USAA 2010 Report to Members

Transcription

USAA 2010 REPORT TO MEMBERS
SERVING YOU
THROUGH LIFE
USAA IS MY
USAA’s Car Buying Service, part of Auto Circle ™
No-Haggle Pricing with Lowest Price Guarantee
EVERY STEP AND STAGE OF LIFE HAS ITS CHALLENGES. USAA’s financial strength
enables us to provide a broad range of financial products and services to help you navigate
life’s uncertainties and take advantage of its opportunities. And while USAA means a lot
of different things to every one of our 8 million members, one thing remains constant —
we know what it means to serve.
EXPLORE THE INTERACTIVE VERSION OF
THIS REPORT, VIA PC OR MOBILE DEVICE,
AT USAAREPORTTOMEMBERS.COM.
Brandon Morrison
USAA MEMBER SINCE 2005
Brandon Morrison knows a good deal when he
sees one.
After all, he buys equipment and materials every
day in his active-duty role. And he does a lot of
research to find the best bargains. When he and his
wife, Martha, decided to buy a new truck, he knew
what he wanted: a great price and no haggling.
So Brandon and Martha went online to
USAA Auto Circle,™ where members can find,
finance and insure new or used vehicles. They
found pickups that cost $2,000 to $6,000 less
than MSRP at nearby USAA-certified dealers.
After a few months of shopping with the Lowest
Price Guarantee in their hands, the Morrisons —
including daughter, Jade — became the proud
owners of their dream truck. And they saved
thousands of dollars on the deal to boot.
See legal information on Page 21.
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Pat & Manuel Escobar
USAA MEMBERS SINCE 1993
Pat and Manuel Escobar realized that they were
cutting it close.
The couple had made some mistakes handling
their investments over the years, and they
came to USAA to help them get back on track.
With retirement nearing for both of them,
the second-generation USAA members feared
they had waited too late to get assistance.
USAA helped them consolidate their scattered
investments and plan for their retirement income
needs. And, despite the turbulent economy,
USAA aided the couple in reaching their goal
of enjoying their golden years in sunny Arizona,
right back where they started out as college
sweethearts.
USAA IS OUR
Guaranteed Income Annuity
Individual Retirement Accounts
Investments/Insurance: Not FDIC Insured · Not Bank Issued, Guaranteed or Underwritten · May Lose Value
2
The Escobars’ experience may not be representative of other clients and is no guarantee of future performance or success.
The fixed annuity guarantee against principal loss depends on the claims paying ability of the insurance company. An annuity is
a contract sold by an insurance company to provide income, usually after retirement, that cannot be outlived.
USAA IS MY
Four-Star Checking
USAA App for Android ™ and Deposit@Mobile ®
Rebecca Vogler
Rebecca Vogler doesn’t know the meaning
of “slow down.”
As the mother of an 8-year-old, she’s constantly
on the go taking care of her son, tutoring kids
at a nearby military installation and pursuing
a career in clinical psychology. Not surprisingly,
Rebecca takes care of as many of life’s details as
she can via her mobile phone.
And, after switching to USAA Bank, that
includes managing her money. Thanks to the
USAA Mobile App for Android, she monitors
her accounts daily and uses the Deposit@Mobile
feature to take pictures of checks and deposit
them in her account wirelessly.
A USAA member thanks to her father, who
served as a Marine, Rebecca wishes she had
switched sooner. But she’s happy that USAA
helps make her life a little less hectic now.
3
USAA IS MY
Term Life Insurance
Home and Auto Insurance
4
Je≠rey Fason, USAF (Ret.)
Jeff Fason is a father, a husband and a protector.
The retired Air Force lieutenant colonel knows
that life doesn’t always follow the best-laid plans.
He has seen how the deaths of those serving our
country can leave their families unprepared.
And he’s committed to making sure that his wife,
Ingrid, and children are well-cared for, no
matter what.
That’s why Jeff has stayed with USAA for his life,
auto and home insurance, even though competitors have tried to lure him away. He knows how
important it is to work with a provider that
understands the military and their families, as
well as one that’s solid and financially strong.
Last summer, Jeff and Ingrid were blessed with
something new to protect: a baby daughter, Jenesis.
She’s truly a new beginning for the Fasons; her
sister Keoni and brother Jalen are both more than
a decade older. Jeff is at ease knowing that USAA
will be there for his entire family.
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John D. Monahan, USA (Ret.)
Jack Monahan didn’t need a lot of convincing.
Among the first to hear The American Legion was
considering an alliance with USAA, he knew it
was a perfect match. For more than three decades,
Jack has turned to USAA to insure his home
and at least a dozen cars over the years. He has
USAA life insurance, a USAA credit card, and
he’s even used USAA to buy jewelry for his wife
and daughters.
USAA IS OUR
Serving the Needs of Veterans Who Have Honorably Served
His biggest hope is that the relationship will bring
more USAA members to The American Legion,
too. Jack believes both organizations do good work,
and they’ve inspired him to do the same in his
professional role as Administrator of the State of
Connecticut Soldiers’, Sailors’ and Marines’ Fund.
Daniel S. Wheeler, USN
NATIONAL ADJUTANT, THE AMERICAN LEGION
Dan Wheeler seriously believes in doing his
homework.
Preferred Source for Financial Products and Services
When The American Legion first looked at
exploring an affinity relationship with USAA,
he went undercover to look at what membership
could offer him. The former Navy sonarman
called USAA to get a quote on auto insurance
and made no mention of who he was or where
he was from.
After learning he could save hundreds of dollars
a year on his family’s policies, Dan switched to
USAA from an insurance company he’d been
with for 31 years. He has since added a USAA
credit card and has been impressed with the
service. Dan believes that USAA treats members
more like brothers-in-arms than just customers.
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USAA IS YOUR ALLY IN
SUPPORTING THE MILITARY
In 2010, USAA deepened its ties with the military
community by forging affinity relationships with a
diverse range of military associations and organizations.
As the financial services provider of choice for many
of these groups, USAA can now deliver best-in-class
products and services to their members. USAA also
supports the organizations and their efforts to serve
veterans who have honorably served, active-duty
military and their families.
So far, USAA has formed alliances with these
military-related groups:
Air Force Association • Air Force Sergeants Association • Association
of Graduates of the United States Air Force Academy • Association
of the United States Navy • The Enlisted Association of the National
Guard of the United States • Marine Corps Association • Military
Officers Association of America • Naval Aviation Museum Foundation •
Non Commissioned Officers Association • Naval Enlisted Reserve
Association • Texas Aggie Corps of Cadets Association • The American
Legion • U.S. Naval Institute • Wounded Warrior Project
LETTER FROM THE CHAIRMAN
USAA demonstrated in 2010 that putting members first
can lead to outstanding financial performance — despite
a shaky economy that is slowly emerging from the worst
recession in recent decades.
While other companies struggled against
economic headwinds, USAA maintained
its reputation for the best customer
service, added members, strengthened
its financial foundation and offered new
products and services to help members
work toward their financial security.
How did USAA accomplish this? For
starters, President and CEO Joe Robles
and his management team have pursued
a clear mission to make USAA the financial services provider of choice for the
military community and their families.
To that end, in 2009, USAA extended
membership to all those who have
honorably served in the U.S. military.
Meanwhile, we’ve continued deepening
our relationships with existing members
by rolling out innovative new products
and service channels, and investing in
people and technology to provide even
better member service.
NET NEW INVESTMENTS BY MEMBERS
(in billions)
$7.1
2010
$6.9
2009
2008
You have responded by trusting
USAA with your hard-earned money,
bringing nearly $7.1 billion in net new
assets to USAA in 2010. We now have
more than $147 billion in owned and
managed assets.
Thank you for the nearly
800,000
PHONE CALLS, E-MAILS AND LETTERS
TO SENATORS — HELPING PRESERVE THE WAY
USAA DOES BUSINESS.
Our financial strength has contributed
to our position as a corporate leader.
USAA now ranks 132nd on the FORTUNE
500® annual ranking of America’s largest
corporations, and USAA is the only
property and casualty insurance group
left standing that retains the highest ratings for financial strength from A.M.
Best, Moody’s and Standard and Poor’s.
And this was never more evident than
in 2010, when a late change to federal
financial-reform legislation threatened
to change the way USAA does business.
Members mobilized by sending nearly
800,000 phone calls, e-mails and letters
to their senators. We can’t thank you
enough for an amazing response that
favorably changed the outcome of potentially restrictive legislation for USAA.
We’ll continue to be vigilant for other
regulatory threats that might impact
our members.
This report — like USAA itself —
is less about USAA than it is about the
members we serve. We will endeavor
to continue to deliver the service that
you, our members — including the fine
men and women who put their lives
on the line for our country — deserve.
John H. Moellering
Lt. General, USA (Ret.)
Chairman of the Board
USAA’s strength is manifest not only in
our financial capacity but also in the way
our members look out for one another.
$3.6
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USAA’S MISSION
The mission of the association is to facilitate the
financial security of its members, associates and
their families through provision of a full range of
highly competitive financial products and services;
in so doing, USAA seeks to be the provider of choice
for the military community.
LETTER FROM THE CEO
DEAR FELLOW
USAA MEMBERS,
Every year, we report to members about how USAA
performed during the past year. You report back to me,
too. Every day, I get e-mails, letters and phone calls from
members, telling me about their experiences with USAA.
Just a few months ago, an officer on
active duty in Iraq left an emotional
voice mail thanking one of our member
service representatives. Another lender
was about to foreclose on the officer’s
home in the states, and we were able
to save her home from foreclosure.
When we say that USAA serves you
through every stage of life, we’re talking
about people like that service member
and moments like these: A sudden
deployment. Managing debt. The birth
of a baby. Buying a home. Planning for
retirement. The life of military-service
members and their families is one we
understand, because many of us have
been in those shoes and boots. USAA
was created nearly 89 years ago for and
by members of the military. Today, about
one in five USAA employees is actively
serving, has served or is a military spouse.
Many more are the sons and daughters,
brothers and sisters, and mothers and
fathers of those who have served.
8
In 2010, USAA was able to serve more
members and meet more needs than
ever before. Our members benefited in
several tangible ways.
