Northwestern Mutual Life Insurance Co. today announced it has approved more than $4.7 billion in dividends for payment to policyowners in 2010.

The estimated dividend payout for 2010 includes $120 million in dividends paid on term life insurance, as compared to $83 million in 2009, and $225 million in dividends on individual disability insurance policies, an increase of $19 million over the 2009 payout. Northwestern Long Term Care Insurance Company has approved payment of an estimated $8 million in dividends to its participating long-term care policyowners in 2010.

The company said its operating gain before dividends and taxes was $5.2 billion in 2009, down 3 percent from 2008 due primarily to lower net investment income. Net gain from operations was $475 million for 2009, a decline from $1.1 billion in 2008, which included the benefit of a significant, one-time tax reserve adjustment.  Total insurance premium revenue, including both new and renewal premiums, totaled $13.1 billion for 2009, a decrease of 4 percent from the prior year. Net investment income was $7.8 billion for 2009, a 1 percent decrease from 2008.

"Given the rotten economy during 2009, we are more than satisfied with what we have accomplished for our policyowners," said Edward J. Zore, chairman and chief executive officer of Northwestern Mutual. "At its heart, our brand of financial security is about giving people confidence in their future. I'm proud of how we've been able to keep our promises at a time when people need to know who they can really count on. As the dust starts to settle on a difficult period for the economy, we can look back on 2009 and know that our business model performs well in both good times and bad. Our results have been remarkably stable and consistent in volatile times. We provided industry-leading value and maintained our unquestioned financial strength. That performance brings more talented financial representatives to our system and gives our clients the confidence to stick with the plans they have made for their financial future."

The company said its total surplus (the combination of surplus and asset valuation reserve) increased more than $800 million during 2009 to end the year at $14.2 billion. At the end of 2009, the company said its total surplus represented 11.4 percent of general account insurance reserves.

Also, the company said it $26.1 billion in cash and cash equivalents, U.S. Treasuries and other highly liquid government-guaranteed investments at the end of 2009.