August 31, 2018

VIA EDGAR

Securities and Exchange Commission

Division of Investment Management

100 F Street, NE

Washington, DC 20549

RE:     Northwestern Mutual Variable Life Account

    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 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, 2017 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	08/30/2018	811-03990
Fidelity VIP Mid Cap Portfolio	0000927384	08/21/2018	811-07205
Fidelity VIP Contrafund Portfolio	0000831016	08/21/2018	811-05511
Neuberger Berman Socially Responsive Portfolio	0000736913	08/22/2018	811-04255
Russell Investment Funds	0000824036	08/22/2018	811-05371
Credit Suisse Trust Commodity Return Strategy Portfolio	0000941568	08/24/2018	811-07261

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

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

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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 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, Custom Variable Universal 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	217 pages
Fidelity® VIP Mid Cap Portfolio - Semi-Annual Report	24 pages
(This report follows the end of the Northwestern Mutual Series Fund, Inc.)
Fidelity® VIP Contrafund® Portfolio - Semi-Annual Report	22 pages
(This report follows the end of the Fidelity® VIP Mid Cap Portfolio)
Neuberger Berman AMT Sustainable Equity Portfolio - Semi-Annual Report	22 pages
(This report follows the end of the Fidelity® VIP Contrafund® Portfolio)
Russell Investment Funds - Semi-Annual Report	172 pages
(This report follows the end of the Neuberger Berman AMT Sustainable Equity Portfolio)
Russell Investment Funds - LifePoints® Variable Target Portfolio Series - Semi-Annual Report	100 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	35 pages
Northwestern Mutual Variable Life Account II Financial Statements	34 pages
Prospectus Supplements and Shareholder Notices	7 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, 2017

Northwestern Mutual Variable Life Account

Financial Statements

Northwestern Mutual Variable Life Account

Financial Statements

Table of Contents

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 Registered Public Accounting Firm	32

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2017

(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 fair value (1)
Northwestern Mutual Series Fund, Inc	$	455,209	$	191,957	$	282,894	$	12,486	$	1,445,505
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		9		4		-		-		111
Total Assets		455,218		191,961		282,894		12,486		1,445,616
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		60		13		-
Total Liabilities		-		-		60		13		-
Total Net Assets	$	455,218	$	191,961	$	282,834	$	12,473	$	1,445,616
Net Assets:
Variable Life Policies Issued Before October 11,1995
Policyowners’ Equity	$	39,034	$	11,983	$	30,020	$	551	$	191,567
Northwestern Mutual Equity		375		92		345		6		1,541
Variable CompLife Policies Issued Between October 11,1995 and December 31, 2008 (2)
Policyowners’ Equity		392,208		157,544		237,136		11,198		1,155,355
Northwestern Mutual Equity		6,230		2,784		3,874		162		17,100
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		7,862		5,118		5,620		376		26,088
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		9,509		14,440		5,839		180		53,965
Total Net Assets	$	455,218	$	191,961	$	282,834	$	12,473	$	1,445,616
(1)  Investments, at cost	$	339,716	$	152,634	$	184,417	$	11,321	$	863,229
Mutual Fund Shares Held		150,036		70,807		144,555		10,361		293,384
(2)  Accumulation Unit Value	$	5.259578	$	4.983314	$	3.831001	$	2.060897	$	6.124794
Units Outstanding		75,757		32,173		62,915		5,512		191,428
(3)  Accumulation Unit Value	$	73.551913	$	53.438372	$	53.073917	$	17.855817	$	142.286114
Units Outstanding		107		96		106		21		183
(4)  Accumulation Unit Value	$	73.551913	$	53.438372	$	53.073917	$	17.855817	$	142.286114
Units Outstanding		129		270		110		10		379

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

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2017

(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 fair value (1)
Northwestern Mutual Series Fund, Inc	$	13,498	$	217,701	$	135,813	$	501,677	$	358,196
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		11		19		18		-
Total Assets		13,498		217,712		135,832		501,695		358,196
Liabilities:
Due to Northwestern Mutual Life Insurance Company		1		-		-		-		53
Total Liabilities		1		-		-		-		53
Total Net Assets	$	13,497	$	217,712	$	135,832	$	501,695	$	358,143
Net Assets:
Variable Life Policies Issued Before October 11,1995
Policyowners’ Equity	$	946	$	19,517	$	11,622	$	67,648	$	17,977
Northwestern Mutual Equity		10		168		108		763		148
Variable CompLife Policies Issued Between October 11,1995 and December 31, 2008 (2)
Policyowners’ Equity		11,992		181,994		113,900		412,837		313,031
Northwestern Mutual Equity		171		3,286		1,899		6,694		4,875
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		-		5,469		3,437		5,891		10,458
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		378		7,278		4,866		7,862		11,654
Total Net Assets	$	13,497	$	217,712	$	135,832	$	501,695	$	358,143
(1)  Investments, at cost	$	13,230	$	139,055	$	100,218	$	436,766	$	267,764
Mutual Fund Shares Held		12,711		129,816		72,822		145,119		169,841
(2)  Accumulation Unit Value	$	2.004205	$	2.768059	$	3.287847	$	4.446849	$	5.132177
Units Outstanding		6,069		66,937		35,221		94,345		61,949
(3)  Accumulation Unit Value	$	17.086312	$	29.996128	$	35.257091	$	125.441587	$	59.411237
Units Outstanding		-		182		97		47		176
(4)  Accumulation Unit Value	$	17.086312	$	29.996128	$	35.257091	$	125.441587	$	59.411237
Units Outstanding		22		243		138		63		196

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

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2017

(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 fair value (1)
Northwestern Mutual Series Fund, Inc	$	78,433	$	305,358	$	38,651	$	211,612	$	110,005
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		7		-		8		25		-
Total Assets		78,440		305,358		38,659		211,637		110,005
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		7		-		-		5
Total Liabilities		-		7		-		-		5
Total Net Assets	$	78,440	$	305,351	$	38,659	$	211,637	$	110,000
Net Assets:
Variable Life Policies Issued Before October 11,1995
Policyowners’ Equity	$	5,665	$	13,724	$	3,244	$	16,464	$	5,392
Northwestern Mutual Equity		46		117		28		137		55
Variable CompLife Policies Issued Between October 11,1995 and December 31, 2008 (2)
Policyowners’ Equity		67,496		273,584		32,193		182,307		95,041
Northwestern Mutual Equity		1,154		4,616		469		3,221		1,789
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		1,501		4,945		1,348		2,396		3,663
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		2,578		8,365		1,377		7,112		4,060
Total Net Assets	$	78,440	$	305,351	$	38,659	$	211,637	$	110,000
(1)  Investments, at cost	$	62,094	$	216,160	$	33,924	$	155,113	$	90,771
Mutual Fund Shares Held		42,789		106,175		26,656		83,476		69,055
(2)  Accumulation Unit Value	$	4.080949	$	4.909491	$	2.178475	$	4.400993	$	2.232113
Units Outstanding		16,827		56,670		14,993		42,159		43,382
(3)  Accumulation Unit Value	$	43.762109	$	65.129570	$	24.532713	$	47.690780	$	24.188049
Units Outstanding		34		76		55		50		151
(4)  Accumulation Unit Value	$	43.762109	$	65.129570	$	24.532713	$	47.690780	$	24.188049
Units Outstanding		59		128		56		149		168

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

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2017

(in thousands, except accumulation unit values)

							Government
	Research International Core Division		International Equity Division		Emerging Markets Equity Division		Money Market Division		Short-Term Bond Division
Assets:
Investments, at fair value (1)
Northwestern Mutual Series Fund, Inc	$	39,038	$	598,167	$	62,865	$	148,587	$	22,481
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		9		-		6		-		8
Total Assets		39,047		598,167		62,871		148,587		22,489
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		34		-		536		-
Total Liabilities		-		34		-		737		-
Total Net Assets	$	39,047	$	598,133	$	62,871	$	147,850	$	22,489
Net Assets:
Variable Life Policies Issued Before October 11, 1995
Policyowners’ Equity	$	2,301	$	69,659	$	3,304	$	11,570	$	1,894
Northwestern Mutual Equity		32		820		37		180		13
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		33,028		491,844		53,481		114,064		16,183
Northwestern Mutual Equity		514		8,524		831		3,155		240
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		1,710		11,053		1,865		11,090		885
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		1,462		16,233		3,353		7,791		3,274
Total Net Assets	$	39,047	$	598,133	$	62,871	$	147,850	$	22,489
(1)  Investments, at cost	$	33,947	$	545,649	$	55,003	$	148,587	$	22,537
Mutual Fund Shares Held		37,609		312,359		56,891		148,587		21,763
(2)  Accumulation Unit Value	$	1.325886	$	3.920448	$	1.025080	$	1.529296	$	1.033965
Units Outstanding		25,296		127,630		52,984		76,648		15,883
(3)  Accumulation Unit Value	$	12.802534	$	6.094491	$	12.370178	$	41.875417	$	12.646732
Units Outstanding		134		1,814		151		270		70
(4)  Accumulation Unit Value	$	12.802534	$	6.094491	$	12.370178	$	41.875417	$	12.646732
Units Outstanding		115		2,664		271		186		259

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

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2017

(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 fair value (1)
Northwestern Mutual Series Fund, Inc	$	251,713	$	9,877	$	10,493	$	116,378	$	40,377
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		41		3		-		-		4
Total Assets		251,754		9,880		10,493		116,378		40,381
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		11		-
Total Liabilities		-		-		-		11		-
Total Net Assets	$	251,754	$	9,880	$	10,493	$	116,367	$	40,381
Net Assets:
Variable Life Policies Issued Before October 11,1995
Policyowners’ Equity	$	23,604	$	681	$	618	$	8,246	$	2,235
Northwestern Mutual Equity		333		8		6		87		21
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		196,614		9,022		8,458		98,509		35,612
Northwestern Mutual Equity		3,684		149		133		1,653		599
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		16,708		20		437		5,324		380
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		10,811		-		841		2,548		1,534
Total Net Assets	$	251,754	$	9,880	$	10,493	$	116,367	$	40,381
(1)  Investments, at cost	$	254,002	$	10,379	$	10,353	$	109,085	$	39,850
Mutual Fund Shares Held		200,249		9,163		9,420		156,002		36,908
(2)  Accumulation Unit Value	$	2.828365	$	1.459300	$	1.114216	$	3.976385	$	1.358433
Units Outstanding		70,817		6,283		7,712		25,188		26,657
(3)  Accumulation Unit Value	$	226.897252	$	20.685508	$	14.738894	$	53.128855	$	18.780164
Units Outstanding		74		1		30		100		20
(4)  Accumulation Unit Value	$	226.897252	$	20.685508	$	14.738894	$	53.128855	$	18.780164
Units Outstanding		48		-		57		48		82

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

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2017

(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 fair value (1)
Northwestern Mutual Series Fund, Inc	$	375,040	$	53,606	$	-	$	-	$	-
Fidelity Variable Insurance Products Fund		-		-		195,573		44,857		-
Neuberger Berman Advisers Management Trust		-		-		-		-		5,287
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		33		-		-		1		-
Total Assets		375,073		53,606		195,573		44,858		5,287
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		6		5		-		-
Total Liabilities		-		6		5		-		-
Total Net Assets	$	375,073	$	53,600	$	195,568	$	44,858	$	5,287
Net Assets:
Variable Life Policies Issued Before October 11, 1995
Policyowners’ Equity	$	173,228	$	7,757	$	16,504	$	3,213	$	323
Northwestern Mutual Equity		1,453		77		141		26		3
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		181,319		41,272		165,061		38,575		3,883
Northwestern Mutual Equity		3,485		776		2,961		583		70
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		8,170		1,143		4,115		754		276
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		7,418		2,575		6,786		1,707		732
Total Net Assets	$	375,073	$	53,600	$	195,568	$	44,858	$	5,287
(1)  Investments, at cost	$	359,686	$	49,819	$	156,574	$	38,936	$	4,530
Mutual Fund Shares Held		254,265		44,412		5,175		1,211		206
(2)  Accumulation Unit Value	$	3.916267	$	2.331046	$	5.301232	$	2.008049	$	1.933853
Units Outstanding		47,189		18,039		31,699		19,501		2,044
(3)  Accumulation Unit Value	$	216.761163	$	25.259678	$	56.847028	$	22.036922	$	21.076980
Units Outstanding		38		45		72		34		13
(4)  Accumulation Unit Value	$	216.761163	$	25.259678	$	56.847028	$	22.036922	$	21.076980
Units Outstanding		34		102		119		77		35

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

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2017

(in thousands, except accumulation unit values)

	U.S. Strategic Equity Division		U.S. Small Cap Equity Division		International Developed Markets Division		Strategic Bond Division		Global Real Estate Division
Assets:
Investments, at fair value (1)
Northwestern Mutual Series Fund, Inc	$	-	$	-	$	-	$	-	$	-
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		230,552		110,477		141,488		86,177		179,127
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		-		-		3		-
Total Assets		230,552		110,477		141,488		86,180		179,127
Liabilities:
Due to Northwestern Mutual Life Insurance Company		43		18		16		-		32
Total Liabilities		43		18		16		-		32
Total Net Assets	$	230,509	$	110,459	$	141,472	$	86,180	$	179,095
Net Assets:
Variable Life Policies Issued Before October 11, 1995
Policyowners’ Equity	$	10,969	$	6,610	$	8,933	$	6,003	$	9,771
Northwestern Mutual Equity		90		54		98		95		99
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		195,250		94,997		118,115		64,177		155,166
Northwestern Mutual Equity		3,489		1,794		2,135		1,248		2,892
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		11,049		3,932		7,377		11,152		4,929
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		9,662		3,072		4,814		3,505		6,238
Total Net Assets	$	230,509	$	110,459	$	141,472	$	86,180	$	179,095
(1)  Investments, at cost	$	195,159	$	90,371	$	123,426	$	87,919	$	176,827
Mutual Fund Shares Held		12,442		6,736		10,784		8,310		12,095
(2)  Accumulation Unit Value	$	2.161152	$	2.978626	$	2.035246	$	2.300337	$	4.771257
Units Outstanding		91,969		32,494		59,089		28,442		33,128
(3)  Accumulation Unit Value	$	24.418364	$	34.518205	$	22.466466	$	24.895915	$	51.568102
Units Outstanding		452		114		328		448		96
(4)  Accumulation Unit Value	$	24.418364	$	34.518205	$	22.466466	$	24.895915	$	51.568102
Units Outstanding		396		89		214		140		121

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

Northwestern Mutual Variable Life Account

Statements of Assets and Liabilities

December 31, 2017

(in thousands, except accumulation unit values)

	LifePoints Moderate Strategy Division		LifePoints Balanced Strategy Division		LifePoints Growth Strategy Division		LifePoints Equity Growth Strategy Division		Credit Suisse Trust Commodity Return Strategy Division
Assets:
Investments, at fair value (1)
Northwestern Mutual Series Fund, Inc	$	-	$	-	$	-	$	-	$	-
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		6,961		22,494		22,135		13,333		-
Credit Suisse Trust		-		-		-		-		21,115
Due from Northwestern Mutual Life Insurance Company		-		1		4		-		7
Total Assets		6,961		22,495		22,139		13,333		21,122
Liabilities:
Due to Northwestern Mutual Life Insurance Company		1		-		-		3		-
Total Liabilities		1		-		-		3		-
Total Net Assets	$	6,960	$	22,495	$	22,139	$	13,330	$	21,122
Net Assets:
Variable Life Policies Issued Before October 11, 1995
Policyowners’ Equity	$	985	$	5,575	$	4,076	$	1,758	$	602
Northwestern Mutual Equity		8		58		38		15		6
Variable CompLife Policies Issued Between October 11, 1995 and December 31, 2008 (2)
Policyowners’ Equity		5,834		16,205		17,354		10,449		18,162
Northwestern Mutual Equity		121		303		328		199		330
Variable Executive Life Policies Issued Between March 2, 1998 and December 31, 2008 (3)
Policyowners’ Equity		11		7		2		-		1,117
Variable Joint Life Policies Issued Between December 10, 1998 and December 31, 2008 (4)
Policyowners’ Equity		1		347		341		909		905
Total Net Assets	$	6,960	$	22,495	$	22,139	$	13,330	$	21,122
(1)  Investments, at cost	$	6,752	$	22,386	$	20,825	$	11,877	$	25,654
Mutual Fund Shares Held		676		2,212		2,116		1,339		5,239
(2)  Accumulation Unit Value	$	1.353996	$	1.439016	$	1.495208	$	1.554985	$	5.372638
Units Outstanding		4,398		11,471		11,826		6,847		3,441
(3)  Accumulation Unit Value	$	16.557145	$	16.545882	$	16.029490	$	15.218716	$	5.017461
Units Outstanding		1		-		-		-		223
(4)  Accumulation Unit Value	$	16.557145	$	16.545882	$	16.029490	$	15.218716	$	5.017461
Units Outstanding		-		21		21		60		181

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

Northwestern Mutual Variable Life Account

Statements of Operations

For the Year Ended December 31, 2017

(in thousands)

	Growth Stock Division			Focused Appreciation Division		Large Cap Core Stock Division		Large Cap Blend Division			Index 500 Stock Division
Income:
Dividend income	$	3,684		$	1,223	$	4,615	$	104		$	23,539
Expenses:
Mortality and expense risk charges		1,840			690		1,129		48			5,718
Taxes		19			5		14		-			90
Total expenses		1,859			695		1,143		48			5,808
Net investment income (loss)		1,825			528		3,472		56			17,731
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		8,809			2,611		6,417		164			28,442
Realized gain distribution		19,362			3,088		-		564			13,845
Realized gains (losses)		28,171			5,699		6,417		728			42,287
Change in unrealized appreciation/(depreciation) of investments during the period		59,092			40,771		46,331		1,130			193,671
Net increase (decrease) in net assets resulting from operations	$	89,088		$	46,998	$	56,220	$	1,914		$	253,689
	Large Company Value Division			Domestic Equity Division		Equity Income Division		Mid Cap Growth Stock Division			Index 400 Stock Division
Income:
Dividend income	$	267		$	3,359	$	2,824	$	1,159		$	3,648
Expenses:
Mortality and expense risk charges		57			880		541		2,076			1,427
Taxes		-			9		5		32			9
Total expenses		57			889		546		2,108			1,436
Net investment income (loss)		210			2,470		2,278		(949	)		2,212
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		(114	)		4,475		3,052		6,637			6,615
Realized gain distribution		533			5,009		6,007		-			19,438
Realized gains (losses)		419			9,484		9,059		6,637			26,053
Change in unrealized appreciation/(depreciation) of investments during the period		696			14,099		7,487		78,700			20,618
Net increase (decrease) in net assets resulting from operations	$	1,325		$	26,053	$	18,824	$	84,388		$	48,883

