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Nationwide Financial reports fall in Q1 earnings

Nationwide Financial Services has reported a net income of $44.5 million for the first quarter of 2008, compared with a net income of $208.3 million for the same quarter of 2007.

For the period, net operating earnings reduced to $131.5 million from $175.8 million for the comparable period of 2007.

According to the company, first-quarter 2008 results were negatively impacted by several items, including adverse mortality experience in the individual protection segment and losses on structured products and alternative investments stemming directly from the adverse capital market environment, all of which reduced net operating earnings by approximately $22 to $24 million.

Net operating revenues, defined as operating revenues net of interest credited, decreased 5% due to lower net investment income compared to the 2007 first-quarter. Total revenues declined 21% from the corresponding quarter in 2007 primarily driven by higher realized investment losses.

Jerry Jurgensen, CEO of Nationwide Financial Services, said: Although adversity in the capital markets and a weakening economy combined to create a difficult first quarter operating environment, Nationwide Financial’s core business performance remained fundamentally sound.