MARSHALL — A local company will be making a major impact on business education at Southwest Minnesota State University.

On Thursday, SMSU and North Star Mutual Insurance Company of Cottonwood announced a partnership that will lead to a $3 million investment in the university’s School of Business.

The partnership will establish the North Star Mutual School of Business, as well as provide funding for academic programs, facilities, and scholarships, university spokespeople said.

“We are grateful to North Star Mutual and their leadership team who see the value in further investing in the next generation of SMSU students,” said SMSU President Kumara Jayasuriya. “This partnership will help us expand opportunities for students in southwest Minnesota, which is critical to our mission and allows us to continue meeting the workforce needs of our regional employers.”

As part of the partnership, North Star Mutual receives naming rights to the business school, and will have a role on a special advisory committee made up of SMSU faculty and local business representatives, Thursday’s announcement said. The North Star Mutual School of Business will house university programs in accounting, finance, management, marketing and business administration, while supporting programs like agribusiness and hospitality management. SMSU will also be enhancing its curriculum in risk management as part of the new partnership.

The partnership between the university and North Star Mutual will also establish new scholarship and internship opportunities for SMSU students, the announcement said.

“We are very excited to be in a position to support Southwest Minnesota State University in this way,” said North Star Mutual President and CEO Pete Hellie. Hellie is also a 1984 graduate of SMSU. “We see it as an investment in the growth and development of future leaders, and ultimately, the communities of southwestern Minnesota and beyond.”

North Star Mutual is a property-casualty insurer with an operating territory that includes eight Midwestern states. North Star Mutual has 280 full-time employees, including 220 employees at their Cottonwood office and about 60 employees in the field.

North Star Mutual currently employs 55 SMSU graduates, who work in areas including underwriting, claims, accounting, IT, and research and development, the announcement said.

“SMSU is a great school and attracts people to our area from all over the Midwest and other parts of the world,” said Hellie. “For us, and many other area businesses, it’s important to contribute to the success of the university and the next generation of people who will be making a difference in our world and in our industries.”

“We are very fortunate and thankful to have a regional partner like North Star Mutual publicly supporting SMSU and affirming the quality of our faculty, staff, and students. We are very excited for what the future holds within the North Star Mutual School of Business and look forward to building upon our partnership,” said Jayasuriya.