Northwestern Mutual revenue reaches all-time high at $35B

By Doug Bailey

In what a top executive humorously quipped “exceptionally boring,” Northwestern Mutual again reported annual record sales, earnings, and dividends for 2022 in a year that saw many of its peers struggle to post mediocre returns.

The 166-year-old financial services company said its revenue reached an all-time high or nearly $35 billion for the year, up nearly 3% from the previous year, with permanent life insurance sales reaching $1.1 billion, also a company record. Its total surplus of more than $37 billion was also a milestone despite the largest equity declines in more than 14 years. It’s expected 2023 dividend to policyholders of $6.8 billion, would be the company’s largest payout ever. It’s gains before dividends and taxes rose more than 17% from the previous year, to $7.3 billion.

“This past year we again achieved remarkable milestones as a company, all while managing through historic economic and market headwinds,” said John Schlifske, CEO of Northwestern Mutual. “Just as important, we continued to empower our clients to confront uncertainty with confidence, through a comprehensive planning experience, guided by our trusted financial advisors, and backed by the unsurpassed product value and strength of the company.”

Though the company has been trending with year-after-year record financial performance, Northwestern Mutual executives said they were particularly buoyed by 2022 results because of the year’s tumultuous conditions.

“...Our goal is to thrive not survive when it comes to disruptions that are out there.”Todd Jones, CFO, Northwestern Mutual

“It's so much more impressive from our standpoint to be able to do what we did in 2022, than 2021,” said Northwestern Mutual CFO Todd Jones. “We are the highest rated company in the industry and so having that backdrop our policy owners can understand that we're going to be here through thick and thin. And our goal is to thrive not survive when it comes to disruptions that are out there.”

Jones says Northwestern Mutual sees itself as more than an insurance company but a comprehensive financial services company that benefits from a history of long-term strategizing, management, and discipline, as well as the mutual structure in which policyholders are shareholders.

“We're a mutual, and we report on a statutory basis,” Jones said. “It does allow us to manage for the long term, and if there’s an industry that should manage for the long term, it's ours.”

Recruiting, development cited

The company also credited its investment in new advisor recruiting and development in which it ended the year with nearly 7,500 full-time financial professionals, the largest and most diverse group in the company’s history. It also highlighted its end-to-end digital method of applying for, approving and delivering term and whole life products in as few as two days.

It also introduced several new insurance products, including a combination life insurance/long-term care hybrid product, and enhanced disability solutions that is said was the most “robust now available” and bolstered the company’s competitive positions in the disability insurance market.

Jones pointed to the company surplus as a solid sign of its strength, which might be overlooked item in comparison to other record-breaking financials.

“Our surplus grew $45 million, which isn't a lot in a $37 billion number,” he said. “But that was with equity markets down significantly. And with our growth index, it's important that we continue to grow that surplus, as it really does impact or reflect on our ratings.”

All four major rating agencies – A.M. Best, Fitch Ratings, S&P Global Ratings and Moody's – awarded the company their highest available financial strength ratings available to any U.S. insurer. This makes Northwestern Mutual one of only six companies across all industries to be so recognized by Moody's, the company said.

Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at [email protected].