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
September 30, 2008
This Page Intentional...
Nationwide Financial Services, Inc.
St...
Nationwide Financial Services, Inc.
Stat...
Nationwide Financial Services, Inc.
Stat...
Nationwide Financial Services, Inc.
Statistical Supplement
September 30, 2008
This Page Intentional...
Nationwide Financial Services, Inc.
Statistic...
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 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
nationwide 3Q08 Statistical Supplement
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nationwide 3Q08 Statistical Supplement

Published on: Mar 3, 2016
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Transcripts - nationwide 3Q08 Statistical Supplement

  • 1. Nationwide Financial Services, Inc. Statistical Supplement September 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 September 30, 2008 5 For the three months ended September 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 September 30, 2008 Quarterly Financial Highlights ($ in millions except for per share data) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Operating Revenues Individual investments $ 359.0 $ 370.7 $ 338.8 $ 330.3 $ 314.5 Retirement plans 284.9 296.9 279.1 281.0 275.0 Individual protection 332.8 345.8 344.6 354.7 346.3 Corporate and other 172.1 173.4 135.9 144.3 82.7 Total operating revenues $ 1,148.8 $ 1,186.8 $ 1,098.4 $ 1,110.3 $ 1,018.5 Net realized investment gains/(losses) (1) (17.0) (118.1) (182.1) (29.8) (533.9) Total revenues $ 1,131.8 $ 1,068.7 $ 916.3 $ 1,080.5 $ 484.6 Pre-tax Operating Earnings (Loss) Individual investments $ 65.0 $ 69.1 $ 62.5 $ 47.7 $ (120.7) Retirement plans 59.6 75.9 53.9 55.6 55.3 Individual protection 65.2 69.3 64.9 78.4 72.2 Corporate and other 13.9 2.3 (13.9) 4.9 (50.4) Pre-tax operating earnings (loss) $ 203.7 $ 216.6 $ 167.4 $ 186.6 $ (43.6) Federal income tax expense 49.1 54.9 35.9 59.0 (21.8) Net operating earnings (loss) $ 154.6 $ 161.7 $ 131.5 $ 127.6 $ (21.8) Net realized investment gains/(losses), net of taxes (2) (8.4) (66.2) (87.9) (41.5) (315.4) Discontinued operations, net of taxes 0.8 (21.3) 0.9 (0.7) (9.2) Net income (loss) $ 147.0 $ 74.2 $ 44.5 $ 85.4 $ (346.4) Per Common Diluted Share Net operating earnings (loss) $ 1.08 $ 1.16 $ 0.95 $ 0.92 $ (0.16) Net realized investment gains/(losses), net of taxes (2) (0.06) (0.48) (0.64) (0.29) (2.29) Discontinued operations, net of taxes 0.01 (0.15) 0.01 (0.01) (0.06) Net income (loss) $ 1.03 $ 0.53 $ 0.32 $ 0.62 $ (2.51) Sales by Channel Non-affiliated Independent broker/dealers $ 1,555.0 $ 1,580.5 $ 1,561.9 $ 1,425.4 $ 1,291.1 Wirehouse and regional firms 703.6 815.0 706.4 608.9 522.2 Financial institutions 604.1 663.8 610.7 553.3 462.5 Pension plan administrators 95.6 137.4 119.6 101.1 109.1 Life specialists 12.9 137.3 105.6 95.3 47.2 Affiliated Nationwide Retirement Solutions 1,073.8 1,064.3 1,161.1 1,114.2 1,135.6 Nationwide Financial Network 357.7 386.8 320.9 316.6 302.0 Mullin TBG 41.5 4.2 99.9 53.5 22.4 Total $ 4,444.2 $ 4,789.3 $ 4,686.1 $ 4,268.3 $ 3,892.1 (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. 1
  • 3. Nationwide Financial Services, Inc. Statistical Supplement September 30, 2008 Quarterly Financial Highlights ($ in millions except for per share data) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Balance Sheet Data Total assets $ 121,460.5 $ 119,207.1 $ 112,612.6 $ 110,771.2 $ 102,086.9 Customer funds managed and administered $ 165,275.2 $ 162,365.4 $ 153,304.6 $ 152,818.5 $ 140,882.5 Shareholders' equity Including accumulated other comprehensive income (AOCI) (1) $ 5,340.4 $ 5,324.6 $ 5,003.9 $ 4,912.6 $ 4,211.6 AOCI (61.1) (81.5) (378.4) (525.2) (844.4) Excluding AOCI $ 5,401.5 $ 5,406.1 $ 5,382.3 $ 5,437.8 $ 5,056.0 Net operating return on average equity excluding AOCI 11.3% 12.0% 9.8% 9.4% (1.7%) Statutory capital and surplus $ 3,249.3 $ 3,175.1 $ 2,990.9 $ 3,015.0 $ 2,825.8 Stock Data Closing Price $ 53.82 $ 45.01 $ 47.28 $ 48.01 $ 49.33 Weighted average common shares outstanding Basic 141.8 139.0 137.9 137.8 137.9 Diluted 142.7 139.7 138.3 138.6 137.9 Book value per share Including AOCI $ 38.48 $ 38.44 $ 36.31 $ 35.62 $ 30.52 Excluding AOCI $ 38.92 $ 39.03 $ 39.06 $ 39.43 $ 36.64 (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 September 30, 2008 This Page Intentionally Left Blank. 3
