Northwestern Mutual subsidiary buys stake in electric system

NM Neptune LLC, an indirect wholly owned subsidiary of Milwaukee-based Northwestern Mutual Life Insurance Co. Inc., has acquired Starwood Energy’s 25-percent Class C stake in the Neptune Regional Transmission System.

The 65-mile high-voltage, direct-current underwater transmission cable connects Sayreville, N.J., to Long Island, New York. The Neptune system has been operational since 2007 and its 660 Megawatts of capacity are fully contracted to the Long Island Power Authority under a 20-year agreement.

“Neptune represents a significant addition to our infrastructure equity platform that we formally launched in 2013 within Northwestern Mutual Capital. The combination of current yield from an asset with strategic importance to the power markets of the Northeastern United States is very attractive,” said Ron Joelson, executive vice president and chief investment officer for Northwestern Mutual. “Our investment objective is to generate superior returns while maintaining a well-balanced and diversified investment portfolio to preserve the company’s exceptional financial strength.”

The financial performance of Northwestern Mutual’s $186 billion general account investment portfolio is a critical component of the company’s financial strength and ability to deliver value to policyowners. The assets back the company’s insurance and annuity products.

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