USAA invested in new technology capabilities and introduced new services to
simplify your life. A great example in
the past year was the introduction of the
Auto Circle™ and Home Circle™ solutions,
which have saved thousands of members
time, money and hassle. From one simpleto-navigate website — or using a smart
phone — members can now find, finance
and insure a car or home. Members also
have more and enhanced choices in how
to do business with USAA — whether by
phone, online, mobile (try our new app
for the iPad®) or at one of our new faceto-face financial centers opened in select
locations in 2010.
GIVING BACK TO OUR MEMBERS
857M
$
2010
2009
2008
$
1.2B
1.3B
$
In 2010, USAA returned $1.3 billion to our members, associates and customers in dividends, distributions,
and bank rebates and rewards — 12 percent more than the year before.
2010 IN NUMBERS
Number of USAA employees who are actively
serving, have served or are military spouses.
Increase in number of
USAA members.
Amount paid out in home
and auto claims by USAA.
Reinforcing our commitment to understanding military
families better than any financial services provider
Growing in strength, thanks to expanding
eligibility to those who have honorably served
Being there for our policyholders
when they most need it
#
1
1 in 5
18.7B
$
MORE THAN
$
165M
617,000
$
7.4B
Where USAA ranked in
numerous financial industry
surveys and studies.
USAA’s net worth,
an increase of $1.7 billion
from 2009.
How much USAA members
saved through refinanced mortgages
and car-buying services.
Excelling in customer service
and innovation
Maintaining our ability to help keep
our commitment to members
Saving our members money on a
diverse range of innovative products
We were also able to return more money
back to you in 2010. Once we met our
current and projected financial needs,
USAA gave back $1.3 billion to our
members and customers in dividends,
distributions, and bank rebates and
rewards — 12 percent more than the
year before. Additionally, we helped
members and customers save more than
$165 million last year through refinanced
mortgages and car-buying services. And
we carefully managed reserves to be
there for our insured members in their
times of loss. Last year, USAA paid out
$7.4 billion in auto and home claims,
despite a year with no major hurricanes
along U.S. coasts.
More members of the military community are now eligible to join USAA.
After expanding membership in 2009
to all who have honorably served in the
U.S. military, USAA now has more than
8 million members. We also forged new
relationships with a number of militaryrelated organizations in 2010, including
The American Legion and the Military
Officers Association of America. These
relationships are a logical extension of
our mission to facilitate the financial
security of our military members and
their families.
Our members continued to enjoy awardwinning service levels and reported
97 percent customer satisfaction. In fact,
USAA again garnered numerous top
scores for customer service from leading
research firms such as J.D. Power,
Forrester Research, Inc. and others.
Of course, the ability to serve more
members and meet more needs rests
on a foundation of financial strength.
You will see in the pages ahead that
USAA grew stronger in 2010. Thanks
in part to more efficient operations and
prudent financial management, our net
worth — the best measure of our ability
to keep our commitment to our members
today and in the future — increased
$1.7 billion, to a record $18.7 billion.
One valuable asset that doesn’t appear
on our balance sheet is the bond of trust
between USAA and our members.
The core values that guide the military
also inspire USAA to do the right thing
because it’s the right thing to do. As we
move into another year of business and
regulatory challenges, we intend to
continue earning your trust by knowing
you and serving you better through every
stage of life.
Sincerely,
Josue (Joe) Robles Jr.
Maj. General, USA (Ret.)
President and Chief Executive Officer
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HOW WE SERVE YOU
Serving our members means more than just o≠ering a full range of
financial products and services. It means helping you meet your financial
needs for every facet and stage of your life.
Insurance
Banking
Investments
Retirement
Advice
Comprehensive protection
backed by competitive rates
and exceptional service on auto,
home and life insurance, and
more. Members who switch save
an average of $450 a year on
auto insurance.
Savings and service you expect
from USAA Bank, with the 24/7
convenience of online and mobile
banking. USAA refunds up to
$15 per month in ATM fees charged
by other banks nationwide.
USAA offers a full range of
investment solutions, including
mutual funds, IRAs, brokerage
services, college savings choices
and more.
A complete suite of products
designed to help you manage
your wealth and deliver retirement
income, backed by professional
help from our retirement advisors.
Guidance to help you achieve
your financial goals, including
personalized fee-based planning
and free advice for every stage
of your life from licensed, salaried
financial professionals.
I N V E S T M E N T S
SPECIAL MILITARY PRODUCTS & SERVICES
MILITARY PROTECTION PLUS LIFE INSURANCE
MILITARY CHECKING FOR RECRUITS
DEPLOYED-MEMBER BENEFITS
MILITARY PCS BENEFITS
SURVIVORSHIP SERVICES
PROPERTY & CASUALTY INSURANCE
AUTO INSURANCE
MOTORCYCLE, BOAT, ANTIQUE AUTO & RV INSURANCE
UMBRELLA INSURANCE
HOME INSURANCE
RENTERS & RENTAL PROPERTY INSURANCE
VALUABLE PERSONAL PROPERTY INSURANCE
FLOOD & WIND INSURANCE
SPECIALTY PROPERTY INSURANCE
MEMBER-OWNER BUSINESS INSURANCE
LIFE INSURANCE
TERM LIFE INSURANCE
PERMANENT LIFE INSURANCE
SAVINGS & INCOME ANNUITIES
MEDICARE SOLUTIONS
INVESTMENTS
MUTUAL FUNDS
INDIVIDUAL RETIREMENT ACCOUNTS
BROKERAGE SERVICES
COLLEGE SAVINGS
RETIREMENT SOLUTIONS
PERSONAL ASSET MANAGEMENT
BANKING
CHECKING
SAVINGS
CERTIFICATES OF DEPOSIT
CREDIT CARDS
HOME MORTGAGE LOANS
HOME EQUITY LOANS
AUTO LOANS
PERSONAL LOANS
ADVICE & ADVISORY SERVICES
FREE FINANCIAL ADVICE
PERSONAL FINANCIAL PLANNING
RETIREMENT PLANNING
WEALTH MANAGEMENT
TRUST SERVICES
MARKET NEWS & RESEARCH
ADVICE ARTICLES & CALCULATORS
SERVICES & INNOVATIONS
AUTO CIRCLE™
CAR BUYING SERVICE
HOME CIRCLE™
MOVERSADVANTAGE ®
LEARN MORE AT USAA.COM
DEPOSIT@HOME®
MOBILE APPS FOR IPHONE®, ANDROID™ & BLACKBERRY™
DEPOSIT@MOBILE®
EASY DEPOSIT
WEB BILLPAY®
CREDIT CHECK MONITORING
USAA® MONEY MANAGER BUDGETING TOOL
Investing in securities products involves risk, including possible loss of principal.
Investments/Insurance: Not FDIC Insured · Not Bank Issued, Guaranteed or Underwritten · May Lose Value
10
Products and services listed are offered through USAA and its affiliates. Data collected from publicly available sources.
See more legal information on Page 21.
USAA IS YOUR
ANYTIME, ANYWHERE BANKER
Find out about USAA
Mobile banking and more
at usaa.com/mobile.
Banking can be convenient — even enjoyable — if you do business with
a bank that puts its membership first. At USAA Bank, we believe that:
Your financial needs are our top priority.
Banking is something you should
be able to do anywhere, anytime.
That’s why we offer checking with no monthly service fees,
ATM fee refunds, and credit cards with rich rewards and
no annual fee.1
To make your life easier, we offer free account alerts,
Web BillPay® and automatic budgeting help with
the USAA® Money Manager personal budgeting tool2 —
all available on usaa.com or USAA’s mobile apps.
Making a deposit shouldn’t mean
making a trip.
We were the first to provide Deposit@Home,® Deposit@Mobile®
and, most recently, USAA Easy Deposit for qualifying
members.
Military life is special, so we provide
special benefits.
For our active military members who are called to
serve our country, we reimburse foreign transaction
fees and lower credit card interest rates to 4 percent —
even lower than the 6 percent the government requires.3
USAA BANK RETURNED
$424 MILLION
TO MEMBERS IN THE FORM OF
BANK REBATES (INCLUDING ATM
FEES) AND REWARDS IN 2010.4
USAA CREDIT CARDS OFFER AN AVERAGE
ANNUAL PERCENTAGE RATE THAT IS
43% LOWER
THAN THE NATIONAL AVERAGE APR.*
USAA IS YOUR
ONE-STOP SHOPPER, LENDER
AND INSURER
USAA IS YOUR
RETIREMENT ADVISOR
By choosing USAA to assist in your retirement plan, you selected
the services of licensed advisors who see the big picture and work
together toward a common goal: turning your hard-earned
savings into a retirement plan. At USAA Retirement Solutions,
we believe that:
USAA Auto Circle™
Find, finance and insure your
new vehicle at www.autocircle.com
or on your USAA Mobile App for
iPhone® or Android.™
Your life is built on a strong set of values.
Your retirement plan should be, too.
If service, loyalty, honesty and integrity are the keys to developing a retirement
plan, we can help you. Plus, no other financial services organization knows the
military like USAA.
USAA MEMBERS SAVE AN AVERAGE OF
$4,573 OFF MSRP
WHEN BUYING A NEW CAR OR TRUCK
THROUGH AUTO CIRCLE. 5
You shouldn’t feel pressured.
We understand that making informed choices takes time — and consideration.
Our retirement advisors work on salary, so we’re committed to serving
your interests.
A multilayered retirement plan with plenty of
choices is a must.
USAA Home Circle™
USAA offers a full range of retirement services, including income and asset
management strategies, legacy planning and health care solutions.
Buy, sell, finance, insure and even rent
your home at www.homecircle.com.
HAVING ENOUGH MONEY SAVED FOR RETIREMENT
IS THE NO. 1 FINANCIAL CONCERN OF OUR MEMBERS.
GET UP TO A
IN 2010, USAA HELPED MEMBERS
NEARLY 500,000 TIMES IN PREPARING
FOR THEIR RETIREMENT.
$3,100 CASH BONUS
WHEN YOU BUY AND SELL YOUR
HOME VIA USAA MOVERSADVANTAGE,®
A PART OF HOME CIRCLE.6
USAA IS YOUR
MAKE-LIFE-EASY INNOVATOR
USAA App for iPad ®
USAA Easy Deposit
USAA Financial Centers
Built from the ground up to fully leverage the interactivity
of the iPad,® the app delivers many of the transactional
features already found on USAA’s App for iPhone,® but also
adds world-class content, news and advice.