  • 5. Nationwide Financial Services, Inc. Statistical Supplement September 30, 2008 Quarterly Consolidated Income Statements ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Operating Revenues Asset fees $ 193.5 $ 202.5 $ 183.9 $ 187.6 $ 174.3 Cost of insurance charges 105.1 107.6 109.5 111.2 113.4 Administrative fees 29.7 32.7 32.9 39.4 33.1 Surrender fees 17.2 16.6 18.8 16.2 16.0 Total policy charges 345.5 359.4 345.1 354.4 336.8 Premiums 101.7 115.7 109.1 105.2 89.8 Net investment income 547.3 561.8 519.5 511.5 480.8 Operating realized gains (losses) (3.4) (12.7) (16.8) (4.1) (21.2) Other income 157.7 162.6 141.5 143.3 132.3 Total operating revenues 1,148.8 1,186.8 1,098.4 1,110.3 1,018.5 Benefits Interest credited to policyholder accounts 333.3 329.6 312.6 294.1 300.8 Life insurance and annuity benefits 161.4 181.8 183.5 178.7 188.1 Policyholder dividends 23.1 18.7 23.9 24.4 23.7 Total benefits 517.8 530.1 520.0 497.2 512.6 Expenses Commissions 182.2 202.4 181.2 179.9 154.0 General operating expenses 242.2 236.2 233.5 239.5 219.5 Deferral of policy acquisition costs (155.0) (173.2) (154.5) (158.1) (128.6) Subtotal 269.4 265.4 260.2 261.3 244.9 Amortization of policy acquisition costs 116.3 134.8 113.9 135.2 268.9 Amortization of VOBA and other intangible assets 12.7 10.2 9.2 4.1 9.6 Interest expense 28.9 29.7 27.7 25.9 26.1 Total expenses 427.3 440.1 411.0 426.5 549.5 Pre-tax operating earnings (loss) $ 203.7 $ 216.6 $ 167.4 $ 186.6 $ (43.6) Federal income tax expense 49.1 54.9 35.9 59.0 (21.8) Net operating earnings (loss) $ 154.6 $ 161.7 $ 131.5 $ 127.6 $ (21.8) (1) Net realized investment gains/(losses), net of taxes Realized gains/(losses) on sales, net of hedging 3.1 1.2 (5.0) (1.4) (17.2) Other-than-temporary impairments, including mortgage loan valuation allowance adjustment (10.7) (52.7) (57.5) (62.1) (257.8) Credit default swaps (0.8) (1.9) (1.7) (1.1) (4.0) Derivatives, excluding hedging gains and losses on sales and credit default swaps 0.3 (12.6) (23.8) 20.5 (42.0) Amounts credited to policyholder dividend obligation (0.5) (0.4) (0.1) 2.4 5.6 Adjustment to VOBA amortization 0.2 0.2 0.2 0.2 - Subtotal (8.4) (66.2) (87.9) (41.5) (315.4) Discontinued operations, net of taxes 0.8 (21.3) 0.9 (0.7) (9.2) Net income (loss) $ 147.0 $ 74.2 $ 44.5 $ 85.4 $ (346.4) (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 September 30, 2008 Combining Income Statement For the three months ended September 30, 2008 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees $ 135.7 $ 26.3 $ 12.3 $ - $ 174.3 Cost of insurance charges - - 113.4 - 113.4 Administrative fees 8.9 2.6 21.6 - 33.1 Surrender fees 11.0 0.4 4.6 - 16.0 Total policy charges 155.6 29.3 151.9 - 336.8 Premiums 20.2 - 69.6 - 89.8 Net investment income 131.5 163.9 123.9 61.5 480.8 Operating realized gains (losses) - - - (21.2) (21.2) Other income 7.2 81.8 0.9 42.4 132.3 Total operating revenues 314.5 275.0 346.3 82.7 1,018.5 Benefits Interest credited to policyholder accounts 93.3 110.6 50.1 46.8 300.8 Life insurance and annuity benefits 70.4 1.1 116.6 - 188.1 Policyholder dividends - - 23.7 - 23.7 Total benefits 163.7 111.7 190.4 46.8 512.6 Expenses Commissions 75.4 39.5 34.9 4.2 154.0 General operating expenses 39.9 67.4 56.6 