USAA Financial Strength Rating Reaffirmed by AM Best
AM Best has reaffirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of "aaa" (Exceptional) for United Services Automobile Association (USAA), alongside its property/casualty and life/health subsidiaries. The Long-Term Issue Credit Rating of "aaa" (Exceptional) for the medium-term note program and senior unsecured medium-term notes of USAA Capital Corporation (USAA CAPCO) has been sustained, with all ratings maintaining a stable outlook. These organizations are headquartered in San Antonio, TX.
The ratings for USAA and its P/C affiliates, known collectively as USAA Group, highlight a robust balance sheet, respected operating performance, and a favorable business profile, all underpinned by effective enterprise risk management strategies. Historically, the P/C group plays a pivotal role within the USAA organization, contributing significantly to its strategic objectives.
USAA provides an extensive range of products through its property/casualty and life/health insurers, complemented by financial services from USAA Federal Savings Bank. With a membership base of 14.3 million, USAA ranks among the top 10 personal lines product writers in the U.S., offering services like private passenger auto and homeowners insurance.
In recent years, USAA Group has demonstrated operational enhancements, supported by rate increases and improved claims management aimed at minimizing volatility. The group's 2025 performance was characterized by reduced net catastrophe losses and positive trends in personal auto and homeowners losses. Ongoing underwriting initiatives are addressing high claims severity in these sectors. Technological investments and direct-to-consumer marketing have led to lower expense ratios, exceeding AM Best’s personal lines composite average. The group's diversified product portfolio and strong branding contribute to high membership retention.
USAA's debt-to-total capital ratio was at 16.8% at the end of 2025, excluding accumulated other comprehensive loss, incorporating borrowings from the Federal Home Loan Bank. There has been an improvement in interest coverage, further solidifying its financial position. USAA's investment strategy remains conservative and well-diversified, benefiting from multiple borrowing options, including those through the Federal Home Loan Bank and USAA CAPCO programs.
The ratings for USAA Life Insurance Company and USAA Life Insurance Company of New York underscore a very strong balance sheet and excellent operating performance. These entities offer life, annuities, and health products, enjoying growth in direct premium with profitability supporting solid capitalization. There was a $300 million parent company investment in 2025 to fuel growth.
Further information on the ratings and related disclosures can be found on AM Best’s Recent Rating Activity webpage. For comprehensive guidelines on Best’s Credit Ratings application, users can refer to the Guide to Best's Credit Ratings and associated assessment documentation. AM Best, headquartered in the U.S., operates in over 100 countries with offices across major global regions.