Nationwide reported 2022 earnings results March 2, reflecting one of the strongest performances in the company's 96-year history.
These results were achieved while paying nearly $19 billion in claims and benefits to its members in a year marked by high inflation, rising interest rates, volatile equity markets and severe weather.
Another Year for the Record Books
Total sales for the Columbus, OH-based mutual insurance and financial services company were a record $57 billion, $4 billion over 2021---which was also a record year.
Nationwide's key measure of profitability---net operating income---was $1.4 billion. Total adjusted capital grew to $24 billion in 2022, up from $21.9 billion in 2021.
"Whether they were facing volatility in the markets or extreme weather, our members and partners knew they could count on Nationwide to deliver on our promise of protection during a turbulent 2022," said Nationwide CEO Kirt Walker. "The solutions and experience Nationwide provides clearly resonated with our customers in 2022---leading to our best year yet for total sales and premiums. It was also one of our most profitable years as we continued to focus on our risk management and underwriting disciplines while responding to inflation and financial market volatility."
A Closer Look at the Results
2022 earnings were driven mainly by a diverse portfolio of profitable financial services products, with the company's property & casualty business performing at par with industry combined ratios.
"In 2022, our industry experienced uncertain economic conditions," said Nationwide CFO Tim Frommeyer. "Supply-demand imbalances in the U.S. economy led to many challenges, including historic increases in inflation, broad-based compression in the U.S. economy and a looming recession. The impact on our industries---both financial services and property and casualty---has been extreme as seen in the cost of settling customer claims and in the impact of financial market losses on our members' account values.
"Nationwide achieved its largest year of growth while maintaining capital at a AAA level," Frommeyer continued. "Our results were driven by a diverse portfolio of businesses, strong risk-management practices and an ability to shift quickly in complex markets. These differentiators are enabled by our mutual structure, strong brand and our talented associates who take great pride in our performance and providing extraordinary care to our partners and members."
For more highlights, check out the 2022 Annual Report.
Source: Nationwide
Abby Andrews