55.6 219.5 Deferral of policy acquisition costs (70.6) (8.5) (49.5) - (128.6) Subtotal 44.7 98.4 42.0 59.8 244.9 Amortization of policy acquisition costs 226.3 9.1 33.5 - 268.9 Amortization of VOBA and other intangible assets 0.5 0.5 8.2 0.4 9.6 Interest expense - - - 26.1 26.1 Total expenses 271.5 108.0 83.7 86.3 549.5 Pre-tax operating earnings (loss) $ (120.7) $ 55.3 $ 72.2 $ (50.4) $ (43.6) Federal income tax expense (21.8) Net operating earnings (loss) $ (21.8) (1) Net realized investment gains/(losses), net of taxes (315.4) Discontinued operations, net of taxes (9.2) Net income (loss) $ (346.4) (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 September 30, 2008 Combining Income Statement For the three months ended September 30, 2007 Individual Retirement Individual Corporate ($ in millions) Investments Plans Protection and Other Total Operating Revenues Asset fees $ 148.0 $ 32.1 $ 13.4 $ - $ 193.5 Cost of insurance charges - - 105.1 - 105.1 Administrative fees 7.0 3.2 19.5 - 29.7 Surrender fees 11.5 0.6 5.1 - 17.2 Total policy charges 166.5 35.9 143.1 - 345.5 Premiums 29.7 - 72.0 - 101.7 Net investment income 153.4 162.1 116.7 115.1 547.3 Operating realized gains (losses) - - - (3.4) (3.4) Other income 9.4 86.9 1.0 60.4 157.7 Total operating revenues 359.0 284.9 332.8 172.1 1,148.8 Benefits Interest credited to policyholder accounts 109.7 111.9 48.1 63.6 333.3 Life insurance and annuity benefits 51.9 - 109.5 - 161.4 Policyholder dividends - - 23.1 - 23.1 Total benefits 161.6 111.9 180.7 63.6 517.8 Expenses Commissions 101.1 42.2 32.1 6.8 182.2 General operating expenses 50.2 70.0 63.5 58.5 242.2 Deferral of policy acquisition costs (100.1) (9.0) (45.9) - (155.0) Subtotal 51.2 103.2 49.7 65.3 269.4 Amortization of policy acquisition costs 79.8 9.4 27.1 - 116.3 Amortization of VOBA and other intangible assets 1.4 0.8 10.1 0.4 12.7 Interest expense - - - 28.9 28.9 Total expenses 132.4 113.4 86.9 94.6 427.3 Pre-tax operating earnings (loss) $ 65.0 $ 59.6 $ 65.2 $ 13.9 $ 203.7 Federal income tax expense 49.1 Net operating earnings (loss) $ 154.6 (1) Net realized investment gains/(losses), net of taxes (8.4) Discontinued operations, net of taxes 0.8 Net income (loss) $ 147.0 (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 September 30, 2008 This Page Intentionally Left Blank. 7
  • 9. Nationwide Financial Services, Inc. Statistical Supplement September 30, 2008 Quarterly Consolidated Balance Sheets ($ in millions, except per share data) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Assets Investments Securities available-for-sale, at fair value: Fixed maturity securities $ 27,295.4 $ 27,189.2 $ 26,796.7 $ 26,209.8 $ 24,849.6 Equity securities 69.7 124.2 117.6 114.7 69.3 Trading assets 24.7 37.7 66.5 55.4 63.7 Mortgage loans on real estate, net 8,534.5 8,316.1 8,156.4 7,940.6 7,913.9 Real estate 29.5 21.8 21.6 18.0 16.4 Policy loans 1,007.2 1,018.3 1,036.7 1,042.0 1,050.4 Other long-term investments 1,195.7 1,187.2 1,164.3 1,156.0 1,228.8 Short-term investments 1,395.2 1,173.6 1,327.5 1,008.5 1,188.6 Total investments 39,551.9 39,068.1 38,687.3 37,545.0 36,380.7 Cash 73.2 73.6 73.0 180.9 145.0 Accrued investment income 412.5 368.4 420.1 337.7 388.7 Deferred policy acquisition costs 4,054.1 4,095.6 4,267.0 4,367.6 4,428.3 Value of business acquired 363.9 354.8 345.9 345.7 338.2 Other intangible assets 45.1 44.3 43.5 42.7 41.9 Goodwill 350.6 301.2 301.2 301.2 292.4 Other assets 2,822.5 2,046.1 2,187.0 1,893.8 2,163.2 Separate account assets 73,786.7 72,855.0 66,287.6 65,756.6 57,908.5 Total assets $ 121,460.5 $ 119,207.1 $ 112,612.6 $ 110,771.2 $ 102,086.9 Liabilities and shareholders' equity Future policy benefits and claims $ 36,313.2 $ 35,441.5 $ 35,523.0 $ 34,568.6 $ 34,252.3 Short-term debt 454.1 309.3 327.6 412.5 336.6 Long-term