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NML Variable Annuity Acct C of Northwestern Mut Life Ins Co · N-8A · On 4/7/06

Filed On 4/7/06 2:34pm ET   ·   SEC File 811-21886   ·   Accession Number 1193125-6-75733

  in   Show  and 
  As Of               Filer                 Filing     As/For/On Docs:Pgs              Issuer               Agent

 4/07/06  NML Variable Annuity Acct C o..Co N-8A        4/07/06    1:1203                                   RR Donnelley/FA

Notice of Registration   ·   Form N-8A
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-8A        Nml Variable Annuity Account C                      HTML  7,417K 


Document Table of Contents

Page (sequential) | (alphabetic) Top
 
11st Page
"Series Fund Objectives and Schedules of Investments
"Small Cap Growth Stock Portfolio
"T. Rowe Price Small Cap Value Portfolio
"Aggressive Growth Stock Portfolio
"International Growth Portfolio
"Franklin Templeton International Equity Portfolio
"AllianceBernstein Mid Cap Value Portfolio
"Index 400 Stock Portfolio
"Janus Capital Appreciation Portfolio
"Growth Stock Portfolio
"Large Cap Core Stock Portfolio
"Capital Guardian Domestic Equity Portfolio
"T. Rowe Price Equity Income Portfolio
"Index 500 Stock Portfolio
"Asset Allocation Portfolio
"Balanced Portfolio
"High Yield Bond Portfolio
"Select Bond Portfolio
"Money Market Portfolio
"Statements of Assets and Liabilities
"Statements of Operations
"Statements of Changes in Net Assets
"Financial Highlights
"Notes to Series Fund Financial Statements
"Report of Independent Registered Public Accounting Firm
"Proxy Voting and Portfolio Holdings
"Director and Officer Information
"Continuance of the Sub-Advisory Agreement
"Performance
"Management s Discussion
"Shareholder Expense Example
"Investment Changes
"Investments
"Financial Statements
"Notes
"Trustees and Officers
"Distributions
"Board Approval of Investment Advisory Contracts and Management Fees
"To Our Clients
"Market Summary
"Multi-Style Equity Fund
"Aggressive Equity Fund
"Non-U.S. Fund
"Real Estate Securities Fund
"Core Bond Fund
"Notes to Schedules of Investments
"Statement of Assets and Liabilities
"Statement of Operations
"Statement of Changes in Net Assets
"Notes to Financial Statements
"Tax Information
"Basis for Approval of Investment Advisory Contracts
"Shareholder Requests for Additional Information
"Disclosure of Information about Fund Directors
"Manager, Money Managers and Service Providers

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  NML Variable Annuity Account C  

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-8A

NOTIFICATION OF REGISTRATION FILED PURSUANT TO

SECTION 8(a) OF THE INVESTMENT COMPANY ACT OF 1940

The undersigned investment company hereby notifies the Securities and Exchange Commission that it registers under and pursuant to the provisions of Section 8(a) of the Investment Company Act of 1940 and in connection with such notification of registration submits the following information:

 

Name:    NML Variable Annuity Account C
Address of Principal Business Office:   

720 East Wisconsin Avenue

Milwaukee, Wisconsin 53202

Telephone Number:    (414) 271-1444
Name and Address of Agent for Service of Process:   

Robert J. Berdan

Vice President, General Counsel and Secretary

The Northwestern Mutual Life Insurance Company

720 East Wisconsin Avenue

Milwaukee, Wisconsin 53202

Copies to:   

Michael J. Mazza

Counsel

The Northwestern Mutual Life Insurance Company

720 East Wisconsin Avenue

Milwaukee, Wisconsin 53202

(414) 665-2052

Check Appropriate Box:   

Registrant is filing a Registration Statement pursuant to Section 8(b) of the Investment Company Act of 1940 concurrently with the filing of Form N-8A

Yes ¨    No x

Item 1. Exact name of registrant.    NML Variable Annuity Account C
Item 2. Name of state under the laws of which registrant was organized or created and the date of such organization or creation.    Registrant was organized under the laws of the State of Wisconsin on July 22, 1970.
Item 3. Form of organization of registrant (for example, corporation, partnership, trust, joint stock company, association, fund).    Registrant is organized as a separate account of The Northwestern Mutual Life Insurance Company.
Item 4. Classification of registrant (face-amount certificate company, unit investment trust, or management company).    Registrant is organized as a unit investment trust.

