1. Nationwide Financial Services
Sub-prime and Alt-A Disclosure
As of June 30, 2008
Recent market events have led to requests for more specific information concerning securities containing Sub-
prime and Alt-A collateral. In support of the company’s commitment to transparency, the following table
discloses NFS’ exposure to Sub-prime and Alt-A collateral. Additional information concerning the company’s
investment activity can be found in the company’s quarterly report on Form 10-Q, which is available on the
investor relations section of the company’s web site at www.nationwide.com (upon filing).
The Company’s investments in securities that contain Alt-A and Sub-prime collateral are predominantly highly
rated. As of June 30, 2008, 99% and 83% of securities containing Alt-A and Sub-prime collateral, respectively,
were rated AA or better. In addition, 58% and 70% of Alt-A and Sub-prime collateral, respectively, was
originated in 2005 or earlier.
The following tables summarize the distribution by collateral classification, rating and origination year,
respectively, of the Company’s general account mortgage-backed and asset-backed securities as of June 30,
2008:
% of
estimated
fair value
Estimated
(dollars in millions) fair value total
Government agency $ 3,727.8 35.0
Prime 1,369.8 12.8
Alt-A 2,042.3 19.1
Sub-prime 713.1 6.7
Non-residential mortgage collateral 2,814.3 26.4
Total $ 10,667.3 100.0
Alt-A Sub-prime
%of %of
estimated estimated
Estimated fair value Estimated fair value
(dollars in millions) fair value total fair value total
$ 2,006.8 98.3 $ 438.3 61.5
AAA
18.4 0.9 156.5 21.9
AA
8.8 0.4 71.9 10.1
A
- - 16.0 2.2
BBB
8.3 0.4 30.4 4.3
BB and below
$ 2,042.3 100.0 $ 713.1 100.0
Total
Alt-A Sub-prime
%of %of
estimated estimated
Estimated fair value Estimated fair value
(dollars in millions) fair value total fair value total
$ 530.8 26.0 $ 412.5 57.8
Pre-2005
650.2 31.8 87.8 12.3
2005
471.6 23.1 185.3 26.0
2006
389.7 19.1 27.5 3.9
2007
$ 2,042.3 100.0 $ 713.1 100.0
Total