debt 1,515.1 1,565.1 1,620.0 1,660.1 1,720.3 Other liabilities 4,051.0 3,711.6 3,850.5 3,460.8 3,657.6 Separate account liabilities 73,786.7 72,855.0 66,287.6 65,756.6 57,908.5 116,120.1 113,882.5 107,608.7 105,858.6 97,875.3 Shareholders' equity 5,340.4 5,324.6 5,003.9 4,912.6 4,211.6 Total liabilities and shareholders' equity $ 121,460.5 $ 119,207.1 $ 112,612.6 $ 110,771.2 $ 102,086.9 Capital Structure ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Total capital, including AOCI $ 6,855.5 $ 6,889.7 $ 6,623.9 $ 6,572.7 $ 5,931.9 Less AOCI (61.1) (81.5) (378.4) (525.2) (844.4) Total capital, excluding AOCI $ 6,916.6 $ 6,971.2 $ 7,002.3 $ 7,097.9 $ 6,776.3 Leverage, including AOCI Long-term debt--to--total capital 22.1% 22.7% 24.5% 25.3% 29.0% Leverage, excluding AOCI Long-term debt--to--total capital 21.9% 22.5% 23.1% 23.4% 25.4% Ratio of pre-tax operating earnings (loss) before interest expense to interest expense 8.0X 8.3X 7.0X 8.2X -0.7X 8
  • 10. Nationwide Financial Services, Inc. Statistical Supplement September 30, 2008 Individual Investments Quarterly Earnings Trends ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Operating Revenues Asset fees $ 148.0 $ 155.0 $ 141.9 $ 145.2 $ 135.7 Administrative fees 7.0 7.6 7.3 8.3 8.9 Surrender fees 11.5 11.2 11.5 9.7 11.0 Total policy charges 166.5 173.8 160.7 163.2 155.6 Net Investment Income General account assets 160.8 155.5 142.6 134.3 132.8 Charge for invested capital (7.4) (7.0) (5.6) (4.4) (1.3) Total net investment income 153.4 148.5 137.0 129.9 131.5 Premiums 29.7 39.9 34.1 30.0 20.2 Other income 9.4 8.5 7.0 7.2 7.2 Total operating revenues 359.0 370.7 338.8 330.3 314.5 Benefits Interest credited to policyholder accounts 109.7 102.0 96.0 92.4 93.3 Immediate annuity benefits 27.1 36.7 31.4 31.5 19.5 Policy benefits 24.8 23.6 23.1 25.8 50.9 Total benefits 161.6 162.3 150.5 149.7 163.7 Expenses Commissions 101.1 108.2 91.9 85.2 75.4 General operating expenses 50.2 41.3 44.6 44.4 39.9 Deferral of policy acquisition costs (100.1) (106.6) (89.2) (82.1) (70.6) Subtotal 51.2 42.9 47.3 47.5 44.7 Amortization of policy acquisition costs 79.8 95.1 77.7 82.0 226.3 Amortization of VOBA and other intangible assets 1.4 1.3 0.8 3.4 0.5 Total expenses 132.4 139.3 125.8 132.9 271.5 Pre-tax operating earnings (loss) $ 65.0 $ 69.1 $ 62.5 $ 47.7 $ (120.7) Key Ratios/Statistics Average Account Values: General account $ 11,588.1 $ 10,909.1 $ 10,486.4 $ 10,181.8 $ 10,028.4 Separate account 42,502.5 42,692.8 40,617.9 38,688.8 36,171.4 Advisory services program 656.6 658.4 625.8 563.6 441.3 Total average individual investments account values $ 54,747.2 $ 54,260.3 $ 51,730.1 $ 49,434.2 $ 46,641.1 Earned rate 5.55% 5.70% 5.44% 5.28% 5.30% Credited rate 3.79% 3.74% 3.66% 3.63% 3.72% Interest spread on average general account values 1.76% 1.96% 1.78% 1.65% 1.58% Income from mortgage loan prepayments and bond call premiums 0.09% 0.18% 0.04% 0.00% 0.09% Base interest spread on average general account values 1.67% 1.78% 1.74% 1.65% 1.49% Asset fees to average separate account values 1.39% 1.45% 1.40% 1.50% 1.50% General operating expenses to average account values 0.37% 0.30% 0.34% 0.36% 0.34% Pre-tax operating earnings (loss) to average account values 0.48% 0.51% 0.48% 0.39% -1.04% Pre-tax operating earnings (loss) to operating revenues 18.1% 18.6% 18.4% 14.4% -38.4% Average allocated capital $ 1,454.6 $ 1,439.5 $ 1,414.4 $ 1,392.0 $ 1,347.6 Return on average allocated capital 15.4% 14.4% 15.0% 9.8% -21.7% Individual Investments Account Value Activity ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Individual Variable Annuities Balance, beginning of period $ 46,131.5 $ 47,067.0 $ 46,121.5 $ 42,698.3 $ 42,075.0 Deposits 1,496.9 1,673.9 1,309.5 1,217.8 978.5 Withdrawals and surrenders (1,707.2) (1,776.6) (1,669.9) (1,678.9) (1,546.4) Net flows (210.3) (102.7) (360.4) (461.1) (567.9) Investment performance/interest credited to policyholder accounts 1,237.6 (536.8) (3,123.1) 85.7 (4,034.8) Policy charges (165.6) (171.0) (159.5) (161.7) (154.4) Benefits and other 73.8 (135.0) 219.8 (86.2) 342.2 Balance, end of period $ 47,067.0 $ 46,121.5 $ 42,698.3 $ 42,075.0 $ 37,660.1 Individual Fixed Annuities Balance, beginning of period $ 5,721.2 $ 5,113.3 $ 4,717.3 $ 4,468.0 $ 4,273.1 Deposits 49.8 52.5 43.7 45.0 81.5 Withdrawals and surrenders (706.3) (491.5) (331.8) (275.3) (236.4) Net flows (656.5) (439.0) (288.1) (230.3) (154.9) Policyholder interest credited 50.5 44.4 39.8 37.9 36.8 Policy charges (1.9) (1.4) (0.9) (0.9) (0.9) Benefits and other - - (0.1) (1.6) 0.9 Balance, end of period $ 5,113.3 $ 4,717.3 $ 4,468.0 $ 4,273.1 $ 4,155.0 Income Products $ 2,083.8 $ 2,101.0 $ 2,102.5 $ 2,124.1 $ 2,112.3 Advisory Services Program $ 669.5 $ 647.2 $ 604.4 $ 522.8 $ 359.8 Total individual investment account values $ 54,933.6 $ 53,587.0 $ 49,873.2 $ 48,995.0 $ 44,287.2 9
  • 11. Nationwide Financial Services, Inc. Statistical Supplement September 30, 2008 Individual Investments Account Values by Product ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Individual Variable Annuities BEST of AMERICA products $ 39,167.0 $ 38,371.2 $ 35,629.1 $ 35,183.3 $ 31,657.3 Private label annuities 7,561.7 7,438.1 6,801.6 6,638.2 5,793.0 Nationwide Financial Network and other 338.3 312.2 267.6 253.5 209.8 Total individual variable annuities $ 47,067.0 $ 46,121.5 $ 42,698.3 $ 42,075.0 $ 37,660.1 Individual Fixed Annuities $ 5,113.3 $ 4,717.3 $ 4,468.0 $ 4,273.1 $ 4,155.0 Income Products $ 2,083.8 $ 2,101.0 $ 2,102.5 $ 2,124.1 $ 2,112.3 Advisory Services Program $ 669.5 $ 647.2 $ 604.4 $ 522.8 $ 359.8 Total individual investment account values $ 54,933.6 $ 53,587.0 $ 49,873.2 $ 48,995.0 $ 44,287.2 Individual Investments Sales by Product ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Individual Variable Annuities BEST of AMERICA products $ 1,274.4 $ 1,431.2 $ 1,090.4 $ 997.1 $ 804.4 Private label annuities 118.5 145.4 118.0 113.5 89.2 Nationwide Financial Network and other 0.6 0.5 0.7 0.5 0.4 Total individual variable annuities $ 1,393.5 $ 1,577.1 $ 1,209.1 $ 1,111.1 $ 894.0 Individual Fixed Annuities $ 37.0 $ 41.9 $ 40.6 $ 43.1 $ 77.2 Income Products $ 54.4 $ 56.6 $ 48.8 $ 57.5 $ 37.7 Advisory Services Program $ 42.6 $ 31.2 $ 23.2 $ 24.9 $ 4.6 Total individual investment sales $ 1,527.5 $ 1,706.8 $ 1,321.7 $ 1,236.6 $ 1,013.5 Individual Investments Sales by Channel ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Individual Variable Annuities Non-affiliated Independent broker/dealers $ 464.3 $ 502.8 $ 385.7 $ 364.0 $ 312.9 Wirehouse and regional firms 392.0 481.9 345.1 313.4 234.8 Financial institutions 442.1 478.1 395.0 360.2 285.6 Affiliated Nationwide Financial Network 95.1 114.3 83.3 73.5 60.7 Total individual variable annuities $ 1,393.5 $ 1,577.1 $ 1,209.1 $ 1,111.1 $ 894.0 Individual Fixed Annuities Non-affiliated Independent broker/dealers $ 7.3 $ 2.9 $ 9.3 $ 6.5 $ 12.3 Wirehouse and regional firms 2.0 3.0 1.3 2.7 7.7 Financial institutions 9.9 16.9 14.7 14.6 26.3 Affiliated Nationwide Financial Network 17.8 19.1 15.3 19.3 30.9 Total individual fixed annuities $ 37.0 $ 41.9 $ 40.6 $ 43.1 $ 77.2 Income Products Non-affiliated Independent broker/dealers $ 25.2 $ 25.8 $ 20.7 $ 28.6 $ 16.6 Wirehouse and regional firms 20.3 15.5 16.8 16.4 12.5 Financial institutions 5.1 10.1 8.0 8.7 4.9 Affiliated Nationwide Financial Network 3.8 5.2 3.3 3.8 3.7 Total income products $ 54.4 $ 56.6 $ 48.8 $ 57.5 $ 37.7 Advisory Services Program Non-affiliated Independent broker/dealers $ 27.0 $ 17.7 $ 16.8 $ 18.3 $ 3.3 Financial institutions 2.4 3.9 2.4 1.3 0.5 Affiliated Nationwide Financial Network 13.2 9.6 4.0 5.3 0.8 Total advisory services program $ 42.6 $ 31.2 $ 23.2 $ 24.9 $ 4.6 Total individual investment sales $ 1,527.5 $ 1,706.8 $ 1,321.7 $ 1,236.6 $ 1,013.5 10
