NU Online News Service, Feb. 17, 12:02 p.m.EST
|Nationwide Insurance ended the year by turning a profit in thefourth quarter, although net income for the period was down 87percent compared to 2010.
|For the year, the Columbus, Ohio-based insurer took a $582million loss due to a record amount of weather-related claims paid,especially in the second and third quarters.
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Nationwide paid $2.3 billion for weather-related claims in2011—$1 billion more than in 2010. Nevertheless, the company wasable to maintain relatively flat year-over-year statutory surplusof about $12.8 billion.
Net income for the 2011 fourth quarter was $50 million comparedto $390 million during the same period in 2010 as Nationwideexperienced some momentum with 2 percent growth in property andcasualty direct written premiums over the 2010 fourth quarter.
|Earnings in the company's financial-services business bolsteredearnings for the last year and year.
|P&C premiums generated by the insurer's direct and affinitychannels eclipsed $1 billion for the first time in 2011 as premiumsincreased “strongly” in the excess and surplus, “Main Street”commercial, and agribusiness lines, says Mark Thresher, chiefexecutive officer.
|Nationwide's E&S subsidiary, Scottsdale Insurance, had a“very strong year,” says Thresher, adding that commercial businessis “seeing growth in exposures with new writings,” which could be asign of economic improvement.
|Depending on the line of business, Nationwide is witnessing somerate improvement, with differences in new business versus renewals.Commercial business remains “pretty competitive,” Threshersays.
|Nationwide reports modest declines in personal lines, but thatis an “improvement from where we've been,” says Thresher. Some ofthe decline can be explained by planned actions to manage risk, headds.
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