Nationwide Financial Services, Inc.
Statistical Supplement
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Nationwide Financial Services, Inc.
St...
Nationwide Financial Services, Inc.
Sta...
Nationwide Financial Services, Inc.
Statistical Supplement
June 30, 2008
This Page Intentionall...
Nationwide Financial Services, Inc.
St...
Nationwide Financial Services, Inc.
Stat...
Nationwide Financial Services, Inc.
Stat...
Nationwide Financial Services, Inc.
Statistical Supplement
June 30, 2008
This Page Intentionall...
Nationwide Financial Services, Inc.
Statistical...
Nationwide Financial Services, Inc.
...
Nationwide Financial Services, Inc.
Statistical S...
Nationwide Financial Services, Inc.
...
Nationwide Financial Services, Inc.
Statistical Suppl...
Nationwide Financial Services, Inc.
Statistica...
Nationwide Financial Services, Inc.
Statistical ...
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
nationwide 2Q08 Statistical Supplement
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nationwide 2Q08 Statistical Supplement

Published on: Mar 3, 2016
Published in: Economy & Finance      
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Transcripts - nationwide 2Q08 Statistical Supplement

  • 1. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 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 June 30, 2008 5 For the three months ended June 30, 2007 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 Nationwide Bank and Medium Term Notes Key Ratios and Statistics 17 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 lifetime withdrawal benefits 26 Individual variable annuity guaranteed minimum death benefit reserve 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
  • 2. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Quarterly Financial Highlights ($ in millions except for per share data) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Operating Revenues Individual investments $ 368.9 $ 359.0 $ 370.7 $ 338.8 $ 330.3 Retirement plans 283.3 284.9 296.9 279.1 281.0 Individual protection 331.8 332.8 345.8 344.6 354.7 Corporate and other 188.6 172.1 173.4 135.9 144.3 Total operating revenues $ 1,172.6 $ 1,148.8 $ 1,186.8 $ 1,098.4 $ 1,110.3 Net realized investment gains/(losses) (1) (4.2) (17.0) (118.1) (182.1) (29.8) Total revenues $ 1,168.4 $ 1,131.8 $ 1,068.7 $ 916.3 $ 1,080.5 Pre-tax Operating Earnings Individual investments $ 109.4 $ 65.0 $ 69.1 $ 62.5 $ 47.7 Retirement plans 64.9 59.6 75.9 53.9 55.6 Individual protection 81.6 65.2 69.3 64.9 78.4 Corporate and other 25.8 13.9 2.3 (13.9) 4.9 Pre-tax operating earnings $ 281.7 $ 203.7 $ 216.6 $ 167.4 $ 186.6 Federal income tax expense 81.3 49.1 54.9 35.9 59.0 Net operating earnings $ 200.4 $ 154.6 $ 161.7 $ 131.5 $ 127.6 Net realized investment gains/(losses), net of taxes (2) (1.2) (8.4) (66.2) (87.9) (41.5) Discontinued operations, net of taxes (1.9) 0.8 (21.3) 0.9 (0.7) Net income $ 197.3 $ 147.0 $ 74.2 $ 44.5 $ 85.4 Per Common Diluted Share Net operating earnings $ 1.39 $ 1.08 $ 1.16 $ 0.95 $ 0.92 Net realized investment gains/(losses), net of taxes (2) (0.01) (0.06) (0.48) (0.64) (0.29) Discontinued operations, net of taxes (0.01) 0.01 (0.15) 0.01 (0.01) Net income $ 1.37 $ 1.03 $ 0.53 $ 0.32 $ 0.62 Sales by Channel Non-affiliated Independent broker/dealers $ 1,510.5 $ 1,555.0 $ 1,580.5 $ 1,561.9 $ 1,425.4 Wirehouse and regional firms 680.7 703.6 815.0 706.4 608.9 Financial institutions 642.8 604.1 663.8 610.7 553.3 Pension plan administrators 98.9 95.6 137.4 119.6 101.1 Life specialists 91.1 12.9 137.3 105.6 95.3 Affiliated Nationwide Retirement Solutions 1,079.6 1,073.8 1,064.3 1,161.1 1,114.2 Nationwide Financial Network 370.0 357.7 386.8 320.9 316.6 Mullin TBG 62.5 41.5 4.2 99.9 53.5 Total $ 4,536.1 $ 4,444.2 $ 4,789.3 $ 4,686.1 $ 4,268.3 (1) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations). (2) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations), and net of adjustment to amortization related to net realized gains/(losses). Note: The results of operations of TBG Financial are reflected as discontinued operations. During the quarter ended June 30, 2007, NFS restated its consolidated financial statements for all periods presented to reflect 1) the resulting change in reporting entity related to a current year acquisition (Nationwide Funds Group (NFG)) and 2) the change in accounting principle related to the accrual for litigation loss contingency legal expenses. 1
