What You Need to Know
- Northwestern Mutual expects to pay $6.5 billion in dividends in 2022.
- New York Life estimates that it will pay $1.9 billion in dividends.
- MassMutual has posted a $1.85 billion dividend payout estimate.
The boards of mutual life insurers are starting to release 2022 dividend payout estimates.
A mutual life insurer is a life insurance company that’s owned by its policyholders. Whole life policies are the products most likely to pay dividends.
The dividend payouts affect the value of the policies for the insured, and they also are an indicator of what life insurers think about market conditions.
Northwestern Mutual Life Insurance Company says the interest rate it uses to calculate 2022 dividend payments will hold steady at 5%. Total dividend payments are on track to increase to $6.5 billion, up from $6.2 billion in dividends for 2021, and up from $6 billion in 2020.
Northwestern Mutual is a Milwaukee-based company that was founded in 1857. It reported $31 billion in 2020 annual revenue.
New York Life
New York Life Insurance Company says it expects to pay a total of $1.9 billion in dividends in 2022, up from $1.8 billion in 2021.