Northwestern Mutual

About Company
• Northwestern Mutual was founded as Mutual Life Insurance Company in 1857

• In 2001, it expanded its products and offerings by launching Northwestern Mutual Wealth Management Company

• Provides consultation on wealth and asset income protection, fee-based financial planning, education planning,
retirement planning, investment advisory services, trust and private client services, life insurance, disability insurance,
long term care and annuities

• A Fortune 500 company that provides a wide range of financial services to more than 4.5 million people through a
network of more than 9000 financial professionals
Financial Highlights
Life Insurance Protection Total Premium Revenue
$ 1.7 trillion $ 17.9 billion
New Life Insurance Premium Total Revenue

$ 886 million $ 28.1 billion

Client AUM Claims paid

$ 125 billion $ 4.6 billion

Forbes 500
Total Assets Total Lives Covered
company with
$ 285 billion 3.9 million
best ratings
Dividend Payout for financial Persistency

$ 5.3 billion strength 96% approx.

Product Portfolio - Insurance

Whole • Disability insurance replaces a

• Cover for life with guaranteed
Disability portion of an individual’s income
Life payout in case of death
• Cash value grows tax-deferred Insurance • Short term, covers only a portion of
Insurance income and often subject to tax

• Quick quality care with freedom to

Universal • Life cover with flexibility in death
either stay at home or get care at a
benefit and premiums Long Term
Life good facility
• 2 options – Custom Life Care • Help to prevent losing lifetime
Insurance Accumulator or Single Premium
savings and leave an inheritance

• Great source of regular retirement

• Coverage for specific period of
Term Life income
time – short term and affordable Annuities
Insurance • Option to convert it to whole life
• Supplements funds for an individual’s
retirement
Business Model (1/2)
Mass market business model with no
Customer Segment Target customers seeking insurance
differentiation between customers

Offers a wide variety of options- • annuities,

• life insurance, • investment advisory products,
Accessibility • long term care insurance, • financial services
• disability income,
• investments,

Special Investigations Unit (SIU) to • It also works to assist law

Risk • prevent, enforcement authorities
Value proposition • detect, in prosecuting confirmed
reduction
• investigate, offenders.
• resolve potential fraud

Highest financial strength ratings by Won honors,

• A.M. Best Company (A++), • ranking at #100 on the
Brand/status • Fitch Ratings (AAA), and 2016 Fortune 500
• Moody's Investors Service (Aaa). • "World's Most Admired" life
insurance companies by Fortune.
Business Model (2/2)
Promotes through
Main channels
• Social media pages
• Websites
Channels • Sports sponsorships
• Direct sales
• Participation in conferences

CR is primarily Northwestern Mutual • Commentaries Studies and Research

• Self-service Learning Centre includes • Podcast section conducts
Customer Relationship • Automated • Articles • Website studies and polls on
• Limited interaction • White papers • Educational videos financial topics
with employees • Brochures • calculators

Premium Revenue from the Net Investment Income Other Income

sale of • Consists of dividends, • Consists of ceded
Revenue Stream • Universal life insurance • Interest and prepayment fees reinsurance expense
• Disability insurance • Received or accrued on bonds, allowances
• Long-term care insurance • Mortgage loans, • various insurance
• Annuities • Preferred and common stocks, policy charges.
• Policy loans, and
• Other investments.
Distribution Model – Distinguishing Features
• Selective recruitment - Lead to contact
Business Representative
ratio of 100:1
Advisor • Major business from vintage advisors
• Knowledge of financial products
• Comprehensive training to FR & FA
• Commission + Persistency fee
Northwestern • Life Insurance • Campus Recruitment • Focus on relationship
Mutual • Wealth • Higher Compensation • Advisor handholds young recruits for
Management • Extensive knowledge several years, then book is passed on
of financial products • Extensive support to advisors

Business SM • Higher Recruitment – No. of ICs

IC • Business from New IC - significant portion
• Limited knowledge of financial products
• Digital Training to ICs a limitation
• Focus on transaction
• Limited support to agents in terms of
BALIC Life Insurance • Hiring Matrix
business development
• Lower Fixed Pay
Digital Edge
• IT rebranded from Information Services to Client and Digital Experience (CDX)

• Some departments taken out of CDX and put in other functional areas

• Focus on end-to-end experience of client, advisors and employees

• Using digital technologies in concert with financial advisors to deliver a distinctive client experience

• Directory of all Financial Representatives & Advisors available on company website – with location and contact details

• Separate website for every Financial Representative & Advisor on company’s domain

• Presence on Social Media:

• Regular sharing of relevant posts, recruitment updates, marketing campaigns, etc. on Facebook
• Several Twitter handles, function specific and region specific – tweets important news about company and industry