Call it truth in advertising -- Nationwide Mutual Insurance Company has offices throughout the US. The company is a leading US property/casualty insurer that also provides life insurance and retirement products through its Nationwide Financial Services subsidiary. Its property/casualty products range from general personal and commercial coverage -- including auto, home, and business owners policies -- to such specialty lines as professional liability, workers' compensation, agricultural, loss-control, pet insurance, and other coverage. Until 2016, the company sold its products and provides services through Allied Group, Harleysville, Nationwide Agribusiness, GatesMcDonald, Scottsdale Insurance, and other subsidiaries.
Today the company operates solely under the Nationwide brand.
Nationwide earns more than 70% of its annual revenue from property/casualty insurance premiums, followed by life insurance policy charges (about 10%) and life insurance premiums (about 5%). (Investment income rounds out the group's revenues.) As the US insurance industry has been mature for a long time, Nationwide has sought growth by moving into assorted niches, including specialty auto coverage, specialty health coverage, pet insurance, and financial services. The company's workplace benefits Nationwide Better Health program has grown through acquisitions to provide health, productivity, and disease management services to employers.
Operating as Nationwide Bank, Nationwide Financial Services provides deposit products and ATM access for the company's property/casualty and financial services customers. The company's Nationwide Advantage Mortgage business provides both mortgages and home equity loans. Consumers can access its services online, over the phone, and through Nationwide agents.
Nationwide offers its products in all 50 US states. It has office locations in 30 states.
Sales and Marketing
Nationwide distributes its property/casualty products through a network of some 3,200 exclusive agents across the US. It also relies on more than 5,200 independent agents, as well as general agents and brokers for its specialty products. Nationwide Financial Services distributes its group retirement programs through its own sales team, while it sells its individual investment products through affiliated and unaffiliated investment advisors.
The company also markets its products through television ads.
In 2016, Nationwide's revenue increased 3% to $26.6 billion as property/casualty insurance premiums and life insurance policy charges grew; these gains were assisted by higher net investment income.
Net income fell 33% to $820 million that year, due primarily to higher incurred property/casualty loss and loss expenses.
Nationwide's growth efforts have focused on its investment management operations, as demand for new and existing products are on the rise.
The company continues to build its presence in its core markets, including individual life policies, mutual funds, and retirement plans.
It has also been investing in upgrading its operating infrastructure, including its IT platforms.
With prolonged low interest rates negatively impacting the insurance sector, Nationwide works to identify which of its products will sustain profitable growth and supporting those operations that will provide the most bang for their buck. The group's corporate strategy, risk management, and finance units work together to best determine Nationwide's overall direction.
To leverage the strength of its brand, the group realigned its various operations under the Nationwide name in 2016.
As part of that rebranding, the company restructured into three primary business units: Nationwide P&C Agency Operations, Nationwide Direct and Member Solutions, and Nationwide Financial.
Mergers and Acquisitions
In March 2017, Nationwide acquired life insurance and annuities provider Jefferson National for an undisclosed amount. Jefferson, which specializes in serving registered investment advisors and fee-based advisors, was subsequently rebranded as Nationwide.