A.M. Best Outlook Revised to Positive for Nationwide Insurance Company of Florida

Jun 7, 2010

The following article appeared in Insurance Journal on June 7, 2010:

A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of ‘B-‘ (Fair) and issuer credit rating of “bb-” of Nationwide Insurance Company of Florida (NICOF). NICOF is a wholly owned subsidiary of Nationwide Mutual Insurance Company. Both NICOF and Nationwide Mutual are domiciled in Columbus, OH, and are members of the Nationwide Group.

Best explained that the revised outlook for NICOF “reflects the potential for future favorable rating actions based on further improvement in its risk-adjusted capitalization. NICOF’s ratings recognize its improved level of risk-adjusted capitalization when stress tested tempered by the fluctuating operating performance over the past several years, primarily driven by the significant hurricane losses of 2004 and 2005. While the ratings reflect an improved level of capitalization due to ongoing, coastal reduction initiatives, the ratings also consider the risk inherent in NICOF’s remaining, smaller property book of business in Florida.”

Find this article at:  http://www.insurancejournal.com/news/national/2010/06/07/110483.htm