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, 2017

(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	$	1,109	$	301		$	648	$	1,569	$	1,292
Expenses:
Mortality and expense risk charges		328		1,221			146		867		407
Taxes		3		6			2		8		2
Total expenses		331		1,227			148		875		409
Net investment income (loss)		778		(926	)		500		694		883
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		2,669		1,485			657		4,853		(834	)
Realized gain distribution		2,681		3,111			1,195		10,551		-
Realized gains (losses)		5,350		4,596			1,852		15,404		(834	)
Change in unrealized appreciation/(depreciation) of investments during the period		2,073		50,595			1,773		5,468		24,534
Net increase (decrease) in net assets resulting from operations	$	8,201	$	54,265		$	4,125	$	21,566	$	24,583
	Research International Core Division		International Equity Division			Emerging Markets Equity Division		Government Money Market Division		Short-Term Bond Division
Income:
Dividend income	$	566	$	13,195		$	485	$	936	$	287
Expenses:
Mortality and expense risk charges		134		2,417			213		617		85
Taxes		1		33			1		6		1
Total expenses		135		2,450			214		623		86
Net investment income (loss)		431		10,745			271		313		201
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		646		8,591			5		-		29
Realized gain distribution		-		-			-		1		-
Realized gains (losses)		646		8,591			5		1		29
Change in unrealized appreciation/(depreciation) of investments during the period		6,821		88,760			11,518		-		(26	)
Net increase (decrease) in net assets resulting from operations	$	7,898	$	108,096		$	11,794	$	314	$	204

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

Northwestern Mutual Variable Life Account

Statements of Operations

For the Year Ended December 31, 2017

(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	$	5,186		$	177		$	71		$	6,272	$	1,449
Expenses:
Mortality and expense risk charges		1,008			43			41			484		160
Taxes		12			-			-			4		1
Total expenses		1,020			43			41			488		161
Net investment income (loss)		4,166			134			30			5,784		1,288
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		455			(183	)		(15	)		610		(159	)
Realized gain distribution		3,358			363			30			-		-
Realized gains (losses)		3,813			180			15			610		(159	)
Change in unrealized appreciation/(depreciation) of investments during the period		(249	)		386			272			703		1,618
Net increase (decrease) in net assets resulting from operations	$	7,730		$	700		$	317		$	7,097	$	2,747
	Balanced Division			Asset Allocation Division			Fidelity VIP Mid Cap Division			Fidelity VIP Contrafund Division		Neuberger Berman AMT Socially Responsive Division
Income:
Dividend income	$	7,949		$	1,038		$	892		$	326	$	27
Expenses:
Mortality and expense risk charges		1,635			210			772			179		20
Taxes		84			4			8			1		-
Total expenses		1,719			214			780			180		20
Net investment income (loss)		6,230			824			112			146		7
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		(3,286	)		742			746			1,215		238
Realized gain distribution		13,278			2,170			8,325			2,233		191
Realized gains (losses)		9,992			2,912			9,071			3,448		429
Change in unrealized appreciation/(depreciation) of investments during the period		22,907			2,897			24,016			4,354		412
Net increase (decrease) in net assets resulting from operations	$	39,129		$	6,633		$	33,199		$	7,948	$	848

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, 2017

(in thousands)

	U.S. Strategic Equity Division			U.S. Small Cap Equity Division			International Developed Markets Division			Strategic Bond Division		Global Real Estate Division
Income:
Dividend income	$	2,215		$	184		$	3,455		$	1,171	$	6,282
Expenses:
Mortality and expense risk charges		886			436			533			325		730
Taxes		5			3			4			3		5
Total expenses		891			439			537			328		735
Net investment income (loss)		1,324			(255	)		2,918			843		5,547
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		5,129			965			(426	)		106		(3,435	)
Realized gain distribution		21,347			7,195			4,699			-		3,283
Realized gains (losses)		26,476			8,160			4,273			106		(152	)
Change in unrealized appreciation/(depreciation) of investments during the period		12,183			6,712			20,702			2,024		13,204
Net increase (decrease) in net assets resulting from operations	$	39,983		$	14,617		$	27,893		$	2,973	$	18,599
	LifePoints Moderate Strategy Division			LifePoints Balanced Strategy Division			LifePoints Growth Strategy Division			LifePoints Equity Growth Strategy Division		Credit Suisse Trust Commodity Return Strategy Division
Income:
Dividend income	$	137		$	505		$	650		$	412	$	1,839
Expenses:
Mortality and expense risk charges		27			96			91			51		82
Taxes		-			2			2			1		-
Total expenses		27			98			93			52		82
Net investment income (loss)		110			407			557			360		1,757
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		(10	)		75			407			161		(1,637	)
Realized gain distribution		69			974			447			230		-
Realized gains (losses)		59			1,049			854			391		(1,637	)
Change in unrealized appreciation/(depreciation) of investments during the period		351			814			1,449			1,127		106
Net increase (decrease) in net assets resulting from operations	$	520		$	2,270		$	2,860		$	1,878	$	226

12 The Accompanying Notes are an Integral Part of these 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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	1,825		$	1,620		$	528		$	(270	)
Net realized gains (losses)		28,171			45,896			5,699			42,633
Net change in unrealized appreciation/(depreciation)		59,092			(40,014	)		40,771			(34,783	)
Net increase (decrease) in net assets resulting from operations		89,088			7,502			46,998			7,580
Policy Transactions:
Policy owners’ net payments		14,122			13,339			4,657			5,361
Policy loans, surrenders and death benefits		(19,169	)		(20,322	)		(8,218	)		(6,701	)
Mortality and other (net)		(8,079	)		(7,996	)		(3,177	)		(2,967	)
Transfers from other divisions or sponsor		52,007			37,564			31,248			24,168
Transfers to other divisions or sponsor		(54,330	)		(41,210	)		(25,934	)		(19,714	)
Net increase (decrease) in net assets resulting from contract transactions		(15,449	)		(18,625	)		(1,424	)		147
Net increase (decrease) in net assets		73,639			(11,123	)		45,574			7,727
Net Assets:
Beginning of period		381,579			392,702			146,387			138,660
End of period	$	455,218		$	381,579		$	191,961		$	146,387
Units issued during the period		5,874			6,637			4,444			6,972
Units redeemed during the period		(8,613	)		(10,487	)		(5,605	)		(7,506	)
Net units issued (redeemed) during period		(2,739	)		(3,850	)		(1,161	)		(534	)
	Large Cap Core Stock Division						Large Cap Blend Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	3,472		$	3,943		$	56		$	58
Net realized gains (losses)		6,417			8,984			728			1,077
Net change in unrealized appreciation/(depreciation)		46,331			2,919			1,130			46
Net increase (decrease) in net assets resulting from operations		56,220			15,846			1,914			1,181
Policy Transactions:
Policy owners’ net payments		9,693			9,954			369			345
Policy loans, surrenders and death benefits		(11,940	)		(11,141	)		(527	)		(391	)
Mortality and other (net)		(5,310	)		(5,363	)		(189	)		(178	)
Transfers from other divisions or sponsor		17,187			20,931			2,987			2,340
Transfers to other divisions or sponsor		(17,449	)		(24,288	)		(1,663	)		(2,649	)
Net increase (decrease) in net assets resulting from contract transactions		(7,819	)		(9,907	)		977			(533	)
Net increase (decrease) in net assets		48,401			5,939			2,891			648
Net Assets:
Beginning of period		234,433			228,494			9,582			8,934
End of period	$	282,834		$	234,433		$	12,473		$	9,582
Units issued during the period		4,939			6,930			1,486			1,262
Units redeemed during the period		(6,540	)		(9,324	)		(1,012	)		(1,607	)
Net units issued (redeemed) during period		(1,601	)		(2,394	)		474			(345	)

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	17,731		$	16,201		$	210		$	142
Net realized gains (losses)		42,287			39,325			419			958
Net change in unrealized appreciation/(depreciation)		193,671			68,263			696			477
Net increase (decrease) in net assets resulting from operations		253,689			123,789			1,325			1,577
Policy Transactions:
Policy owners’ net payments		39,146			40,344			518			375
Policy loans, surrenders and death benefits		(56,230	)		(50,095	)		(661	)		(363	)
Mortality and other (net)		(24,654	)		(23,150	)		(208	)		(199	)
Transfers from other divisions or sponsor		158,572			112,605			2,869			2,778
Transfers to other divisions or sponsor		(147,117	)		(94,494	)		(3,155	)		(1,884	)
Net increase (decrease) in net assets resulting from contract transactions		(30,283	)		(14,790	)		(637	)		707
Net increase (decrease) in net assets		223,406			108,999			688			2,284
Net Assets:
Beginning of period		1,222,210			1,113,211			12,809			10,525
End of period	$	1,445,616		$	1,222,210		$	13,497		$	12,809
Units issued during the period		16,264			19,194			1,382			1,729
Units redeemed during the period		(20,332	)		(21,574	)		(1,581	)		(1,316	)
Net units issued (redeemed) during period		(4,068	)		(2,380	)		(199	)		413
	Domestic Equity Division						Equity Income Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	2,470		$	2,756		$	2,278		$	1,792
Net realized gains (losses)		9,484			10,777			9,059			7,846
Net change in unrealized appreciation/(depreciation)		14,099			12,436			7,487			9,616
Net increase (decrease) in net assets resulting from operations		26,053			25,969			18,824			19,254
Policy Transactions:
Policy owners’ net payments		6,730			6,334			4,353			4,211
Policy loans, surrenders and death benefits		(9,757	)		(8,607	)		(5,009	)		(5,023	)
Mortality and other (net)		(3,780	)		(3,989	)		(2,334	)		(2,223	)
Transfers from other divisions or sponsor		27,917			20,732			38,396			32,123
Transfers to other divisions or sponsor		(33,174	)		(20,380	)		(40,748	)		(35,200	)
Net increase (decrease) in net assets resulting from contract transactions		(12,064	)		(5,910	)		(5,342	)		(6,112	)
Net increase (decrease) in net assets		13,989			20,059			13,482			13,142
Net Assets:
Beginning of period		203,723			183,664			122,350			109,208
End of period	$	217,712		$	203,723		$	135,832		$	122,350
Units issued during the period		6,339			10,501			4,806			5,663
Units redeemed during the period		(10,251	)		(13,180	)		(6,453	)		(7,532	)
Net units issued (redeemed) during period		(3,912	)		(2,679	)		(1,647	)		(1,869	)

14 The Accompanying Notes are an Integral Part of these 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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	(949	)	$	(1,159	)	$	2,212		$	2,138
Net realized gains (losses)		6,637			37,735			26,053			26,650
Net change in unrealized appreciation/(depreciation)		78,700			(35,131	)		20,618			25,003
Net increase (decrease) in net assets resulting from operations		84,388			1,445			48,883			53,791
Policy Transactions:
Policy owners’ net payments		17,576			18,624			9,483			8,562
Policy loans, surrenders and death benefits		(20,861	)		(23,207	)		(14,406	)		(13,600	)
Mortality and other (net)		(9,273	)		(9,330	)		(5,811	)		(5,485	)
Transfers from other divisions or sponsor		33,793			24,376			78,492			55,433
Transfers to other divisions or sponsor		(38,600	)		(28,172	)		(80,407	)		(52,209	)
Net increase (decrease) in net assets resulting from contract transactions		(17,365	)		(17,709	)		(12,649	)		(7,299	)
Net increase (decrease) in net assets		67,023			(16,264	)		36,234			46,492
Net Assets:
Beginning of period		434,672			450,936			321,909			275,417
End of period	$	501,695		$	434,672		$	358,143		$	321,909
Units issued during the period		7,380			8,144			6,533			7,165
Units redeemed during the period		(10,834	)		(11,901	)		(8,817	)		(9,075	)
Net units issued (redeemed) during period		(3,454	)		(3,757	)		(2,284	)		(1,910	)
	Mid Cap Value Division						Small Cap Growth Stock Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	778		$	814		$	(926	)	$	(483	)
Net realized gains (losses)		5,350			5,890			4,596			26,234
Net change in unrealized appreciation/(depreciation)		2,073			6,614			50,595			1,743
Net increase (decrease) in net assets resulting from operations		8,201			13,318			54,265			27,494
Policy Transactions:
Policy owners’ net payments		2,112			2,170			9,211			9,094
Policy loans, surrenders and death benefits		(3,530	)		(2,529	)		(13,306	)		(11,476	)
Mortality and other (net)		(1,407	)		(1,345	)		(5,072	)		(4,708	)
Transfers from other divisions or sponsor		14,442			13,090			34,943			31,343
Transfers to other divisions or sponsor		(15,864	)		(7,681	)		(37,523	)		(35,160	)
Net increase (decrease) in net assets resulting from contract transactions		(4,247	)		3,705			(11,747	)		(10,907	)
Net increase (decrease) in net assets		3,954			17,023			42,518			16,587
Net Assets:
Beginning of period		74,486			57,463			262,833			246,246
End of period	$	78,440		$	74,486		$	305,351		$	262,833
Units issued during the period		2,539			3,487			4,953			6,249
Units redeemed during the period		(3,600	)		(2,583	)		(7,213	)		(8,945	)
Net units issued (redeemed) during period		(1,061	)		904			(2,260	)		(2,696	)

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			Year Ended			Year Ended			Year Ended
	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Operations:
Net investment income (loss)	$	500		$	37		$	694		$	855
Net realized gains (losses)		1,852			1,277			15,404			24,891
Net change in unrealized appreciation/(depreciation)		1,773			4,539			5,468			22,755
Net increase (decrease) in net assets resulting from operations		4,125			5,853			21,566			48,501
Policy Transactions:
Policy owners’ net payments		1,177			784			6,134			6,519
Policy loans, surrenders and death benefits		(1,052	)		(979	)		(9,568	)		(7,329	)
Mortality and other (net)		(587	)		(454	)		(3,527	)		(3,374	)
Transfers from other divisions or sponsor		20,664			11,375			14,289			16,178
Transfers to other divisions or sponsor		(16,216	)		(6,862	)		(17,189	)		(17,444	)
Net increase (decrease) in net assets resulting from contract transactions		3,986			3,864			(9,861	)		(5,450	)
Net increase (decrease) in net assets		8,111			9,717			11,705			43,051
Net Assets:
Beginning of period		30,548			20,831			199,932			156,881
End of period	$	38,659		$	30,548		$	211,637		$	199,932
Units issued during the period		5,491			4,422			4,279			5,511
Units redeemed during the period		(3,821	)		(2,613	)		(6,388	)		(6,473	)
Net units issued (redeemed) during period		1,670			1,809			(2,109	)		(962	)
	International Growth Division						Research International Core Division
	Year Ended			Year Ended			Year Ended			Year Ended
	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Operations:
Net investment income (loss)	$	883		$	630		$	431		$	347
Net realized gains (losses)		(834	)		(1,804	)		646			225
Net change in unrealized appreciation/(depreciation)		24,534			(2,196	)		6,821			(925	)
Net increase (decrease) in net assets resulting from operations		24,583			(3,370	)		7,898			(353	)
Policy Transactions:
Policy owners’ net payments		4,868			5,036			1,193			1,032
Policy loans, surrenders and death benefits		(5,220	)		(4,066	)		(1,709	)		(1,874	)
Mortality and other (net)		(1,874	)		(1,638	)		(558	)		(402	)
Transfers from other divisions or sponsor		32,206			17,106			28,660			12,781
Transfers to other divisions or sponsor		(28,132	)		(18,406	)		(22,992	)		(9,133	)
Net increase (decrease) in net assets resulting from contract transactions		1,848			(1,968	)		4,594			2,404
Net increase (decrease) in net assets		26,431			(5,338	)		12,492			2,051
Net Assets:
Beginning of period		83,569			88,907			26,555			24,504
End of period	$	110,000		$	83,569		$	39,047		$	26,555
Units issued during the period		8,345			9,794			9,549			5,981
Units redeemed during the period		(7,295	)		(10,987	)		(5,621	)		(4,747	)
Net units issued (redeemed) during period		1,050			(1,193	)		3,928			1,234

16 The Accompanying Notes are an Integral Part of these 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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	10,745		$	8,216		$	271		$	117
Net realized gains (losses)		8,591			9,794			5			(993	)
Net change in unrealized appreciation/(depreciation)		88,760			(6,228	)		11,518			3,939
Net increase (decrease) in net assets resulting from operations		108,096			11,782			11,794			3,063
Policy Transactions:
Policy owners’ net payments		22,619			24,636			1,988			1,803
Policy loans, surrenders and death benefits		(26,854	)		(22,332	)		(1,637	)		(1,938	)
Mortality and other (net)		(10,810	)		(8,848	)		(843	)		(648	)
Transfers from other divisions or sponsor		53,850			59,573			21,668			16,062
Transfers to other divisions or sponsor		(51,059	)		(65,166	)		(9,330	)		(13,867	)
Net increase (decrease) in net assets resulting from contract transactions		(12,254	)		(12,137	)		11,846			1,412
Net increase (decrease) in net assets		95,842			(355	)		23,640			4,475
Net Assets:
Beginning of period		502,291			502,646			39,231			34,756
End of period	$	598,133		$	502,291		$	62,871		$	39,231
Units issued during the period		19,724			38,507			18,232			11,875
Units redeemed during the period		(22,314	)		(41,698	)		(7,276	)		(9,272	)
Net units issued (redeemed) during period		(2,590	)		(3,191	)		10,956			2,603
	Government Money Market Division						Short-Term Bond Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	313		$	(433	)	$	201		$	145
Net realized gains (losses)		1			13			29			48
Net change in unrealized appreciation/(depreciation)		-			-			(26	)		15
Net increase (decrease) in net assets resulting from operations		314			(420	)		204			208
Policy Transactions:
Policy owners’ net payments		50,425			54,758			813			78
Policy loans, surrenders and death benefits		(22,644	)		(31,362	)		(2,762	)		(1,687	)
Mortality and other (net)		(4,595	)		(5,055	)		(366	)		(344	)
Transfers from other divisions or sponsor		120,861			154,738			11,997			11,068
Transfers to other divisions or sponsor		(161,310	)		(179,008	)		(7,802	)		(4,660	)
Net increase (decrease) in net assets resulting from contract transactions		(17,263	)		(5,929	)		1,880			4,455
Net increase (decrease) in net assets		(16,949	)		(6,349	)		2,084			4,663
Net Assets:
Beginning of period		164,799			171,148			20,405			15,742
End of period	$	147,850		$	164,799		$	22,489		$	20,405
Units issued during the period		60,150			77,734			6,683			9,899
Units redeemed during the period		(66,766	)		(73,697	)		(6,977	)		(5,931	)
Net units issued (redeemed) during period		(6,616	)		4,037			(294	)		3,968

