Northwestern Mutual 2009 annual report

download Northwestern Mutual 2009 annual report

Embed Size (px)

description

The 2009 Northwestern Mutual Annual Report is here! Check it out. Find out how we’ve stayed strong in good times and bad.

Transcript of Northwestern Mutual 2009 annual report

  • 1. G o o d d e c i s i o n s , a lw ay s2009 annual report

2. Always proven: despite the volatilityof 2009, we paid more than twice the lifeinsurance dividends of our nearest competitor. edward J. ZoreJohn e. schlifske Chairman and CEONorthwestern Mutuals 17th Presidentresults in brief(in millions) 2009 2008 ChangePolicyowner dividends$4,715 $4,547 +4%Policyowner benefits paid$6,807 $6,071+12%Individual life insurance in force $1,176,845 $1,124,147 +5%Total revenue $21,366 $21,923 -3%Total assets $167,180 $155,154 +8%Surplus & asset valuation reserve $14,246 $13,424+6%learn more about us:visit northwesternmutual.com | about northwestern mutual 2 3. l ast years struggling economy and financial markets badly jostled families and businesses, and im pleased to assure you northwestern Mutual came through this environment in very good shape.Most people were relieved to see 2009 come to an end. However, northwestern Mutual will look back at 2009 as the year that provided ample evidence of how we thrive during tough times. over the year, we strengthened our financial position, boosted our commitment to our policyowners, and reinforced the value of financial security by increasing our reach.our surplus position confirms our considerable financial strength. at the end of the year, total surplus reached$14.2 billion, an increase ofGood decisions, always more than $800 million over2008. our commitment to ourpolicyowners was evident in our expected dividend payout of more than $4.7 billion our second largest payout ever representing an almost $200 million increase over the previous year.certainly, there are some performance measures were keeping an eye on. total insurance premium and net investment income were down slightly. However, we see signs of improvement. the number of insurance policies we sold increased 6% last year, indicating the strong and growing need for financial security and the trust people place in northwestern Mutual as a financial partner.Finally, i want to personally thank you our 3.3 million policyowners for the privilege of serving you over the course of my 40-year career with northwestern Mutual. i plan to retire later this year and am grateful for the opportunity to lead this outstanding company over the past decade. John schlifske, who has been with our company for more than 20 years and who shares my devotion to excellence, is slated to take over as ceo. you can count on John to carry on our 153-year tradition of exceptional quality on your behalf. edward J. Zore chairman and chief executive officer3 4. Good decisions, alwaysour strength and unwavering stabilityare rooted in our well-made decisionssince mid-2008, the dramatic newsno matter the economic climate, we focusof the economys instability has on remaining consistently strong. in anshaken the nation as a whole. whileunstable world, you can rest assurednewscasts carried stories about theknowing that the responsibility you haveeffects on institutions and markets, entrusted to us is honored. our resultsmost americans felt the impact withinremain stable, protecting you against risk.their homes. the nation talked ofweathering the storm a storm the results speak for themselves. in theseworse than any since the 1930s.extraordinary times, we provided industry- leading value. northwestern Mutual maintained the highest available ratings*we can tell you quite plainlyfor insurance financial strength from allthat northwestern Mutual four major rating agencies. our brand of financial security is about giving peoplewithstood this storm.confidence in their future. our philosophy requires us to standthis year, our clients your fellowalways prepared for troubled times. policyowners speak for us. they talkour business model performsabout how the way we do business brings awell in good times and bad, despitefeeling of security to peoples lives in tryingupheavals such as the civil and worldtimes. Five clients report their experienceswars and the Great depression. we have over the last year or so. they confirmpaid dividends every year since 1872.that they, too, have made good decisions. the work they do with their financialwe are proud that today our financial representatives has helped them weather thestrength remains solid. storm and continue on the path to financial security. they feel on the right track at awe have never cracked under economic time when so many americans have worriedpressure. in fact, we plan for such times. about where they are headed. we have always paid a dividend to our policyowners since 1872.*Third-party ratings are subject to change. 