Northwestern Mutual projects record dividend payout

Milwaukee-based Northwestern Mutual Life Insurance Co. Inc. will reach another financial milestone in 2013 with its largest dividend payout ever.

The company expects to pay more than $5 billion in policyowner dividends, an increase of $65 million over its 2012 payout.
With the record payout, the company expects to again lead the industry by a wide margin in total life, disability and long-term care insurance dividends paid. The payout includes more than $4.6 billion in ordinary life insurance dividends, more than double the ordinary life insurance dividends of its nearest competitor.
“We’re showing again our ability to deliver consistent long-term value in all environments,” said John Schlifske, chairman and chief executive officer of Northwestern Mutual. “While companies are feeling the impact of the low rate environment, our focus on fundamentals gives us a real advantage.”
According to Schlifske, the company’s ability to stay focused on disciplined expense management, careful underwriting and prudent investing – while avoiding product fads – provides a consistently winning formula.
About 90 percent of the more than $5 billion payout will go to the company’s participating permanent life insurance policyowners.
“We are about making people more financially secure by giving them the best value we can,” said Schlifske. “I know our policyowners are happy with their choices because while they could take their whole life dividends as cash, about 80 percent use dividends to buy more life insurance.”
Northwestern Mutual is one of only a few companies that also pays dividends on its other product lines, including $140 million for term life insurance; $278 million for disability income insurance; $7 million for long-term care insurance; $30 million for fixed and variable annuities; and $92 million for additional benefits on life insurance.

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