Against the backdrop of surging inflation and low consumer sentiment across the country, Northwestern Mutual’s financial strength and consistency continue to set the company apart. This week the company announced it has once again maintained the highest available financial strength ratings that can be awarded within the industry.
Northwestern Mutual, whose unique approach to financial planning combines insurance to protect against risks and investments to build prosperity, is one of only six companies in the country to be recognized as having the top-available rating with a ‘Stable Outlook’ from Moody’s – a class that includes the likes of Apple and Microsoft.
“This outcome from the major rating agencies demonstrates that we are a company that our policy owners can continually count on,” said Northwestern Mutual Chief Financial and Risk Officer Mike Carter. “Putting your trust in a company that can deliver in any economic environment is more important than ever. That’s why a record number of clients are turning to our financial advisors and the superior financial strength that continues to differentiate Northwestern Mutual in the marketplace.”
By the end of 2022, Northwestern Mutual will have awarded its policy owners $6.5 billion in dividends – the largest distribution in company history and three times the amount of its next highest competitor. At the same time, the company’s surplus grew to $37 billion by early 2022 – another record. This exceptional financial strength enables Northwestern Mutual to thrive during economic ups and downs, act opportunistically in the markets, continue evolving to ensure relevance in the marketplace, and keep the promises it makes to the millions of clients it proudly serves – not just today, but for generations to come.
Here’s what the agencies have said about Northwestern Mutual in 2022:
“Strong and stable operating performance allows the company to distribute a meaningful amount of dividends to policyholders,” S&P wrote in its report on Northwestern Mutual.
A mid-July announcement from Fitch that reaffirmed Northwestern Mutual’s ‘AAA’ status (including a stable outlook) marked the last of the four major rating agencies, along with Moody’s, S&P, and AM Best, to review and maintain the Milwaukee-based firm with top-in-class ratings in 2022.
“The ratings reflect NM’s exceptionally strong capitalization, leading competitive position in the U.S. individual life insurance market, and a conservative liability profile,” according to Fitch’s press release. Financial strength ratings are determined by myriad factors, including an exhaustive analysis of companies’ business and financial profiles.
“Our credit view of Northwestern Mutual reflects the company’s exceptional business and financial profile, supported by its leading position and strong life insurance franchise in its core market with a significant focus on participating whole life insurance,” Moody’s wrote in a recent update.
And according to an AM Best report, “Northwestern Mutual has an exclusive, productive career agency force, which is a competitive advantage. Northwestern Mutual benefits from a strong recruitment program, which has contributed to a consistent flow of younger talent into the career agency system.”
