MILWAUKEE, Oct. 29, 2020 /PRNewswire/ — Northwestern Mutual announced today that its policyowners will receive an estimated $6.2 billion through the company’s 2021 dividend payout. This payout marks another record for the company, which has paid a dividend to its policyowners every year since 1872 – and its life insurance dividend payout is more than double the closest competitor. In addition, payouts for term life insurance, individual disability income insurance and portfolio income annuities will be the highest in the company’s history.
“This record dividend payout is a sign of our commitment to our policyowners,” said John E. Schlifske, chairman, president and CEO of Northwestern Mutual. “When the pandemic began to disrupt our world in early 2020, Northwestern Mutual was strong, prepared, and ready to navigate the challenges and continue delivering strong results to help our clients become more financially secure.”
Dividends are one of the most important ways that Northwestern Mutual shares its success with its policyowners. Policyowners can use dividends to increase the cash value and in some cases death benefit of their policy, reduce the cost of their premiums, or fund immediate needs by receiving the dividends as cash.
In addition to this largest-ever payout, Northwestern Mutual continues to be the strongest company in the industry – holding the highest financial strength ratings awarded to any U.S. insurer from all four major ratings agencies.
“Because of our financial strength, we were able to make significant investments when markets dropped to low levels earlier this year, and as markets have rebounded, those investments are already paying off,” said Schlifske. “Our ability to make opportunistic, strategic investments, combined with our long-term, level-headed view towards expenses and underwriting, means we are positioned to thrive in all economic environments.”
In addition to the record dividend payment, and amid a myriad of challenges in the external environment, the company has experienced other significant successes in 2020, including:
- A record number of new clients – helping people plan and become more financially secure.
- A record amount of permanent life insurance in place, with more than $1.9 trillion of protection for 3.9 million people.
- Record net cash flows for the retail investments business, with nearly $175B in client assets (one of the fastest growing independent broker dealers in the country).
- Increased the number of financial professionals nationwide, now the largest in the company’s history.