USAA is owned by its policyholders, as it operates as a reciprocal insurance exchange where policyholders share each other's risk. The company's executive council manages daily operations, and USAA has its headquarters in San Antonio.
USAA is a diversified financial services group of companies, including a Texas Department of Insurance-regulated reciprocal inter-insurance exchange and subsidiaries offering banking, investing, and insurance to families who serve or served in the United States Armed Forces.
USAA was founded in 1922 in San Antonio, Texas, by a group of United States Army officers as a mechanism for mutual self-insurance when they were unable to secure insurance because military officers were deemed high risk.
Despite initial success, a dispute between competing factions for control threatened its long-term viability.
The issue was resolved when the feuding members agreed to hire a leader from outside. This resulted in the appointment of Major General Ernest Hinds as general manager and secretary-treasurer in 1928. In the late 1960s, USAA began to transition from mail to phone-based sales and services.
USAA has since expanded to offer banking and insurance services to past and present members of the military and their families. Expanded services include:
Automobile insurance
Homeowners insurance
See AlsoUSAA NewsUmbrella insurance
Personal property insurance
Annuities
Banking
Investing and financial planning
In 2015, USAA employed more than 32,000 people at its offices throughout the world. In 2019, USAA's reported annual revenue was $35.62 billion.