  • 3. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Quarterly Financial Highlights ($ in millions except for per share data) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Balance Sheet Data Total assets $ 121,390.3 $ 121,460.5 $ 119,207.1 $ 112,612.6 $ 110,771.2 Customer funds managed and administered $ 164,261.0 $ 165,275.2 $ 162,365.4 $ 153,304.6 $ 152,818.5 Shareholders' equity Including accumulated other comprehensive income (AOCI) (1) $ 5,453.2 $ 5,340.4 $ 5,324.6 $ 5,003.9 $ 4,912.6 AOCI (69.1) (61.1) (81.5) (378.4) (525.2) Excluding AOCI $ 5,522.3 $ 5,401.5 $ 5,406.1 $ 5,382.3 $ 5,437.8 Net operating return on average equity excluding AOCI 14.3% 11.3% 12.0% 9.8% 9.4% Statutory capital and surplus $ 3,182.6 $ 3,249.3 $ 3,175.1 $ 2,990.9 $ 3,015.0 Stock Data Closing Price $ 63.22 $ 53.82 $ 45.01 $ 47.28 $ 48.01 Weighted average common shares outstanding Basic 143.2 141.8 139.0 137.9 137.8 Diluted 144.3 142.7 139.7 138.3 138.6 Book value per share Including AOCI $ 38.08 $ 38.48 $ 38.44 $ 36.31 $ 35.62 Excluding AOCI $ 38.56 $ 38.92 $ 39.03 $ 39.06 $ 39.43 (1) Includes changes in fair value of certain investments and derivatives under SFAS 115 and SFAS 133. Note: The results of operations of TBG Financial are reflected as discontinued operations. NFS Operating Segment Reporting Structure NATIONWIDE FINANCIAL SERVICES, INC. Individual Retirement Individual Corporate Investments Plans Protection and Other Medium Term Notes Public Sector - 457 Variable Annuities Fixed Life Universal Fixed Annuities Nationwide Bank Whole Private Sector – 401(k) Term Income Products Nationwide Funds Group Investment Life Variable Universal Structured Products Advisory Services COLI Corporate Other 2
  • 4. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 This Page Intentionally Left Blank. 3
  • 5. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Quarterly Consolidated Income Statements ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Operating Revenues Asset fees $ 193.0 $ 193.5 $ 202.5 $ 183.9 $ 187.6 Cost of insurance charges 103.7 105.1 107.6 109.5 111.2 Administrative fees 28.0 29.7 32.7 32.9 39.4 Surrender fees 18.4 17.2 16.6 18.8 16.2 Total policy charges 343.1 345.5 359.4 345.1 354.4 Premiums 104.9 101.7 115.7 109.1 105.2 Net investment income 577.8 547.3 561.8 519.5 511.5 Operating realized gains (losses) 1.6 (3.4) (12.7) (16.8) (4.1) Other income 145.2 157.7 162.6 141.5 143.3 Total operating revenues 1,172.6 1,148.8 1,186.8 1,098.4 1,110.3 Benefits Interest credited to policyholder accounts 337.0 333.3 329.6 312.6 294.1 Life insurance and annuity benefits 186.1 161.4 181.8 183.5 178.7 Policyholder dividends 20.0 23.1 18.7 23.9 24.4 Total benefits 543.1 517.8 530.1 520.0 497.2 Expenses Commissions 182.0 182.2 202.4 181.2 179.9 General operating expenses 249.9 243.0 237.0 234.3 240.3 Debt extinguishment costs 10.2 - - - - Deferral of policy acquisition costs (158.0) (155.0) (173.2) (154.5) (158.1) Subtotal 284.1 270.2 266.2 261.0 262.1 Amortization of policy acquisition costs 20.8 116.3 134.8 113.9 135.2 Amortization of value of business acquired 15.4 11.9 9.4 8.4 3.3 Interest expense 27.5 28.9 29.7 27.7 25.9 Total expenses 347.8 427.3 440.1 411.0 426.5 Pre-tax operating earnings $ 281.7 $ 203.7 $ 216.6 $ 167.4 $ 186.6 Federal income tax expense 81.3 49.1 54.9 35.9 59.0 Net operating earnings $ 200.4 $ 154.6 $ 161.7 $ 131.5 $ 127.6 (1) Net realized investment gains/(losses), net of taxes Realized gains/(losses) on sales, net of hedging 2.3 3.1 1.2 (5.0) (1.4) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (4.1) (10.7) (52.7) (57.5) (62.1) Credit default swaps (1.0) (0.8) (1.9) (1.7) (1.1) Derivatives, excluding hedging gains and losses on sales and credit default swaps 1.5 0.3 (12.6) (23.8) 20.5 Amounts credited to policyholder dividend obligation (0.1) (0.5) (0.4) (0.1) 2.4 Adjustment to VOBA amortization 0.2 0.2 0.2 0.2 0.2 Subtotal (1.2) (8.4) (66.2) (87.9) (41.5) Discontinued operations, net of taxes (1.9) 0.8 (21.3) 0.9 (0.7) Net income $ 197.3 $ 147.0 $ 74.2 $ 44.5 $ 85.4 (1) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations), and net of adjustment to amortization related to net realized gains/(losses). Note: The results of operations of TBG Financial are reflected as discontinued operations. 4
