Nuveen and State Regulators Partner on Industry-First Impact Investment Strategies for Insurers

Nuveen, the $1.3 trillion investment manager of TIAA, is collaborating with a coalition of state regulators from California, Connecticut, Iowa, New York and Wisconsin to develop strategies designed to pair capital from insurance companies and other sources for positive social and environmental impact.

These strategies would align the commitment of major insurers, foundations, endowments and family offices to invest for impact, while addressing key barriers that have historically prevented meaningful allocations to impact-focused assets.

This initiative will enable investment in affordable housing; companies that are increasing resource efficiency, mitigating carbon emissions and expanding access to affordable basic services; projects to enhance commercial real estate energy efficiency, and sustainable energy infrastructure.

"The state coalition has been an invaluable partner to Nuveen, underscoring the dedication of the industry to unlocking insurance company capital for positive outcomes while meeting insurers' need for stable, secure investments," said Joseph Pursley, Head of Insurance, Americas.

"This collaboration with Nuveen and state regulators is a significant step forward in harnessing the power of insurance capital to drive positive change in areas like affordable housing, sustainable energy, and climate resilience," said Connecticut Insurance Commissioner and NAIC President Andrew N. Mais. "By aligning capital with impact, we foster an investment landscape that strengthens financial stability and supports a healthier, more sustainable future for our communities and building resilience across the economy."

"Insurers are keenly attuned to the financial implications of social and environmental change for their business and, just as importantly, the opportunity to invest for beneficial impact that can help counter those changes," said Mr. Pursley. "Yet, impact investments currently represent just a fraction of the $5+ trillion of life insurance industry-invested assets, with many insurers holding back because of a perceived lack of competitive returns, the inability to scale their investment and constraints on the kind of assets that insurers can hold."

Supported by Deep Expertise in Impact Investing, Strategies for Insurers
Backed by TIAA, Nuveen has long been a leader in impact investing. The firm pursues positive social and environmental impact alongside competitive financial returns across various asset classes, offering a range of investment opportunities in both private and public markets. Today, Nuveen has deployed over $31.4 billion in strategies that deliver measurable social and environmental benefits to people, communities, and the planet.

"As a global leader in impact investing, Nuveen is well-positioned to deliver innovative investment solutions that solve complex problems," said Amy O'Brien, Global Head of Responsible Investing. "Using the tools of blended finance and Nuveen's breadth of impact capabilities, we created a structure that can serve as a template to scale up insurance assets invested for impact."

Nuveen has a deep history of creating structures to meet the needs of U.S. insurance companies, supported by its insurance client-focused teams' deep expertise in complex portfolio construction and reporting challenges associated with managing sophisticated asset pools.

The firm has approximately $320 billion in insurance industry assets under management globally across more than 125 clients as of 31 December 2023.

Media Contact
Sally Lyden | [email protected] | (m) 646.984.1913