Item 5. If a registrant is a management company:

 

(a)    state whether registrant is a “closed-end” company or an “open-end” company;

 

(b)    state whether registrant is registering as a “diversified” company or a “non-diversified” company.

   Not applicable.
Item 6. Name and address of each investment adviser of registrant.    Not applicable.


Item 7. If registrant is an investment company having a board of directors, state the name and address of each officer and director of registrant.    Not applicable.
Item 8. If registrant is an unincorporated investment company not having a board of directors:
(a) state the name and address of each sponsor of registrant;   

The Northwestern Mutual Life Insurance Company

720 East Wisconsin Avenue

Milwaukee, Wisconsin 53202

(b) state the name and address of each officer and director of each sponsor of registrant;
The following lists include all of the Trustees, executive officers and other officers of The Northwestern Mutual Life Insurance Company, without regard to their activities relating to variable annuity contracts or their authority to act or their status as “officers” as that term is used for certain purposes of the federal securities laws and rules thereunder.

 

2


TRUSTEES – As of April 1, 2006

 

Name

  

Business Address

Edward E. Barr   

2050 Center Avenue

Suite 567

Fort Lee, NJ 07024

John M. Bremer   

The Northwestern Mutual Life Insurance Company

720 East Wisconsin Avenue

Milwaukee, WI 53202

Peter W. Bruce   

The Northwestern Mutual Life Insurance Company

720 East Wisconsin Avenue

Milwaukee, WI 53202

Robert C. Buchanan   

Fox Valley Corporation

100 West Lawrence Street (54911)

P.O. Box 727

Appleton, WI (54912-0727)

George A. Dickerman   

68 Normandy Road

Longmeadow, MA 01106-1259

David J. Drury   

Poblocki & Sons, LLC

922 South 70th Street

Milwaukee, WI 53214

Connie K. Duckworth   

ARZU

77 Stone Gate Lane

Lake Forest, IL 60045

James D. Ericson   

777 East Wisconsin Avenue

Suite 3010

Milwaukee, WI 53202

David A. Erne   

Reinhart Boener Van Deuren, sc

1000 North Water Street

Suite 2100

Milwaukee, WI 53202

J. E. Gallegos   

Gallegos Law Firm

460 St. Michaels Drive

Building 300

Santa Fe, NM 87505

James P. Hackett   

Steelcase, Inc.

901 – 44th Street

Grand Rapids, MI 49508

Hans Helmerich   

Helmerich & Payne, Inc.

1437 South Boulder

Tulsa, OK 74119

Stephen F. Keller   

101 South Las Palmas Avenue

Los Angeles, CA 90004

 

3


Barbara A. King   

Landscape Structures, Inc.

Route 3

601-7th Street South

Delano, MN 55328

Margery Kraus   

APCO Worldwide

700 12th Street, NW, Suite 800

Washington, DC 20005

J. Thomas Lewis   

228 St. Charles Avenue

Suite 1024

New Orleans, LA 70130

Daniel F. McKeithan, Jr.   

Tamarack Petroleum Company, Inc.

777 East Wisconsin Avenue

Suite 1920

Milwaukee, WI 53202

Ulice Payne, Jr.   

Addison-Clifton, L.L.C.

13555 Bishop’s Court

Suite 245

Brookfield, WI 53005

H. Mason Sizemore, Jr.   

2054 N.W. Blue Ridge Drive

Seattle, WA 98177

Peter M. Sommerhauser   

Godfrey & Kahn, S.C.

