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.
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.
|State||Tax Credit Programs||% Insurance Premium|
Tax Liability Offset
|Transfer Process||Satisfies ESG|
|Arkansas||Historic||100%||Allocable & Transferable||Yes|
|Arkansas||Low Income Housing||100%||Allocable||Yes|
|California||Low Income Housing||100%||Allocable & Transferable||Yes|
|Colorado||Low Income Housing||100%||Allocable||Yes|
|Connecticut||Historic||100%||Allocable & Transferable||Yes|
|Georgia||Low Income Housing||100%||Allocable||Yes|
|Massachusetts||Entertainment||100%||Allocable & Transferable|
|Missouri||Low Income Housing||100%||Allocable & Transferable||Yes|
|Nebraska||Historic||100%||Allocable & Transferable||Yes|
|Nebraska||Low Income Housing||100%||Allocable||Yes|
|New Jersey||Grow NJ||100%||Transferable||Yes|
|North Carolina||Energy Investment||50%||Allocable||Yes|
|Oklahoma||Historic||100%||Allocable & Transferable||Yes|
|Oklahoma||Low Income Housing||100%||Allocable & Transferable||Yes|
|Pennsylvania||Historic||100%||Allocable & Transferable||Yes|
|South Carolina||Low Income Housing||100%||Allocable||Yes|
|Texas||Historic||100%||Allocable & Transferable||Yes|