Milwaukee-based Northwestern Mutual Life Insurance Co. today announced that it is increasing the amount of dividends expected to be paid to its participating policyowners this year to $4.97 billion.
The company's dividend payout will include a dividend scale interest rate of 5.85 percent on unborrowed funds for most permanent life insurance products. The company said that it expects again to lead the U.S. insurance industry by a wide margin in total life insurance, long-term care and disability insurance dividends paid.
The company's total surplus, a combination of surplus and asset valuation reserve, increased by $527 million during 2011 to $18.2 billion at the end of 2011, a company record.
The company reported net income of $645 million for 2011, down 14.7 percent from 2010 net income of $756 million. The company's total revenues increased by 2.1 percent in 2011 to $23.6 billion.
"Considering the difficult economic environment, this past year's financial performance was very good," said John Schlifske, chairman and chief executive officer of Northwestern Mutual. "Our primary financial objective is to balance great product value with unquestionable financial strength. That's just what we delivered again in 2011. In this environment. It is no small feat to simultaneously pay near-record dividends while adding to our already substantial capital base."
Northwestern Mutual's financial representatives sold 350,000 new insurance policies during 2011, the highest number of new policies since 1993.
"The surge in the number of new policies, when combined with our incredible customer loyalty rate, reflects the fact that our financial representatives help their clients plan for financial security in relevant and meaningful ways," said Schlifske. "While I don't think the economy is out of the woods yet, we remain well-positioned for whatever lies ahead."
Northwestern Mutual to pay out nearly $5 billion in dividends
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