Tax Credits Awarded to Insurers for Investing $23.2 Million in California’s Underserved Communities

SACRAMENTO, Calif., Oct. 14 -- The California Department of Insurance issued the following news release:

Insurance Commissioner Dave Jones announced $4.6 million in tax credits awarded to insurance companies or insurance groups that made more than $23.2 million in capital available to Community Development Financial Institutions, which bridge the growing gap between the loans and services available to the economic mainstream and those offered to low-income people and communities.

Among others, tax credit allocations were awarded to:

* Allianz Insurance Group for its $1 million investment ($200,000 tax credit allocation) into ProAmerica Bank. This investment is being used as a loan to Clinica Monsignor Oscar A. Romero, a nonprofit providing comprehensive medical services to low income men, women, and children living in Los Angeles County. The project will result in 17 jobs.

* CSAA Insurance Group, a AAA Insurer for its $10.7 million investment ($2.14 million tax credit allocation) into Enterprise Community Investment.

The investment is being used to rehabilitate two affordable rental housing properties located in Morgan Hill and Oakland and will create more than 300 jobs in the first year.

* UnitedHealthcare for its $11.5 million investment ($2.3 million tax credit allocation) into Enterprise Community Investment. This investment is being used to acquire and rehabilitate Connections Housing in downtown San Diego, a low-income housing project, to provide residents access to supportive services, including mental healthcare, a medical clinic, substance abuse treatment, legal aid, and other services. The project is expected to create 200 jobs in its first year.

"I want to thank Allianz Insurance Group, CSAA insurance Group and UnitedHealthcare for dedicating part of their investment portfolios to support these important community investments," said Commissioner Jones.

"Being a socially-responsible insurance company is meaningful to the regions they serve."

The awards were presented at the California Organized Investment Network's Inaugural Investment Summit on September 17, 2014, at the Federal Reserve Bank in San Francisco with more than 100 insurance, community, and financial leaders in attendance.

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