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Penn Mutual held its dividend interest rate at 6.34% for eleven consecutive years. Northwestern Mutual dropped from 7.50% to 4.90% over the same period. Same economic environment. Very different carriers.
Below is the complete 2006–2026 history of declared dividend interest rates for six major mutual life insurance companies — actual announced rates, not illustrations or projections.
Key Takeaways
- MassMutual leads the field in 2026 at 6.60% — up from 7.90% peak in 2008, the strongest sustained recovery on this list
- New York Life reaches 6.40% for 2026 — a 20-year high and the carrier's longest unbroken dividend streak (172 consecutive years)
- Penn Mutual is the stability story: 6.34% flat from 2008 through 2018 while every competitor compressed; holding 6.00% in 2026
- Northwestern Mutual entered 2006 at 7.50% and reached only 5.75% in 2026 — still nearly 175 basis points below its starting rate
- AuguStar/Ohio National declined from 6.65% to 3.63% and has since demutualized — the historical numbers and the current product are not the same carrier
- The zero-rate era (2013–2022) compressed every carrier; the 2024–2026 uptick reflects higher bond yields working back into long-duration portfolios
- Dividend history is one signal — loan recognition structure, expense loads, and policy design affect actual cash value more than a 0.5% rate gap
Dividend interest rate history, 2006–2026
All figures are publicly declared annual rates, in percent. "NWM" = Northwestern Mutual; "AuguStar" = AuguStar/Ohio National. Carrier notes follow the table.
| Year | MassMutual | Guardian | Penn Mutual | NY Life | NWM | AuguStar |
|---|---|---|---|---|---|---|
| 2006 | 7.40 | 6.50 | 6.30 | 6.79 | 7.50 | 6.65 |
| 2007 | 7.50 | 6.75 | 6.30 | 6.79 | 7.50 | 6.65 |
| 2008 | 7.90 | 7.25 | 6.34 | 6.79 | 7.50 | 6.65 |
| 2009 | 7.60 | 7.30 | 6.34 | 6.14 | 6.50 | 6.40 |
| 2010 | 7.00 | 7.00 | 6.34 | 6.11 | 6.15 | 6.40 |
| 2011 | 6.85 | 6.85 | 6.34 | 6.11 | 6.00 | 6.15 |
| 2012 | 7.00 | 6.95 | 6.34 | 5.80 | 5.85 | 6.15 |
| 2013 | 7.00 | 6.65 | 6.34 | 5.90 | 5.60 | 6.00 |
| 2014 | 7.10 | 6.25 | 6.34 | 6.00 | 5.60 | 6.00 |
| 2015 | 7.10 | 6.05 | 6.34 | 6.20 | 5.60 | 6.00 |
| 2016 | 7.10 | 6.05 | 6.34 | 6.20 | 5.45 | 6.00 |
| 2017 | 6.70 | 5.85 | 6.34 | 6.20 | 5.00 | 5.75 |
| 2018 | 6.40 | 5.85 | 6.34 | 6.10 | 4.90 | 5.40 |
| 2019 | 6.40 | 5.85 | 6.10 | 6.00 | 5.00 | 5.40 |
| 2020 | 6.20 | 5.65 | 6.10 | 6.00 | 5.00 | 5.20 |
| 2021 | 6.00 | 5.65 | 5.75 | 5.80 | 5.00 | 4.70 |
| 2022 | 6.00 | 5.65 | 5.75 | 5.80 | 5.00 | 4.00 |
| 2023 | 6.00 | 5.75 | 5.75 | 5.80 | 5.00 | 4.00 |
| 2024 | 6.10 | 5.90 | 5.75 | 6.00 | 5.15 | 4.00 |
| 2025 | 6.40 | 6.10 | 6.00 | 6.20 | 5.50 | 3.63 |
| 2026 | 6.60 | 6.25 | 6.00 | 6.40 | 5.75 | Demutualized |
Carrier notes: MassMutual figures reflect the MM-TBCC block (post-1996 merger with Connecticut Mutual). New York Life adjusted its dividend calculation method beginning 2011. AuguStar/Ohio National reflects the Ohio National block issued after reorganization to mutual holding company status on 8/1/98. AuguStar demutualized; 2026 rate not declared.
2026 snapshot: MassMutual leads the field at 6.60%, followed by New York Life at 6.40%, Guardian at 6.25%, Penn Mutual at 6.00%, and Northwestern Mutual at 5.75%. All five raised their dividend interest rate from 2025 — a second consecutive year of increases as higher bond yields continue working into portfolio reinvestment. AuguStar/Ohio National demutualized and no longer declares a participating dividend under that structure.
What drove the movement
Mutual life insurers hold long-duration bond portfolios. Most carriers peaked between 2007 and 2009 because those portfolios were still earning on bonds purchased during the higher-rate environment of the late 1990s and early 2000s.