  • 6. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Combining Income Statement For the three months ended June 30, 2008 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees $ 145.2 $ 29.5 $ 12.9 $ - $ 187.6 Cost of insurance charges - - 111.2 - 111.2 Administrative fees 8.3 3.4 27.7 - 39.4 Surrender fees 9.7 0.5 6.0 - 16.2 Total policy charges 163.2 33.4 157.8 - 354.4 Premiums 30.0 - 75.2 - 105.2 Net investment income 129.9 160.3 120.8 100.5 511.5 Operating realized gains (losses) - - - (4.1) (4.1) Other income 7.2 87.3 0.9 47.9 143.3 Total operating revenues 330.3 281.0 354.7 144.3 1,110.3 Benefits Interest credited to policyholder accounts 92.4 106.5 48.3 46.9 294.1 Life insurance and annuity benefits 57.3 - 121.4 - 178.7 Policyholder dividends - - 24.4 - 24.4 Total benefits 149.7 106.5 194.1 46.9 497.2 Expenses Commissions 85.2 42.2 49.3 3.2 179.9 General operating expenses 44.4 73.3 59.2 63.4 240.3 Deferral of policy acquisition costs (82.1) (8.9) (67.1) - (158.1) Subtotal 47.5 106.6 41.4 66.6 262.1 Amortization of policy acquisition costs 82.0 12.0 41.2 - 135.2 Amortization of value of business acquired 3.4 0.3 (0.4) - 3.3 Interest expense - - - 25.9 25.9 Total expenses 132.9 118.9 82.2 92.5 426.5 Pre-tax operating earnings $ 47.7 $ 55.6 $ 78.4 $ 4.9 $ 186.6 Federal income tax expense 59.0 Net operating earnings $ 127.6 (1) Net realized investment gains/(losses), net of taxes (41.5) Discontinued operations, net of taxes (0.7) Net income $ 85.4 (1) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations), and net of adjustment to amortization related to net realized gains/(losses). Note: The results of operations of TBG Financial are reflected as discontinued operations. 5
  • 7. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Combining Income Statement For the three months ended June 30, 2007 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees $ 146.8 $ 33.1 $ 13.1 $ - $ 193.0 Cost of insurance charges - - 103.7 - 103.7 Administrative fees 6.2 2.6 19.2 - 28.0 Surrender fees 12.6 1.1 4.7 - 18.4 Total policy charges 165.6 36.8 140.7 - 343.1 Premiums 30.2 - 74.7 - 104.9 Net investment income 167.0 161.9 115.7 133.2 577.8 Operating realized gains (losses) - - - 1.6 1.6 Other income 6.1 84.6 0.7 53.8 145.2 Total operating revenues 368.9 283.3 331.8 188.6 1,172.6 Benefits Interest credited to policyholder accounts 114.4 111.0 47.6 64.0 337.0 Life insurance and annuity benefits 74.7 - 111.4 - 186.1 Policyholder dividends - - 20.0 - 20.0 Total benefits 189.1 111.0 179.0 64.0 543.1 Expenses Commissions 100.0 42.2 31.9 7.9 182.0 General operating expenses 57.3 74.8 64.6 53.2 249.9 Debt extinguishment costs - - - 10.2 10.2 Deferral of policy acquisition costs (100.9) (9.3) (47.8) - (158.0) Subtotal 56.4 107.7 48.7 71.3 284.1 Amortization of policy acquisition costs 12.7 (0.9) 9.0 - 20.8 Amortization of value of business acquired 1.3 0.6 13.5 - 15.4 Interest expense - - - 27.5 27.5 Total expenses 70.4 107.4 71.2 98.8 347.8 Pre-tax operating earnings $ 109.4 $ 64.9 $ 81.6 $ 25.8 $ 281.7 Federal income tax expense 81.3 Net operating earnings $ 200.4 (1) Net realized investment gains/(losses), net of taxes (1.2) Discontinued operations, net of taxes (1.9) Net income $ 197.3 (1) Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, and net realized gains and losses related to securitizations), and net of adjustment to amortization related to net realized gains/(losses). Note: The results of operations of TBG Financial are reflected as discontinued operations. 6
