INScompanies Blog

Credit Union members vote to approve merger

Columbus, Ohio —Nationwide Bank and Nationwide Federal Credit Union (NFCU) today announced that the merger of the two organizations has been approved by NFCU membership. NFCU members approved the merger by a majority vote of 88.9 percent. In June, Nationwide Bank and NFCU announced their intention to seek member approval for a merger of the two organizations.

As previously announced, Nationwide Bank, a subsidiary of Nationwide Financial Services Inc., (NYSE:NFS), will pay $79 million for the members’ ownership interest in the credit union. These funds will be credited to member accounts on a pro-rata basis according to the deposit account balances as of March 31, 2006. The funding will take place after the transaction is complete, which is anticipated to happen in early 2007.

The transaction is subject to certification of the vote by the National Credit Union Administration and final regulatory approval from the Federal Deposit Insurance Corporation and the Office of Thrift Supervision.

“We’re pleased that the NFCU membership has approved this merger and look forward to serving these valued customers,” said Anne Arvia, Nationwide Bank president. “Nationwide Bank has an opportunity to create a unique customer experience, and NFCU’s history of exemplary service is key to serving customers.”

Nationwide will support the needs of its customers by complementing its insurance, mortgage, investment, and retirement plan products with banking capabilities through Nationwide Bank. Nationwide’s resources and wide customer base, combined with the credit union’s foundation of customer service, creates one strong financial institution.

 “All along it was most important that the decision to merge be in the hands of the people who own this credit union – our members,” said Paula Edwards, president of NFCU. “The NFCU Board and I are very pleased that our membership has voted for this merger and we look forward to the opportunity that lies ahead as part of the Nationwide Bank.”

About Nationwide Federal Credit Union
Nationwide Federal Credit Union was established in 1951. NFCU is the largest credit union in Central Ohio ending 2005 with more than $523 million in assets. Serving more than 44,000 members, NFCU serves Nationwide associates, retirees, agents and their immediate family and household members. NFCU ranks as the fourth largest credit union in Ohio. 1

About Nationwide Bank
In April 2006, Nationwide Financial Services, Inc. received approval from U.S. regulators to expand the powers of its wholly-owned limited purpose thrift. Nationwide Bank will provide a full range of consumer banking products and services expanding the capabilities of Nationwide to serve its customers.

About Nationwide Financial®
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers invest and protect their long-term assets, and offers retirement plans and services through both public- and private-sector employers.2
It’s part of the Nationwide group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 98 on the Fortune 100 based on 2005 revenue.3  For more information, visit www.nationwide.com

1  as reported by CUNA and TFP
2 Nationwide Investment Services Corporation, member NASD. In Mi only, Nationwide Investment Svcs.
Corporation.
3 Fortune Magazine, April 2006

Nationwide and the Nationwide Framemark are federally registered service marks of Nationwide Mutual Insurance Company. On Your Side is a service mark of Nationwide Mutual Insurance Company. 

Media Contacts:
Credit Union
Eric Hardgrove 614-677-8516
hardgre@nationwide.com
Nationwide Bank
Investments Retirement Insurance nationwide.com
One Nationwide Plaza Columbus, OH 43215-2220

Carah Brody 614-677-0275
brodyc@nationwide.com

Nationwide Better Health first company to integrate health and productivity services to meet employers’ and employees’ specific needs

Columbus, Ohio — Nationwide Mutual Insurance Company today announced the launch of Nationwide Better HealthSM. Nationwide Better Health is the first company to bring together and truly integrate the best collection of health and productivity services that work together, or independently, to meet a wide range of employers’ and employees’ health and absence management needs. These services are integrated in a unique way to help employers take a holistic approach to their employees’ health care needs and reduce their rising health care costs.

“We bring a comprehensive approach to employees’ health and well-being,” said Nationwide Better Health President Holly Snyder. “We provide employers with integrated services for a wide range of health care needs to improve both the health and well-being of their employees and the financial health of their companies. It’s a simple truth that healthier employees are not only more productive but less costly to insure.”