Our newest way for you to instantly
transfer checks for deposit in your
USAA checking or savings account.7
At select locations in the U.S., you can now stop in
and meet face to face with service representatives
to open a bank account or auto insurance policy,
or get help on more complex financial decisions by
videoconferencing with a USAA financial planner.
On-site USAA ATMs also make bank transactions easy.
GO TO THE APPLE® IPAD®
APP STORE® TO DOWNLOAD THE
FREE USAA APP FOR IPAD.
USAA EASY DEPOSIT
WILL BE AVAILABLE AT
1,900 LOCATIONS
OF THE UPS STORE
THROUGHOUT THE
COUNTRY BY APRIL.
FIND A USAA FINANCIAL CENTER
LOCATION NEAR YOU AT
USAA.COM/FINANCIALCENTER.
*Argus Information and Advisory Services: 3Q 2010 Key Performance Indicator Study.
You must qualify for USAA’s Deposit@Home® and Deposit@Mobile;® eligibility for USAA property and casualty insurance and credit qualification required.
See more legal information on Page 21.
11
USAA IS OUR
Imparting the Core Values of Service, Loyalty, Honesty and Integrity
Highly Ranked in FORTUNE’s 100 Best Companies to Work For ®
Norma Renteria
Christopher Wahl
EMPLOYEE SINCE 2001
EMPLOYEE SINCE 2010
You want Norma Renteria on your side.
Christopher Wahl walks the walk while he talks
the talk.
She took the call from a deployed military officer
who was already fighting one battle overseas.
The member had just found out her home
was hours from entering foreclosure, and she
frantically called USAA for help.
Norma quickly leapt into the fray, using some
quick thinking and more than a little determination to solve the problem and save the
member’s house. The thankful officer was then
able to return her focus to where it belonged:
on her troops in the field.
Norma and USAA had her back, even from
several thousand miles away.
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Only days after joining USAA as an investment
services representative, Chris started getting the
idea in his head that a second career might be
perfect for him. Inspired by the active-duty and
veteran military members he spoke with every
day, Chris decided to enlist in the Army Reserves
and apply to Officer Candidate School.
He will start basic training in May and attend
OCS in August. But his job will be waiting for
him at USAA when his service is complete, and
then he’ll number among the 20 percent of
USAA employees who are actively serving, have
served or are military spouses.
OUR MEMBERSHIP
Nearly 89 years ago, a group of 25 Army officers formed USAA when they
banded together to insure each other’s automobiles. Today, USAA is open to
all those who have served their country honorably. In turn, we are proud to
serve more than 8 million active-duty service members and veterans of all
ranks and grades, as well as their families.
2010 AT A GLANCE
MEMBERSHIP INCREASED BY:
MEMBERSHIP GROWTH:
617,000
MEMBER RETENTION:
98%
1980
1990
2000
2009
2010
1922
25
1.2M
2.0M
4.4M
7.4M
8.0M
MEMBER SATISFACTION:
97%
OUR MOBILE MEMBERSHIP
Nearly
More than
175%
15,000
$
$
growth in use
of USAA Mobile
logins to USAA Mobile
every hour
deposited via
Deposit@Mobile®
every minute
deposited safely and securely via
smart phones since Deposit@Mobile
launched in 2009
6,000
2 Billion
OUR AWARDS & ACCOLADES
#1 “Best in Class”
COMPUTERWORLD’S
IN JAVELIN STRATEGY &
RESEARCH’S 2010 MOBILE
BANKING SCORECARD
#1 Best Place to Work
in Information Technology
August 19, 2010
June 21, 2010
Top-Ranked
Named Company
BY CONSUMERS FOR
CUSTOMER ADVOCACY IN
BANKING AND INSURANCE
2010 J.D. Power U.S. Auto Insurance Study:
USAA HIGHEST RATED INSURER
August 3, 2010
2010 J.D. Power U.S. Homeowners Insurance Study:
Forrester Research, Inc.,
an independent research firm
“Customer Advocacy 2010: How Customers
Rate U.S. Banks, Investment Firms, and
Insurers,” January 29, 2010
USAA HIGHEST RATED INSURER
October 5, 2010
529 COLLEGE SAVINGS PLAN
Ranked #1
For 3-year and 5-year
performance*
by Savingforcollege.com, December 31, 2010
Ranked #2
InformationWeek’s
2010 TOP 10 MOST
INNOVATIVE COMPANIES
(#7 Overall, #1 in Insurance)
September 15, 2010
CUSTOMER
SERVICE CHAMPS
Bloomberg Businessweek Magazine,
February 2010
Only company ranked in top two every
year since list inception
*Ranking based on the plan’s relevant portfolio performance in seven unique asset allocation categories. USAA’s College Savings Plan ranked No. 7 out of 49 for the 1-year period, ranked No. 1 out of 47 for the 3-year
period and ranked No. 1 out of 37 for the 5-year period, all as of December 31, 2010.
Consider the investment objectives, risks, charges and expenses of the USAA College Savings Plan (Plan) carefully before investing.
Call 1-800-292-8825 to request a Plan Description and Participation Agreement containing this and other information about the
Plan. Read it carefully before investing. If you or the beneficiary are not residents of the State of Nevada, consider before investing
whether your or the beneficiary’s home state offers a 529 plan that provides its taxpayers with state tax and other benefits not
available through this Plan. Please consult your tax advisor.
Investing in securities products involves risk, including possible loss of principal. Past performance is no guarantee of future results.
Investment and insurance products are not deposits, not insured by FDIC or any government agency, not guaranteed by the Bank. Investment and certain insurance products may lose value.
Investments provided by USAA Investment Management Company and USAA Financial Advisors Inc., both registered broker dealers.
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OUR FINANCIAL STRENGTH
MANAGEMENT’S RESPONSIBILITY
FOR FINANCIAL REPORTING
The management of USAA is responsible for the
integrity and objectivity of the financial information
presented in this annual report. Due to the volume
of financial information contained in the audited
consolidated financial statements, which includes
the financial statements as well as the accompanying
footnotes, we have chosen not to include the full
audited consolidated financial statements in this
Report to Members.
The financial statements that appear in this document
have been selected from the audited consolidated
financial statements to give basic and necessary
financial information about USAA. Certain prior year
amounts were reclassified to conform to the current
year presentation. The selected financial information
was prepared by USAA in accordance with Accounting
Principles Generally Accepted in the United States of
America (GAAP), except for the key statutory data,
which was prepared in accordance with Statutory
Accounting Principles (SAP). Management believes
the financial information contained in the audited
consolidated financial statements fairly presents
USAA’s financial position, results of operations
and cash flows. A copy of the complete audited
consolidated financial statements of USAA, including
Ernst & Young LLP’s unqualified independent
auditors’ report thereon, is available upon request
to USAA headquarters in San Antonio, Texas.
USAA’s internal controls are designed to reasonably
ensure that USAA’s assets are safeguarded from
unauthorized use or disposition and that USAA’s
transactions are authorized, executed and recorded
properly. In addition, USAA has a professional staff of
internal auditors who monitor these controls on an
independent basis. The Finance and Audit Committee
of USAA’s Board of Directors engaged Ernst & Young
LLP as independent auditors to audit USAA’s financial
statements and express an opinion thereon. Ernst &
Young LLP’s audit included consideration of USAA’s
internal controls over financial reporting as a basis for
designing audit procedures that support their financial
statement audit opinion, but not for the purpose of
expressing an opinion on the effectiveness of USAA’s
internal controls over financial reporting.
USAA HIGHLIGHTS
The Finance and Audit Committee of USAA’s Board
of Directors consists of five members, who are not
officers or employees of USAA. This committee meets
periodically with management, internal auditors and
Ernst & Young LLP to ensure that management
fulfills its responsibility for accounting controls and
preparation of the consolidated financial statements
and related data.
Josue (Joe) Robles Jr.
Maj. General, USA (Ret.)
President and Chief Executive Officer
Kristi A
A. Matus
Executive Vice President
Chief Financial Officer
Years Ended December 31
2010
2009
2008
TOTAL MEMBERS (in millions)
8.0
7.4
7.0
TOTAL PRODUCTS (in millions)
33.5
30.8
29.1
TOTAL EMPLOYEES (in thousands)
22.6
21.5
21.9
2010
2009
2008
Revenue
Expenses
Net income
$17,946
15,309
2,637
$17,558
14,538
3,020
$12,912
12,489
423
Assets owned
Assets owned and managed
Total liabilities
Net worth
94,262
147,858
75,551
18,711
79,905
137,288
62,888
17,017
68,296
119,550
53,716
14,580
USAA CONSOLIDATED (Dollars in millions)
CONSOLIDATED STATEMENTS OF NET WORTH
Standing strong for tomorrow
Years Ended December 31 (Dollars in millions)
A solid financial position enables USAA to be there for our members year after year.
In 2010, USAA’s net worth increased by 10 percent to $18.7 billion.
NET WORTH
Net worth ensures the stability of USAA by providing that future potential losses
can be covered, regulatory and rating agency requirements can be met, and funding
is available for current and future operations.
Because of our financial strength, you can count on USAA to be here for you
through every stage of life.
$17.0
$13.1
2006
14
$14.4
$14.6
2007
2008
2009
$18.7
2010
2009
2008
$17,017 $14,580 $14,377
Beginning of year
Net income
2,637
3,020
423
Distributions to subscribers
(687)
(597)
(376)
Unrealized losses on securities
during year, net of income taxes and
—
—
(36)
reclassification adjustments
Other (includes change in accounting principles)
(256)
14
192
TOTAL NET WORTH
NET WORTH (in billions)
2010
$18,711
$17,017
$14,580
MEMBER DISTRIBUTIONS
Sharing our success
We honored our commitment to provide exceptional member experience and returned
a record $1.3 billion to members through distributions, dividends, and bank rebates
and rewards. This 12 percent increase in distributions was achieved by USAA running
an increasingly efficient operation and delivering the highest levels of service to our
members. In addition to the member distributions, USAA helped members with some
of the big decisions in life — refinancing mortgages and buying vehicles — saving them
more than $165 million. We were also there to help members as they searched for
solutions to work their way back to solid financial ground.
