Globalization is changing the face of all businesses, including financial services companies. For example, companies based in France, the Netherlands, and Switzerland are expanding to U.S. markets. Global giants like AXA-UAP, ING Group, Aegon, Zurich Insurance, and Swiss Re all have major U.S. holdings. U.S.-based insurance companies are going abroad very aggressively. In response to the challenges of an increasingly global marketplace, last year we formed and capitalized Nationwide Global Holdings to lead our international growth.
Global expansion allows alternative growth opportunities for the U.S. financial services industry.
With global expansion comes increased opportunities to protect businesses and personal wealth. Growth in China, for example, has produced an emerging middle class. This results in the accumulation of private property which needs to be protected against loss. In 1998, Nationwide opened an office in Hong Kong and started a company in Bermuda to sell financial products to non-U.S. citizens. We then acquired PanEuroLife of Luxembourg to serve as the hub of our operations European operations.