Northwestern Mutual’s $8.2 Billion Policyowner Dividend is All-Time High

One of the privileges of serving as CEO is announcing our company’s annual dividend to policyowners. And I’m honored to share that next year’s is without precedent.

In 2025, Northwestern Mutual plans to award a $8.2 billion dividend . That sum is an all-time high for our company, $800 million more than our 2024 payout, and triple the size we expect to see from our nearest competitor. It also continues a time-honored tradition at our company that stretches all the way back to 1872*. That year, and every year since, Northwestern Mutual has paid a dividend to the policyowners we proudly serve.

Next year’s record payout is possible because of our exceptional investment performance, careful underwriting, and prudent expense management. I cannot thank our talented employees, advisors** and teams across the country enough for their contributions to our company’s success. I also want to share my sincerest gratitude to the five million Americans who put their trust in Northwestern Mutual and depend on us to help them build financial security.

Our historic dividend proves that permanent life insurance is helping people create wealth while protecting what they’ve already built.

The reason this announcement is so meaningful to me is because it affirms the impact we have on people’s lives. The fundamental reason people purchase permanent life insurance is, of course, to protect their loved ones and their lifelong dreams if the worst-case scenario becomes reality. But one thing today’s announcement demonstrates is that permanent life insurance can also help Americans build wealth and create options in their comprehensive financial plan in a way that an investing-only approach could never do.

Many of our clients use their dividend to purchase additional paid-up whole life insurance. Doing so helps them increase their death benefit and cash value more quickly than the guarantees built into the policy. And over time this can have a compounding effect – as their additional insurance becomes eligible for even more dividends in the future.

Importantly, that cash value is not correlated to the ups and downs of the markets – it’s guaranteed to grow tax-free as long as policyowners pay the premiums. So, even if the stock market drops, our clients’ policy values keep growing. For many, that access to liquidity means that they will never have to “sell low” in a market downturn to pay for their retirement expenses.

The cash values built up in permanent life insurance also provide the flexibility our clients need to go on offense and pursue fulfilling opportunities. For example, many of our clients take out loans against their policy to start a new business. I've seen firsthand how that access to liquidity enabled them to generate a significant return on their investment – and overwhelmingly, they pay back what they borrow.

Life insurance is not the only financial product that people should own – but I do think it’s something that everyone should own. It forms the foundation for future financial security. And when combined with investments and annuities, a comprehensive plan including permanent life insurance can deliver superior financial results over the long-run.

The impact of our dividend extends beyond the financial; it’s emotional.

Northwestern Mutual’s unprecedented dividend and performance is helping millions of Americans to get one step closer to their lifelong dreams. Our proven approach to financial planning through insurance and investments helps reveal people’s opportunities and blind spots – transforming their feelings of anxiety into financial confidence and security. For 167 years, our goal has been to deliver superior product values to clients while also ensuring irrefutable financial strength .

This strength and security is coming at a critical time. Reignited economic fears, market volatility, and continuing geopolitical conflict are creating uncertainty among Americans. In fact, Northwestern Mutual’s 2024 Planning & Progress Study confirms that feelings of financial anxiety in the U.S. have hit a record high – and are on the rise.

Meanwhile, Northwestern Mutual’s historic performance on behalf of clients continues. We are able to help millions of Americans live the life they’ve always wanted. And thanks to our continuing commitment to always do what is best for our policyowners, I believe a Golden Era awaits generations of future Northwestern Mutual clients.

* The dividend scale and the underlying dividend interest rates are reviewed annually and are subject to change. Future dividends are not guaranteed.

** 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.