  • 8. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 This Page Intentionally Left Blank. 7
  • 9. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Quarterly Consolidated Balance Sheets ($ in millions, except per share data) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Assets Investments Securities available-for-sale, at fair value: Fixed maturity securities $ 27,479.5 $ 27,295.4 $ 27,189.2 $ 26,796.7 $ 26,209.8 Equity securities 71.3 69.7 124.2 117.6 114.7 Trading assets 28.2 24.7 37.7 66.5 55.4 Mortgage loans on real estate, net 8,457.5 8,534.5 8,316.1 8,156.4 7,940.6 Real estate 48.0 29.5 21.8 21.6 18.0 Policy loans 991.5 1,007.2 1,018.3 1,036.7 1,042.0 Other long-term investments 1,277.6 1,195.7 1,187.2 1,164.3 1,156.0 Short-term investments 1,756.9 1,395.2 1,173.6 1,327.5 1,008.5 Total investments 40,110.5 39,551.9 39,068.1 38,687.3 37,545.0 Cash 53.8 73.2 73.6 73.0 180.9 Accrued investment income 356.1 412.5 368.4 420.1 337.7 Deferred policy acquisition costs 4,051.1 4,054.1 4,095.6 4,267.0 4,367.6 Value of business acquired 370.8 363.9 354.8 345.9 345.7 Other intangible assets 45.9 45.1 44.3 43.5 42.7 Goodwill 341.7 350.6 301.2 301.2 301.2 Other assets 2,267.6 2,822.5 2,046.1 2,187.0 1,893.8 Separate account assets 73,792.8 73,786.7 72,855.0 66,287.6 65,756.6 Total assets $ 121,390.3 $ 121,460.5 $ 119,207.1 $ 112,612.6 $ 110,771.2 Liabilities and shareholders' equity Future policy benefits and claims $ 36,453.5 $ 36,313.2 $ 35,441.5 $ 35,523.0 $ 34,568.6 Short-term debt 249.7 454.1 309.3 327.6 412.5 Long-term debt 1,499.7 1,515.1 1,565.1 1,620.0 1,660.1 Other liabilities 3,941.4 4,051.0 3,711.6 3,850.5 3,460.8 Separate account liabilities 73,792.8 73,786.7 72,855.0 66,287.6 65,756.6 115,937.1 116,120.1 113,882.5 107,608.7 105,858.6 Shareholders' equity 5,453.2 5,340.4 5,324.6 5,003.9 4,912.6 Total liabilities and shareholders' equity $ 121,390.3 $ 121,460.5 $ 119,207.1 $ 112,612.6 $ 110,771.2 Capital Structure ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Total capital, including AOCI $ 6,952.9 $ 6,855.5 $ 6,889.7 $ 6,623.9 $ 6,572.7 Less AOCI (69.1) (61.1) (81.5) (378.4) (525.2) Total capital, excluding AOCI $ 7,022.0 $ 6,916.6 $ 6,971.2 $ 7,002.3 $ 7,097.9 Leverage, including AOCI Long-term debt--to--total capital 21.6% 22.1% 22.7% 24.5% 25.3% Leverage, excluding AOCI Long-term debt--to--total capital 21.4% 21.9% 22.5% 23.1% 23.4% Ratio of pre-tax operating earnings before interest expense to interest expense 11.2X 8.0X 8.3X 7.0X 8.2X 8
  • 10. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Individual Investments Quarterly Earnings Trends ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Operating Revenues Asset fees $ 146.8 $ 148.0 $ 155.0 $ 141.9 $ 145.2 Administrative fees 6.2 7.0 7.6 7.3 8.3 Surrender fees 12.6 11.5 11.2 11.5 9.7 Total policy charges 165.6 166.5 173.8 160.7 163.2 Net Investment Income General account assets 174.5 160.8 155.5 142.6 134.3 Charge for invested capital (7.5) (7.4) (7.0) (5.6) (4.4) Total net investment income 167.0 153.4 148.5 137.0 129.9 Premiums 30.2 29.7 39.9 34.1 30.0 Other income 6.1 9.4 8.5 7.0 7.2 Total operating revenues 368.9 359.0 370.7 338.8 330.3 Benefits Interest credited to policyholder accounts 114.4 109.7 102.0 96.0 92.4 Immediate annuity benefits 26.9 27.1 36.7 31.4 31.5 Policy benefits 47.8 24.8 23.6 23.1 25.8 Total benefits 189.1 161.6 162.3 150.5 149.7 Expenses Commissions 100.0 101.1 108.2 91.9 85.2 General operating expenses 57.3 50.2 41.3 44.6 44.4 Deferral of policy acquisition costs (100.9) (100.1) (106.6) (89.2) (82.1) Subtotal 56.4 51.2 42.9 47.3 47.5 Amortization of policy acquisition costs 12.7 79.8 95.1 77.7 82.0 Amortization of value of business acquired 1.3 1.4 1.3 0.8 3.4 Total expenses 70.4 132.4 139.3 125.8 132.9 Pre-tax operating earnings $ 109.4 $ 65.0 $ 69.1 $ 62.5 $ 47.7 Key Ratios/Statistics Average Account Values: General account $ 12,172.9 $ 11,588.1 $ 10,909.1 $ 10,486.4 $ 10,181.8 Separate account 40,992.6 42,502.5 42,692.8 40,617.9 38,688.8 Advisory