Nuveen, the $1.3 trillion investment manager for retirement giant TIAA, is working with state regulators from California, Connecticut, Iowa, New York and Wisconsin to develop strategies designed to pair capital from insurance companies and other sources to create more 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,” Nuveen said in a press release Monday.
The collaboration will focus on bringing more investment into affordable housing, real estate energy efficiency and sustainable energy infrastructure as well as bankrolling companies that are increasing resource efficiency, mitigating carbon emissions and expanding access to affordable basic services, Nuveen said.
“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 Joseph Pursley, Nuveen’s head of insurance, Americas.
“Yet, impact investments currently represent just a fraction of the $5-plus 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,” he said.
Pursley said the coalition of state regulators 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.”
Connecticut Insurance Commissioner and NAIC President Andrew N. Mais said the 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.”
“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,” he said.
Backed by TIAA, Nuveen has been a leader in impact investing. The firm said it 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.
Nuveen has deployed over $31.4 billion in strategies that deliver measurable social and environmental benefits to people, communities and the planet, its press release said,
“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.”
The firm had approximately $320 billion in insurance industry assets under management globally across more than 125 clients at the end of 2023.
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