NATIONWIDE CUTS BACK

The Nationwide Mutual Insurance Company has announced it is taking steps to reduce its property exposure in Florida. After these reductions, Nationwide said it will continue to serve more than 570,000 policies in Florida, including 240,000 homeowners. Nationwide will increase its focus on auto lines, commercial casualty lines and financial services offerings.

“As we continue to analyze our business strategy, it has become increasingly apparent that we are not comfortable with our current exposure in the Florida property market. While these are difficult decisions, we have an obligation to act in a responsible and thoughtful manner to ensure long-term stability for Nationwide policyholders in Florida and across the country,” Jeff Rommel, regional vice president of Florida Operations, said. “These efforts will not impact Nationwide policyholders in Florida this hurricane season.”

Nationwide Insurance Company of Florida will reduce its personal and commercial lines exposure in Florida by taking the following actions: It will not renew approximately 35,000 homeowners and 4,800 mobile home policies beginning March 1, 2006.

Nationwide will continue to serve more than 240,000 personal lines property policyholders after these reductions are implemented. It will no longer write mobile home policies or new personal property policies beginning Sept. 1, 2005. It will not renew approximately 12,000 commercial policies primarily consisting of condominiums, apartments and rental properties beginning March 1, 2006.

Nationwide will work with agents to move impacted policies to other property carriers over the next several months.