Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Life Health > Life Insurance

Northwestern Announces Dividend Rate

X
Your article was successfully shared with the contacts you provided.

A large mutual insurer says it will be continuing to pay a divided to policyholders despite the recent investment market slump.

The board of Northwestern Mutual Life Insurance Company, Milwaukee, says it will be paying the holders of its participating insurance policies a total of about $4.6 billion in dividends in 2009.

The company paid about $5 billion in dividends this year.

The company has cut the 2009 dividend rate on unborrowed funds in most permanent life insurance policies to 6.5%, from 7.5% this year.

Northwestern has paid dividends every year since 1872.

Most of the 2009 dividends will go to life insurance policyholders.

Dividend payments will increase to $206 million, from $160 million, for disability insurance policyholders, and to $8.8 million, from $6.1 million, for long term care insurance policyholders.

“The current market turmoil is unprecedented and presents significant challenges to all financial companies,” says Edward Zore, president Northwestern. “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.”


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.