Nationwide Better Health offers a unique grouping of offerings under two main categories:

- Better For LifeSM: disease, medical (case and utilization) and maternity management, and health promotion
- Better For WorkSM: absence, leave and disability management

Nationwide Better Health introduces the industry’s only “high touch” integrated disease and disability management offering. Unlike traditional disease and disability management programs that operate in silos, Nationwide Better Health breaks down the barriers between these programs and makes them work together.

The key to this offering is the ability of Nationwide Better Health to intervene at the disability claim intake process. The program identifies individual needs and provides the best means to support behavior change by providing these individuals with the tools and information they need to return to work quicker and make better health decisions.

A team of nurses, physicians, Ph.D.’s and other experts work together to make sure the right employees are in the right programs at the right time – these professionals emphasize disease prevention, early detection, education and accountability. A dedicated health coach then provides employees with personalized guidance and support, as well as access to specialized health care services to improve and maintain their health.

The results: quicker and sustainable returns to work, reduced absenteeism, healthier employees, and a lower likelihood of additional health care costs. In addition, combining these offerings in one seamless package eliminates system duplications and inefficiencies that drive up costs, and provides employees with coordinated, personalized services.

Health care costs are rising eight to 10 percent a year and are expected to soar to 20 percent of America’s gross domestic product by 2020. As the population ages, the average retirement age is predicted to reach the mid-70s by the next decade, driving employer health care costs even higher. These scenarios underscore employers’ urgent needs to achieve cost control.

Nationwide Better Health was formed by combining the expertise and resources of GatesMcDonald®, a leader in absence and disability management, and FutureHealth®, a leader in disease, population health and medical management. Both companies now operate under the Nationwide Better Health brand name. Nationwide Better Health also provides employers access to additional ancillary products (supplemental health benefits and financial offerings) from its parent company, Nationwide, along with services from key strategic partners to bring the best package of health and productivity offerings available today.

Nationwide Better Health (through its ownership of GatesMcDonald and FutureHealth) has documented measurable results in its program’s efforts to reduce costs. Studies of employee participants demonstrate a substantial rate of compliance with their physician’s treatment plans (asthma – 95 percent, cardiovascular disease – 91 percent and diabetes – 91 percent), which has a measurable impact on employee health and productivity. Achieving compliance, particularly with lifestyle changes necessary to halt the progression of these chronic diseases, is a difficult challenge and a major problem for many patients. With these kinds of successes, we’ve reduced average disability durations based on national guidelines by an additional 10-25 percent and have achieved significant medical cost savings for employers.

Nationwide Better Health, headquartered in Columbus, Ohio, with an office location in Hunt Valley, Maryland, is already working with some of the nation’s leading companies and millions of their employees. The offering is backed by the reach and power of Nationwide, one of the largest diversified insurance and financial companies in the world.

The formation of Nationwide Better Health is central to Nationwide’s commitment to be a force in the fast-growing, multi-billion dollar health and productivity market and supports the company’s commitment to helping people protect and manage their most important assets, including their health.

About Nationwide Better Health
Nationwide Better Health provides a better approach to helping employers plan their health and absence management programs more effectively, reduce health care costs and increase productivity. Nationwide, based in Columbus, Ohio, is one of the largest diversified insurance and financial services organizations in the world, with more than $157 billion in assets. Nationwide ranks #98 on the Fortune 100 list. The company provides a full range of insurance, financial and health management services. The Nationwide companies include the country’s seventh-largest property/casualty, the fourth-largest homeowners, the sixth-largest auto insurance group, and the country’s largest farm owners’ insurer. Nationwide Life Insurance Company, the major subsidiary of Nationwide Financial, ranks 11th in assets according to A.M. Best. For more information, visit www.nationwide.com/betterhealth or call 866-404-NWBH (6924).

The Nationwide framework and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Nationwide Better Health is a service mark of Nationwide Mutual Insurance Company.

