Milwaukee-based life insurance and financial services firm Northwestern Mutual Life Insurance Co. saw its net income increase 35.8 percent in 2017.
The insurer reported net income of $1 billion, up from $810 million in 2016. Its net realized capital gains totaled $93 million in 2017, compared with net realized capital losses of $215 million in 2016.
Northwestern Mutual pointed to growing demand for its solutions from clients and to its diversified investment strategy for the gains. The general account investment portfolio was up $11.9 billion, to $225.5 billion, in 2017. And the company now has $125.1 billion in client assets under management for investment products and services, up 25 percent over 2016.
Its income tax benefit decreased by $78 million year-over-year. The company said it expects the federal tax law’s reduction of its taxes to appear in earnings this year.
Northwestern Mutual’s revenue was $28.1 billion in 2017, down from $28.2 billion in 2016, as premiums and net investment income fell slightly.
Northwestern Mutual paid out $10.3 billion in policyowner benefits in 2017, up from $9.8 billion in 2016. But it plans to pay out more in policyowner dividends, at $5.3 billion, up from $5.2 billion in the prior year.
The company’s assets total $265 billion, up from $250.5 billion at the end of 2016.
“Our results make clear how we are able to do three key things: pay the benefits we promise to policyowners and their beneficiaries, provide the opportunity to share in a dividend payout that today leads the industry, and remain a company with exceptional financial strength,” said John Schlifske, chairman and chief executive officer of Northwestern Mutual. “We also continue to invest in a distinctive client experience that will help more people achieve financial security.”