Subscriber’s Account distributions
Automobile policyholder dividends
2010
2009
2008
$416
$339
$170
178
151
69
Total automobile policyholder dividends and
Subscriber’s Account Senior Bonus*
Subscriber’s Account terminations
594
149
122
490
132
126
239
121
85
Total property and casualty distributions
Life insurance policyholder dividends
Bank rebates and rewards
865
44
424
748
44
396
445
44
368
$1,333
$1,188
$857
TOTAL DISTRIBUTIONS TO MEMBERS**
DISTRIBUTIONS TO MEMBERS (in millions)
Past dividends or distributions are not a guarantee or promise of future dividends or distributions.
$1,333
$1,188
$795
2006
*Members of the association with more than 40 years of membership may be eligible for the Senior Bonus,
which is an additional distribution from the member’s Subscriber’s Account.
**Includes amounts returned to members, associates and other customers.
$910
$857
2007
2008
2009
2010
CONSOLIDATED BALANCE SHEETS
Thriving through it all
USAA saw assets grow by 18 percent to $94 billion, which was largely fueled by
strong product volumes. Also contributing to this growth were previously securitized
bank loans, which came back onto the balance sheet in 2010 in accordance with new
accounting standards.
ASSETS
As each business segment of USAA continues to grow, we will remain focused on being
highly competitive and an industry leader in financial strength and member service.
ASSETS (in billions)
$79.9
2006
2009
2008
$8,786
$7,435
$6,277
35,033
1,956
37,548
2,124
1,343
473
6,999
31,633
1,587
28,739
1,977
1,380
459
6,695
23,634
1,284
26,532
1,812
1,469
754
6,534
$94,262
$79,905
$68,296
Insurance reserves
Life insurance — funds on deposit
Bank deposits
Borrowings***
Securities lending payable
Other liabilities
$14,062
$13,061
$12,158
13,626
39,775
3,441
477
4,170
11,544
33,467
534
478
3,804
8,423
28,954
610
754
2,817
TOTAL LIABILITIES
$75,551
$62,888
$53,716
18,711
17,017
14,580
$94,262
$79,905
$68,296
Cash and cash equivalents
Investments
Real estate investments, net
Bank loans, net***
Premiums due from policyholders
Property and equipment, net
Securities lending collateral
Other assets
TOTAL ASSETS
$94.3
$60.3
2010
$67.2
$68.3
2007
2008
2009
2010
LIABILITIES
NET WORTH
Total net worth
TOTAL LIABILITIES AND NET WORTH
***In accordance with new accounting standards, certain off balance sheet securitized bank loans and related
borrowings are now included in our 2010 results.
RATINGS OF FINANCIAL STRENGTH
Fulfilling our commitment
Contributing to our position as an industry leader, USAA Property and Casualty
Insurance Group was the only property and casualty insurer to maintain the highest
possible financial strength ratings from A.M. Best, Moody’s and Standard & Poor’s
rating agencies. These independent assessments of USAA’s financial strength
acknowledge our ability to fulfill our commitment to members.
USAA PROPERTY & CASUALTY INSURANCE GROUP
A++
A.M. Best Company
USAA FEDERAL SAVINGS BANK
AAA
Moody’s Investors
Service
Standard & Poor’s
USAA LIFE INSURANCE COMPANIES
A++
TOP 15%
OF PEER GROUP
SUPERIOR
Highline Banking Data Services
IDC Financial Publishing Inc.
Aaa
(Superior, highest
(Exceptional, highest (Extremely Strong, highest
of 16 possible ratings) of 21 possible ratings)
of 21 possible ratings)
Aa1
AAA
(Superior, highest
(Excellent, second highest (Extremely Strong, highest
A.M. Best Company
Moody’s Investors
Service
Standard & Poor’s
15
CONSOLIDATED STATEMENTS OF INCOME
Committing to quality
A continued focus on member experience, proactive expense control and rigorous
management of risk contributed to a highly successful year financially, with a net
income of $2.6 billion.
REVENUE
Revenue of $18 billion came mostly from strong product sales and retention. In
addition to members turning to us as a provider for their financial assets, more new
members looked to USAA to help meet their financial needs. A record 617,000 net
new members joined USAA in 2010.
Never forgetting that we are stewards of the membership’s assets, USAA continued
to practice exceptional expense control, evident in our property and casualty insurance
operation delivering an industry-leading operating expense ratio of 23.6 percent,
our lowest in more than 50 years.
$653
$2,917
$2,928
$2,221
Net losses, benefits and settlement expenses
Deferred policy acquisition costs
Real estate investment expenses
Interest expense
Dividends to policyholders
Other operating expenses
Total losses, benefits and expenses
Pre-tax income
Income tax expense (benefit)
2006
2007
ALL OTHER INCOME
UNREALIZED GAINS (LOSSES)
ON SECURITIES UNSOLD, NET*
2008
2009
2009
2008
$11,205
$10,363
$9,641
1,715
346
1,667
183
1,517
584
653
2,090
(1,847)
2,714
3,422
190
3,940
2,408
146
254
2,008
171
—
415
385
316
368
470
17,946
17,558
12,912
9,160
556
153
604
223
3,669
8,340
495
116
516
196
3,584
8,353
471
110
688
114
2,785
14,365
13,247
12,521
3,581
944
4,311
1,291
$2,637
$3,020
LOSSES, BENEFITS AND EXPENSES
$2,090
$2,238
Total investment return
Fees, sales and loan income, net
Real estate investment income
Servicing and contractual income on
securitizations
Other revenue
Total revenue
PRE-TAX INCOME (in millions)
$2,388
Insurance premiums
Investment returns:
Interest and dividends earned, net
Realized gains on securities sold, net
Unrealized gains (losses) on securities
unsold, net
2010
2010
NET INCOME
391
(32)
$423
($1,847)
*In 2008, USAA modified the presentation of unrealized gains (losses) from net worth to income.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Maintaining our focus
USAA produced positive operating cash flows of $4.9 billion due to strong
operational performance, prudent expense management and continued growth in
product volumes.
CASH FLOWS FROM OPERATING ACTIVITIES
Every month in 2010, USAA saw positive net cash flows coming from our member
investment activities, evidence of members’ trust in the financial stability of USAA.
As we continue to build our member insight and understanding, USAA will remain
steadfast in our commitment to quality and member satisfaction.
This level of member trust is not something we take lightly, and USAA will continue
to be here for our members in their search for financial solutions and stability.
CASH FLOWS FROM OPERATING ACTIVITIES (in billions)
$4.9
$3.3
$2.8
2007
2008
$2,637
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Increase in insurance reserves
645
Interest credited on policyholder deposits
574
Net realized gains
(346)
Unrealized (gains) losses on securities
unsold, net
(648)
Increase in premiums due from policyholders
(147)
Depreciation and amortization
173
Equity loss (earnings) in real estate
partnerships
5
Decrease (increase) in loans held for sale
1,137
Change in other assets/liabilities
835
Net cash provided by operating activities
2009
2008
$3,020
$423
581
524
(183)
508
427
(584)
(1,920)
(164)
143
1,710
(120)
189
7
(351)
1,337
(3)
1,387
(655)
2,994
3,282
4,283
(7,381)
(1,010)
(421)
4,360
(8,399)
(2,568)
(407)
14,244
(16,894)
(2,367)
(421)
(4,529)
(7,014)
(5,438)
(687)
(5,527)
6,309
920
(595)
(76)
4,513
1,336
(373)
161
2,068
997
1,015
5,178
2,853
1,351
1,158
697
7,435
6,277
5,580
$8,786
$7,435
$6,277
4,865
CASH FLOWS FROM INVESTING ACTIVITIES
$3.0
$2.3
2006
2010
2009
2010
Proceeds from investments sold or matured
Cost of investments acquired
Net increase in bank loans
Other uses
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Net (repayment) borrowing of debt
Net increase in bank deposits
Other
Net cash provided by financing activities
Net increase in cash and cash equivalents
CASH AND CASH EQUIVALENTS —
BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS —
END OF YEAR
16
OUR RESPONSIBILITY
SERVING OUR MEMBERS MEANS
SERVING OUR COMMUNITIES
Giving back to the places where they live and to the causes in which
they believe remains a vital mission to USAA and its employees and
retirees. Through significant gifts of time and money, we’ve made a
difference both locally and nationwide.
United Way
More than 98 percent of USAA employees pledged to give a record $6.7 million to the
United Way in 2010. With additional funds from USAA retirees and The USAA Foundation,
a total of more than $10.3 million will enable United Way to support services for
organizations nationwide.
MORE THAN $10.3 MILLION
GENERATED IN SUPPORT
OF UNITED WAY
Volunteering
In 2010, more than 7,800 employee and retiree
volunteers reported more than 368,000 hours
given. This is equivalent to nearly
7.7 MILLION IN VALUE GIVEN
BACK TO THEIR COMMUNITIES
$
Educating consumers
The USAA Educational Foundation ® provides
consumers with good information to make informed
decisions on important personal and financial
issues. The Foundation, a nonprofit organization,
offers a series of free guides available online or
by mail at usaaedfoundation.org.
5.2 MILLION
PUBLICATIONS
DISTRIBUTED
BY THE USAA
EDUCATIONAL
FOUNDATION
The 2010 San Antonio United
ited Way
campaign artwork was created
eated by
Bill Kleinedler. After being
g struck
by an IED while serving in
n Iraq
in 2006, Bill spent three years
in surgery and rehabilitation
ation
before he could again hold
d and
use a pencil. He finally was
able to return to his passion
ion
of painting and creation, and
strives to show others there
ere
is help, healing and hope
e
even in their darkest hours.
rs.
Charitable contributions
USAA, the USAA Federal Savings Bank and The USAA Foundation contributed more than
13 MILLION TO NONPROFITS
$
SERVING OUR MEMBERS MEANS
SERVING OUR ENVIRONMENT
Through our enterprise sustainability program, USAA is committed to
conducting business as a responsible steward of our natural resources.
We are focused on taking better care of the environment through sound,
sustainable business practices that help save money for the membership.
In 2010, our continued efforts to be green were recognized by the
Environmental Protection Agency with EnergyStar™ awards for our
San Antonio, Phoenix, Colorado Springs and Tampa campuses.
Fuel and emissions
Our Commuter Carpool Program saved more than 3.6 million miles
of driving and reduced carbon emissions by more than 1,800 tons.
