Northwestern Mutual to pay $4.7 billion in dividends; M&I launches iPhone application; MGIC’s annual loss tops $1.3 billion; Northwestern Mutual Investment Services honored by financial magazine
Northwestern Mutual to pay $4.7 billion in dividends
Northwestern Mutual Life Insurance Co. has approved more than $4.7 billion in dividends for payment to policyowners in 2010.
The estimated dividend payout for 2010 includes $120 million in dividends paid on term life insurance, as compared to $83 million in 2009, and $225 million in dividends on individual disability insurance policies, an increase of $19 million over the 2009 payout. Northwestern Long Term Care Insurance Company has approved payment of an estimated $8 million in dividends to its participating long-term care policyowners in 2010.
The company said its operating gain before dividends and taxes was $5.2 billion in 2009, down 3 percent from 2008 due primarily to lower net investment income. Net gain from operations was $475 million for 2009, a decline from $1.1 billion in 2008, which included the benefit of a significant, one-time tax reserve adjustment. Total insurance premium revenue, including both new and renewal premiums, totaled $13.1 billion for 2009, a decrease of 4 percent from the prior year. Net investment income was $7.8 billion for 2009, a 1 percent decrease from 2008.
“Given the rotten economy during 2009, we are more than satisfied with what we have accomplished for our policyowners,” said Edward J. Zore, chairman and chief executive officer of Northwestern Mutual. “At its heart, our brand of financial security is about giving people confidence in their future. I’m proud of how we’ve been able to keep our promises at a time when people need to know who they can really count on. As the dust starts to settle on a difficult period for the economy, we can look back on 2009 and know that our business model performs well in both good times and bad. Our results have been remarkably stable and consistent in volatile times. We provided industry-leading value and maintained our unquestioned financial strength. That performance brings more talented financial representatives to our system and gives our clients the confidence to stick with the plans they have made for their financial future.”
The company said its total surplus (the combination of surplus and asset valuation reserve) increased more than $800 million during 2009 to end the year at $14.2 billion. At the end of 2009, the company said its total surplus represented 11.4 percent of general account insurance reserves.
M&I launches iPhone application
Milwaukee-based M&I Bank has launched an iPhone application for its retail mobile banking customers.
The new M&I Mobile iPhone application, available for free in the Apple App Store, provides M&I customers an enhanced mibank.com mobile banking experience where they can check balances, pay bills, view e-bill information, transfer funds, locate an M&I Bank location or ATM and more.
"iPhone users demand applications that allow them to take advantage of their phone’s unique features. Because so many of our M&I Mobile customers use an iPhone, we believe it is important to ensure their mobile banking experience is as good as possible," said Patrick Reetz, vice president, director of online and mobile channels. "This new application positions M&I as a leader among our peers and will allow for future growth in mobile banking.”
MGIC’s annual loss tops $1.3 billion
MGIC Investment Corp. reported a net loss of $1.3 billion, or $10.65 per share, for the full year of 2009, which was worse than a loss of $525.4 million, or $4.61 per share, the company incurred in 2008.
The Milwaukee-based private mortgage insurer reported a net loss for fourth quarter of $280.1 million, compared with a net loss of $275.6 million for the same period a year ago. Total revenues for the fourth quarter were $405.5 million, compared with $411.5 million in the same period a year earlier.
Curt Culver, chairman and chief executive officer of MGIC, said the weak economy, higher unemployment and lower home prices have resulted in an increase in the delinquent inventory and elevated incurred losses. He added that he was pleased to report a sequential decline in the number of new notices received and that the new insurance written, since the implementation of the underwriting guidelines in early 2008, is improving the overall credit risk profile of the company’s insurance in force.
Northwestern Mutual Investment Services honored by financial magazine
Northwestern Mutual Investment Services LLC, has been recognized by Investment News, a financial services magazine, as a top ten independent broker dealer, based on study results published on the magazine’s web site that examined the production of financial representatives and the size of company field forces.
Northwestern Mutual Investment Services LLC is a subsidiary of Milwaukee-based The Northwestern Mutual Life Insurance Company.
