67091 NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY ...

*67091201620100100*

LIFE AND ACCIDENT AND HEALTH COMPANIES - ASSOCIATION EDITION

ANNUAL STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2016 OF THE CONDITION AND AFFAIRS OF THE

The Northwestern Mutual Life Insurance Company

NAIC Group Code Organized under the Laws of

0860

0860

(Current) (Prior)

Wisconsin

NAIC Company Code 67091 Employer's ID Number , State of Domicile or Port of Entry

39-0509570 WI

Country of Domicile

United States of America

Incorporated/Organized

03/02/1857

Commenced Business

11/25/1858

Statutory Home Office

720 East Wisconsin Avenue

,

(Street and Number)

Milwaukee , WI, US 53202-4797 (City or Town, State, Country and Zip Code)

Main Administrative Office

Milwaukee , WI, US 53202-4797 (City or Town, State, Country and Zip Code)

720 East Wisconsin Avenue (Street and Number) ,

414-271-1444 (Area Code) (Telephone Number)

Mail Address

720 East Wisconsin Avenue

,

(Street and Number or P.O. Box)

Milwaukee , WI, US 53202-4797 (City or Town, State, Country and Zip Code)

Primary Location of Books and Records

Milwaukee , WI, US 53202-4797 (City or Town, State, Country and Zip Code)

720 East Wisconsin Avenue (Street and Number) ,

414-271-1444 (Area Code) (Telephone Number)

Internet Website Address



Statutory Statement Contact

Kevin John Abitz

(Name)

kevinabitz@

(E-mail Address)

, ,

414-665-5655 (Area Code) (Telephone Number)

414-625-5655 (FAX Number)

Chairman and CEO

SVP, General Counsel and Secretary

John Edward Schlifske Raymond Joseph Manista

OFFICERS

VP and Controller

SVP and Chief Actuary

Gregory Charles Oberland, President Timothy Gerald Schaefer, Executive Vice President

Timothy John Gerend, Senior Vice President Bethany Marie Rodenhuis, Senior Vice President

Rebekah Buchman Barsch, Vice President Eric Paul Christophersen, Vice President Karl Gabriel Gouverneur, Vice President

Stephanie Ann Lyons, Vice President Rebecca Lynn Porter #, Vice President Sarah Renee Schneider, Vice President David Grove Stoeffel, Vice President Kamilah Danette Williams-Kemp, Vice President

Todd Owen Zinkgraf, Vice President

OTHER

Michael Gerard Carter, EVP and CFO Leslie Barbi, Senior Vice President

John Mitchell Grogan, Senior Vice President Calvin Robert Schmidt, Senior Vice President

Blaise Cartier Beaulier, Vice President Sheldon Irwin Cuffie #, Vice President Thomas Charles Guay, Vice President John William McTigue #, Chief Distribution Advisor Steven Michael Radke, Vice President Sarah Elizabeth Schott, Vice President Steven John Stribling #, Vice President Conrad Carlton York, Vice President

John Nelson Balboni Connie Kadrovach Duckworth

Hans Christian Helmerich Anne Michele Paradis #

Mary Ellen Stanek Benjamin Francis Wilson

DIRECTORS OR TRUSTEES

Nicholas Earle Brathwaite # James Patrick Hackett Dale Elton Jones Ulice Payne Jr. Steven Scott Voynich

State of County of

Wisconsin Milwaukee

SS:

Todd Matthew Jones

David Robert Remstad

Ronald Paul Joelson, EVP and CIO Joann Marie Eisenhart, Senior Vice President Jeffrey James Lueken, Senior Vice President David William Simbro, Senior Vice President

Sandra Lee Botcher, Vice President Kimberley Goode, Vice President Meg Ellen Jansky, Vice President

Christian Winfield Mitchell, Vice President Tammy Michelle Roou, Vice President Steve Paul Sperka, Vice President Alexa von Tobel #, Vice President Thomas David Zale, Vice President

David John Drury Paul Russell Hardin David John Lubar John Edward Schlifske Ralph Andrew Weber

The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.

