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Nationwide Reports Higher 4th Quarter Net Income

By Staff Writer

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NU Online News Service, Feb. 4, 10:27 a.m. – Nationwide Financial Services Inc., Columbus, Ohio, is reporting $107 million in net income for the fourth quarter of 2002 on $992 million in operating revenue, up from $59 million in net income on $774 million in revenue for the fourth quarter of 2001.

Realized investment losses fell to $16 million for the latest quarter, down from $36 million for the comparable quarter in 2001.

Interest spreads, or the difference between what Nationwide earned on in its investments and what it had to pay to customers, shrank to 1.94 percentage points, from 2.04 percentage points, for institutional customers but widened to 1.93 percentage points, from 1.85 percentage points, for individual annuities.

Nationwide sells individual annuities, institutional investment services and life insurance.

Individual annuities: $51 million in operating income for the latest quarter on $336 million in operating revenue, up from $50 million in operating income on $285 million in operating revenue. Fixed annuity sales fell 14% from the fourth quarter of 2001, to $535 million, but variable annuity sales fell only 4%, to $1.3 billion.

Institutional: $61 million in operating income for the latest quarter on $284 million in operating revenue, up from $52 million in operating income on $280 million in operating revenue. Private pension sales increased 10%, to $1.1 billion.

Life insurance: $65 million in operating income on $347 million in operating revenue, up from $49 million in operating income on $212 million in operating revenue.