American Council of Life Insurers Announces Investment Partnership Focused on Affordable Housing, Communities of Color
The nonprofit investment partnership will support community development with a focus on sustainable, affordable housing.
ACLI Chairman
"ACLI and America's life insurance companies are committed to harnessing the capital strength of the life insurance sector to enhance impact investments and help make housing affordable and sustainable in underserved communities," Davison said.
"Our aim is to establish an investment ecosystem that empowers life insurers to partner with philanthropy, private capital and government-sponsored entities to meet fundamental needs of underserved communities, especially communities of color, beginning with affordable housing," he said.
"This investment partnership was born through ACLI's Economic Empowerment and Racial Equity (EERE) initiative, launched in 2020," Neely said. "We said then that the fight to end racial inequity would be an ongoing effort. Economic conditions in underserved communities will not be remedied overnight. This partnership demonstrates we're in this fight for the long run.
"What life insurers bring is our well-established expertise in making longer term investments, with all our due diligence, in a way that makes a difference for people and communities," she said.
The partnership will be an ACLI affiliate making high quality investments that align with state regulations governing life insurance company investments to generate competitive market rate returns.
"The partnership will provide a way for companies already investing in communities and affordable housing to amplify their efforts. It will also provide a way for companies that have wanted to invest in positive social change but have fewer resources in this area to invest powerfully and profitably," Neely said.
"With an inadequate supply of affordable housing, we are laying a strong foundation for significant, long-term contributions to advancing racial equity in America," Davison added.
FOUNDING PARTNERS (36)
AIG
American Family
Boston Mutual
Canada Life
Equitable
F&G
Global
Guardian
Lincoln
MassMutual
Modern Woodmen
National Life
Nationwide
OneAmerica
Pacific Life
Principal
Protective
Prudential
Symetra
Thrivent
TIAA
Transamerica
Unum
UTG
INVESTMENT PARTNERSHIP FACT SHEET
* Life insurers have for many years been engaged in Impact Investing to help underserved populations of people. The investment partnership initiative is designed to enhance these efforts.
* The investment partnership initiative aims to be a "force multiplier," where community and housing investments grow more significant through life insurance industry partnership with philanthropy, private capital and government-sponsored entities.
* Additional partners in investment partnership from outside the life insurance industry will continue to be solicited throughout the year.
* Specific community and affordable housing projects for investing will be identified in the coming months and years. No exact financial target will be set for partnership initiative investments.
* The investment partnership will be a non-profit ACLI affiliation.
* The affiliate
* Investment opportunities will likely include fixed rate, investment grade, long-term life insurance company general account products focused on affordable housing asset classes, from multi-family rental properties to homeownership. Although affordable housing plays a key role in advancing racial equity, some flexibility will accommodate related asset classes that address the needs of underserved communities and generate opportunities for upward mobility. Additionally, investment structures will also accommodate shorter-term equity investments that facilitate efficient capital stacking and enhance scale.
IMPACT INVESTING
Everyone deserves a future they can count on and a plan to get there. Having a safe, affordable place to live is a powerful first step. Housing is a pathway to upward mobility that can endure for generations. That's why America's life insurance companies have joined together to create the industry's investment initiative focused on strengthening communities through affordable, sustainable housing.
We will pair the life insurance industry's long-term investment strategies with on-the-ground expertise from community partners who know what families and communities need to thrive. From land conservation to sustainable materials to high-speed internet, we will open new doors to the capital communities need to sustain high-quality housing and the infrastructure around it.
Our investments will focus on social and financial returns, and profits will be reinvested in communities. We plan to expand our portfolio of investments over time to address other pressing social needs.
For more than 175 years life insurers have done more than protect policyholders. The
SUPPORT FOR THE INVESTMENT PARTNERSHIP
"As an impact investor eager to see more capital reach communities that have been structurally excluded from opportunity, the
"I am thrilled to see the
"The life insurance industry represents a unique, collective force for good in capital markets. I'm delighted to join in this conversation about how leaders across this industry can make strides in helping to close the racial wealth gap by investing in affordable housing across the nation. Creating and preserving affordable homes is the most powerful lever we have to improve the lives of lower- and middle-income families; we're eager to explore how the life insurance industry can play a leading role in advancing the economic well-being of all Americans."
"We are excited to see ACLI and its members launch this initiative to invest in the well-being of families, communities and local economies. By assembling new capital for affordable housing and other critical local needs, ACLI can help bridge gaps in health, wealth and opportunity so that more people can thrive."
"This is a historically significant moment for the affordable housing and community development moment. It is a rare occurrence when a large business sector comes together to support the fundamental needs of low and moderate-income people. The life insurance industry is uniquely positioned to deploy both its financial human and financial capital to a growing American housing crisis"
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