assets - TIAA-CREF

ANNUAL STATEMENT FOR THE YEAR 2011 OF THE TEACHERS INSURANCE and ANNUITY ASSOCIATION of AMERICAH. Retained Asset AccountsNOTES TO FINANCIAL STATEMENTS(1) Retained asset accounts are structured as drafts and reported as deposit type contracts without lifecontingencies on the Company’s financial statements. The default for settling life insurance claims is afull cash settlement, and assets are retained only if the beneficiary selects that option. Interest isdetermined on an annual basis and was 3.0% for 2011. There are no monthly service or maintenancefees, no fees for withdrawals and no fees for writing or ordering drafts. If a balance falls below $1,000during any statement period, the account will be closed as of the end of the next statement period and acheck will be mailed for the remaining balance, including accrued interest.(2) The following table presents the Company’s retained asset accounts in force:Retained Asset Accounts In ForceDecember 31, 2011 December 31, 2010(a) (b) (c) (d)Number Balance Number Balancea. Up to and including 12 Months... 295 $ 19,309,346 599 $ 42,630,845b. 13 to 24 Months...................... 479 31,860,834 523 35,343,749c. 25 to 36 Months...................... 456 29,041,128 367 23,033,447d. 37 to 48 Months...................... 325 20,406,216 269 9,718,012e. 49 to 60 Months...................... 243 9,059,334 139 5,978,636f. Over 60 Months...................... 1,744 72,145,265 1,733 69,254,101g. Total .............................. 3,542 $ 181,822,213 3,630 $ 185,958,790(3) The following table presents the Company’s retained asset accounts segregated between individual andgroup contracts as of December 31, 2011:Retained Asset Accounts In ForceIndividualGroup(1) (2) (3) (4)Number Balance Number Balancea. Retained asset accounts at thebeginning of the year ................ 2,762 $ 159,179,966 868 $ 26,778,824b. Retained asset accountsissued/added during the year...... 341 24,955,967 --- ---c. Investment earnings credited toretained asset accounts duringthe year ................................. N/A 4,738,770 N/A 792,537d. Fees and other charges assessedto retained asset accounts duringthe year ................................. N/A --- N/A ---e. Retained asset accountstransferred to state unclaimedproperty funds during the year..... --- --- --- ---f. Retained asset accountsclosed/withdrawn during the year. 360 32,985,772 69 1,638,079g. Retained asset accounts at theend of the year ........................ 2,743 $ 155,888,931 799 $ 25,933,28222. Events Subsequent:Type I – Recognized subsequent events:Subsequent events have been considered through February 18, 2012 for the statutory statementissued on March 1, 2012.Type II – Non-recognized subsequent events:23. ReinsuranceSubsequent events have been considered through February 18, 2012 for the statutory statementissued on March 1, 2012.In 2004, the Company and TIAA-CREF Life entered into a series of agreements with Metropolitan Life InsuranceCompany (“MetLife”) including an administrative agreement for MetLife to service the long-term care business ofthe Company and TIAA-CREF Life, an indemnity reinsurance agreement where the Company and TIAA-CREFLife ceded to MetLife 100% of the long-term care liability and an assumption reinsurance agreement where, afterappropriate filings in each jurisdiction, MetLife has begun, the process of offering the Company and TIAA-CREFLife policyholders the option of transferring the liability for policies from the Company and TIAA-CREF Life toMetLife. At December 31, 2011 there were still premiums in force of $15,158,664.19.23