Bulletin: Teachers Insurance&Annuity Assn. of America Ratings Unaffected By Acquisition Announcement

NEW YORK (S&P Global Ratings) Aug. 8, 2016--S&P Global Ratings said today its ratings on Teachers Insurance&Annuity Assn. of America (TIAA; AA+/Stable/--) are unaffected by the company's recent announcement that it has entered into a definitive agreement to acquire EverBank (unrated). TIAA will pay EverBank stockholders a total of about $2.5 billion. The transaction is expected to close in the first half of 2017. We view this investment as relatively modest in size, at roughly 1% of TIAA's general account assets. As such, we expect TIAA to fund the acquisition so that its capital remains redundant at the 'AAA' capital level. Strategically, we view the transaction as consistent with TIAA's plans to expand offerings to its existing individual

...NEW YORK (S&P Global Ratings) Aug. 8, 2016--S&P Global Ratings said today its ratings on Teachers Insurance & Annuity Assn. of America (TIAA; ##+/Stable/--) are unaffected by the company's recent announcement that it has entered into a definitive agreement to acquire EverBank (unrated). TIAA will pay EverBank stockholders a total of about $2.5 billion. The transaction is expected to close in the first half of 2017. We view this investment as relatively modest in size, at roughly 1% of TIAA's general account assets. As such, we expect TIAA to fund the acquisition so that its capital remains redundant at the '###' capital level. Strategically, we view the transaction as consistent with TIAA's plans to expand offerings to its existing individual and institutional customers. While we believe this acquisition incrementally increases TIAA's industry risk, we expect its investments in riskier businesses (including banking and asset management) to remain modest relative to its total investments...

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