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Life Health > Life Insurance > Permanent Life Insurance

Insurers Begin to Post 2024 Policy Dividend Figures

By Allison Bell

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Three policyholder-owned life insurers could increase their total dividend payments on participating insurance policies by about 10% in 2024.

The insurers — MassMutual, Northwestern Mutual and Thrivent — have announced plans to pay about $10 billion in dividends next year, up from $9.1 billion in dividends this year.

What it means: An often-overlooked slice of clients’ portfolios could work harder to make the pie grow.

Mutual life insurers: Mutual life insurers, or insurers owned by their policyholders, often pay dividends to their policyholder owners to reflect the gains resulting both from a dividend interest rate related to investment earnings and insurance underwriting activities.

Mutual life insurers are best known for paying dividends on whole life insurance but may also pay dividends on other types of policies, such as disability insurance and long-term care insurance.

Insurers always emphasize that the projected dividend payments are not guaranteed.

The 2023 dividends: A year ago, the combined 2023 dividend payout announced by MassMutual, Northwestern Mutual and Thrivent was about 12% higher than the total announced for 2022.

Here’s what those three companies are saying now about their 2024 dividends.

MassMutual: The company plans to increase the dividend interest rate to 6.1%, from 6%, and the total dividend payout to $2.2 billion, up from $1.9 billion.

Northwestern Mutual: The company plans to increase the dividend interest rate to 5.15%, from 5%, and the total dividend payout to $7.3 billion, from $6.8 billion. The projected 2024 payout includes $6.1 billion in dividends for holders of whole life policies, $550 million for holders of disability insurance policies and $240 million for holders of annuities.

Thrivent: The company plans to increase the total dividend payout to $542 million, up from $400 million. The dividend interest rate was not available.

Coming up: The list of insurers with dividends yet to be announced includes Ameritas, Guardian, Nassau, New York Life and Penn Mutual.

Credit: Diego M. Radzinschi/ALM

Allison Bell

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