A.M. Best Comments On Nationwide Insurance Company of Florida's Capital Management Efforts

Business Wire, Oct 20, 2004

OLDWICK, N.J. -- A.M. Best Co. and Nationwide Insurance Company of Florida (NICOF) (Columbus, OH) have had capital management discussions following hurricanes Charley, Frances, Ivan and Jeanne, which resulted in pre-tax losses, net of recoveries, from the Florida Hurricane Catastrophe Fund (FHCF), which are significant to the capital position of NICOF. During the discussions, management re-affirmed its commitment to NICOF policyholders.

Although A.M. Best is encouraged by the potential parental support following these events, the financial strength rating of A- (Excellent) of NICOF remains under review with negative implications as its current risk-adjusted capitalization is not supportive of the existing rating. NICOF's ability to maintain its current rating is predicated on the restoration of its capital position, and A.M. Best will continue to maintain capital discussions with NICOF and its parent company, Nationwide Mutual Insurance Company.

For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.