USAA's 2021 Annual Report to Members Highlights How the Company Responded to the Call of Members

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Jun 16, 2022, 15:57 ET

SAN ANTONIO, June 16, 2022 /PRNewswire/ -- As it approaches its 100^th year of serving the military community, USAA today released its 2021 Annual Report to Members, which demonstrates the association's financial strength and steadfast support for members during uncertain times.

While pandemic-related impacts continued to reverberate throughout the global economy, USAA's commitment to members and focus on maintaining a strong financial foundation remained steadfast. In 2021, COVID variants, historic catastrophes, low interest rates, supply-chain disruptions, labor shortages and surging inflation created challenges for USAA and its members.

"Our resilient members, many of whom are actively serving our country, had to deal with new COVID variants and 71 major catastrophes in 2021," said USAA President and CEO Wayne Peacock. "In 2021, USAA responded to our member's calls for support while maintaining the financial strength that allows us to be there for military families when they need us most."

Amid the challenges of 2021, USAA:

Paid $2.5 billion paid in catastrophe claims, a 20% increase over 2020.
Net worth held strong at $40 billion. USAA's revenue was $37.5 billion and net income was $3.3 billion – all despite catastrophe losses reaching another historic high.
Almost 96% of members chose to stay with the association.
USAA returned almost $2 billion to members in distributions, dividends, and bank rebates and rewards.
USAA portfolios performed well during the historic investment-market recovery since the COVID-19 crisis lows.

"USAA's focus on serving the military community – and the communities where we live and work – was again aided in 2021 by the strength of our diversified business portfolio, and prudent management and investment decisions," said Chief Financial Officer Jeff Wallace. "We continue to invest in our people, modernizing our systems, and enhancing our operations to ensure we continue to deliver great experiences and exceptional service for our members as we approach our 100^th anniversary."

Responding to the Call

USAA's Annual Report to Members highlights the "call to serve," both in how the military community responds to the call to serve our nation and how USAA is driven to serve its members and the community.

"USAA is inspired by the military community's selfless response to the call to serve," Peacock said. "In June of 2022, USAA will begin its second century of serving members. A small idea launched USAA on a mission to serve the military community. A collective of 25 Army officers made a promise to take care of their own by offering insurance when no other company would. And that dedication and promise continues to drive USAA today."

In 2021 USAA served members by:

Introducing usage-based, pay-as-you-go auto insurance with rates based on the actual miles driven. That included the acquisition of insurtech company Noblr, Inc. to offer usage-based insurance.
Responding to 71 catastrophes, launching small business insurance and introducing personal property insurance coverage at an average 45% savings for service members living in barracks and dormitories.
Making life insurance more accessible through our first-ever, digital-only insurance product and more straightforward through our guaranteed issue whole life insurance solution.
Continuing to invest in digital banking capabilities and fraud prevention and detection technology to protect our membership.

USAA served the community in 2021 by:

Designating 48% of $38.6 million in direct grants from USAA, USAA Bank and The USAA Foundation, Inc. to military-focused nonprofit organizations.
Reaching 2.2 million service members with financial education materials from The USAA Educational Foundation, Inc.
Donating through The USAA Foundation, Inc. a combined $500,000 to Team Rubicon and the American Red Cross, to help families and communities recover from the devastation of Hurricane Ida.

About USAA
Founded in 1922 by a group of military officers, USAA is among the leading providers of insurance, banking, and investment and retirement solutions to more than 13 million members of the U.S. military, veterans who have honorably served and their families. Headquartered in San Antonio, USAA has offices in eight U.S. cities and three overseas locations and employs more than 38,000 people worldwide. Each year, the company contributes to national and local nonprofits in support of military families and communities where employees live and work. For more information about USAA, follow us on Facebook or Twitter (@USAA), or visit usaa.com.

The USAA Foundation, Inc., a nonprofit organization, supports organizations that provide services in the areas of education, health and human services, arts and culture, and civic and economic development primarily in the communities where USAA employees live and work. The USAA Foundation, Inc., does not endorse or promote any commercial supplier, products or services. USAA is the sponsor of The USAA Foundation, Inc.

The USAA Educational Foundation is nonprofit charitable organization qualified under Section 501(c)(3) of the Internal Revenue Code as a tax-exempt private operating foundation with a mission and purpose to lead and inspire actions that improve financial readiness for the military and local community. The USAA Educational Foundation cannot endorse or promote any commercial supplier, product or service. USAA is the sponsor of the USAA Educational Foundation.

Contact: USAA
[email protected]

SOURCE USAA