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About United Services Automobile Association

The United Services Automobile Association (USAA) is a mutual insurance company that serves some 13 million member customers—primarily military personnel, military retirees, and their families. Its lineup of offerings includes property/casualty and life insurance, banking, discount brokerage, investment management, and real estate services. It provides specialty products such as life insurance for soldiers deployed in war zones and financial planning services to invest hazardous duty pay. The company also provides discount shopping (floral, jewelry, and safety items) and travel and delivery services to its members.

Operations

Primarily a property/casualty and life insurance company for active and retired military personnel—United Services Automobile Association (USAA) dominates its niche market, knows its customers well, and enjoys a significant level of member loyalty and retention. The company has a net worth of more than $35 billion, owns or manages nearly $220 billion in assets, and pays out 150,000+ disaster claims with more than $1 billion in disaster-related claims.

On average, each USAA member uses four of its products; the company ties its auto insurance rates to the number of products a member uses and how long they have held insurance with USAA. The company's insurance divisions include United Services Automobile Association, USAA Property and Casualty Insurance, and USAA Life Insurance.

USAA's bank offerings span standard bank products and services including checking and savings accounts, credit cards, mortgages, and auto loans. Its divisions include USAA Federal Savings Bank, USAA Residential Real Estate Services, and USAA Savings Bank. USAA Real Estate offers real estate development services to institutional and corporate customers.

Premiums account for more than 65%the company's revenue; net fees, sales, and loan income provide about 15%. Returns on investments generate over 10% of revenue.

Geographic Reach

In addition to its San Antonio, Texas, headquarters, United Services Automobile Association (USAA) has domestic customer service and sales offices in Arizona, Colorado, Florida, Maryland, New York, and Virginia. It has overseas offices in Frankfurt, Luxembourg and London.

Sales and Marketing

United Services Automobile Association (USAA) relies largely on direct marketing to sell its products, including reaching clients via the telephone and internet. The company serves customers in the US Air Force, Army, Coast Guard, Marines, National Guard, Reserves, and Navy and retired US military. The company prioritizes recruitment and hiring of transitioning military members such as wounded military personnel, junior non-commissioned officers, and junior officers.

Strategy

United Services Automobile Association's (USAA's) strategy centers on attracting and retaining members by adopting new technologies to improve the services it offers its members. In support of that tactic, the company announced plans in 2017 to hire up to 1,000 tech professionals by year-end 2020 at its Phoenix campus.

In 2019 the company partnered with State Farm to test blockchain technology to improve its speed of subrogation—wherein one insurance company recovers claim costs paid to customers for damages by the at-fault insurance company. The system could reduce the time for customers to receive deductible reimbursements.

Company Background

United Services Automobile Association (USAA) was established by 25 US Army officers in 1922. The company opened membership to the Air Force when that department was created in 1948. It established the USAA Federal Savings Bank in 1983.

United Services Automobile Association

9800 Fredericksburg Rd
San Antonio, TX 78288-0001
Phone: 1 (210) 531-8722

Firm Stats

Employer Type: Privately Owned
Vice Chairman: Thomas B. Fargo
Chairman: Lester L. Lyles
President and CEO: Stuart Parker
Employees (This Location): 27,000
Employees (All Locations): 35,000

Major Office Locations

San Antonio, TX

Other Locations

Phoenix, AZ
Laguna Hills, CA
Newport Beach, CA
San Francisco, CA
Colorado Springs, CO
Washington, DC
Coral Gables, FL
Tampa, FL
Chicago, IL
Shawnee Mission, KS
Annapolis, MD
Fayetteville, NC
Old Bridge, NJ
Las Vegas, NV
Highland Falls, NY
New York, NY
San Antonio, TX
Norfolk, VA
Frankfurt Am Main, Germany