Nationwide Mutual Insurance Co. has released their earnings for the first half of 2011. The acclaimed insurance company posted profits just shy of $400 million, a marked decline from last year in which the company earned over a billion. Profit diminished by 48% in just the first quarter, a fact the insurer is quick to blame on the violent storms and other natural disasters wreaking havoc earlier this year. The company has also released its earnings for the second quarter, reporting further losses due to weather related issues.
The previous year was notorious for its frequency of calamitous storms and natural disasters. These occurrences seemed have bled into this year as the first quarter was wracked with intense and destructive activity. Much of the Southeastern U.S. is still struggling to recover from the storms of late April, an effort that could take years to accomplish. Nationwide is among the myriad of insurance companies that have reported losses due to these and other storms that have occurred throughout the nation.
Speaking with reporters, Nationwide CEO, Steve Rasmusen, says that the company is taking a hard look at emerging weather trends and will be considering these trends in pricing future insurance products. Thus far, Nationwide’s strongest division lies in the financial services sector, which pulled in more than $400 million in profit in the first quarter of this year.