Dominant position in U.S. higher-education pension market Very strong and consistent operating performance Recent acquisitions increase TIAA's industry risk, but favorably add scale and broaden product offerings Extremely strong capital adequacy, with redundancy at 'AAA' level Strong earnings supported by high persistency rates, low expenses, and above-average investment returns Adequate financial flexibility, although private status limits access to capital Management and governance considered strong, with positive breadth and depth Non-profit 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 is indicatively 'aaa') The stable outlook reflects S&P Global Ratings' view that the credit characteristics of Teachers
