Teachers Insurance&Annuity Assn. of America

This report does not constitute a rating action. Overview 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, including government spending plans, could pressure the business. Low-risk product portfolio. Excellent capital and earnings. We expect TIAA to benefit from its solid reputation of providing quality service and advice, which it has built over many years; a controlled, salaried sales force; a low-cost structure; and good operating performance, adjusting for realized losses. However, given TIAA?s concentration

...We expect TIAA to maintain its dominant market position in the U.S. higher education pension market. We expect TIAA to benefit from its solid reputation of providing quality service and advice, which it has built over many years; a controlled, salaried sales force; a low-cost structure; and good operating performance, adjusting for realized losses. However, given TIAA's concentration in higher education sector, we believe unexpected sector-specific changes could disrupt the overall business. Noninsurance earnings from the asset management arm, Nuveen Inc., support TIAA's competitive position. The company's core business is complemented by its asset management arm, Nuveen--a diversified investment management company--). We view the non-insurance...

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