Northwestern Mutual Life Insurance Company has been serving the American people through some of the major financial upheavals that have hit the nation since 1857. From the Civil War, to the stock market crash of 1929, and the Great Depression that followed. The company has seen two world wars and a number of major economic recessions, and it has remained stable and financial strong, able to take care of its customers continuously.
Now that the world has become so much smaller through globalization and the emergence of international companies in local markets, Northwestern Mutual Life remains to be a reliable partner in financial planning and protection from financial risks. The company is in a good position to help people achieve financial security while competently managing their financial risk in a well connected but complex world.
Northwestern Mutual draws much of its success from the diversity of its customers. The company is committed to serving and representing the marketplace. It does so through the enhanced engagement of experts who bring their unique ideas, perspectives, and beliefs. Northwestern policies are marketed by highly trained brokers and agents who have the expertise in conducting financial needs analysis so customers can rest assured that their personal circumstances are taken into account when computing the your coverage.
Northwestern Mutual takes great pride in being a mutual company. It believes that the first step to success is doing what is right. It focuses on the long-term financial needs and interests of its clients. Being a mutual company enables Northwestern Mutual to preserve its financial strength and succeed continuously.
Operating as a mutual company has certain differences from the typical insurance company. For starters a mutual company's main focus is serving its policyholders as opposed to public companies that would divide its focus between its shareholders and its policyholders.
Whether it is insurance or investment product you are purchasing, the principles of mutuality applies to you. Northwestern Mutual operates the way a cooperative would. The company sets aside a comfortable margin for surplus and reserves annually while the rest of the profit is given back to policyholders in the form of dividends. The company paid out nearly $4.9 billion in dividends to its policyholders in 2011. This is the biggest insurance dividends payout in the industry.
Unlike other insurance companies that offer perks to attract new policyholders, Northwestern Mutual extends new policy benefits to all its new and existing policyholders. Because the company has no existing shareholders, it can afford to adopt a long-term investment strategy for its general investment portfolio. This strategy has translated into higher productivity and returns as well as greater value for the customers. The company follows the same investment philosophy in taking care of their customers' wealth. The focus on the long-term teaches customers the fundamentals of the investment discipline that involves prudent risk management. The company also adheres to vigorous management of costs. Its expenses of doing business in its principal products have been kept at about a third of the industry average. These savings add on to the dividends to be divided among policyholders.
Northwestern Mutual is proud to post a 96% persistency rate on life insurance policies in force. This is the best indicator of the satisfaction of the company's customers. The continuous patronage of its policyholders enables the company to have a steady flow of cash and the funds for investing, which again contributes to the dividends.
The company has very simple goals of providing value to customers through high quality insurance and investment products. These superior products are free of fads and gimmicks and are upgraded in periodically to offer improved benefits at more affordable costs. Northwestern Mutual has held on to its values of doing the right thing for policyholders, building long-term relationships to meet client needs, building and preserving financial strength, and offering world-class products and expert guidance which address the changing needs.
The company has worked hard at consistently keeping its promise to do the right thing for its policyholders. From the Great Depression to the tragedy of September 11, 2001, Northwestern Mutual has never faltered at paying out the claims of its policyholders needing financial assistance. These days the company has leveraged technology, demographics, regulations, and the speed of doing business to continue offering high quality and affordable insurance and investment products to Americans.