John Edward Schlifske Chairman and CEO

Subscribed and sworn to before me this day of

Leah Lewandoski Notary Public 11/05/2017

Raymond Joseph Manista SVP, General Counsel and Secretary

February, 2017

a. Is this an original filing? b. If no,

1. State the amendment number 2. Date filed 3. Number of pages attached

Todd Matthew Jones VP and Controller

Yes [ X ] No [ ]

ANNUAL STATEMENT FOR THE YEAR 2016 OF THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

ASSETS

1. Bonds (Schedule D)

2. Stocks (Schedule D):

2.1 Preferred stocks

2.2 Common stocks

3. Mortgage loans on real estate (Schedule B):

3.1 First liens

3.2 Other than first liens

4. Real estate (Schedule A):

4.1 Properties occupied by the company (less $

(437,810)

encumbrances)

4.2 Properties held for the production of income (less

$

encumbrances)

4.3 Properties held for sale (less $

encumbrances)

5. Cash ($

106,577,732 , Schedule E - Part 1), cash equivalents

($

1,454,346,721 , Schedule E - Part 2) and short-term

investments ($

739,638,172 , Schedule DA)

6. Contract loans (including $

premium notes)

7. Derivatives (Schedule DB)

8. Other invested assets (Schedule BA)

9. Receivables for securities

10. Securities lending reinvested collateral assets (Schedule DL)

11. Aggregate write-ins for invested assets

12. Subtotals, cash and invested assets (Lines 1 to 11)

13. Title plants less $

charged off (for Title insurers

only)

14. Investment income due and accrued

15. Premiums and considerations:

15.1 Uncollected premiums and agents' balances in the course of collection

15.2 Deferred premiums and agents' balances and installments booked but

deferred and not yet due (including $

earned but unbilled premiums)

15.3 Accrued retrospective premiums ($

) and

contracts subject to redetermination ($

)

16. Reinsurance:

16.1 Amounts recoverable from reinsurers

16.2 Funds held by or deposited with reinsured companies

16.3 Other amounts receivable under reinsurance contracts

17. Amounts receivable relating to uninsured plans

18.1 Current federal and foreign income tax recoverable and interest thereon

18.2 Net deferred tax asset

19. Guaranty funds receivable or on deposit

20. Electronic data processing equipment and software

21. Furniture and equipment, including health care delivery assets

($

)

22. Net adjustment in assets and liabilities due to foreign exchange rates

23. Receivables from parent, subsidiaries and affiliates

24. Health care ($

) and other amounts receivable

25. Aggregate write-ins for other than invested assets

26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25)

27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts

28. Total (Lines 26 and 27)

DETAILS OF WRITE-INS

1101. CSA Receivable

1102.

1103.

1198. Summary of remaining write-ins for Line 11 from overflow page

1199. Totals (Lines 1101 thru 1103 plus 1198)(Line 11 above)

2501. Employees and agents trusts

2502. Prepaid pension cost

2503. Agents balances

2598. Summary of remaining write-ins for Line 25 from overflow page

2599. Totals (Lines 2501 thru 2503 plus 2598)(Line 25 above)

1 Assets

139,795,347,224 204,550,961

4,054,101,246 33,893,706,342

303,871,517

671,049,824 1,797,295,643

2,300,562,626 17,150,506,744

780,856,366 12,433,451,181

401,967,468 450,556

213,787,717,698

1,883,133,092 150,566,910

2,045,195,492

37,325,056 68,908,531

3,178,939,390 39,382,214 251,752,462 56,089,916 14,076,483

1,526,391,772 223,039,479,016 28,559,006,427 251,598,485,443

450,556

450,556 821,764,555 504,043,794 82,526,005 118,057,418 1,526,391,772

Current Year 2

Nonadmitted Assets

2,788,639

705,162 154,266,375 157,760,176

179,610 1,864,066

208,917,169 56,089,916 666,483,405 1,091,294,342 1,091,294,342

504,043,794 82,526,005 79,913,606 666,483,405

3 Net Admitted Assets

(Cols. 1 - 2)

139,795,347,224 204,550,961

4,051,312,607 33,893,706,342

303,871,517

671,049,824 1,797,295,643

2,300,562,626 17,149,801,582

780,856,366 12,279,184,806

401,967,468 450,556

213,629,957,522

1,882,953,482 148,702,844

2,045,195,492

37,325,056 68,908,531

3,178,939,390 39,382,214 42,835,293

14,076,483 859,908,367 221,948,184,674 28,559,006,427 250,507,191,101

450,556

450,556 821,764,555

38,143,812 859,908,367

Prior Year 4

Net Admitted Assets

133,395,929,151 180,521,452

3,784,731,077 31,983,147,471

277,407,630

441,311,832 1,557,296,075

1,453,286,878 17,146,393,523

468,652,997 12,735,843,519

80,810,727 6,541,977 203,511,874,309

1,905,409,817 144,070,329

1,954,516,509

35,152,676 68,637,802

3,274,276,431 42,941,266 34,458,038

14,937,116 826,140,647 211,812,414,940 26,731,416,695 238,543,831,635

6,541,977

6,541,977 793,239,841

32,900,806 826,140,647

2

ANNUAL STATEMENT FOR THE YEAR 2016 OF THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

