205695--3/2/2010--NATIONWIDE_LIFE_INSURANCE

related topics

{loan, real, estate}

{regulation, change, law}

{condition, economic, financial}

{loss, insurance, financial}

{tax, income, asset}

{capital, credit, financial}

{competitive, industry, competition}

{financial, litigation, operation}

{product, liability, claim}

{system, service, information}

Adverse capital and credit market conditions may significantly affect the Company s ability to meet liquidity needs and impact capital position. Difficult conditions in the economy generally may materially adversely affect the Company s business and results of operations, and these conditions may not improve in the near future. There can be no assurance that actions of the U.S. federal government, Federal Reserve and other governmental and regulatory bodies for the purpose of stabilizing the financial markets and stimulating the economy will achieve the intended effect. The impairment of other financial institutions could adversely affect the Company. Rising unemployment rates could have a material impact on the Company s business. The Company is exposed to significant financial and capital markets risk, which may adversely affect the Company s results of operations, financial condition and liquidity, and the Company s net investment income can vary from period to period. Some of the Company s investments are relatively illiquid and are in asset classes that have been experiencing significant market valuation fluctuations. The Company has exposure to mortgage-backed securities, which could cause declines in its investment portfolio. Defaults on commercial mortgage loans and volatility in performance may adversely affect the Company s results of operations and financial condition. The Company s investments are reflected within the financial statements utilizing different accounting bases. Accordingly, the Company may not have recognized differences, which may be significant, between cost and fair value in the Company s financial statements. The Company s valuation of fixed maturity, equity and trading securities may include methodologies, estimations and assumptions which are subject to differing interpretations and could result in changes to investment valuations that may materially adversely affect the Company s results of operations or financial condition. The determination of the amount of allowances and impairments taken on the Company s investments and the valuation allowance on the deferred tax asset are judgmental and could materially impact the Company s results of operations or financial position. Deterioration in the public debt and equity markets could lead to additional investment losses. Certain changes in accounting and/or financial reporting standards issued by the FASB, the SEC or other standard-setting bodies could have a material adverse impact on the Company s financial position or results of operations. A downgrade or potential downgrade in the Company s financial strength or credit ratings could result in a loss of business and adversely affect the Company s financial condition and results of operations. If the Company s business does not perform well or if actual experience versus estimates used in valuing and amortizing deferred policy acquisition costs (DAC) varies significantly, the Company may be required to accelerate the amortization of DAC, which could adversely affect the Company s results of operations or financial condition. Deviations from assumptions regarding future persistency, mortality, morbidity and interest rates used in calculating reserve amounts could have a material adverse impact on the Company s results of operations or financial condition. NLIC and NLAIC are subject to extensive regulations designed to benefit or protect policyholders rather than the Company. Certain changes in federal laws and regulations may adversely affect the Company s financial position or results of operations. Litigation or regulatory actions in connection with late trading, market timing, compensation and bidding arrangements, unsuitable sales and replacements, the use of finite reinsurance and/or other sales practices could have a material adverse impact on the Company. The continued threat of terrorism and ongoing military and other actions may result in decreases in the Company s consolidated results of operations, revenue and assets under management and may adversely impact the Company s consolidated investment portfolio. The Company operates in a highly competitive industry, which can significantly impact operating results. Unauthorized data access and other security breaches could have an adverse impact on the Company s business and reputation. Changes in tax laws could adversely affect the Company and its subsidiaries.

Full 10-K form ▸

205695--3/2/2010--NATIONWIDE_LIFE_INSURANCE_CO