MILWAUKEE (BUSINESS WIRE), November 23, 2010 - The Board of Directors of the Northwestern Long Term Care Insurance Company approved a dividend payout of $11.2 million on long-term care policies for 20111. Northwestern Long Term Care is one of the few companies to pay a dividend to holders of its policies, effectively reducing future premiums for more than half of long-term care insurance policyowners.
“We’re pleased to continue to deliver value to the LTC policyowners who have placed their trust in this company,” said Northwestern Long Term Care vice president, Steve Sperka. “We are very proud that we have never raised premiums on our in-force policyowners, and that in addition to remaining steady in our pricing, we are able to share our consistent, favorable performance with many of our participating policyowners through dividends.”
The 2011 dividend payout is expected to again lead the industry in total long-term care insurance dividends, and is an increase of $3.2 million over the expected 2010 payout. Dividends are expected to be paid to more than 65,000 long-term care insurance policyowners, with the dividend reducing premiums for some by as much as 31%.
The dividend is just one of the ways Northwestern Long Term Care continues to demonstrate its commitment to providing a steady, stable and lasting value while maintaining the financial strength to pay claims and meet future obligations. For example:
- Northwestern Long Term Care continues to invest in the future of the business, introducing a new long-term care product that was made available in most states this past October.
- Whenever possible and practical, the company makes new products and benefits available to in-force policyowners.
- In the past year, the company has grown its LTC business 22% to become the number three LTC insurance company in terms of new policyowners through the third quarter of 20102.
- Northwestern Long Term Care maintains the best possible ratings from the four major ratings agencies, A.M. Best, Standard & Poor’s, Moody’s and Fitch. Third party ratings are subject to change.
The company's long-term care dividend announcement follows The Northwestern Mutual Life Insurance Company, the parent company of Northwestern Long Term Care, which announced a total dividend payout of nearly $4.9 billion for participating policyowners for the year 2011, an increase of more than $150 million over its expected 2010 payout.
About Northwestern Long Term Care Insurance Company
Northwestern Long Term Care Insurance Company is a wholly owned subsidiary of the Northwestern Mutual Life Insurance Company – Milwaukee, WI (Northwestern Mutual), which has helped clients achieve financial security for more than 150 years. As a mutual company with $1.2 trillion of life insurance protection in force, Northwestern Mutual shares, as appropriate, its gains with policyowners and deliver consistent and dependable value to clients over time. Northwestern Mutual and its subsidiaries offer a holistic approach to financial security solutions including: life insurance, long-term care insurance, disability insurance, annuities, investment products, and advisory products and services. Subsidiaries include Northwestern Mutual Investment Services, LLC, broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company, limited purpose federal savings bank; Northwestern Long Term Care Insurance Company; and Russell Investments.
1 Decisions with respect to the determination and allocation of divisible surplus are left to the discretion and sound business judgment of the Company’s Board. Neither the existence nor the amount of a dividend is guaranteed on any policy in any given policy year. Some policies may not receive a dividend in a particular year or years even while other policies receive dividends.
2 LIMRA, Individual Long-Term Care Insurance, Third Quarter 2010