Standard & Poor's affirms Northwestern Mutual's AA+ rating, highlights its commitment to policyowners

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Jun 02, 2015, 09:00 ET

MILWAUKEE, June 2, 2015 /PRNewswire/ -- Standard & Poor's (S&P) has affirmed Northwestern Mutual's AA+ financial strength rating, highlighting its competitive position, strong financials and effective risk management.

"We expect Northwestern Mutual Life Insurance Co. (Northwestern Mutual) and its subsidiary, Northwestern Long Term Care Insurance Co., (collectively, Northwestern), to maintain its extremely strong competitive position while maintaining extremely strong capital and exceptional liquidity," S&P said in its ratings report.

Following is a summary of S&P's comments.

Competitive positon
"Northwestern has an extremely strong competitive position that stems from its national presence and top market position as one of the leading providers of individual whole life insurance in the United States," said S&P, adding that the company's products are sold through a "dedicated team of sales representatives."

Strong financials
"The company maintains extremely strong capital and strong earnings," said S&P. "Although Northwestern is hampered by low interest rates like most, it continues to experience favorable mortality experience and expense efficiency. The company also benefited from the sale of the Frank Russell Co. in 2014, which added more than $1 billion to surplus."

Effective risk management
"Northwestern Mutual's strong enterprise risk management reflects a positive risk-management culture and positive controls of key risks," said S&P. "The company's management team is well-seasoned and clearly manages for long-term stability and strength, with a commitment to mutuality and the policyholder."

Industry's best ratings
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), November 2014; Moody's Investors Service, Aaa (highest), December 2014; 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 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