LIABILITIES, SURPLUS AND OTHER FUNDS

1. Aggregate reserve for life contracts $ included in Line 6.3 (including $

174,263,000,761 (Exh. 5, Line 9999999) less $

Modco Reserve)

2. Aggregate reserve for accident and health contracts (including $

Modco Reserve)

3. Liability for deposit-type contracts (Exhibit 7, Line 14, Col. 1) (including $

Modco Reserve)

4. Contract claims: 4.1 Life (Exhibit 8, Part 1, Line 4.4, Col. 1 less sum of Cols. 9, 10 and 11)

4.2 Accident and health (Exhibit 8, Part 1, Line 4.4, sum of Cols. 9, 10 and 11)

5. Policyholders' dividends $

and coupons $

due and unpaid (Exhibit 4,

Line 10)

6. Provision for policyholders' dividends and coupons payable in following calendar year - estimated amounts:

6.1 Dividends apportioned for payment (including $

Modco)

6.2 Dividends not yet apportioned (including $

Modco)

6.3 Coupons and similar benefits (including $

Modco)

7. Amount provisionally held for deferred dividend policies not included in Line 6

8. Premiums and annuity considerations for life and accident and health contracts received in advance less

$

discount; including $

15,754,316 accident and health premiums (Exhibit 1,

Part 1, Col. 1, sum of lines 4 and 14)

9. Contract liabilities not included elsewhere:

9.1 Surrender values on canceled contracts

9.2 Provision for experience rating refunds, including the liability of $

accident and health

experience rating refunds of which $

is for medical loss ratio rebate per the Public Health

Service Act

9.3 Other amounts payable on reinsurance, including $

4,115,586 assumed and $

75,844,902

ceded

9.4 Interest maintenance reserve (IMR, Line 6)

10. Commissions to agents due or accrued-life and annuity contracts $

45,268,808 accident and health

$

2,619,541 and deposit-type contract funds $

11. Commissions and expense allowances payable on reinsurance assumed

12. General expenses due or accrued (Exhibit 2, Line 12, Col. 6) 13. Transfers to Separate Accounts due or accrued (net) (including $

allowances recognized in reserves, net of reinsured allowances)

(33,064,584) accrued for expense

14. Taxes, licenses and fees due or accrued, excluding federal income taxes (Exhibit 3, Line 9, Col. 5)

15.1 Current federal and foreign income taxes, including $

on realized capital gains (losses)

15.2 Net deferred tax liability 16. Unearned investment income

17. Amounts withheld or retained by company as agent or trustee

18. Amounts held for agents' account, including $

agents' credit balances

19. Remittances and items not allocated

20. Net adjustment in assets and liabilities due to foreign exchange rates 21. Liability for benefits for employees and agents if not included above

22. Borrowed money $

and interest thereon $

23. Dividends to stockholders declared and unpaid

24. Miscellaneous liabilities:

24.01 Asset valuation reserve (AVR, Line 16, Col. 7) 24.02 Reinsurance in unauthorized and certified ($

) companies

24.03 Funds held under reinsurance treaties with unauthorized and certified ($

) reinsurers

24.04 Payable to parent, subsidiaries and affiliates

24.05 Drafts outstanding

24.06 Liability for amounts held under uninsured plans 24.07 Funds held under coinsurance

24.08 Derivatives

24.09 Payable for securities

24.10 Payable for securities lending 24.11 Capital notes $ 25. Aggregate write-ins for liabilities

and interest thereon $

26. Total liabilities excluding Separate Accounts business (Lines 1 to 25)

27. From Separate Accounts Statement

28. Total liabilities (Lines 26 and 27)

29. Common capital stock

30. Preferred capital stock

31. Aggregate write-ins for other than special surplus funds

32. Surplus notes 33. Gross paid in and contributed surplus (Page 3, Line 33, Col. 2 plus Page 4, Line 51.1, Col. 1) 34. Aggregate write-ins for special surplus funds

35. Unassigned funds (surplus)

36. Less treasury stock, at cost:

36.1

shares common (value included in Line 29 $

36.2

shares preferred (value included in Line 30 $

37. Surplus (Total Lines 31+32+33+34+35-36) (including $

) ) in Separate Accounts Statement)

38. Totals of Lines 29, 30 and 37 (Page 4, Line 55)

39. Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)

DETAILS OF WRITE-INS

2501. 2502. 2503. 2598.