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	4,166		$	3,885		$	134		$	154
Net realized gains (losses)		3,813			2,133			180			558
Net change in unrealized appreciation/(depreciation)		(249	)		363			386			(813	)
Net increase (decrease) in net assets resulting from operations		7,730			6,381			700			(101	)
Policy Transactions:
Policy owners’ net payments		10,351			10,912			485			438
Policy loans, surrenders and death benefits		(13,959	)		(15,616	)		(542	)		(884	)
Mortality and other (net)		(4,602	)		(5,078	)		(192	)		(220	)
Transfers from other divisions or sponsor		142,616			182,005			3,781			6,064
Transfers to other divisions or sponsor		(139,500	)		(172,683	)		(3,946	)		(3,804	)
Net increase (decrease) in net assets resulting from contract transactions		(5,094	)		(460	)		(414	)		1,594
Net increase (decrease) in net assets		2,636			5,921			286			1,493
Net Assets:
Beginning of period		249,118			243,197			9,594			8,101
End of period	$	251,754		$	249,118		$	9,880		$	9,594
Units issued during the period		10,246			12,286			2,897			4,016
Units redeemed during the period		(10,256	)		(11,924	)		(3,156	)		(3,144	)
Net units issued (redeemed) during period		(10	)		362			(259	)		872
	Inflation Protection Division						High Yield Bond Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	30		$	71		$	5,784		$	5,264
Net realized gains (losses)		15			(262	)		610			153
Net change in unrealized appreciation/(depreciation)		272			513			703			8,628
Net increase (decrease) in net assets resulting from operations		317			322			7,097			14,045
Policy Transactions:
Policy owners’ net payments		441			150			3,693			4,341
Policy loans, surrenders and death benefits		(573	)		(705	)		(5,620	)		(5,641	)
Mortality and other (net)		(173	)		(172	)		(2,200	)		(2,257	)
Transfers from other divisions or sponsor		6,417			5,144			26,064			23,577
Transfers to other divisions or sponsor		(4,923	)		(3,727	)		(23,509	)		(24,137	)
Net increase (decrease) in net assets resulting from contract transactions		1,189			690			(1,572	)		(4,117	)
Net increase (decrease) in net assets		1,506			1,012			5,525			9,928
Net Assets:
Beginning of period		8,987			7,975			110,842			100,914
End of period	$	10,493		$	8,987		$	116,367		$	110,842
Units issued during the period		2,968			3,083			3,295			3,750
Units redeemed during the period		(2,079	)		(2,545	)		(3,700	)		(4,572	)
Net units issued (redeemed) during period		889			538			(405	)		(822	)

18 The Accompanying Notes are an Integral Part of these 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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	1,288		$	1,267		$	6,230		$	6,076
Net realized gains (losses)		(159	)		(342	)		9,992			46
Net change in unrealized appreciation/(depreciation)		1,618			1,983			22,907			13,568
Net increase (decrease) in net assets resulting from operations		2,747			2,908			39,129			19,690
Policy Transactions:
Policy owners’ net payments		1,422			1,216			12,816			4,356
Policy loans, surrenders and death benefits		(2,784	)		(1,364	)		(16,343	)		(15,351	)
Mortality and other (net)		(674	)		(622	)		(8,474	)		(8,464	)
Transfers from other divisions or sponsor		11,111			10,354			85,933			72,413
Transfers to other divisions or sponsor		(4,418	)		(7,061	)		(85,391	)		(70,276	)
Net increase (decrease) in net assets resulting from contract transactions		4,657			2,523			(11,459	)		(17,322	)
Net increase (decrease) in net assets		7,404			5,431			27,670			2,368
Net Assets:
Beginning of period		32,977			27,546			347,403			345,035
End of period	$	40,381		$	32,977		$	375,073		$	347,403
Units issued during the period		8,081			7,965			4,803			5,471
Units redeemed during the period		(4,765	)		(6,146	)		(6,304	)		(10,013	)
Net units issued (redeemed) during period		3,316			1,819			(1,501	)		(4,542	)
	Asset Allocation Division						Fidelity VIP Mid Cap Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	824		$	860		$	112		$	(181	)
Net realized gains (losses)		2,912			2,660			9,071			10,023
Net change in unrealized appreciation/(depreciation)		2,897			(399	)		24,016			7,801
Net increase (decrease) in net assets resulting from operations		6,633			3,121			33,199			17,643
Policy Transactions:
Policy owners’ net payments		2,103			1,924			6,627			6,876
Policy loans, surrenders and death benefits		(1,595	)		(2,252	)		(7,622	)		(7,350	)
Mortality and other (net)		(1,083	)		(1,030	)		(3,324	)		(3,267	)
Transfers from other divisions or sponsor		4,161			2,560			18,461			19,500
Transfers to other divisions or sponsor		(1,514	)		(3,719	)		(21,758	)		(26,117	)
Net increase (decrease) in net assets resulting from contract transactions		2,072			(2,517	)		(7,616	)		(10,358	)
Net increase (decrease) in net assets		8,705			604			25,583			7,285
Net Assets:
Beginning of period		44,895			44,291			169,985			162,700
End of period	$	53,600		$	44,895		$	195,568		$	169,985
Units issued during the period		2,351			1,947			3,183			4,476
Units issued during the period		(1,802	)		(2,799	)		(4,373	)		(6,304	)
Net units issued (redeemed) during period		549			(852	)		(1,190	)		(1,828	)

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	146		$	71		$	7		$	15
Net realized gains (losses)		3,448			4,138			429			292
Net change in unrealized appreciation/(depreciation)		4,354			(1,716	)		412			114
Net increase (decrease) in net assets resulting from operations		7,948			2,493			848			421
Policy Transactions:
Policy owners’ net payments		1,185			1,475			197			200
Policy loans, surrenders and death benefits		(1,923	)		(1,701	)		(127	)		(124	)
Mortality and other (net)		(721	)		(680	)		(86	)		(80	)
Transfers from other divisions or sponsor		7,393			8,026			1,543			1,270
Transfers to other divisions or sponsor		(7,235	)		(10,959	)		(1,975	)		(1,314	)
Net increase (decrease) in net assets resulting from contract transactions		(1,301	)		(3,839	)		(448	)		(48	)
Net increase (decrease) in net assets		6,647			(1,346	)		400			373
Net Assets:
Beginning of period		38,211			39,557			4,887			4,514
End of period	$	44,858		$	38,211		$	5,287		$	4,887
Units issued during the period		3,439			3,690			397			437
Units redeemed during the period		(3,965	)		(5,993	)		(695	)		(460	)
Net units issued (redeemed) during period		(526	)		(2,303	)		(298	)		(23	)
	U.S. Strategic Equity Division						U.S. Small Cap Equity Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	1,324		$	1,257		$	(255	)	$	371
Net realized gains (losses)		26,476			18,857			8,160			(542	)
Net change in unrealized appreciation/(depreciation)		12,183			(789	)		6,712			15,792
Net increase (decrease) in net assets resulting from operations		39,983			19,325			14,617			15,621
Policy Transactions:
Policy owners’ net payments		6,438			6,896			3,902			3,857
Policy loans, surrenders and death benefits		(12,624	)		(12,791	)		(5,175	)		(5,720	)
Mortality and other (net)		(3,898	)		(3,830	)		(1,955	)		(1,906	)
Transfers from other divisions or sponsor		11,013			10,247			10,586			10,569
Transfers to other divisions or sponsor		(15,389	)		(17,959	)		(11,898	)		(13,778	)
Net increase (decrease) in net assets resulting from contract transactions		(14,460	)		(17,437	)		(4,540	)		(6,978	)
Net increase (decrease) in net assets		25,523			1,888			10,077			8,643
Net Assets:
Beginning of period		204,986			203,098			100,382			91,739
End of period	$	230,509		$	204,986		$	110,459		$	100,382
Units issued during the period		6,824			8,644			3,090			3,574
Units redeemed during the period		(13,296	)		(17,757	)		(4,483	)		(6,134	)
Net units issued (redeemed) during period		(6,472	)		(9,113	)		(1,393	)		(2,560	)

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

Northwestern Mutual Variable Life Account

Statements of Changes in Net Assets

(in thousands)

	International Developed Markets Division						Strategic Bond Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	2,918		$	3,229		$	843		$	1,078
Net realized gains (losses)		4,273			(995	)		106			3,291
Net change in unrealized appreciation/(depreciation)		20,702			(62	)		2,024			(2,027	)
Net increase (decrease) in net assets resulting from operations		27,893			2,172			2,973			2,342
Policy Transactions:
Policy owners’ net payments		5,149			5,323			3,523			3,465
Policy loans, surrenders and death benefits		(6,448	)		(6,474	)		(5,976	)		(4,549	)
Mortality and other (net)		(2,462	)		(2,267	)		(1,706	)		(1,877	)
Transfers from other divisions or sponsor		20,376			16,995			29,681			42,958
Transfers to other divisions or sponsor		(19,187	)		(17,268	)		(28,628	)		(41,602	)
Net increase (decrease) in net assets resulting from contract transactions		(2,572	)		(3,691	)		(3,106	)		(1,605	)
Net increase (decrease) in net assets		25,321			(1,519	)		(133	)		737
Net Assets:
Beginning of period		116,151			117,670			86,313			85,576
End of period	$	141,472		$	116,151		$	86,180		$	86,313
Units issued during the period		8,086			8,155			5,623			9,358
Units redeemed during the period		(9,137	)		(10,276	)		(6,536	)		(9,358	)
Net units issued (redeemed) during period		(1,051	)		(2,121	)		(913	)		—
	Global Real Estate Division						LifePoints Moderate Strategy Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	5,547		$	7,069		$	110		$	162
Net realized gains (losses)		(152	)		4,210			59			138
Net change in unrealized appreciation/(depreciation)		13,204			(6,864	)		351			90
Net increase (decrease) in net assets resulting from operations		18,599			4,415			520			390
Policy Transactions:
Policy owners’ net payments		6,894			7,302			263			(714	)
Policy loans, surrenders and death benefits		(8,987	)		(10,023	)		(178	)		(392	)
Mortality and other (net)		(3,193	)		(3,457	)		(120	)		(108	)
Transfers from other divisions or sponsor		22,200			25,224			1,327			2,870
Transfers to other divisions or sponsor		(25,065	)		(26,974	)		(27	)		(127	)
Net increase (decrease) in net assets resulting from contract transactions		(8,151	)		(7,928	)		1,265			1,529
Net increase (decrease) in net assets		10,448			(3,513	)		1,785			1,919
Net Assets:
Beginning of period		168,647			172,160			5,175			3,256
End of period	$	179,095		$	168,647		$	6,960		$	5,175
Units issued during the period		3,595			4,868			1,076			3,351
Units redeemed during the period		(5,174	)		(6,356	)		(174	)		(2,029	)
Net units issued (redeemed) during period		(1,579	)		(1,488	)		902			1,322

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)

	LifePoints Balanced Strategy Division						LifePoints Growth Strategy Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	407		$	518		$	557		$	468
Net realized gains (losses)		1,049			319			854			207
Net change in unrealized appreciation/(depreciation)		814			692			1,449			1,021
Net increase (decrease) in net assets resulting from operations		2,270			1,529			2,860			1,696
Policy Transactions:
Policy owners’ net payments		907			889			763			948
Policy loans, surrenders and death benefits		(515	)		(904	)		(1,120	)		(971	)
Mortality and other (net)		(478	)		(430	)		(394	)		(446	)
Transfers from other divisions or sponsor		2,852			2,457			2,181			717
Transfers to other divisions or sponsor		(1,311	)		(2,277	)		(1,710	)		(1,421	)
Net increase (decrease) in net assets resulting from contract transactions		1,455			(265	)		(280	)		(1,173	)
Net increase (decrease) in net assets		3,725			1,264			2,580			523
Net Assets:
Beginning of period		18,770			17,506			19,559			19,036
End of period	$	22,495		$	18,770		$	22,139		$	19,559
Units issued during the period		2,297			2,206			2,013			1,411
Units redeemed during the period		(1,601	)		(2,921	)		(2,473	)		(2,371	)
Net units issued (redeemed) during period		696			(715	)		(460	)		(960	)
	LifePoints Equity Growth Strategy Division						Credit Suisse Trust Commodity Return Strategy Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	360		$	246		$	1,757		$	(69	)
Net realized gains (losses)		391			53			(1,637	)		(734	)
Net change in unrealized appreciation/(depreciation)		1,127			678			106			2,669
Net increase (decrease) in net assets resulting from operations		1,878			977			226			1,866
Policy Transactions:
Policy owners’ net payments		498			106			1,149			1,168
Policy loans, surrenders and death benefits		(321	)		(87	)		(881	)		(1,014	)
Mortality and other (net)		(204	)		(178	)		(339	)		(335	)
Transfers from other divisions or sponsor		1,099			1,762			8,957			8,015
Transfers to other divisions or sponsor		(443	)		(581	)		(6,968	)		(5,604	)
Net increase (decrease) in net assets resulting from contract transactions		629			1,022			1,918			2,230
Net increase (decrease) in net assets		2,507			1,999			2,144			4,096
Net Assets:
Beginning of period		10,823			8,824			18,978			14,882
End of period	$	13,330		$	10,823		$	21,122		$	18,978
Units issued during the period		762			1,865			2,110			2,278
Units redeemed during the period		(705	)		(1,015	)		(1,759	)		(1,843	)
Net units issued (redeemed) during period		57			850			351			435

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

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2017

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” or “sponsor”) 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 Fund, Neuberger Berman Advisers Management Trust, 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 Portfolios should be read in conjunction with the financial statements 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 policyowners existing at that date will continue to be recorded by the Account.

On May 1, 2017, the following Divisions were renamed.

Prior Name

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

New Name

U.S. Strategic Equity Division

U.S. Small Cap Equity Division

International Developed Markets Division

Strategic Bond Division

Global Real Estate Securities Division

LifePoints Moderate Strategy Division

LifePoints Balanced Strategy Division

LifePoints Growth Strategy Division

LifePoints Equity Growth Strategy Division

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, 2017, 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 fair value is determined by unadjusted quoted prices in active markets for identical securities or derivatives. Level 2 securities fair value is determined by other significant observable inputs (including quoted prices for similar securities). Level 3 fair value is determined by significant unobservable inputs (including the Account’s own assumptions in determining fair value). There were no transfers between levels during the year. 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.

23

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2017

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. Due to Participants – Upon notification of death of the policyowner, a liability is recorded and is included in Due to Participants in the accompanying financial statements. This liability is identified as Level 1 for valuation purposes under the Fair Value Measurement Topic of the FASB Accounting Standards Codification.

E. 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.

F. 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, 2017 were as follows: (in thousands)

Division	Purchases		Sales
Growth Stock	$	36,899	$	31,147
Focused Appreciation		21,369		19,179
Large Cap Core Stock		15,044		19,396
Large Cap Blend		3,236		1,626
Index 500 Stock		92,946		91,668
Large Company Value		3,796		3,688
Domestic Equity		16,623		21,183
Equity Income		16,636		13,699
Mid Cap Growth Stock		18,103		37,619
Index 400 Stock		38,924		29,853
Mid Cap Value		10,700		11,488
Small Cap Growth Stock		14,576		24,105
Index 600 Stock		11,483		5,801
Small Cap Value		22,543		21,194
International Growth		13,360		10,599
Research International Core		9,853		4,810
International Equity		42,666		44,122
Emerging Markets Equity		16,806		4,685
Government Money Market		48,183		65,046

24

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2017

Division	Purchases		Sales
Short-Term Bond		8,661		6,583
Select Bond		30,296		27,819
Long-Term U.S. Government Bond		4,259		4,175
Inflation Protection		3,167		1,916
High Yield Bond		14,619		10,401
Multi-Sector Bond		10,887		4,942
Balanced		35,791		27,734
Asset Allocation		8,584		3,510
Fidelity VIP Mid Cap		18,052		17,210
Fidelity VIP Contrafund		7,683		6,602
Neuberger Berman AMT Socially Responsive		804		1,054
U.S. Strategic Equity		31,061		22,875
U.S. Small Cap Equity		12,499		10,118
International Developed Markets		18,205		13,121
Strategic Bond		10,379		12,619
Global Real Estate Securities	$	17,505	$	16,799
LifePoints Moderate Strategy		1,741		297
LifePoints Balanced Strategy		5,159		2,323
LifePoints Growth Strategy		4,149		3,426
LifePoints Equity Growth Strategy		2,136		914
Credit Suisse Trust Commodity Return Strategy		7,456		3,789

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 other in the accompanying financial statements.

A deduction for the mortality and expense risks for Variable Executive Life policies 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 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.

25

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2017

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.

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.

5. Subsequent Events

Effective May 1, 2018, the Neuberger Berman AMT Socially Responsive Division will be renamed to AMT Sustainable Equity Division.

