September 5, 2014

VIA EDGAR

Securities and Exchange Commission

Division of Investment Management

100 F Street, NE

Washington, DC 20549

RE:	Northwestern Mutual Variable Life Account I
	EDGAR CIK No. 0000742277; File No. 811-3989
	Northwestern Mutual Variable Life Account II
	EDGAR CIK No. 0001359314; File No. 811-21933

Dear Sir or Madam:

On behalf of Northwestern Mutual Life Insurance Company and Northwestern Mutual Variable Life Account I and Account II, (“Registrants” or the “Accounts”) we hereby submit, pursuant to Rule 30b2-1 under the Investment Company Act of 1940 (the “1940 Act”), that the Accounts’ semi-annual report for the period ending June 30, 2014 has been transmitted to policy owners as required by Rule 30e-2 under the 1940 Act.

The following annual reports were filed with the Commission via EDGAR on the date indicated below and are incorporated herein by reference:

Underlying Investment Company	CIK No.	Date Filed	Registration No.
Northwestern Mutual Series Fund, Inc.	0000742212	09/05/2014	811-03990
Fidelity VIP Mid Cap Portfolio	0000927384	08/20/2014	811-07205
Fidelity VIP Contrafund Portfolio	0000831016	08/20/2014	811-05511
Neuberger Berman Socially Responsive Portfolio	0000736913	08/22/2014	811-04255
Russell Investment Funds	0000824036	08/20/2014	811-05371
Russell Investment Funds – Life Points Variable Target Portfolio Series	0000824036	08/20/2014	811-05371
Credit Suisse Trust Commodity Return Strategy Portfolio	0000941568	09/04/2014	811-07261

Some of the investment companies above (or series thereof) may not be available under every policy offered by a Registrant.

In addition, financial statements for the Accounts are filed herewith. This filing will also include any other materials required to be filed, if any.

Please direct any questions or comments regarding this filing to the undersigned at 414-665-2418.

Sincerely,

/s/ Barbara Courtney

Barbara Courtney

Director – Mutual Fund Accounting

The Northwestern Mutual Life Insurance Company • 720 East Wisconsin Avenue, Milwaukee, Wisconsin 53202-4797 • 414 271 1444

THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

Variable Life

SEMI-ANNUAL REPORTS

June 30,2014

Northwestern Mutual Variable Life Account Northwestern Mutual Variable Life Account II

Optimized to contain one or more of the following:*

Northwestern Mutual Series Fund, Inc.

Fidelity® VIP Mid Cap Portfolio Service Class 2

Fidelity® VIP Contrafund® Portfolio Service Class 2

Neuberger Berman AMT Socially Responsive Portfolio

Russell Investment Funds

www.northwestemmutual.com

90-1899 (0786) (REV 0814)

Russell Investment Funds - LifePoints® Variable Target Portfolio Series

Credit Suisse Trust Commodity Return Strategy Portfolio

*See Table of Contents for more information and a list of Prospectus supplements and/or shareholder documents, if any,

The Northwestern Mutual Life Insurance Company (Northwestern Mutual)

How To Get More Information

Information on the Internet:

www.northwesternmutual.com

To obtain current performance information and information about Northwestern Mutual, visit us on our website. You can also visit us at our customer service section from our website for information on policy values and current fund performance. This site also allows you to view past confirmation and policy statements, as well as transfer funds online.

To sign up for this service please call 1-866-424-2609 between 7:00 a.m. - 6:00 p.m. Central Time Monday - Friday. Your Northwestern Mutual Financial Representative is also available to answer any questions you have about your variable life insurance policy or any of our products.

For inforce policy service on Variable CompLife, Custom Variable Universal Life, and Variable Whole Life, please call 1-866-424-2609, between 7:00 a.m. - 6:00 p.m. Central Time Monday - Friday.

For inforce policy service on Variable Executive Life, Variable Joint Life, Executive Variable Universal Life, and Survivorship Variable Universal Life, please call
1-866-464-3800, between 7:30 a.m. - 5:00 p.m. Central Time Monday - Friday.

Contents

Northwestern Mutual Series Fund, Inc. - Semi-Annual Report	248 pages
Fidelity® VIP Mid Cap Portfolio - Semi-Annual Report	20 pages
(This report follows the end of the Northwestern Mutual Series Fund, Inc.)
Fidelity® VIP Contrafund® Portfolio - Semi-Annual Report	24 pages
(This report follows the end of the Fidelity® VIP Mid Cap Portfolio)
Neuberger Berman AMT Socially Responsive Portfolio - Semi-Annual Report	24 pages
(This report follows the end of the Fidelity® VIP Contrafund® Portfolio)
Russell Investment Funds - Semi-Annual Report	143 pages
(This report follows the end of the Neuberger Berman AMT Socially Responsive Portfolio)
Russell Investment Funds - LifePoints® Variable Target Portfolio Series - Semi-Annual Report	59 pages
(This report follows the end of the Russell Investment Funds)
Credit Suisse Trust Commodity Return Strategy Portfolio - Semi-Annual Report	36 pages
(This report follows the end of the Russell Investment Funds - LifePoints® Variable Target Portfolio Series)
Northwestern Mutual Variable Life Account Financial Statements	34 pages
Northwestern Mutual Variable Life Account II Financial Statements	33 pages
Prospectus Supplements and Shareholder Notices	33 pages

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 performance may be lower or higher than the performance data quoted. For the most recent month-end performance information visit www.northwesternmutual.com.

Annual Report December 31, 2013

Northwestern Mutual Variable Life Account

Financial Statements

Northwestern Mutual Variable Life Account Financial Statements

Table of Contects

Northwestern Mutual Variable Life Account
Statements of Assets and Liabilities	1
Statements of Operations	9
Statements of Changes in Net Assets	13
Notes to Financial Statements	23
Report of Independent Registerd Public Accounting Firm	32

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Growth Stock Division		Focused Appreciation Division		Large Cap Core Stock Division		Large Cap Blend Division		Index 500 Stock Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$368,178		$116,380		$233,909		$6,157		$1,008,828
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		6		-		-		-
Total Assets		368,178		116,386		233,909		6,157		1,008,828
Liabilities:
Due to Northwestern Mutual Life Insurance Company		13		-		27		-		26
Total Liabilities		13		-		27		-		26
Total Net Assets		$368,165		$116,386		$233,882		$6,157		$1,008,802
Net Assets:
Variable Life Policies Issued:
Before October 11, 1995
Policyowners’ Equity		$32,703		$7,314		$26,444		$346		$145,092
Northwestern Mutual Equity		480		88		452		4		1,840
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		313,573		97,781		191,422		5,280		790,374
Northwestern Mutual Equity		8,819		3,229		5,535		132		22,121
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		5,610		3,756		5,318		297		19,895
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		6,980		4,218		4,711		98		29,480
Total Net Assets		$368,165		$116,386		$233,882		$6,157		$1,008,802
(1)   Investments, at cost		$244,379		$77,510		$155,322		$5,164		$740,286
Mutual Fund Shares Held		125,146		43,328		137,513		5,932		279,609
(2)   Accumulation Unit Value		$3.638539		$2.883615		$2.759081		$1.407785		$4.001083
Units Outstanding		88,605		35,029		71,386		3,844		203,071
(3)   Accumulation Unit Value		$49.977915		$30.372615		$37.544148		$11.980322		$91.297175
Units Outstanding		112		124		142		25		218
(4)   Accumulation Unit Value		$49.977915		$30.372615		$37.544148		$11.980322		$91.297175
Units Outstanding		140		139		125		8		323

The Accompanying Notes are an Integral Part of the Financial Statements. 1

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Large Company Value Division		Domestic Equity Division		Equity Income Division		Mid Cap Growth Stock Division		Index 400 Stock Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$7,590		$172,430		$118,061		$448,961		$279,423
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		27		18		-		-
Total Assets		7,590		172,457		118,079		448,961		279,423
Liabilities:
Due to Northwestern Mutual Life Insurance Company		5		-		-		40		10
Total Liabilities		5		-		-		40		10
Total Net Assets		$7,585		$172,457		$118,079		$448,921		$279,413
Net Assets:
Variable Life Policies Issued:
Before October 11, 1995
Policyowners’ Equity		$1,047		$15,353		$9,942		$64,245		$14,363
Northwestern Mutual Equity		4		209		129		1,016		165
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		6,012		141,509		96,600		361,679		241,899
Northwestern Mutual Equity		163		4,676		2,841		10,036		6,821
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		-		4,911		3,811		4,898		7,437
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		359		5,799		4,756		7,047		8,728
Total Net Assets		$7,585		$172,457		$118,079		$448,921		$279,413
(1)   Investments, at cost		$6,588		$132,310		$85,217		$325,148		$203,729
Mutual Fund Shares Held		7,100		133,874		68,560		114,414		146,988
(2)   Accumulation Unit Value		$1.464939		$1.893569		$2.411872		$3.416219		$3.504450
Units Outstanding		4,215		77,201		41,230		108,810		70,973
(3)   Accumulation Unit Value		$12.266796		$20.154766		$25.403806		$94.654719		$39.846886
Units Outstanding		-		244		150		52		187
(4)   Accumulation Unit Value		$12.266796		$20.154766		$25.403806		$94.654719		$39.846886
Units Outstanding		29		288		187		74		219

2 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Mid Cap Value Division		Small Cap Growth Stock Division		Index 600 Stock Division		Small Cap Value Division		International Growth Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$51,334		$246,640		$16,820		$184,771		$98,029
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		2		-		-		16		2
Total Assets		51,336		246,640		16,820		184,787		98,031
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		4		1		-		-
Total Liabilities		-		4		1		-		-
Total Net Assets		$51,336		$246,636		$16,819		$184,787		$98,031
Net Assets:
Variable Life Policies Issued:
Before October 11, 1995
Policyowners’ Equity		$3,619		$11,481		$1,915		$14,517		$4,791
Northwestern Mutual Equity		44		143		24		172		70
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		43,311		216,042		13,708		153,933		82,573
Northwestern Mutual Equity		1,439		6,565		413		4,833		2,811
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		1,048		3,923		605		4,434		4,108
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4) Policyowners’ Equity		1,875		8,482		154		6,898		3,678
Total Net Assets		$51,336		$246,636		$16,819		$184,787		$98,031
(1)   Investments, at cost		$37,842		$181,460		$14,430		$122,229		$93,344
Mutual Fund Shares Held		30,702		95,008		12,628		75,355		68,696
(2)   Accumulation Unit Value		$2.618947		$3.359376		$1.513818		$3.198795		$1.928280
Units Outstanding		17,087		66,266		9,328		49,633		44,280
(3)   Accumulation Unit Value		$27.585004		$43.773190		$16.744685		$34.046809		$20.524033
Units Outstanding		38		90		36		130		200
(4)   Accumulation Unit Value		$27.585004		$43.773190		$16.744685		$34.046809		$20.524033
Units Outstanding		68		194		9		203		179

The Accompanying Notes are an Integral Part of the Financial Statements. 3

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Research International Core Division		International Equity Division		Emerging Markets Equity Division		Money Market Division		Short-Term Bond Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$19,157		$593,236		$30,450		$170,281		$10,581
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		12		20		4		-		1
Total Assets		19,169		593,256		30,454		170,281		10,582
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		115		-
Total Liabilities		-		-		-		115		-
Total Net Assets		$19,169		$593,256		$30,454		$170,166		$10,582
Net Assets:
Variable Life Policies Issued:
Before October 11, 1995
Policyowners’ Equity		$1,294		$71,768		$1,520		$12,483		$742
Northwestern Mutual Equity		28		1,081		27		244		9
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		15,629		473,913		25,476		120,382		8,825
Northwestern Mutual Equity		470		14,069		703		5,476		289
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		1,264		15,927		1,600		12,556		39
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		484		16,498		1,128		19,025		678
Total Net Assets		$19,169		$593,256		$30,454		$170,166		$10,582
(1)   Investments, at cost		$15,775		$459,917		$30,561		$170,281		$10,565
Mutual Fund Shares Held		19,409		278,514		30,633		170,281		10,273
(2)   Accumulation Unit Value		$1.154295		$3.556947		$0.909813		$1.544536		$1.010673
Units Outstanding		13,947		137,193		28,774		81,486		9,017
(3)   Accumulation Unit Value		$10.947312		$5.431053		$10.783888		$41.539003		$12.142453
Units Outstanding		115		2,932		148		302		3
(4)   Accumulation Unit Value		$10.947312		$5.431053		$10.783888		$41.539003		$12.142453
Units Outstanding		44		3,038		105		458		56

4 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Select Bond Division		Long-Term U.S. Government Bond Division		Inflation Protection Division		High Yield Bond Division		Multi-Sector Bond Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$244,648		$4,876		$8,585		$107,038		$21,917
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		94		-		3		-		1
Total Assets		244,742		4,876		8,588		107,038		21,918
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		-
Total Liabilities		-		-		-		-		-
Total Net Assets		$244,742		$4,876		$8,588		$107,038		$21,918
Net Assets:
Variable Life Policies Issued:
Before October 11, 1995
Policyowners’ Equity		$23,079		$384		$620		$7,833		$1,274
Northwestern Mutual Equity		403		4		6		113		19
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		180,340		4,294		6,676		88,454		19,059
Northwestern Mutual Equity		6,135		130		187		2,589		583
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		24,991		64		570		4,708		299
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		9,794		-		529		3,341		684
Total Net Assets		$244,742		$4,876		$8,588		$107,038		$21,918
(1)   Investments, at cost		$250,025		$5,673		$9,483		$97,843		$22,335
Mutual Fund Shares Held		199,713		5,276		7,927		142,717		20,312
(2)   Accumulation Unit Value		$2.541856		$1.113443		$1.037245		$3.312039		$1.137785
Units Outstanding		73,362		3,973		6,616		27,489		17,263
(3)   Accumulation Unit Value		$200.286369		$15.502339		$13.476716		$43.465300		$15.449941
Units Outstanding		125		4		42		108		19
(4)   Accumulation Unit Value		$200.286369		$15.502339		$13.476716		$43.465300		$15.449941
Units Outstanding		49		-		39		77		44

The Accompanying Notes are an Integral Part of the Financial Statements. 5

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Balanced Division		Asset Allocation Division		Fidelity VIP Mid Cap Division		Fidelity VIP Contrafund Division		Neuberger Berman AMT Socially Responsive Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$354,543		$44,839		$-		$-		$-
Fidelity Variable Insurance Products		-		-		169,443		31,547		-
Neuberger Berman Advisers Management Trust		-		-		-		-		4,648
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		-		6		-		-
Total Assets		354,543		44,839		169,449		31,547		4,648
Liabilities:
Due to Northwestern Mutual Life Insurance Company		517		5		-		2		-
Total Liabilities		517		5		-		2		-
Total Net Assets		$354,026		$44,834		$169,449		$31,545		$4,648
Net Assets:
Variable Life Policies Issued:
Before October 11, 1995
Policyowners’ Equity		$160,489		$5,885		$14,745		$1,882		$821
Northwestern Mutual Equity		1,762		83		178		16		7
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		170,054		33,949		138,277		26,538		3,165
Northwestern Mutual Equity		5,189		1,082		4,576		687		93
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		10,000		1,349		5,567		1,538		180
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		6,532		2,486		6,106		884		382
Total Net Assets		$354,026		$44,834		$169,449		$31,545		$4,648
(1)   Investments, at cost		$341,622		$36,317		$141,934		$24,321		$3,804
Mutual Fund Shares Held		226,690		35,113		4,760		934		214
(2)   Accumulation Unit Value		$3.168393		$1.830603		$3.835558		$1.392090		$1.377320
Units Outstanding		55,311		19,137		37,245		19,557		2,365
(3)   Accumulation Unit Value		$172.248875		$19.484028		$40.398542		$15.005573		$14.744385
Units Outstanding		58		69		138		103		12
(4)   Accumulation Unit Value		$172.248875		$19.484028		$40.398542		$15.005573		$14.744385
Units Outstanding		38		128		151		59		26

6 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Russell Multi-Style Equity Division		Russell Aggressive Equity Division		Russell Non-U.S. Division		Russell Core Bond Division		Russell Global Real Estate Securities Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$-		$-		$-		$-		$-
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		201,587		109,413		134,164		86,007		157,269
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		1		-		-		2		2
Total Assets		201,588		109,413		134,164		86,009		157,271
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		156		3		-		-
Total Liabilities		-		156		3		-		-
Total Net Assets		$201,588		$109,257		$134,161		$86,009		$157,271
Net Assets:
Variable Life Policies Issued:
Before October 11, 1995
Policyowners’ Equity		$8,879		$6,860		$8,080		$5,100		$9,706
Northwestern Mutual Equity		118		84		118		108		130
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		166,711		91,598		108,370		61,639		131,443
Northwestern Mutual Equity		5,421		2,905		3,483		1,973		4,284
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		12,566		3,855		7,794		13,433		5,970
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		7,893		3,955		6,316		3,756		5,738
Total Net Assets		$201,588		$109,257		$134,161		$86,009		$157,271
(1)   Investments, at cost		$140,952		$83,587		$123,975		$85,329		$158,920
Mutual Fund Shares Held		10,694		6,482		10,890		8,215		10,713
(2)   Accumulation Unit Value		$1.457823		$2.347887		$1.717753		$2.076847		$3.666253
Units Outstanding		118,078		40,251		65,118		30,629		37,021
(3)   Accumulation Unit Value		$16.178812		$26.724835		$18.624500		$22.077570		$38.920595
Units Outstanding		777		144		419		608		153
(4)   Accumulation Unit Value		$16.178812		$26.724835		$18.624500		$22.077570		$38.920595
Units Outstanding		488		148		339		170		147

The Accompanying Notes are an Integral Part of the Financial Statements. 7

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Russell LifePoints Moderate Strategy Division		Russell LifePoints Balanced Strategy Division		Russell LifePoints Growth Strategy Division		Russell LifePoints Equity Growth Strategy Division		Credit Suisse Trust Commodity Return Strategy Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$-		$-		$-		$-		$-
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		2,150		14,724		16,736		8,224		-
Credit Suisse Trust		-		-		-		-		15,560
Due from Northwestern Mutual Life Insurance Company		1		2		-		-		5
Total Assets		2,151		14,726		16,736		8,224		15,565
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		-
Total Liabilities		-		-		-		-		-
Total Net Assets		$2,151		$14,726		$16,736		$8,224		$15,565
Net Assets:
Variable Life Policies Issued:
Before October 11, 1995
Policyowners’ Equity		$345		$2,370		$2,601		$750		$536
Northwestern Mutual Equity		3		36		39		11		9
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		1,644		11,206		13,584		6,608		12,916
Northwestern Mutual Equity		59		402		450		198		402
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		77		41		42		-		1,164
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		23		671		20		657		538
Total Net Assets		$2,151		$14,726		$16,736		$8,224		$15,565
(1)   Investments, at cost		$2,108		$13,474		$14,642		$7,020		$15,301
Mutual Fund Shares Held		207		1,410		1,636		857		2,474
(2)   Accumulation Unit Value		$1.129701		$1.173673		$1.195791		$1.221337		$7.724122
Units Outstanding		1,508		9,890		11,736		5,572		1,723
(3)   Accumulation Unit Value		$13.568584		$13.255096		$12.591524		$11.740704		$7.085099
Units Outstanding		6		3		3		-		164
(4)   Accumulation Unit Value		$13.568584		$13.255096		$12.591524		$11.740704		$7.085099
Units Outstanding		2		51		2		56		76

8 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Statements of Operations

For the Year Ended December 31, 2013

(in thousands)

	Growth Stock Division		Focused Appreciation Division			Large Cap Core Stock Division		Large Cap Blend Division			Index 500 Stock Division
Income:
Dividend income		$2,172		$497			$2,473		$51			$16,436
Expenses:
Mortality and expense risk charges		1,397		434			933		22			3,907
Taxes		14		4			12		-			66
Total Expenses		1,411		438			945		22			3,973
Less waived fees		-		-			-		-			-
Net Expenses		1,411		438			945		22			3,973
Net investment income (loss)		761		59			1,528		29			12,463
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		4,234		2,826			1,581		212			5,029
Realized gain distributions		22,649		-			-		217			18,279
Realized gains (losses)		26,883		2,826			1,581		429			23,308
Change in unrealized appreciation/ depreciation of investments during the period		69,866		23,435			49,353		829			208,382
Net increase (decrease) in net assets resulting from operations		$97,510		$26,320			$52,462		$1,287			$244,153
	Large Company Value Division		Domestic Equity Division			Equity Income Division		Mid Cap Growth Stock Division			Index 400 Stock Division
Income:
Dividend income		$105		$2,616			$1,451		$1,282			$2,669
Expenses:
Mortality and expense risk charges		26		656			446		1,843			1,064
Taxes		-		7			4		30			6
Total Expenses		26		663			450		1,873			1,070
Less waived fees		-		-			-		-			-
Net Expenses		26		663			450		1,873			1,070
Net investment income (loss)		79		1,953			1,001		(591	)		1,599
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		374		(43	)		674		2,062			4,896
Realized gain distributions		119		-			-		16,370			8,618
Realized gains (losses)		493		(43	)		674		18,432			13,514
Change in unrealized appreciation/ depreciation of investments during the period		870		42,071			25,112		73,842			54,212
Net increase (decrease) in net assets resulting from operations		$1,442		$43,981			$26,787		$91,683			$69,325