  • 12. Nationwide Financial Services, Inc. Statistical Supplement September 30, 2008 Retirement Plans Quarterly Earnings Trends ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Operating Revenues Asset fees $ 32.1 $ 33.6 $ 29.2 $ 29.5 $ 26.3 Administrative fees 3.2 3.4 3.3 3.4 2.6 Surrender fees 0.6 0.3 0.5 0.5 0.4 Total policy charges 35.9 37.3 33.0 33.4 29.3 Net investment income 162.1 165.7 161.7 160.3 163.9 Other income 86.9 93.9 84.4 87.3 81.8 Total operating revenues 284.9 296.9 279.1 281.0 275.0 Benefits Interest credited to policyholder accounts 111.9 109.3 107.6 106.5 110.6 Other Policy Benefits - - - - 1.1 Total benefits 111.9 109.3 107.6 106.5 111.7 Expenses Commissions 42.2 44.9 42.9 42.2 39.5 General operating expenses 70.0 65.9 73.2 73.2 67.4 Deferral of policy acquisition costs (9.0) (8.8) (9.2) (8.9) (8.5) Subtotal 103.2 102.0 106.9 106.5 98.4 Amortization of policy acquisition costs 9.4 9.1 10.1 12.0 9.1 Amortization of VOBA and other intangible assets 0.8 0.6 0.6 0.4 0.5 Total expenses 113.4 111.7 117.6 118.9 108.0 Pre-tax operating earnings $ 59.6 $ 75.9 $ 53.9 $ 55.6 $ 55.3 Key Ratios/Statistics Average Account Values: General account $ 11,176.4 $ 11,040.5 $ 11,042.8 $ 11,122.8 $ 11,214.5 Separate account 17,569.7 16,738.5 15,791.2 14,881.8 13,880.9 Non insurance assets 21,648.1 21,870.7 21,315.7 20,985.4 20,123.7 Administration only 30,715.0 31,139.3 30,396.6 29,746.7 28,856.2 Total average retirement plan account values $ 81,109.2 $ 80,789.0 $ 78,546.3 $ 76,736.7 $ 74,075.3 Earned rate 5.80% 6.00% 5.86% 5.77% 5.84% Credited rate 4.00% 3.96% 3.90% 3.83% 3.95% Interest spread on average general account values 1.80% 2.04% 1.96% 1.94% 1.89% Income from mortgage loan prepayments and bond call premiums 0.06% 0.18% 0.14% 0.05% 0.06% Base interest spread on average general account values 1.74% 1.86% 1.82% 1.89% 1.83% Asset fees to average separate account values 0.73% 0.80% 0.74% 0.79% 0.76% General operating expenses to average account values 0.35% 0.33% 0.37% 0.38% 0.36% Pre-tax operating earnings to average account values 0.29% 0.38% 0.27% 0.29% 0.30% Pre-tax operating earnings to operating revenue 20.9% 25.6% 19.3% 19.8% 20.1% Average allocated capital $ 747.1 $ 774.0 $ 774.8 $ 770.3 $ 762.0 Return on average allocated capital 23.5% 26.8% 20.4% 19.2% 19.9% Retirement Plans Account Value Activity ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Private Sector Pension Plans Balance, beginning of period $ 33,929.2 $ 32,726.5 $ 32,286.5 $ 30,571.0 $ 30,668.7 New deposits/sales 1,536.8 1,580.9 1,760.2 1,496.5 1,451.6 Participant withdrawals and surrenders (1,402.9) (1,624.3) (1,460.4) (1,406.6) (1,300.7) Net flows 133.9 (43.4) 299.8 89.9 150.9 Investment performance/interest credited to policyholder accounts 721.2 (328.5) (1,954.9) 70.1 (2,957.7) Policy charges and other (66.5) (68.1) (60.4) (62.3) (56.8) Case acquisitions/(terminations), net (1,991.3) - - - - Balance, end of period $ 32,726.5 $ 32,286.5 $ 30,571.0 $ 30,668.7 $ 27,805.1 Public Sector Pension Plans Balance, beginning of period $ 47,257.8 $ 48,304.8 $ 48,260.1 $ 45,975.0 $ 46,258.7 New deposits/sales 1,066.0 1,055.8 1,153.1 1,107.5 1,127.4 Participant withdrawals and surrenders (812.7) (780.6) (883.0) (826.4) (794.0) Net flows 253.3 275.2 270.1 281.1 333.4 Investment performance/interest credited 1,065.0 (141.2) (2,482.6) 131.8 (3,113.6) Policy charges and other (21.0) (21.4) (18.3) (18.6) (18.6) Case acquisitions/(terminations), net (250.3) (157.3) (54.3) (110.6) (41.8) Balance, end of period $ 48,304.8 $ 48,260.1 $ 45,975.0 $ 46,258.7 $ 43,418.1 Total retirement plan account values $ 81,031.3 $ 80,546.6 $ 76,546.0 $ 76,927.4 $ 71,223.2 11
