Neenah insurer Equitable Reserve to merge into Modern Woodmen [Milwaukee Journal Sentinel]

May 24--Equitable Reserve Association, a fraternal life insurance company based in Neenah, and Modern Woodmen of America, a fraternal life insurance company based in Rock Island, Ill., have signed a letter of intent to combine.

Equitable Reserve's 19,000 members would become members of Modern Woodmen once the transaction is completed. Modern Woodmen also would take over Equitable Reserve's operations, assets and liabilities.

"This decision was made in the interest of protecting our members' benefits and ensuring those benefits are available when needed," Mel Rambo, president of Equitable Reserve, said in a statement.

Twenty-eight people in Equitable Reserve's headquarters in Neenah are expected to lose their jobs once the two companies are combined, according to the announcement.

Modern Woodmen does not expect to hire additional staff once the transaction is completed but Equitable Reserves sales agents will be offered jobs with Modern Woodmen.

Equitable Reserve, founded in 1897, operates in 12 Midwestern states and the District of Columbia. It had $128 million in assets and $505 million of life insurance in force at the end of 2011.

The company has a $6.3 million net surplus in 2010, according to its website.

Modern Woodmen, founded in 1883, is the third-largest fraternal financial services organization in the United States, with more than 760,000 members, 60 regional offices and more than 800 financial representatives nationwide.

At the end of 2011, Modern Woodmen had more than $11.4 billion in assets and $34.3 billion of life insurance in force.

The insurance company has an A+ Superior rating from A.M. Best, an independent rating agency. A+ Superior ranks second highest of 15 ratings.

"In Modern Woodmen, we see a partner who, with more than $11 billion of assets and 760,000 members nationwide, has the ability to continue to grow and provide the long-term protection of our members' insurance and annuity benefits," Rambo said in the news release.

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