We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • A.M. Best Affirms Credit Ratings of Teachers Insurance and Annuity Association of America and Its Subsidiary

    June 13, 2018 by A.M. Best

    OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aaa” of Teachers Insurance and Annuity Association of America (TIAA) and its wholly owned insurance subsidiary, TIAA-CREF Life Insurance Company (TIAA-CREF Life). TIAA and TIAA-CREF Life are collectively referred to as the TIAA Group. A.M. Best also has affirmed the Long-Term Issue Credit Ratings of “aa” on TIAA’s $1.05 billion 6.85% surplus notes due Dec. 16, 2039, $1.65 billion 4.9% surplus notes due Sept. 15, 2044, $2 billion 4.27% surplus notes due May 15, 2047, and $350 million fixed to floating rate 4.375% surplus notes due Sept. 15, 2054. The outlook of these Credit Ratings (rating) is stable. TIAA and TIAA-CREF Life are domiciled in New York, NY.

    The ratings reflect the TIAA Group’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its very strong operating performance, very favorable business profile and very strong enterprise risk management. The rating affirmations reflect TIAA’s market leading position in the higher education and not-for-profit pension marketplaces. TIAA, together with its companion organization, College Retirement Equities Fund (CREF), enjoys significant economies of scale, and combined they form one of the largest retirement systems in the United States with combined assets under administration of $1.1 trillion as of year-end 2017. TIAA-CREF Life’s primary products are life insurance, individual annuities, funding agreements and separate account guaranteed interest contracts. Individual life and annuity products are marketed to existing customers of TIAA, as well as to the general public.

    The rating affirmations also reflect TIAA’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Risk-adjusted capitalization has been enhanced by its very strong operating performance that has more than offset investment losses in recent years. A.M. Best notes that TIAA maintains significant statutory accounting flexibility to manage its risk-adjusted capital position with the ability to adjust crediting rates on its large in-force block of general account retirement annuities. In addition, TIAA utilizes a conservative approach to valuing certain statutory reserves, and as a result, its balance sheet contains a considerable amount of hidden capital. A.M. Best also notes that TIAA’s current adjusted financial leverage is prudent, and operating leverage is minimal.

    Additionally, A.M. Best views favorably TIAA’s unique liability structure, whereby approximately three-quarters of its general account reserves are not cashable and only can be received as a death benefit or in the form of a periodic annuity payout. Contract holders may transfer funds from TIAA to CREF or to another employer-approved funding vehicle, but typically in the form of a 10-year annuity payout. TIAA’s long insurance liability structure, coupled with its low liquidity needs, allows it to take advantage of typically higher yields offered by investments that are less liquid and of longer duration. TIAA does not provide living benefit guarantees on its variable annuities, and its exposure to guaranteed minimum death benefits is limited.

    A.M. Best also considers TIAA’s investment management capabilities to be extremely strong and notes that the overall investment portfolio has generated moderate levels of investment losses in recent years. Although A.M. Best believes any near-term asset impairments for the group will be more than offset by net operating gains, it remains concerned regarding the group’s sizeable and increasing exposure to real estate assets and Schedule BA assets. A.M. Best believes the potential remains for material credit losses from TIAA’s real estate holdings should the global economy deteriorate.

    Although net operating performance supports the assessment of very strong, A.M. Best notes that the majority of TIAA’s earnings are derived through active spread management of its core pension businesses. However, with the majority of its pension businesses having 3% minimum interest rate guarantees, A.M. Best believes TIAA may be challenged to sustain and improve its historical net operating performance, as it continues to navigate the persistent low interest rate environment. To mitigate its exposure to these relatively high minimum interest rate guarantees over the long term, TIAA utilizes an indexed minimum interest rate guarantee for new institutional and individual retirement accounts. Additionally, the recent acquisitions of Nuveen Investments, Inc. and EverBank Financial Corp have added additional net operating earnings diversification and added further scale to TIAA’s existing asset management and banking businesses.

    While TIAA continues to hold its dominant position in the niche U.S. higher education pension market, its dominance has been challenged in recent years by strong brand-name, low-cost mutual fund firms that offer a wide array of non-guaranteed investment options. Although A.M. Best does not believe TIAA’s existing customer relationships would be affected significantly, it does believe TIAA could be challenged to attract new customers in this highly competitive market. In response, TIAA has engaged in marketing strategies focused on strengthening its brand awareness and customer reach.

    Factors that could result in negative rating actions include a significant and sustained decline in risk-adjusted capitalization, as measured by BCAR, or a material and sustained decline in net operating performance.

    This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

    A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

    Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

    Contacts

    A.M. Best
    Rich Francis, +1-908-439-2200, ext. 5152
    Senior Financial Analyst
    richard.francis@ambest.com
    or
    Ken Johnson, CFA, CAIA, FRM, +1-908-439-2200, ext. 5056
    Senior Director
    ken.johnson@ambest.com
    or
    Christopher Sharkey, +1-908-439-2200, ext. 5159
    Manager, Public Relations
    christopher.sharkey@ambest.com
    or
    Jim Peavy, +1-908-439-2200, ext. 5644
    Director, Public Relations
    james.peavy@ambest.com

    Originally Posted at Business Wire on June 12, 2018 by A.M. Best.

    Categories: Industry Articles
    currency