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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: JANUARY 20, 2000 COMMISSION FILE NO. 1-12785
NATIONWIDE FINANCIAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 31-1486870
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
ONE NATIONWIDE PLAZA
COLUMBUS, OHIO 43215
(614) 249-7111
(Address, including zip code, and telephone number,
including area code, of Registrant's principal executive offices)
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ITEM 5. OTHER EVENTS.
On January 19, 2000 Nationwide Financial Services, Inc. (NFS)
announced plans to launch a direct marketing and support model at
its Nationwide Retirement Solutions subsidiary.
NFS's news release issued on January 19, 2000 regarding this
announcement is attached as an exhibit to this report and is
incorporated herein by reference.
The information contained in this Current Report on Form 8-K
contains certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 with respect
to the results of operations and businesses of the Company. These
forward-looking statements involve certain risks and
uncertainties. Factors that may cause actual results to differ
materially from those contemplated or projected, forecast,
estimated or budgeted in such forward looking statements include,
among others, the following possibilities: (i) Nationwide
Corporation's control of the Company through its beneficial
ownership of approximately 97.8% of the combined voting power of
all the outstanding common stock and approximately 81.5% of the
economic interest in the Company; (ii) the Company's primary
reliance, as a holding company, on dividends from its subsidiaries
to meet debt payment obligations and the applicable regulatory
restrictions on the ability of the Company's subsidiaries to pay
such dividends; (iii) the potential impact on the Company's
reported net income that could result from the adoption of certain
accounting standards issued by the FASB; (iv) tax law changes
impacting the tax treatment of life insurance and investment
products; (v) heightened competition, including specifically the
intensification of price competition, the entry of new competitors
and the development of new products by new and existing
competitors; (vi) adverse state and federal legislation and
regulation, including limitations on premium levels, increases in
minimum capital and reserves, and other financial viability
requirements; (vii) failure to expand distribution channels in
order to obtain new customers or failure to retain existing
customers; (viii) inability to carry out marketing and sales
plans, including, among others, changes to certain products and
acceptance of the revised products in the market; (ix) changes in
interest rates and the capital markets causing a reduction of
investment income or asset fees, reduction in the value of the
Company's investment portfolio or a reduction in the demand for
the Company's products; (x) general economic and business
conditions which are less favorable than expected; (xi)
unanticipated changes in industry trends and ratings assigned by
nationally recognized statistical rating organizations or A.M.
Best Company, Inc.; (xii) inaccuracies in assumptions regarding
future persistency, mortality, morbidity and interest rates used
in calculating reserve amounts and (xiii) failure of the Company
or its significant business partners and vendors to identify and
correct all non-Year 2000 compliant systems or to develop and
execute adequate contingency plans.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
Exhibit 99 News release of Nationwide Financial Services, Inc.
dated January 19, 2000
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NATIONWIDE FINANCIAL SERVICES, INC.
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(Registrant)
Date: January 20, 2000 /s/ Mark R. Thresher
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Mark R. Thresher, Senior Vice President - Finance
(Chief Accounting Officer)
EXHIBIT INDEX
Exhibit No. Description
99 News release of Nationwide Financial Services, Inc. dated January
19, 2000
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Exhibit 99
MEDIA CONTACTS:
- ---------------
Bryan Haviland
Nationwide Financial
(614) 677-7767
Jeff Botti
Nationwide Financial
(614) 249-6339
FOR IMMEDIATE RELEASE
January 19, 2000
Nationwide Financial Subsidiary Launches Innovative Service Model For
Public Sector Group Retirement Market
Nationwide Retirement Solutions Customers Will Benefit
from Greater Access, Choice and Education Services
COLUMBUS, Ohio - Nationwide Financial (NYSE: NFS) today announced plans to
launch a direct marketing and support model in February at its Nationwide
Retirement Solutions subsidiary that will enable participants of public sector
sponsored retirement programs to conduct more transactions via voice technology
and the Internet. Coinciding with this move will be enhanced support for plan
sponsors, as well as a repositioning of the company's field representatives to
focus on retirement education.
"Our public sector customers are demanding more choices in how they can access
our services, including online enrollment and self-service transactions," said
Joseph J. Gasper, president and chief operating officer of Nationwide Financial.
"The convergence of increased customer demand for education and services and the
rapid development of voice response and e-commerce technologies are driving this
move.
"This transformation of our sales force and implementation of our direct and
e-commerce solutions provide a more efficient, seamless solution to satisfy our
customers' need for immediate access and service. This new model also enables us
to take advantage of the significant growth opportunities that exist in the
public sector marketplace."
Education, 24-Hour Service Access Provides Greater Benefits to Customers
The new initiatives will provide Nationwide Retirement Solutions
customers with a variety of benefits, including:
o A greater focus on participant education, with retirement specialists and
online education available to provide information and answer questions
o Enhanced participant servicing through increased numbers of retirement
specialists available through the company's toll-free customer service
number
o Enhanced employer servicing through the implementation of a new employer
servicing unit and account executives
-more-
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NATIONWIDE RETIREMENT SOLUTIONS ANNOUNCES NEW INITIATIVES - PAGE 2
o Web site improvements phased in over the course of 2000, including
participant enrollment, ad hoc employer reporting, site customization, and
education and consulting capabilities, which will make the Nationwide web
site the most robust in the industry
As a result of the company's new focus on the group marketplace, the company
will reduce its national sales force of 400 representatives. In turn, a new
organization will be built which includes 160 field representatives and an
expanded internal sales and service team for both employers and participants.
Duane Meek, president of Nationwide Retirement Solutions explained that the
company will exit its individual business, including the K-12/403(b) market.
Meek said, "This new business model is our response to better serve the evolving
needs of the public sector and non-profit retirement plan market. Although
making field sales force reductions was a difficult decision, by streamlining
our processes and changing our approach to sales and service we will enhance our
ability to grow and improve the way we take care of our customers.
"Our customers demand greater access to customized information, whenever they
want it. The technologies we are employing will enable us to build upon our
service leadership, and will provide better value to the customer as well."
Nationwide Retirement Solutions was formed in 1998 from the merger of Public
Employees Benefits Services Corporation (PEBSCO) and National Education
Association Valuebuilder Investor Services (NEAVIS). Previously, PEBSCO and
NEAVIS were independently managed and operated subsidiaries of Nationwide
Financial. PEBSCO served the public sector, and NEAVIS served the non-profit and
education markets, providing employer-sponsored retirement savings plans.
The new company, Nationwide Retirement Solutions, was created to reflect its
broad range of retirement services and to expand and compete in new markets.
Nationwide Retirement Solutions and its affiliates serve more than 10,000 public
sector employers representing more than one million participants throughout the
United States. The company administers more than $24 billion in governmental
plan assets.
Nationwide Financial are part of the Nationwide, a Columbus, Ohio-based Fortune
500 company and one of the country's largest diversified insurance and financial
services organizations.
# # #
Securities are offered through Nationwide Investment Services
Corporation, member NASD. In Michigan only, Nationwide Investment Svcs.
Corporation.
