Northwestern Mutual Financial Network

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Northwestern Mutual

Type	Mutual
Founded	1857
Headquarters	Milwaukee, Wisconsin, USA
Key people	Edward J. Zore, CEO
Industry	Insurance: Life & Health
Revenue	▲$22 Billion USD (2008)
Employees	5,000(2008)
Website	www.northwesternmutual.com

Northwestern Mutual, a mutual company, offers financial security solutions, including life insurance, long-term care insurance, disability insurance, annuities, mutual funds, and employee benefit services^[1]. Northwestern Mutual financial representatives have access to a network of specialists who together provide guidance on:

• Asset and income protection
• Personal needs analysis
• Investment and advisory services
• Comprehensive financial planning
• Estate analysis
• Trust services
• Education funding
• Business needs analysis
• Retirement solutions
• Employee and executive benefits

Contents 1 History 2 Withstanding Market Turmoil 3 References 4 Notes 5 External links

[edit] History

Northwestern Mutual was founded as the Mutual Life Insurance Company of the State of Wisconsin on March 2, 1857. Originally located in Janesville, Wisconsin, the fledgling company relocated to Milwaukee, Wisconsin in 1859. Shortly after, the company experienced its first two death claims, when an excursion train traveling from Janesville to Fond du Lac derailed near Johnson Creek, Wisconsin, killing fourteen people, two of whom were policyowners. With losses amounting to $3,500 and only having funds on hand of $2,000, then company President Samuel Daggett and Treasurer Charles Nash personally borrowed the needed funds to pay the claims immediately.

Following the accident, President Daggett commissioned a leaflet calling attention to the value of life insurance, which resulted in a rapid increase in the company’s sales and an expansion into new markets. By 1865, the company was operating throughout the Midwest and had made strides along the Eastern Seaboard, prompting the board of trustees to change its name to The Northwestern Mutual Life Insurance Company. This period was also notable due to Northwestern Mutual’s payment of its first dividends to policyowners in 1864 (the company repeated the feat in 1867 and 1870; and has paid dividends annually since 1872).

Throughout the early years of the 20th century, Northwestern Mutual focused on its life insurance product. At the same time, the company worked to increase its transparency. As early as 1871, Northwestern Mutual had taken initial steps in this area by forming an Examining Committee of the Board of Trustees to probe the company’s inner workings. But in 1907, company leaders took the committee one step further by inviting policyowners who were not trustees to do the probing. This unique tradition has continued into the present day with members of the Policyowners’ Examining Committee having unrestricted access to independently evaluate Northwestern Mutual’s operations, management and strategic plans.

As the 20th century progressed other changes also came, but it wasn’t until the late 1960s that Northwestern Mutual would see its most dramatic changes. Beginning in 1969, the company began offering disability income insurance, its first non-life insurance offering. Less than a decade later, a series of retirement annuities were introduced for the employee benefits market. In the 1990s, the company saw further growth with the introduction of its Long Term Care insurance product. During this same period Northwestern Mutual purchased the Frank Russell Company, helping to meet the investment management needs of the firm’s policyowners. As a result of these changes, in 2001, to better reflect the broadening of its product offerings, the company underwent a second identity change to simply Northwestern Mutual.^[2]

[edit] Withstanding Market Turmoil

Northwestern Mutual has consistently maintained its financial strength for over 150 years – even through recent economic turmoil.

The company maintains the highest available ratings for insurance financial strength from all four major rating agencies: A.M. Best^[3], Standard & Poor's^[4], Moody's, and Fitch Ratings.^[5]

An August 2009 report^[6] authored by Moody’s Investor Service suggested that mutual insurers with no stockholders, like Northwestern Mutual, fared better during the market downturn than publicly traded life insurers.

The company is the industry leader in total individual life insurance dividends paid to participating policyowners^[7]. Though dividends are not guaranteed, are reviewed annually and are subject to change, the company has paid life insurance dividends every year since 1872^[8]. The company is the nation's largest direct provider of individual life insurance in the United States^[9], with more than $1 trillion in force.

[edit] References

[edit] Notes

• Our Strength is Your Security, Northwestern Mutual Annual Report (April 2008)"2008 Annual Report". Northwestern Mutual. http://www.nmfn.com/tn/aboutus--fi_annual_report. Retrieved 2009-05-01. 

[edit] External links

• Official site
• Fortune 500: Northwestern Mutual
• 2008 Company Fact Sheet
• 2009 Consistency Counts Campaign Commercials
• 2009 Consistency Counts Scorecard
• October 2008 Q&A with CEO Ed Zore

v • d • e Major Companies Based in Milwaukee Allen-Bradley • Harley-Davidson • Johnson Controls • Journal Communications • Kohl's • Koss • Manpower Inc. • Marcus Corporation • Marshall & Ilsley Corporation • Midwest Airlines (Oak Creek) • Miller Brewing Company • Northwestern Mutual Financial Network • Rockwell Automation

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