California: Insurers Show off Their Good Works

Prudential Insurance Company of America, part of Prudential Financial Inc., Newark, N.J. (NYSE:PRU), says it has invested more than $1 billion in social investments since it started a formal social investment program in 1976.

The social investments unit "collaborates with partners who share the dedication to create healthy, sustainable communities," Prudential says. "These investments support projects that develop and preserve affordable housing, improve access to quality education, and connect neighborhoods and residents to mainstream economic opportunities."

Los Angeles and San Francisco are two of the focuses of program investments, Prudential says.

The social investments unit also invests in microfinance and social venture efforts in Mexico, Korea, Brazil, Taiwan, Japan, China and India, Prudential says.

In related news, the Association of California Life and Health Insurance Companies, Sacramento, Calif., and the Association of California Insurance Companies, Sacramento, a property-casualty group, have joined with several and other state and national groups to supplement the individual company reports with a report on "The Insurance Industry's Impact on California's Economy."

The groups note that the 784 p-c companies operating in the state and the 456 life and health companies in the state own about $45 billion in California municipal bonds, have invested about $118 billion in certified Community Development Financial Institutions in the state, and have made about $19 billion in investments through the California Organized Investment Network (COIN), which was founded in 1996 to invest in low-income and moderate-income communities.

Insurers also support California communities by making charitable contributions and grants, and by supplying volunteers, the groups say.