Short History of Lutheran Brotherhood
© Lutheran Brotherhood, as published in the Appleton Post-Crescent
With about $27 billion in assets under management, Lutheran Brotherhood and its affiliated companies offer a variety of insurance and investment products. It provides financial analysis and specialized service to individuals, families and businesses. The company's history begins with the 1917 convention of the Norwegian Lutheran Church of America, when delegates agreed to launch a not-for-profit mutual aid society called "Luther Union." A year later, the society had over 500 members and nearly $700,000 of insurance in force.
By 1929, confident of its future at the end of the Roaring Twenties, Lutheran Brotherhood signed a multi-year lease for the entire 12th floor of the Metropolitan Bank building in downtown Minneapolis. At the time, the 32 home office employees filled only half of that space.
Ten years later, the Lutheran Brotherhood used farm, home and church mortgages to help it weather the Great Depression. The partnership worked both ways, as the company often told embattled members, "If you can just pay the interest, we'll carry you for another year until you get squared around."
To keep pace with its financial growth, the Lutheran Brotherhood dedicated in 1956 a new home office building on the corner of Seventh Street and Second Avenue in downtown Minneapolis. Thousands of people attended the open house for the six-story structure, which was completed for a price tag of $2.5 million.
The company marked a financial milestone in 1958 when it logged $1 billion of insurance in force.
Seeking to branch out from its roots, Lutheran Brotherhood added health insurance to its portfolio of life products in 1962. In its second year, sales of health insurance products grew more than 35 percent, and the program was more profitable by its third year.
The company marked its 50th year in 1967, the year that Lutheran Brotherhood's allocation for fraternal activities passed the $1 million mark for the first time. That dwarfed the $7.5 million that had been set aside in the preceding 49 years. During that same year, the Society reached the $3 billion mark of insurance in force.
In 1970, Lutheran Brotherhood Securities Corp. (LBSC) was organized to distribute and market mutual funds through the Society's field force. During the six-week charter investment offering, more than 12,000 Lutheran Brotherhood members invested nearly $12 million in the first Lutheran Brotherhood fund.
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