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Downturn does not deter Northwestern Mutual
Published October 29, 2008 - BizTimes Daily
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The board of trustees of Northwestern Mutual Life Insurance Company today announced it has approved an estimated dividend payout of $4.6 billion to be paid to participating policyowners in 2009.
The financial security company said strong operating fundamentals and a diversified investment strategy enabled it to deliver the payout, while it continues to maintain a capital surplus that ensures long-term financial strength.
The dividend interest rate on unborrowed funds for most permanent life insurance policies will be 6.5 percent in 2009.
"We are proud to continue to lead our industry in total life insurance dividends paid to policyowners," said Edward Zore, president and chief executive officer of Northwestern Mutual. "Our dividend payout is evidence that our long-term investment strategy, strong operating fundamentals and capital strength deliver exceptional value to policyowners."
Unlike stock companies, which may pay dividends to shareholders, Northwestern Mutual's structure as a mutual company allows it to return a portion of its investment gains and favorable results from mortality and expense experience to participating policyowners in the form of dividends.
Northwestern Mutual pays more in total individual life insurance dividends to policyowners than any other company in the industry. While dividends are not guaranteed, Northwestern Mutual has paid dividends to policyowners every year since 1872.
"The current market turmoil is unprecedented and presents significant challenges to all financial companies," Zore said. "Northwestern Mutual is not immune to market changes. But as a mutual company with more than 150 years of experience, we can maintain our focus on the long-term interest of our clients and policyowners - and help them achieve financial security."
