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Nationwide Mutual Insurance CompanyBEST’S RATING REPORT

BEST’S RATING REPORTBEST’S RATING REPORT

AM BEST

A+ Superior

Financial Strength Rating

Nationwide Mutual InsuranceCompany

One West Nationwide Boulevard, Columbus, Ohio, United States 43215-2220

Mailing Address: One West Nationwide Boulevard, 1-04-701, Columbus, Ohio, United States 43215-2220

AMB #: 002358 NAIC #: 23787 FEIN#: 31-4177100

Phone: 614-249-7111 Fax: 866-315-1430 Website: www.nationwide.com

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Nationwide Mutual Insurance Company

Report Release Date: Rating Effective Date:December 11, 2018 November 16, 2018

Disclosure Information: View A.M. Best’s Rating Disclosure Form

Analytical Contacts

A.M. Best Rating Services, Inc.

Robert Raber Gregory T. WilliamsAssociate Director Senior [email protected] [email protected]+1(908) 439-2200 Ext. 5696 +1(908) 439-2200 Ext. 5815

Ultimate Parent: 002358 - Nationwide Mutual Insurance Company

A.M. Best Rating Unit: 005987 - Nationwide Group

Best's Credit Ratings:Rating Effective Date: November 16, 2018

Best's Financial Strength Rating: A+ Outlook: Negative Action: AffirmedBest's Issuer Credit Rating: aa- Outlook: Negative Action: Affirmed

Five Year Credit Rating History:

Best's Financial Strength Ratings Best's Issuer Credit RatingsDate Rating Outlook Action Rating Outlook Action11/16/2018 A+ Negative Affirmed aa- Negative Affirmed10/02/2017 A+ Negative Affirmed aa- Negative Affirmed07/07/2016 A+ Stable Affirmed aa- Stable Affirmed03/19/2015 A+ Stable Affirmed aa- Stable Affirmed04/02/2014 A+ Stable Affirmed aa- Stable Affirmed

Corporate Overview:

Nationwide Mutual Insurance Company (NMIC), Nationwide Mutual Fire Insurance Company (Nationwide Mutual Fire) and FarmlandMutual Insurance Company are affiliated property/casualty insurers.

NMIC fully owns the following groups of companies and their respective property/casualty subsidiaries: ALLIED Group, Inc. (fivesubsidiaries), Scottsdale Insurance Company (five subsidiaries) and THI Holdings Delaware, Inc. (seven subsidiaries). NMIC alsoowns fourteen other individual property/casualty subsidiaries, including Atlantic Floridian Insurance Company, Crestbrook InsuranceCompany, Nationwide Indemnity Company and Nationwide Insurance Company of Florida.

NMIC and Nationwide Mutual Fire respectively own 95.2% and 4.8% of Nationwide Corporation, parent of Nationwide FinancialServices, Inc. (NFS). NFS is the holding company for Nationwide Life Insurance Company (NLIC) and other companies that comprisethe life insurance and retirement savings operations of the Nationwide group of companies (Nationwide). This group also includes

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Corporate Overview: (Continued...)

Nationwide Life Insurance Company of America (NLICA) and its subsidiaries, including the affiliated distribution network (NationwideFinancial Network [NFN]).

Corporate Structure

AMB# Company Name Domicile Percentage Own (%)002358 Nationwide Mutual Ins Co OH033595 Allied Holdings (DE), Inc. DE 100058310 ALLIED Group, Inc. IA 100001772 ALLIED Property & Cas Ins Co IA 100052365 Nationwide Advantage Mortgage IA 8.47002014 AMCO Insurance Company IA 100052365 Nationwide Advantage Mortgage IA 87.3090236 AGMC Reinsurance, Ltd. Turks And Caicos Islands 100001872 Depositors Insurance Company IA 100052365 Nationwide Advantage Mortgage IA 4.23002513 Nationwide Ins Co of America OH 100058389 Harleysville Group Inc DE 100000643 Harleysville Insurance Company OH 100012051 Harleysville Ins Co of NY OH 100001921 Harleysville Ins Co of NJ NJ 100000603 Harleysville Lake States Ins MI 100003779 Harleysville Preferred Ins Co OH 100002483 Harleysville Worcester Ins Co OH 100011541 Allied Ins Co of America OH 100001987 Crestbrook Insurance Company OH 100006517 Harleysville Life Ins Co OH 100054013 Lone Star General Agency Inc TX 100010346 Colonial County Mutual Ins Co TX003007 National Casualty Company OH 100078197 Natl Cas Co of America Ltd United Kingdom 100011802 Nationwide Affinity Ins Co Am OH 100003539 Nationwide Agribusiness Ins Co IA 100000277 Nationwide Assurance Company OH 100050675 Nationwide Corporation OH 95.2058160 Nationwide Financial Services DE 100006812 Nationwide Life Ins Co OH 100062060 Eagle Captive Reinsurance LLC OH 100051872 Jefferson National Financial DE 100006475 Jefferson National Life Ins Co TX 100061881 Jefferson National Life Ins NY NY 100009070 Nationwide Life & Annuity Ins OH 100060680 Olentangy Reinsurance LLC VT 100002356 Nationwide General Ins Co OH 100011664 Nationwide Indemnity Company OH 100012238 Nationwide Ins Co of Florida OH 100

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Corporate Structure (Continued...)