26

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2017

6. Financial Highlights

	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 12/31/17		75,993	$	5.259578	to	$	73.551913	$	455,218		0.86	%		0.00% to 0.55%		23.59	%	to	24.27	%
Year Ended 12/31/16		78,732		4.251519	to		59.189518		381,579		0.87			0.00 to 0.55		1.91		to	2.47
Year Ended 12/31/15		82,582		4.167790	to		57.763945		392,702		0.74			0.00 to 0.55		5.43		to	6.01
Year Ended 12/31/14		85,738		3.949121	to		54.488126		386,925		0.59			0.00 to 0.55		8.43		to	9.02
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
Focused Appreciation
Year Ended 12/31/17		32,539	$	4.983314	to	$	53.438372	$	191,961		0.72	%		0.00% to 0.55%		32.89	%	to	33.62	%
Year Ended 12/31/16		33,700		3.746116	to		39.992151		146,387		0.24			0.00 to 0.55		5.30		to	5.87
Year Ended 12/31/15		34,234		3.554167	to		37.773111		138,660		0.00			0.00 to 0.55		13.02		to	13.64
Year Ended 12/31/14		34,391		3.141534	to		33.238141		122,795		0.02			0.00 to 0.55		8.84		to	9.43
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
Large Cap Core Stock
Year Ended 12/31/17		63,131	$	3.831001	to	$	53.073917	$	282,834		1.76	%		0.00% to 0.55%		24.19	%	to	24.87	%
Year Ended 12/31/16		64,732		3.081784	to		42.503832		234,433		2.16			0.00 to 0.55		6.98		to	7.57
Year Ended 12/31/15		67,126		2.877770	to		39.512372		228,494		2.14			0.00 to 0.55		(3.59	)	to	(3.06	)
Year Ended 12/31/14		69,294		2.981972	to		40.759702		244,043		1.49			0.00 to 0.55		7.97		to	8.56
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
Large Cap Blend
Year Ended 12/31/17		5,549	$	2.060897	to	$	17.855817	$	12,473		0.92	%		0.00% to 0.55%		18.38	%	to	19.02	%
Year Ended 12/31/16		5,069		1.739254	to		15.001832		9,582		1.06			0.00 to 0.55		13.36		to	13.99
Year Ended 12/31/15		5,414		1.532727	to		13.161232		8,934		0.93			0.00 to 0.55		(2.95	)	to	(2.42	)
Year Ended 12/31/14		4,680		1.577743	to		13.487127		8,192		0.04			0.00 to 0.55		11.96		to	12.58
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
Index 500 Stock
Year Ended 12/31/17		191,990	$	6.124794	to	$	142.286114	$	1,445,616		1.76	%		0.00% to 0.55%		20.85	%	to	21.52	%
Year Ended 12/31/16		196,058		5.062909	to		117.092375		1,222,210		1.85			0.00 to 0.55		11.12		to	11.73
Year Ended 12/31/15		198,438		4.551560	to		104.794845		1,113,211		1.70			0.00 to 0.55		0.62		to	1.17
Year Ended 12/31/14		200,831		4.519180	to		103.583087		1,122,395		1.60			0.00 to 0.55		12.84		to	13.46
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
Large Company Value
Year Ended 12/31/17		6,091	$	2.004205	to	$	17.086312	$	13,497		2.00	%		0.00% to 0.55%		10.49	%	to	11.10	%
Year Ended 12/31/16		6,290		1.812084	to		15.379433		12,809		1.71			0.00 to 0.55		14.73		to	15.36
Year Ended 12/31/15		5,877		1.577867	to		13.331635		10,525		1.62			0.00 to 0.55		(4.37	)	to	(3.85	)
Year Ended 12/31/14		6,169		1.648404	to		13.865219		11,466		0.00			0.00 to 0.55		12.41		to	13.03
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
Domestic Equity
Year Ended 12/31/17		67,362	$	2.768059	to	$	29.996128	$	217,712		1.62	%		0.00% to 0.55%		13.16	%	to	13.78	%
Year Ended 12/31/16		71,274		2.443831	to		26.364364		203,723		1.86			0.00 to 0.55		14.35		to	14.98
Year Ended 12/31/15		73,953		2.135000	to		22.929503		183,664		1.82			0.00 to 0.55		(0.64	)	to	(0.09	)
Year Ended 12/31/14		76,044		2.146602	to		22.950784		190,774		1.70			0.00 to 0.55		13.25		to	13.87
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
Equity Income
Year Ended 12/31/17		35,456	$	3.287847	to	$	35.257091	$	135,832		2.20	%		0.00% to 0.55%		15.61	%	to	16.24	%
Year Ended 12/31/16		37,103		2.841098	to		30.330455		122,350		2.03			0.00 to 0.55		18.52		to	19.17
Year Ended 12/31/15		38,972		2.394831	to		25.451821		109,208		1.69			0.00 to 0.55		(7.25	)	to	(6.74	)
Year Ended 12/31/14		40,696		2.579506	to		27.291728		123,149		1.23			0.00 to 0.55		6.84		to	7.43
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

(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.

27

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2017

	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 12/31/17		94,455	$	4.446849	to	$	125.441587	$	501,695		0.25	%		0.00% to 0.55%		19.63	%	to	20.29	%
Year Ended 12/31/16		97,909		3.713373	to		104.283373		434,672		0.19			0.00 to 0.55		0.28		to	0.83
Year Ended 12/31/15		101,666		3.699378	to		103.425002		450,936		0.04			0.00 to 0.55		0.16		to	0.71
Year Ended 12/31/14		104,691		3.689747	to		102.693582		465,306		0.36			0.00 to 0.55		7.90		to	8.49
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
Index 400 Stock
Year Ended 12/31/17		62,321	$	5.132177	to	$	59.411237	$	358,143		1.07	%		0.00% to 0.55%		15.33	%	to	15.96	%
Year Ended 12/31/16		64,605		4.445732	to		51.235085		321,909		1.15			0.00 to 0.55		19.72		to	20.38
Year Ended 12/31/15		66,515		3.709654	to		42.560713		275,417		1.08			0.00 to 0.55		(2.92	)	to	(2.38	)
Year Ended 12/31/14		68,204		3.817251	to		43.598907		290,596		0.98			0.00 to 0.55		8.82		to	9.42
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
Mid Cap Value
Year Ended 12/31/17		16,920	$	4.080949	to	$	43.762109	$	78,440		1.44	%		0.00% to 0.55%		11.20	%	to	11.81	%
Year Ended 12/31/16		17,981		3.666285	to		39.139970		74,486		1.68			0.00 to 0.55		22.56		to	23.23
Year Ended 12/31/15		17,077		2.988550	to		31.761925		57,463		1.64			0.00 to 0.55		(1.87	)	to	(1.33	)
Year Ended 12/31/14		17,454		3.042400	to		32.189353		60,350		0.99			0.00 to 0.55		16.05		to	16.69
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
Small Cap Growth Stock
Year Ended 12/31/17		56,874	$	4.909491	to	$	65.129570	$	305,351		0.11	%		0.00% to 0.55%		20.94	%	to	21.61	%
Year Ended 12/31/16		59,134		4.055279	to		53.557262		262,833		0.23			0.00 to 0.55		11.64		to	12.25
Year Ended 12/31/15		61,830		3.628992	to		47.712811		246,246		0.11			0.00 to 0.55		(0.23	)	to	0.32
Year Ended 12/31/14		63,835		3.633783	to		47.561777		255,403		0.00			0.00 to 0.55		8.06		to	8.66
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
Index 600 Stock
Year Ended 12/31/17		15,104	$	2.178475	to	$	24.532713	$	38,659		1.86	%		0.00% to 0.55%		12.31	%	to	12.93	%
Year Ended 12/31/16		13,434		1.937744	to		21.724279		30,548		0.58			0.00 to 0.55		25.43		to	26.12
Year Ended 12/31/15		11,625		1.543293	to		17.224563		20,831		0.00			0.00 to 0.55		(2.88	)	to	(2.35	)
Year Ended 12/31/14		10,776		1.587514	to		17.638780		20,248		1.53			0.00 to 0.55		4.76		to	5.34
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
Small Cap Value
Year Ended 12/31/17		42,358	$	4.400993	to	$	47.690780	$	211,637		0.77	%		0.00% to 0.55%		11.04	%	to	11.65	%
Year Ended 12/31/16		44,467		3.959369	to		42.713658		199,932		0.93			0.00 to 0.55		31.67		to	32.39
Year Ended 12/31/15		45,429		3.004079	to		32.262868		156,881		0.68			0.00 to 0.55		(5.97	)	to	(5.45	)
Year Ended 12/31/14		47,518		3.191481	to		34.121874		174,553		0.36			0.00 to 0.55		(0.33	)	to	0.22
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
International Growth
Year Ended 12/31/17		43,701	$	2.232113	to	$	24.188049	$	110,000		1.30	%		0.00% to 0.55%		29.32	%	to	30.03	%
Year Ended 12/31/16		42,651		1.724317	to		18.601991		83,569		1.15			0.00 to 0.55		(3.93	)	to	(3.41	)
Year Ended 12/31/15		43,844		1.793138	to		19.257803		88,907		1.68			0.00 to 0.55		(2.26	)	to	(1.73	)
Year Ended 12/31/14		43,639		1.832844	to		19.596007		90,803		1.30			0.00 to 0.55		(5.04	)	to	(4.52	)
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
Research International Core
Year Ended 12/31/17		25,545	$	1.325886	to	$	12.802534	$	39,047		1.68	%		0.00% to 0.55%		27.51	%	to	28.21	%
Year Ended 12/31/16		21,617		1.038788	to		9.985604		26,555		1.77			0.00 to 0.55		(1.66	)	to	(1.12	)
Year Ended 12/31/15		20,383		1.055308	to		10.098885		24,504		2.05			0.00 to 0.55		(1.65	)	to	(1.11	)
Year Ended 12/31/14		16,529		1.071981	to		10.212438		20,860		1.45			0.00 to 0.55		(7.22	)	to	(6.71	)
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

(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.

28

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2017

	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)
International Equity
Year Ended 12/31/17		132,108	$	3.920448	to	$	6.094491	$	598,133		2.35	%		0.00% to 0.55%		21.63	%	to	22.30	%
Year Ended 12/31/16		134,698		3.220087	to		4.983406		502,291		2.14			0.00 to 0.55		2.33		to	2.89
Year Ended 12/31/15		137,889		3.143590	to		4.843231		502,646		2.95			0.00 to 0.55		(2.75	)	to	(2.21	)
Year Ended 12/31/14		139,819		3.229216	to		4.952849		525,118		1.91			0.00 to 0.55		(9.30	)	to	(8.80	)
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
Emerging Markets Equity
Year Ended 12/31/17		53,406	$	1.025080	to	$	12.370178	$	62,871		0.92	%		0.00% to 0.55%		27.14	%	to	27.84	%
Year Ended 12/31/16		42,450		0.805449	to		9.676365		39,231		0.72			0.00 to 0.55		8.47		to	9.06
Year Ended 12/31/15		39,847		0.741823	to		8.872116		34,756		0.88			0.00 to 0.55		(12.72	)	to	(12.24	)
Year Ended 12/31/14		34,924		0.849119	to		10.109813		34,843		0.63			0.00 to 0.55		(6.76	)	to	(6.25	)
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	)
Government Money Market
Year Ended 12/31/17		77,104	$	1.529296	to	$	41.875417	$	147,850		0.59	%		0.00% to 0.55%		0.05	%	to	0.60	%
Year Ended 12/31/16		83,720		1.527011	to		41.625993		164,799		0.12			0.00 to 0.55		(0.42	)	to	0.13
Year Ended 12/31/15		79,683		1.531914	to		41.572750		171,148		0.01			0.00 to 0.55		(0.54	)	to	0.01
Year Ended 12/31/14		79,806		1.538686	to		41.568533		165,824		0.07			0.00 to 0.55		(0.48	)	to	0.07
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
Short-Term Bond
Year Ended 12/31/17		16,212	$	1.033965	to	$	12.646732	$	22,488		1.28	%		0.00% to 0.55%		0.78	%	to	1.33	%
Year Ended 12/31/16		16,506		1.025038	to		12.481062		20,405		1.19			0.00 to 0.55		1.12		to	1.67
Year Ended 12/31/15		12,538		1.012734	to		12.275717		15,742		0.71			0.00 to 0.55		0.17		to	0.72
Year Ended 12/31/14		11,155		1.010036	to		12.188479		13,392		0.60			0.00 to 0.55		0.00 (2	)	to	0.38
Year Ended 12/31/13		9,076		1.010673	to		12.142453		10,582		0.17			0.00 to 0.55		0.00 (2	)	to	0.55
Select Bond
Year Ended 12/31/17		70,939	$	2.828365	to	$	226.897252	$	251,754		2.07	%		0.00% to 0.55%		3.02	%	to	3.58	%
Year Ended 12/31/16		70,949		2.742774	to		219.047810		249,118		1.94			0.00 to 0.55		2.49		to	3.06
Year Ended 12/31/15		70,587		2.673382	to		212.549665		243,197		1.50			0.00 to 0.55		(0.02	)	to	0.53
Year Ended 12/31/14		70,799		2.671248	to		211.428447		248,615		2.02			0.00 to 0.55		4.99		to	5.56
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	)
Long-Term U.S. Government Bond
Year Ended 12/31/17		6,284	$	1.459300	to	$	20.685508	$	9,880		1.86	%		0.00% to 0.55%		7.69	%	to	8.28	%
Year Ended 12/31/16		6,543		1.353810	to		19.104481		9,594		1.87			0.00 to 0.55		0.54		to	1.09
Year Ended 12/31/15		5,671		1.345254	to		18.898765		8,101		2.11			0.00 to 0.55		(2.01	)	to	(1.47	)
Year Ended 12/31/14		4,722		1.371509	to		19.181310		6,944		2.01			0.00 to 0.55		23.05		to	23.73
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	)
Inflation Protection
Year Ended 12/31/17		7,799	$	1.114216	to	$	14.738894	$	10,493		0.69	%		0.00% to 0.55%		3.01	%	to	3.58	%
Year Ended 12/31/16		6,910		1.080563	to		14.229840		8,987		1.23			0.00 to 0.55		4.11		to	4.68
Year Ended 12/31/15		6,372		1.036853	to		13.593038		7,975		2.34			0.00 to 0.55		(2.74	)	to	(2.20	)
Year Ended 12/31/14		6,336		1.065002	to		13.899486		8,559		0.52			0.00 to 0.55		2.57		to	3.14
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	)
High Yield Bond
Year Ended 12/31/17		25,336	$	3.976385	to	$	53.128855	$	116,367		5.44	%		0.00% to 0.55%		6.30	%	to	6.88	%
Year Ended 12/31/16		25,741		3.737039	to		49.707921		110,842		5.33			0.00 to 0.55		13.97		to	14.60
Year Ended 12/31/15		26,563		3.275752	to		43.377037		100,914		4.53			0.00 to 0.55		(1.90	)	to	(1.36	)
Year Ended 12/31/14		27,230		3.335950	to		43.976216		106,154		5.04			0.00 to 0.55		0.62		to	1.18
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

(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.

(2) Ratio is less than 0.005%

29

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2017

	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)
Multi-Sector Bond
Year Ended 12/31/17		26,759	$	1.358433	to	$	18.780164	$	40,381		3.85	%		0.00% to 0.55%		7.79	%	to	8.38	%
Year Ended 12/31/16		23,443		1.258995	to		17.327635		32,977		4.53			0.00 to 0.55		10.48		to	11.09
Year Ended 12/31/15		21,624		1.138400	to		15.597729		27,546		5.58			0.00 to 0.55		(2.76	)	to	(2.22	)
Year Ended 12/31/14		20,081		1.169486	to		15.951947		26,344		2.65			0.00 to 0.55		2.68		to	3.25
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	)
Balanced
Year Ended 12/31/17		47,261	$	3.916267	to	$	216.761163	$	375,073		2.19	%		0.00% to 0.55%		11.37	%	to	11.98	%
Year Ended 12/31/16		48,762		3.512832	to		193.563662		347,403		2.26			0.00 to 0.55		6.00		to	6.58
Year Ended 12/31/15		53,304		3.310708	to		181.609174		345,035		1.97			0.00 to 0.55		(0.67	)	to	(0.12	)
Year Ended 12/31/14		54,744		3.329658	to		181.830315		360,234		2.31			0.00 to 0.55		4.99		to	5.56
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
Asset Allocation
Year Ended 12/31/17		18,186	$	2.331046	to	$	25.259678	$	53,600		2.07	%		0.00% to 0.55%		14.25	%	to	14.87	%
Year Ended 12/31/16		17,637		2.038314	to		21.988973		44,895		2.37			0.00 to 0.55		7.20		to	7.79
Year Ended 12/31/15		18,489		1.899554	to		20.400265		44,291		1.92			0.00 to 0.55		(0.97	)	to	(0.43	)
Year Ended 12/31/14		19,933		1.916252	to		20.487411		47,339		2.15			0.00 to 0.55		4.57		to	5.15
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
Fidelity VIP Mid Cap
Year Ended 12/31/17		31,890	$	5.301232	to	$	56.847028	$	195,568		0.49	%		0.00% to 0.55%		19.88	%	to	20.54	%
Year Ended 12/31/16		33,080		4.417776	to		47.161926		169,985		0.32			0.00 to 0.55		11.31		to	11.92
Year Ended 12/31/15		34,908		3.964922	to		42.137819		162,700		0.25			0.00 to 0.55		(2.17	)	to	(1.63	)
Year Ended 12/31/14		36,665		4.048702	to		42.835362		175,314		0.02			0.00 to 0.55		5.45		to	6.03
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
Fidelity VIP Contrafund
Year Ended 12/31/17		19,612	$	2.008049	to	$	22.036922	$	44,858		0.77	%		0.00% to 0.55%		20.92	%	to	21.59	%
Year Ended 12/31/16		20,138		1.658952	to		18.124509		38,211		0.62			0.00 to 0.55		7.14		to	7.73
Year Ended 12/31/15		22,441		1.546836	to		16.824006		39,557		0.82			0.00 to 0.55		(0.13	)	to	0.42
Year Ended 12/31/14		21,021		1.547371	to		16.754369		37,757		0.78			0.00 to 0.55		11.04		to	11.65
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
Neuberger Berman AMT Socially Responsive
Year Ended 12/31/17		2,092	$	1.933853	to	$	21.076980	$	5,287		0.51	%		0.00% to 0.55%		17.78	%	to	18.43	%
Year Ended 12/31/16		2,390		1.640254	to		17.797220		4,887		0.71			0.00 to 0.55		9.26		to	9.86
Year Ended 12/31/15		2,413		1.499733	to		16.199640		4,514		0.57			0.00 to 0.55		(1.01	)	to	(0.46	)
Year Ended 12/31/14		2,395		1.513495	to		16.275087		4,590		0.37			0.00 to 0.55		9.78		to	10.38
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
U.S. Strategic Equity
Year Ended 12/31/17		92,817	$	2.161152	to	$	24.418364	$	230,509		1.02	%		0.00% to 0.55%		20.14	%	to	20.80	%
Year Ended 12/31/16		99,289		1.797106	to		20.214494		204,986		1.04			0.00 to 0.55		10.03		to	10.64
Year Ended 12/31/15		108,402		1.631656	to		18.271298		203,098		0.82			0.00 to 0.55		0.55		to	1.11
Year Ended 12/31/14		114,307		1.621079	to		18.071559		213,362		1.16			0.00 to 0.55		11.09		to	11.70
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
U.S. Small Cap Equity
Year Ended 12/31/17		32,697	$	2.978626	to	$	34.518205	$	110,459		0.18	%		0.00% to 0.55%		14.85	%	to	15.48	%
Year Ended 12/31/16		34,090		2.590944	to		29.891437		100,382		0.83			0.00 to 0.55		18.01		to	18.66
Year Ended 12/31/15		36,650		2.193357	to		25.191084		91,739		0.67			0.00 to 0.55		(7.69	)	to	(7.19	)
Year Ended 12/31/14		38,597		2.373801	to		27.141282		104,705		0.25			0.00 to 0.55		1.00		to	1.56
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

(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.

