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Record Dividend Payout Set for Northwestern Mutual Policyowners

Insurance Forums Staff

Northwestern Mutual will once again break its own industry-leading dividend payout record with an expected $6.8 billion to be delivered to its policyowners in 2023, the company announced today.

The company has paid a dividend every year for more than 150 years, totaling over $150 billion.

The 2023 dividend is expected to be the highest in company history across four of Northwestern Mutual’s product areas: whole life insurance, term insurance, disability income insurance and annuities. The company claims its record-setting life insurance payout is close to triple Northwestern Mutual’s nearest competitor.

“Our annual dividend is a demonstration of the company’s superior financial strength, strong investment performance, disciplined underwriting and sound financial management, which enables us to deliver exceptional value to our policyowners while ensuring we can keep our promises to them,” said John Schlifske, chairman, president, and chief executive officer at Northwestern Mutual. “We are incredibly proud that our products continue to play a critical role in helping people protect and grow their wealth, and that we are able to consistently share the company’s success with our policyowners – generation after generation.”

For Northwestern Mutual policyowners, the dividend payout represents one of the most important ways that the company demonstrates its mutuality. Those who receive dividends can apply the funds in a variety of ways, from increasing the cash value and/or death benefit of a life insurance policy, to reducing the out-of-pocket cost of premiums, to funding immediate financial needs by receiving dividends as cash distributions.

While economic ups and downs are inevitable, 2022 has been especially volatile given persistently high inflation, geo-political uncertainty, ongoing supply chain disruptions and increased energy prices. Even in this economic environment, Northwestern Mutual plans to pay the most dividends while remaining one of the strongest companies in the financial services industry.

All four major rating agencies – A.M. Best, Fitch Ratings, S&P Global Ratings and Moody’s – have awarded the company their highest available financial strength ratings available to any U.S. insurer and a stable outlook for 2022. This makes Northwestern Mutual one of only six companies across all industries to be so recognized by Moody’s.

“Building innovative products with a focus on the future is core to who we are as a company, and it means delivering the long-term value and confidence that people need to reduce financial anxiety,” said Schlifske. “When they are provided with the hands-on financial planning and trusted guidance from a Northwestern Mutual financial advisor, our clients are much more likely to achieve their short- and long-term priorities while turning their plans into a reality and designing the lives they truly want to live.”

Last month, the company announced its launch of Long-Term Advantage, an innovative new offering designed to help people pay for long-term care needs – which provides guaranteed premiums and the opportunity to build long-term policy value through annual dividends.

With more than $561 billion in combined company and client assets, $34 billion in revenues, and $2.1 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to nearly five million people with life, disability income and long-term care insurance, annuities, and brokerage and advisory services.

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4 thoughts on “Record Dividend Payout Set for Northwestern Mutual Policyowners”

  1. Should’t every year dividend payout be bigger than the prior year?
    With new business being written and more policies eligible for dividends, I think that this is only a natural progression.
    The article says nothing about actions taken to the dividend scale for 2023.

  2. Lloyds of Lubbock

    Should't every year dividend payout be bigger than the prior year?
    With new business being written and more policies eligible for dividends, I think that this is only a natural progression.
    The article says nothing about actions taken to the dividend scale for 2023.

    Yes. I have always thought that as well. Even with no new business, the compounding would make it larger each year regardless.

    Just meaningless feel good propaganda that all carriers do for some reason.

  3. Lloyds of Lubbock

    NML is excellent at this.
    If their div was going up or holding, I would think it would be in this promotional piece.
    we should see in the next few days.

    Good point! We will see. Interesting times, I dont know that this coming year will be the year of increases like some think it will be. 2024 is what Im betting on.

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