002855 Nationwide Lloyds TX002594 Nationwide Prop & Cas Ins Co OH 100001931 Scottsdale Indemnity Company OH 100003292 Scottsdale Insurance Company OH 100013981 Freedom Specialty Insurance Co OH 100012121 Scottsdale Surplus Lines Ins AZ 100001722 Veterinary Pet Insurance Co OH 100000601 Western Heritage Insurance Co AZ 100050366 THI Holdings (Delaware) Inc DE 100010709 Titan Insurance Company MI 100000671 Victoria Fire & Casualty Co OH 100011688 Victoria Automobile Ins Co OH 100011689 Victoria Select Insurance Co OH 100012058 Victoria Specialty Ins Co OH 100012059 Victoria National Ins Co OH 100002357 Nationwide Mutual Fire Ins Co OH050675 Nationwide Corporation OH 4.8075578 Retention Alternatives, Ltd. Bermuda 100

Rating Rationale:The company's rating reflects its pooling arrangement with other pool members of the Nationwide Group (AMB# 005987).

The following text is derived from Best's Credit Report on Nationwide Group (AMB#005987)

Balance Sheet Strength: Strongest

• Strongest level of risk-adjusted capitalization as measured by the Best's Capital Adequacy Ratio (BCAR) scores at the 99.6%level.

• Financial flexibility provided by availability of capital within members of the group.

• Retained earnings support moderate growth in policyholders' surplus in most years.

• Diversification of invested asset base provides consistent net investment income results.

Operating Performance: Adequate

• Long-term performance is indicative of Nationwide's capabilities to manage its position in the personal and commercial markets.

• Volatility in recent years has exposed areas with a need for expanded depth and breadth of evaluating exposures and lossexperience.

• Softening of loss ratios have been exacerbated by natural catastrophe exposures.

• Investment income provides considerable support to operating performance.

Business Profile: Favorable

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• Established leadership positions in multiple markets include private passenger auto, homeowners, and surplus lines.

• Exceptional geographic diversification, which moderates the impact of weather events, regulatory issues, or competitiveconditions.

• Strong brand recognition.

Enterprise Risk Management: Appropriate

• Fully developed risk management program that encompasses risk tolerance, capital management, and strategic planning.

• Robust internal structure to measure and monitor alignment of risk exposures.

• Continuous development of tools used to analyze natural catastrophe exposures, complemented by judicious use of reinsuranceprograms that constrain any impact of large losses.

• Utilizes modeling to evaluate financial and operational expectations and compliance.

Rating Lift/Drag

• Lift is considered within this rating given the depth and breadth of the Nationwide organization.

• Rating enhancement reflects strategic importance of individual business units to the consolidated results of the enterprise.

OutlookThe outlooks are a reflection of concerns with the operating performance recorded by the group over the recent history. Theseresults are under pressure from dynamics in multiple lines of business and were exacerbated by losses in 2017 from wildfires.

Rating DriversIf trends in underwriting performance continue to be unprofitable or volatile in the near term further downward rating pressure wouldbe considered.

An established improving trend in underwriting performance could eventually lead to consideration of stable outlooks.

Financial Data Notes:

Time Period: Annual - 2017 Status: A.M. Best Quality Cross Checked Data as of: 10/05/2018

Corporate Structure (Continued...)

002855 Nationwide Lloyds TX002594 Nationwide Prop & Cas Ins Co OH 100001931 Scottsdale Indemnity Company OH 100003292 Scottsdale Insurance Company OH 100013981 Freedom Specialty Insurance Co OH 100012121 Scottsdale Surplus Lines Ins AZ 100001722 Veterinary Pet Insurance Co OH 100000601 Western Heritage Insurance Co AZ 100050366 THI Holdings (Delaware) Inc DE 100010709 Titan Insurance Company MI 100000671 Victoria Fire & Casualty Co OH 100011688 Victoria Automobile Ins Co OH 100011689 Victoria Select Insurance Co OH 100012058 Victoria Specialty Ins Co OH 100012059 Victoria National Ins Co OH 100002357 Nationwide Mutual Fire Ins Co OH050675 Nationwide Corporation OH 4.8075578 Retention Alternatives, Ltd. Bermuda 100

Rating Rationale:The company's rating reflects its pooling arrangement with other pool members of the Nationwide Group (AMB# 005987).

