AM Best Assigns Issue Credit Rating to The Northwestern Mutual Life Insurance Company’s New Surplus Notes

AM Best has assigned a Long-Term Issue Credit Rating of aa to the $600 million 3.625% surplus notes due 2059 issued by The Northwestern Mutual Life Insurance Company (Northwestern Mutual) (Milwaukee, WI). The outlook assigned to the Credit Rating (rating) is stable. The existing ratings of Northwestern Mutual and its subsidiary are unchanged.

The proceeds from the offering will be used for general corporate purposes. The size of the issuance may increase as part of an exchange offering for its existing 6.063% surplus notes due 2040. The newly issued surplus notes, in addition to its existing surplus notes, will remain subordinate to policyholder liabilities and will require regulatory approval for payments.

As only approximately $600 million of the new issuance will be additive to financial leverage, interest coverage, and leverage ratios will not be impacted materially in AM Bests view, and the pro forma adjusted financial leverage will remain within AM Bests guidelines and methodology.

The underlying rating of Northwestern Mutual reflects its balance sheet strength, which AM Best categorizes as strongest, as well as its very strong operating performance, very favorable business profile and very strong enterprise risk management.

This press release relates to Credit Ratings that have been published on AM Bests website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.

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Erik Miller

Associate Director

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Christopher Sharkey

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Rosemarie Mirabella


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Jim Peavy

Director, Public Relations

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