Teachers Ins. and Annuity Assoc. of America

Transcription

1 JUNE 13, 2012 INSURANCE COMPANY PROFILE Teachers Ins. and Annuity Assoc. of America New York, New York, United States Table of Contents: COMPANY OVERVIEW 1 FINANCIAL HIGHLIGHTS (AS REPORTED) 2 BUSINESS ACTIVITIES 2 DISTRIBUTION CHANNELS 3 SIMPLIFIED ORGANIZATION CHART OF TIAA 4 MANAGEMENT INFORMATION 4 COMPANY HISTORY 5 PEER GROUP 5 SUBSIDIARIES RATED BY MOODY S 5 WEBSITE 5 MOODY S RELATED RESEARCH 6 Analyst Contacts: Company Overview Teachers Insurance and Annuity Association of America (TIAA) is part of the TIAA-CREF organization, one of the largest retirement systems in the U.S. based on assets under management. College Retirement Equities Fund (CREF) is the sister company to TIAA in TIAA-CREF. Both organizations are operated on a non-profit basis and specialize in the provision of retirement annuities for employees of not-for-profit organizations whose primary purpose is education and research. TIAA-CREF's primary business activity is the operation of these employer-sponsored retirement plans for the employees of participating institutions. Most TIAA-CREF participants are current or former employees of colleges and universities. At March 31, 2012, TIAA reported net admitted statutory assets of $234 billion. TIAA and CREF combined reported $502 billion in assets under management as of March 31, 2012, making it one of the largest retirement plans in the U.S. NEW YORK Scott Robinson Senior Vice President scott.robinson@moodys.com Manoj Jethani Associate Analyst manoj.jethani@moodys.com Joel Levine Associate Managing Director joel.levine@moodys.com Robert Riegel Managing Director-Insurance robert.riegel@moodys.com This report, exclusively provided to you by Moody s, presents a convenient summary of as reported, publicly available information. The information is not adjusted for Moody s analytic purposes. For Moody s Ratings, Opinion and Analytics on this company, please [Click here]. To access the latest Moody s Credit Opinion on this company, please [Click here].

2 Financial Highlights (As Reported) Note: The financials presented below are those reported by the entity and are not adjusted for Moody s analytic purposes. For Moody s generated ratios on Teachers Insurance and Annuity Association of America please see <Teachers Insurance and Annuity Association of America page on moodys.com>. FIGURE 1 Teachers Insurance and Annuity Association of America - Consolidated In US $ million Insurance Premiums 11,937 11,773 10,467 13,552 9,634 Net Investment Income 10,902 10,587 10,402 10,620 10,834 Total Revenue 25,491 25,023 23,692 28,575 24,212 Pre-tax Gains from Operations before Dividends to Policyholders 5,776 5,550 5,486 5,712 6,535 Dividends to Policyholders 3,082 2,733 2,646 4,574 4,578 Net Realized Capital Gain/(Loss) (434) (1,431) (3,346) (4,524) (145) Net Income 2,388 1,406 (459) (3,345) 1,439 Total Adjusted Capital 30,826 28,026 24,305 19,254 23,479 Net General Account Admitted Assets 212, , , , ,452 Business Activities The primary businesses of TIAA are shown in the chart below: TIAA-CREF provides retirement annuities and insurance coverage to more than 3.7 million participating individuals at approximately 15,000 colleges, universities, and other non-profit institutions throughout the U.S. These retirement annuity related liabilities account for the vast majority of TIAA's total reserves. TIAA-CREF also offers additional financial services such as mutual funds, trust services, and program management for state sponsored Section 529 college savings plans. These operations are still very small in size compared to the organization's core retirement services business. 2 JUNE 13, 2012 COMPANY PROFILE: TEACHERS INS. AND ANNUITY ASSOC. OF AMERICA

3 FIGURE 2 TIAA-CREF Assets byline of Business December 31, 2011 After-Tax Annuities 1% Mutual Funds 8% IRA/Keogh 6% Education Savings 2% Other 8% FIGURE 3 TIAA-CREF Premiums and Gross Flows by Line of Business December 31, 2011 Education Savings 11% After-Tax Annuities 1% Other 16% Pensions 35% Pensions 75% Mutual Funds 33% IRA/Keogh 4% Distribution Channels TIAA markets its primary products directly to employee plan participants through their employers via full-time TIAA salaried staff. In recent years, the company has rapidly expanded a series of regional offices with over 85 open as of year-end The centers are designed to better serve key institutional and individual customers and to improve the relationship with plan participants. Certain other products are marketed by mail, phone, internet or through intermediaries. FIGURE 4 Regional Offices JUNE 13, 2012 COMPANY PROFILE: TEACHERS INS. AND ANNUITY ASSOC. OF AMERICA