Also, USAA saved 125,000 gallons of vehicle fuel in 2010 by using
more fuel-efficient vehicles, including seven electric and
11 hybrid cars and trucks, in our corporate fleet.
125,000 GALLONS
OF VEHICLE FUEL
SAVED IN 2010
Energy
Recycling
In 2010, USAA agreed to purchase 25 percent of its electrical power from renewable
energy sources — including wind power — in its San Antonio and Phoenix offices.
This made USAA one of the top FORTUNE 500® purchasers of renewable energy
in the country, per the EPA’s Green Power Partnership Program. These alternative
energy initiatives saved the equivalent of enough power to supply more than
2,300 homes for a year.
USAA RECYCLED
67% OF ITS WASTE
USAA’S OVERALL
ELECTRICAL CONSUMPTION
DECREASED BY 13%
This included nearly 4,700 tons of paper, glass,
electronics and other materials. We also removed all
plastic foam products from our workplace cafeterias
and replaced them with recyclable, compostable or
reusable service ware.
Water
In 2010, USAA reduced
fresh water consumption by
29 MILLION
GALLONS
Paper
More than 3.9 million members chose to have their USAA documents
delivered electronically in 2010.
MORE THAN 943 MILLION PAGES WERE
SAVED FROM BEING PRINTED AND MAILED
This is equal to approximately 122,000 trees and helped USAA save
more than $73 million.
17
OUR 2010 BOARD OF DIRECTORS
Sixteen accomplished individuals who have distinguished themselves through their
military and civilian careers comprise the USAA Board of Directors. Board members
conduct regular, formal evaluations of the CEO and corporate performance.
1.
2.
3.
4.
5.
6.
7.
8.
1. Lt. General John H. Moellering,
USA (Ret.)
Member since 1959. Elected 1996.
The former president and chief executive
officer of Lear Siegler Services Inc.,
Moellering is the founder of management
consultancy JM Associates, the board vice
chairman for Village Gardens Realty and
Village Gardens LLC, and is a member of
the adjunct faculty of the Kenan-Flagler
Business School of the University of North
Carolina. He also serves on the boards of the
Research Triangle Institute International
and the National Defense Industrial
Association. Moellering retired from the
U.S. Army as a lieutenant general following
28 years of distinguished service. After
early formative assignments in combat and
engineering units, which included combat
in Vietnam, his key command assignments
included command of an engineer district
in Vicksburg, Mississippi; assistant division
commander of the 9th Infantry Division and
High Tech Test Bed in Ft. Lewis, Washington;
commandant of the U.S. Military Academy
at West Point; and commanding general of
the U.S. Army Engineer Training Center at
Ft. Leonard Wood, Missouri. Key staff
assignments included service as a White
House Fellow on the White House staff;
teaching on the engineering and history
department faculties at West Point; executive
to the Army Chief of Staff in the Pentagon;
and finally, assistant to the Chairman of
the Joint Chiefs of Staff. A graduate of the
U.S. Military Academy, Moellering holds
a master’s degree in engineering from the
University of California, Berkeley, and is a
graduate of the Stanford Business School
Marketing Management Course for Senior
Executives. Since joining the USAA board
in 1996, Moellering has served on various
committees and chaired the Finance and
Audit Committee for six years before
becoming the Chairman in late 2007.
Chairman of the Board; Chair, Governance
and Executive committees; ex officio member,
Finance and Audit, Compensation and
Workforce, and Marketing and Programs
committees
2. Maj. General Josue Robles Jr.,
USA (Ret.)
Robles is president and chief executive officer
of USAA. He also served as the executive
vice president, chief fi nancial officer and
corporate treasurer. From 1990 to 1994,
Robles was a member of the USAA Board
of Directors. He joined USAA in 1994 as an
employee after 28 years of distinguished
military service, which included serving in
Korea, Vietnam, Germany and the Middle
East. He was the director of the Army Budget
18
and was the commanding general, 1st Infantry
Division (The Big Red One). During his military career, Robles was recognized numerous
times for service and honor. He received the
Distinguished Service Medal with Oak Leaf
Cluster, the Legion of Merit with two Oak
Leaf Clusters, the Bronze Star with Oak Leaf
Cluster and the Meritorious Service Medal
with Oak Leaf Cluster. Robles holds a bachelor of business administration degree in
accounting from Kent State University and
a master’s degree in business administration
from Indiana State University. In addition,
Robles also serves on the Boards of DTE
Energy and several nonprofit organizations.
Member, Governance and Executive
committees
3. General John P. Abizaid,
USA (Ret.)
Abizaid is an independent consultant on
international and strategic issues, a director
of RPM International Inc. and Defense
Venture Group, and an advisory board
member of several corporations. He also
serves as the Distinguished Chair of
West Point’s Combating Terrorism Center.
Abizaid’s 34-year Army career included
serving as the Commander of the United
States Central Command, overseeing
American military operations in a 27-country
region, from the Horn of Africa to the
Arabian Peninsula and South and Central
Asia, covering much of the Middle East
while supervising 250,000 U.S. troops. He
commanded troops during the invasion of
Grenada, the Gulf War and in Bosnia and
Herzegovina. Abizaid was also the executive
assistant to the Chairman of the Joint Chiefs
of Staff, director of strategic plans and policy
on the Joint Staff and director of Joint Staff.
A graduate of the U.S. Military Academy at
West Point, Abizaid holds a master’s degree
in area studies from Harvard University,
and was an Olmsted scholar at the University
of Jordan. As a member of the USAA board,
Abizaid served on the Finance and Audit
Committee before becoming a member
and then vice chair of the Marketing and
Programs Committee. Vice Chair,
Marketing and Programs Committee
4. Patricia C. Barron
Barron is the lead director of Quaker
Chemical Corp. and a director of Ultralife
Corporation and Teleflex Inc. She is a former
professor at the Stern School of Business,
New York University. She serves as a trustee
of several nonprofits that focus on her interests in education and health. She also served
as president of two Xerox divisions and as
vice president, Business Operations Support.
Barron graduated from Bedford College of
Physical Education in the United Kingdom
and holds a master’s degree in business
administration from Harvard Business
School. As a member of the USAA board,
Barron served as vice chair of the Finance
and Audit Committee, and chair of the
Compensation and Workforce Committee.
Chair, Compensation and Workforce
Committee; member, Governance and
Executive committees
5. Colonel Herman E. Bulls,
USAR (Ret.)
Bulls is the founder and chief executive officer
of Jones Lang LaSalle’s Public Institutions
division, specializing in delivering real estate
solutions to government entities, nonprofit
organizations, transportation facilities and
higher education institutions. He is also
president and chief executive officer of Bulls
Advisory Group LLC. He co-founded and
served as CEO of Bulls Capital Partners LLC,
a commercial mortgage company which
included SunTrust and Goldman Sachs as
successive partners. The company was sold
to a Wall Street entity in 2010. He is on the
boards of directors of Comfort Systems,
USA and Rasmussen Inc. and is vice chair
of the West Point Association of Graduates
Board of Directors. Bulls completed almost
12 years of active duty service with the
United States Army. His last active duty
assignments were working in the Office
of the Assistant Secretary of the Army for
Financial Management at the Pentagon
and as an assistant professor of economics
and finance at West Point. He has completed
the Army’s Airborne, Ranger and Command
and General Staff College courses and served
overseas in the Republic of Korea. He retired
as a colonel in the U.S. Army Reserves
in 2008. He is a member of the Executive
Leadership Council, an organization of senior
African American business executives from
FORTUNE 500® companies, and former
chairman of the board of directors of the
Executive Leadership Foundation. Bulls
received a bachelor of science degree in engineering from the U.S. Military Academy at
West Point and a master’s of business administration degree in fi nance from Harvard
Business School. Member, Finance and Audit
Committee
6. Lt. General Thomas P. Carney,
USA (Ret.)
A graduate of the U.S. Military Academy,
Carney is an independent consultant to
the defense industry and chairman of
CALIBRE Systems Inc. He held a variety
of key command and staff positions,
including director, program analysis and
evaluation, Office of the Chief of Staff, Army;
commanding general, 5th Infantry Division
(Mechanized), Fort Polk, Louisiana;
commanding general, U.S. Army Recruiting
Command; assistant division commander,
82nd Airborne Division; executive to the vice
chief of staff, Army; commander, 3rd Brigade,
2nd Infantry Division, Korea; and commander,
2nd Battalion (Mechanized), 87th Infantry,
Mainz, Germany. Carney also served two
infantry tours in Vietnam. After a 31-year
military career, he served as Deputy Librarian
of Congress, where he was chief executive
officer. Carney earned a master’s degree in
operations research and systems analysis
from the U.S. Naval Postgraduate School. As
a member of the USAA board, Carney served
on the Finance and Audit Committee, as vice
chair of the Personnel and Membership
Committee, and chair of the Marketing and
Programs Committee. Chair, Marketing and
Programs Committee; member, Governance
and Executive committees
7. Colonel Eileen M. Collins,
USAF (Ret.)
A former military instructor and test pilot,
Collins was the first female pilot and first
female commander of a space shuttle. She
has logged more than 6,700 hours in
30 different types of aircraft and more than
850 hours in space as a veteran of four space
fl ights. She currently serves as chair of
the Space Operations Committee on the
NASA Advisory Council and is a consultant
in the aerospace industry. Collins earned
a bachelor’s degree in mathematics and
economics from Syracuse University, a
master’s degree in operations research from
Stanford University, and a master’s degree
in space systems management from Webster
University. As a member of the USAA board,
Collins has served on the Finance and Audit
Committee and the Marketing and Programs
Committee. Member, Marketing and
Programs Committee; Chair, USAA
Advisory Panel
8. Lt. General Stephen B. Croker,
USAF (Ret.)
Following retirement from active duty,
Croker trained officers and their staffs from
the 26 nations of NATO, as well as all U.S.
military services, in joint warfare. Currently,
Croker assists the local school superintendent and area small businesses with strategic
planning and assessment, and is an apprentice furniture maker. During his Air Force
career, Croker served with the Air Combat
Command and the Strategic Air Command,
and commanded the 8th Air Force at
9.
10.
11.
12.
13.
14.
15.
16.