The following text is derived from Best's Credit Report on Nationwide Group (AMB#005987)

Balance Sheet Strength: Strongest

• Strongest level of risk-adjusted capitalization as measured by the Best's Capital Adequacy Ratio (BCAR) scores at the 99.6%level.

• Financial flexibility provided by availability of capital within members of the group.

• Retained earnings support moderate growth in policyholders' surplus in most years.

• Diversification of invested asset base provides consistent net investment income results.

Operating Performance: Adequate

• Long-term performance is indicative of Nationwide's capabilities to manage its position in the personal and commercial markets.

• Volatility in recent years has exposed areas with a need for expanded depth and breadth of evaluating exposures and lossexperience.

• Softening of loss ratios have been exacerbated by natural catastrophe exposures.

• Investment income provides considerable support to operating performance.

Business Profile: Favorable

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Key Financial Indicators:

Key Financial Indicators (000)Year End - December 31

2017 2016 2015 2014 2013

Premiums WrittenDirect 2,494,116 2,669,671 2,885,382 3,331,544 3,596,738Net 12,718,338 16,174,411 15,510,776 14,962,667 14,630,884

Pre-tax Operating Income ($000) -886,538 -427,635 162,589 679,792 479,757Net Income -370,826 -314,581 184,128 718,375 499,835Total Admitted Assets 35,425,425 37,185,213 35,923,712 34,711,195 32,675,758Policyholders' Surplus 12,193,333 12,690,338 12,315,875 12,137,989 11,792,529Source: Bestlink - Best's Statement File - P/C, US

Key Financial Indicators - A.M. Best Ratios (%)Year End - December 31

2017 2016 2015 2014 2013

ProfitabilityCombined Ratio 114.0 106.6 104.3 104.3 99.9Investment Yield 1.9 2.1 3.1 5.3 2.8Pre-Tax Return on Revenue -6.5 -2.7 1.1 4.6 3.5

LeverageNon-Affiliated Investment Leverage 33.2 32.4 37.7 34.0 27.9Net Premiums Written to Policyholders' Surplus 1.0 1.3 1.3 1.2 1.2Net Leverage 2.9 3.2 3.2 3.1 3.0

LiquidityOverall Liquidity 152.7 152.0 152.3 154.0 156.8Operating Cash-Flow 100.9 103.8 109.3 104.6 101.5

Source: Bestlink - Best's Statement File - P/C, US

(*) Within several financial tables of this report, this company is compared against the Private Passenger Standard Auto &Homeowners Composite.(*) Data reflected within all tables of this report has been compiled from the company-filed statutory statement.

Credit Analysis:Balance Sheet Strength

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Capitalization:

Capital Generation AnalysisYear End - December 31

2017 2016 2015 2014 2013

Pre-tax Operating Income ($000) -886,538 -427,635 162,589 679,792 479,757Realized Capital Gains ($000) 145,760 -5,174 -132,066 -68,182 11,101Income Taxes ($000) -369,952 -118,228 -153,604 -106,765 -8,976Unrealized Capital Gains ($000) 659,290 427,243 -38,169 183,709 28,629Net Contributed Capital ($000) 526 526 526 25,690 22,248Other Changes ($000) -785,995 261,275 31,402 -582,314 -102,181Change in Policyholders' Surplus($000)

-497,004 374,463 177,886 345,461 448,530

Change in Policyholders' Surplus (%) -3.9 3.0 1.5 2.9 4.0Source: Bestlink - Best's Statement File - P/C, US

Liquidity Analysis (%)Company Industry Composite

Year End - December 31 Year End - December 312017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Quick Liquidity 7.2 7.9 10.5 9.9 9.4 24.3 26.9 27.2 27.9 25.5Current Liquidity 51.1 57.4 57.3 55.1 56.0 98.7 102.6 103.0 104.4 102.9Overall Liquidity 152.7 152.0 152.3 154.0 156.8 161.6 164.9 165.5 167.0 164.4Source: Bestlink - Best's Statement File - P/C, USIndustry Composite: Private Passenger Standard Auto & Homeowners Composite - Bestlink - Best's Statement File - P/C, US

Asset Liability Management – Investments:

Bond Portfolio - 2017 Bonds Distribution by Maturity (%)Years Years Average

0-1 1-5 5-10 10-20 20+ Maturity

Government 0.4 1.4 4.0 ... 0.4 7.1Government Agencies and Municipal Bonds 3.8 9.3 8.2 4.2 1.1 6.9Industrial and Misc. 3.8 30.5 28.7 2.7 1.5 5.8Hybrid Securities ... ... ... ... ... 25.0Total 8.0 41.2 40.9 6.9 3.0 6.1


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Asset Liability Management – Investments: (Continued...)

