Degree of Honor Announces Merger with Catholic Financial Life

In December 2016, the Degree of Honor and Catholic Financial Life boards of directors entered into a merger agreement.

Degree of Honor’s merger into Catholic Financial Life is positive news for our Members. Not only will their life insurance and annuity policies be backed by a larger and stronger fraternal, but the core values of Degree of Honor and Catholic Financial Life have always been the same: family, faith, and community.

For a message from our CEO & a copy of the Notice of Merger, click here.

For a copy of the Agreement’s Representations, Warranties & Covenants, or “Attachment A,” click here.

For more information about how the details of the merger might affect you or your policy, and for FAQs, click here.

Please peruse the list of questions and answers related to the upcoming merger of Degree of Honor with Catholic Financial Life.

If you have any questions that are not answered below, feel free to contact the Home Office at 651-228-7600 or 1-800-947-5812.

Frequently Asked Questions

Why is Degree of Honor merging?

Over the past two years, our CEO and the board of directors have been working diligently to fully understand the strengths and weaknesses of Degree of Honor. Like many insurers, we continue to be challenged by low interest rates, volatility in our mortality, and lack of robust surplus to fund new initiatives.

One of the key considerations in shaping our future was whether or not we can continue on our own. While we could continue in the short term, the challenges present more risk than would be prudent for us to continue taking on alone. The board felt strongly that it was important for Degree of Honor to make this transition while the company was in a position of financial and strategic strength, and only if we found a partner that was willing and able to address our goal for key stakeholders – first and foremost, our members.

We believe Catholic Financial Life is the best possible partner, and we are excited to continue onto the next chapter of Degree of Honor’s long history of service to our members.

Was a merger the only option?

Much thought was given to this decision by the board of directors, and we believe a merger is a necessary next step given the outlook of our book of business and future profitability. While we expect to have positive financial results on business written to date, the mortality volatility, economic environment outlook and surplus constraints prohibited us from investing in future growth opportunities.

Degree of Honor and Catholic Financial Life have strong alignment. Both are faith-based membership organizations, with shared values that include family, community service, education, and patriotism. By joining Catholic Financial Life, Degree of Honor has the opportunity to continue its fraternal purpose and identity.

We are excited about this opportunity. Together, our combined societies will have the capabilities to serve more members and meet more needs by virtue of their combined fraternal and financial resources.

Why Catholic Financial Life?

The board of directors did not take this decision lightly. We believe it was a required next step given the outlook of our book of business and future profitability. While we expect to have positive financial results on business written to date, the mortality volatility, economic environment outlook and surplus constraints prohibited us from investing in future growth opportunities.

Together, the societies will have additional capabilities to serve more members and meet more needs by combining the strengths of their fraternal and financial resources. The merger is expected to create opportunities for greater efficiencies in the home office and improved overall financial strength to back the promises made to members in our insurance products.

Both societies have long and rich histories dating back to 1868, nearly 150 years — Degree of Honor through its affiliation and start as the women’s auxiliary of the Ancient Order of United Workmen. Catholic Financial Life through one of the four companies coming together to form today’s modern society.

The organizations have strong alignment. Both are faith-based membership organizations, with shared values that include family, community service, education and patriotism.

We are excited about this opportunity. It allows Degree of Honor to continue its fraternal purpose and identity while gaining the additional financial strength and resources of Catholic Financial Life. For Catholic Financial Life, it creates an opportunity to increase scale and gain operational efficiencies.

What will our company name be?

Degree of Honor lodges will continue under the Degree of Honor name. Because Catholic Financial Life is the surviving entity, and Degree of Honor will merge into Catholic Financial Life, and Catholic Financial Life will honor all insurance and annuity obligations.

What does this mean for the rest of the year?

In 2017, members will see very little change. Fraternal lodges and programs will remain very much the same, as will member benefits. Insured members will receive an endorsement to their policies by September 25, 2017 that will change the underwriting company from Degree of Honor to Catholic Financial Life.

Fraternal support will continue to be offered from the Degree of Honor home office in St. Paul.

Can I still call with questions about my policy?

Throughout 2017, you may continue to pay your premiums, process claims or correspond regarding other policy-related requests by contacting Degree of Honor at either:

Degree of Honor at: PO Box 7420, St. Paul, MN 55107-0420

Degree of Honor at: PO Box 3211, Milwaukee, WI 53201-3211

For questions about your current insurance policy, please feel free to continue to call Degree of Honor’s toll-free number at 800-947-5812 and press 2 or email us at service@catholicfinanciallife.org.

If you are interested in additional life insurance or retirement annuities, please call that same Degree of Honor toll-free number, 800-947-5812 and press 3 or email us at service@catholicfinanciallife.org.

What about Degree of Honor Lodges & Service Clubs?

In 2017, you will see very little change. Fraternal lodges and programs will remain the same, as will member benefits. Fraternal support will continue to be offered from the Degree of Honor home office in St. Paul.

In the coming months, we will work with Catholic Financial Life to review our fraternal programs and benefits. Over time, we will consolidate programs and benefits taking the best from each company. Additionally, the intention is for the Degree of Honor name and brand to persist.

As always, if you have questions regarding our fraternal outreach or benefits, reach out to Michelle Alberg in the home office.

Will I still receive HONOR Magazine?

You will still receive communication periodically to keep you informed of important Degree of Honor updates, as well as reminders regarding our other member benefits. All other member benefits such as our educational loans and scholarship programs, family support benefits, and Volunteer of the Year program will remain in effect at least through 2017, as well as the Degree of Honor Online Museum.

What about the strategic work regarding caregivers?

One of the things that we felt very fortunate about with Catholic Financial Life was their interest in pursuing new ways to support the underserved and overlooked with new fraternal and financial strategies.

Early in the year, leadership of both Degree of Honor and Catholic Financial Life will re-examine the work we’ve done to date and our strategies for the future. From there, we will jointly develop plans for bringing new offerings to market.

What about the board of directors?

Until the merger has been approved by the state insurance departments and both companies’ boards, we are separate organizations, and the board will operate as usual.

During transition and through 2018, our board of directors will serve as the Degree of Honor advisory committee. Their roles as the board of directors include:

advise the Catholic Financial Life president & CEO on issues related to merger, preservation of the Degree of Honor legacy and integration of our members and their lodges or service clubs into Catholic Financial Life;

recommend uses of the funds of the Degree of Honor foundation that will be transferred into the Catholic Financial Life foundation; and

What happens to the Degree of Honor Home Office?

Currently, the expectation is that by the end of 2017, all administration and member services functions will be transitioned to Catholic Financial Life’s headquarters in Milwaukee, WI.

It is Catholic Financial Life’s intention to keep a location in St. Paul through year-end 2017 and potentially longer, largely in support of Degree of Honor’s fraternal mission.

Did we consider other partners beyond Catholic Financial Life?

Earlier this year, the board made the decision to seek a merger partner, and developed a list of qualities we wanted to have in a partner. Our primary focus was protecting our members and honoring those commitments.

The board considered seven different fraternals very closely, and talked to several others.

After a thoughtful and thorough process, the board of directors came to the agreement to merge Degree of Honor with Catholic Financial Life. We believe that Catholic Financial Life is the best fit and offers our members the brightest future.

This merger allows Degree of Honor members to continue their involvement with a faith-based membership organization with a deep commitment to its members and the communities they serve.