Founded in 1878 in St. Paul, financial services company Catholic United Financial will merge with Milwaukee-based Trusted Fraternal Life in January.

The merger will result in a nearly $3 billion insurance organization with over 215,000 members, according to a company news release. Catholic United Financial, which is now based in Arden Hills, will retain its name and identity within the Trusted Fraternal Life family of brands.

“We are so much alike from a culture standpoint and the members that we serve,” said Michael Ahles, president, CEO and board chair of Catholic United, on  Tuesday.

“Our members are going to get the same connection and member advisers, we are just going to be a part of a bigger organization,” Ahles said, adding that the merger will allow the company to offer its customers updated insurance products and improved services.

Catholic United is a member-owned, not-for-profit insurance company with nearly $1 billion in assets and 75,000 members across Minnesota, North Dakota, South Dakota, Iowa and Wisconsin.

“Our intent is to retain as many employees as we can,” Ahles said. “There will be a small number of people that will depart as a result of the merger,” he said, noting that they are still working through the details.

“This merger reinforces our shared values and dedication to growing our business while engaging more people to live financially secure, purposeful lives,” Ahles said in a news release. “Joining forces with Trusted Fraternal Life allows the Catholic United Financial brand, volunteer network, and Catholic community efforts to continue for future generations.”

Trusted Fraternal Life

Established in March by the 155-year-old Catholic Financial Life, Trusted Fraternal Life is a family of brands that aims to build “the NextGen fraternal benefit society,” according to a company news release.

The fraternal life insurance organization, which merged with Woman’s Life in September, is on track to become the sixth largest such fraternal organization in the U.S. with the addition of Catholic United.

Trusted Fraternal Life and Catholic United Financial have worked together over the years as part of a fraternal investment consortium, developing an insurance technology system and shared services platform, and serving on the board of directors of the American Fraternal Alliance, said John Borgen, president and CEO of Trusted Fraternal Life, in a statement announcing the merger.

“We are honored and excited that Catholic United Financial will join Trusted Fraternal Life,” Borgen said, in a news release. “We are well on our way to building the NextGen fraternal and achieving our purpose to facilitate consolidation in the fraternal sector, while preserving unique identities and traditions, and achieving the necessary scale to be relevant, to compete, and to grow.”

The merger will go into effect Jan. 1 pending approval from Minnesota and Wisconsin regulators.

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