30

Northwestern Mutual Variable Life Account

Notes to Financial Statements

December 31, 2017

	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)
International Developed Markets
Year Ended 12/31/17		59,631	$	2.035246	to	$	22.466466	$	141,472		2.65	%		0.00% to 0.55%		24.29	%	to	24.98	%
Year Ended 12/31/16		60,682		1.635824	to		17.976751		116,151		3.23			0.00 to 0.55		1.80		to	2.36
Year Ended 12/31/15		62,803		1.605290	to		17.562157		117,670		1.15			0.00 to 0.55		(1.85	)	to	(1.31	)
Year Ended 12/31/14		63,654		1.633987	to		17.795979		121,476		1.95			0.00 to 0.55		(4.97	)	to	(4.45	)
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
Strategic Bond
Year Ended 12/31/17		29,030	$	2.300337	to	$	24.895915	$	86,180		1.35	%		0.00% to 0.55%		3.30	%	to	3.86	%
Year Ended 12/31/16		29,943		2.224732	to		23.970161		86,313		1.59			0.00 to 0.55		2.54		to	3.10
Year Ended 12/31/15		29,943		2.167486	to		23.248775		85,576		2.39			0.00 to 0.55		(0.69	)	to	(0.14	)
Year Ended 12/31/14		30,112		2.180310	to		23.281628		86,877		1.55			0.00 to 0.55		4.88		to	5.45
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	)
Global Real Estate Securities
Year Ended 12/31/17		33,345	$	4.771257	to	$	51.568102	$	179,095		3.63	%		0.00% to 0.55%		11.19	%	to	11.80	%
Year Ended 12/31/16		34,924		4.286703	to		46.124107		168,647		4.49			0.00 to 0.55		2.46		to	3.02
Year Ended 12/31/15		36,412		4.179747	to		44.771967		172,160		1.64			0.00 to 0.55		(0.30	)	to	0.25
Year Ended 12/31/14		36,715		4.188148	to		44.660949		175,388		3.26			0.00 to 0.55		14.12		to	14.75
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
LifePoints Moderate Strategy
Year Ended 12/31/17		4,399	$	1.353996	to	$	16.557145	$	6,960		2.27	%		0.00% to 0.55%		9.29	%	to	9.88	%
Year Ended 12/31/16		3,497		1.237730	to		15.067752		5,175		3.65			0.00 to 0.55		7.16		to	7.75
Year Ended 12/31/15		2,175		1.153913	to		13.984420		3,256		2.55			0.00 to 0.55		(2.24	)	to	(1.71	)
Year Ended 12/31/14		1,929		1.179226	to		14.227181		3,327		3.33			0.00 to 0.55		4.28		to	4.85
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
LifePoints Balanced Strategy
Year Ended 12/31/17		11,492	$	1.439016	to	$	16.545882	$	22,495		2.36	%		0.00% to 0.55%		11.39	%	to	12.00	%
Year Ended 12/31/16		10,796		1.290626	to		14.773443		18,770		3.30			0.00 to 0.55		8.46		to	9.05
Year Ended 12/31/15		11,511		1.188804	to		13.546956		17,506		2.20			0.00 to 0.55		(2.84	)	to	(2.30	)
Year Ended 12/31/14		11,655		1.222287	to		13.866173		17,117		2.98			0.00 to 0.55		4.04		to	4.61
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
LifePoints Growth Strategy
Year Ended 12/31/17		11,847	$	1.495208	to	$	16.029490	$	22,139		3.19	%		0.00% to 0.55%		15.02	%	to	15.65	%
Year Ended 12/31/16		12,307		1.298639	to		13.860030		19,559		2.92			0.00 to 0.55		9.13		to	9.73
Year Ended 12/31/15		13,267		1.188862	to		12.631574		19,036		1.81			0.00 to 0.55		(3.84	)	to	(3.31	)
Year Ended 12/31/14		13,525		1.235139	to		13.064429		20,126		3.03			0.00 to 0.55		3.19		to	3.76
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
LifePoints Equity Growth Strategy
Year Ended 12/31/17		6,907	$	1.554985	to	$	15.218716	$	13,330		3.38	%		0.00% to 0.55%		16.91	%	to	17.55	%
Year Ended 12/31/16		6,850		1.328754	to		12.946453		10,823		2.95			0.00 to 0.55		10.24		to	10.85
Year Ended 12/31/15		6,000		1.204105	to		11.679451		8,824		1.53			0.00 to 0.55		(4.40	)	to	(3.87	)
Year Ended 12/31/14		5,836		1.258221	to		12.149681		8,762		3.29			0.00 to 0.55		2.92		to	3.48
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
Credit Suisse Trust Commodity Return Strategy
Year Ended 12/31/17		3,845	$	5.017461	to	$	5.372638	$	21,122		9.04	%		0.00% to 0.55%		0.96	%	to	1.52	%
Year Ended 12/31/16		3,494		4.942479	to		5.316102		18,978		0.00			0.00 to 0.55		11.41		to	12.02
Year Ended 12/31/15		3,059		4.412123	to		4.767003		14,882		0.00			0.00 to 0.55		(25.44	)	to	(25.03	)
Year Ended 12/31/14		2,448		5.885213	to		6.387246		15,934		0.00			0.00 to 0.55		(17.39	)	to	(16.94	)
Period Ended 12/31/13 (3)		1,964		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) Division commenced operations on November 15, 2013.

31

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of The Northwestern Mutual Life Insurance Company and

Contract Owners of Northwestern Mutual Variable Life Account

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities of the 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, Government 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, U.S. Strategic Equity Division, U.S. Small Cap Equity Division, International Developed Markets Division, Strategic Bond Division, Global Real Estate Securities Division, LifePoints Moderate Strategy Division, LifePoints Balanced Strategy Division, LifePoints Growth Strategy Division, LifePoints Equity Growth Strategy Division and Credit Suisse Trust Commodity Return Strategy Division (constituting the Northwestern Mutual Variable Life Account, hereafter collectively referred to as the “Divisions”) as of December 31, 2017, the related statements of operations for the year ended December 31, 2017, and the statements of changes in net assets for each of the two years in the period ended December 31, 2017, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Divisions in the Northwestern Mutual Variable Life Account as of December 31, 2017, the results of each of their operations for the year then ended, and the changes in each of their net assets for each of the two years in the period ended December 31, 2017 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of The Northwestern Mutual Life Insurance Company’s management. Our responsibility is to express an opinion on the financial statements of each of the Divisions in the Northwestern Mutual Variable Life Account based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to each of the Divisions in the Northwestern Mutual Variable Life Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant

32

estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the underlying registered investment companies. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Milwaukee, Wisconsin

April 26, 2018

We have served as the auditor of one or more of the Divisions in Northwestern Mutual Variable Life Account since 1984.

33

Annual Report December 31, 2017

Northwestern Mutual Variable Life Account II

Financial Statements

Northwestern Mutual Variable Life Account II

Financial Statements

Table of Contents

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 Registered Public Accounting Firm	31

Northwestern Mutual Variable Life Account II

Statements of Assets and Liabilities

December 31, 2017

(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 fair value (1)
Northwestern Mutual Series Fund, Inc	$	8,923	$	14,968	$	6,275	$	2,235	$	60,191
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		3		-		-		3
Total Assets		8,923		14,971		6,275		2,235		60,194
Liabilities:
Due to Northwestern Mutual Life Insurance Company		7		-		1		-		-
Due to Participants		-		-		-		-		-
Total Liabilities		7		-		1		-		-
Total Net Assets	$	8,916	$	14,971	$	6,274	$	2,235	$	60,194
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity	$	4,041	$	12,933	$	3,135	$	2,049	$	44,901
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		4,690		1,086		2,635		8		10,416
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		185		952		504		178		4,877
Total Net Assets	$	8,916	$	14,971	$	6,274	$	2,235	$	60,194
(1)     Investments, at cost	$	8,144	$	13,230	$	5,287	$	2,021	$	49,976
Mutual Fund Shares Held		2,941		5,521		3,206		1,855		12,216
(2)     Accumulation Unit Value	$	73.551913	$	53.438372	$	53.073917	$	17.855817	$	142.286114
Units Outstanding		55		242		59		115		316
(3)     Accumulation Unit Value	$	73.551913	$	53.438372	$	53.073917	$	17.855817	$	142.286114
Units Outstanding		64		20		50		-		73
(4)     Accumulation Unit Value	$	73.551913	$	53.438372	$	53.073917	$	17.855817	$	142.286114
Units Outstanding		3		18		10		10		34

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, 2017

(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 fair value (1)
Northwestern Mutual Series Fund, Inc	$	1,092	$	12,461	$	11,036	$	5,157	$	17,676
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		3		1		-		1		19
Total Assets		1,095		12,462		11,036		5,158		17,695
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		-
Due to Participants		-		-		-		-		-
Total Liabilities		-		-		-		-		-
Total Net Assets	$	1,095	$	12,462	$	11,036	$	5,158	$	17,695
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity	$	715	$	8,891	$	9,412	$	2,929	$	14,525
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		350		2,863		971		2,045		2,439
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		30		708		653		184		731
Total Net Assets	$	1,095	$	12,462	$	11,036	$	5,158	$	17,695
(1)     Investments, at cost	$	1,057	$	10,437	$	9,872	$	4,671	$	15,786
Mutual Fund Shares Held		1,029		7,430		5,918		1,492		8,381
(2)     Accumulation Unit Value	$	17.086312	$	29.996128	$	35.257091	$	125.441587	$	59.411237
Units Outstanding		42		296		267		23		244
(3)     Accumulation Unit Value	$	17.086312	$	29.996128	$	35.257091	$	125.441587	$	59.411237
Units Outstanding		20		95		28		16		41
(4)     Accumulation Unit Value	$	17.086312	$	29.996128	$	35.257091	$	125.441587	$	59.411237
Units Outstanding		2		24		19		1		12

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, 2017

(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 fair value (1)
Northwestern Mutual Series Fund, Inc	$	8,415	$	8,044	$	8,003	$	7,864	$	14,606
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		14		2		9		14		2
Total Assets		8,429		8,046		8,012		7,878		14,608
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		-
Due to Participants		-		-		-		-		-
Total Liabilities		-		-		-		-		-
Total Net Assets	$	8,429	$	8,046	$	8,012	$	7,878	$	14,608
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity	$	5,751	$	5,324	$	5,445	$	6,897	$	13,306
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		1,949		2,274		2,351		617		471
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		729		448		216		364		831
Total Net Assets	$	8,429	$	8,046	$	8,012	$	7,878	$	14,608
(1)     Investments, at cost	$	7,767	$	6,604	$	6,868	$	7,031	$	12,324
Mutual Fund Shares Held		4,591		2,797		5,519		3,103		9,168
(2)     Accumulation Unit Value	$	43.762109	$	65.129570	$	24.532713	$	47.690780	$	24.188049
Units Outstanding		131		82		222		144		550
(3)     Accumulation Unit Value	$	43.762109	$	65.129570	$	24.532713	$	47.690780	$	24.188049
Units Outstanding		45		35		96		13		19
(4)     Accumulation Unit Value	$	43.762109	$	65.129570	$	24.532713	$	47.690780	$	24.188049
Units Outstanding		17		7		9		8		34

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, 2017

(in thousands, except accumulation unit values)

		Research International Core Division		International Equity Division		Emerging Markets Equity Division		Government Money Market Division		Short-Term Bond Division
Assets:
Investments, at fair value (1)
Northwestern Mutual Series Fund, Inc	$	10,233	$	31,031	$	15,898	$	13,176	$	1,419
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		4		-		-		-
Total Assets		10,233		31,035		15,898		13,176		1,419
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		47		-
Due to Participants		-		-		-		-		-
Total Liabilities		-		-		-		47		-
Total Net Assets	$	10,233	$	31,035	$	15,898	$	13,129	$	1,419
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity	$	8,800	$	24,883	$	14,873	$	7,876	$	1,355
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		995		4,860		181		3,970		57
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		438		1,292		844		1,283		7
Total Net Assets	$	10,233	$	31,035	$	15,898	$	13,129	$	1,419
(1)     Investments, at cost	$	8,953	$	28,455	$	13,481	$	13,176	$	1,423
Mutual Fund Shares Held		9,858		16,204		14,387		13,176		1,373
(2)     Accumulation Unit Value	$	12.802534	$	6.094491	$	12.370178	$	41.875417	$	12.646732
Units Outstanding		687		4,083		1,202		188		107
(3)     Accumulation Unit Value	$	12.802534	$	6.094491	$	12.370178	$	41.875417	$	12.646732
Units Outstanding		78		797		15		95		4
(4)     Accumulation Unit Value	$	12.802534	$	6.094491	$	12.370178	$	41.875417	$	12.646732
Units Outstanding		34		212		68		31		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, 2017

(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 fair value (1)
Northwestern Mutual Series Fund, Inc	$	21,252	$	264	$	2,931	$	11,181	$	10,156
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		40		2		-		11		20
Total Assets		21,292		266		2,931		11,192		10,176
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		-
Due to Participants		-		-		-		-		-
Total Liabilities		-		-		-		-		-
Total Net Assets	$	21,292	$	266	$	2,931	$	11,192	$	10,176
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity	$	15,116	$	223	$	2,323	$	8,931	$	9,526
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		5,682		39		514		2,102		401
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		494		4		94		159		249
Total Net Assets	$	21,292	$	266	$	2,931	$	11,192	$	10,176
(1)     Investments, at cost	$	21,456	$	262	$	2,884	$	11,038	$	9,940
Mutual Fund Shares Held		16,907		245		2,631		14,988		9,283
(2)     Accumulation Unit Value	$	226.897252	$	20.685508	$	14.738894	$	53.128855	$	18.780164
Units Outstanding		66		11		158		168		507
(3)     Accumulation Unit Value	$	226.897252	$	20.685508	$	14.738894	$	53.128855	$	18.780164
Units Outstanding		25		2		35		40		21
(4)     Accumulation Unit Value	$	226.897252	$	20.685508	$	14.738894	$	53.128855	$	18.780164
Units Outstanding		2		-		6		3		13

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, 2017

(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 fair value (1)
Northwestern Mutual Series Fund, Inc	$	5,889	$	778	$	-	$	-	$	-
Fidelity Variable Insurance Products Fund		-		-		13,682		8,779		-
Neuberger Berman Advisers Management Trust		-		-		-		-		5,683
Russell Investment Funds		-		-		-		-		-
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		-		-		2		9		8
Total Assets		5,889		778		13,684		8,788		5,691
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		-
Due to Participants		-		-		-		-		-
Total Liabilities		-		-		-		-		-
Total Net Assets	$	5,889	$	778	$	13,684	$	8,788	$	5,691
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity	$	1,960	$	425	$	9,849	$	7,622	$	5,161
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		3,384		252		3,014		163		131
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		545		101		821		1,003		399
Total Net Assets	$	5,889	$	778	$	13,684	$	8,788	$	5,691
(1)     Investments, at cost	$	5,721	$	738	$	12,002	$	7,878	$	5,108
Mutual Fund Shares Held		3,993		645		362		237		222
(2)     Accumulation Unit Value	$	216.761163	$	25.259678	$	56.847028	$	22.036922	$	21.076980
Units Outstanding		9		17		173		345		244
(3)     Accumulation Unit Value	$	216.761163	$	25.259678	$	56.847028	$	22.036922	$	21.076980
Units Outstanding		16		10		53		7		6
(4)     Accumulation Unit Value	$	216.761163	$	25.259678	$	56.847028	$	22.036922	$	21.076980
Units Outstanding		3		4		14		46		19

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, 2017

(in thousands, except accumulation unit values)

	U.S. Strategic Equity Division		U.S. Small Cap Equity Division		International Developed Markets Division		Strategic Bond Division		Global Real Estate Division
Assets:
Investments, at fair value (1)
Northwestern Mutual Series Fund, Inc	$	-	$	-	$	-	$	-	$	-
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		3,871		2,490		6,229		5,133		14,015
Credit Suisse Trust		-		-		-		-		-
Due from Northwestern Mutual Life Insurance Company		5		-		7		10		24
Total Assets		3,876		2,490		6,236		5,143		14,039
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		-
Due to Participants		-		-		-		-		-
Total Liabilities		-		-		-		-		-
Total Net Assets	$	3,876	$	2,490	$	6,236	$	5,143	$	14,039
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity	$	3,367	$	1,701	$	4,914	$	4,445	$	12,304
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		477		556		1,266		375		1,109
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		32		233		56		323		626
Total Net Assets	$	3,876	$	2,490	$	6,236	$	5,143	$	14,039
(1)     Investments, at cost	$	3,653	$	2,315	$	5,549	$	5,187	$	14,136
Mutual Fund Shares Held		209		152		475		495		946
(2)     Accumulation Unit Value	$	24.418364	$	34.518205	$	22.466466	$	24.895915	$	51.568102
Units Outstanding		138		49		218		178		238
(3)     Accumulation Unit Value	$	24.418364	$	34.518205	$	22.466466	$	24.895915	$	51.568102
Units Outstanding		20		16		56		15		22
(4)     Accumulation Unit Value	$	24.418364	$	34.518205	$	22.466466	$	24.895915	$	51.568102
Units Outstanding		1		7		3		13		12

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, 2017

(in thousands, except accumulation unit values)

