NU Online News Service, July 28, 2003, 6:40 p.m. EDT – Executives at Nationwide Financial Services Inc., Columbus, Ohio, say the company did well during the second quarter but is cutting back on sales of fixed annuities.
The company is reporting $97 million in net income for the latest quarter on $975 million in revenue, up from $82 million in net income on $756 million in revenue for the second quarter of 2002.
Nationwide sells individual annuities, institutional investment services and life insurance.
The individual annuity unit generated $48 million in operating income on $354 million in operating revenue, compared with $54 million in operating income on $306 million in operating revenue for the second quarter of 2002.
Nationwide’s annuity accounts attracted $597 million more cash during the quarter than they lost, up 17% from the net flow for the comparable quarter in 2002.
Sales of variable annuities increased 11%, to $1.3 billion, but sales of fixed annuities fell 33%, to $467 million.