Teachers Insurance&Annuity Assn. of America

The outlook is stable, reflecting our expectation that the group will maintain its excellent competitive position while sustaining its excellent capital and exceptional liquidity. It also reflects our stable outlook on the U.S. long-term sovereign credit rating. We could lower the ratings if: TIAA's unique competitive position in the U.S. higher education pension market erodes significantly or challenges emerge within its asset management businesses; Its operating performance or capital adequacy deteriorates; or We lower our rating on the U.S. We do not expect to raise our ratings on TIAA in the next two years, given our current view of the U.S. sovereign's credit quality, which constrains our ratings on insurers. Real U.S. GDP growth of 1.7% in 2023 and 1.3%

...Exit from banking operations doesn't affect Teachers Insurance & Annuity Assn. of America's (TIAA's) excellent business profile. TIAA's sale of TIAA Bank (now EverBank N.A.) has no implications for TIAA's overall business because of TIAA's strong presence in its core retirement business. Despite the sale, TIAA's business profile remains diversified, with non-insurance-related contributions from Nuveen Finance LLC (A/Stable/--). While the sale had a one-time impact on the company's capital and earnings, we think on an ongoing basis, overall earnings should remain unaffected. We expect TIAA to maintain its dominant market position in the U.S. higher education pension market. TIAA is one of the nation's largest private retirement systems, with assets under management of about $1.21 trillion as of Dec. 31, 2022. We anticipate it will remain the market leader in the U.S. higher education pension market, benefiting from its solid reputation of providing quality service and advice, which it has...

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