The Accompanying Notes are an Integral Part of the Financial Statements. 9

Northwestern Mutual Variable Life Account

Statements of Operations

For the Year Ended December 31, 2013

(in thousands)

	Mid Cap Value Division			Small Cap Growth Stock Division		Index 600 Stock Division			Small Cap Value Division			International Growth Division
Income:
Dividend income		$444			$1,047		$488			$1,891			$1,259
Expenses:
Mortality and expense risk charges		195			915		47			699			372
Taxes		2			5		1			6			2
Total Expenses		197			920		48			705			374
Less waived fees		-			-		-			-			-
Net Expenses		197			920		48			705			374
Net investment income (loss)		247			127		440			1,186			885
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		92			4,094		433			3,740			(650	)
Realized gain distributions		257			-		507			767			-
Realized gains (losses)		349			4,094		940			4,507			(650	)
Change in unrealized appreciation/depreciation of investments during the period		11,079			64,636		2,223			38,712			15,636
Net increase (decrease) in net assets resulting from operations		$11,675			$68,857		$3,603			$44,405			$15,871
	Research International Core Division			International Equity Division		Emerging Markets Equity Division			Money Market Division			Short-Term Bond Division
Income:
Dividend income		$20			$11,842		$191			$166			$15
Expenses:
Mortality and expense risk charges		63			2,319		104			631			36
Taxes		1			33		1			6			-
Total Expenses		64			2,352		105			637			36
Less waived fees		-			-		-			-			-
Net Expenses		64			2,352		105			637			36
Net investment income (loss)		(44	)		9,490		86			(471	)		(21	)
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		236			5,037		359			-			1
Realized gain distributions		-			140		48			-			-
Realized gains (losses)		236			5,177		407			-			1
Change in unrealized appreciation/depreciation of investments during the period		2,435			88,525		(1,882	)		-			39
Net increase (decrease) in net assets resulting from operations		$2,627			$103,192		$(1,389	)		$(471	)		$19

10 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Statements of Operations

For the Year Ended December 31, 2013

(in thousands)

	Select Bond Division			Long-Term U.S. Government Bond Division			Inflation Protection Division			High Yield Bond Division			Multi-Sector Bond Division
Income:
Dividend income		$5,830			$1			$108			$5,925			$776
Expenses:
Mortality and expense risk charges		988			29			39			446			93
Taxes		12			-			-			4			1
Total Expenses		1,000			29			39			450			94
Less waived fees		-			-			-			-			-
Net Expenses		1,000			29			39			450			94
Net investment income (loss)		4,830			(28	)		69			5,475			682
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		1,764			(731	)		(114	)		1,291			262
Realized gain distributions		3,987			13			193			-			168
Realized gains (losses)		5,751			(718	)		79			1,291			430
Change in unrealized appreciation/ depreciation of investments during the period		(17,205	)		(211	)		(1,087	)		(1,181	)		(1,610	)
Net increase (decrease) in net assets resulting from operations		$(6,624	)		$(957	)		$(939	)		$5,585			$(498	)
	Balanced Division			Asset Allocation Division			Fidelity VIP Mid Cap Division			Fidelity VIP Contrafund Division			Neuberger Berman AMT Socially Responsive Division
Income:
Dividend income		$11,660			$1,397			$415			$240			$25
Expenses:
Mortality and expense risk charges		1,545			177			620			110			12
Taxes		79			3			7			1			-
Total Expenses		1,624			180			627			111			12
Less waived fees		-			-			-			-			-
Net Expenses		1,624			180			627			111			12
Net investment income (loss)		10,036			1,217			(212	)		129			13
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		(2,049	)		98			119			870			150
Realized gain distributions		13,968			-			19,808			8			-
Realized gains (losses)		11,919			98			19,927			878			150
Change in unrealized appreciation/ depreciation of investments during the period		15,646			4,990			24,808			5,939			738
Net increase (decrease) in net assets resulting from operations		$37,601			$6,305			$44,523			$6,946			$901

The Accompanying Notes are an Integral Part of the Financial Statements. 11

Northwestern Mutual Variable Life Account

Statements of Operations

For the Year Ended December 31, 2013

(in thousands)

	Russell Multi-Style Equity Division		Russell Aggressive Equity Division		Russell Non-U.S. Division		Russell Core Bond Division			Russell Global Real Estate Securities Division
Income:
Dividend income		$2,198		$407		$2,431		$1,298			$6,345
Expenses:
Mortality and expense risk charges		735		394		491		327			669
Taxes		4		3		4		3			5
Total Expenses		739		397		495		330			674
Less waived fees		-		-		-		-			-
Net Expenses		739		397		495		330			674
Net investment income (loss)		1,459		10		1,936		968			5,671
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		5,872		1,218		306		1,094			(84	)
Realized gain distributions		10,391		7,556		-		281			6,227
Realized gains (losses)		16,263		8,774		306		1,375			6,143
Change in unrealized appreciation/ depreciation of investments during the period		32,859		22,279		21,730		(3,998	)		(6,967	)
Net increase (decrease) in net assets resulting from operations		$50,581		$31,063		$23,972		$(1,655	)		$4,847
	Russell LifePoints Moderate Strategy Division		Russell LifePoints Balanced Strategy Division		Russell LifePoints Growth Strategy Division		Russell LifePoints Equity Growth Strategy Division			Credit Suisse Trust Commodity Return Strategy Division (4)
Income:
Dividend income		$36		$283		$336		$182			$-
Expenses:
Mortality and expense risk charges		9		56		63		29			8
Taxes		-		1		1		-			-
Total Expenses		9		57		64		29			8
Less waived fees		-		-		-		-			(2	)
Net Expenses		9		57		64		29			6
Net investment income (loss)		27		226		272		153			(6	)
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		51		362		320		120			1
Realized gain distributions		41		103		-		-			-
Realized gains (losses)		92		465		320		120			1
Change in unrealized appreciation/ depreciation of investments during the period		9		706		1,551		954			259
Net increase (decrease) in net assets resulting from operations		$128		$1,397		$2,143		$1,227			$254

(4) Division commenced operations on November 15, 2013.

12 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	Growth Stock Division						Focused Appreciation Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$761			$372			$59			$(141	)
Net realized gains (losses)		26,883			2,428			2,826			2,462
Net change in unrealized appreciation/depreciation		69,866			30,637			23,435			14,195
Net increase (decrease) in net assets resulting from operations		97,510			33,437			26,320			16,516
Policy Transactions:
Policyowners’ net payments		17,907			19,641			6,168			6,448
Policy loans, surrenders and death benefits		(20,110	)		(23,795	)		(6,020	)		(7,950	)
Mortality and other (net)		(7,299	)		(7,517	)		(2,289	)		(2,450	)
Transfers from other divisions		18,642			17,447			11,303			13,134
Transfers to other divisions		(23,073	)		(23,930	)		(15,183	)		(15,549	)
Net increase (decrease) in net assets resulting from policy transactions		(13,933	)		(18,154	)		(6,021	)		(6,367	)
Net increase (decrease) in net assets		83,577			15,283			20,299			10,149
Net Assets:
Beginning of period		284,588			269,305			96,087			85,938
End of period		$368,165			$284,588			$116,386			$96,087
Units issued during the period		9,982			11,669			5,521			6,960
Units redeemed during the period		(13,965	)		(16,722	)		(7,158	)		(9,268	)
Net units issued (redeemed) during period		(3,983	)		(5,053	)		(1,637	)		(2,308	)
	Large Cap Core Stock Division						Large Cap Blend Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$1,528			$1,474			$29			$18
Net realized gains (losses)		1,581			119			429			265
Net change in unrealized appreciation/depreciation		49,353			18,456			829			53
Net increase (decrease) in net assets resulting from operations		52,462			20,049			1,287			336
Policy Transactions:
Policyowners’ net payments		12,566			13,425			213			168
Policy loans, surrenders and death benefits		(14,423	)		(16,361	)		(178	)		(52	)
Mortality and other (net)		(5,144	)		(5,195	)		(92	)		(19	)
Transfers from other divisions		9,870			13,014			2,754			2,322
Transfers to other divisions		(13,352	)		(15,634	)		(1,442	)		(2,253	)
Net increase (decrease) in net assets resulting from policy transactions		(10,483	)		(10,751	)		1,255			166
Net increase (decrease) in net assets		41,979			9,298			2,542			502
Net Assets:
Beginning of period		191,903			182,605			3,615			3,113
End of period		$233,882			$191,903			$6,157			$3,615
Units issued during the period		7,972			9,995			1,532			2,053
Units redeemed during the period		(11,575	)		(13,292	)		(680	)		(2,232	)
Net units issued (redeemed) during period		(3,603	)		(3,297	)		852			(179	)

The Accompanying Notes are an Integral Part of the Financial Statements. 13

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	Index 500 Stock Division						Large Company Value Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$12,463			$10,316			$79			$42
Net realized gains (losses)		23,308			12,887			493			310
Net change in unrealized appreciation/depreciation		208,382			84,509			870			(48	)
Net increase (decrease) in net assets resulting from operations		244,153			107,712			1,442			304
Policy Transactions:
Policyowners’ net payments		46,553			48,384			122			182
Policy loans, surrenders and death benefits		(56,088	)		(57,081	)		(218	)		108
Mortality and other (net)		(19,846	)		(19,423	)		(98	)		(17	)
Transfers from other divisions		84,237			59,917			4,785			2,708
Transfers to other divisions		(75,741	)		(67,775	)		(1,560	)		(2,766	)
Net increase (decrease) in net assets resulting from policy transactions		(20,885	)		(35,978	)		3,031			215
Net increase (decrease) in net assets		223,268			71,734			4,473			519
Net Assets:
Beginning of period		785,534			713,800			3,112			2,593
End of period		$1,008,802			$785,534			$7,585			$3,112
Units issued during the period		25,004			28,184			3,218			2,085
Units redeemed during the period		(29,019	)		(34,908	)		(1,274	)		(2,407	)
Net units issued (redeemed) during period		(4,015	)		(6,724	)		1,944			(322	)
	Domestic Equity Division						Equity Income Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$1,953			$2,326			$1,001			$951
Net realized gains (losses)		(43	)		(3,094	)		674			(850	)
Net change in unrealized appreciation/depreciation		42,071			18,183			25,112			12,820
Net increase (decrease) in net assets resulting from operations		43,981			17,415			26,787			12,921
Policy Transactions:
Policyowners’ net payments		8,611			9,596			5,510			5,151
Policy loans, surrenders and death benefits		(8,618	)		(9,944	)		(4,783	)		(5,788	)
Mortality and other (net)		(3,511	)		(3,419	)		(2,324	)		(2,085	)
Transfers from other divisions		10,450			9,421			28,760			22,379
Transfers to other divisions		(13,084	)		(19,571	)		(26,171	)		(19,131	)
Net increase (decrease) in net assets resulting from policy transactions		(6,152	)		(13,917	)		992			526
Net increase (decrease) in net assets		37,829			3,498			27,779			13,447
Net Assets:
Beginning of period		134,628			131,130			90,300			76,853
End of period		$172,457			$134,628			$118,079			$90,300
Units issued during the period		10,133			11,427			8,784			10,303
Units redeemed during the period		(12,440	)		(20,151	)		(8,263	)		(9,917	)
Net units issued (redeemed) during period		(2,307	)		(8,724	)		521			386

14 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	Mid Cap Growth Stock Division						Index 400 Stock Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$(591	)		$(1,250	)		$1,599			$1,019
Net realized gains (losses)		18,432			(2,650	)		13,514			15,432
Net change in unrealized appreciation/depreciation		73,842			44,477			54,212			16,161
Net increase (decrease) in net assets resulting from operations		91,683			40,577			69,325			32,612
Policy Transactions:
Policyowners’ net payments		22,196			24,276			10,729			11,950
Policy loans, surrenders and death benefits		(27,277	)		(31,077	)		(13,987	)		(18,503	)
Mortality and other (net)		(9,230	)		(9,553	)		(4,925	)		(4,793	)
Transfers from other divisions		19,133			11,029			39,075			24,530
Transfers to other divisions		(22,182	)		(19,151	)		(34,548	)		(27,687	)
Net increase (decrease) in net assets resulting from policy transactions		(17,360	)		(24,476	)		(3,656	)		(14,503	)
Net increase (decrease) in net assets		74,323			16,101			65,669			18,109
Net Assets:
Beginning of period		374,598			358,497			213,744			195,635
End of period		$448,921			$374,598			$279,413			$213,744
Units issued during the period		11,187			12,303			9,937			9,747
Units redeemed during the period		(15,991	)		(20,061	)		(10,904	)		(14,981	)
Net units issued (redeemed) during period		(4,804	)		(7,758	)		(967	)		(5,234	)
	Mid Cap Value Division						Small Cap Growth Stock Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$247			$356			$127			$(820	)
Net realized gains (losses)		349			(764	)		4,094			2,533
Net change in unrealized appreciation/depreciation		11,079			6,183			64,636			14,651
Net increase (decrease) in net assets resulting from operations		11,675			5,775			68,857			16,364
Policy Transactions:
Policyowners’ net payments		2,710			2,788			12,154			12,935
Policy loans, surrenders and death benefits		(2,883	)		(4,949	)		(12,997	)		(15,686	)
Mortality and other (net)		(1,022	)		(1,057	)		(4,569	)		(4,652	)
Transfers from other divisions		7,488			10,431			17,758			14,520
Transfers to other divisions		(5,963	)		(10,991	)		(19,635	)		(22,037	)
Net increase (decrease) in net assets resulting from policy transactions		330			(3,778	)		(7,289	)		(14,920	)
Net increase (decrease) in net assets		12,005			1,997			61,568			1,444
Net Assets:
Beginning of period		39,331			37,334			185,068			183,624
End of period		$51,336			$39,331			$246,636			$185,068
Units issued during the period		3,228			3,749			8,260			9,232
Units redeemed during the period		(3,212	)		(5,002	)		(10,665	)		(14,640	)
Net units issued (redeemed) during period		16			(1,253	)		(2,405	)		(5,408	)

The Accompanying Notes are an Integral Part of the Financial Statements. 15

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	Index 600 Stock Division						Small Cap Value Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$440			$129			$1,186			$(78	)
Net realized gains (losses)		940			261			4,507			5,232
Net change in unrealized appreciation/depreciation		2,223			121			38,712			15,350
Net increase (decrease) in net assets resulting from operations		3,603			511			44,405			20,504
Policy Transactions:
Policyowners’ net payments		585			329			8,638			8,877
Policy loans, surrenders and death benefits		(410	)		(147	)		(8,717	)		(10,350	)
Mortality and other (net)		(208	)		(100	)		(3,495	)		(3,432	)
Transfers from other divisions		11,460			6,537			16,147			12,209
Transfers to other divisions		(4,417	)		(2,643	)		(16,164	)		(18,815	)
Net increase (decrease) in net assets resulting from policy transactions		7,010			3,976			(3,591	)		(11,511	)
Net increase (decrease) in net assets		10,613			4,487			40,814			8,993
Net Assets:
Beginning of period		6,206			1,719			143,973			134,980
End of period		$16,819			$6,206			$184,787			$143,973
Units issued during the period		6,483			4,990			7,449			7,572
Units redeemed during the period		(2,020	)		(1,464	)		(8,471	)		(11,861	)
Net units issued (redeemed) during period		4,463			3,526			(1,022	)		(4,289	)
	International Growth Division						Research International Core Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$885			$723			$(44	)		$119
Net realized gains (losses)		(650	)		(3,011	)		236			(34	)
Net change in unrealized appreciation/depreciation		15,636			15,053			2,435			1,117
Net increase (decrease) in net assets resulting from operations		15,871			12,765			2,627			1,202
Policy Transactions:
Policyowners’ net payments		6,264			6,960			874			383
Policy loans, surrenders and death benefits		(5,244	)		(6,421	)		(196	)		(387	)
Mortality and other (net)		(1,942	)		(1,975	)		(316	)		(171	)
Transfers from other divisions		15,020			11,369			8,888			11,221
Transfers to other divisions		(14,779	)		(15,997	)		(4,941	)		(3,703	)
Net increase (decrease) in net assets resulting from policy transactions		(681	)		(6,064	)		4,309			7,343
Net increase (decrease) in net assets		15,190			6,701			6,936			8,545
Net Assets:
Beginning of period		82,841			76,140			12,233			3,688
End of period		$98,031			$82,841			$19,169			$12,233
Units issued during the period		7,831			8,966			6,065			9,163
Units redeemed during the period		(7,964	)		(12,568	)		(2,347	)		(2,334	)
Net units issued (redeemed) during period		(133	)		(3,602	)		3,718			6,829

16 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	International Equity Division						Emerging Markets Equity Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$9,490			$10,077			$86			$(41	)
Net realized gains (losses)		5,177			1,918			407			(51	)
Net change in unrealized appreciation/depreciation		88,525			77,414			(1,882	)		2,264
Net increase (decrease) in net assets resulting from operations		103,192			89,409			(1,389	)		2,172
Policy Transactions:
Policyowners’ net payments		29,876			32,343			2,064			950
Policy loans, surrenders and death benefits		(32,280	)		(37,666	)		(1,883	)		(733	)
Mortality and other (net)		(11,521	)		(11,103	)		(470	)		(309	)
Transfers from other divisions		55,104			50,411			19,420			18,438
Transfers to other divisions		(55,596	)		(57,673	)		(8,757	)		(6,547	)
Net increase (decrease) in net assets resulting from policy transactions		(14,417	)		(23,688	)		10,374			11,799
Net increase (decrease) in net assets		88,775			65,721			8,985			13,971
Net Assets:
Beginning of period		504,481			438,760			21,469			7,498
End of period		$593,256			$504,481			$30,454			$21,469
Units issued during the period		24,658			30,666			17,287			16,977
Units redeemed during the period		(28,508	)		(38,362	)		(7,400	)		(5,832	)
Net units issued (redeemed) during period		(3,850	)		(7,696	)		9,887			11,145
	Money Market Division						Short-Term Bond Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31,2012
Operations:
Net investment income (loss)		$(471	)		$(407	)		$(21	)		$62
Net realized gains (losses)		-			-			1			(10	)
Net change in unrealized appreciation/depreciation		-			-			39			34
Net increase (decrease) in net assets resulting from operations		(471	)		(407	)		19			86
Policy Transactions:
Policyowners’ net payments		64,763			70,588			371			156
Policy loans, surrenders and death benefits		(27,725	)		(46,227	)		(715	)		(1,471	)
Mortality and other (net)		(5,466	)		(5,835	)		(187	)		(110	)
Transfers from other divisions		137,550			121,247			7,512			6,676
Transfers to other divisions		(168,425	)		(136,334	)		(3,378	)		(2,058	)
Net increase (decrease) in net assets resulting from policy transactions		697			3,439			3,603			3,193
Net increase (decrease) in net assets		226			3,032			3,622			3,279
Net Assets:
Beginning of period		169,940			166,908			6,960			3,681
End of period		$170,166			$169,940			$10,582			$6,960
Units issued during the period		82,988			91,022			6,713			6,193
Units redeemed during the period		(85,306	)		(91,873	)		(3,532	)		(3,457	)
Net units issued (redeemed) during period		(2,318	)		(851	)		3,181			2,736