  • 13. Nationwide Financial Services, Inc. Statistical Supplement September 30, 2008 Retirement Plans Account Values by Product ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Private Sector Pension Plans BEST of AMERICA annuity products $ 7,470.0 $ 7,178.6 $ 6,452.7 $ 6,235.8 $ 5,470.4 BEST of AMERICA trust products 21,926.9 21,814.6 20,816.8 21,154.0 19,093.3 Subtotal BEST of AMERICA 29,396.9 28,993.2 27,269.5 27,389.8 24,563.7 Nationwide Financial Network products 1,033.2 1,014.5 960.1 955.9 874.6 Nationwide employee and agent benefit plans 1,782.5 1,795.4 1,862.7 1,859.1 1,911.8 Other 513.9 483.4 478.7 463.9 455.0 Total private sector pension plans $ 32,726.5 $ 32,286.5 $ 30,571.0 $ 30,668.7 $ 27,805.1 Public Sector Pension Plans IRC Section 457 annuities $ 17,190.1 $ 17,096.3 $ 16,345.6 $ 16,394.5 $ 15,569.6 Administration only agreements 31,114.7 31,163.8 29,629.4 29,864.2 27,848.5 Total public sector pension plans $ 48,304.8 $ 48,260.1 $ 45,975.0 $ 46,258.7 $ 43,418.1 Total retirement plan account values $ 81,031.3 $ 80,546.6 $ 76,546.0 $ 76,927.4 $ 71,223.2 Retirement Plans Sales by Product ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Private Sector Pension Plans BEST of AMERICA annuity products $ 249.3 $ 242.1 $ 257.3 $ 218.7 $ 201.3 BEST of AMERICA trust products 1,201.7 1,247.1 1,383.7 1,205.0 1,141.3 Subtotal BEST of AMERICA 1,451.0 1,489.2 1,641.0 1,423.7 1,342.6 Nationwide Financial Network products 38.6 43.7 46.9 32.6 40.7 Other 14.9 27.0 20.8 19.5 21.1 Total private sector pension plans $ 1,504.5 $ 1,559.9 $ 1,708.7 $ 1,475.8 $ 1,404.4 Public Sector Pension Plans IRC Section 457 annuities $ 387.1 $ 386.2 $ 435.8 $ 443.4 $ 434.2 Administration only agreements 679.0 669.5 717.2 663.3 693.3 Total public sector pension plans 1,066.1 1,055.7 1,153.0 1,106.7 1,127.5 Total retirement plan sales $ 2,570.6 $ 2,615.6 $ 2,861.7 $ 2,582.5 $ 2,531.9 Retirement Plans Sales by Channel ($ in millions) Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Private Sector Pension Plans Non-affiliated Independent broker/dealers $ 959.4 $ 949.3 $ 1,048.4 $ 927.2 $ 872.1 Wirehouse and regional firms 267.6 293.8 324.0 256.6 251.2 Financial institutions 126.6 134.2 172.6 152.7 130.8 Pension plan administrators 95.6 137.4 119.6 101.1 109.1 Affiliated Nationwide Retirement Solutions 7.7 8.6 8.1 7.5 8.1 Nationwide Financial Network 47.6 36.6 36.0 30.7 33.1 Total private sector pension plans $ 1,504.5 $ 1,559.9 $ 1,708.7 $ 1,475.8 $ 1,404.4 Public Sector Pension Plans Nationwide Retirement Solutions $ 1,066.1 $ 1,055.7 $ 1,153.0 $ 1,106.7 $ 1,127.5 Total retirement plan sales $ 2,570.6 $ 2,615.6 $ 2,861.7 $ 2,582.5 $ 2,531.9 12
  • 14. Nationwide Financial Services, Inc. Statistical Supplement September 30, 2008 Individual Protection Quarterly Earnings Trends Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 ($ in millions) Operating Revenues Asset fees $ 13.4 $ 13.9 $ 12.8 $ 12.9 $ 12.3 Cost of insurance charges 105.1 107.6 109.5 111.2 113.4 Administrative fees 19.5 21.7 22.3 27.7 21.6 Surrender fees 5.1 5.1 6.8 6.0 4.6 Total policy charges 143.1 148.3 151.4 157.8 151.9 Net Investment Income General account assets 120.8 124.4 121.2 123.7 127.3 Charge for invested capital (4.1) (4.2) (3.7) (2.9) (3.4) Total net investment income 116.7 120.2 117.5 120.8 123.9 Premiums 72.0 75.8 75.0 75.2 69.6 Other income 1.0 1.5 0.7 0.9 0.9 Total operating revenues 332.8 345.8 344.6 354.7 346.3 Benefits Interest credited to policyholder accounts 48.1 49.0 47.6 48.3 50.1 Life benefits 109.5 121.5 129.0 121.4 116.6 Policyholder dividends 23.1 18.7 23.9 24.4 23.7 Total benefits 180.7 189.2 200.5 194.1 190.4 Expenses Commissions 32.1 43.4 42.3 49.3 34.9 General operating expenses 63.5 63.4 59.6 