780 North Water Street

Milwaukee, WI 53202-3590

John E. Steuri   

52 River Ridge Road

Little Rock, AR 72227-1518

John J. Stollenwerk   

Allen-Edmonds Shoe Corporation

201 East Seven Hills Road

P.O. Box 998

Port Washington, WI 53074-0998

Barry L. Williams   

Williams Pacific Ventures, Inc.

4 Embarcadero Center, Suite 3700

San Francisco, CA 94111

Kathryn D. Wriston   

c/o Shearman & Sterling

599 Lexington Avenue, Room 1064

New York, NY 10022

Edward J. Zore   

The Northwestern Mutual Life

Insurance Company

720 East Wisconsin Avenue

Milwaukee, WI 53202

EXECUTIVE OFFICERS – As of April 1, 2006

 

Name

  

Title

Edward J. Zore    President and Chief Executive Officer
John M. Bremer    Chief Operating Officer (Chief Compliance Officer)
Peter W. Bruce    Chief Insurance Officer
Deborah A. Beck    Executive Vice President (Planning and Technology)
William H. Beckley    Executive Vice President (Agencies)

 

4


Mason G. Ross    Executive Vice President & Chief Investment Officer
Mark G. Doll    Senior Vice President (Public Markets)
Christine H. Fiasca    Senior Vice President (Agency Services)
Richard L. Hall    Senior Vice President (Life Product)
William C. Koenig    Senior Vice President & Chief Actuary
Jean M. Maier    Senior Vice President (Insurance Operations)
Meridee J. Maynard    Senior Vice President
Gregory C. Oberland    Senior Vice President & Chief Information Officer
Gary A. Poliner    Senior Vice President & Chief Financial Officer
Marcia Rimai    Senior Vice President (Business Integration Services)
Charles D. Robinson    Senior Vice President (IPS Strategy)
John E. Schlifske    Senior Vice President (Investment Products & Services and Affiliates)
Leonard F. Stecklein    Senior Vice President (IPS)
Robert J. Berdan    Vice President, General Counsel & Secretary
Michael G. Carter    Vice President (Field Compensation & Planning)
Steven T. Catlett    Vice President (Corporate Services)
Eric P. Christophersen    Vice President (Compliance/Best Practices)
David D. Clark    Vice President (Real Estate)
Gloster B. Current    Vice President (Policyowner Services)

John M. Grogan

John C. Kelly

John L. Kordsmeier

  

Vice President (Disability Income)

Vice President & Controller

Vice President (New Business)

Susan A. Lueger    Vice President (Human Resources)
Jeffrey J. Lueken    Vice President (Securities)
Raymond J. Manista    Vice President (Corporate Planning)
David W. Simbro    Vice President (Long Term Care)
Brenda F. Skelton    Vice President (Communications)
Calvin R. Schmidt    Vice President (Investment Product Operations)
J. Edward Tippetts    Vice President (Wealth Management)
Donald G. Tyler    Vice President (IPS Products & Sales)
Martha M. Valerio    Vice President (Technology Research & Web Resources)
Michael L. Youngman    Vice President (Government Relations)

OTHER OFFICERS – As of December 1, 2005

 

Name

  

Title

John Abbott    Director-Field Benefit Consultants
Carl Amick    VP-Risk Management Operations
Jason Anderson    Assistant Director Tax
Mark Backe    Asst. General Counsel & Asst. Secretary
Rebekah Barsch    Vice President Investment Product Lines
Blaise Beaulier    Director of Project Portfolio Management
Beth M. Berger    Asst. General Counsel & Asst. Secretary
Frederick W. Bessette    Asst. General Counsel & Asst. Secretary
Maryann Bialo    Asst. Director DI Benefit
Carrie Bleck    Director Policyowner Services
Melissa Bleidorn    Asst. General Counsel & Asst. Secretary
Sandra Botcher    Asst. General Counsel & Asst. Secretary
Anne Brower    Asst. General Counsel & Asst. Secretary
Michael S. Bula    Asst. General Counsel & Asst. Secretary
Gwen Canady    Director Corporate Reporting
Kurt Carbon    Director Life Lay Standards
Susan A. Cerbins    Asst. General Counsel & Asst. Secretary
Walt Chossek    Director-Finance
Tom Christianson    Director Advanced Business Services
Barbara Courtney    Director Mutual Fund Accounting
Dennis Darland    Asst. Director DI Benefit
Mark Diestelmeier    Asst. General Counsel & Asst. Secretary
Dave Dorshorst    Director Field Services and Support

