Milwaukee-based Northwestern Mutual recently announced that it will continue its longstanding tradition of awarding its policyowners a record-setting and industry-leading annual dividend – a sum expected to reach $7.3 billion in 2024.
The company has paid a dividend every year since 1872, totaling more than $150 billion over that span.
The anticipated $7.3 billion dividend payout in 2024 includes the highest amounts in company history for policyowners across whole life insurance ($6.1 billion), disability insurance ($550 million) and annuities ($240 million).
“Our exceptional financial strength and superior product value are hallmarks of our company – differentiating Northwestern Mutual in the marketplace and deepening trust with all those we proudly serve,” said John Schlifske, the company’s chairman, president and chief executive officer. “Next year’s historic dividend demonstrates once again our unflinching focus on returning value to policyowners and guiding their journey toward greater financial security.”
For those Northwestern Mutual policyowners who receive dividends, they can choose how to apply those funds – including the option to increase the cash value and/or death benefit of a life insurance policy, to fund an urgent financial need by receiving the payout as cash distributions, or to reduce out-of-pocket costs of premiums.
While the country is experiencing historic inflation and other uncertainties, Northwestern Mutual continues to provide financial well-being to policyowners by earning elite financial strength ratings each year. All four of the major ratings agencies – A.M. Best, Fitch Ratings, S&P Global Ratings and Moody’s – once again affirmed Northwestern Mutual with the highest financial strength ratings awarded to any U.S. insurer. Northwestern Mutual is one of only five companies across all industries to be so recognized by Moody’s.
“Northwestern Mutual remains committed to paying the highest level of dividends over time while retaining our truly exceptional financial strength,” said Schlifske. “Amidst continuing economic and market volatility, we are accelerating our path forward, delivering for our policyowners today while ensuring our relevance for generations to come.”
Earlier in 2023, Northwestern Mutual announced that the 166-year-old company finished the previous year with record revenue of nearly $35 billion and total surplus of over $37 billion. In addition, the company’s policyowner persistency – a key measure of customer satisfaction – has remained at a record-high 97%. Northwestern Mutual is also number one in individual life insurance sales across the industry.