Liability for deferred compensation plans Deferred commissions Post-retirement benefit obligation

Summary of remaining write-ins for Line 25 from overflow page

2599. Totals (Lines 2501 thru 2503 plus 2598)(Line 25 above)

3101.

3102.

3103.

3198. Summary of remaining write-ins for Line 31 from overflow page 3199. Totals (Lines 3101 thru 3103 plus 3198)(Line 31 above)

3401.

3402. 3403.

3498. Summary of remaining write-ins for Line 34 from overflow page

3499. Totals (Lines 3401 thru 3403 plus 3498)(Line 34 above)

1 Current Year

174,263,000,761 8,344,396,892 3,048,473,712

541,275,884 65,401,271

215,439,963

5,205,000,000

2 Prior Year

165,611,023,972 7,794,645,812 2,759,656,534

493,039,576 59,210,429

203,327,749

5,610,000,000

115,837,357

114,289,938

79,960,488 803,255,771

47,888,349 12,710,677 306,299,049

(38,001,347) 21,705,511 162,743,972

89,529,068 131,508,008

48,948,259

81,196,241 688,585,628

43,213,381 15,185,198 247,157,387

(41,419,288) 18,309,842 115,537,680

96,195,267 170,518,200

57,316,389

3,447,150,733 72,512,094

3,563,853,436 65,141,296

13,863,562 1,030,933,910

939,105,601

2,749,660,923 201,718,600,468 28,559,006,427 230,277,606,895

26,114,359 606,464,142 1,047,063,979

2,707,163,926 192,152,791,073 26,731,416,694 218,884,207,767

1,750,000,000 18,479,584,206

1,750,000,000 17,909,623,868

20,229,584,206 20,229,584,206 250,507,191,101

1,288,721,677 758,672,403 653,143,386 49,123,457

2,749,660,923

19,659,623,868 19,659,623,868 238,543,831,635

1,204,022,392 729,126,526 719,693,761 54,321,247

2,707,163,926

3

ANNUAL STATEMENT FOR THE YEAR 2016 OF THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

SUMMARY OF OPERATIONS

1. Premiums and annuity considerations for life and accident and health contracts (Exhibit 1, Part 1, Line 20.4, Col. 1, less Col. 11)

2. Considerations for supplementary contracts with life contingencies

3. Net investment income (Exhibit of Net Investment Income, Line 17)

4. Amortization of Interest Maintenance Reserve (IMR, Line 5)

5. Separate Accounts net gain from operations excluding unrealized gains or losses

6. Commissions and expense allowances on reinsurance ceded (Exhibit 1, Part 2, Line 26.1, Col. 1)

7. Reserve adjustments on reinsurance ceded

8. Miscellaneous Income:

8.1 Income from fees associated with investment management, administration and contract guarantees from Separate Accounts

8.2 Charges and fees for deposit-type contracts

8.3 Aggregate write-ins for miscellaneous income

9. Total (Lines 1 to 8.3)

10. Death benefits

11. Matured endowments (excluding guaranteed annual pure endowments)

12. Annuity benefits (Exhibit 8, Part 2, Line 6.4, Cols. 4 + 8)

13. Disability benefits and benefits under accident and health contracts

14. Coupons, guaranteed annual pure endowments and similar benefits

15. Surrender benefits and withdrawals for life contracts

16. Group conversions

17. Interest and adjustments on contract or deposit-type contract funds

18. Payments on supplementary contracts with life contingencies

19. Increase in aggregate reserves for life and accident and health contracts

20. Totals (Lines 10 to 19)

21. Commissions on premiums, annuity considerations, and deposit-type contract funds (direct business only) (Exhibit 1, Part 2, Line 31, Col. 1)

