Calm and confident in the storm

Today, I’m proud to announce Northwestern Mutual’s 2022 financial results . Once again, our 165-year-old company remains historically strong. We’re the largest direct provider of individual life insurance and our industry-leading market share continues to grow. Our retail investments company is one of the largest in the industry and our wealth management business continues to grow at a faster rate than our competition. Our revenues are record-setting. And our crown jewel – Northwestern Mutual’s field force of financial advisors – has never been larger, more productive or more diverse.

But the best news of all is not the size of our company; it’s the exceptional value we continue to deliver to our more than five million clients. Northwestern Mutual is breaking its own industry-leading dividend record with an expected $6.8 billion payout to policyowners , nearly triple our closest competitor – while retaining unsurpassed financial strength . In fact, our total surplus remains exceptional, totaling over $37 billion[i] . All four major rating agencies – A.M. Best, Fitch Ratings, S&P Global Ratings and Moody's Investor Service maintained our highest available financial strength ratings for any U.S. life insurer, all with stable outlooks. Northwestern Mutual is one of only six U.S. companies across all industries to receive an Aaa (highest) rating (with a stable outlook) from Moody’s Investor Service. Our organization is also the only one to rank among the top ten in both the J.D. Power 2022 U.S. Individual Life Insurance Overall Customer Satisfaction Ranking and the J.D. Power 2022 U.S. Full-Service Investor Satisfaction Study .

These results are extraordinary, and they validate our strategy to deliver truly comprehensive financial planning to our clients. Unlike others in our industry that offer solely insurance or investments products, we strategically combine permanent life insurance, investments and annuities in a single cohesive plan to help people protect what they’ve already built while also creating future generational prosperity. Importantly, we know from third-party research that having investments and insurance managed together in a financial plan helps people to achieve better financial outcomes in retirement more often than other financial strategies. This unique approach is resonating strongly with our clients as an answer to financial anxiety.

Our 2022 business performance is even more impressive if you consider the broader environment. We have been in the middle of an economic storm, one of the most uncertain times in our nation’s recent history. Despite volatile markets – impacted by inflation, rising interest rates, the Russia/Ukraine war, supply chain disruptions, increased energy prices, a lingering pandemic, and the growing threat of a recession and more – we achieved outstanding results through our intentional actions.

That’s the key point: anyone can succeed in good times. Any organization can deliver value to customers while investing in innovation in the best of conditions. It’s when conditions deteriorate and the unexpected becomes reality that an organization’s promises are truly tested. It’s also when companies can separate themselves from the competition to truly stand out in the marketplace.

A growing number of financial services companies felt financial pressures in the 2022 economic environment – hearing from restless shareholders searching for greater returns. It had many organizations on their heels. Some scaled back investments, announced layoffs, or divested pieces of their business. They’re wavering, tightening their belts and getting defensive—foregoing future plans just to survive.

On the other hand, at Northwestern Mutual, we’re not aspiring to simply weather the storm. We want to thrive – and to be the calm and confidence our clients are seeking in the midst of the storm.

We will not hunker down and hope that others will not pass us by. Our exceptional financial strength means that we can be the innovative disruptors, not the disrupted. Through continued strategic investments in technology and venture capital, we can act opportunistically, create the preferred future of financial planning and meet the evolving needs of the millions of clients we proudly serve. No matter what economic season arises, thanks to our financial strength, we can remain on offense.

But it’s not just investments in innovation and sterling financials that make me feel such optimism about our future. It’s also our hearts and minds. In recent weeks, I got to meet with thousands of our financial advisors at our company’s Regional Meetings across the country – and they told me about the strong connection he or she felt with our mission.

They believe in the cause of freeing Americans from their financial anxiety by helping them to build financial security. Every day – but especially in the midst of today’s economic storm – our advisors feel an urgency to help as many people as they can to worry less and live more. It’s a calling that motivates them to serve others who need our help to reach their dreams.

As 2023 continues, I believe consumers will continue looking to Northwestern Mutual to create the same sense of authentic confidence for themselves that we feel about today and the future. Our aspiration is to help others rise above life’s financial risks, take control of their lives, and pursue their aspirations. That kind of resilience requires careful and intentional financial planning. We stand ready to serve as a strong, trustworthy, innovative, resilient, relevant, and dependable partner that can expertly help others make smart financial choices and build financial security with tailored, comprehensive financial plans.?

[i] Includes surplus and asset valuation reserve.