Northwestern Mutual is celebrating a year of significant financial growth, highlighted by record-breaking results. The Milwaukee-based insurance giant, in its 167th year, recently announced its highest-ever policyholder dividend of $8.2 billion, a figure more than three times that of its closest competitor. The company also reported a substantial surplus of $40 billion.
“It’s clear that our approach to comprehensive planning – blending risk protection and wealth management through the guidance of a trusted advisor – is resonating in the marketplace,” stated Tim Gerend, company President and CEO. With revenue exceeding $38 billion for 2024 and a rapidly expanding network of financial advisors, Northwestern Mutual is also proud of its 34th consecutive year of receiving top financial strength ratings from all four major ratings agencies, including the highest possible rating from Moody’s Investors Service.
The Advantages of a Mutual Company
The company’s success is attributed to sound management practices and the benefits of higher interest rates in 2024. As a mutual company, Northwestern Mutual operates solely for the benefit of its policyholders, without the pressures of analysts, stockholders, or quarterly Wall Street expectations. According to Todd Jones, the chief financial officer, the company’s mutuality is crucial for its long-term management strategy. “When our financial results are good, they are good for our policyholders, because they are the owners of the company.”
Northwestern Mutual stands as the nation’s largest direct provider of individual life insurance, with $2.3 trillion in life insurance coverage for 4.3 million people. The company’s products are distributed through a network of 22,000 financial advisors and team members, with a focus solely on risk protection and wealth management. The company does not offer LTC, auto, or property and casualty policies.
A Unique Approach to Financial Planning
Jones emphasized the company’s core mission: “At our core is helping families alleviate financial anxiety, and there’s a lot of financial anxiety, as well as a lot of financial planning needs.” He added the company has “a unique approach to comprehensive planning,” delivered through its advisors. “And our advisor system is younger, there’s more advisors, they’re more productive, they’re more diverse every year.”
Looking ahead, Jones echoed Gerend’s optimistic outlook, suggesting that the company’s growth trajectory will continue. He noted that, “A lot of other systems are struggling to grow, and ours is growing significantly… And part of the reason they’re growing is because of the planning that we think is unique between insurance and wealth management products. And that’s helping our policy owners, and it helps our advisors. So we’re really bullish on what the future holds for us.”
Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at [email protected]