22. Commissions and expense allowances on reinsurance assumed (Exhibit 1, Part 2, Line 26.2, Col. 1)

23. General insurance expenses (Exhibit 2, Line 10, Cols. 1, 2, 3 and 4)

24. Insurance taxes, licenses and fees, excluding federal income taxes (Exhibit 3, Line 7, Cols. 1 + 2 + 3)

25. Increase in loading on deferred and uncollected premiums

26. Net transfers to or (from) Separate Accounts net of reinsurance

27. Aggregate write-ins for deductions

28. Totals (Lines 20 to 27)

29. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)

30. Dividends to policyholders

31. Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30)

32. Federal and foreign income taxes incurred (excluding tax on capital gains)

33. Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 31 minus Line 32)

34. Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of

$

(116,620,853) (excluding taxes of $

145,075,751 transferred to the IMR)

35. Net income (Line 33 plus Line 34)

CAPITAL AND SURPLUS ACCOUNT

36. Capital and surplus, December 31, prior year (Page 3, Line 38, Col. 2)

37. Net income (Line 35)

38. Change in net unrealized capital gains (losses) less capital gains tax of $

101,145,886

39. Change in net unrealized foreign exchange capital gain (loss)

40. Change in net deferred income tax

41. Change in nonadmitted assets

42. Change in liability for reinsurance in unauthorized and certified companies

43. Change in reserve on account of change in valuation basis, (increase) or decrease

44. Change in asset valuation reserve

45. Change in treasury stock (Page 3, Lines 36.1 and 36.2, Col. 2 minus Col. 1)

46. Surplus (contributed to) withdrawn from Separate Accounts during period

47. Other changes in surplus in Separate Accounts Statement

48. Change in surplus notes

49. Cumulative effect of changes in accounting principles

50. Capital changes:

50.1 Paid in

50.2 Transferred from surplus (Stock Dividend)

50.3 Transferred to surplus

51. Surplus adjustment:

51.1 Paid in

51.2 Transferred to capital (Stock Dividend)

51.3 Transferred from capital

51.4 Change in surplus as a result of reinsurance

52. Dividends to stockholders

53. Aggregate write-ins for gains and losses in surplus

54. Net change in capital and surplus for the year (Lines 37 through 53)

55. Capital and surplus, December 31, current year (Lines 36 + 54) (Page 3, Line 38)

DETAILS OF WRITE-INS

08.301. Contract fees and other income

08.302.

08.303.

08.398. Summary of remaining write-ins for Line 8.3 from overflow page

08.399. Totals (Lines 08.301 thru 08.303 plus 08.398)(Line 8.3 above)

2701. Fines and penalties 2702. Miscellaneous charges to operations

2703.

2798. Summary of remaining write-ins for Line 27 from overflow page

2799. Totals (Lines 2701 thru 2703 plus 2798)(Line 27 above)

5301. Benefit plan adjustments 5302. Prior period and other adjustments

5303.

5398. Summary of remaining write-ins for Line 53 from overflow page

5399. Totals (Lines 5301 thru 5303 plus 5398)(Line 53 above)

1 Current Year

17,660,628,276 254,541,550

9,449,905,390 154,756,253

148,763,268

305,274,777 26,877

178,295,068 28,152,191,459 3,343,966,411

6,205,494 383,912,766 741,070,016

5,203,147,990

106,269,800 96,128,912 9,201,727,869 19,082,429,258 1,191,514,301 148,121,720 1,482,764,522 276,202,155 34,084,292 (117,854,116)

804,285 22,098,066,417 6,054,125,042 5,204,798,218

849,326,824 (176,294,955) 1,025,621,779

(215,491,278) 810,130,501

19,659,623,868 810,130,501 (329,102,303) 2,946,806 6,731,321 (217,564,785)

116,702,702

180,116,096 569,960,338 20,229,584,206

178,295,068

178,295,068 119,124 685,161

804,285 180,116,096

180,116,096

2 Prior Year

17,581,321,719 206,108,726

9,252,929,447 212,899,065

156,785,983

305,740,662 19,890

159,375,626 27,875,181,118 3,189,754,717

8,299,293 363,370,265 698,318,028

4,675,802,917

90,169,093 88,419,310 9,280,647,795 18,394,781,418 1,163,689,395 154,459,590 1,318,937,086 265,582,975 26,886,552 150,290,507 (1,074,818) 21,473,552,705 6,401,628,413 5,609,397,876 792,230,537 (53,734,066) 845,964,603

(44,762,449) 801,202,154

19,055,127,727 801,202,154 (184,164,876) (47,926,454) 86,588,914 44,223,753

(19,565,896)

(75,861,454) 604,496,141 19,659,623,868

159,375,626

159,375,626 25,385

(1,100,203)

