Catholic United Financial and the American Fraternal Union Announce Agreement to Merge

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May 19, 2011, 11:28 ET

ST. PAUL, Minn., May 19, 2011 /PRNewswire/ -- Catholic United Financial, a 133-year-old fraternal life insurance company based in St. Paul, Minn., and the American Fraternal Union (AFU), a 113-year-old fraternal life insurance company based in Ely, Minn., are proud to announce a plan of merger.

Catholic United Financial and its 74,000 members will welcome the more than 12,000 members of the American Fraternal Union in the fall of 2011, subject to approval of the merger by members of both societies and customary regulatory approvals.

"This is an opportunity to join two active fraternal societies together under one roof. Our historic companies have a similar fraternal perspective," Michael F. McGovern, president of Catholic United Financial, said. "At the heart of this merger is our desire to serve our members in the best way possible. The merger will ensure the continued strength, quality of service and longevity of our societies. We will continue to adhere to the fraternal benefit society model in the way we conduct business and benevolence."

As of Dec. 31, 2010, the American Fraternal Union reported $53.2 million of insurance in force and total admitted assets of $23.4 million. Catholic United Financial reported $1.9 billion of insurance in force as of Dec. 31, 2010, and total admitted assets of $669 million.

AFU President Richard Kumel stated, "This is a great opportunity for our organization to partner with one of the top-ranked fraternals, in an effort to better serve our members and our mission. By working together, we can accomplish more for our communities and can provide more value to our members."

The Boards of Directors of both companies have approved the final merger agreement and resolved to recommend that the membership of their respective societies vote in favor to adopt the agreement. The combined companies will act under the Catholic United Financial name and brand, with corporate headquarters located in St. Paul, Minn.

Fraternal benefit societies are not-for-profit "membership groups that unite individuals with a common bond, provide them the ability to secure their families' financial security through a variety of life insurance and investment products, and form one of the nation's most effective and efficient volunteer networks." (Source: American Fraternal Alliance, www.fraternalalliance.org)

About Catholic United Financial

Catholic United Financial, founded in 1878 in St. Paul, Minn., is one of the largest fraternal life insurance companies in the Upper Midwest. Formerly known as the Catholic Aid Association, the company serves more than 74,000 members and 163 active councils. The company offers life insurance, annuities and retirement savings products to its members and strives to be the provider of choice for their financial well-being. Catholic United is also a leader in support of the entire Catholic community, offering fraternal benefits such as fundraisers, youth events and scholarships and matching grant programs for Catholic parishes, schools and religious education programs throughout its territory.

About American Fraternal Union

American Fraternal Union was organized in 1898 as the South Slavonic Catholic Union by a group of miners of Slovene descent and of Roman Catholic religious denomination. Its present name was adopted in 1941. AFU's mission is to foster acts of fraternity and to promote good citizenship among its members. AFU members are encouraged to call Brenda Jankowski, Secretary/Treasurer at the AFU Home Office if they have questions about their policies: 1-800-346-1289, ext. 11.

Contact: Deborah Gephart
651-765-4122 or 1-800-568-6670
[email protected]

SOURCE Catholic United Financial