services program 630.3 656.6 658.4 625.8 563.6 Total average individual investments account values $ 53,795.8 $ 54,747.2 $ 54,260.3 $ 51,730.1 $ 49,434.2 Earned rate 5.73% 5.55% 5.70% 5.44% 5.28% Credited rate 3.76% 3.79% 3.74% 3.66% 3.63% Interest spread on average general account values 1.97% 1.76% 1.96% 1.78% 1.65% Income from mortgage loan prepayments and bond call premiums 0.17% 0.09% 0.18% 0.04% 0.00% Base interest spread on average general account values 1.80% 1.67% 1.78% 1.74% 1.65% Asset fees to average separate account values 1.43% 1.39% 1.45% 1.40% 1.50% General operating expenses to average account values 0.43% 0.37% 0.30% 0.34% 0.36% Pre-tax operating earnings to average account values 0.81% 0.48% 0.51% 0.48% 0.39% Pre-tax operating earnings to operating revenues 29.7% 18.1% 18.6% 18.4% 14.4% Average allocated capital $ 1,393.8 $ 1,454.6 $ 1,439.5 $ 1,414.4 $ 1,392.0 Return on average allocated capital 22.4% 15.4% 14.4% 15.0% 9.8% Individual Investments Account Value Activity ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Individual Variable Annuities Balance, beginning of period $ 44,211.7 $ 46,131.5 $ 47,067.0 $ 46,121.5 $ 42,698.3 Deposits 1,499.1 1,496.9 1,673.9 1,309.5 1,217.8 Withdrawals and surrenders (1,714.0) (1,707.2) (1,776.6) (1,669.9) (1,678.9) Net flows (214.9) (210.3) (102.7) (360.4) (461.1) Investment performance/interest credited to policyholder accounts 2,213.2 1,237.6 (536.8) (3,123.1) 85.7 Policy charges (162.5) (165.6) (171.0) (159.5) (161.7) Benefits and other 84.0 73.8 (135.0) 219.8 (86.2) Balance, end of period $ 46,131.5 $ 47,067.0 $ 46,121.5 $ 42,698.3 $ 42,075.0 Individual Fixed Annuities Balance, beginning of period $ 6,158.4 $ 5,721.2 $ 5,113.3 $ 4,717.3 $ 4,468.0 Deposits 45.8 49.8 52.5 43.7 45.0 Withdrawals and surrenders (535.4) (706.3) (491.5) (331.8) (275.3) Net flows (489.6) (656.5) (439.0) (288.1) (230.3) Policyholder interest credited 54.3 50.5 44.4 39.8 37.9 Policy charges (1.9) (1.9) (1.4) (0.9) (0.9) Benefits and other - - - (0.1) (1.6) Balance, end of period $ 5,721.2 $ 5,113.3 $ 4,717.3 $ 4,468.0 $ 4,273.1 Income Products $ 2,064.4 $ 2,083.8 $ 2,101.0 $ 2,102.5 $ 2,124.1 Advisory Services Program $ 643.7 $ 669.5 $ 647.2 $ 604.4 $ 522.8 Total individual investment account values $ 54,560.8 $ 54,933.6 $ 53,587.0 $ 49,873.2 $ 48,995.0 9
  • 11. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Individual Investments Account Values by Product ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Individual Variable Annuities BEST of AMERICA products $ 38,367.4 $ 39,167.0 $ 38,371.2 $ 35,629.1 $ 35,183.3 Private label annuities 7,414.2 7,561.7 7,438.1 6,801.6 6,638.2 Nationwide Financial Network and other 349.9 338.3 312.2 267.6 253.5 Total individual variable annuities $ 46,131.5 $ 47,067.0 $ 46,121.5 $ 42,698.3 $ 42,075.0 Individual Fixed Annuities $ 5,721.2 $ 5,113.3 $ 4,717.3 $ 4,468.0 $ 4,273.1 Income Products $ 2,064.4 $ 2,083.8 $ 2,101.0 $ 2,102.5 $ 2,124.1 Advisory Services Program $ 643.7 $ 669.5 $ 647.2 $ 604.4 $ 522.8 Total individual investment account values $ 54,560.8 $ 54,933.6 $ 53,587.0 $ 49,873.2 $ 48,995.0 Individual Investments Sales by Product ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Individual Variable Annuities BEST of AMERICA products $ 1,296.5 $ 1,274.4 $ 1,431.2 $ 1,090.4 $ 997.1 Private label annuities 97.5 118.5 145.4 118.0 113.5 Nationwide Financial Network and other 0.8 0.6 0.5 0.7 0.5 Total individual variable annuities $ 1,394.8 $ 1,393.5 $ 1,577.1 $ 1,209.1 $ 1,111.1 Individual Fixed Annuities $ 40.1 $ 37.0 $ 41.9 $ 40.6 $ 43.1 Income Products $ 50.2 $ 54.4 $ 56.6 $ 48.8 $ 57.5 Advisory Services Program $ 36.6 $ 42.6 $ 31.2 $ 23.2 $ 24.9 Total individual investment sales $ 1,521.7 $ 1,527.5 $ 1,706.8 $ 1,321.7 $ 1,236.6 Individual Investments Sales by Channel ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Individual Variable Annuities Non-affiliated Independent broker/dealers $ 448.9 $ 464.3 $ 502.8 $ 385.7 $ 364.0 Wirehouse and regional firms 370.1 392.0 481.9 345.1 313.4 Financial institutions 465.8 442.1 