(1,074,818) (80,333,838)

4,472,384

(75,861,454)

4

ANNUAL STATEMENT FOR THE YEAR 2016 OF THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

CASH FLOW

1

2

Cash from Operations

1. Premiums collected net of reinsurance

2. Net investment income

3. Miscellaneous income

4. Total (Lines 1 through 3)

5. Benefit and loss related payments

6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts

7. Commissions, expenses paid and aggregate write-ins for deductions

8. Dividends paid to policyholders

9. Federal and foreign income taxes paid (recovered) net of $

tax on capital gains (losses)

10. Total (Lines 5 through 9)

11. Net cash from operations (Line 4 minus Line 10)

Current Year

Prior Year

12,153,681,727 9,120,034,523

548,080,219 21,821,796,469 8,614,069,618

(121,272,057) 2,808,655,512

169,611,755 (194,382,083) 11,276,682,745 10,545,113,724

12,100,155,415 8,668,924,218

552,563,247 21,321,642,880 7,968,710,464

152,058,290 2,631,184,276

194,417,731 195,649,629 11,142,020,390 10,179,622,490

Cash from Investments 12. Proceeds from investments sold, matured or repaid:

12.1 Bonds 12.2 Stocks 12.3 Mortgage loans 12.4 Real estate 12.5 Other invested assets 12.6 Net gains or (losses) on cash, cash equivalents and short-term investments 12.7 Miscellaneous proceeds 12.8 Total investment proceeds (Lines 12.1 to 12.7) 13. Cost of investments acquired (long-term only): 13.1 Bonds 13.2 Stocks 13.3 Mortgage loans 13.4 Real estate 13.5 Other invested assets 13.6 Miscellaneous applications 13.7 Total investments acquired (Lines 13.1 to 13.6) 14. Net increase (decrease) in contract loans and premium notes 15. Net cash from investments (Line 12.8 minus Line 13.7 minus Line 14)

45,185,039,130 3,547,825,476 3,023,484,645

237,620,289 1,472,299,042

(1,897,570) 103,313,030 53,567,684,042

37,265,815,472 2,083,984,508 1,923,624,090

208,677,036 1,776,305,700

(82,452) 116,283,804 43,374,608,159

51,041,849,073 3,539,610,449 5,039,752,527

592,436,331 1,373,315,592 1,302,705,613 62,889,669,584 (253,398,746) (9,068,586,796)

42,795,230,671 2,477,542,504 5,030,456,114

356,110,247 1,598,499,356 1,866,782,657 54,124,621,549

(3,435,339) (10,746,578,051)

Cash from Financing and Miscellaneous Sources 16. Cash provided (applied):

16.1 Surplus notes, capital notes 16.2 Capital and paid in surplus, less treasury stock 16.3 Borrowed funds 16.4 Net deposits on deposit-type contracts and other insurance liabilities

16.5 Dividends to stockholders 16.6 Other cash provided (applied) 17. Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)

(223,489,140)

(405,762,040) (629,251,180)

(297,812,877)

(265,896,479) (563,709,356)

RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)

19. Cash, cash equivalents and short-term investments:

19.1 Beginning of year

19.2 End of year (Line 18 plus Line 19.1)

Note: Supplemental disclosures of cash flow information for non-cash transactions:

20.0001. Dividends used to pay premiums and loans 20.0002. Bond refinancings and exchanges 20.0003. Asset transfers with affiliated entities 20.0004. Mortgage loan refinancings and transfers 20.0005. Capitalized interest and payment in-kind investment income 20.0006. Deposit-type contracts and interest credited 20.0007. Net policy loan activity 20.0008. Employee benefit and compensation plan expenses 20.0009. Other policyowner contract activity 20.0010. Net premium loan activity 20.0011. Other invested asset exchanges 20.0012. Common stock exchanges 20.0013. Real estate exchange

847,275,748

1,453,286,878 2,300,562,626

(1,130,664,917)

2,583,951,795 1,453,286,878

5,428,074,250 1,984,850,827

934,540,933 918,212,059 726,867,140 512,306,318 341,999,654 195,940,814 187,914,234 94,305,420

77,873,379 32,698,312 6,891,781

5,305,088,077 1,757,310,236

364,889,911 913,091,410 845,222,092 388,929,977 354,857,549 154,394,190 167,673,960 139,971,805 130,840,935 170,889,962

