CHOOSE

LESS RISK

REAL ESTATE

EQUITIES

4%

PUBLIC COMMON

STOCK

3%

PRIVATEEQUITIES

5%MONEYMARKET

INVESTMENTS

2%

PUBLIC BONDS & PREFERRED STOCK

54%PRIVATE BONDS & PREFERRED STOCK

17%

COMMERCIALMORTGAGE LOANS

15%

PEOPLE WHO OWN LIFE INSURANCE KNOW IT HAS NO EqUAL when it comes to guaranteeing financial security for those they care about after they die. Those among them who own a permanent life insurance policy can take advantage of an accumulation feature that contributes to their financial independence. Those who have owned a permanent policy from The Northwestern Mutual Life Insurance Company (Northwestern Mutual) have benefited from a unique investment approach that has contributed to the company’s industry-leading dividend performance.

Our unique investment approach The investment portfolio that supports Northwestern Mutual’s permanent life insurance policies includes all the major asset classes and market sectors – fixed income and equities, as well as real estate developments, leveraged buyouts and mezzanine investments. And we achieve even greater diversification by carefully selecting a large number of investments within each of them.

Because our policyowners tend to live long lives, are loyal to the company, and pay premiums consistently, compared to our competitors, Northwestern Mutual has the latitude to not only invest long-term, but also to allocate a higher percentage of assets to those classes that generally offer higher yields.

Additionally, by combining the returns on more recent investments with those on long-term investments made years ago, we establish a portfolio that rounds off the peaks and valleys. Our policyowners benefit from all of our investments, regardless of when they actually purchase their policies. This portfolio approach helps to shelter them from the day-to-day volatility of the market.

Portfolio ComPositionDecember 31, 2009Total Managed Assets: $131.6 Billion (Statement Value)

Source: 2009 Northwestern Mutual Investment Report

Choose an asset that guarantees financial security

Following this approach, Northwestern Mutual has demonstrated over an extended period that it can increase the company’s total investment return while reducing the variability of those returns.

The investment results we have achieved are significant. The dividends paid out reflect the substantial contribution the investment results have on the ever-increasing values Northwestern Mutual policyowners receive. This does not mean that Northwestern Mutual cash values have grown at an average rate of 8.24% over the last 20 years; the cost, and associated value, of the protection a life insurance policy provides has to be taken into consideration. Similarly, the rates of return quoted for other investments do not take into account taxes that may be due or investment fees that may be charged.

ACtuAl results 1990 - 2009 ANNUAL RATES OF RETURN

highest lowest average

COMMON STOCKS 37.43 -37.00 10.10

CORP BONDS 18.48 -2.92 7.12

LT MUNICIPALS 21.99 -11.30 6.98

IT TREASURY BONDS 16.80 -5.14 6.86U.S. 30-DAY T-BILLS 7.81 .10 3.85

NORTHWESTERN MUTUAL 10.00 6.15 8.24

DIVIDEND INTEREST RATE*

Competitive returns with low volatility Under the variety of economic conditions of a recent 20 year period, for example, the returns on a portfolio comprised solely of bonds averaged 7.12%. The returns on Northwestern Mutual’s overall portfolio contributed to a dividend interest rate that averaged 112 basis points more. And that superior result was achieved while subjecting the assets to less risk of loss. Certainly, a 100% investment in stocks would have yielded a higher rate of return – 10.1% during the same period – but it was earned with a risk factor much greater than the Northwestern Mutual’s more balanced portfolio.

Create a lifelong foundation for your financial security.

*Rate for unborrowed funds for most traditional permanent life insurance policies (see description on back cover). The dividend scale consists of more than the dividend interest rate.

The relative placement of the various portfolios on the diagram is determined by two factors: the average return for each portfolio for the period 1990-2009, and the volatility experienced by those portfolios. Those investments with the greatest swings are the highest risk portfolios.

SAFETY

COMMON STOCKS

U.S. 30-DAY T-BILLS

high return / less safe

low return / less safe low return / more safe

high return / more safe

RE

TUR

N

NOrthwesterN Mutual DiviDeND sCale iNterest rate*

CORPORATE BONDSU.S.

INTERMEDIATE TREASURY

BONDS

LONg-TERM MUNICIPALS

This material describes the investment strategy for the managed assets in Northwestern Mutual’s general account and the investment performance of these assets. For more details on the concepts discussed in this brochure ask your Financial Representative to see “The Power of the Portfolio” and/or “Mutual Advantage.” The Company’s dividend scale interest rate for unborrowed funds for most traditional life insurance policies reflects the investment performance of the managed assets net of taxes and any contribution to surplus. This rate is used for crediting interest on policy values after deducting mortality and expense charges. Because of the mortality and expense charges, the dividend scale interest rate should not be used as a measure of the policy’s internal rate of return. The dividend scale and the underlying interest rates are reviewed annually and are subject to change. Future dividends are not guaranteed, although Northwestern Mutual has paid a dividend every year since 1872.

Decisions with respect to the amount and appropriate allocation of divisible surplus for participating policies of Northwestern Mutual are left to the discretion and business judgment of the Board of Trustees. There is no guaranteed approach or formula for determining the amount of divisible surplus or the manner in which it is allocated as dividends. Further, there is no guarantee that any dividend will be paid on an individual policy in any given year. Therefore, the approach described in this brochure for determining dividends, the dividend interest rate and other dividend factors is subject to change without notice.

The dividend scale interest rate for a particular policy is the interest rate used for crediting interest on policy values after deducting mortality and expense charges. It reflects investment performance of both managed assets and policy loans. Depending on the type of policy, either individual policy loan activity or average loan activity of all policies in the dividend class is reflected.

Northwestern Mutual Life Insurance Company’s operational results, investment holdings and financial position for the year ending 12/31/2009 are reported in the company’s Consolidated Financial Statement (CFS). PricewaterhouseCoopers LLP is the company’s independent accountant. A copy of Northwestern Mutual’s CFS is available online at www.northwesternmutual.com | About Us | Financial Information or by written request to: Northwestern Mutual, Corporate Relations, N04NE, 720 E. Wisconsin Avenue, Milwaukee, WI 53202.

Northwestern Mutual is the marketing name of The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) (life and disability insurance, annuities) and its subsidiaries. Securities offered through Northwestern Mutual Investment Sevices, LLC (NMIS), a subsidiary of NM, broker-dealer, registered investment advisor, and member of FINRA and SIPC.

The Northwestern Mutual Life Insurance Company • Milwaukee, WIwww.northwesternmutual.com

29-5156 (0510)