4 5. starting early to secure their futureQ As a young family, how have the economic events of the last year Brian and Jill Koch are just starting out. This young coupleaffected you? understands that life holds risk. In 2005, Brian lost his mom.A weve experienced losses We know what can happen, and we want to be prepared. like so many others have. Butwhile others were losing somuch, we found we were As a result, Brian and Jill own life insurance, disabilityactually doing pretty well in insurance, an IRA and have pre-funded two-year-old Brookesterms of the big picture. the college education. They willingly make sacrifices now, reason: as we watched the controlling spending and investing for the long term. They crisis unfold, we knew a bigpart of our strategy whole faced last years crisis with a new baby and Jill no longerlife insurance was protected. a wage earner. A rising attorney at a national firm, Brian of course, an insurance policy believes in being prepared. Financial Representative Darling is only as good as the company Lie-Nielsen is helping the young family work toward building behind it. we recognized early onthat we dont need glamour; we a secure financial future.need stability. and thats whatnorthwestern Mutual offers. Q Youve made farsighted financial decisions when most young couples arent thinking that way. Why? A when we first startedworking with darling, sheurged us to budget properly anddo the right things to create afoundation for our own and ourdaughters future. Her approachincluded instilling in us the Darling Lie-Nielsen, Financial representative miami, Floridaimportance of setting moneyaside, as well as investing it. our We work very hard preparing for work led to the feeling of comfortwe had during all the financialtheir future, so they can rest easy.upheaval. with her help, weve Theyre doing smart things. 5 6. worked on balancing our needs and wants we need like saying no to some luxuries and taking the actions needed to reach ourbecause we know we have a greater plan. goals. and thats made us confident in theits feeling safe in our financial choices and future as well. we have contingency plans,making sure they reflect the best decisions we have protection in place, and we have afor our daughter. its knowing were laying game plan to meet whatever comes our way. the foundation to achieve future success.Q What does financial security mean to you? weve seen friends laid off and a number of talented people forced to switch jobs A to us, financial security is about ensuring our during this past year. Markets go up, and hard work supports something that lasts. its markets go down; people make and lose less about what we want and more about what money. Financial security has to factor incoping without momLast year, Gregory Johnson lost his wife, Yolanda, at age 37. Now he is raising his daughters,Jamille and Jada, ages 8 and 4, alone. Yolandas disability insurance and her life insurancehave played a major role in helping Greg and the girls through the loss. Greg speaks of FinancialRepresentative Kevin Chadwick who himself lost his mother when he was three years old as a trusted ally. Q As a widowed father, how have theeconomic events of the last yearaffected you?A this financial crisis has been a time of uncertainty for most people, and im no exception. However, in my case, the circumstances were even worse. My wife, yolanda, who was healthy and never smoked, was diagnosed with terminal lung cancer last year. she passed awayKevin Chadwick, Financial representative Dallas, texas shortly thereafter. My life was in disarray. Fortunately, i didnt have to worry financially. yolandas northwestern Mutual I talk to people about thingsdisability income insurance helped paytheyd rather not think about expenses during her illness. and then the company handled the life insurance claimto see through smaller challengesquickly and professionally. to the bigger vision. so even when everyone was questioning their investments and strategies, i felt safe and secure. i knew i was in a good position with northwestern Mutual, a well-grounded company with a solid business model. its tried and true and 6 7. safeguards that protect people against such outside forces or its not going to work. Knowing that we have a planwe always focus on the thats been proven to navigate through tough times, we feel confident welong term, not the latest fads. made the right decisions and that we will be secure in the future. Greg credits Kevin with the advice that has helped the family during this difficult period. Whats more, Greg trusts Kevin to help him prepare for the familys future. enduring. it has stood the test of time with consistent qualities and performance. Q Do you feel financially stabledespite what youve experiencedin the last year?A if i had done it my way, i might not have purchased all the insurance coverageVIeW our ClIent VIDeos onlIne: that turned out to be a lifeline for mynorthwesternmutual.com | about northwestern mutual | our Company | annual report two young daughters and me. without it, we would have been financially devastated. But with help from Kevin and northwestern Mutual, we are financiallyQ What does financial security mean to you? stable and will continue to be so. weve maintained a consistent lifestyle andA it means that i can prior