USAA has released its 2023 annual report to members, detailing robust financial performance, membership growth, and the introduction of new products and services.
The military insurer reported a net income of $1.2 billion and increased its net worth by $1.7 billion, or 6% year over year, ending the year at $29.1 billion. Additionally, revenues rose by 17% in 2023 to $42.5 billion, driven by strong product revenue performance across all three lines of business.
In 2023, USAA paid $23.9 billion in claims, including more than 350,000 catastrophe-related claims. The company also returned nearly $1.9 billion in distributions, dividends, and bank rebates and rewards. Additionally, USAA increased the borrowing amount for a mortgage through the Veterans Affairs jumbo loan with no down payment and no origination fee.
The company also expanded its credit card offerings with the introduction of the Eagle Navigator Visa Signature credit card and Cashback Rewards Plus American Express credit card. It also added a fixed indexed annuity with more growth potential than a traditional fixed annuity and connected members to one of the largest surcharge-free ATM networks in the country, with over 100,000 ATMs.
“Prudent financial management in 2023 enhanced USAA's ability to serve members and effectively plan for the near- and long-term strength of the association,” USAA chief financial officer Jeff Wallace said. “Despite new and ongoing headwinds, we maintained strong capital and liquidity levels, managed expenses to operate more efficiently, and returned money to our members.”
Beyond its financial services, USAA highlighted its continued support for the military community and their families through philanthropic and advocacy efforts focused on military family resiliency and local community support.
USAA, its employees, and The USAA Foundation, Inc provided more than $54 million in philanthropic contributions and ranked in the top quartile for employee volunteerism in corporate America.
Additionally, USAA, in collaboration with the Humana Foundation and Reach Resilience, launched Face the Fight, a campaign aimed at raising awareness of veteran suicide prevention and reducing the veteran suicide rate.
“Many of the economic challenges from 2022 continued into 2023, reinforcing the importance of our mission to take great care of military families,” CEO and president Wayne Peacock said. “We continue to focus on serving our 13.5 million members well every day, which means building long-term financial strength, investing in new technology, and launching new products and services – ensuring we are able to deliver on our mission for generations to come.”
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