4 Simplified Organization Chart of TIAA FIGURE 5 Organization Chart LEGEND Related Company TIAA Board of Overseers Life Insurer=* College Retirement Equities Fund Teachers Insurance and Annuity Association of America* TIAA-CREF Life Insurance Company* TIAA Global Markets, Inc. TIAA is a stock life insurance company domiciled in New York, which is subject to oversight by the New York State Department of Financial Services. Its stock is owned by the TIAA board of overseers, a New York registered non-profit entity that is subject to oversight by the New York Attorney General. CREF is a non-profit investment company, registered with the Securities and Exchange Commission (SEC) (it is also subject to certain regulations of the New York State Department of Financial Services). CREF is a not-for-profit membership corporation owned by its shareholders and overseen by the New York-based CREF board of overseers. Management Information Name Current Title Age Tenure Roger W. Ferguson, Jr. President and Chief Executive Officer of TIAA 60 4 Virginia Wilson Executive Vice President and Chief Financial Officer 57 2 Edward Van Dolsen Executive Vice President and President, Retirement and Individual Financial Services Ronald R. Pressman Executive Vice President and Chief Operating Officer 54 1 Stephen B. Gruppo Executive Vice President, Risk Management 52 8 Dr. Eugene Flood Executive Vice President, Diversified Financial Services 56 1 Connie Weaver Executive Vice President, Chief Marketing Officer 59 2 Brandon Becker Executive Vice President and Chief Legal Officer JUNE 13, 2012 COMPANY PROFILE: TEACHERS INS. AND ANNUITY ASSOC. OF AMERICA

5 Company History TIAA was established in 1918 by the Carnegie Foundation to provide retirement benefits and life insurance for employees of non-profit higher educational and research institutions. CREF was established in 1952 to complement the fixed annuities provided by TIAA with equity-based variable annuities. TIAA became a taxable entity under Federal income tax laws as of January 1, The organization has generally not done acquisitions and its few divestitures of non-core business have been fairly minor in importance. The company has also been slowly expanding outside of its core educational and research retirement market into related markets such as mutual funds and college savings plans, but these are of modest size compared to the core business. Peer Group» Northwestern Mutual Life Insurance Company» New York Life Insurance Company» MassMutual Life Insurance Company Subsidiaries Rated by Moody s» TIAA-CREF Life Insurance Company» TIAA Global Markets, Inc. Website For additional information, please see the company s website: 5 JUNE 13, 2012 COMPANY PROFILE: TEACHERS INS. AND ANNUITY ASSOC. OF AMERICA

6 Moody s Related Research Credit Opinion:» Teachers Insurance and Annuity Association of America Analyses:» Teachers Ins. and Annuity Assoc. of America, June 201 (133635)» Teachers Insurance and Annuity Association, Corporate Governance Assesment, December 2006 (101222) Special Comments:» US Life Insurers' Investment Credit Losses Continue Improvement in 2011; Driven by Low CML Losses, June 2012 (142283)» Solid Capital Levels for U.S. Life Insurers at Year-end 2011; Modest RBC Ratio Decline, May 2012 (141808)» US Life Insurers' Q Results: Operating Earnings Grew Modestly; Macroeconomic Factors Continue to Dampen Growth Prospects, May 2012 (142110)» Protracted Low Interest Rates Would Present Major Risk for US Life Insurers, August 2012 (133884)» The Most Frequently Asked Questions on Variable Annuities, September 2011 (135167)» US Life Insurers Have Minimal Exposure to Peripheral Eurozone Financial Institutions and Sovereigns, November 2011 (134595)» US Life Insurers' Investment Credit Losses Continue Recovery in 2010; Driven by Lower Bond Losses, May 2011 (132841) Rating Methodology:» Moody's Global Rating Methodology for Life Insurers, May 2010 (123502) Industry Outlook:» U.S. Life Insurance: Stable Outlook Prevails, August 2012 (133712) To access any of these reports, click on the entry above. Note that these references are current as of the date of publication of this report and that more recent reports may be available. All research may not be available to all clients. 6 JUNE 13, 2012 COMPANY PROFILE: TEACHERS INS. AND ANNUITY ASSOC. OF AMERICA

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