Northwestern Mutual Declares Industry-Leading Dividends
October 30, 2014 by Northwestern Mutual
Northwestern Mutual will share its success with its policy owners in 2015 through an estimated $5.5 billion dividend payout. It will be a record payout for the financial security leader and is expected to exceed its estimated 2014 payout by $300 million.
“This dividend result is great news for our policy owners,” said John Schlifske, Northwestern Mutual chairman and chief executive officer. “It shows again why more people put their trust in Northwestern Mutual than in any other life insurance company.”1
With its 2015 dividend payout, the company expects to again lead the industry in total life and disability insurance dividends paid.
“Our dividend payout is the primary reason why we deliver the best long-term product value of any company in our industry,” said Schlifske. “Northwestern Mutual is paying record dividends on product lines in which many companies pay no dividends at all.”
Record payouts on numerous products
While about 90 percent of the $5.5 billion payout will be paid on whole life insurance, Northwestern Mutual also expects to pay record dividends on several other product lines. This includes $320 million on disability insurance, $150 million on term life insurance and $105 million on variable life insurance.
In addition, Northwestern Mutual will pay $45 million on its annuity product line, including its new suite of Portfolio Income Annuities.
In 2015, the company’s dividend scale interest rate on unborrowed funds for most traditional permanent life insurance will be 5.60 percent.
Most dividends used to buy more insurance
Northwestern Mutual policy owners have several options for using dividends, including taking them in cash. Most policy owners, however, recognize the excellent value provided by Northwestern Mutual and use their dividends to buy more insurance.2
While dividends are not guaranteed, Northwestern Mutual has made a dividend payout every year since 1872. 3
About Northwestern Mutual
Northwestern Mutual has been helping families and businesses achieve financial security for nearly 160 years. Our financial representatives build relationships with clients through a distinctive planning approach that integrates risk management with wealth accumulation, preservation and distribution. With more than $217 billion in assets, $26 billion in revenues and more than $1.5 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to more than 4.2 million people who rely on us for insurance and investment solutions, including life, disability and long-term care insurance; annuities; trust services; mutual funds; and investment advisory products and services.
Northwestern Mutual is the marketing name forThe Northwestern Mutual Life Insurance Company, Milwaukee, WI, and its subsidiaries. Northwestern Mutual and its subsidiaries offer a comprehensive approach to financial security solutions including: life insurance, long-term care insurance, disability income insurance, annuities, investment products, and advisory products and services. Subsidiaries includeNorthwestern Mutual Investment Services, LLC, broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company, limited purpose federal savings bank; Northwestern Long Term Care Insurance Company; and Russell Investments.
1 Northwestern Mutual has the nation’s largest market share for individually owned life insurance policies based on the most current sales data provided by the Life Insurance Market Research Association.
2 Nearly 80 percent of the company’s 3.7 million traditional permanent life policies are expected to use their 2015 dividend to purchase additional insurance.
3 Dividends may be declared and credited, at the Board of Trustees’ discretion, when current experience in investment earnings, mortality, morbidity and expenses is more favorable than the original assumptions used to establish policy premiums. Future dividends are not guaranteed.
