A.M. Best Affirms Financial Strength and Debt Ratings of TIAA Group.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 10, 2004 A.M. Best Co. has affirmed the financial strength ratings of A++ (Excellent) of Teachers Insurance and Annuity Association (TIAA TIAA Teachers Insurance and Annuity Association TIAA Travel Industry Association of America TIAA This Is An Acronym TIAA Texas Insurance Advisory Association (statistical reporting agency in Texas) TIAA Total Inactive Aircraft Authorization ) and its insurance operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , TIAA-CREF TIAA-CREF Teachers Insurance and Annuity Association - College Retirement Equities Fund Life Insurance Company (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY). Concurrently, A.M. Best has affirmed the "aaa" long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. rating of notes issued by TIAA Global Markets Inc. (TGM TGM Tomas Garrigue Masaryk (first president of the Republic of Czechoslovakia) TGM The Games Machine (Italianvideogame review site) TGM Total Gaseous Mercury TGM Transglutaminase TGM Trunk Group Multiplexer ) and the AMB-1+ rating on TIAA's $2 billion commercial paper program. The outlook for all ratings is stable. The rating affirmation reflects TIAA's superior capitalization, as well as its competitive advantage as a leader in providing high-quality, low-cost pension, investment and life insurance products and services, mainly to members of higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. , research and many not-for profit organizations. The rating also recognizes the company's positive operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before performance, well diversified investment portfolio and the steady success in providing excellent service to its customers and corporate clients. These strengths are derived from TIAA's strong franchise, significant economies of scale and continued focus on operating strategy and an experienced management team. Partially offsetting these strengths is the challenge TIAA will face in managing its historical growth rate while maintaining the industry standard for low expenses. TIAA maintains a considerably higher exposure to real estate and alternative investment classes than most of the U.S. life insurance industry. However, the company has a very stable liability structure that serves to mitigate these risks. As a result, TIAA continues to maintain considerable latitude in managing its capital base, particularly given its stable liabilities and its ability to adjust policyholder crediting and dividend rates. The financial strength rating of A++ (Superior) has been affirmed for the following: -- Teachers Insurance and Annuity Association -- TIAA-CREF Life Insurance Company The following debt ratings have been affirmed: Teachers Insurance and Annuity Association-- -- AMB-1+ on $2 billion commercial paper program TIAA Global Markets, Inc.-- -- "aaa" on $750 million 3.875% senior notes, due 2008 -- "aaa" on $300 million floating senior notes, due 2006 -- "aaa" on $200 million 2.75% senior notes, due 2006 -- "aaa" on $500 million 4.125% senior notes, due 2007 -- "aaa" on $500 million 5.00% senior notes, due 2007 For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debtratings/. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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