Barksdale Air Force Base, Louisiana. He
served in the Office of the Chairman of the
Joint Chiefs of Staff and was the military
assistant to the president’s special emissary
on POW and MIA affairs. He was a senior
mentor at U.S. Joint Forces Command,
responsible for developing Joint Task Force
commanders and staffs. For the U.S. Air
Force’s Operational Command Training
Program, he mentored Joint Force Air
Component commanders and senior officers
assigned to air operations centers. Croker
headed NATO’s senior mentor program and
has also mentored with the U.S. Army Battle
Command Training Program, as well as with
officers at Air Mobility Command’s Warfare
Center, Joint Forces Staff College, Air
University and the Marine Corps University.
A U.S. Air Force Academy graduate, Croker
earned a master’s degree in international
relations from Georgetown University and
a master’s degree in business administration
from Golden Gate University. As a member
of the USAA board, Croker served on the
Personnel and Membership Committee and
the Finance and Audit Committee. Member,
Finance and Audit Committee
9. Admiral Thomas B. Fargo,
USN (Ret.)
Fargo, former commander of the U.S. Pacific
Command, joined the private sector in 2005.
He currently serves on the boards of directors
of Northrop Grumman and Hawaiian Electric
Industries, among other companies and
nonprofits. His 35-year Naval career included
six assignments in Washington, D.C., and
five commands in the Pacific, Indian Ocean
and Middle East. He was the 20th officer
to hold the position of Commander, U.S.
Pacific Command, and also served as the
29th Commander in Chief of the U.S. Pacific
Fleet. His service as a leader in the Pacific
was preceded by his command of the U.S.
Fifth Fleet and Naval Forces of the Central
Command during two years of Iraqi contingency operations. As the senior U.S. military
commander in East Asia and the Pacific,
he led the largest unified command while
directing the joint operations of the Army,
Navy, Marine Corps and Air Force. He was
responsible to the Secretary of Defense, and
was the U.S. military representative for
collective defense arrangements in the Pacific.
Fargo earned a bachelor of science degree
from the U.S. Naval Academy and has additional business and related training from
Harvard University and Stanford University.
As a member of the USAA board, Fargo
served on the Finance and Audit Committee,
and as a member and vice chair of the
Compensation and Workforce Committee.
Vice Chair, Compensation and Workforce
Committee; Executive Committee
10. Maj. General Tracy L. Garrett,
USMCR
Garrett is currently commanding general
of the 4th Marine Logistics Group, Marine
Forces Reserve, United States Marine Corps.
During her distinguished career she has
served as commander of both Marine Forces
Europe and Marine Forces Africa and as
Inspector General of the Marine Corps, the
first woman to hold that top post. She has
served on the Secretary of the Navy’s Marine
Corps Reserve Policy Board. Garrett is a
graduate of the Reserve Amphibious Warfare
Course, Reserve Command and Staff Course,
Reserve Intelligence Officers Course and
the Advanced Logistics Officers Course.
She received her bachelor’s degree in English
from the University of Washington and
attended the Naval War College, Newport,
Rhode Island, receiving her master’s degree
in national security and strategic studies.
Member, Marketing and Programs Committee
11. Captain Frederick M. Hamilton,
USCG (Ret.)
Hamilton was a recognized leader in the
telecommunications infrastructure industry
and played a major role in shaping that industry’s new competitive market. He was formerly
a vice president of network construction and
maintenance for Tyco Telecommunications
in Morristown, New Jersey. The company
designed, manufactured and installed, as well
as owned and operated, fiber optic telecommunications submarine cable systems.
Hamilton has more than 30 years’ experience
as an executive, manager and technical
professional. He serves on the board of
Forward Industries. During almost 27 years
of military service, Hamilton held key
command and staff positions in the U.S.
Coast Guard. An honors graduate of the
U.S. Coast Guard Academy, Hamilton holds
a master’s degree in naval architecture and
marine engineering and a master’s degree in
mechanical engineering from Massachusetts
Institute of Technology (MIT). He also earned
a master’s degree in management from the
MIT Sloan School of Management. As a
member of the USAA board, Hamilton has
at various times served on the Personnel and
Membership Committee and the Finance
and Audit Committee. Member, Finance and
Audit Committee; Vice Chair, USAA
Advisory Panel
12. General Lester L. Lyles,
USAF (Ret.)
Lyles is a director of General Dynamics
Corp., KBR Corp., Dayton Power and Light
and Precision Castparts Corp. He is a
member of the NASA Advisory Council and
the President’s Intelligence Advisory Board.
During his 35-year military career, this
distinguished graduate of the Air Force
ROTC program served as commander of the
Air Force Materiel Command, Vice Chief
of Staff of the U.S. Air Force, director of the
Ballistic Missile Defense Organization and
commander of the Space and Missile Systems
Center. His awards include the Defense
Distinguished Service Medal, Distinguished
Service Medal, Defense Superior Service
Medal and Legion of Merit. Lyles received a
bachelor’s degree in mechanical engineering
from Howard University. He received a
master’s degree in mechanical/nuclear
engineering, as well as an honorary doctor
of laws, from New Mexico State University.
As a member of the USAA board, Lyles served
on the Finance and Audit Committee, as
vice chair of the Marketing and Programs
Committee, as a member of the Compensation
and Workforce Committee, and as vice
chairman of the board. Vice Chairman of the
Board; Vice Chair, Governance and Executive
committees; member, Compensation and
Workforce Committee
13. General Michael E. Ryan,
USAF (Ret.)
Ryan was the 16th Chief of Staff of the
U.S. Air Force, responsible for organizing,
training and equipping a force of more than
700,000 active duty, reserve and civilian
members. He is now the president of the
consulting fi rm Ryan Associates, focused
on national defense. He is chairman of the
boards of CAE USA and SELEX Galileo Inc.
and is a director on several other boards.
During his Air Force career, he flew more
than 150 combat missions and commanded
at all levels, from squadron through major
command. As commander of the 16th Air
Force and Allied Air Forces Southern Europe
in Italy, he directed NATO air combat
operations in Bosnia and Herzegovina, which
directly contributed to the Dayton Peace
Accords. He also served in staff assignments
at the major command level, Headquarters
U.S. Air Force, and the Joint Staff. Before
assuming his position as chief of staff, Ryan
was commander of U.S. Air Forces in Europe
and commander, Allied Air Forces Central
Europe. A graduate of the U.S. Air Force
Academy, Ryan earned a master’s degree
in business administration from Auburn
University and completed the National
Security Program at Harvard University.
As a member of the USAA board, Ryan
has at various times served on the Finance
and Audit Committee, the Personnel and
Membership Committee, the Compensation
and Benefits Committee, and as the vice
chair of the Finance and Audit Committee.
Vice chair, Finance and Audit Committee
14. Rear Admiral Joseph C.
Strasser Sr., USN (Ret.)
Strasser is the former executive director of the
Naval War College Foundation in Newport,
Rhode Island, and currently serves as a
trustee. He is the former dean of Pennsylvania
State University’s Commonwealth College.
Strasser had a long and successful 32-year
career in the U.S. Navy, culminating in his
selection for rear admiral. He commanded
the U.S.S. O’Callahan, Destroyer Squadron
35, Cruiser-Destroyer Group 3 and the
U.S.S. Enterprise Carrier Battle Group.
He also served as executive assistant to the
Chairman of the Joint Chiefs of Staff and as
president of the Naval War College. A U.S.
Naval Academy graduate, Strasser earned
master’s degrees in international relations
and international law and diplomacy and a
doctorate in political science, all from Tufts
University. As a member of the USAA board,
Strasser served as a member of the Personnel
and Membership Committee and has at
various times served on the Finance and
Audit Committee as a member, vice chair
and chair. Chair, Finance and Audit
Committee; member, Governance and
Executive committees
15. Lt. General Daniel W.
Christman, USA (Ret.)
Retired 2010.
Christman served as the senior vice president,
international affairs, for the U.S. Chamber of
Commerce and is currently a senior counselor
to the Chamber’s president and CEO. He is
on the board of Entegris Corp, Teradyne Inc.,
and several nonprofits. During his 36-year
military career, Christman served as assistant
to the Chairman of the Joint Chiefs of Staff,
U.S. representative to the North Atlantic
Treaty Organization’s Military Committee
and member of the National Security Council
staff in the Office of the President. As a combat
veteran of Southeast Asia, he commanded
a company of the 101st Airborne Division.
During the Gulf War in 1991, Christman
headed a strategic planning group that advised
the Army’s Chief of Staff on war prosecution
policies. He also served as Superintendent
of the U.S. Military Academy at West Point.
During his stewardship, Christman
launched the first-ever capital campaign for
West Point — a $150 million initiative that
was key to rebuilding the infrastructure and
leadership development programs. He graduated first in his class from the U.S. Military
Academy, and holds master’s degrees in public
affairs and civil engineering from Princeton
University and a juris doctorate degree from
George Washington University. During his
tenure as a USAA director, Christman served
as a member of the Marketing and Programs
committee and as vice chair of the Finance
and Audit and the Personnel and Membership
committees. His leadership and experience
have directly contributed to the success
of USAA.
16. Colonel Leslie G. Denend,
USAF (Ret.)
Retired 2010.
A director of Exponent Corp., McAfee Inc.
and VeriFone Corporation, Denend is the
former president and chief executive officer
of Network General Corporation. During
his 20-year Air Force career, he served on
President Reagan’s economic policy staff,
and flew more than 190 combat missions in
Southeast Asia. Denend had responsibilities
for the defense budget, space, the Middle
East and intelligence matters for the
Chairman of the Joint Chiefs of Staff as the
Air Force member of the Chairman’s Staff
Group. In the Carter administration,
Denend shared responsibility for nuclear
nonproliferation policy, human rights and
refugee matters, and the issues associated
with conventional arms transfers as a
member of the National Security Council
staff. In 1979, he became the special assistant
to the President’s National Security Advisor.
In the Ford administration, Denend received
a White House Fellowship, serving as executive assistant to the director of the Council
on International Economic Policy. A distinguished graduate of the U.S. Air Force
Academy, he holds a master’s degree in
business administration and a doctorate in
economics, public policy and business from
Stanford University. He was a Fulbright
scholar in economics at the University of
Bonn. During his tenure as a USAA director,
Denend served as chair of the Finance and
Audit Committee and vice chairman of the
Board of Directors. He also served on the
Personnel and Membership and Marketing
and Programs committees. Throughout his
tenure Denend demonstrated excellent leadership during a period of great change and
growth for USAA.