Contacts:
Terri Wearsch (614) 249-5755
wearsct@nationwide.com
Eric Hardgrove (614) 677-8516
hardgre@nationwide.com

New survey shows boat enthusiasts willing to pay to play

Columbus, Ohio — Boat owners say high gas prices won’t keep them off the water this summer, but will have them easing off the throttle more often, according to a new survey by Nationwide Mutual Insurance.

Like all motorists, boat enthusiasts are caught in the wake of high fuel prices – especially those who pay a premium to gas up at marinas. However, boat owners indicate they are willing to “pay to play” saying gas prices would have to nearly double before they change their lifestyle.

“When talking with our customers about boating we learned that while they’re concerned about rising fuel prices, the passion they have for their boats override those concerns,” said Greg Blanchard, Nationwide’s vice president of Specialty Products. “What they say is that they’ll look to cut costs elsewhere.”

Nationwide’s survey conducted by The Brandware Group, Inc. of 2,544 power boat, bass boat, motorcycle and ATV owners shows that two-thirds of boat owners indicated high fuel prices would not cause them to use their boats less often. In fact, boat owners are willing to pay about $2.70 more per gallon for fuel before they will consider docking their boats.

According to the survey, boat owners will be on the water just as often as last summer – about 20 times – but expect to run their engines about 25 minutes less per trip.

It’s the passion for their boats and lifestyle that has enthusiasts willing to pay higher fuel costs. Boat owners reported they spend 28 percent of their total leisure time on the water and 36 percent of boat owners consider their time boating more important than all other leisure time.

Boat owners surveyed have been engaged in the activity for more than 17 years and have owned their current boat for about 6 years. About 80 percent plan to continue boating when they retire. Over the past five years, enthusiasts invested $6,848 on improvements and accessories for their power boats and $5,208 for their bass boats.

With high fuel costs putting a strain on boat owners’ wallets, they should make sure they have the right protection against the unexpected so they don’t get hit with burdensome repair or replacement costs.

“Protecting your investments by making sure they are insured to value is an important step in protecting your lifestyle,” said Blanchard. “The money crunch really hits home if something happens and you don’t have adequate insurance to repair or replace your baby.”

According to the survey, one in five power boat owners and one in three bass boat owners do not have insurance on their boat. Of those with insurance, about 35 percent don’t have liability coverage. About 40 percent of power boat owners and 53 percent of bass boat owners don’t have collision coverage. About one in five power boat owners and a quarter of all bass boat owners would rather take their chances than pay to fully insure their boats.

Blanchard suggests these five tips to help boaters lessen the strain on their wallets:

1. Go with the flow. Where possible, catch a lift when the tide is going your way; avoid going against the tide.
2. Drop anchor at sea. Spend time picnicking, swimming and sun bathing instead of running your motor.
3. Clean the bottom of your boat. The extra friction from barnacle, plant and debris build-up burns more fuel.
4. Stay light. Remove extra chairs, coolers and barbeques to reduce the amount of engine usage.
5. Be prepared for the unexpected with proper boating insurance. Storm damage, boating accidents and emergencies can be expensive if you’re not covered.

Nationwide, based in Columbus, Ohio, is one of the largest diversified insurance and financial services organizations in the world, with more than $158 billion in assets. Nationwide ranks #98 on the Fortune 100 list. The company provides a full range of insurance and financial services, including auto, motorcycle, boat, homeowners, life, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions and long-term savings plans. The Nationwide companies include the country’s seventh-largest property/casualty, the fourth-largest homeowners, the sixth-largest auto insurance group and the country’s largest farm owners insurer. Nationwide Life Insurance Company, the major subsidiary of Nationwide Financial, ranks 11th in assets according to A.M. Best. For more information, visit www.nationwide.com.
Nationwide and the Nationwide Framework are federally registered service marks of Nationwide Mutual Insurance Company. On Your Side is a service mark of Nationwide Mutual Insurance Company.

Contacts:
Elizabeth Stelzer (614) 249-1025
stelzee@nationwide.com
Charley Gillespie (614) 249-5701
gillesc1@nationwide.com
Investments Retirement Insurance nationwide.com One Nationwide Plaza Columbus, OH 43215-2220