Being trustworthy pays dividends

Today, I’m thrilled to announce that Northwestern Mutual expects to pay a record $6.8 billion in dividends to our policyowners in 2023 . That record-setting life insurance dividend payout amount is close to triple our nearest competitor. ?

Dividends are powerful because they provide policyowners with the opportunity and the flexibility to build greater financial security. Clients can use their dividend to increase the accumulated value and, in some cases, the death benefit of their life policy. They can reduce the out-of-pocket cost of their premiums, or they can fund immediate financial needs by receiving the dividend as cash distributions. Over time, these dividend payouts can play a significant role as part of an individual’s overall financial plan.?

For many of our millions of clients, this will be exciting and assuring news. After all, the economic and market environment this year has been especially volatile, with global uncertainty, persistently high inflation, ongoing supply chain disruptions, and increased energy prices placing pressure on all sectors. Our ability to pay out a record-setting dividend of this magnitude, in this climate, is truly something to celebrate. In fact, I think it’s extraordinary.

But, for other clients, a historic dividend payout is what they have come to expect. Record-setting performance – again and again – alongside exceptional financial strength is what people are entrusting Northwestern Mutual to deliver.?

For generations, Northwestern Mutual has returned its success to policyowners who own our life insurance products through dividends. We’ve paid a dividend every single year for more than 150 consecutive years. And in that span, we’ve paid out more than $150 billion in dividends to participating policyowners. But in this year, facing significant headwinds, we are keeping our promises and delivering more value than any time in our company’s 165-year history.?

Trustworthiness is our hallmark – and it’s something we will never take for granted.??

Millions of Americans rely on us to help them build financial security. One of the questions I’m asked most often by industry colleagues and clients nationwide is this: “How do you do it? How can Northwestern Mutual continue to set the bar higher, ensure financial strength and deliver such dominant value to millions of policyowners?”?

It’s because of our people. At Northwestern Mutual, we don’t manufacture anything. We don’t make money from patents. All the value we create is made possible by the collective impact of immensely talented individuals. Across our company, across the country, you will find our trustworthy, mission-driven servant leaders who are inspired to make history again and again – by helping more and more clients reach their dreams. As I’ve said before, our advisors and our employees don’t ask for people’s trust. Instead, we seek to earn it – minute by minute, day after day, year after year. Our commitment to our purpose – delivering the long-term value and confidence that people need to reduce? financial anxiety – is what motivates us to work harder each year in our clients’ best interests.?

We can pay a record-setting, industry-leading dividend while maintaining industry-leading financial strength because our talented advisors and employees stay focused on what matters most: our clients and their long-term financial security. We maintain low expenses. We make wise investments. We perform sound underwriting. We plan ahead, take the long-term view and never cut corners. We live up to our commitments. We safeguard the trust that people put in us – and in doing so, we build trust. Our persistency rate — the number of policyowners who stay with us year after year — is 97 percent, the highest in the industry. Across any sector, that scale of loyalty is virtually unheard of. But at our company, outstanding results are the norm.??

That historic performance extends to our financial strength, which has never wavered. Northwestern Mutual continues to be one of the strongest companies in our industry – and across any business sector. In fact, our company is one of just six in the U.S. to receive Moody’s Aaa rating and stable outlook. We know that trustworthiness means having the capital and contingency plans for any economic season. And that’s why our goal each year is to deliver maximum value to clients while also ensuring unsurpassed financial strength.?

Trustworthiness is our competitive advantage. Our 2023 dividend payout announcement is the perfect expression of the virtuous circle that exists between our company and our clients. When our company delivers strong results, our policyowners benefit through our dividend payout. And when our policyowners do well and choose to keep their policies in-force and refer their friends and family to us – that’s good for our company. We will always do the right thing for our clients – and that mindset will continue to ensure our shared success for generations to come.??

Northwestern Mutual continues to have the highest financial strength ratings awarded to any U.S. life insurer by all four of the major rating agencies: A.M. Best Company, A++ (highest), June 2022; Fitch Ratings, AAA (highest), August 2022; Moody’s Investors Service, Aaa (highest), May 2022; S&P Global Ratings, AA+ (second highest), July 2022. Third-party ratings are subject to change and are a measure of the company’s relative financial strength and security but are not a reflection of the performance or stability of funds invested in a company’s separate accounts. Ratings are for The Northwestern Mutual Life Insurance Company and Northwestern Long Term Care Insurance Company.???

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Subsidiaries include Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company? (NMWMC) (investment advisory and services), federal savings bank; and Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance). Not all Northwestern Mutual representatives are advisors. Only those representatives with "Advisor" in their title or who otherwise disclose their status as an advisor of NMWMC are credentialed as NMWMC representatives to provide investment advisory services.??