AM Best has assigned a Long-Term Issue Credit Rating of 'aa' (Superior) to the $2 billion 6.05% fixed rate surplus notes due 2056 issued by Teachers Insurance and Annuity Association of America. The outlook is stable. The issuance is for general corporate purposes, which may include part of the purchase financing related to TIAA company Nuveen's cash acquisition of Schroders plc announced in February 2026. AM Best expects the transaction will increase adjusted leverage at TIAA to approximately 15% pro-forma due to the purchase financing terms.
Schroders PLCNuveen's acquisition of Schroders is partly financed by TIAA's surplus notes, indicating commitment to the deal.