5

ANNUAL STATEMENT FOR THE YEAR 2016 OF THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

Note: Supplemental disclosures of cash flow information for non-cash transactions:

20.0014. Bond forward commitments

6,225,096,390

5.1

6

ANNUAL STATEMENT FOR THE YEAR 2016 OF THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

ANALYSIS OF OPERATIONS BY LINES OF BUSINESS

1

2

1. Premiums and annuity considerations for life and accident and health contracts

2. Considerations for supplementary contracts with life contingencies 3. Net investment income 4. Amortization of Interest Maintenance Reserve (IMR) 5. Separate Accounts net gain from operations excluding unrealized gains or

losses 6. Commissions and expense allowances on reinsurance ceded 7. Reserve adjustments on reinsurance ceded 8. Miscellaneous Income:

8.1 Fees associated with income from investment management, administration and contract guarantees from Separate Accounts

8.2 Charges and fees for deposit-type contracts 8.3 Aggregate write-ins for miscellaneous income 9. Totals (Lines 1 to 8.3)

10. Death benefits 11. Matured endowments (excluding guaranteed annual pure endowments) 12. Annuity benefits 13. Disability benefits and benefits under accident and health contracts 14. Coupons, guaranteed annual pure endowments and similar benefits 15. Surrender benefits and withdrawals for life contracts 16. Group conversions 17. Interest and adjustments on contract or deposit-type contract funds 18. Payments on supplementary contracts with life contingencies 19. Increase in aggregate reserves for life and accident and health contracts 20. Totals (Lines 10 to 19) 21. Commissions on premiums, annuity considerations and deposit-type

contract funds (direct business only) 22. Commissions and expense allowances on reinsurance assumed 23. General insurance expenses 24. Insurance taxes, licenses and fees, excluding federal income taxes 25. Increase in loading on deferred and uncollected premiums 26. Net transfers to or (from) Separate Accounts net of reinsurance 27. Aggregate write-ins for deductions 28. Totals (Lines 20 to 27)

29. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)

30. Dividends to policyholders 31. Net gain from operations after dividends to policyholders and before federal

income taxes (Line 29 minus Line 30) 32. Federal income taxes incurred (excluding tax on capital gains) 33. Net gain from operations after dividends to policyholders and federal income

taxes and before realized capital gains or (losses) (Line 31 minus Line 32)

DETAILS OF WRITE-INS 08.301. Contract fees and other income 08.302. 08.303. 08.398. Summary of remaining write-ins for Line 8.3 from overflow page 08.399. Totals (Lines 08.301 thru 08.303 plus 08.398) (Line 8.3 above) 2701. Fines and penalties 2702. Miscellaneous charges to operations 2703. 2798. Summary of remaining write-ins for Line 27 from overflow page 2799. Totals (Lines 2701 thru 2703 plus 2798) (Line 27 above)

(a) Includes the following amounts for FEGLI/SGLI: Line 1

Total

17,660,628,276 254,541,550

9,449,905,391 154,756,252

Industrial Life

148,763,268

305,274,777 26,877

178,295,069 28,152,191,460 3,343,966,410

6,205,494 383,912,766 741,070,016

5,203,147,990

106,269,800 96,128,912 9,201,727,868 19,082,429,256

1,191,514,301 148,121,720

1,482,764,521 276,202,155 34,084,292

(117,854,117) 804,286

22,098,066,413

6,054,125,046 5,204,798,218

849,326,828 (176,294,955)

1,025,621,783

178,295,069

178,295,069 119,123 685,163

804,286 , Line 10

3 Life Insurance

Ordinary 4

Individual Annuities

13,426,793,371

2,256,094,382

8,511,548,439 114,392,472

252,944,336 17,034,834

5 Supplementary

Contracts

6

Credit Life (Group and Individual)

254,541,550 121,176,431

6,897,548

Group 7 Life Insurance (a)

8 Annuities

180,177,497

1,603,846 28,278

78,963,204 1,235,965

147,630,527

161,942,046

123,123,196 22,485,430,051 3,339,301,498

6,205,494

102,635,399

3,699,863,390 (40,755)

22,592,513

7,673,299,864 14,843,857,403

959,446,877

1,080,301,321 232,030,458 34,414,381 12,886,090 616,325

17,163,552,855

5,321,877,195 4,723,156,106

598,721,089 (217,479,926)