	LifePoints Moderate Strategy Division		LifePoints Balanced Strategy Division		LifePoints Growth Strategy Division		LifePoints Equity Growth Strategy Division		Credit Suisse Trust Commodity Return Strategy Division
Assets:
Investments, at fair value (1)
Northwestern Mutual Series Fund, Inc	$	-	$	-	$	-	$	-	$	-
Fidelity Variable Insurance Products Fund		-		-		-		-		-
Neuberger Berman Advisers Management Trust		-		-		-		-		-
Russell Investment Funds		157		986		2,284		571		-
Credit Suisse Trust		-		-		-		-		6,972
Due from Northwestern Mutual Life Insurance Company		-		-		-		-		20
Total Assets		157		986		2,284		571		6,992
Liabilities:
Due to Northwestern Mutual Life Insurance Company		-		-		-		-		-
Due to Participants		-		-		-		-		-
Total Liabilities		-		-		-		-		-
Total Net Assets	$	157	$	986	$	2,284	$	571	$	6,992
Net Assets:
Custom Variable Universal Life Policies Issued On or After January 31, 2007 (2)
Policyowners’ Equity	$	50	$	976	$	1,856	$	571	$	6,607
Executive Variable Universal Life Policies Issued On or After January 31, 2007 (3)
Policyowners’ Equity		107		10		218		-		115
Survivorship Variable Universal Life Policies Issued On or After January 31, 2007 (4)
Policyowners’ Equity		-		-		210		-		270
Total Net Assets	$	157	$	986	$	2,284	$	571	$	6,992
(1)     Investments, at cost	$	156	$	969	$	2,153	$	528	$	7,720
Mutual Fund Shares Held		15		97		218		57		1,730
(2)     Accumulation Unit Value	$	16.557145	$	16.545882	$	16.029490	$	15.218716	$	5.017461
Units Outstanding		3		59		116		38		1,315
(3)     Accumulation Unit Value	$	16.557145	$	16.545882	$	16.029490	$	15.218716	$	5.017461
Units Outstanding		6		1		14		-		23
(4)     Accumulation Unit Value	$	16.557145	$	16.545882	$	16.029490	$	15.218716	$	5.017461
Units Outstanding		-		-		13		-		54

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, 2017

(in thousands)

	Growth Stock Division			Focused Appreciation Division		Large Cap Core Stock Division		Large Cap Blend Division			Index 500 Stock Division
Income:
Dividend income	$	68		$	96	$	96	$	18		$	874
Net investment income (loss)		68			96		96		18			874
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		(37	)		74		137		51			1,492
Realized gain distribution		359			243		-		100			514
Realized gains (losses)		322			317		137		151			2,006
Change in unrealized appreciation/(depreciation) of investments during the period		1,265			3,296		905		179			6,772
Net increase (decrease) in net assets resulting from operations	$	1,655		$	3,709	$	1,138	$	348		$	9,652
	Large Company Value Division			Domestic Equity Division		Equity Income Division		Mid Cap Growth Stock Division			Index 400 Stock Division
Income:
Dividend income	$	20		$	167	$	219	$	11		$	167
Net investment income (loss)		20			167		219		11			167
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		(6	)		171		207		(50	)		460
Realized gain distribution		40			249		467		-			890
Realized gains (losses)		34			420		674		(50	)		1,350
Change in unrealized appreciation/(depreciation) of investments during the period		43			784		611		850			796
Net increase (decrease) in net assets resulting from operations	$	97		$	1,371	$	1,504	$	811		$	2,313

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, 2017

(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	$	106	$	7	$	131	$	54	$	157
Net investment income (loss)		106		7		131		54		157
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		96		91		96		152		174
Realized gain distribution		255		75		242		365		-
Realized gains (losses)		351		166		338		517		174
Change in unrealized appreciation/(depreciation) of investments during the period		364		1,139		413		222		2,605
Net increase (decrease) in net assets resulting from operations	$	821	$	1,312	$	882	$	793	$	2,936
	Research International Core Division		International Equity Division		Emerging Markets Equity Division		Government Money Market Division		Short-Term Bond Division
Income:
Dividend income	$	143	$	619	$	116	$	83	$	16
Net investment income (loss)		143		619		116		83		16
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		146		28		6		-		-
Realized gain distribution		-		-		-		-		-
Realized gains (losses)		146		28		6		-		-
Change in unrealized appreciation/(depreciation) of investments during the period		1,739		4,187		2,723		-		(3	)
Net increase (decrease) in net assets resulting from operations	$	2,028	$	4,834	$	2,845	$	83	$	13

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, 2017

(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	$	402		$	5		$	18	$	574	$	344
Net investment income (loss)		402			5			18		574		344
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		(34	)		(18	)		-		31		14
Realized gain distribution		260			9			7		-		-
Realized gains (losses)		226			(9	)		7		31		14
Change in unrealized appreciation/(depreciation) of investments during the period		(9	)		25			61		67		290
Net increase (decrease) in net assets resulting from operations	$	619		$	21		$	86	$	672	$	648
	Balanced Division			Asset Allocation Division			Fidelity VIP Mid Cap Division		Fidelity VIP Contrafund Division		Neuberger Berman AMT Socially Responsive Division
Income:
Dividend income	$	118		$	14		$	63	$	59	$	26
Net investment income (loss)		118			14			63		59		26
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		(44	)		1			183		76		67
Realized gain distribution		198			30			570		353		188
Realized gains (losses)		154			31			753		429		255
Change in unrealized appreciation/(depreciation) of investments during the period		336			48			1,583		802		477
Net increase (decrease) in net assets resulting from operations	$	608		$	93		$	2,399	$	1,290	$	758

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, 2017

(in thousands)

	U.S. Strategic Equity Division		U.S. Small Cap Equity Division			International Developed Markets Division		Strategic Bond Division			Global Real Estate Division
Income:
Dividend income	$	34	$	4		$	146	$	64		$	465
Net investment income (loss)		34		4			146		64			465
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		97		95			59		(38	)		9
Realized gain distribution		348		161			206		-			256
Realized gains (losses)		445		256			265		(38	)		265
Change in unrealized appreciation/(depreciation) of investments during the period		157		56			743		153			598
Net increase (decrease) in net assets resulting from operations	$	636	$	316		$	1,154	$	179		$	1,328
	LifePoints Moderate Strategy Division		LifePoints Balanced Strategy Division			LifePoints Growth Strategy Division		LifePoints Equity Growth Strategy Division			Credit Suisse Trust Commodity Return Strategy Division
Income:
Dividend income	$	4	$	21		$	64	$	17		$	517
Net investment income (loss)		4		21			64		17			517
Realized gain (loss) on investments:
Realized gain (loss) on sale of fund shares		8		(2	)		14		1			(188	)
Realized gain distribution		2		42			38		9			-
Realized gains (losses)		10		40			52		10			(188	)
Change in unrealized appreciation/(depreciation) of investments during the period		4		36			158		50			(184	)
Net increase (decrease) in net assets resulting from operations	$	18	$	97		$	274	$	77		$	145

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	68		$	55		$	96		$	26
Net realized gains (losses)		322			678			317			3,396
Net change in unrealized appreciation/(depreciation)		1,265			(566	)		3,296			(2,810	)
Net increase (decrease) in net assets resulting from operations		1,655			167			3,709			612
Policy Transactions:
Policy owners’ net payments		624			633			2,024			2,096
Policy loans, surrenders and death benefits		(225	)		(151	)		(494	)		(379	)
Mortality and other (net)		(247	)		(238	)		(568	)		(535	)
Transfers from other divisions or sponsor		41,365			30,874			24,354			19,853
Transfers to other divisions or sponsor		(40,754	)		(30,654	)		(25,566	)		(20,001	)
Net increase (decrease) in net assets resulting from contract transactions		763			464			(250	)		1,034
Net increase (decrease) in net assets		2,418			631			3,459			1,646
Net Assets:
Beginning of period		6,498			5,867			11,512			9,866
End of period	$	8,916		$	6,498		$	14,971		$	11,512
Units issued during the period		698			557			596			620
Units redeemed during the period		(686	)		(549	)		(604	)		(592	)
Net units issued (redeemed) during period		12			8			(8	)		28
	Large Cap Core Stock Division						Large Cap Blend Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	96		$	71		$	18		$	17
Net realized gains (losses)		137			197			151			153
Net change in unrealized appreciation/(depreciation)		905			(29	)		179			42
Net increase (decrease) in net assets resulting from operations		1,138			239			348			212
Policy Transactions:
Policy owners’ net payments		585			502			265			218
Policy loans, surrenders and death benefits		(92	)		(147	)		(108	)		87
Mortality and other (net)		(177	)		(175	)		(62	)		(60	)
Transfers from other divisions or sponsor		13,528			13,549			2,101			1,530
Transfers to other divisions or sponsor		(12,159	)		(13,863	)		(2,049	)		(1,616	)
Net increase (decrease) in net assets resulting from contract transactions		1,685			(134	)		147			159
Net increase (decrease) in net assets		2,823			105			495			371
Net Assets:
Beginning of period		3,451			3,346			1,740			1,369
End of period	$	6,274		$	3,451		$	2,235		$	1,740
Units issued during the period		297			351			169			138
Units redeemed during the period		(259	)		(355	)		(160	)		(126	)
Net units issued (redeemed) during period		38			(4	)		9			12

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	874		$	618		$	20		$	13
Net realized gains (losses)		2,006			2,484			34			56
Net change in unrealized appreciation/(depreciation)		6,772			868			43			30
Net increase (decrease) in net assets resulting from operations		9,652			3,970			97			99
Policy Transactions:
Policy owners’ net payments		8,450			5,810			185			150
Policy loans, surrenders and death benefits		(1,332	)		(586	)		(31	)		(2	)
Mortality and other (net)		(1,900	)		(1,332	)		(45	)		(30	)
Transfers from other divisions or sponsor		132,031			85,962			1,987			1,817
Transfers to other divisions or sponsor		(126,137	)		(84,808	)		(1,867	)		(1,608	)
Net increase (decrease) in net assets resulting from contract transactions		11,112			5,046			229			327
Net increase (decrease) in net assets		20,764			9,016			326			426
Net Assets:
Beginning of period		39,430			30,414			769			343
End of period	$	60,194		$	39,430		$	1,095		$	769
Units issued during the period		1,181			904			139			184
Units redeemed during the period		(1,095	)		(858	)		(125	)		(160	)
Net units issued (redeemed) during period		86			46			14			24
	Domestic Equity Division						Equity Income Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	167		$	132		$	219		$	170
Net realized gains (losses)		420			525			674			536
Net change in unrealized appreciation/(depreciation)		784			295			611			841
Net increase (decrease) in net assets resulting from operations		1,371			952			1,504			1,547
Policy Transactions:
Policy owners’ net payments		1,691			1,128			1,474			1,591
Policy loans, surrenders and death benefits		(337	)		(308	)		(198	)		(276	)
Mortality and other (net)		(459	)		(368	)		(416	)		(411	)
Transfers from other divisions or sponsor		31,492			17,989			28,726			23,935
Transfers to other divisions or sponsor		(29,230	)		(16,592	)		(29,524	)		(25,215	)
Net increase (decrease) in net assets resulting from contract transactions		3,157			1,849			62			(376	)
Net increase (decrease) in net assets		4,528			2,801			1,566			1,171
Net Assets:
Beginning of period		7,934			5,133			9,470			8,299
End of period	$	12,462		$	7,934		$	11,036		$	9,470
Units issued during the period		1,392			812			971			987
Units redeemed during the period		(1,278	)		(733	)		(969	)		(1,001	)
Net units issued (redeemed) during period		114			79			2			(14	)

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	11		$	8		$	167		$	125
Net realized gains (losses)		(50	)		161			1,350			1,052
Net change in unrealized appreciation/(depreciation)		850			(147	)		796			939
Net increase (decrease) in net assets resulting from operations		811			22			2,313			2,116
Policy Transactions:
Policy owners’ net payments		483			436			2,504			1,622
Policy loans, surrenders and death benefits		(229	)		(91	)		(492	)		(104	)
Mortality and other (net)		(162	)		(150	)		(584	)		(446	)
Transfers from other divisions or sponsor		20,275			13,377			51,585			36,523
Transfers to other divisions or sponsor		(19,850	)		(12,533	)		(50,938	)		(35,789	)
Net increase (decrease) in net assets resulting from contract transactions		517			1,039			2,075			1,806
Net increase (decrease) in net assets		1,328			1,061			4,388			3,922
Net Assets:
Beginning of period		3,830			2,769			13,307			9,385
End of period	$	5,158		$	3,830		$	17,695		$	13,307
Units issued during the period		185			153			1,031			860
Units redeemed during the period		(182	)		(142	)		(994	)		(821	)
Net units issued (redeemed) during period		3			11			37			39
	Mid Cap Value Division						Small Cap Growth Stock Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	106		$	105		$	7		$	11
Net realized gains (losses)		351			709			166			571
Net change in unrealized appreciation/(depreciation)		364			365			1,139			37
Net increase (decrease) in net assets resulting from operations		821			1,179			1,312			619
Policy Transactions:
Policy owners’ net payments		1,287			1,031			992			719
Policy loans, surrenders and death benefits		(221	)		(160	)		(235	)		(252	)
Mortality and other (net)		(348	)		(267	)		(283	)		(208	)
Transfers from other divisions or sponsor		23,122			17,697			22,459			17,679
Transfers to other divisions or sponsor		(22,572	)		(17,674	)		(21,619	)		(17,208	)
Net increase (decrease) in net assets resulting from contract transactions		1,268			627			1,314			730
Net increase (decrease) in net assets		2,089			1,806			2,626			1,349
Net Assets:
Beginning of period		6,340			4,534			5,420			4,071
End of period	$	8,429		$	6,340		$	8,046		$	5,420
Units issued during the period		683			608			413			401
Units redeemed during the period		(652	)		(589	)		(390	)		(385	)
Net units issued (redeemed) during period		31			19			23			16

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	131		$	29		$	54		$	53
Net realized gains (losses)		338			279			517			1,034
Net change in unrealized appreciation/(depreciation)		413			893			222			675
Net increase (decrease) in net assets resulting from operations		882			1,201			793			1,762
Policy Transactions:
Policy owners’ net payments		988			654			1,067			1,032
Policy loans, surrenders and death benefits		(183	)		(35	)		(230	)		(211	)
Mortality and other (net)		(252	)		(191	)		(278	)		(272	)
Transfers from other divisions or sponsor		24,919			13,048			12,079			13,305
Transfers to other divisions or sponsor		(24,472	)		(11,354	)		(12,237	)		(15,479	)
Net increase (decrease) in net assets resulting from contract transactions		1,000			2,122			401			(1,625	)
Net increase (decrease) in net assets		1,882			3,323			1,194			137
Net Assets:
Beginning of period		6,130			2,807			6,684			6,547
End of period	$	8,012		$	6,130		$	7,878		$	6,684
Units issued during the period		1,346			767			315			436
Units redeemed during the period		(1,300	)		(650	)		(307	)		(481	)
Net units issued (redeemed) during period		46			117			8			(45	)
	International Growth Division						Research International Core Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	157		$	94		$	143		$	107
Net realized gains (losses)		174			23			146			23
Net change in unrealized appreciation/(depreciation)		2,605			(381	)		1,739			(117	)
Net increase (decrease) in net assets resulting from operations		2,936			(264	)		2,028			13
Policy Transactions:
Policy owners’ net payments		2,238			1,805			1,970			1,444
Policy loans, surrenders and death benefits		(559	)		(321	)		(440	)		(103	)
Mortality and other (net)		(592	)		(466	)		(491	)		(363	)
Transfers from other divisions or sponsor		30,655			17,177			30,378			16,344
Transfers to other divisions or sponsor		(28,980	)		(15,828	)		(29,760	)		(15,046	)
Net increase (decrease) in net assets resulting from contract transactions		2,762			2,367			1,657			2,276
Net increase (decrease) in net assets		5,698			2,103			3,685			2,289
Net Assets:
Beginning of period		8,910			6,807			6,548			4,259
End of period	$	14,608		$	8,910		$	10,233		$	6,548
Units issued during the period		1,709			1,056			3,227			1,883
Units redeemed during the period		(1,585	)		(930	)		(3,084	)		(1,649	)
Net units issued (redeemed) during period		124			126			143			234

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	619		$	396		$	116		$	55
Net realized gains (losses)		28			(230	)		6			(167	)
Net change in unrealized appreciation/(depreciation)		4,187			507			2,723			809
Net increase (decrease) in net assets resulting from operations		4,834			673			2,845			697
Policy Transactions:
Policy owners’ net payments		3,881			3,271			2,706			2,106
Policy loans, surrenders and death benefits		(704	)		(801	)		(323	)		(104	)
Mortality and other (net)		(1,002	)		(883	)		(616	)		(464	)
Transfers from other divisions or sponsor		64,309			52,587			22,716			16,755
Transfers to other divisions or sponsor		(59,803	)		(52,262	)		(20,303	)		(16,461	)
Net increase (decrease) in net assets resulting from contract transactions		6,681			1,912			4,180			1,832
Net increase (decrease) in net assets		11,515			2,585			7,025			2,529
Net Assets:
Beginning of period		19,520			16,935			8,873			6,344
End of period	$	31,035		$	19,520		$	15,898		$	8,873
Units issued during the period		12,891			12,507			2,419			2,212
Units redeemed during the period		(11,716	)		(12,087	)		(2,051	)		(2,012	)
Net units issued (redeemed) during period		1,175			420			368			200
	Government Money Market Division						Short-Term Bond Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	83		$	14		$	16		$	9
Net realized gains (losses)		-			1			-			2
Net change in unrealized appreciation/(depreciation)		-			-			(3	)		2
Net increase (decrease) in net assets resulting from operations		83			15			13			13
Policy Transactions:
Policy owners’ net payments		32,394			19,966			201			178
Policy loans, surrenders and death benefits		(2,801	)		(79	)		(52	)		(11	)
Mortality and other (net)		(711	)		(581	)		(55	)		(49	)
Transfers from other divisions or sponsor		55,032			54,360			2,276			1,545
Transfers to other divisions or sponsor		(84,695	)		(68,070	)		(1,776	)		(1,567	)
Net increase (decrease) in net assets resulting from contract transactions		(781	)		5,596			594			96
Net increase (decrease) in net assets		(698	)		5,611			607			109
Net Assets:
Beginning of period		13,827			8,216			812			703
End of period	$	13,129		$	13,827		$	1,419		$	812
Units issued during the period		2,526			1,913			211			144
Units redeemed during the period		(2,545	)		(1,781	)		(164	)		(136	)
Net units issued (redeemed) during period		(19	)		132			47			8

