Northwestern Mutual Reviews Robust 2018 Monetary Outcomes

Northwestern Mutual's 2018 enterprise outcomes replicate a robust and vibrant firm recognized for delivering worth to purchasers yr after yr.

Distinctive surplus development, a rise in working acquire and an all-time-high Normal Account funding portfolio demonstrated industry-leading monetary energy, enabling the corporate to proceed investing in innovation to ship a customized monetary safety expertise for purchasers.

"We exist to assist purchasers obtain monetary safety, and our firm's monetary energy ensures we're nicely positioned to ship on our guarantees for generations to return," stated John E. Schlifske, chairman, president and chief govt officer. "I am pleased with these outcomes, which present that our sensible funding strategy and diligent expense administration allow us to persistently ship worth to everybody who counts on us. We proceed to be preeminently the policyowners' firm."

The corporate continued its observe file of sustaining the very best monetary energy scores awarded to any U.S. life insurer by all 4 of the key score businesses.1

Highlights of firm outcomes as of year-end 2018 included:

Distinctive surplus development: In 2018, Northwestern Mutual grew its complete surplus (together with Asset Valuation Reserve or AVR) by $1.5 billion to $26.7 billion – the very best in firm historical past. Surplus is a important contributor to the corporate's monetary energy scores. Surplus reinforces the corporate's means to meet its guarantees to policyowners.
Continued deal with product worth: Progress in internet funding earnings specifically contributed to a 2018 working acquire earlier than dividends and taxes (OGBDT) of $6.2 billion. OGBDT is the first supply for policyowner dividends.
Report dividend: The corporate beforehand introduced an anticipated complete dividend payout of $5.6 billion in 2019, the very best payout in firm historical past.[2] Northwestern Mutual leads the industry in each life and incapacity insurance coverage dividends paid to policyowners.
Progress of insurance coverage and funding consumer belongings: Northwestern Mutual gives a variety of economic providers to greater than four.5 million folks. Life insurance coverage in pressure continued its climb with a four p.c improve to $1.eight trillion. Funding consumer belongings additionally grew and ended the yr at $128 billion in belongings below administration.
Progress in Normal Account funding portfolio: The portfolio stood at an all-time excessive of $235 billion on the finish of the yr, a rise of $9.7 billion since year-end 2017.
Policyowner advantages: Northwestern Mutual paid $four.eight billion in insurance coverage claims to policyowners and their beneficiaries.

Along with its monetary outcomes, Northwestern Mutual made notable progress in its continued transformation targeted on delivering a monetary safety expertise for purchasers that's unmatched within the industry. Among the many milestones previously yr:

Launched our new Planning Expertise, which permits purchasers to see their total monetary image – each inside and out of doors Northwestern Mutual – inside their monetary plan anytime, wherever. The device was used to create greater than 30,000 monetary plans in 2018 and can supply extra capabilities within the yr to return, together with the power to assist purchasers get a transparent image of everlasting life insurance coverage and the residing advantages it presents.
Dramatically diminished underwriting time with an accelerated course of for all times insurance coverage to approve some functions in someday slightly than 2-Three weeks.
Dedicated to investments in innovation, together with three new enterprise funds to spend money on the brightest concepts and companies, in addition to opening the brand new Northwestern Mutual Knowledge Science Institute with the College of Wisconsin-Milwaukee and Marquette College to advance information science and expertise studying to strengthen future expertise in Milwaukee.

"Know-how helps our advisors guarantee monetary planning is an always-on, simply accessible and extra environment friendly expertise so extra folks can take pleasure in at this time whereas getting ready for tomorrow," stated Schlifske. "Our monetary outcomes are robust, however what's extra essential are the values that stand behind them and the trusted relationships and long-term dedication between our advisors, our purchasers and us."

About Northwestern Mutual
Northwestern Mutual has been serving to households and companies obtain monetary safety for extra than 160 years. Via a particular, whole-picture planning strategy, we empower our purchasers to take advantage of each single day and plan for essential moments of their future. We mix the experience of our monetary professionals with a customized digital expertise to assist our purchasers navigate their monetary lives on daily basis. With $272.2 billion in belongings, $28.5 billion in revenues, and $1.eight trillion value of life insurance coverage safety in pressure, Northwestern Mutual delivers monetary safety to greater than four.5 million individuals who depend on us for all times, incapacity earnings and long-term care insurance coverage, annuities, and brokerage and advisory providers. The corporate manages $128 billion of investments owned by our purchasers and held or managed by our wealth administration and funding providers companies. Northwestern Mutual ranks 104 on the 2018 FORTUNE 500 and is acknowledged by FORTUNE® as one of many "World's Most Admired" life insurance coverage firms in 2019.