 

5


John E. Dunn    Asst. General Counsel & Asst. Secretary
James R. Eben    Asst. General Counsel & Asst. Secretary
Cheryl Flanders    Compliance & QA Consultant
Carol Flemma    Director-IPS Bus Development/Comm
Don Forecki    Director Investment Operations
James C. Frasher    Asst. General Counsel & Asst. Secretary
John Garofani    Asst. General Counsel & Asst. Secretary
Sheila Gavin    Asst. General Counsel & Asst. Secretary
Don Gehrke    Director-Inv Client Services
Tim Gerend    Asst. General Counsel & Asst. Secretary
Wally Givler    Vice President Investment Accounting
Kevin M. Gleason    Asst. General Counsel & Asst. Secretary
Bob Gleeson    Vice President & Medical Director
C. Claibourne Greene    Asst. General Counsel & Asst. Secretary
Tom Guay    Vice President Underwriting Standards
Greg Gurlik    Director Long Term Care Product Development
Wayne Heidenreich    Medical Director
Gary Hewitt    Vice President & Treasurer
Patricia Hillmann    Director-Annuity Customer Service
Mark W. Humphrey    Director-Architecture Construction Environmental Services
Sharon A. Hyde    Asst. Director Disability Benefit
Elizabeth Idleman    Asst. General Counsel & Asst. Secretary
Todd Jones    Asst. Director- IPS Finance
David B. Kennedy    Asst. General Counsel & Asst. Secretary
Mollie Kenny    Regulatory Consultant
Don Kiefer    Vice President Actuary
James Koelbl    Asst. General Counsel & Asst. Secretary
Abim Kolawole    Asst. General Counsel & Asst. Secretary
Robert Kowalsky    Vice President & Chief Architect
Carol L. Kracht    Vice President, Deputy General Counsel & Investment Counsel
Pat Krueger    Director Annuity Customer Service
Todd Kuzminski    Director Investment Accounting
Donna Lemanczyk    Director-Investment Closing
Elizabeth Lentini    Asst. General Counsel & Asst. Secretary
Sally J. Lewis    Asst. General Counsel & Asst. Secretary
James Lodermeier    Senior Actuary
George R. Loxton    Asst. General Counsel & Asst. Secretary
Cindy Lubbert    Asst. Director-DI Underwriting
Dean Mabie    Asst. General Counsel & Asst. Secretary
Jon Magalska    Actuary
Steve Mannebach    Director Field Management Development
Anthony C. Marino    Asst. General Counsel & Asst. Secretary
Jeff Marks    Director Special Projects
Steve Martinie    Asst. General Counsel & Asst. Secretary
Ted Matchulat    Director Product Compliance
Allan McDonnell    Director-Order Entry Desk/Retail Svc
James L. McFarland    Asst. General Counsel & Asst. Secretary
Patrick McKeown    Investment Research Consultant
Larry S. Meihsner    Asst. General Counsel & Asst. Secretary
Bob Meilander    Vice President Corporate Actuary
Christopher Menting    Asst. General Counsel & Asst. Secretary
Richard E. Meyers    Asst. General Counsel & Asst. Secretary
Joanne Migliaccio    Director Field Services and Support
Michael Mihm    Asst. Director-IPS Field Consulting
Lynn Milewski    Director Annuity New Business
Daniel Moakley    Asst. General Counsel & Asst. Secretary
Jill Mocarski    Medical Director
Karen Molloy    Director Banking & Cash Management

 