The Accompanying Notes are an Integral Part of the Financial Statements. 17

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	Select Bond Division						Long-Term U.S. Government Bond Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$4,830			$5,954			$(28	)		$113
Net realized gains (losses)		5,751			7,440			(718	)		104
Net change in unrealized appreciation/depreciation		(17,205	)		(1,974	)		(211	)		(58	)
Net increase (decrease) in net assets resulting from operations		(6,624	)		11,420			(957	)		159
Policy Transactions:
Policyowners’ net payments		14,540			11,986			410			232
Policy loans, surrenders and death benefits		(15,249	)		(18,396	)		(444	)		(561	)
Mortality and other (net)		(5,078	)		(6,114	)		(135	)		(163	)
Transfers from other divisions		104,940			94,839			3,693			8,647
Transfers to other divisions		(115,861	)		(77,079	)		(5,624	)		(7,157	)
Net increase (decrease) in net assets resulting from policy transactions		(16,708	)		5,236			(2,100	)		998
Net increase (decrease) in net assets		(23,332	)		16,656			(3,057	)		1,157
Net Assets:
Beginning of period		268,074			251,418			7,933			6,776
End of period		$244,742			$268,074			$4,876			$7,933
Units issued during the period		13,625			18,767			3,165			5,621
Units redeemed during the period		(19,051	)		(16,896	)		(3,839	)		(4,507	)
Net units issued (redeemed) during period		(5,426	)		1,871			(674	)		1,114
	Inflation Protection Division						High Yield Bond Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$69			$188			$5,475			$5,980
Net realized gains (losses)		79			165			1,291			593
Net change in unrealized appreciation/depreciation		(1,087	)		128			(1,181	)		6,185
Net increase (decrease) in net assets resulting from operations		(939	)		481			5,585			12,758
Policy Transactions:
Policyowners’ net payments		362			270			5,387			5,142
Policy loans, surrenders and death benefits		(581	)		(601	)		(6,064	)		(6,662	)
Mortality and other (net)		(203	)		(164	)		(2,185	)		(2,426	)
Transfers from other divisions		6,912			10,330			17,601			19,716
Transfers to other divisions		(7,633	)		(4,461	)		(19,556	)		(16,986	)
Net increase (decrease) in net assets resulting from policy transactions		(1,143	)		5,374			(4,817	)		(1,216	)
Net increase (decrease) in net assets		(2,082	)		5,855			768			11,542
Net Assets:
Beginning of period		10,670			4,815			106,270			94,728
End of period		$8,588			$10,670			$107,038			$106,270
Units issued during the period		3,546			6,376			4,777			5,763
Units redeemed during the period		(4,629	)		(2,237	)		(5,884	)		(6,106	)
Net units issued (redeemed) during period		(1,083	)		4,139			(1,107	)		(343	)

18 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	Multi-Sector Bond Division						Balanced Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$682			$7			$10,036			$2,307
Net realized gains (losses)		430			90			11,919			(4,873	)
Net change in unrealized appreciation/depreciation		(1,610	)		1,414			15,646			31,524
Net increase (decrease) in net assets resulting from operations		(498	)		1,511			37,601			28,958
Policy Transactions:
Policyowners’ net payments		1,197			677			16,344			17,602
Policy loans, surrenders and death benefits		(1,082	)		(681	)		(23,536	)		(24,948	)
Mortality and other (net)		(443	)		(272	)		(8,291	)		(8,578	)
Transfers from other divisions		11,363			15,795			56,503			31,553
Transfers to other divisions		(7,491	)		(3,008	)		(55,676	)		(32,331	)
Net increase (decrease) in net assets resulting from policy transactions		3,544			12,511			(14,656	)		(16,702	)
Net increase (decrease) in net assets		3,046			14,022			22,945			12,256
Net Assets:
Beginning of period		18,872			4,850			331,081			318,825
End of period		$21,918			$18,872			$354,026			$331,081
Units issued during the period		10,007			13,147			7,120			8,265
Units redeemed during the period		(7,378	)		(2,600	)		(9,043	)		(12,391	)
Net units issued (redeemed) during period		2,629			10,547			(1,923	)		(4,126	)
	Asset Allocation Division						Fidelity VIP Mid Cap Division
	Year Ended December 31,2013			Year Ended December 31,2012			Year Ended December 31,2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$1,217			$(79)			$(212)			$(47	)
Net realized gains (losses)		98			(614	)		19,927			10,307
Net change in unrealized appreciation/depreciation		4,990			4,672			24,808			6,397
Net increase (decrease) in net assets resulting from operations		6,305			3,979			44,523			16,657
Policy Transactions:
Policyowners’ net payments		2,050			2,729			8,242			9,071
Policy loans, surrenders and death benefits		(2,883	)		(3,576	)		(7,592	)		(10,160	)
Mortality and other (net)		(998	)		(1,098	)		(3,211	)		(3,221	)
Transfers from other divisions		2,953			2,761			18,005			19,297
Transfers to other divisions		(2,166	)		(4,799	)		(18,902	)		(24,194	)
Net increase (decrease) in net assets resulting from policy transactions		(1,044	)		(3,983	)		(3,458	)		(9,207	)
Net increase (decrease) in net assets		5,261			(4	)		41,065			7,450
Net Assets:
Beginning of period		39,573			39,577			128,384			120,934
End of period		$44,834			$39,573			$169,449			$128,384
Units issued during the period		3,078			3,258			5,829			6,664
Units redeemed during the period		(3,864	)		(5,579	)		(6,607	)		(9,008	)
Net units issued (redeemed) during period		(786	)		(2,321	)		(778	)		(2,344	)

The Accompanying Notes are an Integral Part of the Financial Statements. 19

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	Fidelity VIP Contrafund Division						Neuberger Berman AMT Socially Responsive Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$129			$163			$13			$(2	)
Net realized gains (losses)		878			42			150			25
Net change in unrealized appreciation/depreciation		5,939			1,292			738			89
Net increase (decrease) in net assets resulting from operations		6,946			1,497			901			112
Policy Transactions:
Policyowners’ net payments		1,438			881			145			114
Policy loans, surrenders and death benefits		(805	)		(305	)		(264	)		(96	)
Mortality and other (net)		(464	)		(295	)		(58	)		(30	)
Transfers from other divisions		13,079			16,799			3,541			1,551
Transfers to other divisions		(8,883	)		(4,873	)		(1,300	)		(656	)
Net increase (decrease) in net assets resulting from policy transactions		4,365			12,207			2,064			883
Net increase (decrease) in net assets		11,311			13,704			2,965			995
Net Assets:
Beginning of period		20,234			6,530			1,683			688
End of period		$31,545			$20,234			$4,648			$1,683
Units issued during the period		7,574			12,918			1,645			1,107
Units redeemed during the period		(4,208	)		(2,487	)		(483	)		(472	)
Net units issued (redeemed) during period		3,366			10,431			1,162			635
	Russell Multi-Style Equity Division						Russell Aggressive Equity Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$1,459			$1,180			$10			$525
Net realized gains (losses)		16,263			7,889			8,774			(750	)
Net change in unrealized appreciation/depreciation		32,859			14,317			22,279			11,819
Net increase (decrease) in net assets resulting from operations		50,581			23,386			31,063			11,594
Policy Transactions:
Policyowners’ net payments		9,168			10,276			4,980			5,446
Policy loans, surrenders and death benefits		(12,936	)		(16,258	)		(6,040	)		(6,655	)
Mortality and other (net)		(3,942	)		(4,068	)		(2,093	)		(2,051	)
Transfers from other divisions		8,571			9,464			8,683			4,744
Transfers to other divisions		(11,935	)		(18,642	)		(8,074	)		(10,225	)
Net increase (decrease) in net assets resulting from policy transactions		(11,074	)		(19,228	)		(2,544	)		(8,741	)
Net increase (decrease) in net assets		39,507			4,158			28,519			2,853
Net Assets:
Beginning of period		162,081			157,923			80,738			77,885
End of period		$201,588			$162,081			$109,257			$80,738
Units issued during the period		12,565			16,127			5,419			5,358
Units redeemed during the period		(19,240	)		(29,592	)		(6,849	)		(9,929	)
Net units issued (redeemed) during period		(6,675	)		(13,465	)		(1,430	)		(4,571	)

20 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	Russell Non-U.S. Division						Russell Core Bond Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$1,936			$1,514			$968			$1,945
Net realized gains (losses)		306			(1,834	)		1,375			3,636
Net change in unrealized appreciation/depreciation		21,730			20,094			(3,998	)		1,968
Net increase (decrease) in net assets resulting from operations		23,972			19,774			(1,655	)		7,549
Policy Transactions:
Policyowners’ net payments		7,255			7,944			4,661			4,301
Policy loans, surrenders and death benefits		(8,105	)		(9,121	)		(8,529	)		(9,603	)
Mortality and other (net)		(2,626	)		(2,645	)		(1,898	)		(2,340	)
Transfers from other divisions		9,902			9,282			20,129			24,930
Transfers to other divisions		(11,904	)		(16,617	)		(26,632	)		(21,824	)
Net increase (decrease) in net assets resulting from policy transactions		(5,478	)		(11,157	)		(12,269	)		(4,536	)
Net increase (decrease) in net assets		18,494			8,617			(13,924	)		3,013
Net Assets:
Beginning of period		115,667			107,050			99,933			96,920
End of period		$134,161			$115,667			$86,009			$99,933
Units issued during the period		8,807			10,327			6,210			8,333
Units redeemed during the period		(11,348	)		(16,909	)		(9,484	)		(8,565	)
Net units issued (redeemed) during period		(2,541	)		(6,582	)		(3,274	)		(232	)
	Russell Global Real Estate Securities Division						Russell LifePoints Moderate Strategy Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$5,671			$6,489			$27			$42
Net realized gains (losses)		6,143			(943	)		92			29
Net change in unrealized appreciation/depreciation		(6,967	)		27,649			9			37
Net increase (decrease) in net assets resulting from operations		4,847			33,195			128			108
Policy Transactions:
Policyowners’ net payments		9,046			9,304			78			79
Policy loans, surrenders and death benefits		(9,485	)		(11,957	)		(13	)		161
Mortality and other (net)		(3,214	)		(3,496	)		(35	)		(26	)
Transfers from other divisions		26,695			19,582			1,188			2,126
Transfers to other divisions		(23,189	)		(18,918	)		(1,334	)		(641	)
Net increase (decrease) in net assets resulting from policy transactions		(147	)		(5,485	)		(116	)		1,699
Net increase (decrease) in net assets		4,700			27,710			12			1,807
Net Assets:
Beginning of period		152,571			124,861			2,139			332
End of period		$157,271			$152,571			$2,151			$2,139
Units issued during the period		6,665			6,642			868			1,644
Units redeemed during the period		(6,714	)		(8,071	)		(857	)		(459	)
Net units issued (redeemed) during period		(49	)		(1,429	)		11			1,185

The Accompanying Notes are an Integral Part of the Financial Statements. 21

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	Russell LifePoints Balanced Strategy Division						Russell LifePoints Growth Strategy Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$226			$162			$272			$140
Net realized gains (losses)		465			61			320			35
Net change in unrealized appreciation/depreciation		706			532			1,551			606
Net increase (decrease) in net assets resulting from operations		1,397			755			2,143			781
Policy Transactions:
Policyowners’ net payments		487			394			784			260
Policy loans, surrenders and death benefits		(1,053	)		(154	)		(1,411	)		(309	)
Mortality and other (net)		(257	)		(156	)		(350	)		(165	)
Transfers from other divisions		6,035			5,895			5,316			8,049
Transfers to other divisions		(1,556	)		(1,143	)		(1,091	)		(305	)
Net increase (decrease) in net assets resulting from policy transactions		3,656			4,836			3,248			7,530
Net increase (decrease) in net assets		5,053			5,591			5,391			8,311
Net Assets:
Beginning of period		9,673			4,082			11,345			3,034
End of period		$14,726			$9,673			$16,736			$11,345
Units issued during the period		4,776			4,953			4,260			8,263
Units redeemed during the period		(1,999	)		(1,082	)		(1,823	)		(891	)
Net units issued (redeemed) during period		2,777			3,871			2,437			7,372
	Russell LifePoints Equity Growth Strategy Division						Credit Suisse Trust Commodity Return Strategy Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Period November 15 to December 31, 2013
Operations:
Net investment income (loss)		$153			$61			$(6	)
Net realized gains (losses)		120			79			1
Net change in unrealized appreciation/depreciation		954			265			259
Net increase (decrease) in net assets resulting from operations		1,227			405			254
Policy Transactions:
Policyowners’ net payments		439			355			146
Policy loans, surrenders and death benefits		235			(510	)		21
Mortality and other (net)		(133	)		(90	)		(33	)
Transfers from other divisions		1,755			4,123			15,625
Transfers to other divisions		(670	)		(365	)		(448	)
Net increase (decrease) in net assets resulting from policy transactions		1,626			3,513			15,311
Net increase (decrease) in net assets		2,853			3,918			15,565
Net Assets:
Beginning of period		5,371			1,453			-
End of period		$8,224			$5,371			$15,565
Units issued during the period		2,161			3,870			2,038
Units redeemed during the period		(746	)		(788	)		(75	)
Net units issued (redeemed) during period		1,415			3,082			1,963

22 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2013

1. Organization

Northwestern Mutual Variable Life Account (“the Account”) is registered as a unit investment trust under the Investment Company Act of 1940 and is a segregated asset account of The Northwestern Mutual Life Insurance Company (“Northwestern Mutual”) used to fund variable life insurance policies (“the Policies”).

All assets of each Division of the Account are invested in shares of the corresponding Portfolio of Northwestern Mutual Series Fund, Inc., Fidelity Variable Insurance Products, Neuberger Berman Advisers Management Trust, the Russell Investment Funds and Credit Suisse Trust (collectively known as “the Funds”). The Funds are open-end investment companies registered under the Investment Company Act of 1940. The financial statements for the Portfolio’s should be read in conjunction with the financial statements and footnotes of the Divisions. Each Division of the account indirectly bears exposure to the market credit and liquidity risks of the Portfolio in which it invests.

New sales of the Policies which invest in the Account were discontinued for Variable CompLife, Variable Executive Life, and Variable Joint Life policies in 2008, Variable Life was discontinued in 1995. However, premium payments made by policy owners existing at that date will continue to be recorded by the Account.

On September 18, 2013, the Securities Exchange Commission approved an application from Northwestern Mutual on behalf of the Account permitting Northwestern Mutual to automatically transfer all remaining policy values in the Northwestern Mutual Commodities Return Strategy Division to the Credit Suisse Trust Commodity Return Strategy Division. The transfer was executed on November 15, 2013 and is included in the Statement of Changes in Net Assets as part of the transfers from other divisions or sponsor line item. Additionally, Northwestern Mutual will periodically reimburse policy owners for the additional operating expenses of the Credit Suisse Trust Commodity Return Strategy Division. Refer to note 4 - Expenses and Related Party Transactions footnote.

2. Significant Accounting Policies

A. Use of Estimates – The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets for use in estimates. Actual results could differ from those estimates.

B. Investment Valuation – The shares are valued at the Funds’ offering and redemption prices per share. As of December 31, 2013, all of the Account’s investments are identified as Level 1 securities for valuation purposes under the Fair Value Measurement Topic of the FASB Accounting Standards Codification. Level 1 securities are valued at fair value as determined by quoted prices in active markets for identical securities. All changes in fair value are recorded as change in unrealized appreciation/ depreciation of investments during the period in the statements of operations of the applicable Division.

C. Investment Income, Securities Transactions and Policy Dividends – Transactions in the Funds’ shares are accounted for on the trade date. The basis for determining cost on sale of the Funds’ shares is identified cost. Dividend income and distributions of net realized gains from the Funds are recorded on the ex–date of the dividends. Dividends and distributions received are reinvested in additional shares of the respective portfolios of the Funds. The Policies are eligible to receive policy dividends from Northwestern Mutual. Any dividends reinvested in the Account are reflected in Policyowners’ net payments in the accompanying financial statements.

23

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2013

2. Significant Accounting Policies (continued)

D. Taxes – Northwestern Mutual is taxed as a “life insurance company” under the Internal Revenue Code. The Policies, which are funded in the Account, are taxed as part of the operations of Northwestern Mutual. The Policies provide that a charge for taxes may be made against the assets of the Account. Currently, for Variable Life policies issued before October 11, 1995, Northwestern Mutual charges the Account at an annual rate of 0.05% of the Account’s net assets and reserves the right to increase, decrease or eliminate the charge for taxes in the future. Currently, for Variable CompLife policies issued on or after October 11, 1995, Variable Executive Life policies issued on or after March 2, 1998, and Variable Joint Life policies issued on or after December 10, 1998, there is no charge being made against the assets of the Account for federal income taxes, but Northwestern Mutual reserves the right to charge for taxes in the future.

E. Premium Payments – For Variable Life and Variable CompLife policies, the Account is credited for the policyowners’ net annual premiums at the respective policy anniversary dates regardless of when policyowners actually pay their premiums. Northwestern Mutual’s equity represents any unpaid portion of net annual premiums.

3. Purchases and Sales of Investments

Purchases and sales of the Funds’ shares for the year ended December 31, 2013 were as follows: (in thousands)

Division	Purchases		Sales
Growth Stock	$	35,050	$	25,656
Focused Appreciation		2,949		8,918
Large Cap Core Stock		8,486		17,433
Large Cap Blend		1,799		299
Index 500 Stock		78,035		68,096
Large Company Value		3,532		297
Domestic Equity		7,467		11,686
Equity Income		9,188		7,222
Mid Cap Growth Stock		31,523		33,041
Index 400 Stock		24,026		17,452
Mid Cap Value		4,329		3,586
Small Cap Growth Stock		9,065		16,361
Index 600 Stock		8,561		602
Small Cap Value		10,273		11,903
International Growth		6,819		6,698
Research International Core		5,275		1,020
International Equity		35,631		40,473
Emerging Markets Equity		12,926		2,425
Money Market		34,167		33,926
Short-Term Bond		4,396		812
Select Bond		14,333		22,590
Long-Term U.S. Government Bond		81		2,198
Inflation Protection		422		1,306
High Yield Bond		8,388		7,895
Multi-Sector Bond		5,953		1,561
Balanced		36,998		27,333
Asset Allocation		3,811		3,634
Fidelity VIP Mid Cap		26,690		10,557
Fidelity VIP Contrafund		5,888		1,384
Neuberger Berman AMT Socially Responsive		2,377		302

24

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2013

3. Purchases and Sales of Investments (continued)

Division	Purchases		Sales
Russell Multi-Style Equity	$	16,271	$	15,973
Russell Aggressive Equity		12,638		7,463
Russell Non-U.S.		6,466		10,020
Russell Core Bond		3,294		14,570
Russell Global Real Estate Securities		23,809		12,218
Russell LifePoints Moderate Strategy		109		158
Russell LifePoints Balanced Strategy		5,491		1,510
Russell LifePoints Growth Strategy		5,418		1,896
Russell LifePoints Equity Growth Strategy		1,796		19
Credit Suisse Trust Commodity Return Strategy		15,378		78

4. Expenses and Related Party Transactions

A deduction for mortality and expense risks is paid to Northwestern Mutual. Mortality risk is the risk that insureds may not live as long as estimated. Expense risk is the risk that expenses of issuing and administering the Policies may exceed the estimated costs.

For Variable Life and Variable CompLife policies, the deduction is determined daily at an annual rate of 0.50% and 0.45%, respectively, of the net assets of the Account. These charges are reflected as a reduction in invested assets and are included in Mortality and expense risk charges in the accompanying financial statements.

A deduction for the mortality and expense risks for Variable Executive Life policies was determined monthly at an annual rate of 0.60% of the amount invested in the Account for the Policy for the first ten Policy years, and 0.17% thereafter for policies with the Cash Value Amendment, or 0.15% thereafter for the policies without the Cash Value Amendment for the Policy prior to the 2013 Policy Anniversary. On or after the Policy Anniversary in 2013, the deduction is determined monthly at an annual rate of 0.48% of the amount invested in the Account for the Policy for the first ten Policy years, and 0.05% thereafter for policies with the Cash Value Amendment, or 0.03% thereafter for the policies without the Cash Value Amendment. A deduction for the mortality and expense risks for Variable Joint Life policies was determined monthly at an annual rate of 0.10% of the amount invested in the Account for the Policy prior to the 2013 Policy Anniversary. On or after the 2013 Policy Anniversary, the deduction is determined monthly at an annual rate of 0.00% of the amount invested in the Account. Additional Variable Joint Life mortality and expense risks deductions are determined annually and are paid to Northwestern Mutual for the first ten Policy years based on the age of the insured individuals at the time the policy was issued.

Additional mortality costs are deducted from the Policies annually for Variable Life and Variable CompLife policies, and monthly for Variable Executive Life and Variable Joint Life policies, and are paid to Northwestern Mutual to cover the cost of providing insurance protection. For Variable Life and Variable CompLife policies, this cost is actuarially calculated based upon the insured’s age, the 1980 Commissioners Standard Ordinary Mortality Table and the amount of insurance provided under the policy. For Variable Executive Life and Variable Joint Life policies, the cost reflects expected mortality costs based upon actual experience.

Certain deductions are also made from the annual, single or other premiums before amounts are allocated to the Account. These deductions are for sales load, administrative expenses, taxes and a risk charge for the guaranteed minimum death benefit among other charges which are detailed in the Prospectus.