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	402		$	327		$	5		$	5
Net realized gains (losses)		226			80			(9	)		9
Net change in unrealized appreciation/(depreciation)		(9	)		(17	)		25			(20	)
Net increase (decrease) in net assets resulting from operations		619			390			21			(6	)
Policy Transactions:
Policy owners’ net payments		2,383			2,109			90			76
Policy loans, surrenders and death benefits		(855	)		(404	)		(209	)		(6	)
Mortality and other (net)		(789	)		(749	)		(20	)		(22	)
Transfers from other divisions or sponsor		101,102			95,068			842			260
Transfers to other divisions or sponsor		(98,222	)		(91,205	)		(711	)		(251	)
Net increase (decrease) in net assets resulting from contract transactions		3,619			4,819			(8	)		57
Net increase (decrease) in net assets		4,238			5,209			13			51
Net Assets:
Beginning of period		17,054			11,845			253			202
End of period	$	21,292		$	17,054		$	266		$	253
Units issued during the period		506			447			50			17
Units redeemed during the period		(491	)		(425	)		(50	)		(14	)
Net units issued (redeemed) during period		15			22			-			3
	Inflation Protection Division						High Yield Bond Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	18		$	17		$	574		$	461
Net realized gains (losses)		7			(2	)		31			(110	)
Net change in unrealized appreciation/(depreciation)		61			53			67			760
Net increase (decrease) in net assets resulting from operations		86			68			672			1,111
Policy Transactions:
Policy owners’ net payments		479			358			1,511			1,376
Policy loans, surrenders and death benefits		(62	)		(49	)		(300	)		(133	)
Mortality and other (net)		(111	)		(85	)		(349	)		(328	)
Transfers from other divisions or sponsor		7,480			4,574			28,851			27,725
Transfers to other divisions or sponsor		(6,728	)		(4,395	)		(28,524	)		(27,796	)
Net increase (decrease) in net assets resulting from contract transactions		1,058			403			1,189			844
Net increase (decrease) in net assets		1,144			471			1,861			1,955
Net Assets:
Beginning of period		1,787			1,316			9,331			7,376
End of period	$	2,931		$	1,787		$	11,192		$	9,331
Units issued during the period		609			375			651			638
Units redeemed during the period		(536	)		(345	)		(628	)		(620	)
Net units issued (redeemed) during period		73			30			23			18

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	344		$	284		$	118		$	88
Net realized gains (losses)		14			(114	)		154			68
Net change in unrealized appreciation/(depreciation)		290			357			336			106
Net increase (decrease) in net assets resulting from operations		648			527			608			262
Policy Transactions:
Policy owners’ net payments		1,689			1,404			392			353
Policy loans, surrenders and death benefits		(304	)		(108	)		(63	)		23
Mortality and other (net)		(351	)		(272	)		(152	)		(141	)
Transfers from other divisions or sponsor		14,803			13,958			45,827			33,338
Transfers to other divisions or sponsor		(13,072	)		(12,622	)		(44,987	)		(32,686	)
Net increase (decrease) in net assets resulting from contract transactions		2,765			2,360			1,017			887
Net increase (decrease) in net assets		3,413			2,887			1,625			1,149
Net Assets:
Beginning of period		6,763			3,876			4,264			3,115
End of period	$	10,176		$	6,763		$	5,889		$	4,264
Units issued during the period		953			993			230			181
Units redeemed during the period		(802	)		(853	)		(223	)		(176	)
Net units issued (redeemed) during period		151			140			7			5
	Asset Allocation Division						Fidelity VIP Mid Cap Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	14		$	14		$	63		$	36
Net realized gains (losses)		31			(4	)		753			661
Net change in unrealized appreciation/(depreciation)		48			31			1,583			642
Net increase (decrease) in net assets resulting from operations		93			41			2,399			1,339
Policy Transactions:
Policy owners’ net payments		96			76			1,525			1,567
Policy loans, surrenders and death benefits		(6	)		(5	)		(356	)		(494	)
Mortality and other (net)		(27	)		(25	)		(449	)		(462	)
Transfers from other divisions or sponsor		1,198			1,764			35,195			28,805
Transfers to other divisions or sponsor		(1,165	)		(1,756	)		(36,678	)		(29,055	)
Net increase (decrease) in net assets resulting from contract transactions		96			54			(763	)		361
Net increase (decrease) in net assets		189			95			1,636			1,700
Net Assets:
Beginning of period		589			494			12,048			10,348
End of period	$	778		$	589		$	13,684		$	12,048
Units issued during the period		57			119			826			724
Units redeemed during the period		(53	)		(116	)		(841	)		(715	)
Net units issued (redeemed) during period		4			3			(15	)		9

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, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	59		$	32		$	26		$	23
Net realized gains (losses)		429			299			255			157
Net change in unrealized appreciation/(depreciation)		802			57			477			139
Net increase (decrease) in net assets resulting from operations		1,290			388			758			319
Policy Transactions:
Policy owners’ net payments		1,764			1,373			1,432			1,008
Policy loans, surrenders and death benefits		(172	)		(219	)		(127	)		(123	)
Mortality and other (net)		(413	)		(316	)		(303	)		(231	)
Transfers from other divisions or sponsor		14,819			9,791			10,759			6,590
Transfers to other divisions or sponsor		(13,768	)		(9,706	)		(10,387	)		(6,380	)
Net increase (decrease) in net assets resulting from contract transactions		2,230			923			1,374			864
Net increase (decrease) in net assets		3,520			1,311			2,132			1,183
Net Assets:
Beginning of period		5,268			3,957			3,559			2,376
End of period	$	8,788		$	5,268		$	5,691		$	3,559
Units issued during the period		884			707			674			490
Units redeemed during the period		(776	)		(653	)		(605	)		(436	)
Net units issued (redeemed) during period		108			54			69			54
	U.S. Strategic Equity Division						U.S. Small Cap Equity Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	34		$	29		$	4		$	15
Net realized gains (losses)		445			213			256			(21	)
Net change in unrealized appreciation/(depreciation)		157			48			56			318
Net increase (decrease) in net assets resulting from operations		636			290			316			312
Policy Transactions:
Policy owners’ net payments		251			261			176			188
Policy loans, surrenders and death benefits		(54	)		(143	)		(92	)		(224	)
Mortality and other (net)		(104	)		(114	)		(78	)		(81	)
Transfers from other divisions or sponsor		7,613			6,583			6,458			5,498
Transfers to other divisions or sponsor		(7,522	)		(6,683	)		(6,252	)		(5,558	)
Net increase (decrease) in net assets resulting from contract transactions		184			(96	)		212			(177	)
Net increase (decrease) in net assets		820			194			528			135
Net Assets:
Beginning of period		3,056			2,862			1,962			1,827
End of period	$	3,876		$	3,056		$	2,490		$	1,962
Units issued during the period		357			378			212			224
Units redeemed during the period		(349	)		(383	)		(206	)		(230	)
Net units issued (redeemed) during period		8			(5	)		6			(6	)

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)

	International Developed Markets Division						Strategic Bond Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	146		$	144		$	64		$	80
Net realized gains (losses)		265			129			(38	)		114
Net change in unrealized appreciation/(depreciation)		743			(129	)		153			(28	)
Net increase (decrease) in net assets resulting from operations		1,154			144			179			166
Policy Transactions:
Policy owners’ net payments		633			585			874			872
Policy loans, surrenders and death benefits		(155	)		(193	)		(121	)		(199	)
Mortality and other (net)		(183	)		(168	)		(236	)		(277	)
Transfers from other divisions or sponsor		11,082			10,355			12,605			21,411
Transfers to other divisions or sponsor		(11,187	)		(9,937	)		(12,782	)		(21,875	)
Net increase (decrease) in net assets resulting from contract transactions		190			642			340			(68	)
Net increase (decrease) in net assets		1,344			786			519			98
Net Assets:
Beginning of period		4,892			4,106			4,624			4,526
End of period	$	6,236		$	4,892		$	5,143		$	4,624
Units issued during the period		600			685			565			937
Units redeemed during the period		(594	)		(648	)		(551	)		(940	)
Net units issued (redeemed) during period		6			37			14			(3	)
	Global Real Estate Division						LifePoints Moderate Strategy Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	465		$	429		$	4		$	6
Net realized gains (losses)		265			388			10			3
Net change in unrealized appreciation/(depreciation)		598			(557	)		4			3
Net increase (decrease) in net assets resulting from operations		1,328			260			18			12
Policy Transactions:
Policy owners’ net payments		2,210			1,826			36			53
Policy loans, surrenders and death benefits		(316	)		(299	)		(42	)		-
Mortality and other (net)		(541	)		(473	)		(18	)		(17	)
Transfers from other divisions or sponsor		25,998			21,073			248			1,262
Transfers to other divisions or sponsor		(24,461	)		(20,593	)		(269	)		(1,270	)
Net increase (decrease) in net assets resulting from contract transactions		2,890			1,534			(45	)		28
Net increase (decrease) in net assets		4,218			1,794			(27	)		40
Net Assets:
Beginning of period		9,821			8,027			184			144
End of period	$	14,039		$	9,821		$	157		$	184
Units issued during the period		615			535			18			120
Units redeemed during the period		(556	)		(501	)		(21	)		(118	)
Net units issued (redeemed) during period		59			34			(3	)		2

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)

	LifePoints Balanced Strategy Division						LifePoints Growth Strategy Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	21		$	23		$	64		$	38
Net realized gains (losses)		40			5			52			13
Net change in unrealized appreciation/(depreciation)		36			33			158			60
Net increase (decrease) in net assets resulting from operations		97			61			274			111
Policy Transactions:
Policy owners’ net payments		115			144			730			265
Policy loans, surrenders and death benefits		(7	)		(21	)		(6	)		(4	)
Mortality and other (net)		(28	)		(33	)		(67	)		(53	)
Transfers from other divisions or sponsor		1,253			1,008			3,197			1,827
Transfers to other divisions or sponsor		(1,191	)		(1,062	)		(3,360	)		(1,381	)
Net increase (decrease) in net assets resulting from contract transactions		142			36			494			654
Net increase (decrease) in net assets		239			97			768			765
Net Assets:
Beginning of period		747			650			1,516			751
End of period	$	986		$	747		$	2,284		$	1,516
Units issued during the period		87			90			526			177
Units redeemed during the period		(78	)		(87	)		(493	)		(127	)
Net units issued (redeemed) during period		9			3			33			50
	LifePoints Equity Growth Strategy Division						Credit Suisse Trust Commodity Return Strategy Division
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2017			Year Ended December 31, 2016
Operations:
Net investment income (loss)	$	17		$	11		$	517		$	-
Net realized gains (losses)		10			3			(188	)		(71	)
Net change in unrealized appreciation/(depreciation)		50			30			(184	)		508
Net increase (decrease) in net assets resulting from operations		77			44			145			437
Policy Transactions:
Policy owners’ net payments		112			104			1,398			1,086
Policy loans, surrenders and death benefits		-			-			(146	)		(78	)
Mortality and other (net)		(35	)		(36	)		(293	)		(226	)
Transfers from other divisions or sponsor		329			351			11,161			7,585
Transfers to other divisions or sponsor		(315	)		(350	)		(10,270	)		(6,549	)
Net increase (decrease) in net assets resulting from contract transactions		91			69			1,850			1,818
Net increase (decrease) in net assets		168			113			1,995			2,255
Net Assets:
Beginning of period		403			290			4,997			2,742
End of period	$	571		$	403		$	6,992		$	4,997
Units issued during the period		32			54			2,771			1,973
Units redeemed during the period		(25	)		(48	)		(2,389	)		(1,587	)
Net units issued (redeemed) during period		7			6			382			386

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

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2017

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” or “sponsor”) 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 Fund, Neuberger Berman Advisers Management Trust, 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 Portfolios should be read in conjunction with the financial statements 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 May 1, 2017, the following Divisions were renamed.

Prior Name	New Name
Russell Multi-Style Equity Division	U.S. Strategic Equity Division
Russell Aggressive Equity Division	U.S. Small Cap Equity Division
Russell Non-U.S. Division	International Developed Markets Division
Russell Core Bond Division	Strategic Bond Division
Russell Global Real Estate Securities Division	Global Real Estate Securities Division
Russell LifePoints Moderate Strategy Division	LifePoints Moderate Strategy Division
Russell LifePoints Balanced Strategy Division	LifePoints Balanced Strategy Division
Russell LifePoints Growth Strategy Division	LifePoints Growth Strategy Division
Russell LifePoints Equity Growth Strategy Division	LifePoints Equity Growth Strategy Division

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, 2017, 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 fair value is determined by unadjusted quoted prices in active markets for identical securities or derivatives. Level 2 securities fair value is determined by other significant observable inputs (including quoted prices for similar securities). Level 3 fair value is determined by significant unobservable inputs (including the Account’s own assumptions in determining fair value). There were no transfers between levels during the year. 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. Due to Participants – Upon notification of death of the policyowner, a liability is recorded and is included in Due to Participants in the accompanying financial statements. This liability is identified as Level 1 for valuation purposes under the Fair Value Measurement Topic of the FASB Accounting Standards Codification.

E. 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, 2017

3. Purchases and Sales of Investments

Purchases and sales of the Funds’ shares for the year ended December 31, 2017 were as follows: (in thousands)

Division	Purchases		Sales
Growth Stock	$	2,296	$	1,098
Focused Appreciation		3,307		3,228
Large Cap Core Stock		2,499		717
Large Cap Blend		733		467
Index 500 Stock		21,424		8,925
Large Company Value		540		253
Domestic Equity		5,273		1,690
Equity Income		3,338		2,615
Mid Cap Growth Stock		1,133		603
Index 400 Stock		6,240		3,127
Mid Cap Value		3,098		1,493
Small Cap Growth Stock		2,320		926
Index 600 Stock		2,590		1,230
Small Cap Value		2,325		1,538
International Growth		5,290		2,359
Research International Core		4,239		2,433
International Equity		11,834		4,511
Emerging Markets Equity		5,944		1,651
Government Money Market		47,547		48,205
Short-Term Bond		996		384
Select Bond		11,124		6,864
Long-Term U.S. Government Bond		401		396
Inflation Protection Bond		1,571		489
High Yield Bond		3,243		1,490
Multi-Sector Bond		4,187		1,097
Balanced		2,212		880
Asset Allocation		248		108
Fidelity VIP Mid Cap		3,182		3,320
Fidelity VIP Contrafund		3,801		1,174
Neuberger Berman AMT Socially Responsive		2,582		1,002
U.S. Strategic Equity		1,118		556
U.S. Small Cap Equity		891		514
International Developed Markets		1,908		1,376
Strategic Bond		2,025		1,632
Global Real Estate Securities		5,186		1,584
LifePoints Moderate Strategy		182		221
LifePoints Balanced Strategy		310		104
LifePoints Growth Strategy		1,564		966
LifePoints Equity Growth Strategy		167		53
Credit Suisse Trust Commodity Return Strategy		3,330		973

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.

24

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2017

A 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 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 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.

5. Subsequent Events

Effective May 1, 2018, the Neuberger Berman AMT Socially Responsive Division will be renamed to AMT Sustainable Equity Division.

25

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2017

6. Financial Highlights

	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(1)			Total Return(1)
Growth Stock
Year Ended 12/31/17		122		$73.551913		$8,916		0.87	%		0.00	%		24.27	%
Year Ended 12/31/16		110		59.189518		6,498		0.89			0.00			2.47
Year Ended 12/31/15		102		57.763945		5,867		0.74			0.00			6.01
Year Ended 12/31/14		101		54.488126		5,570		0.61			0.00			9.02
Year Ended 12/31/13		84		49.977915		4,259		0.67			0.00			35.86
Focused Appreciation
Year Ended 12/31/17		280		$53.438372		$14,971		0.73	%		0.00	%		33.62	%
Year Ended 12/31/16		288		39.992151		11,512		0.24			0.00			5.87
Year Ended 12/31/15		260		37.773111		9,866		0.00			0.00			13.64
Year Ended 12/31/14		239		33.238141		7,919		0.02			0.00			9.43
Year Ended 12/31/13		195		30.372615		5,911		0.49			0.00			29.01
Large Cap Core Stock
Year Ended 12/31/17		119		$53.073917		$6,274		1.80	%		0.00	%		24.87	%
Year Ended 12/31/16		81		42.503832		3,451		2.16			0.00			7.57
Year Ended 12/31/15		85		39.512372		3,346		2.16			0.00			(3.06	)
Year Ended 12/31/14		79		40.759702		3,209		1.50			0.00			8.56
Year Ended 12/31/13		69		37.544148		2,627		1.14			0.00			28.58
Large Cap Blend
Year Ended 12/31/17		125		$17.855817		$2,235		0.91	%		0.00	%		19.02	%
Year Ended 12/31/16		116		15.001832		1,740		1.09			0.00			13.99
Year Ended 12/31/15		104		13.161232		1,369		0.88			0.00			(2.42	)
Year Ended 12/31/14		104		13.487127		1,395		0.04			0.00			12.58
Year Ended 12/31/13		88		11.980322		1,058		1.08			0.00			30.86
Index 500 Stock
Year Ended 12/31/17		423		$142.286114		$60,194		1.74	%		0.00	%		21.52	%
Year Ended 12/31/16		337		117.092375		39,430		1.82			0.00			11.73
Year Ended 12/31/15		291		104.794845		30,414		1.71			0.00			1.17
Year Ended 12/31/14		247		103.583087		25,625		1.58			0.00			13.46
Year Ended 12/31/13		199		91.297175		18,236		1.84			0.00			32.05
Large Company Value
Year Ended 12/31/17		64		$17.086312		$1,095		2.09	%		0.00	%		11.10	%
Year Ended 12/31/16		50		15.379433		769		2.06			0.00			15.36
Year Ended 12/31/15		26		13.331635		343		1.71			0.00			(3.85	)
Year Ended 12/31/14		21		13.865219		284		0.00			0.00			13.03
Year Ended 12/31/13		16		12.266796		192		2.04			0.00			31.29
Domestic Equity
Year Ended 12/31/17		415		$29.996128		$12,462		1.65	%		0.00	%		13.78	%
Year Ended 12/31/16		301		26.364364		7,934		1.97			0.00			14.98
Year Ended 12/31/15		222		22.929503		5,133		1.85			0.00			(0.09	)
Year Ended 12/31/14		201		22.950784		4,623		1.73			0.00			13.87
Year Ended 12/31/13		197		20.154766		3,970		1.65			0.00			34.03
Equity Income
Year Ended 12/31/17		314		$35.257091		$11,036		2.23	%		0.00	%		16.24	%
Year Ended 12/31/16		312		30.330455		9,470		1.97			0.00			19.17
Year Ended 12/31/15		326		25.451821		8,299		1.79			0.00			(6.74	)
Year Ended 12/31/14		226		27.291728		6,156		1.26			0.00			7.43
Year Ended 12/31/13		196		25.403806		4,988		1.37			0.00			29.94

(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.