58.9 56.6 Deferral of policy acquisition costs (45.9) (57.8) (56.1) (67.1) (49.5) Subtotal 49.7 49.0 45.8 41.1 42.0 Amortization of policy acquisition costs 27.1 30.6 26.1 41.2 33.5 Amortization of VOBA and other intangible assets 10.1 7.7 7.3 (0.1) 8.2 Total expenses 86.9 87.3 79.2 82.2 83.7 Pre-tax operating earnings $ 65.2 $ 69.3 $ 64.9 $ 78.4 $ 72.2 Key Ratios/Statistics General operating expenses to operating revenues 19.1% 18.3% 17.3% 16.6% 16.3% Pre-tax operating earnings to operating revenues 19.6% 20.0% 18.8% 22.1% 20.8% Average allocated capital $ 1,973.5 $ 1,998.0 $ 2,024.4 $ 2,042.4 $ 2,053.6 Return on average allocated capital 9.4% 9.5% 9.1% 10.2% 9.5% Note: The results of operations of TBG Financial are reflected as discontinued operations. Individual Protection Policy Reserves Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 ($ in millions) Individual investment life $ 6,400.5 $ 6,298.2 $ 5,776.6 $ 5,748.4 $ 5,083.7 Corporate investment life - excluding experience rated BOLI 7,162.0 7,192.9 7,002.4 7,065.0 6,620.3 Corporate investment life - experience rated BOLI 2,023.3 2,085.9 1,501.3 1,474.6 1,305.2 Subtotal investment life 15,585.8 15,577.0 14,280.3 14,288.0 13,009.2 Traditional life 4,152.0 4,156.4 4,156.1 4,166.0 4,156.9 Universal life 1,218.6 1,257.1 1,294.0 1,327.7 1,354.8 Subtotal fixed life 5,370.6 5,413.5 5,450.1 5,493.7 5,511.7 Total individual protection policy reserves $ 20,956.4 $ 20,990.5 $ 19,730.4 $ 19,781.7 $ 18,520.9 Individual Protection Insurance In Force Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 ($ in millions) Individual investment life $ 57,514.1 $ 57,772.0 $ 57,196.0 $ 57,030.2 $ 56,290.1 Corporate investment life - excluding experience rated BOLI 11,963.0 11,980.3 12,014.9 12,150.9 11,796.8 Corporate investment life - experience rated BOLI 13,289.7 13,311.2 13,284.0 13,270.7 13,261.2 Subtotal investment life 82,766.8 83,063.5 82,494.9 82,451.8 81,348.1 Traditional life 41,882.4 43,970.7 44,899.4 47,294.6 49,687.3 Universal life 10,100.8 10,484.5 10,764.5 10,983.6 11,445.7 Subtotal fixed life 51,983.2 54,455.2 55,663.9 58,278.2 61,133.0 Total individual protection insurance in force $ 134,750.0 $ 137,518.7 $ 138,158.8 $ 140,730.0 $ 142,481.1 13
  • 15. Nationwide Financial Services, Inc. Statistical Supplement September 30, 2008 Individual Protection Sales by Product Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 ($ in millions) BEST of AMERICA Variable Life Series First year sales $ 39.6 $ 39.4 $ 30.1 $ 32.9 $ 24.8 Renewal sales 73.2 80.2 71.2 72.9 73.4 Total BEST of AMERICA variable life series 112.8 119.6 101.3 105.8 98.2 Nationwide Financial Network Variable Life Products First year sales 1.5 1.6 1.9 1.8 0.8 Renewal sales 42.0 43.8 41.6 38.9 38.4 Total Nationwide Financial Network variable life products 43.5 45.4 43.5 40.7 39.2 Corporate Owned Life Insurance (COLI) First year sales 20.6 61.3 69.9 49.3 36.7 Renewal sales 33.8 80.2 135.6 99.5 32.9 Total COLI 54.4 141.5 205.5 148.8 69.6 Traditional/Universal life First year sales 32.0 44.7 48.2 41.4 31.6 Renewal sales 103.4 115.7 104.2 112.5 108.1 Total traditional/universal life 135.4 160.4 152.4 153.9 139.7 Total individual protection sales $ 346.1 $ 466.9 $ 502.7 $ 449.2 $ 346.7 Individual Protection Sales by Channel Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 ($ in millions) Non-affiliated Independent broker/dealers $ 71.8 $ 82.0 $ 81.0 $ 80.8 $ 73.9 Wirehouse and regional firms 21.7 20.8 19.2 19.8 16.0 Financial institutions 18.0 20.6 18.0 15.8 14.4 Life specialists 12.9 137.3 105.6 95.3 47.2 Affiliated Nationwide Financial Network 180.2 202.0 179.0 184.0 172.8 Mullin TBG 41.5 4.2 99.9 53.5 22.4 Total individual protection sales $ 346.1 $ 466.9 $ 502.7 $ 449.2 $ 346.7 14

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