25

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2013

4. Expenses and Related Party Transactions (continued)

Mortality and expense risks deductions for Variable Executive Life and Variable Joint Life policies, as well as the noted additional mortality costs and other deductions for each of the products are reflected as a reduction in units and are included in Mortality and other in the accompanying financial statements.

The net operating expenses of the Credit Suisse Trust Commodity Return Strategy Portfolio are limited to 1.05% of average net assets through November 15, 2015 by Credit Suisse Trust and Credit Suisse Asset Management, LLC. Pursuant to the substitution order of the Securities and Exchange Commission, effective November 15, 2013 through November 15, 2015, Northwestern Mutual will periodically reimburse policy owners to the extent the net operating expenses of the Credit Suisse Trust Commodity Return Strategy Portfolio exceed that of the fee waiver agreement of 0.95% of the Northwestern Mutual Commodities Return Strategy Portfolio which was in place at the time of the substitution.

26

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2013

5. Financial Highlights

(For a unit outstanding during the period)

	As of the respective period end date:									For the respective period ended:
Division	Units Outstanding (000’s)		Unit Value, Lowest to Highest					Net Assets (000’s)		Dividend Income as a % of Average Net Assets			Expense Ratio, Lowest to Highest(1)			Total Return, Lowest to Highest(1)
Growth Stock
Year Ended 12/31/13		88,857	$	3.638539	to	$	49.977915	$	368,165		0.68	%		0.00% to 0.55	%		35.12	%	to	35.86	%
Year Ended 12/31/12		92,840		2.690097	to		36.785012		284,588		0.57			0.00    to 0.55			12.32		to	12.94
Year Ended 12/31/11		97,893		2.392591	to		32.569595		269,305		0.78			0.00    to 0.55			(1.84	)	to	(1.30	)
Year Ended 12/31/10		101,987		2.434967	to		32.998214		288,701		0.82			0.00    to 0.55			11.76		to	12.37
Year Ended 12/31/09		106,648		2.176678	to		29.365924		275,067		1.16			0.00    to 0.55			36.42		to	37.17
Focused Appreciation
Year Ended 12/31/13		35,292	$	2.883615	to	$	30.372615	$	116,386		0.48	%		0.00% to 0.55	%		28.30	%	to	29.01	%
Year Ended 12/31/12		36,929		2.245328	to		23.543734		96,087		0.27			0.00    to 0.55			19.48		to	20.14
Year Ended 12/31/11		39,237		1.877354	to		19.596705		85,938		0.18			0.00    to 0.55			(6.61	)	to	(6.10	)
Year Ended 12/31/10		41,221		2.008299	to		20.869750		97,863		0.00			0.00    to 0.55			8.73		to	9.33
Year Ended 12/31/09		40,615		1.845162	to		19.088595		87,828		0.00			0.00    to 0.55			41.70		to	42.47
Large Cap Core Stock
Year Ended 12/31/13		71,653	$	2.759081	to	$	37.544148	$	233,882		1.15	%		0.00% to 0.55	%		27.88	%	to	28.58	%
Year Ended 12/31/12		75,256		2.155410	to		29.198468		191,903		1.20			0.00    to 0.55			11.02		to	11.63
Year Ended 12/31/11		78,553		1.939589	to		26.156583		182,605		1.14			0.00    to 0.55			(1.75	)	to	(1.21	)
Year Ended 12/31/10		80,904		1.972165	to		26.477036		192,996		1.20			0.00    to 0.55			12.29		to	12.91
Year Ended 12/31/09		83,903		1.754516	to		23.449551		177,955		1.84			0.00    to 0.55			28.63		to	29.33
Large Cap Blend
Year Ended 12/31/13		3,877	$	1.407785	to	$	11.980322	$	6,157		0.99	%		0.00% to 0.55	%		30.14	%	to	30.86	%
Year Ended 12/31/12		3,025		1.080633	to		9.155103		3,615		0.92			0.00    to 0.55			14.57		to	15.20
Period Ended 12/31/11 (3)		3,204		0.942304	to		7.947227		3,113		2.05			0.00    to 0.55			(5.82	)	to	(5.56	)
Index 500 Stock
Year Ended 12/31/13		203,612	$	4.001083	to	$	91.297175	$	1,008,802		1.82	%		0.00% to 0.55	%		31.33	%	to	32.05	%
Year Ended 12/31/12		207,627		3.043500	to		69.136117		785,534		1.77			0.00    to 0.55			15.12		to	15.76
Year Ended 12/31/11		214,351		2.641136	to		59.726031		713,800		1.66			0.00    to 0.55			1.39		to	1.95
Year Ended 12/31/10		220,539		2.602259	to		58.583796		730,891		2.02			0.00    to 0.55			14.27		to	14.89
Year Ended 12/31/09		227,457		2.275083	to		50.989051		655,118		2.82			0.00    to 0.55			25.71		to	26.40
Large Company Value
Year Ended 12/31/13		4,244	$	1.464939	to	$	12.266796	$	7,585		1.75	%		0.00% to 0.55	%		30.57	%	to	31.29	%
Year Ended 12/31/12		2,300		1.120811	to		9.343226		3,112		1.90			0.00    to 0.55			15.83		to	16.47
Period Ended 12/31/11 (3)		2,622		0.966635	to		8.021755		2,593		4.57			0.00    to 0.55			(3.38	)	to	(3.12	)
Domestic Equity
Year Ended 12/31/13		77,733	$	1.893569	to	$	20.154766	$	172,457		1.68	%		0.00% to 0.55	%		33.29	%	to	34.03	%
Year Ended 12/31/12		80,040		1.419182	to		15.037814		134,628		2.16			0.00    to 0.55			13.72		to	14.35
Year Ended 12/31/11		88,764		1.246743	to		13.151218		131,130		2.09			0.00    to 0.55			0.36		to	0.91
Year Ended 12/31/10		90,355		1.241092	to		13.033112		134,632		2.28			0.00    to 0.55			13.99		to	14.62
Year Ended 12/31/09		90,798		1.087659	to		11.370681		119,939		3.49			0.00    to 0.55			28.81		to	29.52
Equity Income
Year Ended 12/31/13		41,567	$	2.411872	to	$	25.403806	$	118,079		1.36	%		0.00% to 0.55	%		29.23	%	to	29.94	%
Year Ended 12/31/12		41,046		1.864547	to		19.550985		90,300		1.53			0.00    to 0.55			16.59		to	17.23
Year Ended 12/31/11		40,660		1.597678	to		16.677245		76,853		1.50			0.00    to 0.55			(1.46	)	to	(0.92	)
Year Ended 12/31/10		38,980		1.619759	to		16.832155		73,840		1.70			0.00    to 0.55			14.70		to	15.33
Year Ended 12/31/09		37,014		1.410806	to		14.595160		61,572		2.93			0.00    to 0.55			23.90		to	24.58

(1) Total return includes deductions for management and other expenses; it excludes deductions for sales loads and other charges, which are a reduction in units. The expense ratios further reflect only those expenses which impact total return. For additional information regarding all expenses assessed, refer to the accompanying notes. Returns are not annualized for periods less than one year.

(3) Divisions commenced operations on June 30, 2011.

27

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2013

	As of the respective period end date:									For the respective period ended:
Division	Units Outstanding (000’s)		Unit Value, Lowest to Highest					Net Assets (000’s)		Dividend Income as a % of Average Net Assets			Expense Ratio, Lowest to Highest(1)			Total Return, Lowest to Highest(1)
Mid Cap Growth Stock
Year Ended 12/31/13		108,936	$	3.416219	to	$	94.654719	$	448,921		0.31	%		0.00% to 0.55	%		24.85	%	to	25.53	%
Year Ended 12/31/12		113,740		2.733618	to		75.402575		374,598		0.12			0.00    to 0.55			11.35		to	11.97
Year Ended 12/31/11		121,498		2.452507	to		67.344023		358,497		0.23			0.00    to 0.55			(6.69	)	to	(6.18	)
Year Ended 12/31/10		127,814		2.625759	to		71.778944		404,074		0.28			0.00    to 0.55			23.18		to	23.86
Year Ended 12/31/09		135,424		2.129518	to		57.953082		348,854		0.28			0.00    to 0.55			31.37		to	32.09		(2)
Index 400 Stock
Year Ended 12/31/13		71,379	$	3.504450	to	$	39.846886	$	279,413		1.06	%		0.00% to 0.55	%		32.44	%	to	33.16	%
Year Ended 12/31/12		72,346		2.643527	to		29.923387		213,744		0.91			0.00    to 0.55			17.00		to	17.64
Year Ended 12/31/11		77,580		2.257202	to		25.435391		195,635		0.86			0.00    to 0.55			(2.46	)	to	(1.92	)
Year Ended 12/31/10		80,664		2.311836	to		25.934506		208,521		1.09			0.00    to 0.55			25.60		to	26.29
Year Ended 12/31/09		84,846		1.838809	to		20.535699		177,545		1.82			0.00    to 0.55			36.25		to	37.00
Mid Cap Value
Year Ended 12/31/13		17,193	$	2.618947	to	$	27.585004	$	51,336		0.96	%		0.00% to 0.55	%		29.53	%	to	30.24	%
Year Ended 12/31/12		17,177		2.019864	to		21.179677		39,331		1.34			0.00    to 0.55			15.93		to	16.57
Year Ended 12/31/11		18,430		1.740555	to		18.168731		37,334		1.74			0.00    to 0.55			(1.15	)	to	(0.61	)
Year Ended 12/31/10		19,018		1.759035	to		18.279525		39,839		1.41			0.00    to 0.55			19.27		to	19.93
Year Ended 12/31/09		18,679		1.473346	to		15.242180		31,825		1.20			0.00    to 0.55			22.56		to	23.24
Small Cap Growth Stock
Year Ended 12/31/13		66,550	$	3.359376	to	$	43.773190	$	246,636		0.49	%		0.00% to 0.55	%		37.84	%	to	38.60	%
Year Ended 12/31/12		68,955		2.434726	to		31.582975		185,068		0.00			0.00    to 0.55			8.88		to	9.48
Year Ended 12/31/11		74,363		2.233915	to		28.847575		183,624		0.35			0.00    to 0.55			(3.31	)	to	(2.78	)
Year Ended 12/31/10		78,328		2.308077	to		29.671998		201,112		0.75			0.00    to 0.55			25.16		to	25.85
Year Ended 12/31/09		81,371		1.842237	to		23.577314		166,342		0.28			0.00    to 0.55			30.46		to	31.17
Index 600 Stock
Year Ended 12/31/13		9,373	$	1.513818	to	$	16.744685	$	16,819		4.29	%		0.00% to 0.55	%		39.90	%	to	40.67	%
Year Ended 12/31/12		4,910		1.081019	to		11.903891		6,206		3.11			0.00    to 0.55			15.16		to	15.80
Period Ended 12/31/11 (3)		1,384		0.937768	to		10.280016		1,719		2.07			0.00    to 0.55			(6.27	)	to	(6.01	)
Small Cap Value
Year Ended 12/31/13		49,966	$	3.198795	to	$	34.046809	$	184,787		1.14	%		0.00% to 0.55	%		31.04	%	to	31.76	%
Year Ended 12/31/12		50,988		2.438620	to		25.839588		143,973		0.37			0.00    to 0.55			15.69		to	16.33
Year Ended 12/31/11		55,277		2.105813	to		22.212770		134,980		0.60			0.00    to 0.55			(1.90	)	to	(1.36	)
Year Ended 12/31/10		57,649		2.144514	to		22.519799		144,009		1.09			0.00    to 0.55			21.28		to	21.95
Year Ended 12/31/09		58,899		1.766442	to		18.466637		122,050		0.85			0.00    to 0.55			27.48		to	28.18
International Growth
Year Ended 12/31/13		44,659	$	1.928280	to	$	20.524033	$	98,031		1.40	%		0.00% to 0.55	%		19.15	%	to	19.81	%
Year Ended 12/31/12		44,792		1.616718	to		17.130842		82,841		1.33			0.00    to 0.55			17.34		to	17.99
Year Ended 12/31/11		48,394		1.376437	to		14.519220		76,140		1.13			0.00    to 0.55			(13.64	)	to	(13.17	)
Year Ended 12/31/10		49,762		1.592294	to		16.720938		94,974		0.92			0.00    to 0.55			15.79		to	16.43
Year Ended 12/31/09		47,784		1.373759	to		14.361577		76,761		0.66			0.00    to 0.55			22.49		to	23.16
Research International Core
Year Ended 12/31/13		14,106	$	1.154295	to	$	10.947312	$	19,169		0.13	%		0.00% to 0.55	%		18.27	%	to	18.92	%
Year Ended 12/31/12		10,388		0.975017	to		9.205651		12,233		1.72			0.00    to 0.55			16.12		to	16.76
Period Ended 12/31/11 (3)		3,559		0.838851	to		7.884380		3,688		4.07			0.00    to 0.55			(16.16	)	to	(15.93	)
International Equity
Year Ended 12/31/13		143,163	$	3.556947	to	$	5.431053	$	593,256		2.19	%		0.00% to 0.55	%		20.71	%	to	21.38	%
Year Ended 12/31/12		147,013		2.943691	to		4.474566		504,481		2.59			0.00    to 0.55			20.85		to	21.52
Year Ended 12/31/11		154,709		2.433405	to		3.682261		438,760		2.10			0.00    to 0.55			(10.59	)	to	(10.10	)
Year Ended 12/31/10		159,931		2.718891	to		4.095847		508,723		3.01			0.00    to 0.55			7.08		to	7.67
Year Ended 12/31/09		164,503		2.536491	to		3.803991		489,245		4.66			0.00    to 0.55			32.38		to	33.11	(2)
Emerging Markets Equity
Year Ended 12/31/13		29,027	$	0.909813	to	$	10.783888	$	30,454		0.75	%		0.00% to 0.55	%		(5.67	%)	to	(5.15	%)
Year Ended 12/31/12		19,140		0.963548	to		11.369632		21,469		0.15			0.00    to 0.55			18.18		to	18.83
Period Ended 12/31/11 (3)		7,995		0.814525	to		9.567929		7,498		2.54			0.00    to 0.55			(18.59	)	to	(18.36	)

(1) Total return includes deductions for management and other expenses; it excludes deductions for sales loads and other charges, which are a reduction in units. The expense ratios further reflect only those expenses which impact total return. For additional information regarding all expenses assessed, refer to the accompanying notes. Returns are not annualized for periods less than one year.

(2) Total return reflects the effect of a one-time class action settlement received on June 18, 2009. Absent the payment, the returns would have ranged from 30.36% to 31.53% for the Mid Cap Growth Stock Division, from 30.74% to 31.94% for the International Equity Division and from (0.64)% to 0.26% for the Money Market Division.

(3) Divisions commenced operations on June 30, 2011.

28

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2013

	As of the respective period end date:									For the respective period ended:
Division	Units Outstanding (000’s)		Unit Value, Lowest to Highest					Net Assets (000’s)		Dividend Income as a % of Average Net Assets			Expense Ratio, Lowest to Highest(1)			Total Return, Lowest to Highest(1)
Money Market
Year Ended 12/31/13		82,246	$	1.544536	to	$	41.539003		$170,166		0.10	%		0.00% to 0.55	%		(0.45	%)	to	0.10	%
Year Ended 12/31/12		84,564		1.549943	to		41.497953		169,940		0.14			0.00    to 0.55			(0.41	)	to	0.15
Year Ended 12/31/11		85,415		1.554696	to		41.437528		166,908		0.14			0.00    to 0.55			(0.41	)	to	0.14
Year Ended 12/31/10		86,934		1.559508	to		41.380226		169,116		0.29			0.00    to 0.55			(0.25	)	to	0.29
Year Ended 12/31/09		96,331		1.561917	to		41.258586		188,748		0.75			0.00    to 0.55			0.21		to	0.76		(2)
Short-Term Bond
Year Ended 12/31/13		9,076	$	1.010673	to		$12.142453		$10,582		0.17	%		0.00% to 0.55	%		0.00%(	5)	to	0.55	%
Year Ended 12/31/12		5,895		1.009629	to		12.076410		6,960		1.43			0.00    to 0.55			1.51		to	2.07
Period Ended 12/31/11 (3)		3,159		0.993622	to		11.832025		3,681		4.36			0.00    to 0.55			(0.69	)	to	(0.42	)
Select Bond
Year Ended 12/31/13		73,536	$	2.541856	to	$	200.286369		$244,742		2.31	%		0.00% to 0.55	%		(2.69	%)	to	(2.16	%)
Year Ended 12/31/12		78,962		2.609587	to		204.702189		268,074		2.69			0.00    to 0.55			4.39		to	4.96
Year Ended 12/31/11		77,091		2.497424	to		195.021673		251,418		3.32			0.00    to 0.55			6.58		to	7.16
Year Ended 12/31/10		78,164		2.341027	to		181.992325		238,805		3.75			0.00    to 0.55			6.00		to	6.59
Year Ended 12/31/09		78,213		2.206231	to		170.745431		223,452		5.05			0.00    to 0.55			8.77		to	9.37
Long-Term U.S Government Bond
Year Ended 12/31/13		3,977	$	1.113443	to		$15.502339		$4,876		0.02	%		0.00% to 0.55	%		(13.75	%)	to	(13.27	%)
Year Ended 12/31/12		4,651		1.289646	to		17.875038		7,933		1.85			0.00    to 0.55			3.18		to	3.75
Period Ended 12/31/11 (3)		3,537		1.248644	to		17.228764		6,776		8.82			0.00    to 0.55			24.80		to	25.15
Inflation Protection
Year Ended 12/31/13		6,697	$	1.037245	to		$13.476716		$8,588		1.08	%		0.00% to 0.55	%		(8.83	%)	to	(8.33	%)
Year Ended 12/31/12		7,780		1.136621	to		14.701699		10,670		2.68			0.00    to 0.55			6.76		to	7.35
Period Ended 12/31/11 (3)		3,641		1.063572	to		13.694886		4,815		0.03			0.00    to 0.55			6.30		to	6.60
High Yield Bond
Year Ended 12/31/13		27,674	$	3.312039	to		$43.465300		$107,038		5.57	%		0.00% to 0.55	%		5.26	%	to	5 .84	%
Year Ended 12/31/12		28,781		3.143457	to		41.068270		106,270		6.24			0.00    to 0.55			13.26		to	13.89
Year Ended 12/31/11		29,124		2.772582	to		36.059875		94,728		6.97			0.00    to 0.55			4.02		to	4.59
Year Ended 12/31/10		29,475		2.662698	to		34.475967		92,381		7.13			0.00    to 0.55			13.93		to	14.56
Year Ended 12/31/09		30,444		2.334783	to		30.094875		84,272		8.96			0.00    to 0.55			44.60		to	45.39
Multi-Sector Bond
Year Ended 12/31/13		17,326	$	1.137785	to		$15.449941		$21,918		3.56	%		0.00% to 0.55	%		(2.12	%)	to	(1.58	%)
Year Ended 12/31/12		14,697		1.161278	to		15.698283		18,872		0.46			0.00    to 0.55			14.31		to	14.94
Period Ended 12/31/11 (3)		4,150		1.014872	to		13.657358		4,850		16.21			0.00    to 0.55			1.44		to	1.71
Balanced
Year Ended 12/31/13		55,407	$	3.168393	to	$	172.248875		$354,026		3.38	%		0.00% to 0.55	%		11.47	%	to	12.08	%
Year Ended 12/31/12		57,330		2.839508	to		153.677764		331,081		1.17			0.00    to 0.55			9.09		to	9.69
Year Ended 12/31/11		61,456		2.600265	to		140.096515		318,825		2.75			0.00    to 0.55			1.55		to	2.11
Year Ended 12/31/10		63,195		2.557927	to		137.200077		323,249		2.12			0.00    to 0.55			11.34		to	11.96
Year Ended 12/31/09		65,258		2.295052	to		122.549243		299,014		4.56			0.00    to 0.55			20.77		to	21.43
Asset Allocation
Year Ended 12/31/13		19,334	$	1.830603	to		$19.484028		$44,834		3.32	%		0.00% to 0.55	%		16.03	%	to	16.67	%
Year Ended 12/31/12		20,120		1.576122	to		16.700324		39,573		0.23			0.00    to 0.55			10.41		to	11.02
Year Ended 12/31/11		22,441		1.426114	to		15.042893		39,577		2.41			0.00    to 0.55			(0.62	)	to	(0.08	)
Year Ended 12/31/10		22,865		1.433617	to		15.054442		40,860		2.92			0.00    to 0.55			12.39		to	13.01
Year Ended 12/31/09		23,519		1.274289	to		13.321541		37,345		3.04			0.00    to 0.55			26.40		to	27.09
Fidelity VIP Mid Cap
Year Ended 12/31/13		37,534	$	3.835558	to		$40.398542		$169,449		0.28	%		0.00% to 0.55	%		35.13	%	to	35.87	%
Year Ended 12/31/12		38,312		2.835677	to		29.733518		128,384		0.39			0.00    to 0.55			13.93		to	14.56
Year Ended 12/31/11		40,656		2.486413	to		25.953961		120,934		0.02			0.00    to 0.55			(11.34	)	to	(10.85	)
Year Ended 12/31/10		41,434		2.801620	to		29.113348		140,666		0.13			0.00    to 0.55			27.87		to	28.57
Year Ended 12/31/09		40,262		2.188843	to		22.643898		105,355		0.47			0.00    to 0.55			38.99		to	39.75

(1) Total return includes deductions for management and other expenses; it excludes deductions for sales loads and other charges, which are a reduction in units. The expense ratios further reflect only those expenses which impact total return. For additional information regarding all expenses assessed, refer to the accompanying notes. Returns are not annualized for periods less than one year.