6


Diane Moro-Goane    Director Marketing Materials Review
Scott J. Morris    Asst. General Counsel & Asst. Secretary
Jennifer W. Murphy    Asst. General Counsel & Asst. Secretary
Tim Nelson    Director Market Conduct
David K. Nelson    Asst. General Counsel & Asst. Secretary
Mary S. Nelson    Asst. General Counsel & Asst. Secretary
Jeffrey Niehaus    Director-Business Retirement Markets
Kathy Oman    Director-IPS Projects and Planning
Timothy Otto    Asst. General Counsel & Asst. Secretary
Art Panighetti    Vice President Tax
Randy M. Pavlick    Asst. General Counsel & Asst. Secretary
David W. Perez    Asst. General Counsel & Asst. Secretary
Judith L. Perkins    Asst. General Counsel & Asst. Secretary
Pete Peterson    Director Long Term Care Administration
William C. Pickering    Asst. General Counsel & Asst. Secretary
Nora M. Platt    Asst. General Counsel & Asst. Secretary
Harvey W. Pogoriler    Asst. General Counsel & Asst. Secretary
Randy Powell    Medical Director
Dave Remstad    Vice President Specialty Markets
Tom Richards    Vice President Agency Development
Dan Riedl    President NMIS
Kathleen M. Rivera    Vice President and Deputy General Counsel
Bethany Rodenhuis    Vice President Audit
Tammy Roou    Asst. General Counsel & Asst. Secretary
Matt Sauer    Director-IPS Compensation
Linda Schaefer    Director-Special Investigative Unit
Thomas F. Scheer    Asst. General Counsel & Asst. Secretary
Jane Ann Schiltz    Vice President Business Markets
Kathleen H. Schluter    Vice President & Tax Counsel
Sue Schmeidel    Director Field Development
Rodd Schneider    Asst. General Counsel & Asst. Secretary
Catherine L. Shaw    Asst. General Counsel & Asst. Secretary
Sherri Shickert    Director Policyowner Services
David Silber    Asst. General Counsel & Asst. Secretary
Stephen M. Silverman    Asst. General Counsel & Asst. Secretary
Mark W. Smith    Associate General Counsel & Asst. Secretary
Warren Smith    Assistant Director-Architecture
Diane Smith    Assistant Director Policyowner Services
Richard Snyder    Director-Mutual Fund Prod
Steve Sperka    Director DI Benefits
Karen Stevens    Asst. General Counsel & Asst. Secretary
Steve Stone    Director IS Finance
Brenda J. Stugelmeyer    Asst. General Counsel & Asst. Secretary
Cheryl Svehlek    Director-Administration
Rachel Taknint    Vice President, Department Planning and Operations & Associate General Counsel
Paul Tews    Director Investment Planning
Kellen Thiel    Director-Managed Products
Derek Tyus    Director of Strategic Analysis & Planning
Mary Beth Van Groll    Vice President Information Systems
Natalie Versnik    Director Policyowner Services
Andy Ware    Vice President Actuary
Joel Weiner    Medical Director
Catherine A. Wilbert    Asst. General Counsel & Asst. Secretary
Don Wilkinson    Vice President Agency Administration
Jeff Williams    Director Compliance Risk Management
Brian Wilson    Director-IPS National Sales
John Wilson    Director Long Term Care Sales Support
Robert Wright    Director-Affinity Funds
Catherine M. Young    Asst. General Counsel & Asst. Secretary

 

7


Terry R. Young    Asst. General Counsel & Asst. Secretary
Rick Zehner    Vice President Life Products
Patti Zimmermann    Director Investment Technology & Development
Philip Zwieg    Vice President Information Systems

The business addresses for all of the executive officers and other officers is 720 East Wisconsin Avenue, Milwaukee, Wisconsin 53202.

 

(c) state the name and address of each trustee and each custodian of registrant.    Not applicable.
Item 9.   

(a)    State whether registrant is currently issuing and offering its securities directly to the public.

   Yes.

(b)    If registrant is currently issuing and offering its securities to the public through an underwriter, state the name and address of such underwriter.

