Two major life insurance companies, MetLife and Northwestern Mutual, have approved dividend payments.
Northwestern Mutual Life Insurance Company, Milwaukee, says it has approved a payout of nearly $5 billion for participating policyowners for 2012, an increase of more than $125 million over its expected 2011 payout. The dividend also exceeds the company’s 2010 payout of $4.7 billion.
Separately, Metropolitan Life Insurance Company, New York, declared an annual common stock dividend for 2011 of $0.74 per common share, an amount unchanged from 2010.
Northwestern Mutual says its dividend is the second-largest payout in the company’s history. The company credits its dividend payout to “careful underwriting, rigorous expense management, diversified investing, and strong performance in other operating fundamentals.”
“In 2012, we’ll probably pay more permanent life dividends than the next two companies combined,” says John Schlifske, chairman and chief executive officer of Northwestern Mutual. “We are one of a few companies who pay dividends on term life, long-term care and disability insurance.”
Northwestern Mutual highlighted the following aspects of its 2012 dividend, as well as the separate dividend announcement of its subsidiary, the Northwestern Long Term Care Insurance Company:
—Life Insurance: About 90% of the nearly $5 billion will be paid to participating permanent life insurance policyowners.
—Disability Insurance: The company expects to pay disability insurance policyowners $252 million in dividends in 2012.
—Long-Term Care Insurance: The Board of Directors of the Northwestern Long Term Care Insurance Company approved a dividend payout of $12.8 million on long-term care policies for 2012.
—Term Life Insurance: In 2012, $120 million in dividends is expected to be paid to term life insurance policyowners.