Northwestern Mutual is set to break its own industry-leading dividend payout record with an expected $6.8 billion in dividends to be delivered to policyholders in 2023. The company has paid a dividend every year for more than 150 years, totaling more than $150 billion.
The 2023 dividend is projected to be the highest in company history across four of Northwestern Mutual’s product areas: whole life insurance, term insurance, disability income insurance, and annuities. The life insurance payout is nearly triple that of Northwestern Mutual’s nearest competitor, the company said.
“Our annual dividend is a demonstration of the company’s superior financial strength, strong investment performance, disciplined underwriting, and sound financial management, which enables us to deliver exceptional value to our policyholders while ensuring we can keep our promises to them,” said John Schlifske, chairman, president and CEO of Northwestern Mutual. “We are incredibly proud that our products continue to play a critical role in helping people protect and grow their wealth, and that we are able to consistently share the company’s success with our policyowners, generation after generation.”
Northwestern Mutual policyholders can apply the dividend payouts in a variety of ways, from increasing the cash value and/or death benefit of a life insurance policy to reducing the out-of-pocket cost of premiums. They can also choose to receive direct cash distributions.
Despite the current economic uncertainty, Northwestern Mutual remains one of the strongest companies in the financial services sector. All four major rating agencies – AM Best, Fitch Ratings, Moody’s and S&P Global Ratings – have awarded the company the highest financial ratings available to any US insurer and a stable outlook for 2022.
“Building innovative products with a focus on the future is core to who we are as a company, and it means delivering the long-term value and confidence that people need to reduce financial anxiety,” Schlifske said. “When they are provided with the hands-on financial planning and trusted guidance from a Northwestern Mutual financial advisor, our clients are much more likely to achieve their short- and long-term priorities while turning their plans into a reality and designing the lives they truly want to live.”
