Northwestern Mutual Life Insurance Co. is paying a record $6.2 billion dividend to policyowners as the pandemic continues to cause economic turmoil.
Policyowners with Northwestern Mutual will receive an estimated $6.2 billion through the 2021 dividend payout, the company announced in a news release Thursday.
The payout tops the 2019 dividend payout of $6 billion.
Other payouts for term life insurance, individual disability income insurance and portfolio income annuities are also the highest in the company's history. Northwestern Mutual has paid a dividend to its policyholders every year since 1872.
"This record dividend payout is a sign of our commitment to our policyowners," John E. Schlifske, chairman, president and CEO of Northwestern Mutual, said in a news release. "When the pandemic began to disrupt our world in early 2020, Northwestern Mutual was strong, prepared, and ready to navigate the challenges and continue delivering strong results to help our clients become more financially secure."
Dividends can be received in cash or used to increase cash value of a policy and reduce the cost of premiums.
The pandemic did not deter business for Northwestern Mutual. The company has had a record number of new clients, a record number of permanent life insurance plans with $1.9 trillion of protection for 3.9 million people. Northwestern Mutual hit a record number of financial professionals and net cash flows.
Northwestern Mutual has nearly $175 billion in client assets.
"Because of our financial strength, we were able to make significant investments when markets dropped to low levels earlier this year, and as markets have rebounded, those investments are already paying off," Schlifske said in the news release. "Our ability to make opportunistic, strategic investments, combined with our long-term, level-headed view towards expenses and underwriting, means we are positioned to thrive in all economic environments."
Milwaukee-based Northwestern Mutual has $290.3 billion in total assets, $29.9 billion in revenue and more than 4.6 million people with insurance, annuities and advisory services.