(2) Total return reflects the effect of a one-time class action settlement received on June 18, 2009. Absent the payment, the returns would have ranged from 30.36% to 31.53% for the Mid Cap Growth Stock Division, from 30.74% to 31.94% for the International Equity Division and from (0.64)% to 0.26% for the Money Market Division.

(3) Divisions commenced operations on June 30, 2011

(5) Total return is less than 0.005%

29

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2013

	As of the respective period end date:								For the respective period ended:
Division	Units Outstanding (000’s)		Unit Value, Lowest to Highest				Net Assets (000’s)		Dividend Income as a % of Average Net Assets			Expense Ratio, Lowest to Highest(1)			Total Return, Lowest to Highest(1)
Fidelity VIP Contrafund
Year Ended 12/31/13		19,719		$1.392090	to	$15.005573		$31,545		0.90	%		0.00% to 0.55	%		30.24	%	to	30.95	%
Year Ended 12/31/12		16,353		1.067828	to	11.458810		20,234		1.49			0.00    to 0.55			15.50		to	16.14
Period Ended 12/31/11 (3)		5,922		0.923581	to	9.866342		6,530		2.81			0.00    to 0.55			(7.69	)	to	(7.43	)
Neuberger Berman AMT Socially Responsive
Year Ended 12/31/13		2,403		$1.377320	to	$14.744385		$4,648		0.79	%		0.00% to 0.55	%		36.85	%	to	37.60	%
Year Ended 12/31/12		1,241		1.005443	to	10.715212		1,683		0.25			0.00    to 0.55			10.37		to	10.98
Period Ended 12/31/11 (3)		606		0.910063	to	9.655117		688		0.90			0.00    to 0.55			(9.04	)	to	(8.79	)
Russell Multi-Style Equity
Year Ended 12/31/13		119,343		$1.457823	to	$16.178812		$201,588		1.21	%		0.00% to 0.55	%		32.19	%	to	32.92	%
Year Ended 12/31/12		126,018		1.101694	to	12.171877		162,081		1.12			0.00    to 0.55			15.05		to	15.69
Year Ended 12/31/11		139,483		0.956587	to	10.521100		157,923		0.97			0.00    to 0.55			(2.08	)	to	(1.55	)
Year Ended 12/31/10		145,784		0.975990	to	10.686543		173,508		0.91			0.00    to 0.55			15.82		to	16.46
Year Ended 12/31/09		155,703		0.841815	to	9.176223		161,462		1.34			0.00    to 0.55			30.68		to	31.40
Russell Aggressive Equity
Year Ended 12/31/13		40,543		$2.347887	to	$26.724835		$109,257		0.43	%		0.00% to 0.55	%		39.24	%	to	40.00	%
Year Ended 12/31/12		41,973		1.684569	to	19.088862		80,738		1.07			0.00    to 0.55			15.20		to	15.84
Year Ended 12/31/11		46,544		1.460862	to	16.479338		77,885		0.49			0.00    to 0.55			(4.72	)	to	(4.20	)
Year Ended 12/31/10		48,091		1.531783	to	17.202203		85,253		0.47			0.00    to 0.55			24.20		to	24.88
Year Ended 12/31/09		49,083		1.232123	to	13.775086		71,135		0.53			0.00    to 0.55			30.68		to	31.39
Russell Non-U.S.
Year Ended 12/31/13		65,876		$1.717753	to	$18.624500		$134,161		2.00	%		0.00% to 0.55	%		21.24	%	to	21.91	%
Year Ended 12/31/12		68,417		1.415380	to	15.277391		115,667		1.77			0.00    to 0.55			19.16		to	19.81
Year Ended 12/31/11		74,999		1.186647	to	12.750860		107,050		1.66			0.00    to 0.55			(13.36	)	to	(12.88	)
Year Ended 12/31/10		77,992		1.368210	to	14.635995		131,861		0.93			0.00    to 0.55			10.81		to	11.42
Year Ended 12/31/09		80,748		1.233456	to	13.135524		124,379		2.86			0.00    to 0.55			25.80		to	26.49
Russell Core Bond
Year Ended 12/31/13		31,407		$2.076847	to	$22.077570		$86,009		1.44	%		0.00% to 0.55	%		(1.99	%)	to	(1.45	%)
Year Ended 12/31/12		34,681		2.116915	to	22.402721		99,933		2.33			0.00    to 0.55			7.78		to	8.38
Year Ended 12/31/11		34,913		1.962151	to	20.671320		96,920		3.19			0.00    to 0.55			4.11		to	4.68
Year Ended 12/31/10		34,612		1.882787	to	19.746605		98,149		3.79			0.00    to 0.55			9.42		to	10.02
Year Ended 12/31/09		33,064		1.719005	to	17.948158		86,412		4.70			0.00    to 0.55			15.18		to	15.81
Russell Global Real Estate Securities
Year Ended 12/31/13		37,321		$3.666253	to	$38.920595		$157,271		4.00	%		0.00% to 0.55	%		3.08	%	to	3.65	%
Year Ended 12/31/12		37,370		3.553123	to	37.550773		152,571		5.00			0.00    to 0.55			26.86		to	27.56
Year Ended 12/31/11		38,799		2.798128	to	29.438654		124,861		2.25			0.00    to 0.55			(7.56	)	to	(7.05	)
Year Ended 12/31/10		39,697		3.023867	to	31.671345		139,710		2.23			0.00    to 0.55			22.25		to	22.92
Year Ended 12/31/09		39,114		2.471078	to	25.765834		113,878		4.65			0.00    to 0.55			28.24		to	28.94
Russell LifePoints Moderate Strategy
Year Ended 12/31/13		1,516		$1.129701	to	$13.568584		$2,151		1.69	%		0.00% to 0.55	%		6.20	%	to	6.79	%
Year Ended 12/31/12		1,505		1.062654	to	12.706153		2,139		3.29			0.00    to 0.55			10.46		to	11.07
Period Ended 12/31/11 (3)		320		0.961095	to	11.440046		332		3.14			0.00    to 0.55			(3.94	)	to	(3.67	)
Russell LifePoints Balanced Strategy
Year Ended 12/31/13		9,944		$1.173673	to	$13.255096		$14,726		2.18	%		0.00% to 0.55	%		11.81	%	to	12.43	%
Year Ended 12/31/12		7,167		1.048620	to	11.789785		9,673		2.60			0.00    to 0.55			12.34		to	12.96
Period Ended 12/31/11 (3)		3,296		0.932549	to	10.437591		4,082		3.47			0.00    to 0.55			(6.79	)	to	(6.53	)
Russell LifePoints Growth Strategy
Year Ended 12/31/13		11,741		$1.195791	to	$12.591524		$16,736		2.32	%		0.00% to 0.55	%		15.92	%	to	16.56	%
Year Ended 12/31/12		9,304		1.030529	to	10.802768		11,345		2.26			0.00    to 0.55			13.59		to	14.22
Period Ended 12/31/11 (3)		1,932		0.906329	to	9.458077		3,034		3.58			0.00    to 0.55			(9.41	)	to	(9.16	)
Russell LifePoints Equity Growth Strategy
Year Ended 12/31/13		5,628		$1.221337	to	$11.740704		$8,224		2.59	%		0.00% to 0.55	%		19.16	%	to	19.81	%
Year Ended 12/31/12		4,213		1.023971	to	9.799317		5,371		1.87			0.00    to 0.55			15.04		to	15.68
Period Ended 12/31/11 (3)		1,131		0.889198	to	8.471141		1,453		3.08			0.00    to 0.55			(11.12	)	to	(10.88	)
Credit Suisse Trust Commodity Return Strategy
Period Ended 12/31/13 (4)		1,963		$7.085099	to	$7.724122		$15,565		0.00	%		0.00% to 0.55	%		1.72	%	to	1.79	%

(1) Total return includes deductions for management and other expenses; it excludes deductions for sales loads and other charges, which are a reduction in units. The expense ratios further reflect only those expenses which impact total return. For additional information regarding all expenses assessed, refer to the accompanying notes. Returns are not annualized for periods less than one year.

(3) Divisions commenced operations on June 30, 2011.

(4) Division commenced operations on November 15, 2013.

30

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2013

6. Subsequent Event

Management has evaluated the events and/or the transactions that have occurred through the date of the financial statements were issued and noted no items requiring adjustments of the financial statements or additional disclosures.

31

Report of Independent Registered Public Accounting Firm

To The Northwestern Mutual Life Insurance Company Board of Trustees and

Policyowners of the Northwestern Mutual Variable Life Account

In our opinion, the accompanying statements of assets and liabilities and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of the Northwestern Mutual Variable Life Account and its Growth Stock Division, Focused Appreciation Division, Large Cap Core Stock Division, Large Cap Blend Division, Index 500 Stock Division, Large Company Value Division, Domestic Equity Division, Equity Income Division, Mid Cap Growth Stock Division, Index 400 Stock Division, Mid Cap Value Division, Small Cap Growth Stock Division, Index 600 Stock Division, Small Cap Value Division, International Growth Division, Research International Core Division, International Equity Division, Emerging Markets Equity Division, Money Market Division, Short-Term Bond Division, Select Bond Division, Long-Term U.S. Government Bond Division, Inflation Protection Division, High Yield Bond Division, Multi-Sector Bond Division, Balanced Division, Asset Allocation Division, Fidelity VIP Mid Cap Division, Fidelity VIP Contrafund Division, Neuberger Berman AMT Socially Responsive Division, Russell Multi-Style Equity Division, Russell Aggressive Equity Division, Russell Non-U.S. Division, Russell Core Bond Division, Russell Global Real Estate Securities Division, Russell LifePoints Moderate Strategy Division, Russell LifePoints Balanced Strategy Division, Russell LifePoints Growth Strategy Division, Russell LifePoints Equity Growth Strategy Division, Credit Suisse Trust Commodity Return Strategy Division, at December 31, 2013, and the results of their operations and the changes in their net assets for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of The Northwestern Mutual Life Insurance Company’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of investments owned at December 31, 2013 by correspondence with Northwestern Mutual Series Fund, Inc., Fidelity Variable Insurance Products, Neuberger Berman Advisers Management Trust, the Russell Investment Funds and Credit Suisse Trust, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Milwaukee, Wisconsin

April 28, 2014

32

Annual Report December 31, 2013

Northwestern Mutual Variable Life Account II

Financial Statements

Northwestern Mutual Variable Life Account Financial Statements

Table of Contects

Northwestern Mutual Variable Life Account
Statements of Assets and Liabilities	1
Statements of Operations	9
Statements of Changes in Net Assets	13
Notes to Financial Statements	23
Report of Independent Registerd Public Accounting Firm	31

Northwestern Mutual Variable Life Account II

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Growth Stock Division		Focused Appreciation Division		Large Cap Core Stock Division		Large Cap Blend Division		Index 500 Stock Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$4,359		$5,864		$2,688		$1,058		$18,231
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		47		-		-		5
Total Assets		4,359		5,911		2,688		1,058		18,236
Liabilities:
Due to Northwestern Mutual Life Insurance Company		100		-		61		-		-
Total Liabilities		100		-		61		-		-
Total Net Assets		$4,259		$5,911		$2,627		$1,058		$18,236
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity		$2,162		$4,853		$1,892		$1,024		$12,700
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		2,021		859		715		-		5,319
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		76		199		20		34		217
Total Net Assets		$4,259		$5,911		$2,627		$1,058		$18,236
(1) Investments, at cost		$3,433		$4,321		$2,088		$897		$14,822
Mutual Fund Shares Held		1,482		2,183		1,580		1,020		5,053
(2) Accumulation Unit Value		$49.977915		$30.372615		$37.544148		$11.980322		$91.297175
Units Outstanding		43		160		50		85		139
(3) Accumulation Unit Value		$49.977915		$30.372615		$37.544148		$11.980322		$91.297175
Units Outstanding		40		28		19		-		58
(4) Accumulation Unit Value		$49.977915		$30.372615		$37.544148		$11.980322		$91.297175
Units Outstanding		1		7		-		3		2

The Accompanying Notes are an Integral Part of the Financial Statements. 1

Northwestern Mutual Variable Life Account II

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Large Company Value Division		Domestic Equity Division		Equity Income Division		Mid Cap Growth Stock Division		Index 400 Stock Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$192		$3,970		$4,942		$2,591		$5,951
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		-		46		-		-
Total Assets		192		3,970		4,988		2,591		5,951
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		47		-
Total Liabilities		-		-		-		47		-
Total Net Assets		$192		$3,970		$4,988		$2,544		$5,951
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity		$191		$3,218		$3,236		$1,535		$4,894
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		1		691		1,564		1,006		917
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		-		61		188		3		140
Total Net Assets		$192		$3,970		$4,988		$2,544		$5,951
(1)   Investments, at cost		$170		$2,905		$3,802		$2,156		$4,832
Mutual Fund Shares Held		180		3,082		2,870		660		3,130
(2)   Accumulation Unit Value		$12.266796		$20.154766		$25.403806		$94.654719		$39.846886
Units Outstanding		16		160		127		16		123
(3)   Accumulation Unit Value		$12.266796		$20.154766		$25.403806		$94.654719		$39.846886
Units Outstanding		-		34		62		11		23
(4)   Accumulation Unit Value		$12.266796		$20.154766		$25.403806		$94.654719		$39.846886
Units Outstanding		-		3		7		-		4

2 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Mid Cap Value Division		Small Cap Growth Stock Division		Index 600 Stock Division		Small Cap Value Division		International Growth Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$3,095		$3,181		$1,381		$5,152		$4,093
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		22		-		-		18		30
Total Assets		3,117		3,181		1,381		5,170		4,123
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		30		-		-		-
Total Liabilities		-		30		-		-		-
Total Net Assets		$3,117		$3,151		$1,381		$5,170		$4,123
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity		$1,440		$2,340		$1,365		$2,950		$3,867
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		1,623		696		15		2,145		73
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		54		115		1		75		183
Total Net Assets		$3,117		$3,151		$1,381		$5,170		$4,123
(1)   Investments, at cost		$2,399		$2,326		$1,180		$3,887		$3,380
Mutual Fund Shares Held		1,851		1,225		1,037		2,101		2,869
(2)   Accumulation Unit Value		$27.585004		$43.773190		$16.744685		$34.046809		$20.524033
Units Outstanding		52		53		81		87		188
(3)   Accumulation Unit Value		$27.585004		$43.773190		$16.744685		$34.046809		$20.524033
Units Outstanding		59		16		1		63		4
(4)   Accumulation Unit Value		$27.585004		$43.773190		$16.744685		$34.046809		$20.524033
Units Outstanding		2		3		-		2		9

The Accompanying Notes are an Integral Part of the Financial Statements. 3

Northwestern Mutual Variable Life Account II

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Research International Core Division		International Equity Division		Emerging Markets Equity Division		Money Market Division		Short-Term Bond Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$1,656		$13,266		$2,666		$6,682		$158
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		38		-		33		8		-
Total Assets		1,694		13,266		2,699		6,690		158
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		64		-		-		-
Total Liabilities		-		64		-		-		-
Total Net Assets		$1,694		$13,202		$2,699		$6,690		$158
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity		$1,460		$9,151		$2,598		$4,296		$157
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		157		3,808		17		2,351		1
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		77		243		84		43		-
Total Net Assets		$1,694		$13,202		$2,699		$6,690		$158
(1)   Investments, at cost		$1,425		$10,770		$2,688		$6,682		$158
Mutual Fund Shares Held		1,678		6,228		2,682		6,682		153
(2)   Accumulation Unit Value		$10.947312		$5.431053		$10.783888		$41.539003		$12.142453
Units Outstanding		133		1,685		241		103		13
(3)   Accumulation Unit Value		$10.947312		$5.431053		$10.783888		$41.539003		$12.142453
Units Outstanding		14		701		2		57		-
(4)   Accumulation Unit Value		$10.947312		$5.431053		$10.783888		$41.539003		$12.142453
Units Outstanding		7		44		8		1		-

4 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Select Bond Division		Long-Term U.S. Government Bond Division		Inflation Protection Division		High Yield Bond Division		Multi-Sector Bond Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$8,349		$139		$618		$5,208		$2,060
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		-		10		-		19
Total Assets		8,349		139		628		5,208		2,079
Liabilities:
Due to Northwestern Mutual Life Insurance Company		52		-		-		2		-
Total Liabilities		52		-		-		2		-
Total Net Assets		$8,297		$139		$628		$5,206		$2,079
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity		$5,847		$126		$602		$4,082		$2,030
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		2,299		13		11		1,066		5
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		151		-		15		58		44
Total Net Assets		$8,297		$139		$628		$5,206		$2,079
(1)   Investments, at cost		$8,768		$148		$658		$5,122		$2,140
Mutual Fund Shares Held		6,815		150		571		6,944		1,910
(2)   Accumulation Unit Value		$200.286369		$15.502339		$13.476716		$43.465300		$15.449941
Units Outstanding		29		8		45		94		131
(3)   Accumulation Unit Value		$200.286369		$15.502339		$13.476716		$43.465300		$15.449941
Units Outstanding		11		1		1		25		-
(4)   Accumulation Unit Value		$200.286369		$15.502339		$13.476716		$43.465300		$15.449941
Units Outstanding		1		-		1		1		3

The Accompanying Notes are an Integral Part of the Financial Statements. 5

Northwestern Mutual Variable Life Account II

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Balanced Division		Asset Allocation Division		Fidelity VIP Mid Cap Division		Fidelity VIP Contrafund Division		Neuberger Berman AMT Socially Responsive Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$2,744		$377		$-		$-		$-
Fidelity Variable Insurance Products		-		-		7,510		1,368		-
Neuberger Berman Advisers Management Trust		-		-		-		-		829
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		-		22		28		28
Total Assets		2,744		377		7,532		1,396		857
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		-
Total Liabilities		-		-		-		-		-
Total Net Assets		$2,744		$377		$7,532		$1,396		$857
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity		$879		$224		$5,234		$1,314		$791
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		1,455		101		2,067		7		7
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		410		52		231		75		59
Total Net Assets		$2,744		$377		$7,532		$1,396		$857
(1)   Investments, at cost		$2,612		$326		$6,812		$1,116		$707
Mutual Fund Shares Held		1,754		295		211		40		38
(2)   Accumulation Unit Value		$172.248875		$19.484028		$40.398542		$15.005573		$14.744385
Units Outstanding		5		12		130		88		54
(3)   Accumulation Unit Value		$172.248875		$19.484028		$40.398542		$15.005573		$14.744385
Units Outstanding		8		5		51		-		-
(4)   Accumulation Unit Value		$172.248875		$19.484028		$40.398542		$15.005573		$14.744385
Units Outstanding		2		3		6		5		4

6 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Russell Multi-Style Equity Division		Russell Aggressive Equity Division		Russell Non-U.S. Division		Russell Core Bond Division		Russell Global Real Estate Securities Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$-		$-		$-		$-		$-
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		2,546		1,850		3,136		2,458		4,776
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		-		-		19		-
Total Assets		2,546		1,850		3,136		2,477		4,776
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		1
Total Liabilities		-		-		-		-		1
Total Net Assets		$2,546		$1,850		$3,136		$2,477		$4,775
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity		$2,272		$1,434		$2,648		$1,740		$4,252
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		252		414		460		614		373
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		22		2		28		123		150
Total Net Assets		$2,546		$1,850		$3,136		$2,477		$4,775
(1)   Investments, at cost		$1,925		$1,383		$2,497		$2,514		$4,609
Mutual Fund Shares Held		135		110		255		235		325
(2)   Accumulation Unit Value		$16.178812		$26.724835		$18.624500		$22.077570		$38.920595
Units Outstanding		140		54		142		79		109
(3)   Accumulation Unit Value		$16.178812		$26.724835		$18.624500		$22.077570		$38.920595
Units Outstanding		16		15		25		28		10
(4)   Accumulation Unit Value		$16.178812		$26.724835		$18.624500		$22.077570		$38.920595
Units Outstanding		1		-		2		6		4

