Detailed Financial Results Overview

2024 was historic for the rapid pace of dividend and surplus growth, respectively supporting Northwestern Mutual's superior product value and exceptional financial strength. For us, both—not either/or—are perennial top priorities.

This past fall, we declared a total expected dividend payout of $8.2 billion1 for 2025, an increase of $885 million over 2024. This marks our largest-ever total dividend payout increase, resulting in an expected dividend payout that is more than triple the size of our closest competitor. At the same time, we grew our surplus position, a key factor in our financial strength, by over $1.9 billion,2 surpassing the $40 billion mark for the first time in our 167-year history. Our unsurpassed financial strength was externally validated by all four major rating agencies, which awarded the company the highest financial strength ratings available to any U.S. life insurer3 for the 34th consecutive year.

Northwestern Mutual is as strong as it has ever been, and it is the strongest company in the industry. This ensures we will not just survive but thrive through challenges and always be there when you need us.

Total revenue at the end of 2024 reached a record $38 billion, $2 billion more than 2023. This 5.5% growth made 2024 our second-strongest year of revenue growth in the past decade. Revenue was bolstered by higher interest rates driving growth in investment income, along with continued strong persistency—policyowners who remain with Northwestern Mutual year after year. As the largest direct provider of life insurance in the United States, with nearly $2.4 trillion in death benefits in force, our 97% persistency rate is exceptional.4

As you review our 2024 Statements of Operations and Financial Position, you will see that your company is exceptionally healthy and well positioned to excel for policyowners now and for decades to come.

Todd Jones

Executive Vice President and Chief Financial Officer

Summary of operations

(Statutory basis, in millions)

For the years ended December 31

2024

2023

Premiums✕Insurance premiums increased 6% in 2024 due to strong premium persistency and higher income annuity sales.Strong persistency (based on Northwestern Mutual client data) indicates policyowner satisfaction and loyalty, leading to stable premiums.

$23,318

$22,003

Net investment income✕Net investment income increased 4% mainly driven by higher fixed-income investment (i.e., bonds and mortgage loans) yields and asset growth.

13,815

13,224

Other income

976

896

Total revenue✕Total revenue (premiums + net investment income + other income) reached an all-time high of over $38 billion.

38,109

36,123

Policyowner benefits paid

15,956

12,818

Increase in benefit reserves

9,093

10,966

Commissions and expenses

4,245

4,216

Total benefits and expenses

29,294

28,000

Gain before dividends and taxes✕Operating Gain Before Dividends and Taxes (OGBDT) contributes to both dividends and surplus. It reflects our performance and is what is left after we have paid and reserved for policyowner benefits relative to total revenue. Higher net investment income was the main driver of higher OGBDT compared to 2023.

8,815

8,123

Policyowner dividends✕Our objective continues to be to pay the highest possible dividends consistent with maintaining unquestionable long-term financial strength in a manner guided by mutuality.In 2024, policyowner dividends increased 12%. While dividends are reviewed annually and not guaranteed, Northwestern Mutual has paid dividends every year since 1872.

8,256

7,371

Gain before taxes

559

752

Income tax (benefit) expense

(98)

5

Net gain from operations

657

747

Net realized capital (losses) gains

(96)

(36)

Net income

$561

$711

The summarized financial statements above were prepared on the statutory basis of accounting. Financial statements prepared on the statutory basis of accounting differ materially from financial statements prepared in accordance with generally accepted accounting principles ("GAAP").

Summary of financial position

(Statutory basis, in millions)

As of December 31

2024

2023

Bonds

$201,544

$191,692

Mortgage loans

57,078

53,361

Policy loans

20,039

19,003

Common and preferred stocks

3,340

2,852

Real estate

2,791

2,877

Other investments

30,865

29,404

Cash and short-term investments

8,052

8,826

Total investments

323,709

308,015

Other assets

13,943

12,598

Separate account assets

40,672

38,216

Total assets

$378,324

$358,829

Policy benefit reserves

$264,219

$253,960

Deposit funds

15,798

13,072

Policyowner dividends payable

8,255

7,370

Other liabilities

9,256

8,016

Separate account liabilities

40,672

38,216

Liabilities (excluding AVR)

338,200

320,634

Asset valuation reserve (AVR)

8,350

7,885

Surplus

31,774

30,310

Surplus and AVR✕Surplus is the amount of capital we hold over and above our policyowner benefit reserves to cover the unexpected. When challenges arise, a healthy surplus level helps ensure we'll be here for the long term, paying policyowner benefits and preserving product value. It also gives us the flexibility to proactively manage the company with a long-term view and take advantage of potentially higher-yielding investments while maintaining the industry's highest financial strength ratings available. The company continues to be financially strong, with a record surplus—including surplus and the asset valuation reserve—of more than $40 billion.

40,124

38,195

Total liabilities and surplus

$378,324

$358,829

The summarized financial statements above were prepared on the statutory basis of accounting. Financial statements prepared on the statutory basis of accounting differ materially from financial statements prepared in accordance with generally accepted accounting principles ("GAAP").