CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 08, 2016 04:08 PM (EDT)
A.M. Best has commented that the ratings for Teachers Insurance and Annuity Association of America (TIAA) and its wholly owned insurance subsidiary, TIAA-CREF Life Insurance Company, (both domiciled in New York, NY) remain unchanged following TIAA’s recent announcement that it intends to acquire EverBank Financial Corp (EverBank), a diversified financial services company providing banking, mortgages and investing services with over $27 billion in total assets.
TIAA is acquiring EverBank for an enterprise value of approximately $2.5 billion, inclusive of EverBank’s outstanding subordinated debentures. EverBank will operate as a subsidiary of TIAA, retaining its business operations in Jacksonville, FL and other key markets across the country.
The acquisition will add significant scale to TIAA’s banking and lending products. Additionally, the transaction allows direct access to individual customers and creates an additional entry point for TIAA outside retirement. TIAA continues its strategy to be a leading provider of financial services as this transaction compliments its existing portfolio of retirement, advisory and investment services, which includes its acquisition of Nuveen Investments in October 2014.
The transaction is to be funded primarily through the deployment of excess capital and is expected to close during the first half of 2017. Following the close of the transaction, A.M. Best expects TIAA to remain adequately capitalized for is current ratings. A.M. Best will monitor the integration process, along with any impact on TIAA’s risk-adjusted capitalization, financial leverage and operating results once the transaction is finalized. Negative ratings pressure may result if the transaction is deemed to impact TIAA’s financial flexibility or risk-adjusted capital metrics beyond A.M. Best’s expectations.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.