Posted:
Sunday, February 15th, 2009
Category:
Insurance Training
Nationwide Financial Services, Inc. recently sold the last of its Class A shares to Nationwide Mutual Insurance, making the company a subsidiary of Nationwide Mutual Insurance. Nationwide Financial Services was a publicly traded retirement savings company, and was bought out for roughly two and a half billion dollars. Nationwide Mutual Insurance, a diversified insurance company, purchased each share for roughly fifty dollars, and bought roughly forty-six million of them.
Before the filing on October thirty-first, Nationwide Mutual Insurance owned all the class B shares, or about a sixty-five percent equity stake. It also held around ninety-five percent of the combined voting power of the Nationwide Financial Services shareholders. The deal was approved by government authorities, and was approved by Nationwide Financial shareholders on Wednesday, January twenty-first. The shares are increasing about five dollars a share over their original proposal of forty-seven dollars in March 2008. The vote to approve the transaction was completed on December thirty-first. This transaction was approved by a special committee that was not affiliated with Nationwide Financial Services to evaluate the proposal, and then approved by the Nationwide Financial Services’ board of directors.
Nationwide Mutual is based in Columbus, Ohio, and is one of the largest, most diverse insurance and finance groups in the world, and ranks number ninety-eight on the Fortune 500. It features a wide variety of insurance and financial services, which includes automotive, motorcycle, boat, home, life, and commercial insurances, as well as administrative services, annuities, mortgages, mutual funds, pensions, long-term savings, health, and productivity services. The company is renowned for its incredibly diverse range of services, and has maintained a reputation as one of the largest and most successful financial firms in existence.
Nationwide Mutual has been in business over eighty years, but began as Farm Bureau Mutual. It began as an automobile insurance company, and was incorporated in 1925. In 1955, it changed its name to Nationwide Insurance, and expanded into Oregon, then 19 other states. Over the years it has flourished into one of the most powerful insurance firms in the country, and today has branches across the country. It has roughly thirty-five thousand employees, although now that it has acquired Nationwide Financial Services, that number has further increased. This combination of insurance and financial services is guaranteed to be a tough competitor in the growing financial crisis, and these two companies have joined to make a very solid one.
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