USAA

THE SCOOP

Ten-hut!

One day in 1922, a group of Army officers gathered in San Antonio, Texas, to discuss a problem: because their military careers meant frequent relocation, their car insurance policies were expensive and difficult to maintain.  The 25 officers decided to form a mutual company to insure each other's vehicles and to create policies tailored to the military life.  The United States Army Automobile Association (USAA) has grown to more than 6 million members to comprise active duty officers and enlisted personnel, spouses and children of USAA members, National Guard and Selective Reserve officers and enlisted personnel, retired military personnel, and officer candidates in commissioning programs.  It operates from six offices in the United States and two offices overseas in London and Frankfurt.

Business unusual

"We're not a household name," USAA declares on its website, "and you won't see our logo in a Super Bowl commercial."  Indeed, USAA's business is different from conventional insurance companies in many ways, relying on direct marketing to sell its products and policies.  Its insurance division provides annuities, Medicare solutions, and automobile, home and property, life, business, and long-term care insurance.  Its investments business includes mutual funds, individual retirement accounts (IRAs), college savings plans, annuities, asset management plans and brokerage services.  Members can use USAA's banking services which include checking and savings accounts, loans, credit cards and CD products.  USAA financial advisors provide advisory and planning services tailored specifically for military concerns--how a family might budget for a deployment, for example.

Reporting for duty

USAA welcomed new leadership in 2008 due to the retirement of the sitting chairman and CEO Robert Davis who left the company in December 2007.  Davis had been the president of USAA for eight years and the CEO for seven years and was named chairman in 2002.  Josue Robles, a lifelong army man who began his service in 1966, replaced Davis as president and CEO.  In July 2008, Robles was named the Corporate Executive of the Year by the San Antonio Hispanic Chamber of Commerce.  General John H. Moellering, who had served as vice chairman, consequently became the chairman.

Highly decorated

USAA does more than just its patriotic duty as an insurance provider for the U.S. military and their families, it also excels in the areas of customer service and employee satisfaction.  In 2008, for the second year in a row, BusinessWeek ranked USAA No. 1 on its list of Customer Service Champs; in 2009, however, it slipped to No. 2. and in February 2008, Forrester Research ranked USAA as No. 1 in its Experience That Satisfy Consumers report for Internet and phone customer service.  Previously, in December 2007, Representative Trey Martinez Fischer of Texas also honored USAA by filing a resolution (House Resolution 1614) that publicly honors the company for its devotion to its clients.  The company has also been included in ComputerWorld's Top Place to Work in IT list and LATINA Style's list of leading employers for Hispanic women.

Gaining traction

In 2008, USAA brought in $12.91 billion in revenue, down from the $14.42 billion it posted in 2007.  Net income in 2008 is at $423 million, with total assets of $68.296 billion and total equity of $14.56 billion.  According to the Federal Deposit Insurance Corporation, as of June 2009, USAA holds more than $31.8 billion in deposits and accounts of more than $3.8 million.  It employs some 21,900 individuals.



USAA


9800 Fredericksburg Road
San Antonio, TX 78288
Phone: (210) 498-2211
Fax: (210) 498-9940
www.usaa.com

STATS


  • Employer Type: Private
  • President and CEO: Josue Robles, Jr.
  • 2008 Employees: 21,900

Key Financials

  • 2008 Revenue: $12,912 million

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