A.M. Best Upgrades Ratings of Nationwide Insurance Company of Florida

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has upgraded the financial strength rating (FSR) to B+ (Good) from B (Fair) and the issuer credit rating (ICR) to “bbb-” from “bb+” of Nationwide Insurance Company of Florida (NICOF) (Columbus, OH). The outlook for both ratings has been revised to stable from positive.

The ratings and outlook for NICOF reflect its solid risk-adjusted capitalization and improved and profitable operating performance in recent years. Through numerous risk management initiatives, NICOF has significantly reduced its exposures and concentrations of risk in Florida in recent years. NICOF also benefits from implicit and explicit support from its parent, Nationwide Mutual Insurance Company (Nationwide), through platforms and processes such as catastrophe reinsurance coverage, enterprise risk management and common infrastructure and distribution channels.

Partially offsetting these positive rating factors is the company’s limited business profile as a single-state, single-product writer. This leaves NICOF subject to potential adverse regulatory and judicial decisions, as well as economic conditions. In addition, as a Florida writer, the company will always be at risk of catastrophic weather events.

Regarding future rating movement, a longer term profitable trend in underwriting performance and continued strong risk-adjusted capitalization could lead to a further upgrade of the ratings. Conversely, any deterioration in operating performance could result in negative rating pressure. Additionally, any change in the level of support or integration with Nationwide could lead to consideration of rating movement.

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150811005992/en/

A.M. Best
Raymond Thomson, ARe, ARM
Senior Financial Analyst
(908) 439-2200, ext. 5621
[email protected]
or
Greg Williams
Assistant Vice President
(908) 439-2200, ext. 5815
[email protected]
or
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
[email protected]
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
[email protected]

Source: A.M. Best

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