USAA Reports $3.9B Profit and Record $48.6B Revenue in 2024 Amid Rising Premiums
USAA reported record financial performance in 2024, with profit reaching $3.9 billion and revenue hitting $48.6 billion, marking a 14.3% increase from 2023. This follows a rebound from a historical loss in 2022, underscoring USAA's resilient financial management amid challenging conditions like high inflation, interest rate fluctuations, and catastrophe-related claims totaling $4.3 billion. The company's net worth grew by 10% to $32.1 billion, reflecting strong financial stability.
USAA's membership expanded by over 1 million in 2024, reaching approximately 14 million members primarily comprising military personnel, veterans, and their families. This growth comes despite nationwide pressure on homeowners and auto insurance premiums, particularly in Texas, where premium increases continue but at a slower rate compared to previous years. Premiums rose from $32.2 billion to an estimated $37 billion, though average rate hike details were not disclosed.
The insurer highlighted efforts such as behavior- and usage-based driving programs, smart home discounts, and perks programs to provide cost-saving options to members. Additionally, USAA returned $2.2 billion to members through distributions, dividends, and rebates, reinforcing its member-focused business model. The company's diversified operations include life insurance and banking, with the latter facing regulatory scrutiny but maintaining substantial assets and deposits.
USAA's continued profitability aligns with broader industry trends, as peers like Allstate and Progressive also posted record revenues and increased earnings in 2024, reflecting heightened premium rates and effective risk management following pandemic-related underwriting losses and increasing catastrophe claims. Leadership transitioned in 2024 with Juan Andrade succeeding Wayne Peacock as CEO, bringing experience from the insurance and reinsurance sectors.
USAA's financial results and strategic initiatives, set against a backdrop of rising premium costs and evolving regulatory challenges, provide insights into the insurer's approach to balancing growth, risk, and member value. The company remains a significant employer and financial services provider in San Antonio, operating with a long-term strategic outlook amid a complex insurance market environment.