Bond Distribution by Issuer TypeYear End - December 31

2017 2016 2015 2014 2013Bonds ($000) 11,267,649 13,448,898 12,596,065 11,459,137 11,085,768US Government (%) 6.1 5.0 6.6 8.3 10.6Foreign Government (%) 0.1 0.1 0.1 0.1 0.1Foreign-All Other (%) 8.7 8.5 8.7 12.5 12.2State/Special Revenue-US (%) 26.5 27.5 32.2 34.2 34.6Industrial and Misc-US (%) 58.6 58.9 52.4 44.9 42.5Credit Tenant Lns-US (%) ... ... ... ... ...Source: Bestlink - Best's Statement File - P/C, US

2017 Bond Distribution By Issuer Type

6.1%

0.1%

8.7%

26.5%58.6%

US Government (%) Foreign Government (%) Foreign-All Other (%) State/Special Revenue-US (%) Industrial and Misc-US (%)


Reserve Adequacy:

Loss and Allocated Loss Adjustment Expense Reserve Development

Year End - December 31

Calendar Year: 2017 2016 2015 2014 2013

Original Loss Reserves ($000) 10,690,167 10,057,563 9,302,301 8,612,858 8,121,450

Developed Reserves Thru Latest Year End ($000) 10,690,167 10,118,869 9,574,547 8,965,676 8,317,470

Development to Original (%) ... 0.6 2.9 4.1 2.4

Development to Policyholder Surplus (%) ... 0.5 2.2 2.9 1.7

Developed Reserves to Net Premiums Earned (%) 78.1 73.2 71.2 69.5 68.2

Unpaid Reserves @ Latest Year End ($000) 10,690,167 6,190,197 3,847,690 2,432,668 1,597,558

Unpaid Reserves to Developed Reserves (%) 100.0 61.2 40.2 27.1 19.2

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Reserve Adequacy: (Continued...)

Year End - December 31

Accident Year: 2017 2016 2015 2014 2013

Original Loss Reserves ($000) 4,499,970 4,242,332 3,926,745 3,596,835 3,263,100

Developed Reserves Thru Latest Year End ($000) 4,499,970 4,263,819 4,007,849 3,825,991 3,447,824

Development to Original (%) ... 0.5 2.1 6.4 5.7

Unpaid Reserves @ Latest Year End ($000) 4,499,970 2,342,507 1,415,022 835,110 420,911

Accident Year Loss Ratio (%) 80.2 73.3 70.3 72.2 68.6

Accident Year Combined Ratio (%) 113.1 105.1 103.5 105.3 102.3Source: Bestlink - Schedule P (Loss Reserves) - P/C, US

Operating Performance

Financial Performance Summary (000)

Year End - December 312017 2016 2015 2014 2013

Pre-tax Operating Income -886,538 -427,635 162,589 679,792 479,757

Net Income -370,826 -314,581 184,128 718,375 499,835Source: Bestlink - Best's Statement File - P/C, US

A.M. Best Ratios (%)Company Industry Composite

Year End - December 31 Year End - December 312017 2016 2015 2014 2013 2017 2016 2015 2014 2013

Operating Ratio 110.3 103.0 99.0 95.5 95.4 99.2 97.0 94.4 93.5 92.7Realized Return on Invested Assets 2.5 2.1 2.6 5.0 2.9 3.5 2.8 3.2 3.8 4.0Pre-Tax Return on Revenue -6.5 -2.7 1.1 4.6 3.5 0.9 3.1 5.5 6.2 6.9Return on Surplus 2.3 0.9 1.2 7.5 4.6 5.9 5.4 3.9 8.2 9.8Loss & LAE Ratio 81.1 74.7 71.1 71.1 66.2 76.5 73.4 71.0 70.4 69.6Expense Ratio 32.9 31.8 33.1 33.1 33.7 27.2 27.6 27.8 28.1 28.3

Combined Ratio 114.0 106.6 104.3 104.3 99.9 104.5 101.7 99.7 99.4 98.8Net Investment Yield 1.9 2.1 3.1 5.3 2.8 2.9 2.7 3.0 3.2 3.4Source: Bestlink - Best's Statement File - P/C, USIndustry Composite: Private Passenger Standard Auto & Homeowners Composite - Bestlink - Best's Statement File - P/C, US