Then the Fed took rates near zero and kept them there for a decade. The compression in DIRs lagged the rate environment by several years as older bonds matured and were replaced with lower-yielding paper. Most carriers hit their cycle lows around 2020–2023.
The 2024–2025 uptick reflects the reverse: higher bond yields since 2022 are now working into portfolio reinvestment. How fast each carrier recovers depends on portfolio duration and how they managed exposure during the zero-rate era. MassMutual and New York Life recovered faster. Northwestern Mutual and AuguStar have not.
Expert Tip: What I actually look at in this table
Which carriers held their floor during the zero-rate decade — not who had the highest number in any single year. Penn Mutual flat at 6.34% for eleven years through a decade of Fed compression tells you something about how management runs the portfolio. AuguStar dropping from 6.65% to under 4% tells you something different. The carriers that protected their floor are the ones I'm most confident illustrating over a 30-year horizon. A 0.5% DIR gap today matters far less than whether the carrier has a track record of managing through bad cycles without gutting the dividend.
—Brad Cummins, Insurance Geek Founder
Carrier notes
MassMutual
Highest peak on this list at 7.90% in 2008. The rate bottomed at 6.00% from 2021 through 2023 — which was still the highest floor of any carrier here. Back to 6.40% in 2025, with 6.60% announced for 2026. The combination of A++ AM Best financial strength and a dividend history running back to 1869 makes MassMutual the benchmark most practitioners use when evaluating mutual carriers for whole life insurance or IBC design.
Penn Mutual
The stability story on this chart. Held 6.34% flat from 2008 through 2018 — eleven years without moving — while every competitor compressed. That consistency reflects a conservatively managed portfolio and a smaller, tighter book than MassMutual or New York Life. Uninterrupted dividends since 1847. Moved down to 5.75% in 2021 and recovered to 6.00% in 2025. For buyers who view dividend consistency as the primary signal, this is the reference point. See how Penn Mutual stacks up on policy design in our best life insurance companies rankings.
New York Life
Entered 2006 at 6.79% — the highest starting point of any carrier that didn't spike further in 2007–2008. Stepped down to 6.11% by 2010 and spent the next decade between 5.80% and 6.20%. The 2025 rate of 6.20% puts it back near its historical midpoint. Consistent without being exceptional in either direction.
Guardian
Peaked at 7.30% in 2009 — notably later than most carriers. Compressed steeply from there, bottoming at 5.65% from 2020 to 2022. The recent recovery (5.75%, 5.90%, 6.10% in successive years) is real, but Guardian is still below its pre-crisis level at a point when MassMutual has largely recovered. Guardian does offer both direct and non-direct recognition policy options, which matters more to some IBC buyers than the current rate headline.
Northwestern Mutual
Entered 2006 tied with MassMutual at 7.50%. The steepest decline on this chart. Bottomed at 4.90% in 2018, held at 5.00% for five years, and reached only 5.50% by 2025. That's still nearly 200 basis points below where it started. MassMutual is within 100 basis points of its 2006 rate. The gap between Northwestern Mutual's brand presence and its actual dividend trajectory over this period is worth understanding before treating it as the default choice for whole life.
AuguStar / Ohio National
The most dramatic trajectory on this chart — and the most complicated. Declined from 6.65% in 2006 to 3.63% in 2025, a drop of more than 3 full percentage points. Ohio National demutualized and was subsequently acquired; AuguStar is now the operating name. The company structure, ownership, and product line have changed significantly from the mutual company that produced the pre-2015 figures. The historical numbers and the current product are not the same carrier in any meaningful sense. Verify current public filings directly before making any forward-looking decision based on this history.
What the dividend interest rate actually measures
The DIR is the investment return assumption used inside the dividend formula — it reflects how the carrier's bond portfolio performed relative to what was priced into your premium. When actual returns beat the assumption, surplus comes back as a dividend.
It is not your policy's internal rate of return. A 6.00% DIR does not mean your cash value grows 6% annually. The guaranteed growth rate in the policy contract is typically 2–4%; the dividend sits on top of that when declared.
Two carriers reporting the same DIR can produce different net cash value results because of how they handle outstanding loans (direct vs. non-direct recognition), internal expense loads, and how much of your premium design goes toward paid-up additions versus base coverage. Those factors often matter more than a 0.5% gap in DIR. For a breakdown of how each mutual handles loan recognition for banking strategies, see the best infinite banking companies page.
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About Brad Cummins
Brad Cummins is the founder of Insurance Geek and primary author of its educational content. Licensed since 2004, he brings over 21 years of experience structuring life insurance and IUL strategies for clients nationwide.
Fact checked by Ryan Wood
Ryan Wood is a licensed insurance professional and contributing advisor at Insurance Geek, serving as a fact checker and technical reviewer for life insurance and annuity content. First licensed in 2013, he brings more than 12 years of experience and holds licenses in over 40 U.S. states.