19
OUR 2010 EXECUTIVE COUNCIL
The day-to-day operations of USAA’s companies and staff agencies are managed
by USAA’s Executive Council.
(LEFT TO RIGHT, TOP TO BOTTOM)
Josue Robles Jr.
Steven Bennett
Kevin Bergner
David Bohne
Christopher Claus
Elizabeth Conklyn
President and
Chief Executive Officer
Executive Vice President,
General Counsel and
Corporate Secretary
Chief Administrative Officer
President, USAA Federal
Savings Bank
President, USAA Financial
Advice & Solutions Group
Special Projects
Shon Manasco
Kristi Matus
Stuart Parker
Wayne Peacock
Stephen Speakes
Wendi Strong
People Services
Chief Financial Officer
President,
USAA Property & Casualty
Insurance Group
Member Experience
Enterprise Strategy &
Planning Group
Corporate Communications
OUR 2010 ADVISORY PANEL
USAA’s Advisory Panel includes members of all ages from all walks of life.
Panel members provide candid and valuable feedback about USAA’s products,
services, marketing campaigns and delivery methods.
(LEFT TO RIGHT, TOP TO BOTTOM)
Eileen Collins
Fred Hamilton
Deborah Binder
Christina Brims
Joey DuPuis
Paul Grady
Chair, USAA Advisory Panel
Col., USAF (Ret.)
San Antonio, Texas
Member since 1978
Vice Chair,
USAA Advisory Panel
Capt., USCG (Ret.)
Lewisberry, Pa.
Member since 1965
Daughter of an Army officer
Edmonds, Wash.
Member since 1984
Widow of an Air Force officer
Colorado Springs, Colo.
Member since 1970
Chief Master Sgt.,
USAFR (Ret.)
San Antonio, Texas
Member since 1998
Chief Master Sgt.,
USAF
Schertz, Texas
Member since 1998
Nicole Hart
April Holmes
Ed Kringer
Jeff Shumate
Cynthia Obenland
Martin Wells
Widow of an Army sergeant
Santa Barbara, Calif.
Member since 2006
Daughter of a Navy officer
Lakeway, Texas
Member since 1984
Col., USAF (Ret.)
Burke, Va.
Member since 1974
Command Master Chief,
USCG
Key West, Fla.
Member since 2000
Daughter of an
Air Force officer
Annapolis, Md.
Member since 1988
Sgt. Maj., USA (Ret.)
Fort Jackson, S.C.
Member since 1982
Malcolm Wilkerson
Amy Vigeant
Capt., USA
Colorado Springs, Colo.
Member since 2000
Lt., USNR (Separated)
Coronado, Calif.
Member since 1993
22
HELP USAA GO GREEN
This report is environmentally friendly (thanks to recycled paper and
soy-based inks) and cost-effective because of the easy-to-manufacture
and easy-to-mail tabloid format. In addition, in 2011 we have begun
printing all USAA marketing materials on paper containing a minimum
of 10% post-consumer recycled fiber. But if you’d like to help USAA
go green, join the more than 500,000 members who have opted out of
receiving a printed report and instead receive it electronically.
TO DO SO, LOG ON TO USAA.COM
AND GO TO
“My Documents,” then select “Preferences.”
Scroll down to “General Documents” and select
“Annual Report to Members” to receive this report
electronically. You can also choose “Deliver all
online” to receive all of your USAA documents
electronically.
ADDITIONAL INFORMATION
USAA Headquarters
USAA
9800 Fredericksburg Rd.
San Antonio, TX 78288
(800) 531-8646
(annual report inquiries only)
Independent Public
Accountants
Ernst & Young LLP
San Antonio, Texas
USAA is not a publicly held
company and does not file
an SEC form 10-K.
Annual Meeting of
USAA Members
Saturday, November 19, 2011
9 a.m. (Central Standard Time)
Four Seasons Resort and Club,
Dallas at Las Colinas
4150 N. MacArthur Blvd.
Irving, TX 75038
The USAA Educational
Foundation
USAA
9800 Fredericksburg Rd.
San Antonio, TX 78288
www.usaaedfoundation.org
INFORMATION ON USAA
What does USAA mean? USAA means United Services Automobile Association and
its family of other companies that provide insurance, banking and investment
products. Who is a USAA member? The term “member” generally refers to current
USAA customers who are eligible for property and casualty insurance, and their
spouses and children who are current USAA customers. Use of the term “member”
does not convey any eligibility rights for auto and property insurance products,
or legal or ownership rights to USAA. Who is eligible for USAA auto and property
insurance products? These products are available to current and former military
members and their former dependents who meet certain membership eligibility
criteria. Membership eligibility is subject to change. Adult children of USAA
members are eligible to purchase USAA property and casualty insurance if their
eligible parent purchased USAA property and casualty insurance. Eligible members
with auto and property policies issued by United Services Automobile Association
have ownership rights in USAA. Ownership rights, including Subscriber’s Accounts,
do not apply to policies issued by other insurers within the USAA family of companies
or to business assigned/accepted because of state insurance plans. Refer to your
insurance policy to determine which company you are insured with. Contact us to
find out about the benefits of your membership.
OTHER
Investments/Insurance: Not FDIC Insured • Not Bank Issued, Guaranteed
or Underwritten • May Lose Value
Printing: Nahan
Design: VSA Partners Inc.
Principal Photography: Ben Baker
REGULATORY DISCLOSURES
“USAA” and “association” mean United Services Automobile Association and its
affiliates. Property and casualty insurance provided by United Services Automobile
Association, USAA Casualty Insurance Company, USAA General Indemnity Company,
Garrison Property and Casualty Insurance Company, USAA County Mutual Insurance
Company, USAA Texas Lloyds Company, San Antonio, TX, and is available only to
persons eligible for P&C group membership. To find out if you are eligible, contact
USAA. Underwriting restrictions apply. Investments provided by USAA Investment
Management Company and USAA Financial Advisors Inc., both registered broker
dealers. USAA Brokerage Services is a division of USAA Financial Advisors Inc., a
registered broker dealer. Financial planning services and financial advice provided
by USAA Financial Planning Services Insurance Agency, Inc. USAA Financial
Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance
Company in California, Lic. #0E36312), a registered investment adviser and insurance agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer. USAA Wealth Management is a service of USAA. Life insurance
and annuities provided by USAA Life Insurance Company, San Antonio, TX and in
New York by USAA Life Insurance Company of New York, Highland Falls, NY. Managed
Accounts is a service of USAA Investment Management Company (USAA), a registered
investment adviser and broker dealer. USAA Brokerage Services is a division of
USAA Financial Advisors, Inc., a registered broker dealer. USAA Wealth Management
is a service of USAA. USAA Strategic Fund Adviser® and USAA Global Opportunities
Portfolio is a service of and USAA Private Investment Management® is a division of
USAA Investment Management Company, a registered investment adviser and
broker dealer. USAA Life General Agency, Inc. (LGA) (known in CA and NY as USAA
Health and Life Insurance Agency) acts as an agent for select insurance companies
to provide additional products to USAA members. LGA representatives are salaried
and receive no commissions. Trust Services offered by USAA Federal Savings Bank.
Credit Cards provided by USAA Savings Bank, other bank products by USAA Federal
Savings Bank, both Member FDIC.
Each company has sole financial responsibility for its own products.
©2011 USAA. All rights reserved.
The content is not affiliated with or endorsed, implied or otherwise, by the
United States Department of Defense or any government agency.
USAA and other names, logos, designs, titles, words or phrases in this publication
may constitute trademarks, service marks, or trade names of USAA or other
entities and may be registered in certain jurisdictions. Use of any such other
names, logos, designs, titles, words or phrases does not imply affiliation,
endorsement, or approval.
PAGE 1: Auto Circle ™ is a program provided by United Services Automobile
Association. Availability, eligibility restrictions, and fees may apply to certain
banking, insurance or ancillary products. USAA Car Buying Service and Lowest
Price Guarantee provided and operated by TrueCar, Inc. on behalf of USAA. Each
company has sole liability for its own products. USAA does not broker, sell, or
lease motor vehicles.
To get the Lowest Price Guarantee, you must choose a dealer with a Lowest Price
Guarantee icon. If you see a lower advertised price up to three days after you buy,
you’ll be covered. Applies to new vehicles purchased directly from a Low Price
Certified Dealer or any USAA Certified Dealer on the USAA Car Buying Service. Visit
usaa.com for complete guarantee terms and conditions. Guarantee is not available
in Texas.
PAGE 2: Investing in securities products involves risk, including possible
loss of principal.
There may be tax consequences associated with the transfer of assets. Indirect
transfers may be subject to taxation and penalties. Consult with your own advisors
regarding your particular situation.
PAGE 3: You must qualify for USAA’s Deposit@Home ® and Deposit@Mobile ®;
eligibility for USAA property and casualty insurance and credit qualification required.
PAGE 7: A++ (Superior) from A.M. Best Co., highest of 16 possible ratings;
Aaa (Exceptional) from Moody’s Investors Service, highest of 21 possible ratings;
AAA (Extremely Strong) from Standard & Poor’s, highest of 21 possible ratings.
PAGE 8: There is no guarantee or promise of future Subscriber’s Account
allocations or distributions, auto insurance dividends, bank rebates or rewards.
PAGE 9: As USAA is an insurance provider open only to U.S. military personnel and
their families, it is not included in J.D. Power and Associates rankings.
PAGE 10: Average auto insurance premiums/savings based on countrywide
survey of new customers from 10/1/09 through 9/30/10, who reported
their prior insurers’ premiums when they switched to USAA. Savings do not
apply in MA.
USAA does not charge a fee for the first 10 ATM withdrawals and refunds up to
$15 in other banks’ ATM usage fees each month.
A 1% foreign transaction fee applies to withdrawals outside the U.S.
PAGE 11: 1 USAA does not charge a fee for the first 10 ATM withdrawals and refunds up
to $15 in other banks’ ATM usage fees each month. A 1% foreign transaction fee
applies to withdrawals outside the U.S.
2
USAA Money Manager is not an investment advisory service of USAA.