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Combined Ratio (%)

0

30

60

90

120

150

2013 2014 2015 2016 2017

66.2 71.1 71.1 74.781.1

33.7 33.1 33.1 31.8 32.9

99.9 104.3 104.3 106.6114.0

- Combined Ratio - Loss & LAE Ratio - Expense Ratio

2017 Pure Loss Ratio by Product Line (%)

0

20

40

60

80

100

Priv Pas

s Auto Liab

Auto Physica

l

Homeowners

Com'l MultiP

eril

Comm'l Auto Liab

Oth Liab O

ccur

Inland M

arine

Farmowners

Oth Liab C

M

Workers'

Comp

All Other

63.5 62.9

92.0

69.581.6

64.6 61.1

97.3

36.348.9

76.6


Business ProfileThe following text is derived from Best's Credit Report on Nationwide Group (AMB# 005987):

Nationwide is one of the largest multi-line insurers and financial services organizations in the U.S., with statutory assets within it'sproperty & casualty companies of nearly $53.0 billion. Its combined operations are serviced by 33,000 employees and by more than60,000 agents and producers. Through its various affiliates, Nationwide is engaged in two core businesses: Property/Casualty

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Insurance and Life & Retirement Savings. The main rating unit, Nationwide Group, consists of four members of the intercompanyreinsurance pool: Nationwide Mutual Insurance Company, Nationwide Mutual Fire Insurance Company, Scottsdale InsuranceCompany, and Farmland Mutual Insurance Company. The pooling agreement also includes over thirty affiliates which reinsure witheither a pool member or another affiliate to qualify for inclusion. One subsidiary company, Nationwide Indemnity Company, since 1998has primarily served as the runoff entity for Nationwide's discontinued operations, mainly those with exposure to asbestos andenvironmental (A&E) claims.

The Property/Casualty Insurance segment, led by Nationwide Mutual Insurance Company (NMIC), generates approximately 80% ofNationwide's net premiums written. NMIC provides personal and main-street commercial insurance primarily through a nationalnetwork of exclusive agencies. In addition, Nationwide distributes through direct response and independent agency channels. Thesedistribution mechanisms have been enhanced over the years by acquisitions of other smaller insurance operations.

Nationwide's primary property/casualty lines of business include traditional personal markets products along with main-streetcommercial business type insurance. Coverage is written predominantly through NMIC. The products include private passengerautomobile liability and physical damage, homeowners, and an extensive collection complementary products for residences, vehicles,and life events. Main-street commercial coverage offerings include business owners, commercial auto, workers compensation, surpluslines, and agribusiness. These products are offered across a wide variety of small, middle market, and large market segments.Historically these markets were served by affiliated entities within Nationwide using existing brand names. In 2014 the organizationbegan the process of re-branding all companies as "Nationwide" to further enforce the concept of membership.

The Life & Retirement Savings segment, led by NFS and its subsidiaries, Nationwide Life Insurance Company and Nationwide Lifeand Annuity Insurance Company, provides long-term savings and retirement products, including variable annuities, fixed annuities andlife insurance as well as pension products and administrative services. These products are distributed through financial planners,financial institutions, pension plan administrators, stockbrokers and Nationwide's exclusive sales representatives and agency force.

As part of its plans to significantly grow its property/casualty revenues, Nationwide continues to leverage its multi-channel presence torespond to changing customer preferences. The group utilizes multiple access points to attract new customers with acquisitions. Whileoffering new outlets to customers, the group expects its independent agents to remain a key part of its growth strategy. Additionalgrowth is planned by expanding existing distribution channels, comprised of exclusive and independent agents, into areas whereNationwide has little or no presence supplemented by using multiple access points, such as direct response, the Internet, and greateremployer and affinity group endorsements of Nationwide products. In furtherance of this strategy, in January 2009, the groupcompleted the privatization of Nationwide Financial Services, Inc. (NFS), the intermediate parent holding company of its life insurancesubsidiaries. The increased cultural alignment brought about by the privatization is expected to strengthen the group's competitiveposition, facilitate a more integrated, focused customer-centric view and enhance delivery of Nationwide's "On Your Side" promise.

Nationwide Group and its subsidiary companies maintain leading market positions in nearly all property and casualty product lines.The group is the largest writer of farm policies and pet insurance nationally. The group also ranks as the 8th largest auto insurer, 7thlargest homeowners insurer, and the 3rd largest US based surplus line group.

Products are available across the United States, the District of Columbia, Canada, and U.S. territories.

