 2.7 Surrender fees 2.1 2.5 1.7 1.9 1.5 Total policy charges 39.7 38.6 37.7 38.7 38.1 Net investment income 166.3 162.3 165.7 167.1 164.2 Other income 57.7 61.7 68.0 70.2 76.3 Total operating revenues 263.7 262.6 271.4 276.0 278.6 Benefits Interest credited 111.8 112.2 115.4 115.6 113.2 Expenses Commissions 33.7 31.6 33.7 34.3 37.8 General operating expenses 68.1 70.7 72.6 72.8 72.2 Deferral of policy acquisition costs (10.0) (9.2) (9.1) (8.9) (9.4) Subtotal 91.8 93.1 97.2 98.2 100.6 Amortization of policy acquisition costs 12.3 11.1 12.1 11.9 10.1 Amortization of value of business acquired 0.7 0.9 1.3 0.6 1.1 Total expenses 104.8 105.1 110.6 110.7 111.8 Pre-tax operating earnings $ 47.1 $ 45.3 $ 45.4 $ 49.7 $ 53.6 Key Ratios/Statistics Average Account Values: General account $ 10,589.9 $ 10,795.0 $ 11,010.1 $ 11,151.0 $ 11,241.2 Separate account 20,206.2 19,582.4 19,342.2 19,737.8 19,298.8 Non insurance assets 10,987.4 11,914.9 13,023.6 14,056.6 15,258.6 Administration only 35,093.1 35,400.4 36,725.4 37,508.5 39,690.3 Total average retirement plan account values $ 76,876.6 $ 77,692.7 $ 80,101.3 $ 82,453.9 $ 85,488.9 Earned rate 6.28% 6.01% 6.02% 5.99% 5.84% Credited rate 4.22% 4.16% 4.19% 4.15% 4.03% Interest spread on average general account values 2.06% 1.85% 1.83% 1.84% 1.81% Prepayment penalties and bond call premium income 0.25% 0.19% 0.18% 0.19% 0.09% Base interest spread on average general account values 1.81% 1.66% 1.65% 1.65% 1.72% Asset fees to average separate account values 0.69% 0.70% 0.71% 0.70% 0.70% General operating expenses to average account values 0.35% 0.36% 0.36% 0.35% 0.34% Pre-tax operating earnings to average account values 0.25% 0.23% 0.23% 0.24% 0.25% Pre-tax operating earnings to operating revenue 17.9% 17.3% 16.7% 18.0% 19.2% Average allocated capital $ 745.5 $ 753.6 $ 784.1 $ 806.5 $ 816.2 Return on average allocated capital 18.6% 17.7% 25.1% 20.1% 19.4% (1) Adjusted return on average allocated capital 18.6% 17.7% 17.7% 20.1% 19.4% (1) 3Q 2005 return adjusted for $14.6 million impact of one-time tax adjustments associated with separate account dividend received deductions. Retirement Plans Account Value Activity ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Private Sector Pension Plans Balance, beginning of period $ 37,736.0 $ 38,109.3 $ 39,324.9 $ 41,235.7 $ 42,906.5 New deposits/sales 2,255.2 1,682.4 1,833.3 1,676.4 2,327.7 Participant withdrawals and surrenders (1,497.8) (1,308.3) (1,464.6) (1,601.7) (1,855.7) Net flows 757.4 374.1 368.7 74.7 472.0 Investment performance/interest credited (361.0) 811.6 1,591.8 1,027.6 2,112.0 Policy and other charges (52.3) (52.9) (53.5) (57.8) (25.2) Case acquisitions/(terminations), net 29.2 82.8 3.8 626.3 784.6 Balance, end of period $ 38,109.3 $ 39,324.9 $ 41,235.7 $ 42,906.5 $ 46,249.9 Public Sector Pension Plans Balance, beginning of period $ 38,925.2 $ 38,982.5 $ 38,968.6 $ 40,673.4 $ 40,092.0 New deposits/sales 952.3 984.8 1,004.2 940.3 1,020.0 Participant withdrawals and surrenders (739.1) (640.6) (634.2) (625.0) (694.2) Net flows 213.2 344.2 370.0 315.3 325.8 Investment performance/interest credited (208.0) 575.5 1,359.3 850.3 1,376.2 Policy and other charges (17.2) (17.3) (17.5) (17.4) (18.0) Case acquisitions/(terminations), net 69.3 (916.3) (7.0) (1,729.6) (46.8) Balance, end of period $ 38,982.5 $ 38,968.6 $ 40,673.4 $ 40,092.0 $ 41,729.2 Total retirement plan account values $ 77,091.8 $ 78,293.5 $ 81,909.1 $ 82,998.5 $ 87,979.1 11
