Financial services and insurance giant Nationwide has reported another year – the third in a row – of record sales.
The achievement, according to Nationwide, was thanks largely to the success of its financial services division. Notably, the significant milestone was reached even while providing members almost $23 billion in claims payments and benefits during a challenging period characterized by high inflation, rising interest rates, and extreme weather conditions.
The company’s total sales surged past $60 billion, an increase of $3 billion from the previous year, marking the third consecutive year of record performance. Net operating income, meanwhile, held steady at $1.3 billion. As for last year’s total adjusted capital, a nearly 5% increase resulted in $25 billion.
Kirt Walker, Nationwide’s chief executive, commented: “I’m proud of what we accomplished in 2023 – capital growth, record top-line growth, and strong net operating income. We faced many challenges and, through it all, our associates persevered and delivered on our promise of protection for our customers and our communities. That’s the mark of a resilient company.
“Some of those challenges we faced were industry-wide, like in P&C (property and casualty) where the overall industry experienced one of the costliest years on record, driven by record levels of severe weather and persistent inflation. For Nationwide, our diverse portfolio of businesses enabled us to thrive while many peers struggled to deliver bottom-line results.”
It was noted that seven out of Nationwide’s nine business lines met or exceeded their capital return expectations.
Chief financial officer Tim Frommeyer praised Nationwide’s diversified portfolio, effective risk management, renowned brand, and mutual company structure as pivotal competitive strengths.
“Managing 2023 demanded agility and business-decision velocity, and we continue to double down on these strengths in 2024,” the CFO said. “We took advantage of opportunities the markets provided, we shifted capital toward businesses achieving their return-on-capital targets, and we continued to drive operating efficiencies at levels that achieved our multi-year expense reduction goal.”
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