Nationwide units slip in S&P ratings

Standard and Poor’s Ratings Services today lowered its counterparty credit and financial ratings on Nationwide Financial, the life insurance division of Columbus, Ohio-based Nationwide Mutual Insurance Co., to A+, from AA-.
DEC 22, 2008
By  Bloomberg
Standard and Poor’s Ratings Services today lowered its counterparty credit and financial ratings on Nationwide Financial, the life insurance division of Columbus, Ohio-based Nationwide Mutual Insurance Co., to A+, from AA-. The agency lowered the companies’ ratings in order to bring them into alignment with its A+ rating of the parent company and because of concerns about how the financial markets will continue to affect life insurers, Matthew Carroll, credit analyst at S&P, said in a statement. The New York-based ratings agency also cut the counterparty credit rating of the company’s retirement plan unit, Nationwide Financial Services Inc., to BBB+, from A-. S&P’s outlook for the operating units and the parent company is stable. The ratings actions came just before Nationwide Mutual reintegrates NFS into its mutual structure, effective Jan. 1. Despite the lower ratings, S&P expects the company to sustain capital adequacy and believes that Nationwide Financial’s retirement services segment will continue generating positive net flows and stable earnings contributions. As a result, S&P has removed the company from its CreditWatch negative list.

Latest News

Decade of RIA M&A explosion shows no slowdown: Fidelity
Decade of RIA M&A explosion shows no slowdown: Fidelity

There's been an emergence of buyers, backed with PE dollars, making repeated acquisitions.

Spotlighting the Fastest-Growing Fee-Only RIAs in the USA
Spotlighting the Fastest-Growing Fee-Only RIAs in the USA

Discover which fee-only RIAs had standout performances in 2024

Advisor AI startup Zeplyn adds ex-LPL leader Kabir Sethi to board
Advisor AI startup Zeplyn adds ex-LPL leader Kabir Sethi to board

The two-decade veteran, whose career also includes a stint at Merill Lynch, will help shape strategy for the Google engineer-founded fintech.

Proactivity is key to client satisfaction, and it's lagging, survey says
Proactivity is key to client satisfaction, and it's lagging, survey says

A new Hearts & Wallets survey shows financial advisory clients want proactivity, but too often are not getting it.

US wholesale inflation surprises on food, energy prices
US wholesale inflation surprises on food, energy prices

The latest PPI print, clocking in north of 3 percent, adds to concerns that inflation is far from tamed.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.