TIAA secures AM Best “aa” rating for planned $2 billion surplus notes
Teachers Insurance and Annuity Association of America is moving ahead with a planned $2 billion, 30-year surplus note issuance as it lines up funding for general corporate needs. The notes may partly support financing tied to Nuveen’s cash acquisition of Schroders plc, a deal announced in February 2026.
Highlights
- TIAA will issue $2 billion in 30-year surplus notes with a Long-Term Issue Credit Rating of 'aa' (Superior) from AM Best, outlook stable.
- The financing may support corporate purposes and Nuveen’s planned cash acquisition of Schroders plc, announced in February 2026.
- Post-acquisition, AM Best expects TIAA’s adjusted leverage to rise to approximately 15% on a pro-forma basis.
Rating decision and financing purpose
As reported by AM Best, the rating agency assigns a Long-Term Issue Credit Rating of “aa” (Superior) to the forthcoming surplus notes to be issued by TIAA, with a stable outlook on the credit rating.The insurer says the 30-year notes are intended for general corporate purposes. The planned financing may also be used in part for purchase financing related to TIAA subsidiary Nuveen’s cash acquisition of Schroders plc.
Balance sheet impact and sector context
AM Best says the Schroders transaction was announced in February 2026 and expects the purchase financing terms to lift TIAA’s adjusted leverage to about 15% on a pro-forma basis.The rating action highlights continued attention on capital structure and funding flexibility in the insurance and retirement sector, particularly when large groups use debt markets to support strategic acquisitions while maintaining stable credit outlooks.
In our earlier report on Blackstone’s proposed collateralised fund obligation (CFO), we described how the firm was looking to package more than $2 billion of private equity fund stakes into bonds to generate liquidity for its Strategic Partners unit. We also noted that, with private-market exits slowing and distributions under pressure, more managers and secondary investors have been turning to credit-rated, bond-like structures to tap investor demand for structured financing.
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