A.M. Best Affirms Ratings of TIAA and TIAA-CREF; Assigns Debt Ratings.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 23, 2003 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength ratings of A++ (Excellent) of Teachers Insurance and Annuity Association of America (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 (both located in 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 assigned an "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 to the 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 ). A.M. Best has also assigned an AMB-1+ rating to TIAA's $2 billion commercial paper program. The outlook for all ratings is stable. The rating affirmation reflects TIAA's strategic advantage due to its leadership position for 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, superior capitalization, well diversified investment portfolio and the steady success in growing ancillary business lines, including trust services and tuition financing plans. These strengths are derived from TIAA's focus on operating strategy, conservative accounting and reserving methodologies 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. The company is reviewing several initiatives to address these challenges while focusing on new business growth through its traditional annuity and life insurance segments. 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 balances its overall risk profile. TIAA continues to maintain considerable latitude in managing its capital base, particularly given its stable liabilities and 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 of America -- TIAA-CREF Life Insurance The following debt ratings have been assigned: Teachers Insurance and Annuity Association of America-- -- 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 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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