Financial Strength: The TIAA General Account
as of December 31, 2016
TIAA assets and liabilities
Rating agency
TIAA financial strength rating 3
Moody’s Investors Service (as of 2/2017)
Aa1 (Very Strong)
Total assets – $282.4 billion
Standard & Poor’s (as of 11/2016)
AA+ (Very Strong)
A.M. Best (as of 8/2016)
A++ (Superior)
Total liabilities (including reserves) – $246.8
billion (including $199.8 billion in General
Account policy reserves)
Fitch (as of 2/2017)
AAA (Exceptionally Strong)
Net capital and surplus – $35.6 billion
The TIAA General Account
WW $243.0
billion in total TIAA General Account
invested assets
WW $39.7
(as of 12/31/2016)
TIAA General Account diversification
(For details see other side)
billion in total statutory capital 1
WW Option-adjusted
W63.31% Public fixed income
W13.16% Private fixed income
W 8.28%Commercial mortgage whole loan by
duration is 7.65
2
investment type
Key advantages
W
W
W
W
W
W
Strong capital position
TIAA is one of only three insurance groups in the United
States to currently hold the highest possible rating from three
of the four leading insurance company rating agencies for its
stability, claims-paying ability and overall financial strength.
Diversified portfolio
In keeping with our commitment to prudent asset/liability
management, the TIAA General Account invests in a broadly
diversified portfolio that enables us to pursue superior
long-term returns for the account while providing the
stability and liquidity needed to support our guaranteed
annuity products.
3.53% Real estate by investment type
3.43% Natural resources
2.60% Private equity funds and co-investments
2.39% Operating subsidiaries
1.58% Other investments
1.72% Other subsidiary investments
Corporate and government bonds and
structured finance
Bonds
Investment Grade (NAIC Class 1-2)
% Bonds
91.30%
Medium Grade (NAIC Class 3)
5.10%
High Yield (NAIC Class 4-6)
3.60%
Scale and consistency of investment flows
From 2002 to 2016, TIAA has on average made nearly $29
billion of investments annually for the General Account,
making it one of the world’s largest institutional investors.
This has allowed us to build our asset base, develop
specialized investment expertise and realize economies of
scale that smaller investors do not enjoy.
Total statutory capital is composed of capital and surplus, and asset valuation reserve for TIAA.
T he individual option-adjusted duration is calculated for the holdings of the General Account excluding commercial mortgages, real estate, equities (REIT equities, funds
and common stock), cash, and certain other investment products.
3
For its stability, claims-paying ability and overall financial strength, Teachers Insurance and Annuity Association of America (TIAA) is a member of one of only three insurance
groups in the United States to currently hold the highest rating available to U.S. insurers from three of the four leading insurance company rating agencies: A.M. Best (A++ as
of 8/16), Fitch (AAA as of 2/17) and Standard & Poor’s (AA+ as of 11/16), and the second highest possible rating from Moody’s Investors Service (Aa1 as of 2/17). There is
no guarantee that current ratings will be maintained. The financial strength ratings represent a company’s ability to meet policyholders’ obligations and do not apply to variable
annuities or any other product or service not fully backed by TIAA’s claims-paying ability. The ratings also do not apply to the safety or the performance of the variable accounts,
which will fluctuate in value.
1
2
Financial Strength: The TIAA General Account
TIAA General Account diversification as of 12/31/2016 - $243 billion
Public fixed income – Value ($M)
63.31%
Real estate by investment type – Value ($M)
3.53%
Investment grade corporate bonds
56,380
Office buildings
2,913
Agency MBS securities
29,422
Retail
1,885
US government bonds (Treasuries)
15,975
Mixed-use/other
992
CMBS securities (AAA)
9,161
Industrial
928
Municipal bonds
8,892
Real estate funds
806
Emerging market bonds
7,713
Apartment
712
High-yield corporate bonds
7,277
Land
346
Non-agency MBS securities
5,423
Structured credit (ABS, CLO, CDO)
4,387
US government-related bonds
3,366
Leveraged loan
2,998
Other developed markets government bonds
1,482
Residential mortgages
1,357
$153,833
Private fixed income – Value ($M)
13.16%
Investment grade private placements
16,903
Credit tenant loans
8,501
Investment grade project finance
2,522
SLL/DIT/MEZZ
2,371
CMBS securities (Subordinated)
1,274
Distressed
413
$31,985
Natural resources – Value ($M)
3.43%
Agriculture
3,677
Energy & infrastructure
3,279
Timberlands
1,378
$8,334
$8,582
Commercial mortgage whole loan by investment type –
Value ($M)
8.28%
Office buildings
6,805
Shopping center
5,959
Apartment
2,895
Industrial
2,881
Mixed-use/other
1,452
Hotel/motel
Residential
119
0
$20,111
Private equity funds and co-investments – Value ($M)
2.60%
Leveraged buyout funds
2,919
Real estate private debt
929
Distressed funds
814
Leveraged buyout - equity co-invest
658
Impact investing
466
Venture funds
259
Mezzanine funds
222
Mezzanine - direct equity co-invest
55
Venture equity co-invest
4
Distressed equity co-invest
0
$6,326
Other investments – Value ($M)
5.69%
Operating subsidiaries
5,807
Other investments
4,175
Other subsidiary Investments
3,834
$13,816
Financial Strength: The TIAA General Account
This information does not include TIAA Real Estate or the CREF Variable Annuities.
This material is for informational or educational purposes only and does not constitute a recommendation or investment advice in connection with a distribution, transfer
or rollover, a purchase or sale of securities or other investment property, or the management of securities or other investments, including the development of an investment
strategy or retention of an investment manager or advisor. This material does not take into account any specific objectives or circumstances of any particular investor, or
suggest any specific course of action. Investment decisions should be made in consultation with an investor’s personal advisor based on the investor’s own objectives
and circumstances.
The investment returns of the TIAA General Account do not flow directly to the TIAA Traditional Annuity or the TIAA Stable Return Annuity contracts but support the payment
obligations and the fulfillment of returns provided for under these contracts. Each premium allocated to such contracts buys a definite amount of lifetime income for
participants based on the rate schedule in effect at the time the premium is paid. In addition, the TIAA Traditional Annuity and Stable Return Annuity provide a guarantee of
principal, a guaranteed minimum rate of interest and the potential for additional amounts of interest when declared by TIAA’s Board of Trustees. Additional amounts, when
declared, remain in effect for the “declaration year” that begins each March 1 for accumulating annuities, and January 1 for lifetime payout annuities. Additional amounts are
not guaranteed for future years.
Payment obligations and the fulfillment of the returns provided for in the TIAA Traditional Annuity and the TIAA Stable Return Annuity are subject to TIAA’s claims-paying
ability. Past interest rates are not indicative of future interest rates. These payment obligations and guarantees are backed by the financial strength of TIAA’s General
Account. For information about current rates on additional amounts, visit our website at TIAA.org.
Annuity products issued by TIAA (Teachers Insurance and Annuity Association of America), New York, NY.
©2017 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017
110905
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(02/17)