Leverage AnalysisCompany Industry Composite

Year End - December 31 Year End - December 31

A.M. Best Ratios (%) 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013Net Premiums Written to Policyholders' Surplus 1.0 1.3 1.3 1.2 1.2 1.1 1.1 1.1 1.1 1.1Source: Bestlink - Best's Statement File - P/C, USIndustry Composite: Private Passenger Standard Auto & Homeowners Composite - Bestlink - Best's Statement File - P/C, US

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2017 Top Product Lines of Business (Net Premiums Written)

23.2%

18.5%

16.6%

12.7%

6.8%

6.7%

3.4%

2.6%2.5%

2.3%

4.7%

Priv Pass Auto Liab Auto Physical Homeowners Com'l MultiPeril Comm'l Auto Liab Oth Liab Occur Inland Marine Farmowners Oth Liab CM Workers' Comp All Other


2017 By-Line Business

Product Line

DirectPremiums

Written

ReinsurancePremiumsAssumed

ReinsurancePremiums

Ceded

NetPremiums

Written BusinessRetention

(%)($000) (%) ($000) (%) ($000) (%) ($000) (%)

Priv Pass Auto Liab 856,843 34.4 3,511,460 19.9 1,414,137 19.1 2,954,166 23.2 98.0

Auto Physical 653,011 26.2 2,858,794 16.2 1,158,952 15.7 2,352,853 18.5 99.6

Homeowners 122,302 4.9 3,169,487 18.0 1,181,613 16.0 2,110,176 16.6 95.5

Com'l MultiPeril 297,499 11.9 2,298,042 13.1 982,182 13.3 1,613,359 12.7 95.1

Comm'l Auto Liab 154,377 6.2 1,331,426 7.6 626,103 8.5 859,700 6.8 99.9

Oth Liab Occur 183,369 7.4 1,190,353 6.8 523,346 7.1 850,375 6.7 98.8

Inland Marine 74,388 3.0 896,186 5.1 540,774 7.3 429,800 3.4 98.6

Farmowners 5,003 0.2 502,412 2.9 173,176 2.3 334,239 2.6 97.4

Oth Liab CM 4,059 0.2 514,863 2.9 195,057 2.6 323,865 2.5 100.0

Workers' Comp 47,361 1.9 445,819 2.5 206,181 2.8 287,000 2.3 99.2

All Other 95,903 3.8 890,598 5.1 383,696 5.2 602,805 4.7 94.5

Total 2,494,116 100.0 17,609,439 100.0 7,385,218 100.0 12,718,338 100.0 97.6Source: Bestlink - Best's Statement File - P/C, US

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Geographical Breakdown By Direct Premium Writings

2017 2016 2015 2014 2013

North Carolina 383,722 407,117 436,739 467,629 494,123

Pennsylvania 276,022 299,135 341,060 429,137 478,589

Ohio 250,890 258,803 280,144 328,312 341,573

Virginia 206,415 222,761 242,171 275,364 286,969

California 198,116 199,962 195,392 259,287 258,580

Maryland 128,075 144,584 164,264 180,643 197,547

New York 100,770 112,757 119,909 119,348 121,745

West Virginia 99,542 109,251 121,892 138,695 155,952

Georgia 96,069 112,056 101,368 51,519 30,614

Delaware 62,034 69,198 81,388 93,878 101,581

All Other 692,460 734,048 801,056 987,731 1,129,465

Total 2,494,117 2,669,671 2,885,382 3,331,544 3,596,738Source: Bestlink - Best's Statement File - P/C, US

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Financial Statements:

Balance Sheet:

Balance Sheet:

Admitted Assets Year End - December 31

2017 ($000) 2016 ($000) 2017 (%) 2016 (%)

Bonds 11,267,649 13,448,898 31.8 36.2

Preferred Stock 2,197 178 ... ...

Common Stock 34,278 18,686 0.1 0.1

Cash and Short-term Invest 460,758 468,089 1.3 1.3

Real Estate, Investment 35,569 31,424 0.1 0.1

Derivatives ... 2,639 ... ...

Other Non-Affil Inv Asset 2,885,388 2,748,081 8.1 7.4

Investments in Affiliates 10,429,302 9,987,040 29.4 26.9

Real Estate, Offices 540,595 553,448 1.5 1.5

Total Invested Assets 25,655,735 27,258,482 72.4 73.3

Premium Balances 5,432,608 5,653,603 15.3 15.2

Accrued Interest 110,177 132,029 0.3 0.4

All Other Assets 4,226,904 4,141,099 11.9 11.1

Total Assets 35,425,425 37,185,213 100.0 100.0

Liabilities & Surplus Year End - December 31

2017 ($000) 2016 ($000) 2017 (%) 2016 (%)Loss and LAE Reserves 10,990,328 11,917,119 31.0 32.0Unearned Premiums 5,563,990 6,541,079 15.7 17.6Derivatives 33,796 54,811 0.1 0.1Conditional Reserve Funds 32,455 24,009 0.1 0.1All Other Liabilities 6,611,523 5,957,858 18.7 16.0