478.1 395.0 360.2 Affiliated Nationwide Financial Network 110.0 95.1 114.3 83.3 73.5 Total individual variable annuities $ 1,394.8 $ 1,393.5 $ 1,577.1 $ 1,209.1 $ 1,111.1 Individual Fixed Annuities Non-affiliated Independent broker/dealers $ 5.1 $ 7.3 $ 2.9 $ 9.3 $ 6.5 Wirehouse and regional firms 2.3 2.0 3.0 1.3 2.7 Financial institutions 13.9 9.9 16.9 14.7 14.6 Affiliated Nationwide Financial Network 18.8 17.8 19.1 15.3 19.3 Total individual fixed annuities $ 40.1 $ 37.0 $ 41.9 $ 40.6 $ 43.1 Income Products Non-affiliated Independent broker/dealers $ 24.8 $ 25.2 $ 25.8 $ 20.7 $ 28.6 Wirehouse and regional firms 15.7 20.3 15.5 16.8 16.4 Financial institutions 6.3 5.1 10.1 8.0 8.7 Affiliated Nationwide Financial Network 3.4 3.8 5.2 3.3 3.8 Total income products $ 50.2 $ 54.4 $ 56.6 $ 48.8 $ 57.5 Advisory Services Program Non-affiliated Independent broker/dealers $ 25.2 $ 27.0 $ 17.7 $ 16.8 $ 18.3 Financial institutions 3.2 2.4 3.9 2.4 1.3 Affiliated Nationwide Financial Network 8.2 13.2 9.6 4.0 5.3 Total advisory services program $ 36.6 $ 42.6 $ 31.2 $ 23.2 $ 24.9 Total individual investment sales $ 1,521.7 $ 1,527.5 $ 1,706.8 $ 1,321.7 $ 1,236.6 10
  • 12. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Retirement Plans Quarterly Earnings Trends ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Operating Revenues Asset fees $ 33.1 $ 32.1 $ 33.6 $ 29.2 $ 29.5 Administrative fees 2.6 3.2 3.4 3.3 3.4 Surrender fees 1.1 0.6 0.3 0.5 0.5 Total policy charges 36.8 35.9 37.3 33.0 33.4 Net investment income 161.9 162.1 165.7 161.7 160.3 Other income 84.6 86.9 93.9 84.4 87.3 Total operating revenues 283.3 284.9 296.9 279.1 281.0 Benefits Interest credited to policyholder accounts 111.0 111.9 109.3 107.6 106.5 Expenses Commissions 42.2 42.2 44.9 42.9 42.2 General operating expenses 74.8 70.1 66.0 73.3 73.3 Deferral of policy acquisition costs (9.3) (9.0) (8.8) (9.2) (8.9) Subtotal 107.7 103.3 102.1 107.0 106.6 Amortization of policy acquisition costs (0.9) 9.4 9.1 10.1 12.0 Amortization of value of business acquired 0.6 0.7 0.5 0.5 0.3 Total expenses 107.4 113.4 111.7 117.6 118.9 Pre-tax operating earnings $ 64.9 $ 59.6 $ 75.9 $ 53.9 $ 55.6 Key Ratios/Statistics Average Account Values: General account $ 11,216.3 $ 11,176.4 $ 11,040.5 $ 11,042.8 $ 11,122.8 Separate account 18,256.8 17,569.7 16,738.5 15,791.2 14,881.8 Non insurance assets 20,581.9 21,648.1 21,870.7 21,315.7 20,985.4 Administration only 29,485.9 30,715.0 31,139.3 30,396.6 29,746.7 Total average retirement plan account values $ 79,540.9 $ 81,109.2 $ 80,789.0 $ 78,546.3 $ 76,736.7 Earned rate 5.77% 5.80% 6.00% 5.86% 5.77% Credited rate 3.95% 4.00% 3.96% 3.90% 3.83% Interest spread on average general account values 1.82% 1.80% 2.04% 1.96% 1.94% Income from mortgage loan prepayments and bond call premiums 0.07% 0.06% 0.18% 0.14% 0.05% Base interest spread on average general account values 1.75% 1.74% 1.86% 1.82% 1.89% Asset fees to average separate account values 0.73% 0.73% 0.80% 0.74% 0.79% General operating expenses to average account values 0.38% 0.35% 0.33% 0.37% 0.38% Pre-tax operating earnings to average account values 0.33% 0.29% 0.38% 0.27% 0.29% Pre-tax operating earnings to operating revenue 22.9% 20.9% 25.6% 19.3% 19.8% Average allocated capital $ 737.4 $ 747.1 $ 774.0 $ 774.8 $ 770.3 Return on average allocated capital 24.8% 23.5% 26.8% 20.4% 19.2% Retirement Plans Account Value Activity ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Private Sector Pension Plans Balance, beginning of period $ 32,927.9 $ 33,929.2 $ 32,726.5 $ 32,286.5 $ 30,571.0 New deposits/sales 1,506.2 1,536.8 1,580.9 1,760.2 1,496.5 Participant withdrawals and surrenders (1,255.6) (1,402.9) (1,624.3) (1,460.4) (1,406.6) Net flows 250.6 133.9 (43.4) 299.8 89.9 Investment performance/interest credited to policyholder accounts 1,506.2 721.2 (328.5) (1,954.9) 70.1 Policy charges and other (65.8) (66.5) (68.1) (60.4) (62.3) Case acquisitions/(terminations), net (689.7) (1,991.3) - - - Balance, end of period $ 33,929.2 $ 32,726.5 $ 32,286.5 $ 30,571.0 $ 30,668.7 Public Sector