AM Best Affirms Financial Strength Rating for USAA
AM Best has affirmed its Financial Strength Rating (FSR) of A++ (Superior) and Long-Term Issuer Credit Ratings (ICRs) of “aaa” (Exceptional) for United Services Automobile Association (USAA) and its subsidiaries in both the property/casualty and life/health sectors. The stable outlook accompanies these affirmations, and all entities are headquartered in San Antonio, Texas. Additionally, AM Best maintained the Short-Term Issuer Rating (IR) of AMB-1+ (Strongest) for the commercial paper program managed by USAA Capital Corporation (USAA CAPCO).
The credit ratings reflect USAA’s robust balance sheet strength, solid operating performance, favorable business profile, and enterprise risk management. USAA Group is a significant contributor to the larger organization, holding a leading position in U.S. personal lines insurance, particularly auto and home coverage. This competitive standing underscores its substantial market presence.
Recent operational improvements for USAA Group include strategic rate increases and refined underwriting measures, effectively reducing claims volatility. These strategies have yielded positive results in the personal auto and homeowners insurance sectors, with reduced net catastrophe losses benefiting the 2025 outcomes. Furthermore, USAA’s commitment to technology and direct-to-consumer sales models has resulted in lower expense ratios compared to industry standards, further supported by a wide product range and a strong brand reputation, which contributes to high member retention rates.
USAA Group maintains the strongest risk-adjusted capitalization, as evidenced by Best’s Capital Adequacy Ratio, supported by a conservative and diversified investment approach. As of late 2025, the debt-to-total capital ratio was 16.8%, with stable interest coverage, reflecting solid financial flexibility. This position is bolstered by USAA's access to borrowing channels through the Federal Home Loan Bank and various note and commercial paper programs via USAA CAPCO.
For the USAA Life Insurance Company and its New York-based subsidiary, USAA Life Insurance Company of New York, AM Best’s assessments continue to highlight strong balance sheet integrity and operating performance, buttressed by a consistent growth trajectory in premium revenues. The parent entity’s infusion of $300 million in capital in 2025 supports USAA Life Group's ongoing expansion plans.
The affirmed ratings, alongside stable outlooks for USAA and its subsidiaries, underscore the organization’s strategic role in providing life and health products in addition to general insurance offerings to its extensive membership and broader markets. Visit AM Best’s Recent Rating Activity web page for full details on the ratings discussed in this summary. AM Best remains a global leader in credit rating services within the insurance industry, operating multiple regional offices worldwide.