Milwaukee-based Northwestern Mutual Life Insurance Co. will pay out $5.3 billion in dividends to its policyowners in 2018, a roughly 2 percent increase over the current year.
“Today’s ultra-low interest rates have driven the yields of high-quality fixed-income investments, that many investors rely on for low-risk growth, to historic lows. Yet our products continue to provide superior value that’s undeniably attractive to our policyowners in today’s environment,” said John Schlifske, Northwestern Mutual chairman and chief executive officer.
The payment is an increase from the $5.2 billion the company planned to pay out this year, but is still down from the record $5.6 billion paid in 2016.
Policyowners with whole life insurance, disability insurance and some annuity products are eligible for dividends and can use them to reduce the cost of premiums, take a cash payment, or increase the cash value or death benefit of a life insurance policy.
The company said it expects its dividend payment to be among the highest in the industry for both life and disability income insurance.
“I am incredibly proud of the value we are delivering to our policyowners through dividends,” Schlifske said. “For more than 160 years we’ve been managing our business effectively and acting in the best long-term interest of our clients, so we’re able to offer excellent product value and service for a lifetime of financial security.”
