USAA has a decidedly military bearing. The mutual insurance company serves some 12 million member customers, primarily military personnel, military retirees, and their families. Its products and services include property/casualty and life insurance, banking, discount brokerage, investment management, and real estate development. It offers such specialty products 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.
USAA dominates its niche market, knows its customers well, and enjoys a significant level of member loyalty and retention. The company makes it a priority to recruit and hire transitioning military members including wounded warriors, junior NCOs, and junior officers.
On average, members use four of the company's different products, and the company has begun tying its auto insurance rates to the number of products a member uses, as well as how long they have held insurance with USAA. The company's insurance divisions include United States Automobile Association, USAA Property and Casualty, and USAA Life.
USAA's banking divisions include USAA Federal Savings Bank and subsidiary USAA Relocation Services, as well as USAA Savings Bank. USAA Real Estate offers real estate development services to institutional and corporate customers.
In addition to its San Antonio, Texas, headquarters, USAA has domestic customer service and sales offices in Arizona, Colorado, Florida, Texas, and Virginia. It has overseas offices in Frankfurt and London. The company has smaller offices in New York State and Maryland that serve US military and naval academies. The company also has so20 regional Financial Centers which offer banking and member services in communities close to military posts across the US.
Sales and Marketing
USAA relies largely on direct marketing to sell its products, including reaching clients via the telephone and internet. The company employs teams of wealth management advisors to assist customers at its regional offices.
USAA's revenue increased 11% to $27.1 million in 2016 as most sources of income rose, including insurance premiums, fees, and investment income.
However, the company faced record catastrophe losses (from hail storms in Texas and Colorado and Hurricane Matthew on the East Coast) and increased claims volumes and automobile losses in 2016. This resulted in a decline in net income, which fell 21% to $1.8 billion.
USAA is know for using innovative methods to improve the services it offers its members. For example, in 2017 it piloted a program to provide customers with bank account access through Amazon's Alexa devices. The application provides balance information as well as data on spending habits. Another recent addition is the company's Automatic License+ program, which coaches teenagers as they learn to drive. Furthermore, USAA is one of the first insurers to use electronic health records to simplify the process of providing life insurance coverage. And although USAA has a chief innovation officer, the company invites all employees to suggest ways to innovate and build the business. Its USAA Labs program solicits and tests ideas from customers.
In recent years, USAA has also been using new distribution channels, including partnerships with other financial services providers, to better serve its members and even reach out to non-members that could use some of its services.
The company is expanding its Plano, Texas, IT campus, which will ultimately house some 700 employees. However, the company announced plans to lay off some 10% of its employees in 2018. The affected employees are in its real estate lending operations.
9800 FREDERICKSBURG RD
San Antonio, TX 78288-0001
Phone: 1 (210) 531-8722
Employer Type: Privately Owned
Vice Chairman: Thomas B. Fargo
Chairman: Lester L. Lyles
President and CEO: Stuart Parker
Employees (This Location): 14,802
Employees (All Locations): 26,300
San Antonio, TX
Laguna Hills, CA
Newport Beach, CA
San Francisco, CA
Colorado Springs, CO
Coral Gables, FL
Shawnee Mission, KS
Old Bridge, NJ
Las Vegas, NV
Highland Falls, NY
New York, NY
San Antonio, TX
Frankfurt Am Main, Germany