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The Third-largest U.s. Life Insurer By 2008 Sales, Has Bought Gold For The First Time The Company’s 152-year History

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Some economic news posted in the House Prices and the Economy Section of HPC relating to the third biggest Life Insurer in the US for you.........

Northwestern Mutual Makes First Gold Buy in 152 Years (Update2)

By Andrew Frye

June 1 (Bloomberg) -- Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer by 2008 sales, has bought gold for the first time the company’s 152-year history to hedge against further asset declines.

“Gold just seems to make sense; it’s a store of value,†Chief Executive Officer Edward Zore said in an interview following his comments at a conference hosted by Standard & Poor’s in Brooklyn. “In the Depression, gold did very, very well.â€

Northwestern Mutual has accumulated about $400 million in gold, and Zore said the price could double or even rise fivefold if the economy continues to weaken. Gold gained 10 percent last month, the most since November. The commodity has more than tripled since 2000, rising for eight straight years. Gold futures for August delivery slipped $4.80 to $975.50 at 4:03 p.m. in New York.

“The downside risk is limited, but the upside is large,†Zore said. “We have stocks in our portfolio that lost 95 percent.†Gold “is not going down to $90.â€

Policyholder-owned Northwestern Mutual, based in Milwaukee, ranks third by 2008 life insurance premiums according to data from the National Association of Insurance Commissioners. The data excludes annuities.

To contact the reporter on this story: Andrew Frye in New York at afrye@bloomberg.net

Last Updated: June 1, 2009 16:34 EDT

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Isnt this like Standard life or some other pensions butcherer getting in on the act?

Could be like when Standard Life , Aviva and other big insurers started setting up 'property funds' for investers right at the peak of the bubble ......and now those investers are locked in as the fund value plummets :lol:

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bump - weird! immediately after posting this it showed as being an hour old and was halfway down the page

twilightzone :P

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bump - weird! immediately after posting this it showed as being an hour old and was halfway down the page

twilightzone :P

You are not alone. I thought it was my new netbook's non-Gates OS alternating the time with each magnificent post.

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