Northwestern Mutual Sets Off 2025 Dividend Race

Northwestern Mutual has started mutual life insurers’ dividend announcement season by predicting that it will pay $8.2 billion in dividends to its policyholder owners in 2025.

Holders of eligible life insurance policies, disability insurance policies and annuities could get 12% more payments next year than they’re on track to get this year.

The dividend scale, or interest rate used in the dividend calculations, will increase to 5.5%, from 5.15%.

“We’re pretty excited,” Todd Jones, the company’s chief financial, said.

This will be the first time Northwestern Mutual will pay more than $8 billion in dividends, he said.

What it means: Life insurers invest mainly in high-grade corporate bonds, mortgage-backed securities and other assets designed to appeal to sophisticated, long-term investors.

Strong life insurance dividends suggest that sophisticated, cautious retirement savers are also doing well.

Dividend increases can also have a direct effect on clients with the policies that get the dividends.

Mutual insurers: Mutual insurance companies are insurers that are owned by some or all of the policyholders.