Sukh Randhawa Senior Investment Officer

Sukh RandhawaSenior Investment Officer

A collaborative effort between the Department

of Insurance, insurance companies, affordable

housing agencies, economic development

organizations and community advocates.

Established in 1996, this voluntary program

facilitates insurance industry investments that

benefit California’s environment and its low-to

moderate income and rural communities.

COIN Team

Sukh Randhawa, Senior Investment Officer

Mr. Randhawa joined COIN in 2008. His career began in the finance industry at Wells Fargo. He later moved to State Street Corporation

where he occupied supervisory roles in operations and fund accounting. At COIN, Mr. Randhawa is responsible for the policy formulation and

administration of the COIN Program’s mission. Mr. Randhawa applies his quantitative background to analyzing insurers’ investment across

the fixed income, cash-equivalent, real estate, and private equity sectors. He also researches and compiles data, analyzes and evaluates risks,

and reports findings and recommendations to CDI Executive Management, insurers, and nonprofit and for-profit organizations in support of

CDI and COIN’s mission, vision, and strategic objectives.

Vic Chima, Investment Officer

Mr. Chima joined COIN in 2014. Since joining COIN, he has worked on CDFI certifications and renewals, high impact investment bulletins,

and allocating COIN CDFI Tax Credits. Prior to joining COIN, he worked as an Investment Officer at CalPERS managing the daily

reconciliation/forecasting of cash balances for Fixed Income and Global Equity portfolios. He also worked as a Trading Liaison at State Street

Bank where he ensured compliance and accurate accounting of trade related activity, dividends, interest, settlement, and corporate action

events. Mr. Chima holds a Bachelor of Science degree in Business Administration from California State University, Sacramento.

Peter Streit, Investment Officer

Mr. Streit joined COIN in 2016. Previously, Mr. Streit was a Senior Equity Research Analyst for Nuveen Investments' affiliate, Santa Barbara

Asset Management, where he covered the insurance and overall financial services industries. Prior to working in the asset management

industry, Mr. Streit was Senior Equity Research Analyst at investment banking firm Williams Capital Group in New York City covering the

insurance industry. Mr. Streit also previously worked in the equity research departments at investment banks, UBS and Dean Witter, where he

covered the insurance industry. He holds a bachelor’s of science degree in finance with concentrations in investments and mathematics from

the University of Illinois at Urbana/Champaign. Mr. Streit was an active volunteer member of the CFA Society Los Angeles, where he sat on

both the Alternative Investments and Career Development Committees, and was the 2018-2019 James Fletcher Leadership Award recipient.

Anna Gragg, Investment Officer

Ms. Gragg joined COIN in 2006 after acquiring a strong background in project finance and loan assessment at the state level. Prior to COIN,

Ms. Gragg was involved in Project Management at CALTRANS. At the Department of Housing and Community Development she assessed

loan portfolios for affordable housing and at the Office of Statewide Health Planning and Development she served as a Health Facilities

Construction Loan Financing Specialist. Ms. Gragg is a graduate of the Business Administration Program at California State University,

Sacramento, where she also received a Master of Public Policy and Administration.

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COIN partners with organizations to source

and structure investments that promote

social, economic, and environmental benefits

in the State of California.

COIN solicits these investments to the

insurance industry to raise capital into these

socially responsible projects.

Advise Commissioner and COIN on the best

methods to increase the level of insurance

industry participation with and capital into the

program.

Facilitate contacts among executives at insurance

companies and asset managers, impact

investment managers, and community

development financial institutions.

Guide COIN in generating investment ideas and

strategies that are attractive to insurer investors and

provide social or environmental benefits, especially

affordable housing and green investments.

COIN Qualified Investments are financially

sound and provide positive social impact and

environmental benefits to the State of

California.

Investments are COIN-qualified according to

the criteria established by California Insurance

Code 926.1, and do not depend on the source

of the investment, whether from COIN directly

or initiated by the insurer or asset manager.

Examples include:

Social Benefit:

Affordable Housing

Community Facilities

◦ Health Care

◦ Social Services

◦ Education

Economic Development

◦ Job Creation

Environmental Benefit

Renewable Energy

◦ Solar Energy

◦ Wind Power

Water Efficiency

Transit-Oriented Development

Focus on High Impact Investments◦ These are investments that are responsive to

community needs and have a high degree of

positive impact on the environment and economic

welfare of low-to-moderate income individuals,

families or communities in urban or rural areas.

◦ Sectors:

Affordable housing projects

Green Investments

Is an online portal that links those seeking capital for socially responsible investments with insurers looking to make COIN qualified investments.

Organizations that are looking for capital can submit their application on the Marketplace to be approved as a COIN Investment Bulletin.

Investment contacts at Insurance Companies can create user accounts to view approved Opportunity Bulletins.

COIN maintains an open window for the

Investment Bulletin application process, with

applications to be continuously received year

round on the Impact Investment Marketplace.

COIN Staff Analysis - Three Guiding Principals:

Provide either proven social impact to low-to-moderate income people or communities and/or environmental benefit in California.

Provide financially sound returns for their respective asset class.

Investments must have some percentage of its total capital focused in California.◦ We prioritize applications that have more than 50%

or $100 million in California.

Those investment proposals which meet the

guiding principals for a COIN Investment

Bulletin will be made available on the

Marketplace and communicated to all

insurance companies doing business in

California and asset managers for these

insurers.

COIN communicates and visits with insurer and

asset manager contacts throughout the United

States who held in aggregate $7 trillion of

investible assets at year-end 2019.• Distribution list of over 800 contacts at over 300

insurers and asset managers.

• In-person meetings, conference calls with top

insurers and asset managers throughout the United

States.

• Target marketing based on asset class, investment

duration, geographic region, benefit type, or other

desired characteristic.

Insurance companies that are admitted to do business in California and write in excess of $100 million in direct written premiums are required to report their social and environmental impact investments to the department through the Community Investment Survey (CIS) Data Call.

The next Data Call will be due on COIN on July 1, 2021. The high level metrics will include type of investment, total amount invested and the sector in which it benefits.

Total COIN qualified Investments◦ 2015 - $22 Billion

◦ 2012 - $9 Billion

High Impact Investments◦ 2015 – $6 Billion

◦ 2012 - $2 Billion

Green Investments◦ 2015 -$8 Billion

◦ 2012 - $2 Billion

Historically, COIN set a goal for insurance companies to invest 1% of their CA premiums. ◦ Not an accurate represent what should be invested, since

we are comparing total investments to one year of premiums collected.

A potential goal, insurance companies hold 1% of their invested assets into COIN Qualified Investments. Here are some other factors to consider after the 2021 CIS Data Call.◦ Total premiums collect in CA vs the US?

◦ Average percent of insurance companies portfolio invested in CA?

◦ Different benchmarks for CA domiciled insurance companies.

Organizations that are approved as COIN Bulletins are subject to report detailed metrics through the Impact Investment Marketplace –Investment Metrics Survey. These metrics will be collected annually.

Metrics include, but not limited to:

◦ Any Insurer Investors Dollar Amount and date invested

◦ Affordable Housing Rental or Ownership

◦ Jobs created Full Time or Temporary

◦ Number of Small Business loans Women owned

Minority owned

Veteran owned

◦ Number of Community Facilities financed Child care

Healthcare

Human social services.

◦ Renewable Energy Projects Amount of energy produced