A.M. Best Assigns Rating to Northwestern Mutual Life Insurance Company’s New Surplus Notes

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a debt rating of “aa” to the $1.75 billion 6.063% 30-year surplus notes recently issued by The Northwestern Mutual Life Insurance Company (Northwestern Mutual) (Milwaukee, WI). The rating outlook is stable. The existing financial strength and issuer credit ratings of Northwestern Mutual and its affiliate are unchanged.

The proceeds from the offering will be used by Northwestern Mutual to provide additional liquidity and capital cushion and for general corporate purposes. A.M. Best notes that the company has no other surplus notes, and the pro forma adjusted financial leverage and interest coverage ratios are expected to remain well within the guidelines for the company’s current ratings.

The rating reflects Northwestern Mutual’s leading market position in the U.S. life insurance industry, its highly productive career agency force and its superior risk-adjusted capitalization. The ratings also consider Northwestern Mutual’s very favorable liability profile, solid operating earnings and commitment to mutuality. Partially offsetting these positive rating factors is Northwestern Mutual’s above-average aggregate exposure to commercial real estate, below investment grade bonds and equities (both public and private) and the decline in the retention rate of financial representatives in the Northwestern Mutual Financial Network in 2009.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts:
Michael Adams, 908-439-2200, ext. 5133
[email protected]
or
Thomas Rosendale, 908-439-2200, ext. 5201
[email protected]
or
Public Relations:
Rachelle Morrow, 908-439-2200, ext. 5378
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
[email protected]

Source: A.M. Best Co.