816,201,015

123,123,196

143,168,356

19,104,142 2,688,346,050

268,393,312

1,402,088,168

7,723,013

675,445,842 2,353,650,335

104,358,240

128,484,243 10,029,169

(330,089) (35,183,600)

86,340 2,561,094,638

127,251,412 56,541,496

70,709,916 10,804,717

59,905,199

19,104,142

(3,332) 26,877 103,832 382,742,906

75,586,395 96,128,912 172,374,204 344,089,511 3,247,985

5,179,196 332,427

24,997,874 2,986

377,849,979 4,892,927 4,511,459 381,468 (6,706,211) 7,087,679

103,832

31,374,334 33,006,458 4,664,912

25,928

40,755 29,829 447,997 5,209,421

(101,358) 3

5,108,066 27,898,392 26,646,449 1,251,943

366,524 885,419 31,374,334

167,707

31,983 260,576,356

115,519,454

101,196,432

4,291

130,408,882 347,129,059

68,563

73,242 3,645

(120,453,123) 164

226,821,550 33,754,806 32,593,780 1,161,026 (3,844,715) 5,005,741

31,983

123,123,196 74,212 542,113

616,325 , Line 16

19,104,142 33,377 52,963

86,340

103,832 339

2,647

2,986 , Line 23

31,374,334 3

3 , Line 24

31,983 5

159

164

9 Group

Accident and Health 10

Credit (Group and Individual)

67,773,661

10,895,912 114,979

(1,856,912) 76,927,640

24,145,302

17,910 2,264 24,165,476 16,084,904 20,084,280 2,974,061

2,327 63,311,048 13,616,592

13,616,592 4,162,192 9,454,400 (1,856,912)

(1,856,912) 264

2,063

2,327

11 Other

12 Aggregate of All Other Lines of

Business

1,729,789,365

472,773,223 15,052,176

1,132,741

6,414,494 2,225,161,999

614,263,387

315,849 549,748,815 1,164,328,051 108,307,732 148,121,720 248,642,239 30,832,395

96,141 1,700,328,277

524,833,722 361,348,928 163,484,794 36,402,464 127,082,330

6,414,494

6,414,494 10,926 85,215

96,141

ANNUAL STATEMENT FOR THE YEAR 2016 OF THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

ANALYSIS OF INCREASE IN RESERVES DURING THE YEAR

1 Total

2 Industrial Life

3 Life Insurance

Ordinary 4

Individual Annuities

5 Supplementary

Contracts

6

Credit Life (Group and Individual)

Group 7

Life Insurance

8 Annuities

Involving Life or Disability Contingencies (Reserves)

(Net of Reinsurance Ceded)

7

1. Reserve December 31, prior year 2. Tabular net premiums or considerations 3. Present value of disability claims incurred 4. Tabular interest 5. Tabular less actual reserve released 6. Increase in reserve on account of change in valuation basis 7. Other increases (net) 8. Totals (Lines 1 to 7) 9. Tabular cost 10. Reserves released by death 11. Reserves released by other terminations (net) 12. Annuity, supplementary contract and disability payments involving life contingencies 13. Net transfers to or (from) Separate Accounts 14. Total Deductions (Lines 9 to 13) 15. Reserve December 31, current year

165,611,023,971 16,010,367,386

243,980,339 7,071,716,227 (282,845,093)

(7,000,000) 188,647,242,830

6,873,835,335 2,115,676,397 4,929,881,449

582,703,005 (117,854,117) 14,384,242,069 174,263,000,761

157,955,457,180 13,292,202,915

243,895,049 6,712,404,378

(73,022,394)

5,331,385,450 2,254,395,115

247,055,589 (178,479,535)

830,744,317 254,541,550

XXX

42,956,205 (8,996,765)

178,130,937,128 6,849,124,566 2,111,011,485 3,426,521,649 102,635,399 12,886,090 12,502,179,189

165,628,757,939

(12,000,000) 7,642,356,619

227,446

XXX

1,402,088,168 268,393,312 (35,183,600)

1,635,525,326 6,006,831,293

5,000,000 1,124,245,307

XXX XXX

96,128,912 24,997,874 121,126,786 1,003,118,521

8,076,153 29,050,309

85,290 568,683 (7,817)

1,485,360,871 180,177,497

68,731,372 (22,338,582)

37,772,618 24,483,323 4,664,912

75,201 25,928

29,249,364 8,523,254

1,711,931,158

XXX

101,196,431 115,519,454 (120,554,481) 96,161,404 1,615,769,754

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