Detailed Financial Results
Historicstrengthacross thefundamentals
Detailed Financial Results Overview
In 2025, Northwestern Mutual delivered record results across key financial measures. Once more, the company proved its ability to sustain industry-leading policyowner value and financial strength while continuing to invest in the business for the long-term benefit of policyowners.
The company posted record revenue of $41 billion, while paying or reserving for future policyowner benefits a total of $27 billion, and generating a record operating gain before dividends and taxes (OGBDT) of over $10 billion. As the source of both dividends and surplus, OGBDT is a crucial measure for our company that has been on a strong upward trend in recent years.
Record OGBDT enabled Northwestern Mutual to deliver on what is always a top priority: product value. In October, the company again demonstrated its commitment to policyowners with the announcement of the industry's largest estimated dividend payout, $9.2 billion. In the past three years, Northwestern Mutual's annual dividend has grown nearly $2.4 billion, the largest increase in company history and unmatched in the industry. That increase alone is nearly the same amount the company's closest competitor paid—in total—to its policyowners in 2025. Our mutual structure keeps value aligned with policyowners.
Our financial strength remains unsurpassed in the industry. In 2025, Northwestern Mutual received the highest financial strength ratings available to a U.S. life insurer for the 35th consecutive year from the four major rating agencies: Fitch Ratings, A.M. Best, Moody's Ratings, and S&P Global Ratings. In addition, we entered 2026 with over $42 billion in surplus, another record that will enable us to navigate the way forward with confidence and focus on the long term.
Institutional investment performance was a key contributor to these results, supported by the team's asset allocation strategy, active management, and rigorous asset-liability management. The company's highly diversified General Account portfolio now exceeds $335 billion, and total company assets are approaching $400 billion. On the Wealth side, the company's retail investment client assets were up more than 20 percent year over year, surpassing $400 billion, reflecting market appreciation and clients increasingly turning to their Northwestern Mutual advisors for wealth management.
Northwestern Mutual's exceptional financial health enables the company to continue to thrive through challenges, honor its commitments, evolve for the future, and deliver the industry-leading value policyowners deserve.
Todd M. Jones
Executive Vice President and Chief Financial Officer
Summary of operations
(Statutory basis, in millions)
For the years ended December 31
2025
2024
Premiums
$24,691
$23,318
Net investment income✕Net investment income increased 12%, driven mainly by higher yields on fixed-income investments (bonds and mortgage loans), asset growth, and higher income distributions from subsidiaries.
15,485
13,815
Other income
1,043
976
Total revenue✕Total revenue (premiums + net investment income + other income) reached an all-time high of over $41 billion.
41,219
38,109
Policyowner benefits paid
14,715
15,956
Increase in benefit reserves
11,995
9,093
Commissions and expenses
4,379
4,245
Total benefits and expenses
31,089
29,294
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 2024.
10,130
8,815
Policyowner dividends✕Guided by mutuality, our objective remains to pay the highest possible dividends consistent with maintaining unquestionable long-term financial strength.In 2025, policyowner dividends increased 12%. While dividends are reviewed annually and not guaranteed, Northwestern Mutual has paid dividends every year since 1872.
9,275
8,256
Gain before taxes
855
559
Income tax (benefit) expense
(24)
(98)
Net gain from operations
831
657
Net realized capital (losses) gains
(334)
(96)
Net income
$497
$561
Summary of financial position
(Statutory basis, in millions)
As of December 31
2025
2024
Bonds
$210,008
$201,544
Mortgage loans
60,066
57,078
Policy loans
21,044
20,039
Common and preferred stocks
3,768
3,340
Real estate
2,963
2,791
Other investments
35,715
30,865
Cash and short-term investments
5,089
8,052
Total investments
338,653
323,709
Other assets
15,966
13,943
Separate account assets
44,395
40,672
Total assets
$399,014
$378,324
Policy benefit reserves
$277,135
$264,219
Deposit funds
17,453
15,798
Policyowner dividends payable
9,260
8,255
Other liabilities
8,188
9,256
Separate account liabilities
44,395
40,672
Liabilities (excluding AVR)
356,431
338,200
Asset valuation reserve (AVR)
9,184
8,350
Surplus
33,399
31,774
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 will 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, take advantage of potentially higher-yielding investments, and maintain the industry's highest available financial strength ratings. The company continues to be financially strong, with a record surplus, including asset valuation reserve (AVR), of more than $42 billion.
42,583
40,124
Total liabilities and surplus
$399,014
$378,324