Nationwide Indemnity strengthened reserves in the third quarter, which resulted in a reduction of surplus by approximately $300 million, which contributed to the dramatic reduction in risk-adjusted capitalization. The company will remain under review with negative implications pending discussions with management on the restoration of its capitalization.
Nationwide Indemnity is a wholly owned subsidiary of Nationwide Mutual Insurance Co. (Nationwide) (Columbus, Ohio), and was established to run off Nationwide’s discontinued operations, including indemnity claims.