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

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Nov 18, 2024, 08:00 ET

NEW YORK, Nov. 18, 2024 /PRNewswire/ -- 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 strategies¹that 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

About Nuveen
Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.3 trillion in assets under management as of 30 Sept 2024 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com.

Important information on risk
Past performance is no guarantee of future results. All investments carry a certain degree of risk, including the possible loss of principal, and there is no assurance that an investment will provide positive performance over any period of time. Certain products and services may not be available to all entities or persons. There is no guarantee that investment objectives will be achieved.

Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well.

Nuveen considers ESG integration to be the consideration of financially material ESG factors within the investment decision making process. Financial materiality and applicability of ESG factors varies by asset class and investment strategy. ESG factors may be among many factors considered in evaluating an investment decision, and unless otherwise stated in the relevant offering memorandum or prospectus, do not alter the investment guidelines, strategy or objectives. Select investment strategies do not integrate such ESG factors in the investment decision making process.

¹ 30 Sept 2024; Impact strategies may have a varying mix of impact, ESG leaders, and traditional securities. Assets under management is inclusive of underlying investment specialists and any sleeves managed on behalf of TIAA's General Account with specific responsible investing criteria or characteristics inherent to the investment thesis/asset class. Capabilities can be reflected in strategies/vehicles across fund families, including affiliates and sub-advised agreements.

SOURCE Nuveen