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. The company sells its products and provides services through Allied Group, Harleysville, Nationwide Agribusiness, GatesMcDonald, Scottsdale Insurance, and other subsidiaries.
Nationwide earns 71% of its annual revenue from property/casualty insurance premiums, followed by life insurance policy charges (9%) and life insurance premiums (4%). 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 created its workplace benefits Nationwide Better Health program, which it 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 2015, revenue increased 8% to $25.9 billion as property/casualty insurance premiums and life insurance policy charges grew; these gains were assisted by the introduction of new and improved product offerings.
Net income rose 257% to $1.2 billion that year, due to both higher revenue and a decrease in amortization of deferred policy acquisition costs.
To leverage the strength of its brand, the group is working towards aligning its various operations under the Nationwide name.
Nationwide's growth efforts have focused on its investment management operations, as demand for new and existing products are on the rise. In 2014, Nationwide Funds added three new mutual funds. Also that year, Nationwide teamed up with annuity designer and marketer Annexus to launch a new fixed indexed annuity product.
The company continues to build its presence in its core markets, including individual life policies, mutual funds, and retirement plans.