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United Services Automobile Association Review

United Services Automobile Association Ratings and Company Information

Company Rating:
Best Insurance Reports: A++
Url of page where rating was collected:
http://www.ambest.com/ratings/

Best Rating: A.M. Best rating: A++ (superior)

Type of Insurance Company: Mutual

Name of Parent Company:

Company Overview:
Company History: Founded 1922, USAA only insures members of the U.S. Military and their descendents. 2006 Fortune 500: 189th in Revenue; 87th in Net Worth; 76th in Assets.

USAA serves about 6 million member customers, primarily military personnel, military retirees and their families. Its products and services include property/casualty insurance, life insurance, banking, credit cards, discount brokerage, financial planning, and investment management. Insurance and financial products are sold mainly by mail, telephone and Internet. Personal insurance lines account for most of the insurance writings (private passenger automobile, dwelling fire insurance, homeowners, boatowners, comprehensive personal liability, household goods and personal effects, personal articles floater and personal umbrella policies). In addition to covering automobiles operated in the United States and its territories and possessions, USAA covers vehicles operated in Canada, Europe, Korea and certain islands in the Pacific and Caribbean). A 2000 agreement with the Hartford Financial Services Group offers commercial policies to USAA members that own small businesses. Under this program, USAA performs sales operations and marketing services while the Hartford performs underwriting, policy servicing and claims administration. Over 95% of 2005 premiums written were from private passenger auto liability (38.1%), auto physical damage (32.8%), and homeowners (24.8%). USAA also sells items such as computers, furniture, jewelry and home and auto safety devices by mail order and offers long distance telephone service, travel services and Internet access to its members. USAA was founded in 1922 by a group of U.S. Army officers to provide automobile coverage for members of the group, but the customer group that the organization serves has expanded to other military people and their family members as well as to employees of selected federal agencies (such as some foreign service and investigative agencies) and the range of products and services has greatly broadened. As a result of its unique client group and direct marketing sales methods, USAA claims to have a low cost structure and high retention rate that enable it to provide cost effective products and services. Although sales are made nationwide, about 40% of premium volume is derived from just 4 states – Texas (11.7%), California (11.6%), Florida (9.9%) and Virginia (6.7%).

Principle Sales Methods: Dedicated agents in USAA offices.

Life Annuity Business: USAA specializes in insurance and financial products for active and retired members of the U.S. Military and their families.

Auto Business: USAA specializes in insurance and financial products for active and retired members of the U.S. Military and their families.

Homeowners Business: USAA specializes in insurance and financial products for active and retired members of the U.S. Military and their families.

Health Business: USAA specializes in insurance and financial products for active and retired members of the U.S. Military and their families.

Special Business: USAA specializes in insurance and financial products for active and retired members of the U.S. Military and their families.

Company Financial Status:
Assets & Premiums: 2006 Assets: $113.5 Billion
2006 Premiums: $9.163 Billion
Standard & Poor's rating: AAA (extremely strong)
Moody's rating: Aaa (Exceptional)

Lines of Insurance:
Auto, Long Term Care, Life, Homeowners

States licensed to sell insurance in:
AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

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