The Accompanying Notes are an Integral Part of the Financial Statements. 7

Northwestern Mutual Variable Life Account II

Statements of Assets and Liabilities

December 31, 2013

(in thousands, except accumulation unit values)

	Russell LifePoints Moderate Strategy Division		Russell LifePoints Balanced Strategy Division		Russell LifePoints Growth Strategy Division		Russell LifePoints Equity Growth Strategy Division		Credit Suisse Trust Commodity Return Strategy Division
Assets:
Investments, at value (1)
Northwestern Mutual Series Fund, Inc.		$-		$-		$-		$-		$-
Fidelity Variable Insurance Products		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		109		431		287		115		-
Credit Suisse Trust		-		-		-		-		1,291
Due from Northwestern Mutual Life Insurance Company		-		-		23		-		24
Total Assets		109		431		310		115		1,315
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		-
Total Liabilities		-		-		-		-		-
Total Net Assets		$109		$431		$310		$115		$1,315
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity		$107		$426		$309		$112		$1,266
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		-		1		-		-		6
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		2		4		1		3		43
Total Net Assets		$109		$431		$310		$115		$1,315
(1)   Investments, at cost		$110		$408		$266		$110		$1,270
Mutual Fund Shares Held		10		41		28		12		205
(2)   Accumulation Unit Value		$13.568584		$13.255096		$12.591524		$11.740704		$7.085099
Units Outstanding		8		32		25		10		180
(3)   Accumulation Unit Value		$13.568584		$13.255096		$12.591524		$11.740704		$7.085099
Units Outstanding		-		-		-		-		1
(4)   Accumulation Unit Value		$13.568584		$13.255096		$12.591524		$11.740704		$7.085099
Units Outstanding		-		-		-		-		6

8 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Statements of Operations

For the Year Ended December 31, 2013

(in thousands)

	Growth Stock Division		Focused Appreciation Division		Large Cap Core Stock Division		Large Cap Blend Division		Index 500 Stock Division
Income:
Dividend income		$27		$23		$26		$9		$264
Net investment income (loss)		27		23		26		9		264
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		311		142		85		13		790
Realized gain distributions		277		-		-		37		294
Realized gains (losses)		588		142		85		50		1,084
Change in unrealized appreciation/depreciation of investments during the period		590		1,088		454		147		2,541
Net increase (decrease) in net assets resulting from operations		$1,205		$1,253		$565		$206		$3,889
	Large Company Value Division		Domestic Equity Division		Equity Income Division		Mid Cap Growth Stock Division		Index 400 Stock Division
Income:
Dividend income		$3		$57		$58		$8		$51
Net investment income (loss)		3		57		58		8		51
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		4		197		151		120		121
Realized gain distributions		3		-		-		99		164
Realized gains (losses)		7		197		151		219		285
Change in unrealized appreciation/depreciation of investments during the period		20		735		855		290		962
Net increase (decrease) in net assets resulting from operations		$30		$989		$1,064		$517		$1,298

The Accompanying Notes are an Integral Part of the Financial Statements. 9

Northwestern Mutual Variable Life Account II

Statements of Operations

For the Year Ended December 31, 2013

(in thousands)

	Mid Cap Value Division		Small Cap Growth Stock Division		Index 600 Stock Division			Small Cap Value Division		International Growth Division
Income:
Dividend income		$27		$14		$40			$50		$50
Net investment income (loss)		27		14		40			50		50
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		136		218		30			235		98
Realized gain distributions		16		-		42			20		-
Realized gains (losses)		152		218		72			255		98
Change in unrealized appreciation/depreciation of investments during the period		511		661		190			873		495
Net increase (decrease) in net assets resulting from operations		$690		$893		$302			$1,178		$643
	Research International Core Division		International Equity Division		Emerging Markets Equity Division			Money Market Division		Short-Term Bond Division
Income:
Dividend income		$2		$244		$14			$5		$ -
Net investment income (loss)		2		244		14			5		-
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		16		526		24			-		(2	)
Realized gain distributions		-		3		4			-		-
Realized gains (losses)		16		529		28			-		(2	)
Change in unrealized appreciation/depreciation of investments during the period		182		1,431		(116	)		-		4
Net increase (decrease) in net assets resulting from operations		$200		$2,204		$(74	)		$5		$2

10 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Statements of Operations

For the Year Ended December 31, 2013

(in thousands)

	Select Bond Division			Long-Term U.S. Government Bond Division			Inflation Protection Division			High Yield Bond Division			Multi-Sector Bond Division
Income:
Dividend income		$182			$ -			$8			$246			$71
Net investment income (loss)		182			-			8			246			71
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		(64	)		(53	)		(55	)		13			21
Realized gain distributions		124			-			15			-			15
Realized gains (losses)		60			(53	)		(40	)		13			36
Change in unrealized appreciation/depreciation of investments during the period		(401	)		19			(54	)		(16	)		(164	)
Net increase (decrease) in net assets resulting from operations		$(159	)		$(34	)		$(86	)		$243			$(57	)
	Balanced Division			Asset Allocation Division			Fidelity VIP Mid Cap Division			Fidelity VIP Contrafund Division			Neuberger Berman AMT Socially Responsive Division
Income:
Dividend income		$84			$10			$18			$11			$5
Net investment income (loss)		84			10			18			11			5
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		50			10			318			37			14
Realized gain distributions		100			-			850			-			-
Realized gains (losses)		150			10			1,168			37			14
Change in unrealized appreciation/depreciation of investments during the period		27			30			733			230			116
Net increase (decrease) in net assets resulting from operations		$261			$50			$1,919			$278			$135

The Accompanying Notes are an Integral Part of the Financial Statements. 11

Northwestern Mutual Variable Life Account II

Statements of Operations

For the Year Ended December 31, 2013

(in thousands)

	Russell Multi-Style Equity Division			Russell Aggressive Equity Division		Russell Non-U.S. Division		Russell Core Bond Division			Russell Global Real Estate Securities Division
Income:
Dividend income		$26			$7		$53		$32			$171
Net investment income (loss)		26			7		53		32			171
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		70			48		43		5			178
Realized gain distributions		131			128		-		7			187
Realized gains (losses)		201			176		43		12			365
Change in unrealized appreciation/depreciation of investments during the period		386			323		458		(77	)		(406	)
Net increase (decrease) in net assets resulting from operations		$613			$506		$554		$(33	)		$130
	Russell LifePoints Moderate Strategy Division			Russell LifePoints Balanced Strategy Division		Russell LifePoints Growth Strategy Division		Russell LifePoints Equity Growth Strategy Division			Credit Suisse Trust Commodity Return Strategy Division (4)
Income:
Dividend income		$1			$7		$5		$3			$ -
Net investment income (loss)		1			7		5		3			-
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		3			12		7		17			1
Realized gain distributions		2			3		-		-			-
Realized gains (losses)		5			15		7		17			1
Change in unrealized appreciation/depreciation of investments during the period		(2	)		16		17		2			21
Net increase (decrease) in net assets resulting from operations		$4			$38		$29		$22			$22

(4) Division commenced operations on November 15, 2013.

12 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Statements of Changes in Net Assets

(in thousands)

	Growth Stock Division						Focused Appreciation Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$27			$19			$23			$10
Net realized gains (losses)		588			139			142			265
Net change in unrealized appreciation/depreciation		590			188			1,088			350
Net increase (decrease) in net assets resulting from operations		1,205			346			1,253			625
Policy Transactions:
Policyowners’ net payments		493			504			945			867
Policy loans, surrenders and death benefits		(585	)		(131	)		(279	)		(187	)
Mortality and other (net)		(184	)		(193	)		(263	)		(228	)
Transfers from other divisions		20,533			13,095			7,875			6,229
Transfers to other divisions		(20,544	)		(12,233	)		(7,494	)		(7,214	)
Net increase (decrease) in net assets resulting from policy transactions		(287	)		1,042			784			(533	)
Net increase (decrease) in net assets		918			1,388			2,037			92
Net Assets:
Beginning of period		3,341			1,953			3,874			3,782
End of period		$4,259			$3,341			$5,911			$3,874
Units issued during the period		515			384			352			344
Units redeemed during the period		(521	)		(354	)		(322	)		(372	)
Net units issued (redeemed) during period		(6	)		30			30			(28	)
	Large Cap Core Stock Division						Large Cap Blend Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$26			$26			$9			$5
Net realized gains (losses)		85			63			50			20
Net change in unrealized appreciation/depreciation		454			65			147			17
Net increase (decrease) in net assets resulting from operations		565			154			206			42
Policy Transactions:
Policyowners’ net payments		540			555			203			104
Policy loans, surrenders and death benefits		(106	)		(119	)		(8	)		(4	)
Mortality and other (net)		(145	)		(148	)		(39	)		(24	)
Transfers from other divisions		3,933			3,818			1,325			757
Transfers to other divisions		(4,057	)		(3,819	)		(1,156	)		(459	)
Net increase (decrease) in net assets resulting from policy transactions		165			287			325			374
Net increase (decrease) in net assets		730			441			531			416
Net Assets:
Beginning of period		1,897			1,456			527			111
End of period		$2,627			$1,897			$1,058			$527
Units issued during the period		136			156			145			101
Units redeemed during the period		(132	)		(146	)		(115	)		(57	)
Net units issued (redeemed) during period		4			10			30			44

The Accompanying Notes are an Integral Part of the Financial Statements. 13

Northwestern Mutual Variable Life Account II

Statements of Changes in Net Assets

(in thousands)

	Index 500 Stock Division						Large Company Value Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$264			$160			$3			$1
Net realized gains (losses)		1,084			416			7			3
Net change in unrealized appreciation/depreciation		2,541			632			20			1
Net increase (decrease) in net assets resulting from operations		3,889			1,208			30			5
Policy Transactions:
Policyowners’ net payments		2,654			2,079			79			21
Policy loans, surrenders and death benefits		(808	)		(174	)		(1	)		(1	)
Mortality and other (net)		(543	)		(475	)		(12	)		(4	)
Transfers from other divisions		49,707			28,135			171			74
Transfers to other divisions		(47,477	)		(26,995	)		(127	)		(53	)
Net increase (decrease) in net assets resulting from policy transactions		3,533			2,570			110			37
Net increase (decrease) in net assets		7,422			3,778			140			42
Net Assets:
Beginning of period		10,814			7,036			52			10
End of period		$18,236			$10,814			$192			$52
Units issued during the period		729			474			24			14
Units redeemed during the period		(686	)		(436	)		(14	)		(9	)
Net units issued (redeemed) during period		43			38			10			5
	Domestic Equity Division						Equity Income Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$57			$58			$58			$44
Net realized gains (losses)		197			245			151			177
Net change in unrealized appreciation/depreciation		735			62			855			215
Net increase (decrease) in net assets resulting from operations		989			365			1,064			436
Policy Transactions:
Policyowners’ net payments		665			730			664			484
Policy loans, surrenders and death benefits		(255	)		(87	)		(158	)		(153	)
Mortality and other (net)		(203	)		(189	)		(193	)		(156	)
Transfers from other divisions		5,251			4,624			19,302			10,875
Transfers to other divisions		(5,320	)		(5,148	)		(18,831	)		(10,886	)
Net increase (decrease) in net assets resulting from policy transactions		138			(70	)		784			164
Net increase (decrease) in net assets		1,127			295			1,848			600
Net Assets:
Beginning of period		2,843			2,548			3,140			2,540
End of period		$3,970			$2,843			$4,988			$3,140
Units issued during the period		363			401			899			632
Units redeemed during the period		(356	)		(405	)		(863	)		(624	)
Net units issued (redeemed) during period		7			(4	)		36			8

14 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Statements of Changes in Net Assets

(in thousands)

	Mid Cap Growth Stock Division						Index 400 Stock Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$8			$2			$51			$32
Net realized gains (losses)		219			92			285			219
Net change in unrealized appreciation/depreciation		290			80			962			230
Net increase (decrease) in net assets resulting from operations		517			174			1,298			481
Policy Transactions:
Policyowners’ net payments		371			410			1,049			758
Policy loans, surrenders and death benefits		(90	)		(89	)		(204	)		(50	)
Mortality and other (net)		(131	)		(112	)		(235	)		(205	)
Transfers from other divisions		6,056			2,996			13,053			8,287
Transfers to other divisions		(5,833	)		(3,812	)		(12,527	)		(9,207	)
Net increase (decrease) in net assets resulting from policy transactions		373			(607	)		1,136			(417	)
Net increase (decrease) in net assets		890			(433	)		2,434			64
Net Assets:
Beginning of period		1,654			2,087			3,517			3,453
End of period		$2,544			$1,654			$5,951			$3,517
Units issued during the period		76			48			420			342
Units redeemed during the period		(71	)		(57	)		(388	)		(359	)
Net units issued (redeemed) during period		5			(9	)		32			(17	)
	Mid Cap Value Division						Small Cap Growth Stock Division
	Year Ended December 31,2013			Year Ended December 31,2012			Year Ended December 31,2013			Year Ended December 31,2012
Operations:
Net investment income (loss)		$27			$26			$14			$-
Net realized gains (losses)		152			11			218			153
Net change in unrealized appreciation/depreciation		511			214			661			38
Net increase (decrease) in net assets resulting from operations		690			251			893			191
Policy Transactions:
Policyowners’ net payments		387			326			473			597
Policy loans, surrenders and death benefits		(376	)		(40	)		(370	)		(85	)
Mortality and other (net)		(112	)		(94	)		(144	)		(152	)
Transfers from other divisions		10,966			6,592			6,743			4,626
Transfers to other divisions		(10,546	)		(5,829	)		(6,808	)		(4,867	)
Net increase (decrease) in net assets resulting from policy transactions		319			955			(106	)		119
Net increase (decrease) in net assets		1,009			1,206			787			310
Net Assets:
Beginning of period		2,108			902			2,364			2,054
End of period		$3,117			$2,108			$3,151			$2,364
Units issued during the period		481			355			216			172
Units redeemed during the period		(468	)		(305	)		(219	)		(169	)
Net units issued (redeemed) during period		13			50			(3	)		3

The Accompanying Notes are an Integral Part of the Financial Statements. 15

Northwestern Mutual Variable Life Account II

Statements of Changes in Net Assets

(in thousands)

	Index 600 Stock Division						Small Cap Value Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$40			$10			$50			$12
Net realized gains (losses)		72			10			255			266
Net change in unrealized appreciation/depreciation		190			12			873			193
Net increase (decrease) in net assets resulting from operations		302			32			1,178			471
Policy Transactions:
Policyowners’ net payments		324			94			671			664
Policy loans, surrenders and death benefits		(4	)		(1	)		(468	)		(154	)
Mortality and other (net)		(45	)		(14	)		(195	)		(184	)
Transfers from other divisions		1,809			566			17,407			11,471
Transfers to other divisions		(1,417	)		(286	)		(16,976	)		(11,494	)
Net increase (decrease) in net assets resulting from policy transactions		667			359			439			303
Net increase (decrease) in net assets		969			391			1,617			774
Net Assets:
Beginning of period		412			21			3,553			2,779
End of period		$1,381			$412			$5,170			$3,553
Units issued during the period		165			69			635			516
Units redeemed during the period		(118	)		(36	)		(620	)		(504	)
Net units issued (redeemed) during period		47			33			15			12
	International Growth Division						Research International Core Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$50			$33			$2			$8
Net realized gains (losses)		98			94			16			1
Net change in unrealized appreciation/depreciation		495			281			182			54
Net increase (decrease) in net assets resulting from operations		643			408			200			63
Policy Transactions:
Policyowners’ net payments		829			774			354			140
Policy loans, surrenders and death benefits		(444	)		(76	)		(32	)		(15	)
Mortality and other (net)		(205	)		(172	)		(73	)		(33	)
Transfers from other divisions		7,922			5,240			3,327			1,118
Transfers to other divisions		(7,526	)		(5,276	)		(2,728	)		(762	)
Net increase (decrease) in net assets resulting from policy transactions		576			490			848			448
Net increase (decrease) in net assets		1,219			898			1,048			511
Net Assets:
Beginning of period		2,904			2,006			646			135
End of period		$4,123			$2,904			$1,694			$646
Units issued during the period		523			406			375			154
Units redeemed during the period		(492	)		(375	)		(291	)		(101	)
Net units issued (redeemed) during period		31			31			84			53

16 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Statements of Changes in Net Assets

(in thousands)

	International Equity Division						Emerging Markets Equity Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$244			$226			$14			$1
Net realized gains (losses)		529			93			28			(11	)
Net change in unrealized appreciation/depreciation		1,431			1,320			(116	)		122
Net increase (decrease) in net assets resulting from operations		2,204			1,639			(74	)		112
Policy Transactions:
Policyowners’ net payments		2,198			1,971			705			302
Policy loans, surrenders and death benefits		(1,608	)		(389	)		(38	)		(20	)
Mortality and other (net)		(581	)		(541	)		(117	)		(64	)
Transfers from other divisions		39,903			25,147			4,555			1,962
Transfers to other divisions		(38,678	)		(24,890	)		(3,589	)		(1,390	)
Net increase (decrease) in net assets resulting from policy transactions		1,234			1,298			1,516			790
Net increase (decrease) in net assets		3,438			2,937			1,442			902
Net Assets:
Beginning of period		9,764			6,827			1,257			355
End of period		$13,202			$9,764			$2,699			$1,257
Units issued during the period		9,376			6,925			508			226
Units redeemed during the period		(9,128	)		(6,597	)		(367	)		(153	)
Net units issued (redeemed) during period		248			328			141			73
	Money Market Division						Short-Term Bond Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$5			$6			$ -			$7
Net realized gains (losses)		-			-			(2	)		-
Net change in unrealized appreciation/depreciation		-			-			4			-
Net increase (decrease) in net assets resulting from operations		5			6			2			7
Policy Transactions:
Policyowners’ net payments		13,804			8,307			95			66
Policy loans, surrenders and death benefits		(233	)		(367	)		(1	)		(291	)
Mortality and other (net)		(352	)		(354	)		(10	)		(10	)
Transfers from other divisions		21,532			13,956			301			859
Transfers to other divisions		(33,006	)		(20,323	)		(773	)		(263	)
Net increase (decrease) in net assets resulting from policy transactions		1,745			1,219			(388	)		361
Net increase (decrease) in net assets		1,750			1,225			(386	)		368
Net Assets:
Beginning of period		4,940			3,715			544			176
End of period		$6,690			$4,940			$158			$544
Units issued during the period		1,039			575			34			102
Units redeemed during the period		(997	)		(545	)		(66	)		(72	)
Net units issued (redeemed) during period		42			30			(32	)		30

The Accompanying Notes are an Integral Part of the Financial Statements. 17

Northwestern Mutual Variable Life Account II

Statements of Changes in Net Assets

(in thousands)

	Select Bond Division						Long-Term U.S. Government Bond Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$182			$164			$ -			$6
Net realized gains (losses)		60			201			(53	)		48
Net change in unrealized appreciation/depreciation		(401	)		(69	)		19			(28	)
Net increase (decrease) in net assets resulting from operations		(159	)		296			(34	)		26
Policy Transactions:
Policyowners’ net payments		1,557			1,589			50			101
Policy loans, surrenders and death benefits		(429	)		(613	)		(1	)		(152	)
Mortality and other (net)		(399	)		(405	)		(12	)		(22	)
Transfers from other divisions		31,299			19,549			250			591
Transfers to other divisions		(30,613	)		(18,502	)		(444	)		(221	)
Net increase (decrease) in net assets resulting from policy transactions		1,415			1,618			(157	)		297
Net increase (decrease) in net assets		1,256			1,914			(191	)		323
Net Assets:
Beginning of period		7,041			5,127			330			7
End of period		$8,297			$7,041			$139			$330
Units issued during the period		167			109			18			54
Units redeemed during the period		(160	)		(101	)		(28	)		(35	)
Net units issued (redeemed) during period		7			8			(10	)		19
	Inflation Protection Division						High Yield Bond Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$8			$15			$246			$182
Net realized gains (losses)		(40	)		28			13			10
Net change in unrealized appreciation/depreciation		(54	)		7			(16	)		170
Net increase (decrease) in net assets resulting from operations		(86	)		50			243			362
Policy Transactions:
Policyowners’ net payments		549			164			1,060			731
Policy loans, surrenders and death benefits		(49	)		(309	)		(37	)		(38	)
Mortality and other (net)		(36	)		(28	)		(194	)		(161	)
Transfers from other divisions		4,055			2,393			15,806			9,237
Transfers to other divisions		(4,620	)		(1,787	)		(14,860	)		(9,169	)
Net increase (decrease) in net assets resulting from policy transactions		(101	)		433			1,775			600
Net increase (decrease) in net assets		(187	)		483			2,018			962
Net Assets:
Beginning of period		815			332			3,188			2,226
End of period		$628			$815			$5,206			$3,188
Units issued during the period		332			204			414			265
Units redeemed during the period		(340	)		(173	)		(371	)		(250	)
Net units issued (redeemed) during period		(8	)		31			43			15

