ESG & Tax Credit Equity Opportunities

For Insurance Companies

Insurance companies have been committed to responsible investing for years. They are dedicated to a long-term view of the risks and opportunities across assets and asset classes considering fundamental financial analysis and what now falls into the category of environmental, social and governance (ESG) factors. Investment strategies range from disciplined asset liability management to impact investing to diversity inclusion and investing to mitigating climate changes.

ESG investing is vital to align corporate dollars with value preferences to better position insurance companies for long-term success in the marketplace. Yet most insurance companies are very conscious of maintaining adequate cash flow reserves in the economic, social and climatic uncertainty that is front and center in the world today. Insurance companies simply cannot afford to make wild expenditures to support their ESG initiatives or their sustainability plans with the current uncertainty surrounding potential claims. Monarch Private Capital’s ESG investments allow insurance companies to redeploy dollars earmarked for federal income tax and state premium taxes to be invested in funds addressing their ESG objectives, satisfying their tax obligations while providing positive financial returns. Monarch’s ESG funds allow corporations to derive ESG benefits and financial returns out of capital, which has historically been wasted in empty tax payments. In the future, insurance companies will be criticized if their tax payments are simply wasted rather than used to narrow the affordable housing gap, create a more sustainable future, or preserve history and contribute to urban redevelopment. Capital and margins are always tight in the insurance industry. Simply using corporate cash to make mere tax payments is wasteful when Monarch’s ESG funds provide so many highly productive alternatives.

Whether your strategy is to narrow the affordable housing gap, create a more sustainable future, or preserve history and contribute to urban redevelopment, consider the many opportunities Monarch has to redirect your tax dollars to fuel those specific preferences and see the positive, quantifiable outcomes.   

Find out how to redeploy dollars, earmarked for federal income tax and state premium taxes, to funds that address your ESG objectives and tax obligations while providing positive financial returns.

Insurance Investment Opportunities

Monarch has never believed that one size fits all when it comes to ESG investing. As a leading ESG fund manager, Monarch develops customized structuring solutions enabling insurance companies to participate in defining fund parameters to meet their unique ESG, financial, tax, and treasury objectives. With sufficient notice, interest and commitment, our acquisitions team can secure credits in these areas.

StateTax Credit Programs% Insurance Premium
Tax Liability Offset
Transfer ProcessSatisfies ESG
ArkansasHistoric Rehabilitation100%Allocable & TransferableYes
ArkansasLow Income Housing100%AllocableYes
CaliforniaLow Income Housing100%Allocable & TransferableYes
ColoradoLow Income Housing100%AllocableYes
ConnecticutHistoric Rehabilitation100%Allocable & TransferableYes
GeorgiaLow Income Housing100%AllocableYes
MassachusettsEntertainment100%Allocable & Transferable
MinnesotaHistoric Rehabilitation100%AllocableYes
MissouriLow Income Housing100%Allocable & TransferableYes
NebraskaHistoric Rehabilitation100%Allocable & TransferableYes
NebraskaLow Income Housing100%AllocableYes
New JerseyGrow NJ100%TransferableYes
New JerseyERG100%TransferableYes
North CarolinaHistoric Rehabilitation100%AllocableYes
North CarolinaEnergy Investment50%AllocableYes
OhioHistoric Rehabilitation100%TransferableYes
OklahomaHistoric Rehabilitation100%Allocable & TransferableYes
OklahomaLow Income Housing100%Allocable & TransferableYes
PennsylvaniaHistoric Rehabilitation100%Allocable & TransferableYes
Rhode IslandEntertainment100%Transferable
South CarolinaAbandoned100%AllocableYes
South CarolinaLow Income Housing100%AllocableYes
South CarolinaMill100%AllocableYes
TexasHistoric Rehabilitation100%Allocable & TransferableYes
WisconsinHistoric Rehabilitation100%TransferableYes

Contact us for more information about ESG Investing, state and federal tax credits.