Total Liabilities 23,232,092 24,494,875 65.6 65.9

Surplus notes 2,192,136 2,191,611 6.2 5.9Capital and Assigned Surplus ... ... ... ...Unassigned Surplus 10,001,197 10,498,727 28.2 28.2

Total Policyholders' Surplus 12,193,333 12,690,338 34.4 34.1Total Liabilities and Surplus 35,425,425 37,185,213 100.0 100.0


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Summary of Operations and Operating Cash Flow:

Summary of Operations (000)

Year End - December 31Statement of Income 2017 Net Operating Cash Flow 2017

Premiums earned 13,695,561 Premiums collected 13,950,722

Losses incurred 9,676,682 Benefit & loss-related pmts 9,040,530

LAE incurred 1,425,061

Undwr expenses incurred 4,180,026 LAE & undwr expenses paid 5,742,701

Other expenses incurred ... Other income / expense ...

Dividends to policyholders 9,061 Dividends to policyholders 11,399

Net underwriting income -1,595,268 Underwriting cash flow -843,909

Net transfer ...

Net investment income 500,719 Investment income 678,089

Other income/expense 208,012 Other income/expense 239,867

Pre-tax operating income -886,538 Pre-tax cash operations 74,048

Realized capital gains 145,760

Income taxes incurred -369,952 Income taxes pd (recov) -63,220

Net income -370,826 Net oper cash flow 137,267Source: Bestlink - Best's Statement File - P/C, US

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Nationwide Mutual Insurance CompanyReport Revision Date:April 10, 2019

Company Attributes:

Industry: InsuranceBusiness Type: Property/CasualtyEntity Type: Operating CompanyOrganization Type: MutualBusiness Status: In Business - Actively UnderwritingMarketing Type: Exclusive/Captive AgentFinancial Size: XV ($2 Billion or greater)

Company History:

Date Incorporated: 12/06/1925 Date Commenced: 04/14/1926 Domicile: United States: Ohio

This company, incorporated on December 16, 1925, under the laws of Ohio, began business on April 14, 1926, under the sponsorshipof The Ohio Farm Bureau Federation to provide automobile insurance for Farm Bureau members at cost.

Operations were conducted under the title Farm Bureau Mutual Automobile Insurance Company until September 1, 1955. On thatdate, the present corporate title was adopted.

Company Operations:

Licensed Territory: (Current since 10/31/2017).The company is licensed in the District of Columbia, Guam, U.S. Virgin Islands andall states.

2018Rank Top 5 Lines of Business by NPW1 Priv Pass Auto Liab 22.1%2 Auto Physical 17.5%3 Homeowners 17.0%4 Com'l MultiPeril 12.5%5 Comm'l Auto Liab 6.9%

2018Rank Top 5 Geographic Distribution by DPW1 United States: NC 14.7%2 United States: PA 10.7%3 United States: OH 9.8%4 United States: CA 9.3%5 United States: VA 8.3%


Company Management:

Last significant update on 04/10/2019

Officers

Chairman: Timothy J. CorcoranCEO: Stephen S. RasmussenPresident and COO: Mark A. Berven (Property & Casualty)

www.ambest.com



Company Management: (Continued...)

Officers (Continued...)

President and COO: Kirt A. Walker (Nationwide Financial)President and Chief Marketing Officer: Terrance Willams (Emerging Businesses)EVP and CFO: Mark R. ThresherEVP and Chief Information Officer: James R. FowlerEVP and Chief Administrative Officer: Gale V. KingEVP and Chief Legal Officer: Mark S. HowardSVP and Chief Investment Officer: Harry H. HallowellSVP and Treasurer: David LaPaulSVP: Tina AmbrozySVP: David G. ArangoSVP: James D. BensonSVP: Pamela A. BieseckerSVP: Shelley Brazeau TempleSVP: John L. CarterSVP: Thomas E. ClarkSVP: Gary A. DouglasSVP: Timothy G. FrommeyerSVP: Steven A. GinnanSVP: Susan J. GueliSVP: Eric S. HendersonSVP: Gregory S. JordanSVP: Angela C. KlettSVP: James KorcykoskiSVP: Michael P. LeachSVP: Brad R. LiggettSVP: Michael W. MahaffeySVP: Sandra L. RichSVP: Jeff M. RommelSVP: Amy T. ShoreSVP: Eric E. SmithSVP: Michael S. SpanglerSVP: Joseph D. SpragueSVP: Guruprasad C. VasudevaVice President and Secretary: Denise L. Skingle