18 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Statements of Changes in Net Assets

(in thousands)

	Multi-Sector Bond Division						Balanced Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$71			$5			$84			$22
Net realized gains (losses)		36			29			150			24
Net change in unrealized appreciation/depreciation		(164	)		97			27			92
Net increase (decrease) in net assets resulting from operations		(57	)		131			261			138
Policy Transactions:
Policyowners’ net payments		457			349			307			304
Policy loans, surrenders and death benefits		(37	)		(174	)		(82	)		(12	)
Mortality and other (net)		(102	)		(57	)		(104	)		(100	)
Transfers from other divisions		4,212			2,159			13,697			5,744
Transfers to other divisions		(4,082	)		(958	)		(13,401	)		(5,421	)
Net increase (decrease) in net assets resulting from policy transactions		448			1,319			417			515
Net increase (decrease) in net assets		391			1,450			678			653
Net Assets:
Beginning of period		1,688			238			2,066			1,413
End of period		$2,079			$1,688			$2,744			$2,066
Units issued during the period		325			218			87			42
Units redeemed during the period		(298	)		(128	)		(85	)		(38	)
Net units issued (redeemed) during period		27			90			2			4
	Asset Allocation Division						Fidelity VIP Mid Cap Division
	Year Ended December 31,2013			Year Ended December 31,2012			Year Ended December 31, 2013			Year Ended December 31,2012
Operations:
Net investment income (loss)		$10			$1			$18			$20
Net realized gains (losses)		10			30			1,168			583
Net change in unrealized appreciation/depreciation		30			6			733			4
Net increase (decrease) in net assets resulting from operations		50			37			1,919			607
Policy Transactions:
Policyowners’ net payments		39			63			1,030			1,051
Policy loans, surrenders and death benefits		(39	)		(26	)		(1,025	)		(179	)
Mortality and other (net)		(20	)		(25	)		(266	)		(274	)
Transfers from other divisions		300			427			29,718			19,821
Transfers to other divisions		(276	)		(497	)		(29,131	)		(18,709	)
Net increase (decrease) in net assets resulting from policy transactions		4			(58	)		326			1,710
Net increase (decrease) in net assets		54			(21	)		2,245			2,317
Net Assets:
Beginning of period		323			344			5,287			2,970
End of period		$377			$323			$7,532			$5,287
Units issued during the period		20			32			975			746
Units redeemed during the period		(19	)		(36	)		(966	)		(683	)
Net units issued (redeemed) during period		1			(4	)		9			63

The Accompanying Notes are an Integral Part of the Financial Statements. 19

Northwestern Mutual Variable Life Account II

Statements of Changes in Net Assets

(in thousands)

	Fidelity VIP Contrafund Division						Neuberger Berman AMT Socially Responsive Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$11			$7			$5			$-
Net realized gains (losses)		37			8			14			7
Net change in unrealized appreciation/depreciation		230			20			116			4
Net increase (decrease) in net assets resulting from operations		278			35			135			11
Policy Transactions:
Policyowners’ net payments		305			141			168			57
Policy loans, surrenders and death benefits		(35	)		(25	)		(21	)		(12	)
Mortality and other (net)		(74	)		(28	)		(36	)		(15	)
Transfers from other divisions		2,397			923			1,288			420
Transfers to other divisions		(2,072	)		(525	)		(880	)		(314	)
Net increase (decrease) in net assets resulting from policy transactions		521			486			519			136
Net increase (decrease) in net assets		799			521			654			147
Net Assets:
Beginning of period		597			76			203			56
End of period		$1,396			$597			$857			$203
Units issued during the period		265			103			120			49
Units redeemed during the period		(224	)		(59	)		(80	)		(37	)
Net units issued (redeemed) during period		41			44			40			12
	Russell Multi-Style Equity Division						Russell Aggressive Equity Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$26			$20			$7			$12
Net realized gains (losses)		201			139			176			72
Net change in unrealized appreciation/depreciation		386			109			323			78
Net increase (decrease) in net assets resulting from operations		613			268			506			162
Policy Transactions:
Policyowners’ net payments		383			412			300			288
Policy loans, surrenders and death benefits		(103	)		(194	)		(49	)		(39	)
Mortality and other (net)		(113	)		(120	)		(86	)		(79	)
Transfers from other divisions		3,773			3,445			2,672			1,899
Transfers to other divisions		(3,780	)		(3,654	)		(2,662	)		(2,109	)
Net increase (decrease) in net assets resulting from policy transactions		160			(111	)		175			(40	)
Net increase (decrease) in net assets		773			157			681			122
Net Assets:
Beginning of period		1,773			1,616			1,169			1,047
End of period		$2,546			$1,773			$1,850			$1,169
Units issued during the period		311			371			131			134
Units redeemed during the period		(299	)		(379	)		(123	)		(136	)
Net units issued (redeemed) during period		12			(8	)		8			(2	)

20 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Statements of Changes in Net Assets

(in thousands)

	Russell Non-U.S. Division						Russell Core Bond Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$53			$38			$32			$49
Net realized gains (losses)		43			60			12			64
Net change in unrealized appreciation/depreciation		458			290			(77	)		53
Net increase (decrease) in net assets resulting from operations		554			388			(33	)		166
Policy Transactions:
Policyowners’ net payments		507			491			567			674
Policy loans, surrenders and death benefits		(112	)		(100	)		(94	)		(71	)
Mortality and other (net)		(134	)		(135	)		(138	)		(150	)
Transfers from other divisions		5,380			4,280			6,167			5,201
Transfers to other divisions		(5,429	)		(4,471	)		(6,408	)		(5,349	)
Net increase (decrease) in net assets resulting from policy transactions		212			65			94			305
Net increase (decrease) in net assets		766			453			61			471
Net Assets:
Beginning of period		2,370			1,917			2,416			1,945
End of period		$3,136			$2,370			$2,477			$2,416
Units issued during the period		359			367			310			281
Units redeemed during the period		(346	)		(361	)		(305	)		(267	)
Net units issued (redeemed) during period		13			6			5			14
	Russell Global Real Estate Securities Division						Russell LifePoints Moderate Strategy Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$171			$164			$1			$1
Net realized gains (losses)		365			207			5			-
Net change in unrealized appreciation/depreciation		(406	)		363			(2	)		2
Net increase (decrease) in net assets resulting from operations		130			734			4			3
Policy Transactions:
Policyowners’ net payments		979			860			7			8
Policy loans, surrenders and death benefits		(370	)		(136	)		(40	)		-
Mortality and other (net)		(246	)		(232	)		(5	)		(2	)
Transfers from other divisions		9,104			5,742			159			30
Transfers to other divisions		(8,525	)		(5,715	)		(46	)		(29	)
Net increase (decrease) in net assets resulting from policy transactions		942			519			75			7
Net increase (decrease) in net assets		1,072			1,253			79			10
Net Assets:
Beginning of period		3,703			2,450			30			20
End of period		$4,775			$3,703			$109			$30
Units issued during the period		293			213			13			3
Units redeemed during the period		(269	)		(197	)		(7	)		(3	)
Net units issued (redeemed) during period		24			16			6			-

The Accompanying Notes are an Integral Part of the Financial Statements. 21

Northwestern Mutual Variable Life Account II

Statements of Changes in Net Assets

(in thousands)

	Russell LifePoints Balanced Strategy Division						Russell LifePoints Growth Strategy Division
	Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2013			Year Ended December 31, 2012
Operations:
Net investment income (loss)		$7			$5			$5			$1
Net realized gains (losses)		15			1			7			1
Net change in unrealized appreciation/depreciation		16			8			17			5
Net increase (decrease) in net assets resulting from operations		38			14			29			7
Policy Transactions:
Policyowners’ net payments		100			73			120			37
Policy loans, surrenders and death benefits		-			-			-			-
Mortality and other (net)		(22	)		(16	)		(19	)		(10	)
Transfers from other divisions		421			249			274			96
Transfers to other divisions		(338	)		(128	)		(183	)		(73	)
Net increase (decrease) in net assets resulting from policy transactions		161			178			192			50
Net increase (decrease) in net assets		199			192			221			57
Net Assets:
Beginning of period		232			40			89			32
End of period		$431			$232			$310			$89
Units issued during the period		44			29			40			13
Units redeemed during the period		(32	)		(13	)		(23	)		(8	)
Net units issued (redeemed) during period		12			16			17			5
	Russell LifePoints Equity Growth Strategy Division						Credit Suisse Trust Commodity Return Strategy Division
	Year Ended December 31,2013			Year Ended December 31, 2012			Period November 15 to December 31, 2013
Operations:
Net investment income (loss)		$3			$1			$-
Net realized gains (losses)		17			-			1
Net change in unrealized appreciation/depreciation		2			3			21
Net increase (decrease) in net assets resulting from operations		22			4			22
Policy Transactions:
Policyowners’ net payments		58			22			46
Policy loans, surrenders and death benefits		(40	)		-			(3	)
Mortality and other (net)		(14	)		(6	)		(9	)
Transfers from other divisions		270			30			1,417
Transfers to other divisions		(236	)		(3	)		(158	)
Net increase (decrease) in net assets resulting from policy transactions		38			43			1,293
Net increase (decrease) in net assets		60			47			1,315
Net Assets:
Beginning of period		55			8			-
End of period		$115			$55			$1,315
Units issued during the period		32			6			217
Units redeemed during the period		(28	)		(1	)		(30	)
Net units issued (redeemed) during period		4			5			187

22 The Accompanying Notes are an Integral Part of the Financial Statements.

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2013

1. Organization

Northwestern Mutual Variable Life Account II (“the Account”) is registered as a unit investment trust under the Investment Company Act of 1940 and is a segregated asset account of The Northwestern Mutual Life Insurance Company (“Northwestern Mutual”) used to fund variable life insurance policies (“the Policies”).

All assets of each Division of the Account are invested in shares of the corresponding Portfolio of Northwestern Mutual Series Fund, Inc., Fidelity Variable Insurance Products, Neuberger Berman Advisers Management Trust, the Russell Investment Funds and Credit Suisse Trust (collectively known as “the Funds”). The Funds are open-end investment companies registered under the Investment Company Act of 1940. The financial statements for the Portfolio’s should be read in conjunction with the financial statements and footnotes of the Divisions. Each Division of the account indirectly bears exposure to the market, credit and liquidity risks of the Portfolio in which it invests.

On September 18, 2013, the Securities Exchange Commission approved an application from Northwestern Mutual on behalf of the Account permitting Northwestern Mutual to automatically transfer all remaining policy values in the Northwestern Mutual Commodities Return Strategy Division to the Credit Suisse Trust Commodity Return Strategy Division. The transfer was executed on November 15, 2013 and is included in the Statement of Changes in Net Assets as part of the transfers from other divisions or sponsor line item. Additionally, Northwestern Mutual will periodically reimburse policy owners for the additional operating expenses of the Credit Suisse Trust Commodity Return Strategy Division. Refer to note 4 - Expenses and Related Party Transactions footnote.

2. Significant Accounting Policies

A. Use of Estimates – The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets for use in estimates. Actual results could differ from those estimates.

B. Investment Valuation – The shares are valued at the Funds’ offering and redemption prices per share. As of December 31, 2013, all of the Account’s investments are identified as Level 1 securities for valuation purposes under the Fair Value Measurement Topic of the FASB Accounting Standards Codification. Level 1 securities are valued at fair value as determined by quoted prices in active markets for identical securities. All changes in fair value are recorded as change in unrealized appreciation/ depreciation of investments during the period in the statements of operations of the applicable Division.

C. Investment Income, Securities Transactions and Policy Dividends – Transactions in the Funds’ shares are accounted for on the trade date. The basis for determining cost on sale of the Funds’ shares is identified cost. Dividend income and distributions of net realized gains from the Funds are recorded on the ex–date of the dividends. Dividends and distributions received are reinvested in additional shares of the respective portfolios of the Funds. The Policies are eligible to receive policy dividends from Northwestern Mutual. Any dividends reinvested in the Account are reflected in Policyowners’ net payments in the accompanying financial statements.

D. Taxes – Northwestern Mutual is taxed as a “life insurance company” under the Internal Revenue Code. The Policies, which are funded in the Account, are taxed as part of the operations of Northwestern Mutual. Currently, there is no charge being made against the assets of the Account for federal income taxes, but Northwestern Mutual reserves the right to charge for taxes in the future.

23

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2013

3. Purchases and Sales of Investments

Purchases and sales of the Funds’ shares for the year ended December 31, 2013 were as follows: (in thousands)

Division	Purchases		Sales
Growth Stock		$        922		$    806
Focused Appreciation		1,359		598
Large Cap Core Stock		591		343
Large Cap Blend		419		49
Index 500 Stock		6,066		1,737
Large Company Value		130		14
Domestic Equity		972		771
Equity Income		1,194		398
Mid Cap Growth Stock		765		238
Index 400 Stock		1,840		484
Mid Cap Value		853		513
Small Cap Growth Stock		511		570
Index 600 Stock		811		61
Small Cap Value		1,268		780
International Growth		1,303		700
Research International Core		938		125
International Equity		4,128		2,584
Emerging Markets Equity		1,695		194
Money Market		16,162		14,652
Short-Term Bond		96		484
Select Bond		2,673		901
Long-Term U.S. Government Bond		56		213
Inflation Protection		581		669
High Yield Bond		2,338		317
Multi-Sector Bond		710		194
Balanced		803		202
Asset Allocation		78		63
Fidelity VIP Mid Cap		2,639		1,468
Fidelity VIP Contrafund		623		119
Neuberger Berman AMT Socially Responsive		568		72
Russell Multi-Style Equity		559		241
Russell Aggressive Equity		453		144
Russell Non-U.S.		570		305
Russell Core Bond		660		545
Russell Global Real Estate Securities		2,035		733
Russell LifePoints Moderate Strategy		123		45
Russell LifePoints Balanced Strategy		222		50
Russell LifePoints Growth Strategy		194		19
Russell LifePoints Equity Growth Strategy		105		64
Credit Suisse Trust Commodity Return Strategy		1,289		19

24

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2013

4. Expenses and Related Party Transactions

A deduction for mortality and expense risks is paid to Northwestern Mutual. Mortality risk is the risk that insureds may not live as long as estimated. Expense risk is the risk that expenses of issuing and administering the Policies may exceed the estimated costs.

A deduction for the mortality and expense risks for Custom Variable Universal Life policies was determined monthly at an annual rate of 0.35% of the amount invested in the Account for the Policy for the first ten Policy years, 0.20% for the next ten Policy years and 0.05% thereafter. On or after the Policy Anniversary in 2013, the deduction for the mortality and expense risks for Custom Variable Universal Life policies is determined monthly at an annual rate of 0.22% of the amount invested in the Account for the Policy for the first ten Policy years, 0.07% for the next ten Policy years and 0.00% thereafter. A deduction for the mortality and expense risks for Executive Variable Universal Life policies was determined monthly at an annual rate of 0.20% of the amounts invested in the Account for the Policy for the first ten Policy years, and 0.10% thereafter. Policies without the Surrender of Policy Endorsement, were charged monthly at an annual rate of 0.14% of the amount invested in the Account for the Policy. On or after the Policy Anniversary in 2013, the deduction for the mortality and expense risks for Executive Variable Universal Life policies is determined monthly at an annual rate of 0.10% of the amounts invested in the Account for the Policy for the first ten Policy years, and 0.00% thereafter. For Policies without the Surrender of Policy Endorsement, the current charge is assessed monthly at an annual rate of 0.00% of the amount invested in the Account for the Policy. A deduction for the mortality and expense risks for Survivorship Variable Universal Life Policies was determined monthly at an annual rate of 0.10% of the amount invested in the Account for the Policy for the first twenty Policy years, and 0.05% thereafter. On or after the Policy Anniversary in 2013, the deduction for the mortality and expense risks for Survivorship Variable Universal Life Policies is determined monthly at an annual rate of 0.00% of the amount invested in the Account for the Policy.

Additional mortality and expense risks deductions are determined annually and are paid to Northwestern Mutual for the first ten Policy years on all Survivorship Variable Universal Life policies based on the age of the insured individuals at the time the policy was issued.

Additional mortality costs are determined monthly and are paid for Northwestern Mutual to cover the cost of providing insurance protection. This cost reflects expected mortality costs based upon actual experience.

Certain deductions are also made from the annual, single or other premiums before amounts are allocated to the Account. These deductions are for sales load, administrative expenses, taxes and a risk charge for the guaranteed death benefit among other charges which are detailed in the Prospectus.

The charges noted are reflected as a reduction in units and are included in Mortality and other in the accompanying financial statements.

The net operating expenses of the Credit Suisse Trust Commodity Return Strategy Portfolio are limited to 1.05% of average net assets through November 15, 2015 by Credit Suisse Trust and Credit Suisse Asset Management, LLC. Pursuant to the substitution order of the Securities and Exchange Commission, effective November 15, 2013 through November 15, 2015, Northwestern Mutual will periodically reimburse policy owners to the extent the net operating expenses of the Credit Suisse Trust Commodity Return Strategy Portfolio exceed that of the fee waiver agreement of 0.95% of the Northwestern Mutual Commodities Return Strategy Portfolio which was in place at the time of the substitution.

25

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2013

5. Financial Highlights

(For a unit outstanding during the period)

	As of the respective period end date:						For the respective period ended:
Division	Units Outstanding (000’s)		Unit Value		Net Assets (000’s)		Dividend Income as a % of Average Net Assets			Expense Ratio, Lowest to Highest(1)			Total Return(1)
Growth Stock
Year Ended 12/31/13		84		$49.977915		$4,259		0.67	%		0.00	%		35.86	%
Year Ended 12/31/12		90		36.785012		3,341		0.59			0.00			12.94
Year Ended 12/31/11		60		32.569595		1,953		0.80			0.00			(1.30	)
Year Ended 12/31/10		49		32.998214		1,628		0.86			0.00			12.37
Year Ended 12/31/09		31		29.365924		938		1.18			0.00			37.17
Focused Appreciation
Year Ended 12/31/13		195		$30.372615		$5,911		0.49	%		0.00	%		29.01	%
Year Ended 12/31/12		165		23.543734		3,874		0.28			0.00			20.14
Year Ended 12/31/11		193		19.596705		3,782		0.18			0.00			(6.10	)
Year Ended 12/31/10		169		20.869750		3,516		0.00			0.00			9.33
Year Ended 12/31/09		181		19.088595		3,450		0.00			0.00			42.47
Large Cap Core Stock
Year Ended 12/31/13		69		$37.544148		$2,627		1.14	%		0.00	%		28.58	%
Year Ended 12/31/12		65		29.198468		1,897		1.29			0.00			11.63
Year Ended 12/31/11		55		26.156583		1,456		1.15			0.00			(1.21	)
Year Ended 12/31/10		50		26.477036		1,331		1.26			0.00			12.91
Year Ended 12/31/09		25		23.449551		588		1.89			0.00			29.33
Large Cap Blend
Year Ended 12/31/13		88		$11.980322		$1,058		1.08	%		0.00	%		30.86	%
Year Ended 12/31/12		58		9.155103		527		1.17			0.00			15.20
Period Ended 12/31/11 (3)		14		7.947227		111		2.27			0.00			(5.56	)
Index 500 Stock
Year Ended 12/31/13		199		$91.297175		$18,236		1.84	%		0.00	%		32.05	%
Year Ended 12/31/12		156		69.136117		10,814		1.77			0.00			15.76
Year Ended 12/31/11		118		59.726031		7,036		1.84			0.00			1.95
Year Ended 12/31/10		84		58.583796		4,937		2.07			0.00			14.89
Year Ended 12/31/09		55		50.989051		2,807		2.95			0.00			26.40
Large Company Value
Year Ended 12/31/13		16		$12.266796		$192		2.04	%		0.00	%		31.29	%
Year Ended 12/31/12		6		9.343226		52		2.32			0.00			16.47
Period Ended 12/31/11 (3)		1		8.021755		10		5.34			0.00			(3.12	)
Domestic Equity
Year Ended 12/31/13		197		$20.154766		$3,970		1.65	%		0.00	%		34.03	%
Year Ended 12/31/12		190		15.037814		2,843		2.15			0.00			14.35
Year Ended 12/31/11		194		13.151218		2,548		2.12			0.00			0.91
Year Ended 12/31/10		152		13.033112		1,979		2.36			0.00			14.62
Year Ended 12/31/09		120		11.370681		1,362		3.63			0.00			29.52
Equity Income
Year Ended 12/31/13		196		$25.403806		$4,988		1.37	%		0.00	%		29.94	%
Year Ended 12/31/12		160		19.550985		3,140		1.57			0.00			17.23
Year Ended 12/31/11		152		16.677245		2,540		1.64			0.00			(0.92	)
Year Ended 12/31/10		116		16.832155		1,943		1.69			0.00			15.33
Year Ended 12/31/09		83		14.595160		1,216		3.12			0.00			24.58
Mid Cap Growth Stock
Year Ended 12/31/13		27		$94.654719		$2,544		0.32	%		0.00	%		25.53	%
Year Ended 12/31/12		22		75.402575		1,654		0.12			0.00			11.97
Year Ended 12/31/11		31		67.344023		2,087		0.24			0.00			(6.18	)
Year Ended 12/31/10		28		71.778944		2,002		0.30			0.00			23.86
Year Ended 12/31/09		21		57.953082		1,171		0.28			0.00			32.09		(2	)

(1) Total return includes deductions for management and other expenses; it excludes deductions for sales loads and other charges, which are a reduction in units. The expense ratios further reflect only those expenses which impact total return. For additional information regarding all expenses assessed, refer to the accompanying notes. Returns are not annualized for periods less than one year.

