Dominant position in the U.S. higher-education pension market Very strong and consistent operating performance Recent and pending acquisitions raising industry risk, but favorably adding scale and product offerings Extremely strong capital adequacy with comfortable redundancy at 'AAA' level Strong earnings supported by high persistency rates, low expenses, and above-average investment returns Adequate financial flexibility with limited access to capital due to private status Mutual status, strength and predictability of earnings, and overall successful business model Exceptional liquidity enhanced by barriers to early annuity withdrawal Rating limited to 'AA+' sovereign credit rating on the U.S. (group credit profile indicatively 'aaa') Satisfactory management and governance and adequate enterprise risk management (ERM) practices strengthening as they develop The stable outlook on Teachers Insurance