Northwestern Mutual is the advertising identify for The Northwestern Mutual Life Insurance coverage Firm (NM), Milwaukee, WI (life and incapacity insurance coverage, annuities, and life insurance coverage with long-term care advantages) and its subsidiaries. Northwestern Mutual and its subsidiaries supply a complete strategy to monetary safety options together with: life insurance coverage, long-term care insurance coverage, incapacity earnings insurance coverage, annuities, life insurance coverage with long-term care advantages, funding merchandise, and advisory services and products. Subsidiaries embrace Northwestern Mutual Funding Providers, LLC (NMIS) (securities), broker-dealer, registered funding adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Administration Firm® (NMWMC) (fiduciary and fee-based monetary planning providers), federal financial savings financial institution; and Northwestern Lengthy Time period Care Insurance coverage Firm (NLTC) (long-term care insurance coverage).

1 Rankings are for The Northwestern Mutual Life Insurance coverage Firm and Northwestern Lengthy Time period Care Insurance coverage Firm, as of the newest overview and report by every score company. A.M. Greatest Firm, A++ (highest), April 2018; Fitch Rankings, AAA (highest), December 2018; Moody's Buyers Service, Aaa (highest), September 2018; and S&P International Rankings, AA+ (second highest), June 2018. Rankings are topic to alter.

2 Selections with respect to the willpower and allocation of divisible surplus as dividends annually are left to the discretion and sound enterprise judgment of the corporate's Board of Trustees. There is no such thing as a assured particular technique or method for the willpower or allocation of divisible surplus. Accordingly, the corporate's strategy is topic to alter. Neither the existence nor the quantity of a dividend is assured on any coverage in any given coverage yr.

Abstract of Operations

(Statutory foundation, in thousands and thousands)

Years ended December 31:

2018

2017

Premiums

$18,036

$17,897

Internet funding earnings

9,791

9,541

Different earnings

     ­               655

649

Whole income

28,482

28,087

Policyowner advantages paid

11,436

10,332

Enhance in profit reserves

7,582

eight,471

Commissions and bills

Three,230

Three,120

Whole advantages and bills

22,248

21,923

Achieve earlier than dividends and taxes

6,234

6,164

Policyowner dividends

5,634

5,338

Achieve earlier than taxes

600

826

Revenue tax profit

(159)

(98)

Internet acquire from operations

759

924

Internet realized capital positive aspects

24

93

Internet earnings

$783

$1,017

The summarized monetary assertion above was ready on the statutory foundation of accounting. Monetary statements ready on the statutory foundation of accounting differ materially from monetary statements ready in accordance with usually accepted accounting rules ("GAAP").

Abstract of Monetary Place

(Statutory foundation, in thousands and thousands)

     December 31,
2018

 December 31,
2017

Bonds

$153,713

$146,945

Mortgage loans

36,755

35,750

Coverage loans

17,693

17,421

Frequent and most popular shares

5,574

5,870

Actual property

2,576

2,356

Different investments

17,048

14,724

Money and short-term investments

1,899

2,469

Whole investments

235,258

225,535

Different belongings

7,192

7,052

Separate account belongings

29,717

32,462

Whole belongings

$272,167

$265,049

Coverage profit reserves

$202,816

$195,279

Policyowner dividends payable

5,635

5,335

Different liabilities

7,268

6,788

Separate account liabilities

29,717

32,462

Liabilities (excluding AVR)

245,436

239,864

Asset valuation reserve (AVR)

four,597

four,334

Surplus          

22,134

20,851

Surplus and AVR

26,731

25,185

Whole liabilities and surplus

$272,167

$265,049

The summarized monetary assertion above was ready on the statutory foundation of accounting. Monetary statements ready on the statutory foundation of accounting differ materially from monetary statements ready in accordance with usually accepted accounting rules ("GAAP").

 

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SOURCE Northwestern Mutual