Directors

Craig R. AdamsTimothy J. CorcoranYvonne M. CurlJacquelin M. FernandezStephen F. HirschMarc A. HowzeDaniel T. KelleyM. Diane KokenLydia M. MarshallSara A. Martinez TuckerTerry W. McClureBrent R. PorteusSuku Radia

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Copyright © 2019 A.M. Best Company, Inc. and/or its affiliates. All rights reserved.No portion of this content may be reproduced, distributed, or stored in a database or retrieval system, or transmitted in any form or by any means without the prior written permis-sion of AM Best. While the content was obtained from sources believed to be reliable, its accuracy is not guaranteed. For additional details, refer to our Terms of Use available at AM Best website: www.ambest.com/terms.

Best’s Credit Rating Methodology | Disclaimer | Best’s Credit Rating Guide


Directors (Continued...)

Stephen S. RasmussenMichael J. ToelleSparky WeilnauJeffrey W. Zellers

Regulatory:

Auditor: KPMG, LLP

An examination of the financial condition was made as of December 31, 2016, by the insurance department of Ohio. The 2018 annualindependent audit of the company was conducted by KPMG, LLP. The annual statement of actuarial opinion is provided by G.Christopher Nyce, FCAS, MAAA, KPMG, LLP.

A Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The ratings are not assigned to specific insurance policies or contractsand do not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds ofmisrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. A Financial Strength Rating is not a recommendation to purchase, hold or terminate anyinsurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser.

A Best's Issue/Issuer Credit Rating is an opinion regarding the relative future credit risk of an entity, a credit commitment or a debt or debt-like security.

Credit risk is the risk that an entity may not meet its contractual, financial obligations as they come due. These credit ratings do not address any other risk, including but not limited to liquidity risk,market value risk or price volatility of rated securities. The rating is not a recommendation to buy, sell or hold any securities, insurance policies, contracts or any other financial obligations, nor does itaddress the suitability of any particular financial obligation for a specific purpose or purchaser.

In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does notindependently verify the accuracy or reliability of the information. Any and all ratings, opinions and information contained herein are provided "as is," without any express or implied warranty.

Visit http://www.ambest.com/ratings/notice.asp for additional information or http://www.ambest.com/terms.html for details on the Terms of Use. For current ratings visit www.ambest.com/ratings

Best's Credit Rating Methodology | Disclaimer | Best's Credit Rating Guide


Directors (Continued...)

Stephen S. RasmussenMichael J. ToelleSparky WeilnauJeffrey W. Zellers

Regulatory:

Auditor: KPMG, LLP

An examination of the financial condition was made as of December 31, 2016, by the insurance department of Ohio. The 2018 annualindependent audit of the company was conducted by KPMG, LLP. The annual statement of actuarial opinion is provided by G.Christopher Nyce, FCAS, MAAA, KPMG, LLP.

A Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The ratings are not assigned to specific insurance policies or contractsand do not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds ofmisrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. A Financial Strength Rating is not a recommendation to purchase, hold or terminate anyinsurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser.

A Best's Issue/Issuer Credit Rating is an opinion regarding the relative future credit risk of an entity, a credit commitment or a debt or debt-like security.

Credit risk is the risk that an entity may not meet its contractual, financial obligations as they come due. These credit ratings do not address any other risk, including but not limited to liquidity risk,market value risk or price volatility of rated securities. The rating is not a recommendation to buy, sell or hold any securities, insurance policies, contracts or any other financial obligations, nor does itaddress the suitability of any particular financial obligation for a specific purpose or purchaser.

In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does notindependently verify the accuracy or reliability of the information. Any and all ratings, opinions and information contained herein are provided "as is," without any express or implied warranty.

Visit http://www.ambest.com/ratings/notice.asp for additional information or http://www.ambest.com/terms.html for details on the Terms of Use. For current ratings visit www.ambest.com/ratings

Best's Credit Rating Methodology | Disclaimer | Best's Credit Rating Guide

Copyright © 2019 A.M. Best Company, Inc. and/or its affiliates. All rights reserved.No portion of this content may be reproduced, distributed, or stored in a database or retrieval system, or transmitted in any form or by any means without the prior written permis-sion of AM Best. While the content was obtained from sources believed to be reliable, its accuracy is not guaranteed. For additional details, refer to our Terms of Use available at AM Best website: www.ambest.com/terms.

http://www3.ambest.com/ambv/ratingmethodology/

http://www.ambest.com/ratings/index.html

http://www.ambest.com/ratings/guide.pdf

b est’s r ating r eport nationwide mutual insurance ... · page 1 of 18 printed april 10, 2019 b...

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