3
To receive the special active-duty credit card benefits, you must tell us when
you enter active duty, start a deployment/PCS, or complete service in a qualified
military campaign. SCRA benefits will begin upon our receipt of notice of your
active duty and will apply only to balances made before commencement of active
duty. For other benefits, we must receive notice within 90 days after the start of
deployment or PCS, or within six months after completion of a military campaign.
We reserve the right to require documentation. A qualified military campaign is any
war or military conflict in which the President of the United States of America
issues an Executive Order establishing a campaign medal.
4
There is no guarantee or promise of future bank rebates or rewards.
5
MSRP savings based on the monthly average of actual new vehicle member prices
compared to MSRP for the time period 06/01/2010 to 11/30/2010. The savings calculation does not include the savings from the USAA exclusive manufacturer incentives.
6
MoversAdvantage® offered by USAA Relocation Services, Inc., a licensed real
estate broker and subsidiary of USAA Federal Savings Bank. Not available for
employer-sponsored relocations, or for transactions in Iowa or outside the U.S.
This is not a solicitation if you are already represented by a real estate broker.
Cash bonus limited in some states. Bonus ranges from $350-$1,550 based on sale
price of home sold/purchased. You must enroll in program before contacting
participating real estate firm and be represented by that firm at closing to qualify
for bonus.
Obtaining a mortgage from USAA Federal Savings Bank is optional, not
required to utilize the MoversAdvantage® Program, and can be acquired
from other sources.
7
Easy Deposit Service is offered only for single-party, personal checks. Cash,
cashier’s checks, money orders, foreign checks, savings bonds, business checks,
traveler’s checks, and multiple party checks are not eligible for Easy Deposit. High
dollar deposits may not be available for immediate withdrawal.
Restrictions, fees and costs apply to certain Auto Circle and Home Circle™ products.
Third parties are solely responsible for their performance. Visit usaa.com for
complete terms and conditions.
PAGE 15: Highline Banking Data Services
Top 15 percent of peer group as of 3rd quarter 2010.
IDC Financial Publishing, Inc.
105 consecutive Superior ratings as of 3rd quarter 2010.
PAGE 17: The USAA Foundation and The USAA Educational Foundation (the
“Foundations”) are nonprofit organizations sponsored by USAA. The Foundations
do not endorse or promote any commercial supplier, product or service.
Volunteer value to the community calculated using most recent data from
Independent Sector, a leadership forum for charities, foundations and corporate
giving programs.
21
THANK YOU
We are honored to serve active-duty military members,
veterans who have honorably served and their families through
every stage of their lives. USAA invites you to take advantage
of these exclusive online offers on some of our most innovative
products and services.
Get an
Apple iPad
®
®
WHEN YOU CLOSE ON THE
SALE OF YOUR HOME WITH
MOVERSADVANTAGE,® A PART
OF USAA’S HOME CIRCLE.™
for your membership
and loyalty in 2010.
Hurry, these exclusive online offers end
June 20, 2011. Take advantage of them today.
Log on to usaa.com and search
keyword: ThankYou2010
100
$
50
$
BONUS
BONUS
when you
start using
USAA WEB
BILLPAY®
and make five
payments.
when you open a new USAA
Checking Account with Direct
Deposit and debit card use.
250
CREDIT
$
with a new
Get an
additional
0.25 %
on top of our best 2- or 3-year CD
rates with a new USAA Bank CD.
Investments/Insurance: Not FDIC Insured • Not Bank Issued, Guaranteed or
Underwritten • May Lose Value
USAA means United Services Automobile Association and its insurance, banking,
investment and other companies. Banks Member FDIC. Investments provided by USAA
Investment Management Company and USAA Financial Advisors Inc., both registered
broker dealers. USAA Brokerage Services is a division of USAA Financial Advisors,
Inc., a registered broker dealer. USAA Strategic Fund Adviser® and USAA Global
Opportunities Portfolio is a service of and USAA Private Investment Management®
is a division of USAA Investment Management Company, a registered investment
adviser and broker dealer. Bank products by USAA Federal Savings Bank, Member FDIC.
You must be eligible for USAA property and casualty insurance to qualify for these
offers except the USAA Strategic Fund Adviser® (SFA) and USAA Global Opportunities
Portfolio (GOP) $250 Credit offer. Offers are good from March 21, 2011, through June 20,
2011 (the “Offer Period”). To access and accept offer, you must obtain products through
the USAA Thank You page at www.usaa.com/thankyou2010. Not all offers may be
presented to all members based on products member currently has with USAA. Purchase
of a non property and casualty insurance product does not establish eligibility for, or
membership in, USAA property and casualty insurance companies. For additional terms,
restrictions and legal information, go to www.usaa.com/thankyou2010. Receipt of
offers may constitute a taxable event. Valid for U.S. citizens or permanent residents.
Offers void where prohibited by law and may be modified or terminated without notice.
Checking/Direct Deposit Offer: When you open a new USAA Checking Account
with Direct Deposit and debit card use. Available only during the Offer Period.
Offer good for new USAA Free Checking accounts only. A minimum $25 opening
deposit is required. The Annual Percentage Yield as of February 15, 2011, on balances
of $1,000 or more is 0.05% and may change daily. To be eligible for offer, you cannot
have an existing USAA checking account prior to March 21, 2011. Access and accept
offer at www.usaa.com/thankyou2010. To receive the $100 bonus, you must: 1) open a
new USAA free checking account; and 2) enroll in direct deposit with USAA Bank; and
3) make three USAA debit card transactions each month from account open date by
September 20, 2011. Account holder must meet requirements by September 20, 2011,
to be eligible for the bonus. Limit one $100 payment per household during the Offer
Period. Checking accounts open prior to and after Offer Period are not eligible for
the bonus. The $100 bonus will be deposited into the account no later than September
30, 2011. No other forms of distribution of the bonus will be allowed. Receipt of this
Copyright ©2011 USAA. All rights reserved.
offer may constitute a taxable event. Additional restrictions and conditions may
apply. Valid for U.S. citizens or permanent residents. Void where prohibited. Offer
may be modified or terminated without notice.
CD Offer: Limited time offer. Minimum initial deposit and minimum balance is
$1,000 for Standard CD, $95,000 for Jumbo CD and $175,000 for Super Jumbo CD
through USAA Bank. Penalty for early withdrawal may reduce earnings. To be
eligible for bonus rate, account holder must open a new 2- or 3-year CD through
USAA Bank during the Offer Period. Bank CDs purchased prior to or after the Offer
Period will not be eligible for bonus rate. Offer not valid on IRA CDs. Access and
accept offer at www.usaa.com/thankyou2010.
Web BillPay Offer: Available only during Offer Period. Offer good only for existing
USAA Free Checking accounts for account holders who have not used Web BillPay
within 120 days prior to March 21, 2011. To receive $50, account holder must start
using USAA Web BillPay during the Offer Period and make five or more payments
to non-USAA payees within the Offer Period, with payment processing no later than
July 20, 2011. To be eligible for the bonus, you must access, accept offer, and obtain
products through the USAA Thank You page at www.usaa.com/thankyou2010. Web
BillPay transactions made before or after Offer Period are not eligible for $50 bonus.
Limit one $50 payment per household, during the Offer Period. Checking account must
remain open and the $50 bonus will be deposited no later than July 30, 2011. Receipt
of this offer may constitute a taxable event. Additional restrictions and conditions
may apply. Valid for U.S. citizens or permanent residents. Void where prohibited.
Offer may be modified or terminated without notice.
Strategic Fund Adviser/Global Opportunities Portfolio Offer: Offer good for
a new USAA Strategic Fund Adviser® (SFA) or USAA Global Opportunities Portfolio
(GOP) account opened during the Offer Period with a minimum Market Value initial
deposit of $50,000 and must be funded within 75 days of account open date. To access
and accept offer, you must obtain products through the USAA Thank You page at
www.usaa.com/thankyou2010. To qualify for the $250 fee credit, account must remain
open and funded above the initial deposit amount (excluding market fluctuation) until
December 20, 2011. Account will be credited the week of December 20, 2011. Any account
closing before December 20, 2011, will forfeit the credit. The credit will be deposited
to account for fees assessed and should not be considered a contribution. Accounts
open prior to or after the Offer Period are not eligible to receive credit. No other
forms of distribution of the $250 will be allowed.
STRATEGIC FUND ADVISER®
- or GLOBAL OPPORTUNITIES
PORTFOLIO ACCOUNT.
Investing in securities products involves risk, including possible loss
of principal.
An investor will indirectly bear fees and expenses charged by the underlying funds
in addition to direct fees and expenses charged by the portfolio as applicable.
iPad/MoversAdvantage Offer: Limited time offer. Offer excluded for members selling
property located in any of the eleven excluded states due to state laws. The excluded
states are as follows: Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, North
Carolina, New Jersey, Oklahoma, Oregon, and Tennessee. You must: 1) be a U.S. citizen
or permanent resident; 2) enroll in the MoversAdvantage ® “selling” service during
the Offer Period through the USAA Thank You page at www.usaa.com/thankyou2010;
and 3) complete the closing on the sale of your home through the MoversAdvantage
“selling” service, on or by December 31, 2011. LIMIT ONE iPad per household during
Offer Period. Additional property sales during the Offer Period are not eligible for
this Offer. Registration for the MoversAdvantage “selling” service prior to or after
Offer Period is not eligible for this Offer. Registration for the MoversAdvantage “buying”
service is not eligible for this Offer. Within four to six weeks after you fulfill all Offer
Terms and confirmation of the sale by USAA Relocation Services, Inc., USAA Relocation
Services, Inc. will send you a 16GB iPad with Wi-Fi + 3G, with a value not to exceed $650.
MoversAdvantage® offered by USAA Relocation Services, Inc., a licensed real estate
broker and subsidiary of USAA Federal Savings Bank. Not available for employersponsored relocations, or for transactions in Iowa or outside the U.S. This is not a
solicitation if you are already represented by a real estate broker.
Obtaining a mortgage from USAA Bank is optional, not required to utilize the
MoversAdvantage® Program, and can be acquired from other sources.
Subject to credit and property approval. Availability restrictions apply. Credit cards
provided by USAA Savings Bank, other bank products by USAA Federal Savings Bank,
Member FDIC.
iPad is a registered trademark of Apple Inc. This Offer is by USAA and is not
affiliated with Apple, Inc. See details at www.usaa.com/thankyou2010.
124786-0311

USAA 2010 Report to Members

Transcription

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