Nationwide returns to profitability in 2009 [The Columbus Dispatch, Ohio]

Apr. 1--Insurance giant Nationwide showed dramatic improvement in 2009, with a return to profitability and an increase in revenue, the company said today.

The Columbus-based insurance and financial services company reported $716 million in profit for the year, compared to a $342 million loss for the prior year.

Revenue was $20.8 billion, up from 19.8 billion.

Nationwide's financial performance rebounded significantly in spite of the economic turbulence prevalent throughout 2009, said CEO Stephen S. Rasmussen, in a statement.

The company ended 2009 with $15.1 billion in policyholder equity, up from $12.9 billion the previous year.

Looking at specific segments, Nationwides property and casualty insurance business reported operating income of $534 million compared with a loss of $311 million for the prior year.

The improvement was largely tied to the weather, and the reduction in policyholder damage attributed to natural disasters. Pre-tax catastrophe claims were $509 million, down from $1.2 billion the prior year when hurricanes Gustav and Ike represented more than half of claims.

After the hurricanes, Nationwide took steps to lower its exposure to residential and commercial real estate.

The company's financial services division reported operating income of $514 million, up from $86 million the prior year. This was tied to a general improvement in the country's financial climate last year and a reduction in the company's expenses.

Nationwide Bank customer deposits totaled $2.4 billion, up from $1.5 billion the prior year.

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