  

Northwestern Mutual Investment Services, LLC

611 East Wisconsin Avenue, Milwaukee, Wisconsin 53202.

(c)    If the answer to Item 9(a) is “no” and the answer to Item 9(b) is “not applicable,” state whether registrant presently proposes to make a public offering of its securities.

   Not applicable.

(d)    State whether registrant has any securities currently issued and outstanding.

   Yes.

(e)    If the answer to Item 9(d) is “yes,” state as of a date not to exceed ten days prior to the filing of this notification of registration the number of beneficial owners of registrant’s outstanding securities (other than short-term paper) and the name of any company owning more 10 percent or more of registrant’s outstanding voting securities.

   As of March 31, 2006, 222 variable annuity contracts issued in connection with NML Variable Annuity Account C were outstanding. All such contracts were issued as contracts for plans qualifying for special treatment under various provisions of the Internal Revenue Code.
Item 10. State the current value of registrant’s total assets.    As of March 31, 2006, total assets of NML Variable Annuity Account C had a value of $531,515,482
Item 11. State whether registrant has applied or intends to apply for a license to operate as a small business investment company under the Small Business Investment Act of 1958.    No.
Item 12. Attach as an exhibit a copy of the registrant’s last regular periodic report to its securityholders, if any.    A copy of the last regular report to contract owners dated December 31, 2005 is attached.

 

8


SIGNATURES

Pursuant to the requirements of the Investment Company Act of 1940, the sponsor of the registrant has caused this notification of registration to be signed on behalf of the registrant in the City of Milwaukee, and State of Wisconsin, on the 7th day of April, 2006.

 

   

Signature:

   

NML VARIABLE ANNUITY ACCOUNT C
(Registrant)

     

By:

 

THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
(Depositor)

Attest:

 

/s/ JOHN E. DUNN

   

By:

 

/s/ JOHN E. SCHLIFSKE

  John E. Dunn, Assistant General Counsel & Assistant Secretary       John E. Schlifske, Senior Vice President (Investment Products & Services and Affiliates)

 

9


December 31, 2005              THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

Picture -- LOGO

Group Combination Annuity Account C

 

Unallocated group combination annuity contracts for:    Annual Reports
Self-employed persons and their eligible employees    Northwestern Mutual Series Fund, Inc.
   Fidelity® VIP Mid Cap Portfolio
Qualified corporate retirement plans   
   Russell Investment Funds

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Letter to Contract Owners

 

December 31, 2005

 

In a year marked by contrasts, the economy and the markets held up remarkably well throughout 2005. The destructive hurricanes that hit the Southern coast threatened to derail economic growth mid-year but, surprisingly, the economy never skipped a beat. On the contrary, the potential for rebuilding turned what was considered a disaster into a potential economic stimulus that bolstered stock market returns late in the year, particularly in the Industrials and Materials sectors. Substantially higher energy prices affected the entire country but failed to dampen consumer spending, and consumer confidence ended the year higher.

 

Buoyed by fiscal and monetary policies aimed at constraining taxes and raising interest rates gradually, U.S. gross domestic product increased at a healthy rate in 2005. Promised government spending in the wake of Hurricane Katrina, coupled with rising home values throughout most of the year, aided the economy and boosted consumer confidence. Housing continued to play a major role in economic activity during 2005, as rising home values allowed homeowners to borrow against the equity in their homes at attractive long-term rates. Huge mortgage equity withdrawals fueled consumer demand for everything from home appliances to autos.

 

The U.S. stock market advanced overall for the third consecutive year in 2005, though returns were lower than in the previous two years. Despite rising oil prices, higher short-term interest rates and the hurricanes, U.S. corporations enjoyed a solid year, reporting good corporate earnings and strong consumer demand. The market enjoyed low volatility throughout the year, and all major indexes posted gains. The S&P 500 Index — a benchmark of U.S. equity performance — gained 4.91% for the year, while mid- capitalization stocks and international equities were the clear winners in 2005. Mid-cap stocks gained 12.56%, as measured by the S&P MidCap 400 Index, and foreign stocks gained 14.02%, as measured by the EAFE Index. Energy was once again the top performing sector for the year.