26

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2017

	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(1)			Total Return(1)
Mid Cap Growth Stock
Year Ended 12/31/17		40		$125.441587		$5,158		0.24	%		0.00	%		20.29	%
Year Ended 12/31/16		36		104.283373		3,830		0.26			0.00			0.83
Year Ended 12/31/15		26		103.425002		2,769		0.04			0.00			0.71
Year Ended 12/31/14		25		102.693582		2,546		0.35			0.00			8.49
Year Ended 12/31/13		27		94.654719		2,544		0.32			0.00			25.53
Index 400 Stock
Year Ended 12/31/17		297		$59.411237		$17,695		1.07	%		0.00	%		15.96	%
Year Ended 12/31/16		260		51.235085		13,307		1.14			0.00			20.38
Year Ended 12/31/15		221		42.560713		9,385		1.08			0.00			(2.38	)
Year Ended 12/31/14		187		43.598907		8,127		1.05			0.00			9.42
Year Ended 12/31/13		150		39.846886		5,951		1.08			0.00			33.16
Mid Cap Value
Year Ended 12/31/17		193		$43.762109		$8,429		1.46	%		0.00	%		11.81	%
Year Ended 12/31/16		162		39.139970		6,340		1.91			0.00			23.23
Year Ended 12/31/15		143		31.761925		4,534		1.58			0.00			(1.33	)
Year Ended 12/31/14		144		32.189353		4,616		1.01			0.00			16.69
Year Ended 12/31/13		113		27.585004		3,117		0.97			0.00			30.24
Small Cap Growth Stock
Year Ended 12/31/17		124		$65.129570		$8,046		0.11	%		0.00	%		21.61	%
Year Ended 12/31/16		101		53.557262		5,420		0.24			0.00			12.25
Year Ended 12/31/15		85		47.712811		4,071		0.11			0.00			0.32
Year Ended 12/31/14		81		47.561777		3,833		0.00			0.00			8.66
Year Ended 12/31/13		72		43.773190		3,151		0.49			0.00			38.60
Index 600 Stock
Year Ended 12/31/17		327		$24.532713		$8,012		1.89	%		0.00	%		12.93	%
Year Ended 12/31/16		281		21.724279		6,130		0.63			0.00			26.12
Year Ended 12/31/15		164		17.224563		2,807		0.00			0.00			(2.35	)
Year Ended 12/31/14		118		17.638780		2,081		1.71			0.00			5.34
Year Ended 12/31/13		82		16.744685		1,381		4.36			0.00			40.67
Small Cap Value
Year Ended 12/31/17		165		$47.690780		$7,878		0.78	%		0.00	%		11.65	%
Year Ended 12/31/16		157		42.713658		6,684		0.84			0.00			32.39
Year Ended 12/31/15		202		32.262868		6,547		0.69			0.00			(5.45	)
Year Ended 12/31/14		188		34.121874		6,405		0.37			0.00			0.22
Year Ended 12/31/13		152		34.046809		5,170		1.14			0.00			31.76
International Growth
Year Ended 12/31/17		603		$24.188049		$14,608		1.30	%		0.00	%		30.03	%
Year Ended 12/31/16		479		18.601991		8,910		1.19			0.00			(3.41	)
Year Ended 12/31/15		353		19.257803		6,807		1.70			0.00			(1.73	)
Year Ended 12/31/14		262		19.596007		5,142		1.30			0.00			(4.52	)
Year Ended 12/31/13		201		20.524033		4,123		1.41			0.00			19.81
Research International Core
Year Ended 12/31/17		799		$12.802534		$10,233		1.67	%		0.00	%		28.21	%
Year Ended 12/31/16		656		9.985604		6,548		1.92			0.00			(1.12	)
Year Ended 12/31/15		422		10.098885		4,259		2.15			0.00			(1.11	)
Year Ended 12/31/14		280		10.212438		2,856		1.52			0.00			(6.71	)
Year Ended 12/31/13		154		10.947312		1,694		0.14			0.00			18.92

(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.

27

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2017

	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(1)			Total Return(1)
International Equity
Year Ended 12/31/17		5,092		$6.094491		$31,035		2.43	%		0.00	%		22.30	%
Year Ended 12/31/16		3,917		4.983406		19,520		1.19			0.00			(3.41	)
Year Ended 12/31/15		3,497		4.843231		16,935		2.98			0.00			(2.21	)
Year Ended 12/31/14		2,845		4.952849		14,084		1.94			0.00			(8.80	)
Year Ended 12/31/13		2,430		5.431053		13,202		2.15			0.00			21.38
Emerging Markets Equity
Year Ended 12/31/17		1,285		$12.370178		$15,898		0.92	%		0.00	%		27.84	%
Year Ended 12/31/16		919		9.676365		8,873		0.72			0.00			9.06
Year Ended 12/31/15		717		8.872116		6,344		0.90			0.00			(12.24	)
Year Ended 12/31/14		456		10.109813		4,611		0.66			0.00			(6.25	)
Year Ended 12/31/13		251		10.783888		2,699		0.75			0.00			(5.15	)
Government Money Market
Year Ended 12/31/17		314		$41.875417		$13,129		0.59	%		0.00	%		0.60	%
Year Ended 12/31/16		333		41.625993		13,827		0.12			0.00			0.13
Year Ended 12/31/15		201		41.572750		8,216		0.01			0.00			0.01
Year Ended 12/31/14		142		41.568533		5,866		0.07			0.00			0.07
Year Ended 12/31/13		161		41.539003		6,690		0.09			0.00			0.10
Short-Term Bond
Year Ended 12/31/17		112		$12.646732		$1,419		1.33	%		0.00	%		1.33	%
Year Ended 12/31/16		66		12.481062		812		1.18			0.00			1.67
Year Ended 12/31/15		57		12.275717		703		0.79			0.00			0.72
Year Ended 12/31/14		21		12.188479		256		0.77			0.00			0.38
Year Ended 12/31/13		13		12.142453		158		0.05			0.00			0.55
Select Bond
Year Ended 12/31/17		93		$226.897252		$21,292		2.11	%		0.00	%		3.58	%
Year Ended 12/31/16		78		219.047810		17,054		2.05			0.00			3.06
Year Ended 12/31/15		56		212.549665		11,845		1.54			0.00			0.53
Year Ended 12/31/14		51		211.428447		10,700		2.08			0.00			5.56
Year Ended 12/31/13		41		200.286369		8,297		2.40			0.00			(2.16	)
Long-Term U.S Government Bond
Year Ended 12/31/17		13		$20.685508		$266		1.72	%		0.00	%		8.28	%
Year Ended 12/31/16		12		19.104481		253		1.95			0.00			1.09
Year Ended 12/31/15		10		18.898765		202		2.38			0.00			(1.47	)
Year Ended 12/31/14		9		19.181310		174		1.75			0.00			23.73
Year Ended 12/31/13		9		15.502339		139		0.03			0.00			(13.27	)
Inflation Protection
Year Ended 12/31/17		199		$14.738894		$2,931		0.72	%		0.00	%		3.58	%
Year Ended 12/31/16		125		14.229840		1,787		1.15			0.00			4.68
Year Ended 12/31/15		96		13.593038		1,316		2.32			0.00			(2.20	)
Year Ended 12/31/14		87		13.899486		1,226		0.56			0.00			3.14
Year Ended 12/31/13		47		13.476716		628		0.97			0.00			(8.33	)
High Yield Bond
Year Ended 12/31/17		211		$53.128855		$11,192		5.51	%		0.00	%		6.88	%
Year Ended 12/31/16		187		49.707921		9,331		5.50			0.00			14.60
Year Ended 12/31/15		170		43.377037		7,376		4.80			0.00			(1.36	)
Year Ended 12/31/14		134		43.976216		5,885		4.74			0.00			1.18
Year Ended 12/31/13		120		43.465300		5,206		5.72			0.00			5.84

(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.

28

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2017

	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(1)			Total Return(1)
Multi-Sector Bond
Year Ended 12/31/17		541		$18.780164		$10,176		3.98	%		0.00	%		8.38	%
Year Ended 12/31/16		392		17.327635		6,763		4.89			0.00			11.09
Year Ended 12/31/15		250		15.597729		3,876		5.61			0.00			(2.22	)
Year Ended 12/31/14		187		15.951947		3,000		2.74			0.00			3.25
Year Ended 12/31/13		134		15.449941		2,079		3.35			0.00			(1.58	)
Balanced
Year Ended 12/31/17		28		$216.761163		$5,889		2.16	%		0.00	%		11.98	%
Year Ended 12/31/16		20		193.563662		4,264		2.25			0.00			6.58
Year Ended 12/31/15		16		181.609174		3,115		2.00			0.00			(0.12	)
Year Ended 12/31/14		15		181.830315		2,819		2.30			0.00			5.56
Year Ended 12/31/13		15		172.248875		2,744		3.49			0.00			12.08
Asset Allocation
Year Ended 12/31/17		31		$25.259678		$778		2.08	%		0.00	%		14.87	%
Year Ended 12/31/16		27		21.988973		589		2.50			0.00			7.79
Year Ended 12/31/15		24		20.400265		494		1.72			0.00			(0.43	)
Year Ended 12/31/14		22		20.487411		470		2.40			0.00			5.15
Year Ended 12/31/13		20		19.484028		377		3.17			0.00			16.67
Fidelity VIP Mid Cap
Year Ended 12/31/17		240		$56.847028		$13,684		0.50	%		0.00	%		20.54	%
Year Ended 12/31/16		256		47.161926		12,048		0.32			0.00			11.92
Year Ended 12/31/15		246		42.137819		10,348		0.27			0.00			(1.63	)
Year Ended 12/31/14		225		42.835362		9,641		0.02			0.00			6.03
Year Ended 12/31/13		187		40.398542		7,532		0.28			0.00			35.87
Fidelity VIP Contrafund
Year Ended 12/31/17		398		$22.036922		$8,788		0.84	%		0.00	%		21.59	%
Year Ended 12/31/16		291		18.124509		5,268		0.68			0.00			7.73
Year Ended 12/31/15		236		16.824006		3,957		0.97			0.00			0.42
Year Ended 12/31/14		145		16.754369		2,432		0.90			0.00			11.65
Year Ended 12/31/13		93		15.005573		1,396		1.00			0.00			30.95
Neuberger Berman AMT Socially Responsive
Year Ended 12/31/17		269		$21.076980		$5,691		0.57	%		0.00	%		18.43	%
Year Ended 12/31/16		199		17.797220		3,559		0.76			0.00			9.86
Year Ended 12/31/15		146		16.199640		2,376		0.64			0.00			(0.46	)
Year Ended 12/31/14		97		16.275087		1,573		0.43			0.00			10.38
Year Ended 12/31/13		58		14.744385		857		0.98			0.00			37.60
U.S. Strategic Equity
Year Ended 12/31/17		159		$24.418364		$3,876		1.01	%		0.00	%		20.80	%
Year Ended 12/31/16		151		20.214494		3,056		1.03			0.00			10.64
Year Ended 12/31/15		156		18.271298		2,862		0.81			0.00			1.11
Year Ended 12/31/14		165		18.071559		2,989		1.14			0.00			11.70
Year Ended 12/31/13		157		16.178812		2,546		1.19			0.00			32.92
U.S. Small Cap Equity
Year Ended 12/31/17		72		$34.518205		$2,490		0.17	%		0.00	%		15.48	%
Year Ended 12/31/16		65		29.891437		1,962		0.83			0.00			18.66
Year Ended 12/31/15		72		25.191084		1,827		0.67			0.00			(7.19	)
Year Ended 12/31/14		70		27.141282		1,902		0.25			0.00			1.56
Year Ended 12/31/13		69		26.724835		1,850		0.43			0.00			40.00

(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.

29

Northwestern Mutual Variable Life Account II

Notes to Financial Statements

December 31, 2017

	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(1)			Total Return(1)
International Developed Markets
Year Ended 12/31/17		277		$22.466466		$6,236		2.75	%		0.00	%		24.98	%
Year Ended 12/31/16		272		17.976751		4,892		3.17			0.00			2.36
Year Ended 12/31/15		234		17.562157		4,106		1.06			0.00			(1.31	)
Year Ended 12/31/14		196		17.795979		3,482		1.91			0.00			(4.45	)
Year Ended 12/31/13		169		18.624500		3,136		1.95			0.00			21.91
Strategic Bond
Year Ended 12/31/17		206		$24.895915		$5,143		1.34	%		0.00	%		3.86	%
Year Ended 12/31/16		193		23.970161		4,624		1.60			0.00			3.10
Year Ended 12/31/15		195		23.248775		4,526		2.44			0.00			(0.14	)
Year Ended 12/31/14		166		23.281628		3,851		1.47			0.00			5.45
Year Ended 12/31/13		113		22.077570		2,477		1.40			0.00			(1.45	)
Global Real Estate Securities
Year Ended 12/31/17		272		$51.568102		$14,039		3.91	%		0.00	%		11.80	%
Year Ended 12/31/16		213		46.124107		9,821		4.73			0.00			3.02
Year Ended 12/31/15		179		44.771967		8,027		1.65			0.00			0.25
Year Ended 12/31/14		149		44.660949		6,654		3.39			0.00			14.75
Year Ended 12/31/13		123		38.920595		4,775		3.98			0.00			3.65
LifePoints Moderate Strategy
Year Ended 12/31/17		9		$16.557145		$157		2.12	%		0.00	%		9.88	%
Year Ended 12/31/16		12		15.067752		184		3.95			0.00			7.75
Year Ended 12/31/15		10		13.984420		144		3.14			0.00			(1.71	)
Year Ended 12/31/14		7		14.227181		103		2.98			0.00			4.85
Year Ended 12/31/13		8		13.568584		109		2.31			0.00			6.79
LifePoints Balanced Strategy
Year Ended 12/31/17		60		$16.545882		$986		2.46	%		0.00	%		12.00	%
Year Ended 12/31/16		50		14.773443		747		3.41			0.00			9.05
Year Ended 12/31/15		48		13.546956		650		2.32			0.00			(2.30	)
Year Ended 12/31/14		30		13.866173		420		2.93			0.00			4.61
Year Ended 12/31/13		32		13.255096		431		2.31			0.00			12.43
LifePoints Growth Strategy
Year Ended 12/31/17		143		$16.029490		$2,284		3.26	%		0.00	%		15.65	%
Year Ended 12/31/16		110		13.860030		1,516		3.41			0.00			9.73
Year Ended 12/31/15		60		12.631574		751		1.94			0.00			(3.31	)
Year Ended 12/31/14		48		13.064429		617		3.44			0.00			3.76
Year Ended 12/31/13		25		12.591524		310		2.56			0.00			16.56
LifePoints Equity Growth Strategy
Year Ended 12/31/17		38		$15.218716		$571		3.51	%		0.00	%		17.55	%
Year Ended 12/31/16		31		12.946453		403		3.01			0.00			10.85
Year Ended 12/31/15		25		11.679451		290		1.57			0.00			(3.87	)
Year Ended 12/31/14		17		12.149681		214		3.73			0.00			3.48
Year Ended 12/31/13		10		11.740704		115		2.12			0.00			19.81
Credit Suisse Trust Commodity Return Strategy
Year Ended 12/31/17		1,392		$5.017461		$6,992		8.90	%		0.00	%		1.52	%
Year Ended 12/31/16		1,013		4.942479		4,997		0.00			0.00			12.02
Year Ended 12/31/15		624		4.412123		2,742		0.00			0.00			(25.03	)
Year Ended 12/31/14		346		5.885213		2,040		0.00			0.00			(16.94	)
Period Ended 12/31/13 (2)		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.

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

30

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of The Northwestern Mutual Life Insurance Company and

Contract Owners of Northwestern Mutual Variable Life Account II

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities of the 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, Government 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, U.S. Strategic Equity Division, U.S. Small Cap Equity Division, International Developed Markets Division, Strategic Bond Division, Global Real Estate Securities Division, LifePoints Moderate Strategy Division, LifePoints Balanced Strategy Division, LifePoints Growth Strategy Division, LifePoints Equity Growth Strategy Division and Credit Suisse Trust Commodity Return Strategy Division (constituting the Northwestern Mutual Variable Life Account II, hereafter collectively referred to as the “Divisions”) as of December 31, 2017, the related statements of operations for the year ended December 31, 2017, and the statements of changes in net assets for each of the two years in the period ended December 31, 2017, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Divisions in the Northwestern Mutual Variable Life Account II as of December 31, 2017, the results of each of their operations for the year then ended, and the changes in each of their net assets for each of the two years in the period ended December 31, 2017 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of The Northwestern Mutual Life Insurance Company’s management. Our responsibility is to express an opinion on the financial statements of each of the Divisions in the Northwestern Mutual Variable Life Account II based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to each of the Divisions in the Northwestern Mutual Variable Life Account II in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant

31

estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the underlying registered investment companies. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Milwaukee, Wisconsin

April 26, 2018

We have served as the auditor of one or more of the Divisions in Northwestern Mutual Variable Life Account II since 2007.

32

	PRSRT BPM US POSTAGE PAID NORTHWESTERN MUTUAL
PO BOX 3095 MILWAUKEE WI 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 Help Line at 800-289-9999.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Northwestern Long Term Care Insurance Company, Milwaukee, WI (long-term care insurance) is a subsidiary of NM.

Product Distributor: Northwestern Mutual Investment Services, LLC (NMIS), 720 East Wisconsin Avenue, Milwaukee, WI 53202-4797, 1-866-664-7737, member FINRA and SIPC

www.northwesternmutual.com

90-1899 (0786) (REV 0818)