Malpractice Insurer Joins in Massachusetts Industry Initiative

Boston-based ProMutual Group, A medical malpractice insurer in the Northeast, says it is participating in The Property & Casualty Initiative.

The Initiative was formed as a limited liability company in response to recently enacted Massachusetts tax reform legislation. The goal of that legislation is to encourage insurance companies to invest in loans and equity investments targeted toward Bay State low and moderate income individuals and businesses that serve their needs.

The Initiative plans to invest in housing, health centers and small businesses in low and moderate-income areas. Investments will also be made in economic development projects, and minority and women owned businesses. Investments will be channeled through intermediaries and community-based lenders.

According to ProMutual, the Initiative will operate for 24 years and it anticipates investing up to $100 million throughout the Commonwealth. Funds will come from the participating property and casualty insurance companies.

In addition to being an initial signatory member; ProMutual's Jack Donehue, senior vice president and CFO, serves on the Investment Committee of The Initiative. He said, "While there are tax advantages for a company to participate in The Property & Casualty Initiative, it is also a way for insurance companies to give back to the communities in which they operate."

Stacey Townsend, former director of the MassBusiness Community Investment Group, was recently appointed the executive director by the executive committee.

In addition to ProMutual Group, signatory members include Liberty Mutual Group, Fitchburg Mutual Insurance Company, The Premier Insurance Company of Massachusetts, CGU Insurance Group, Holyoke Mutual Insurance Company, The Norfolk & Dedham Group, Quincy Mutual Fire Insurance Company and Plymouth Rock Group. The Initiative's offices are located on Berkley Street in Boston.