 

It was a fairly uneventful year in the bond market, which was also marked by low volatility. Bonds posted a positive, but small, gain of 2.57% for the year, as measured by the Citigroup US Broad Investment Grade Bond Index. High yield bonds, which had enjoyed above-average returns in 2003 and 2004, gained 2.07% for the year, as measured by the Citigroup High Yield Cash Pay Index. The yield on the 10-year Treasury bond barely moved over the twelve-month period, ending the year at 4.39%, up from 4.21% on January 1, 2005. Short-term interest rates, however, continued to climb as the Federal Reserve Board raised rates eight times in 2005, increasing the federal funds rate by 200 basis points, or 2%, to 4.25% at year end, the highest the rate has been since May 2001.

 

While the consensus calls for 3.5% GDP growth in the first half of 2006, we believe several factors may work together to keep growth lower in the coming months. Gasoline prices were high throughout 2005, but higher home heating costs only began to reach consumers late in the year. Taken together, higher energy costs may put a dampening effect on other consumer spending as we head into the new year. We expect positive, but slower, growth in 2006, given a continued slowdown in housing sales, a fairly valued stock market, and additional interest rate hikes that could be reflected in higher mortgage rates. We caution investors to recognize that risks exist this late in the business cycle, when slower economic growth is typical.

 

Despite our tempered enthusiasm, the remarkable resiliency of the U.S. economy cannot be understated. Consumer confidence remains high despite concerns, and productivity continues to be a real positive for our economy. In the past, U.S. corporations have continued to find ways to compete successfully in the global marketplace, and we see no fundamental reason for this to change.

 

Our best advice continues to be to keep your expectations in line. Slow, steady growth is best achieved with a well-thought-out plan and a well-balanced portfolio of investments. Working with your financial representative to determine the mix of assets best suited to your risk level and stage of life is the key to long-term investment success.

 

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Edward J. Zore

President and Chief

Executive Officer

 

Mark G. Doll

Senior Vice President

Investments

The Northwestern Mutual Life Insurance Company
(Northwestern Mutual)

 

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i


 

How To Get More Information

 

Northwestern Mutual Express:

 

1-800-519-4665

Contact Your Northwestern Mutual Investment Services representative, if you have questions about your contract or any of the contract owner privileges.

 

Information on the Internet:

 

Northwestern Mutual Financial Network

WWW.NMFN.COM

 

For information about Northwestern Mutual visit us on our Website.

 

ii


Contents

 

Performance Summary for NML Variable Annuity Account C

         

Northwestern Mutual Series Fund, Inc. - Annual Report

         

Fidelity VIP Mid Cap Portfolio - Annual Report

(This report follows the end of the Northwestern Mutual Series Fund, Inc.)

         

Russell Investment Funds - Annual Report

(This report follows the end of the Fidelity VIP Mid Cap Portfolio.)

         

Prospectus Supplement

         

The performance data quoted represents past performance. Past performance is historical and does not guarantee future performance. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Current performances may be lower or higher than the performance data quoted. For the most recent month-end performance information visit www.nmfn.com.

 

 

iii


Performance Summary    as of December 31, 2005

 

Front Load Contract

 

Total return(j)
at unit value
(as of 12/31/05)
   Small Cap
Growth Stock
Division
    T. Rowe
Price Small
Cap Value
Division
    Aggressive
Growth
Stock
Division
    International
Growth
Division
    Franklin
Templeton
International
Equity
Division
   

AllianceBernstein
Mid Cap

Value

Division

    Index 400
Stock
Division
 

1 year

   5.49 %   1.73 %   0.70 %   11.96 %   5.81 %   0.06 %   6.62 %

5 years

   27.57 %       (11.71 %)       22.72 %       38.43 %

Annualized

   4.99 %       (2.46 %)       4.18 %