Fitch affirms Northwestern Mutual's AAA rating, highlights performance of its diversified investment portfolio
MILWAUKEE, Sept. 24, 2015 /PRNewswire/ -- Fitch Ratings has affirmed the AAA financial strength rating of Northwestern Mutual and its subsidiary Northwestern Long Term Care Insurance Company, citing the company's industry-leading position in the marketplace and key competitive advantages.
AAA is the highest possible rating from Fitch, an indication of Northwestern Mutual's strong financial position and ability to meet policyowner commitments.
"Fitch's ratings reflect Northwestern's leading competitive position in the U.S. individual life insurance market, extremely strong balance sheet fundamentals and stable earnings profile," Fitch said in its news release. "Fitch considers Northwestern's key competitive advantages to include its successful distribution system, large and stable block of traditional life insurance and expense advantage relative to peers."
Well positioned in low rate environment
Fitch believes Northwestern Mutual is well positioned in today's low interest rate environment, due to its liability profile and long-term, diversified investment strategy.
"Fitch views Northwestern's exposure to interest rate risk as relatively modest given the company's liability profile, which largely consists of participating whole life insurance reserves that incorporate limited guarantees," the rating agency said.
"Northwestern manages a well-diversified, liquid investment portfolio that has performed relatively well in terms of credit and return over the last three years compared to peers," added Fitch, noting that the company's investment strategy takes a "long-term view" of its investment portfolio and product liabilities.
Industry's best ratings
With this latest affirmation, Northwestern Mutual continues to have the highest financial strength ratings awarded to any life insurer by all four of the major rating agencies: A.M. Best Company, A++ (highest), May 2015; Fitch Ratings, AAA (highest), September 2015; Moody's Investors Service, Aaa (highest), August 2015; and Standard & Poor's, AA+ (second highest), May 2015. Ratings are subject to change.
For more information, see the Our Commitment to Financial Strength page on northwesternmutual.com.
About Northwestern Mutual
Northwestern Mutual has been helping families and businesses achieve financial security for nearly 160 years. Our financial representatives build relationships with clients through a distinctive planning approach that integrates risk management with wealth accumulation, preservation and distribution. With $230 billion in assets, $27 billion in revenues, nearly $90 billion in assets under management in our investment products and services, and more than $1.5 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to 4.3 million people who rely on us for insurance and investment solutions, including life, disability income and long-term care insurance; annuities; trust services; mutual funds; and investment advisory products and services. Northwestern Mutual is recognized by FORTUNE magazine as one of the "World's Most Admired" life insurance companies in 2015.
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI, and its subsidiaries. Northwestern Mutual and its subsidiaries offer a comprehensive approach to financial security solutions including: life insurance, long-term care insurance, disability income insurance, annuities, life insurance with long-term care benefits, investment products, and advisory products and services. Subsidiaries include Northwestern Mutual Real Estate Investments, LLC; 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; and Northwestern Long Term Care Insurance Company.
SOURCE Northwestern Mutual
John Gardner, (800) 323-7033, firstname.lastname@example.org
9/24/2015 10:49:00 AM