(2) Total return reflects the effect of a one-time class action settlement received on June 18, 2009. Absent the payment, the returns would have ranged from 30.36% to 31.53% for the Mid Cap Growth Stock Division, from 30.74% to 31.94% for the International Equity Division and from (0.64)% to 0.26% for the Money Market Division.

(3) Divisions commenced operations on June 30, 2011.

26

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2013

	As of the respective period end date:						For the respective period ended:
Division	Units Outstanding (000’s)		Unit Value		Net Assets (000’s)		Dividend Income as a % of Average Net Assets			Expense Ratio, Lowest to Highest(1)			Total Return(1)
Index 400 Stock
Year Ended 12/31/13		150		$39.846886		$5,951		1.08	%		0.00	%		33.16	%
Year Ended 12/31/12		118		29.923387		3,517		0.92			0.00			17.64
Year Ended 12/31/11		135		25.435391		3,453		0.86			0.00			(1.92	)
Year Ended 12/31/10		96		25.934506		2,488		1.18			0.00			26.29
Year Ended 12/31/09		65		20.535699		1,320		1.86			0.00			37.00
Mid Cap Value
Year Ended 12/31/13		113		$27.585004		$3,117		0.97	%		0.00	%		30.24	%
Year Ended 12/31/12		100		21.179677		2,108		1.46			0.00			16.57
Year Ended 12/31/11		50		18.168731		902		2.35			0.00			(0.61	)
Year Ended 12/31/10		43		18.279525		778		1.29			0.00			19.93
Year Ended 12/31/09		28		15.242180		434		1.23			0.00			23.24
Small Cap Growth Stock
Year Ended 12/31/13		72		$43.773190		$3,151		0.49	%		0.00	%		38.60	%
Year Ended 12/31/12		75		31.582975		2,364		0.00			0.00			9.48
Year Ended 12/31/11		72		28.847575		2,054		0.36			0.00			(2.78	)
Year Ended 12/31/10		58		29.671998		1,708		0.84			0.00			25.85
Year Ended 12/31/09		34		23.577314		809		0.30			0.00			31.17
Index 600 Stock
Year Ended 12/31/13		82		$16.744685		$1,381		4.36	%		0.00	%		40.67	%
Year Ended 12/31/12		35		11.903891		412		4.14			0.00			15.80
Period Ended 12/31/11 (3)		2		10.280016		21		1.82			0.00			(6.01	)
Small Cap Value
Year Ended 12/31/13		152		$34.046809		$5,170		1.14	%		0.00	%		31.76	%
Year Ended 12/31/12		137		25.839588		3,553		0.38			0.00			16.33
Year Ended 12/31/11		125		22.212770		2,779		0.63			0.00			(1.36	)
Year Ended 12/31/10		104		22.519799		2,323		1.11			0.00			21.95
Year Ended 12/31/09		78		18.466637		1,431		0.88			0.00			28.18
International Growth
Year Ended 12/31/13		201		$20.524033		$4,123		1.41	%		0.00	%		19.81	%
Year Ended 12/31/12		170		17.130842		2,904		1.36			0.00			17.99
Year Ended 12/31/11		139		14.519220		2,006		1.18			0.00			(13.17	)
Year Ended 12/31/10		94		16.720938		1,575		0.97			0.00			16.43
Year Ended 12/31/09		61		14.361577		870		0.67			0.00			23.16
Research International Core
Year Ended 12/31/13		154		$10.947312		$1,694		0.14	%		0.00	%		18.92	%
Year Ended 12/31/12		70		9.205651		646		1.83			0.00			16.76
Period Ended 12/31/11 (3)		17		7.884380		135		3.54			0.00			(15.93	)
International Equity
Year Ended 12/31/13		2,430		$5.431053		$13,202		2.15	%		0.00	%		21.38	%
Year Ended 12/31/12		2,182		4.474566		9,764		2.70			0.00			21.52
Year Ended 12/31/11		1,854		3.682261		6,827		2.17			0.00			(10.10	)
Year Ended 12/31/10		1,449		4.095847		5,937		3.12			0.00			7.67
Year Ended 12/31/09		1,000		3.803991		3,801		4.86			0.00			33.11		(2	)
Emerging Markets Equity
Year Ended 12/31/13		251		$10.783888		$2,699		0.75	%		0.00	%		(5.15	%)
Year Ended 12/31/12		110		11.369632		1,257		0.15			0.00			18.83
Period Ended 12/31/11 (3)		37		9.567929		355		2.16			0.00			(18.36	)

(1) Total return includes deductions for management and other expenses; it excludes deductions for sales loads and other charges, which are a reduction in units. The expense ratios further reflect only those expenses which impact total return. For additional information regarding all expenses assessed, refer to the accompanying notes. Returns are not annualized for periods less than one year.

(2) Total return reflects the effect of a one-time class action settlement received on June 18, 2009. Absent the payment, the returns would have ranged from 30.36% to 31.53% for the Mid Cap Growth Stock Division, from 30.74% to 31.94% for the International Equity Division and from (0.64)% to 0.26% for the Money Market Division.

(3) Divisions commenced operations on June 30, 2011.

27

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2013

	As of the respective period end date:						For the respective period ended:
Division	Units Outstanding (000’s)		Unit Value		Net Assets (000’s)		Dividend Income as a % of Average Net Assets			Expense Ratio, Lowest to Highest(1)			Total Return, Lowest to Highest(1)
Money Market
Year Ended 12/31/13		161		$41.539003		$6,690		0.09	%		0.00	%		0.10	%
Year Ended 12/31/12		119		41.497953		4,940		0.14			0.00			0.15
Year Ended 12/31/11		89		41.437528		3,715		0.12			0.00			0.14
Year Ended 12/31/10		68		41.380226		2,794		0.29			0.00			0.29
Year Ended 12/31/09		66		41.258586		2,720		0.70			0.00			0.76		(2)
Short-Term Bond
Year Ended 12/31/13		13		$12.142453		$158		0.05	%		0.00	%		0.55	%
Year Ended 12/31/12		45		12.076410		544		1.79			0.00			2.07
Period Ended 12/31/11 (3)		15		11.832025		176		3.05			0.00			(0.42	)
Select Bond
Year Ended 12/31/13		41		$200.286369		$8,297		2.40	%		0.00	%		(2.16	%)
Year Ended 12/31/12		34		204.702189		7,041		2.64			0.00			4.96
Year Ended 12/31/11		26		195.021673		5,127		3.36			0.00			7.16
Year Ended 12/31/10		23		181.992325		4,277		3.93			0.00			6.59
Year Ended 12/31/09		15		170.745431		2,588		5.68			0.00			9.37
Long-Term U.S Government Bond
Year Ended 12/31/13		9		$15.502339		$139		0.03	%		0.00	%		(13.27	%)
Year Ended 12/31/12		19		17.875038		330		1.62			0.00			3.75
Period Ended 12/31/11 (3)		-		17.228764		7		5.68			0.00			25.15
Inflation Protection
Year Ended 12/31/13		47		$13.476716		$628		0.97	%		0.00	%		(8.33	%)
Year Ended 12/31/12		55		14.701699		815		2.04			0.00			7.35
Period Ended 12/31/11 (3)		24		13.694886		332		0.04			0.00			6.60
High Yield Bond
Year Ended 12/31/13		120		$43.465300		$5,206		5.72	%		0.00	%		5.84	%
Year Ended 12/31/12		77		41.068270		3,188		6.28			0.00			13.89
Year Ended 12/31/11		62		36.059875		2,226		6.99			0.00			4.59
Year Ended 12/31/10		46		34.475967		1,558		7.29			0.00			14.56
Year Ended 12/31/09		34		30.094875		1,016		8.52			0.00			45.39
Multi-Sector Bond
Year Ended 12/31/13		134		$15.449941		$2,079		3.35	%		0.00	%		(1.58	%)
Year Ended 12/31/12		107		15.698283		1,688		0.42			0.00			14.94
Period Ended 12/31/11 (3)		17		13.657358		238		11.64			0.00			1.71
Balanced
Year Ended 12/31/13		15		$172.248875		$2,744		3.49	%		0.00	%		12.08	%
Year Ended 12/31/12		13		153.677764		2,066		1.25			0.00			9.69
Year Ended 12/31/11		9		140.096515		1,413		2.94			0.00			2.11
Year Ended 12/31/10		7		137.200077		1,085		2.32			0.00			11.96
Year Ended 12/31/09		4		122.549243		542		5.28			0.00			21.43
Asset Allocation
Year Ended 12/31/13		20		$19.484028		$377		3.17	%		0.00	%		16.67	%
Year Ended 12/31/12		19		16.700324		323		0.22			0.00			11.02
Year Ended 12/31/11		23		15.042893		344		2.25			0.00			(0.08	)
Year Ended 12/31/10		26		15.054442		386		3.10			0.00			13.01
Year Ended 12/31/09		20		13.321541		254		3.15			0.00			27.09
Fidelity VIP Mid Cap
Year Ended 12/31/13		187		$40.398542		$7,532		0.28	%		0.00	%		35.87	%
Year Ended 12/31/12		178		29.733518		5,287		0.42			0.00			14.56
Year Ended 12/31/11		115		25.953961		2,970		0.02			0.00			(10.85	)
Year Ended 12/31/10		89		29.113348		2,616		0.14			0.00			28.57
Year Ended 12/31/09		61		22.643898		1,370		0.54			0.00			39.75

(1) Total return includes deductions for management and other expenses; it excludes deductions for sales loads and other charges, which are a reduction in units. The expense ratios further reflect only those expenses which impact total return. For additional information regarding all expenses assessed, refer to the accompanying notes. Returns are not annualized for periods less than one year.

(2) Total return reflects the effect of a one-time class action settlement received on June 18, 2009. Absent the payment, the returns would have ranged from 30.36% to 31.53% for the Mid Cap Growth Stock Division, from 30.74% to 31.94% for the International Equity Division and from (0.64)% to 0.26% for the Money Market Division.

(3) Divisions commenced operations on June 30, 2011.

28

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2013

	As of the respective period end date:								For the respective period ended:
Division	Units Outstanding (000’s)		Unit Value			Net Assets (000’s)			Dividend Income as a % of Average Net Assets			Expense Ratio, Lowest to Highest(1)			Total Return, Lowest to Highest(1)
Fidelity VIP Contrafund
Year Ended 12/31/13		93		$	15.005573		$	1,396		1.00	%		0.00	%		30.95	%
Year Ended 12/31/12		52			11.458810			597		1.61			0.00			16.14
Period Ended 12/31/11 (3)		8			9.866342			76		2.07			0.00			(7.43	)
Neuberger Berman AMT Socially Responsive
Year Ended 12/31/13		58		$	14.744385		$	857		0.98	%		0.00	%		37.60	%
Year Ended 12/31/12		18			10.715212			203		0.31			0.00			10.98
Period Ended 12/31/11 (3)		6			9.655117			56		1.00			0.00			(8.79	)
Russell Multi-Style Equity
Year Ended 12/31/13		157		$	16.178812		$	2,546		1.19	%		0.00	%		32.92	%
Year Ended 12/31/12		145			12.171877			1,773		1.11			0.00			15.69
Year Ended 12/31/11		153			10.521100			1,616		0.94			0.00			(1.55	)
Year Ended 12/31/10		133			10.686543			1,416		0.88			0.00			16.46
Year Ended 12/31/09		107			9.176223			991		1.17			0.00			31.40
Russell Aggressive Equity
Year Ended 12/31/13		69		$	26.724835		$	1,850		0.43	%		0.00	%		40.00	%
Year Ended 12/31/12		61			19.088862			1,169		1.10			0.00			15.84
Year Ended 12/31/11		63			16.479338			1,047		0.49			0.00			(4.20	)
Year Ended 12/31/10		47			17.202203			803		0.47			0.00			24.88
Year Ended 12/31/09		29			13.775086			418		0.50			0.00			31.39
Russell Non-U.S.
Year Ended 12/31/13		169		$	18.624500		$	3,136		1.95	%		0.00	%		21.91	%
Year Ended 12/31/12		156			15.277391			2,370		1.77			0.00			19.81
Year Ended 12/31/11		150			12.750860			1,917		1.54			0.00			(12.88	)
Year Ended 12/31/10		106			14.635995			1,549		0.71			0.00			11.42
Year Ended 12/31/09		66			13.135524			876		2.83			0.00			26.49
Russell Core Bond
Year Ended 12/31/13		113		$	22.077570		$	2,477		1.40	%		0.00	%		(1.45	%)
Year Ended 12/31/12		108			22.402721			2,416		2.29			0.00			8.38
Year Ended 12/31/11		94			20.671320			1,945		3.17			0.00			4.68
Year Ended 12/31/10		65			19.746605			1,277		3.73			0.00			10.02
Year Ended 12/31/09		41			17.948158			730		4.73			0.00			15.81
Russell Global Real Estate Securities
Year Ended 12/31/13		123		$	38.920595		$	4,775		3.98	%		0.00	%		3.65	%
Year Ended 12/31/12		99			37.550773			3,703		5.21			0.00			27.56
Year Ended 12/31/11		83			29.438654			2,450		2.18			0.00			(7.05	)
Year Ended 12/31/10		60			31.671345			1,910		2.28			0.00			22.92
Year Ended 12/31/09		41			25.765834			1,057		4.34			0.00			28.94
Russell LifePoints Moderate Strategy
Year Ended 12/31/13		8		$	13.568584		$	109		2.31	%		0.00	%		6.79	%
Year Ended 12/31/12		2			12.706153			30		2.98			0.00			11.07
Period Ended 12/31/11 (3)		2			11.440046			20		5.02			0.00			(3.67	)
Russell LifePoints Balanced Strategy
Year Ended 12/31/13		32		$	13.255096		$	431		2.31	%		0.00	%		12.43	%
Year Ended 12/31/12		20			11.789785			232		2.75			0.00			12.96
Period Ended 12/31/11 (3)		4			10.437591			40		5.54			0.00			(6.53	)
Russell LifePoints Growth Strategy
Year Ended 12/31/13		25		$	12.591524		$	310		2.56	%		0.00	%		16.56	%
Year Ended 12/31/12		8			10.802768			89		2.28			0.00			14.22
Period Ended 12/31/11 (3)		3			9.458077			32		4.23			0.00			(9.16	)
Russell LifePoints Equity Growth Strategy
Year Ended 12/31/13		10		$	11.740704		$	115		2.12	%		0.00	%		19.81	%
Year Ended 12/31/12		6			9.799317			55		2.10			0.00			15.68
Period Ended 12/31/11 (3)		1			8.471141			8		3.99			0.00			(10.88	)
Credit Suisse Trust Commodity Return Strategy
Period Ended 12/31/13 (4)		187		$	7.085099		$	1,315		0.00	%		0.00	%		1.79	%

(1) Total return includes deductions for management and other expenses; it excludes deductions for sales loads and other charges, which are a reduction in units. The expense ratios further reflect only those expenses which impact total return. For additional information regarding all expenses assessed, refer to the accompanying notes. Returns are not annualized for periods less than one year.

(3) Divisions commenced operations on June 30, 2011.

(4) Division commenced operations on November 15, 2013.

29

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2013

6. Subsequent Event

Management has evaluated the events and/or the transactions that have occurred through the date of the financial statements were issued and noted no items requiring adjustments of the financial statements or additional disclosures.

30

Report of Independent Registered Public Accounting Firm

To The Northwestern Mutual Life Insurance Company Board of Trustees and

Policyowners of the Northwestern Mutual Variable Life Account II

In our opinion, the accompanying statements of assets and liabilities and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of the Northwestern Mutual Variable Life Account II and its Growth Stock Division, Focused Appreciation Division, Large Cap Core Stock Division, Large Cap Blend Division, Index 500 Stock Division, Large Company Value Division, Domestic Equity Division, Equity Income Division, Mid Cap Growth Stock Division, Index 400 Stock Division, Mid Cap Value Division, Small Cap Growth Stock Division, Index 600 Stock Division, Small Cap Value Division, International Growth Division, Research International Core Division, International Equity Division, Emerging Markets Equity Division, Money Market Division, Short-Term Bond Division, Select Bond Division, Long-Term U.S. Government Bond Division, Inflation Protection Division, High Yield Bond Division, Multi-Sector Bond Division, Balanced Division, Asset Allocation Division, Fidelity VIP Mid Cap Division, Fidelity VIP Contrafund Division, Neuberger Berman AMT Socially Responsive Division, Russell Multi-Style Equity Division, Russell Aggressive Equity Division, Russell Non-U.S. Division, Russell Core Bond Division, Russell Global Real Estate Securities Division, Russell LifePoints Moderate Strategy Division, Russell LifePoints Balanced Strategy Division, Russell LifePoints Growth Strategy Division, Russell LifePoints Equity Growth Strategy Division, Credit Suisse Trust Commodity Return Strategy Division, at December 31, 2013, and the results of their operations and the changes in their net assets for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of The Northwestern Mutual Life Insurance Company’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of investments owned at December 31, 2013 by correspondence with Northwestern Mutual Series Fund, Inc., Fidelity Variable Insurance Products, Neuberger Berman Advisers Management Trust, the Russell Investment Funds and Credit Suisse Trust, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Milwaukee, Wisconsin

April 28, 2014

31

	PRSRT BPM US POSTAGE PAID NORTHWESTERN MUTUAL
PO BOX 3095 MILWAUKEE Wl 53201-3095

This booklet contains information about the Northwestern Mutual variable insurance products and the variable investment options identified on the front cover. The variable investment options correspond with the investment divisions available under the variable insurance product (‘‘Product”). The information is prepared for Product owners and does not represent an offer of the Product, nor should it be used in connection with any offer, except when accompanied or preceded by the current Product prospectus and the variable investment option prospectuses, which contain detailed information about variable investment option investment objectives and operations, applicable fees, expenses and sales charges. Prospectuses may be obtained by calling the telephone number or visiting the website address listed on the inside of the front cover. You should read and carefully consider this information before you invest or send money. The variable investment option reports are prepared from the books and records of the options. Discussions of investment performance in the reports represent the views of the options’ portfolio managers as of the dates of the reports. They are not guarantees of investment results, nor should they be relied upon as investment advice or indications of current or future trading strategies of the portfolio managers. Portfolio manager views and security holdings are subject to change at any time.

NMIS is a member of Financial Industry Regulatory Authority (FINRA) and in accordance with the Investor Education and Protection Rule, we are providing our clients information regarding FINRA BrokerCheck, a free resource available to investors. An investor brochure describing FINRA BrokerCheck may be obtained online from FINRA’s website at www.finra.org or by contacting the FINRA BrokerCheck Hotline at 800-289-9999.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, Wl (NM) (life and disability insurance, annuities) and its subsidiaries.

Product Distributor: Northwestern Mutual Investment Services, LLC (NMIS), Suite 600, 611 East Wisconsin Avenue, Milwaukee, Wl 53202-4797,1-866-664-7737, member FINRA and SIPC

www.northwesternmutual.com

90-1899 (0786) (REV 0814)