Northwestern Mutual Secures Elite Financial Strength Ratings for 35th Year in a Row

For the 35th consecutive year, Northwestern Mutual has achieved distinguished financial strength ratings from all four major ratings agencies in the United States. This remarkable achievement underscores the company's commitment to financial stability and exemplary service to its clients.

Consistent Recognition from Top Agencies

Recently, A.M. Best Company reaffirmed Northwestern Mutual's prestigious rating of "A++," the highest possible designation for a life insurance provider in the U.S. This follows earlier commendations from Fitch Ratings, Moody's Investors Service, and SP Global Ratings, all of which awarded top marks to the company. These ratings highlight Northwestern Mutual as the leading life insurer with the highest financial strength standing within the industry.

Tim Gerend, the company’s chairman, president, and CEO, emphasizes that strong financial health is a core tenet of Northwestern Mutual's mission. With over $42 billion in surplus and an impressive average of $2.5 billion in monthly investable cash flow, the company is well-positioned to fulfill its commitments to clients, invest strategically, and deliver long-term value - even amid fluctuating market conditions.

Leveraging Financial Strength for Client Benefits

This year, Northwestern Mutual's total investment portfolio reached a staggering $335 billion. A significant portion of this General Account is invested in low-risk, high-quality assets. However, the company's robust financial foundation permits greater allocations into higher-risk investments, aiming for enhanced returns. Currently, approximately 19% of the General Account is directed towards higher-risk assets, well above the industry standard.

Additionally, Northwestern Mutual's solid financial standing allows for substantial investments in illiquid assets, which can yield higher long-term returns. Approximately 50% of the General Account is in illiquid assets, showcasing the company's strategic approach towards enhancing policyowner value.

The dividends received by clients serve as a primary benefit derived from the successful performance of the General Account. Northwestern Mutual anticipates its dividends in 2026 will set a record at $9.2 billion, reflecting a $2.4 billion increase over the past three years - the most substantial rise in the company's history and unmatched in the industry.

The company’s financial surplus has also reached an unprecedented $42 billion this year. This financial cushion enables Northwestern Mutual to invest with foresight and take advantage of emerging opportunities, maintaining superior financial ratings at the same time.

A Cycle of Financial Success

Gerend states, “Financial strength creates a perfect circle of success for our company, clients, and advisors.” As financial strength enhances the value delivered to clients, more individuals seek out the firm’s advisors for financial security. This influx of cash flow allows Northwestern Mutual to strategically invest on behalf of its clients, adding further value to dividends and surplus, which in turn strengthens its financial standing and policy value.

Ratings Agencies Acknowledge Excellence

Each ratings agency that has recognized Northwestern Mutual's strength has elaborated on their rationale for these elite designations. A.M. Best highlighted the company's highly diversified investment portfolio and effective asset/liability management strategy.

Fitch Ratings noted the firm's exceptional capitalization and competitive edge in the life insurance market, attributing it to a successful distribution system and a solid block of traditional life insurance. Similarly, Moody's Investors Service referred to Northwestern Mutual's robust financial profile and resilience supported by consistent investment performance.

SP Global Ratings commended the company's excellent financial risk profile, bolstered by a solid capital adequacy framework even under stress scenarios, showcasing the firm’s commitment to upholding industry-leading standards.

A Legacy of Financial Security

Having spent over 165 years dedicated to helping individuals and businesses achieve financial security, Northwestern Mutual utilizes an integrated planning approach that combines the expertise of its financial professionals with industry-leading products. The company proudly manages nearly $700 billion in total assets across its institutional and retail investment portfolios, serving over five million people with various products ranging from life insurance to investment advisory services.

In conclusion, Northwestern Mutual's unwavering commitment to financial strength is not merely a label; it enhances the lives of millions by providing peace of mind through stability and growth. With accolades that affirm its status as a leader in the life insurance space, the company continues on its course, poised to build upon its legacy for years to come.