Northwestern Mutual’s revenue topped $38 billion for the first time in 2024, a 5.5% increase that was the company’s second strongest year of growth in the past decade. “Northwestern Mutual is delivering record-setting product value, backed by exceptional financial strength, to the millions of clients we proudly serve – and our best is yet to
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Northwestern Mutual’s revenue topped $38 billion for the first time in 2024, a 5.5% increase that was the company's second strongest year of growth in the past decade.
“Northwestern Mutual is delivering record-setting product value, backed by exceptional financial strength, to the millions of clients we proudly serve – and our best is yet to come,” Tim Gerend, Northwestern Mutual chairman, president and chief executive officer, said in a press release announcing NM’s financials.
The company’s results benefited from a 6% increase in premium revenue to $23.3 billion, a 4.5% increase in net investment income to $13.8 billion and an 8.9% increase in other income to $976 million.
Revenue for the year totaled $38.1 million.
Northwestern Mutual was also able to grow its surplus by more than $1.9 billion, pushing it above $40 billion.
“Why are these financial results so important to us? Well, it's really because of how we go to market and in saying what we believe to be a unique approach to comprehensive planning, and that's really resonating in the marketplace,” Todd Jones, chief financial officer of Northwestern Mutual, said in an interview with BizTimes Milwaukee.
Jones added that a key part of how NM goes to market is through financial advisors, noting the number of advisors had grown to its largest total in company history.
“They're really the heroes of our system and they're the ones that are out there, delivering that financial security,” Jones said. “And along with that, I reflect back, I started with the company over 20 years ago, and at that time we were selling a lot of great products. And now I would say what our advisors are doing are selling a lot of great outcomes and those outcomes are being sold to everyday families throughout the country and everyday people. Truly our mission is to help alleviate financial anxiety in the country and we think we're delivering on that and we're delivering on it through our financial results as well as the planning process that we have in place.”
Total benefits, including payments to policyowners, additions to benefit reserves and transfers from separate accounts, increased 5.2% to $25 billion.
Commissions and operating expenses increased 0.7% to $4.25 billion.
“Obviously inflation and wage inflation and those kinds of things we got to pay up on, I mean, those are realities when you're in the economy, but it really is about prioritizing what the most important, important things are and spending on those,” Jones said. “Expenses aren't going down, they're going up. We just need to make sure they're not going up too much while investing in the future. And that's so important to us
The result was a gain from operations of $8.82 billion, up from $8.12 billion in 2023.
The company also increased its policyowner dividends by $800 million to almost $8.3 billion.
After taxes and realized capital losses, NM saw net income for the year of $561 million, down from $711 million in 2023.