USAA Financial Strength Ratings Reaffirmed by AM Best

AM Best has reiterated the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aaa” (Exceptional) for United Services Automobile Association (USAA) and its subsidiaries in the property/casualty (P/C) and life/health (L/H) sectors. Similarly, the Long-Term ICR and Long-Term Issue Credit Rating (Long-Term IR) for the medium-term note program and senior unsecured notes of USAA Capital Corporation (USAA CAPCO) have also been affirmed. The outlook for these ratings remains stable, and the Short-Term Issue Credit Rating (Short-Term IR) of AMB-1+ (Strongest) on USAA CAPCO's commercial paper program has been reaffirmed. All entities are headquartered in San Antonio, TX.

USAA and its P/C affiliates, collectively known as USAA Group, have ratings that reflect a robust balance sheet, strong operating performance, and a solid business profile, supported by appropriate enterprise risk management. The ratings further underscore the strategic importance of the P/C group to the overall USAA organization. USAA offers a comprehensive range of insurance and financial products through its entities and ranks among the top personal lines insurers in the U.S., serving 14.3 million members with offerings such as private passenger auto and homeowners insurance.

In recent years, USAA Group's performance has strengthened, attributed to premium rate adjustments and robust claims management strategies, minimizing volatility. In 2025, the group benefited from reduced net catastrophe losses and positive trends in non-catastrophe claims for personal auto and homeowners insurance. USAA Group continues to implement underwriting strategies aimed at mitigating claims severity. Its focus on technological advancements and efficient direct-to-consumer marketing has contributed to cost efficiencies below the average for personal lines.

USAA Group's capitalization is fortified through diversified offerings and a reputable brand, leading to high membership retention. With risk-adjusted capitalization at the strongest level, according to Best’s Capital Adequacy Ratio (BCAR), USAA maintains a conservative and well-diversified investment portfolio. As of December 31, 2025, USAA’s unadjusted debt-to-total capital ratio stands at 16.8%, inclusive of Federal Home Loan Bank borrowings. The company has improved interest coverage in 2025, maintaining financial strength and flexibility through various borrowing channels and notes programs managed by USAA CAPCO.

The ratings for USAA Life Insurance Company and its subsidiary, USAA Life Insurance Company of New York, collectively USAA Life Group, reflect sturdy balance sheets, effective operating performance, and strategic significance within the broader USAA organization. The Life Group offers life insurance, annuities, and health products with consistent premium growth and profitability, endorsing their capitalization. Continued capital contributions from the parent company, such as the $300 million in 2025, support future expansion plans.

Specifically, the FSR of A++ (Superior) and the Long-Term ICRs of “aaa” (Exceptional) with stable outlooks are affirmed for subsidiaries like USAA Casualty Insurance Company, USAA General Indemnity Company, and others. USAA Capital Corporation affirmations include exceptional ratings on senior unsecured notes and the Short-Term IR of AMB-1+ (Strongest) for its commercial paper program. For further details, AM Best's website offers comprehensive information on the ratings and relevant disclosures.

AM Best serves as a prominent credit rating agency, news publisher, and data analytics provider focused on the insurance industry. Operating globally, it provides services from its headquarters in the U.S. and multiple international locations.