  • 15. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Retirement Plans Account Values by Product ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Private Sector Pension Plans BEST of AMERICA annuity products $ 8,204.6 $ 7,995.6 $ 7,969.2 $ 7,791.9 $ 7,738.8 BEST of AMERICA trust products 11,416.3 12,413.4 13,633.7 14,479.5 16,037.7 Subtotal BEST of AMERICA 19,620.9 20,409.0 21,602.9 22,271.4 23,776.5 The 401(k) Company 11,328.9 11,712.4 12,215.3 13,147.7 16,349.9 Nationwide Financial Network products 1,429.2 1,411.2 1,372.3 1,378.4 1,316.5 Nationwide employee and agent benefit plans 5,097.7 5,155.2 5,426.4 5,504.2 4,207.1 Other 632.6 637.1 618.8 604.8 599.9 Total private sector pension plans $ 38,109.3 $ 39,324.9 $ 41,235.7 $ 42,906.5 $ 46,249.9 Public Sector Pension Plans IRC Section 457 annuities $ 15,394.0 $ 14,797.6 $ 15,321.2 $ 15,790.2 $ 16,148.1 Administration only agreements 23,588.5 24,171.0 25,352.2 24,301.8 25,581.1 Total public sector pension plans $ 38,982.5 $ 38,968.6 $ 40,673.4 $ 40,092.0 $ 41,729.2 Total retirement plan account values $ 77,091.8 $ 78,293.5 $ 81,909.1 $ 82,998.5 $ 87,979.1 Retirement Plans Sales by Product ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Private Sector Pension Plans BEST of AMERICA annuity products $ 392.6 $ 357.5 $ 361.0 $ 296.7 $ 351.0 BEST of AMERICA trust products 1,167.0 888.7 948.0 971.2 1,277.5 Subtotal BEST of AMERICA 1,559.6 1,246.2 1,309.0 1,267.9 1,628.5 The 401(k) Company 426.8 323.7 303.5 288.3 535.9 Nationwide Financial Network products 53.2 41.7 52.6 58.4 56.5 Other 23.1 16.0 - - 12.6 Total private sector pension plan $ 2,062.7 $ 1,627.6 $ 1,665.1 $ 1,614.6 $ 2,233.5 Public Sector Pension Plans IRC Section 457 annuities $ 373.8 $ 394.4 $ 397.6 $ 379.0 $ 407.3 Administration only agreements 578.5 590.4 606.7 561.3 612.6 Total public sector pension plans $ 952.3 $ 984.8 $ 1,004.3 $ 940.3 $ 1,019.9 Total retirement plan sales $ 3,015.0 $ 2,612.4 $ 2,669.4 $ 2,554.9 $ 3,253.4 Retirement Plans Sales by Channel ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Private Sector Pension Plans Non-affiliated Independent broker/dealers $ 1,019.9 $ 793.2 $ 828.6 $ 770.3 $ 994.7 Wirehouse and regional firms 264.9 225.1 215.3 248.4 337.0 Financial institutions 154.5 125.7 133.8 137.2 167.7 Pension plan administrators 139.9 116.0 108.2 104.9 135.9 Affiliated Nationwide Retirement Solutions 7.2 8.9 8.4 8.5 8.6 Nationwide agents 20.8 16.5 39.0 19.2 24.0 Nationwide Financial Network 28.7 18.5 28.3 37.8 29.7 The 401(k) Company 426.8 323.7 303.5 288.3 535.9 Total private sector pension plans $ 2,062.7 $ 1,627.6 $ 1,665.1 $ 1,614.6 $ 2,233.5 Public Sector Pension Plans Nationwide Retirement Solutions $ 952.3 $ 984.8 $ 1,004.3 $ 940.3 $ 1,019.9 Total retirement plan sales $ 3,015.0 $ 2,612.4 $ 2,669.4 $ 2,554.9 $ 3,253.4 12
