Research Update: Teachers Insurance&Annuity Assn. of America 'AA+' Ratings Affirmed On Revised Criteria; Outlook Remains Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see " Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). Our view of Teachers Insurance&Annuity Assn. of America's financial strength is unchanged under the revised criteria. We affirmed our 'AA+' local currency long-term financial strength and issuer credit ratings on Teachers Insurance&Annuity Assn. of America. The outlook is stable, reflecting our expectation that the group will maintain its excellent competitive position while sustaining capital redundancy at the 99.99% confidence level. On May 29, 2024, S&P Global Ratings affirmed its 'AA+' long-term local currency financial strength and issuer credit ratings on Teachers Insurance&Annuity Assn. of America (TIAA). The outlook remains stable. S&P Global

...Key strengths Key risks Dominant position in the U.S. higher education pension market and strong affinity relationships within the markets it serves, including the higher education institution market. Significant exposure to a single sector (higher education) leaves the company susceptible to any material sector-related changes. Salaried sales force and low-cost distribution structure. Macroeconomic uncertainty. Low-risk product portfolio and predictable earnings. Excellent capital and earnings....

Research Update