Office of Thrift Supervision

Northwestern Mutual Approved To Set Up A Federal Savings Bank

WASHINGTON, D.C., Aug. 14, 2000 – The Northwestern Mutual Insurance Company has received approval from the Office of Thrift Supervision (OTS) to organize a new federal savings bank in Milwaukee, Northwestern Mutual Trust Company, to offer trust services and products.

Northwestern, which becomes a unitary thrift holding company, was founded in 1857 and today is ranked as the sixth largest life insurance company with more than $583 billion in individual life insurance in force. It has more than 2.8 million policy owners, and the company’s assets exceed $86 billion.

The primary source of prospective trust customers will be referrals from the insurance company’s 7,500 licensed agents in all 50 states and employees located in its regional sales offices who will be dedicated to the thrift. The thrift also plans to open a number of local sales offices throughout the nation.

In gaining OTS approval, Northwestern Mutual Trust may not make any major changes to its approved business plan without OTS consent. At least 40 percent of its directors must be individuals who are not officers or employees of the insurance company and any affiliates, with at least one member being independent of the parent, affiliates and thrift. The bank also is obligated to file with OTS for review a functioning oversight program covering audit, compliance and risk management and to submit quarterly reports on the number, type and assets of trust accounts.

The Northwestern Mutual Life Insurance Company Approval Order <

The Office of Thrift Supervision (OTS), an office of the U.S. Treasury, regulates and supervises the nation's thrift industry. OTS's mission is to ensure the safety and soundness of thrift institutions and to support their role as home mortgage lenders and providers of other community credit and financial services. For copies of news releases or other documents visit the OTS web page at www.ots.treas.gov.

Created: Monday, 8/14/2000