  • 16. Nationwide Financial Services, Inc. Statistical Supplement March 31, 2006 Individual Protection Quarterly Earnings Trends ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Operating Revenues Asset fees $ 9.3 $ 10.0 $ 10.4 $ 10.5 $ 11.0 Administrative fees 23.9 21.4 23.7 21.0 22.9 Surrender fees 7.3 7.7 6.4 6.5 6.3 Cost of insurance 96.4 96.8 97.8 97.5 98.9 Total policy charges 136.9 135.9 138.3 135.5 139.1 Net Investment Income General account assets 123.4 125.7 121.3 122.3 120.5 Charge for invested capital (4.3) (4.4) (4.2) (4.7) (4.3) Total net investment income 119.1 121.3 117.1 117.6 116.2 Traditional life premiums 73.8 75.0 70.8 77.4 75.9 Other income 8.8 6.6 5.2 9.2 7.2 Total operating revenues 338.6 338.8 331.4 339.7 338.4 Benefits Interest credited 45.6 49.6 48.0 47.5 45.6 Life benefits 102.4 103.6 105.6 107.9 115.1 Policyholder dividends 26.9 26.3 27.1 27.0 20.2 Total benefits 174.9 179.5 180.7 182.4 180.9 Expenses Commissions 35.8 32.8 27.9 33.8 35.6 General operating expenses 78.1 74.6 75.3 78.4 82.0 Deferral of policy acquisition costs (58.6) (49.2) (43.4) (49.9) (51.3) Subtotal 55.3 58.2 59.8 62.3 66.3 Amortization of policy acquisition costs 26.9 29.1 18.6 28.1 18.0 Amortization of value of business acquired 9.7 8.9 8.4 7.2 8.1 Interest expense on debt - 0.1 0.1 0.1 0.2 Total expenses 91.9 96.3 86.9 97.7 92.6 Pre-tax operating earnings $ 71.8 $ 63.0 $ 63.8 $ 59.6 $ 64.9 Key Ratios/Statistics General operating expenses to operating revenues 23.1% 22.0% 22.7% 23.1% 24.2% Pre-tax operating earnings to operating revenues 21.2% 18.6% 19.3% 17.5% 19.2% Average allocated capital $ 1,764.1 $ 1,782.5 $ 1,798.5 $ 1,817.9 $ 1,829.6 Return on average allocated capital 11.0% 9.6% 10.9% 9.5% 9.8% Adjusted return on average allocated capital (1) 11.0% 9.6% 10.0% 9.5% 9.8% (1) 3Q 2005 return adjusted for $3.7 million impact of one-time tax adjustments associated with separate account dividend received deductions. Note: All prior periods have been reclassified to reflect NFS Bermuda and TBG Lynch (a subsidiary of TBG Financial) as discontinued operations. Individual Protection Policy Reserves Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 ($ in millions) Individual investment life $ 4,892.1 $ 4,994.9 $ 5,209.5 $ 5,329.5 $ 5,573.1 Corporate investment life - general account 5,106.4 5,173.7 5,499.4 5,613.8 5,997.2 Corporate investment life - separate account 1,161.5 1,164.4 1,143.6 1,130.8 1,143.6 Subtotal investment life 11,160.0 11,333.0 11,852.5 12,074.1 12,713.9 Traditional life 4,234.5 4,227.9 4,229.8 4,225.2 4,210.3 Universal life 1,022.4 1,043.4 1,067.7 1,089.3 1,108.1 Subtotal fixed life 5,256.9 5,271.3 5,297.5 5,314.5 5,318.4 Total individual protection policy reserves $ 16,416.9 $ 16,604.3 $ 17,150.0 $ 17,388.6 $ 18,032.3 Individual Protection Insurance In Force ($ in millions) Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Individual investment life $ 56,772.8 $ 56,756.8 $ 56,739.3 $ 57,021.7 $ 57,164.1 Corporate investment life - general account 9,777.4 9,840.0 10,310.4 10,305.0 10,633.5 Corporate investment life - separate account 13,344.9 13,344.9 13,336.2 13,330.5 13,330.5 Subtotal investment life 79,895.1 79,941.7 80,385.9 80,657.2 81,128.1 Traditional life 33,596.4 34,628.5 35,500.1 36,589.3 37,678.6 Universal life 8,510.3 8,776.5 8,887.1 9,114.6 9,192.6 Subtotal fixed life 42,106.7 43,405.0 44,387.2 45,703.9 46,871.2 Total individual protection insurance in force $ 122,001.8 $ 123,346.7 $ 124,773.1 $ 126,361.1 $ 127,999.3 13

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