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Strong Financial Results, Record Returns to Members
SAN ANTONIO – USAA continues to earn the trust of its members by delivering on its mission to facilitate the financial security of its members, associates and their families. In 2013, USAA surpassed 10 million members, maintained high member satisfaction, and offered new products and services to meet the needs of the military community, all while reporting strong financial results.
USAA’s 2013 Report to Members, themed "Built on Trust," is being released this week.
"For USAA, it's been more than 91 years since 25 Army officers met to formalize our organization – one built on trust," USAA CEO Joe Robles wrote in his letter to members, which appears in the report. "Because many USAA members pass down the legacy of access to membership to new generations of family members, we never take that trust for granted."
Highlights from the report:
Growth in Regional Offices and Veteran Hiring
Last year, USAA announced growth plans to serve its members more effectively. The plan includes hiring 3,500 additional employees over the next three years in San Antonio, Phoenix, Tampa and the Dallas area.
Also, at a time when the country is expecting to reduce the size of its military, USAA showed it is committed to hiring veterans. Nearly 31 percent of USAA's new hires during 2013 were veterans or military spouses.
From 2006 to 2013, USAA has hired more than 7,800 veterans and military spouses. USAA actively promotes veteran hiring in numerous ways, supporting the White House’s Joining Forces initiative and the U.S. Chamber of Commerce’s Hiring Our Heroes® program.
Strong Financial Results
USAA reported more than $2.7 billion in net income on revenues of nearly $21 billion, and several other measures of financial strength grew even stronger. Net worth grew 9 percent to $24 billion. Assets owned and managed increased by 8 percent to $198 billion.
USAA's Property and Casualty companies maintained the highest possible financial strength ratings from A.M. Best, Moody’s and Standard & Poor’s, the three top credit rating firms.2 Members’ satisfaction with USAA service representatives also increased to 93 percent in 2013.
"Our financial results were driven by three major factors," retired Air Force Gen. Lester Lyles, USAA's chairman, wrote in his letter to members. "First, more members trusted us to provide them with products and services. Second, although our members reported nearly 100,000 weather catastrophe-related claims – incurring $720 million in catastrophe losses – major hurricanes avoided the United States in 2013. Finally, our members continued to demonstrate honorable creditworthy behavior, reducing debt and continuing to pay bills and meet their commitments."
Excluding gains and losses on investments, USAA experienced strong year-over-year growth in revenue of 8 percent and 34 percent in net income. Most of these investment gains and losses were unrealized changes in the value of its fixed income portfolios, caused by interest rate fluctuations. USAA records these gains and losses through its income statement, while most other companies record market fluctuations of their investment portfolios in their net worth. Fewer major catastrophes and a recovering economy contributed to the strength of USAA's net income in 2013.
USAA's total revenue rose 1 percent and net income declined 4 percent, including investment gains and losses.
To read or download the 2013 USAA Report to Members, go to www.usaa.com/report2013.
USAA provides insurance, banking, investments, retirement products and advice to 10.1 million members of the U.S. military and their families. Known for its legendary commitment to its members, USAA is consistently recognized for outstanding service, employee well-being and financial strength. USAA membership is open to all who are serving or have honorably served our nation in the U.S. military – and their eligible family members. Founded in 1922, USAA is headquartered in San Antonio. For more information about USAA, follow us on Facebook or Twitter (@USAA) or visit usaa.com.
1Includes amounts returned as auto policyholder dividends as well as Subscriber’s Account distributions, senior bonus and terminations. Past dividends or distributions are not a guarantee or promise of future dividends or distributions.
2A++ (Superior) from A.M. Best Co., highest of 16 possible ratings; Aaa (Exceptional) from Moody’s Investors Service, highest of 21 possible ratings; AA+ (Very Strong) from Standard & Poor’s, second highest of 21 possible ratings.
Use of the term “member” or “membership” does not convey any eligibility rights for auto and property insurance products, or legal or ownership rights in USAA. Ownership rights are limited to eligible policyholders of United Services Automobile Association.
USAA means United Services Automobile Association and its insurance, banking, investment and other companies. Banks Member FDIC, [insert EHL house logo here] Investments provided by USAA Investment Management Company and USAA Financial Advisors Inc., both registered broker dealers.