Pension Plans Balance, beginning of period $ 44,966.9 $ 47,257.8 $ 48,304.8 $ 48,260.1 $ 45,975.0 New deposits/sales 1,071.9 1,066.0 1,055.8 1,153.1 1,107.5 Participant withdrawals and surrenders (747.2) (812.7) (780.6) (883.0) (826.4) Net flows 324.7 253.3 275.2 270.1 281.1 Investment performance/interest credited 2,032.2 1,065.0 (141.2) (2,482.6) 131.8 Policy charges and other (20.4) (21.0) (21.4) (18.3) (18.6) Case acquisitions/(terminations), net (45.6) (250.3) (157.3) (54.3) (110.6) Balance, end of period $ 47,257.8 $ 48,304.8 $ 48,260.1 $ 45,975.0 $ 46,258.7 Total retirement plan account values $ 81,187.0 $ 81,031.3 $ 80,546.6 $ 76,546.0 $ 76,927.4 11
  • 13. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Retirement Plans Account Values by Product ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Private Sector Pension Plans BEST of AMERICA annuity products $ 7,514.0 $ 7,470.0 $ 7,178.6 $ 6,452.7 $ 6,235.8 BEST of AMERICA trust products 21,369.3 21,926.9 21,814.6 20,816.8 21,154.0 Subtotal BEST of AMERICA 28,883.3 29,396.9 28,993.2 27,269.5 27,389.8 Nationwide Financial Network products 1,044.0 1,033.2 1,014.5 960.1 955.9 Nationwide employee and agent benefit plans 3,482.8 1,782.5 1,795.4 1,862.7 1,859.1 Other 519.1 513.9 483.4 478.7 463.9 Total private sector pension plans $ 33,929.2 $ 32,726.5 $ 32,286.5 $ 30,571.0 $ 30,668.7 Public Sector Pension Plans IRC Section 457 annuities $ 16,942.6 $ 17,190.1 $ 17,096.3 $ 16,345.6 $ 16,394.5 Administration only agreements 30,315.2 31,114.7 31,163.8 29,629.4 29,864.2 Total public sector pension plans $ 47,257.8 $ 48,304.8 $ 48,260.1 $ 45,975.0 $ 46,258.7 Total retirement plan account values $ 81,187.0 $ 81,031.3 $ 80,546.6 $ 76,546.0 $ 76,927.4 Retirement Plans Sales by Product ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Private Sector Pension Plans BEST of AMERICA annuity products $ 254.8 $ 249.3 $ 242.1 $ 257.3 $ 218.7 BEST of AMERICA trust products 1,190.1 1,201.7 1,247.1 1,383.7 1,205.0 Subtotal BEST of AMERICA 1,444.9 1,451.0 1,489.2 1,641.0 1,423.7 Nationwide Financial Network products 31.2 38.6 43.7 46.9 32.6 Other 19.8 14.9 27.0 20.8 19.5 Total private sector pension plans $ 1,495.9 $ 1,504.5 $ 1,559.9 $ 1,708.7 $ 1,475.8 Public Sector Pension Plans IRC Section 457 annuities $ 385.5 $ 387.1 $ 386.2 $ 435.8 $ 443.4 Administration only agreements 686.5 679.0 669.5 717.2 663.3 Total public sector pension plans 1,072.0 1,066.1 1,055.7 1,153.0 1,106.7 Total retirement plan sales $ 2,567.9 $ 2,570.6 $ 2,615.6 $ 2,861.7 $ 2,582.5 Retirement Plans Sales by Channel ($ in millions) Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Private Sector Pension Plans Non-affiliated Independent broker/dealers $ 945.0 $ 959.4 $ 949.3 $ 1,048.4 $ 927.2 Wirehouse and regional firms 274.3 267.6 293.8 324.0 256.6 Financial institutions 137.9 126.6 134.2 172.6 152.7 Pension plan administrators 98.9 95.6 137.4 119.6 101.1 Affiliated Nationwide Retirement Solutions 7.6 7.7 8.6 8.1 7.5 Nationwide Financial Network 32.2 47.6 36.6 36.0 30.7 Total private sector pension plans $ 1,495.9 $ 1,504.5 $ 1,559.9 $ 1,708.7 $ 1,475.8 Public Sector Pension Plans Nationwide Retirement Solutions $ 1,072.0 $ 1,066.1 $ 1,055.7 $ 1,153.0 $ 1,106.7 Total retirement plan sales $ 2,567.9 $ 2,570.6 $ 2,615.6 $ 2,861.7 $ 2,582.5 12
  • 14. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Individual Protection Quarterly Earnings Trends Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 ($ in millions) Operating Revenues Asset fees $ 13.1 $ 13.4 $ 13.9 $ 12.8 $ 12.9 Cost of insurance charges 103.7 105.1 107.6 109.5 111.2 Administrative fees 19.2 19.5 21.7 22.3 27.7 Surrender fees 4.7 5.1 5.1 6.8 6.0 Total policy charges 140.7 143.1 148.3 151.4 157.8 Net Investment Income General account assets 120.4 120.8 124.4 121.2 123.7 Charge for invested capital (4.7) (4.1) (4.2) (3.7) (2.9) Total net investment income 115.7 116.7 120.2 117.5 120.8 Premiums 74.7 72.0 75.8 75.0 75.2 Other income 0.7 1.0 1.5 0.7 0.9 Total operating revenues 331.8 332.8 345.8 344.6 354.7 Benefits Interest credited