USAA

United Services Automobile Association

Formerly	United States Army Automobile Association (1922Template:Endash1924)
Company type	Private (Reciprocal inter-insurance exchange)
Industry	Financial services
Founded	June 20, 1922 (1922-06-20)
Headquarters	San Antonio, Texas United States
Number of locations	5 financial centers
Area served	Worldwide
Key people	James M. Zortman (Chairman) Juan Andrade (President and CEO)
Products	Banking Financial planning Insurance Retirement
Revenue	Template:US$ (2023)
Net income	Template:US$ (2023)
Total assets	Template:US$ (2023)
Total equity	Template:US$ (2023)
Members	13.5 million (2023)
Number of employees	c. 37,000 (2023)
Capital ratio	16.4% (Tier 1, Q2 2024)
Rating	AM Best: A++ Moody's: Aa1 S&P: AA+
Website	usaa.com

The United Services Automobile Association (USAA) is a U.S.-based financial institution specializing in insurance and banking services tailored exclusively for military personnel, veterans, and their families. Established in 1922 in San Antonio, Texas, by a group of 25 U.S. Army officers who faced challenges obtaining auto insurance due to high-risk perceptions, USAA has since become a prominent entity within its specialized sector.

Operating from its headquarters located on land formerly used as a horse farm in northwest San Antonio, USAA maintains five financial centers internationally. Its banking arm, USAA Federal Savings Bank, transitioned its main office to a dedicated campus in Phoenix, Arizona, as of April 2024.

USAA's core business strategy revolves around delivering financial products—including banking, insurance, retirement planning, and wealth management—to active-duty and former members of the Armed Forces along with their families. The company secured the No. 96 spot on the 2020 Fortune 500 list based on revenue and featured on Fortune’s 2021 Blue Ribbon list, ranking No. 355 on the Fortune Global 500 and No. 94 on the Fortune 500 overall. Additionally, it achieved No. 55 on the list of 100 Best Companies to Work For and earned recognition among the World's Most Admired Companies. By the close of 2020, USAA’s membership exceeded 13 million, underscoring its substantial expansion within its target demographic.

History

Initially known as the United States Army Automobile Association, the organization adopted the name United Services Automobile Association in 1924 after opening membership to commissioned officers across all branches of the U.S. military. Founded on June 20, 1922, by a cohort of 25 Army officers in San Antonio aiming to secure dependable and affordable auto insurance coverage, the association faced internal conflicts during the late 1920s that jeopardized its continuity until Major General Ernest Hinds took over as general manager in 1928, guiding the organization through to 1941.

USAA was an early adopter of direct marketing techniques, conducting most transactions via telephone and later through online platforms rather than relying on traditional agents. It shifted away from mail-based operations during the 1960s, introduced a toll-free telephone line in 1978, and initiated internet-based sales by 1999.

From 2009 to 2013, USAA extended limited access to civilians, permitting them to utilize investment services, banking accounts, and life insurance products; however, eligibility restrictions excluded them from auto and property insurance offerings.

By the year 2015, USAA had grown to employ more than 32,000 individuals worldwide. In an effort to concentrate its focus on core competencies, USAA divested its investment management and brokerage operations to Charles Schwab Corporation for $1.8 billion in July 2019; this deal was finalized in May 2020.

Property, casualty, and life insurance

USAA provides an extensive range of personal property and casualty (P&C) insurance options, such as automobile, homeowners, renters', umbrella, and personal property coverage. Its life insurance offerings encompass whole life, term life, and annuity products. A distinctive feature of USAA’s life insurance policies is the absence of the standard war-exclusion clause, setting them apart within the insurance sector.

Banking

USAA Federal Savings Bank delivers banking solutions accessible through branches, mail, telephone, and digital platforms. Mobile check deposits are supported via apps compatible with Apple iPhone, iPad, and Android devices. Prominent competitors in the military banking landscape include Bank of America-Military Bank, Pentagon Federal Credit Union, and Navy Federal Credit Union.

Investing and financial planning

For brokerage services, mutual funds, and ETFs, USAA connects its members with strategic partners Charles Schwab Corporation and Victory Capital. Victory Capital’s acquisition of USAA Asset Management Company in 2019 expanded USAA’s investment capabilities while maintaining an emphasis on cost-effectiveness and client satisfaction.

Target market

USAA’s mission centers on catering to a specific demographic: U.S. military personnel and their immediate families. Its marketing efforts target active duty members, National Guard and Reserve forces, officers, enlisted personnel, as well as veterans with honorable service records. Membership criteria have evolved over time—from initially serving only military officers to including National Guard and Reserve members in 1973, enlisted personnel in 1996, and by 2008 encompassing all military members, retirees, and veterans discharged after 1996. In 2009, eligibility expanded to anyone who has served honorably in the U.S. Armed Forces; as of 2022, those with a general discharge can also join.

Additionally, USAA extends services to current and former employees of select federal agencies such as Defense Criminal Investigation Services (DCIS), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Naval Criminal Investigative Service (NCIS), Secret Service (SS), Air Force Office of Special Investigations (AFOSI), Army Criminal Investigation Command (ACIC), Department of State (limited to Foreign Service Officers and certain staff), and Merchant Marine Academy personnel commissioned by the Marine Administration.

This focused market strategy strengthens USAA’s competitive position by concentrating on a clearly defined segment aligned with its operational model and strategic vision.

Leadership

The board of directors at USAA is led by Vice Admiral James M. Zortman (Ret.), who appointed Wayne Peacock as CEO in February 2020—marking the first instance of a non-veteran heading the company. On April 2, 2025, Juan C. Andrade is set to take over as CEO from Peacock.

Past leaders include retired Air Force Brigadier General Robert F. McDermott, who began his tenure in 1969 and guided USAA through its shift from mail-based to telephone services while overseeing the construction of its San Antonio headquarters. He was followed in 1993 by retired Air Force General Robert T. Herres, under whose leadership USAA broadened access to enlisted service members and introduced internet-based financial products.

In 2000, former Army officer Robert G. Davis assumed the CEO position, significantly increasing membership numbers, assets under management, and net worth while reshaping corporate culture. His period in charge saw USAA's first rounds of layoffs along with a more confrontational leadership approach; he unexpectedly retired in 2007. Josue Robles then took over as CEO permanently after initially serving in an interim capacity, bringing together military experience with strong business leadership skills.

Locations

USAA's main headquarters is situated in San Antonio, with significant offices located in Phoenix, and further facilities in Chesapeake, Virginia, Colorado Springs, Colorado, Plano, Texas, and Tampa, Florida. On the international front, the organization maintains offices in both London and Frankfurt. The Phoenix campus, covering 400 acres and completed in 2017, accommodates 4,500 employees. In May 2019, USAA inaugurated a new office at 25700 N Norterra Pkwy in Phoenix to support 1,100 software engineers.

In Charlotte, North Carolina, USAA considerably expanded by leasing 90,000 square feet at The Square in South End, increasing its staff by 750 on top of the existing 100 employees. The workforce began occupying this space toward the end of 2021. By June 2022, USAA acquired The Square for $97 million and currently has 500 employees working across two floors within the ten-story building.

Bank secrecy violations

On March 17, 2022, the Financial Crimes Enforcement Network (FinCEN) levied a $140 million civil penalty against USAA Federal Savings Bank due to breaches of the Bank Secrecy Act, affecting the company’s regulatory compliance standing and financial results.

See also

• List of largest banks in the United States