The Northwestern Mutual Life Insurance Company: A.M. Best Ratings

A recent press release from BusinessWire announces that A.M. Best Co. has given The Northwestern Mutual Life Insurance Company and its subsidiary, Northwestern Long Term Care Insurance Company (NLTC) a financial strength rating of A++ and an insurer credit rating of "aaa".  This is considered a superior rating for the insurer.

In addition to this rating, A.M. Best also affirmed the debt rating of "aa" on the outstanding $1.75 billion 6.063% surplus notes due 2040 of Northwestern Mutual.  All of the ratings are stable and the outlook is good.  These ratings are reflective of Northwestern Mutual's sizable and mature participating ordinary life insurance company affecting by an improving economy, and a few key market exits.

A.M. Best gives a cautious outlook on long-term care insurance, but Northwestern Mutual is one of the only insurers that provide participating policies and has yet to increase rates on these certain policies since the company entered this business back in 1998.

The main driver for any potential negative feedback from A.M. Best over the near term would involve significant investment losses resulting in a material decline in capital.  Overall, the ratings are promising and this means good things for the insurer as they push through 2012 and the ever-changing economic environment.