to policyholder accounts 47.6 48.1 49.0 47.6 48.3 Life benefits 111.4 109.5 121.5 129.0 121.4 Policyholder dividends 20.0 23.1 18.7 23.9 24.4 Total benefits 179.0 180.7 189.2 200.5 194.1 Expenses Commissions 31.9 32.1 43.4 42.3 49.3 General operating expenses 64.6 63.8 63.7 59.9 59.2 Deferral of policy acquisition costs (47.8) (45.9) (57.8) (56.1) (67.1) Subtotal 48.7 50.0 49.3 46.1 41.4 Amortization of policy acquisition costs 9.0 27.1 30.6 26.1 41.2 Amortization of value of business acquired 13.5 9.8 7.4 7.0 (0.4) Total expenses 71.2 86.9 87.3 79.2 82.2 Pre-tax operating earnings $ 81.6 $ 65.2 $ 69.3 $ 64.9 $ 78.4 Key Ratios/Statistics General operating expenses to operating revenues 19.5% 19.2% 18.4% 17.4% 16.7% Pre-tax operating earnings to operating revenues 24.6% 19.6% 20.0% 18.8% 22.1% Average allocated capital $ 1,973.6 $ 1,973.5 $ 1,998.0 $ 2,024.4 $ 2,042.4 Return on average allocated capital 11.3% 9.4% 9.5% 9.1% 10.2% Note: The results of operations of TBG Financial are reflected as discontinued operations. Individual Protection Policy Reserves Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 ($ in millions) Individual investment life $ 6,251.2 $ 6,400.5 $ 6,298.2 $ 5,776.6 $ 5,748.4 Corporate investment life - excluding experience rated BOLI 7,049.6 7,162.0 7,192.9 7,002.4 7,065.0 Corporate investment life - experience rated BOLI 2,009.4 2,023.3 2,085.9 1,501.3 1,474.6 Subtotal investment life 15,310.2 15,585.8 15,577.0 14,280.3 14,288.0 Traditional life 4,150.0 4,152.0 4,156.4 4,156.1 4,166.0 Universal life 1,191.4 1,218.6 1,257.1 1,294.0 1,327.7 Subtotal fixed life 5,341.4 5,370.6 5,413.5 5,450.1 5,493.7 Total individual protection policy reserves $ 20,651.6 $ 20,956.4 $ 20,990.5 $ 19,730.4 $ 19,781.7 Individual Protection Insurance In Force Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 ($ in millions) Individual investment life $ 57,489.0 $ 57,514.1 $ 57,772.0 $ 57,196.0 $ 57,030.2 Corporate investment life - excluding experience rated BOLI 11,963.4 11,963.0 11,980.3 12,014.9 12,150.9 Corporate investment life - experience rated BOLI 13,295.4 13,289.7 13,311.2 13,284.0 13,270.7 Subtotal investment life 82,747.8 82,766.8 83,063.5 82,494.9 82,451.8 Traditional life 41,631.0 41,882.4 43,970.7 44,899.4 47,294.6 Universal life 10,270.3 10,100.8 10,484.5 10,764.5 10,983.6 Subtotal fixed life 51,901.3 51,983.2 54,455.2 55,663.9 58,278.2 Total individual protection insurance in force $ 134,649.1 $ 134,750.0 $ 137,518.7 $ 138,158.8 $ 140,730.0 13
  • 15. Nationwide Financial Services, Inc. Statistical Supplement June 30, 2008 Individual Protection Sales by Product Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 ($ in millions) BEST of AMERICA Variable Life Series First year sales $ 33.5 $ 39.6 $ 39.4 $ 30.1 $ 32.9 Renewal sales 74.3 73.2 80.2 71.2 72.9 Total BEST of AMERICA variable life series 107.8 112.8 119.6 101.3 105.8 Nationwide Financial Network Variable Life Products First year sales 2.0 1.5 1.6 1.9 1.8 Renewal sales 47.3 42.0 43.8 41.6 38.9 Total Nationwide Financial Network variable life products 49.3 43.5 45.4 43.5 40.7 Corporate Owned Life Insurance (COLI) First year sales 61.0 20.6 61.3 69.9 49.3 Renewal sales 92.6 33.8 80.2 135.6 99.5 Total COLI 153.6 54.4 141.5 205.5 148.8 Traditional/Universal life First year sales 24.4 32.0 44.7 48.2 41.4 Renewal sales 111.4 103.4 115.7 104.2 112.5 Total traditional/universal life 135.8 135.4 160.4 152.4 153.9 Total individual protection sales $ 446.5 $ 346.1 $ 466.9 $ 502.7 $ 449.2 Individual Protection Sales by Channel Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 ($ in millions) Non-affiliated Independent broker/dealers $ 61.5 $ 71.8 $ 82.0 $ 81.0 $ 80.8 Wirehouse and regional firms 18.3 21.7 20.8 19.2 19.8 Financial institutions 15.7 18.0 20.6 18.0 15.8 Life specialists 91.1 12.9 137.3 105.6 95.3 Affiliated Nationwide Financial Network 197.4 180.2 202.0 179.0 184.0 Mullin TBG 62.5 41.5 4.2 99.9 53.5 Total individual protection sales $ 446.5 $ 346.1 $ 466.9 $ 502.7 $ 449.2 14

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