Company Overview

USAA is the leading provider of insurance to military officers in the United States. It was founded in 1922, when a group of Army officers formed the United States Army Automobile Insurance Association to provide auto insurance to military officers and their families. In 1997, the company began offering insurance to enlisted military personnel. USAA has become a one-stop financial services company, too, since it established USAA Federal Savings Bank and USAA Brokerage Services in 1983.

The company's wide range of retail offerings includes mutual funds, loans, credit cards, as well as brokerage and home-buying services. USAA also offers shopping and discounts through its USAA Alliance Services Company and USAA Merchandise Services Company. The insurance company has entered new markets in recent years in order to increase revenue by targeting people less affluent than military officers. Nearly half of its current membership is made up of children and grandchildren of former members of the military. In the past seven years, the company has experienced 48-percent growth in membership, 63-percent growth in products, 93-percent growth in assets owned and managed, and a 90-percent increase in net worth. And USAA expects its membership to double by 2010. But tremendous success doesn’t necessarily come with a boom in employment. USAA has streamlined operations in recent years by reducing staff and closing down divisions (including mailing, printing, and information technology offices). Its efforts have rewarded members with lower prices. Leadership Changes Chairman and CEO Bob Davis announced in December 2007 his decision to retire from his position as president, chief executive officer and chairman of USAA, and the Board of Directors elected Major General Joe Robles, Jr. to take his place. Davis served as USAA’s president since 1999, CEO since 2000, and chairman since 2002. Lt. General John H. Moellering moved up from his position as vice chairman of the board to serve as chairman.