Given the general employee negativity and likely eroding revenue, would it make sense to start taking income earlier to at least get something? Can’t imagine TIAA being in better shape 10-20 years from now….
Curious what you guys think.
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TIAA has $41bn in surplus capital. Price to book for North American P&C insurers is 1.77x so a “buyer” would need to pony up a substantial amount of $$ ($73bn) to purchase TIAA. Largest M&A deal year-to-date is the $33bn acquisition of X (formerly Twitter).
TIAA ain’t no tech company with massive growth potential. This place will die a slow death divesting the pieces they can sell until it’s picked apart leaving nothing but a carcass all the while paying our illustrious leaders handsomely.
As a recent TIAA retiree, I wish the company would go ahead and complete the inevitable break up of the company now. Sell or merge the the RA/GA and other viable units and be done with it. But T and the ego driven executive management team are going to extract everything $$$ they can for themselves, leaving the company less and less viable to the potential buyers.
Third time’s the charm.
GENERAL ACCOUNT.
Not General Accounting.
General Accounting….Not General Accounting office…damn auto correct. Hahaha.
At the end of the day, the General Accounting Office is the important thing to protect. The operating business is supposed to be a profitable asset/investment of the participants. It is supposed to Add money to the GA. Unfortunately, For the past three years, the operating business has been a liability to the participants and the General Account. If they cannot return to a positive net income, then it will eventually need to be sold like any other non performing asset. The financial drag on the GA and participants cannot go on unaddressed. It would be a breach of the boards fiduciary duty. The best thing for participants would be for the BoT to quietly shop the business without telling Senior management. That’s tricky, but possible. They could still get enough of a goodwill premium that participants would see a nice bump in their net worth.
The moves their making are in my opinion, to preserve the financial integrity of the general account. The entire business is a wholy owned subsidiary of the general account. So while I'm worried about the future of my position, or T trying to turn TIAA into Empower, I'm not concerned about the general account.
RA/GRA will still be there but it won't be TIAA. Might be Nuveen, might be someother entity that buys it or become the government assigned holder of it. Before RA/GRA fail, Feds would step in and force the sale or take it over.