USAA’s Annual Meeting of the Members

Video Duration: 20 minutes, 14 seconds

Welcome: Elapsed time 0 seconds [0:00]

Admiral Jim Zortman:

Good morning. I'm Admiral Jim Zortman, Chairman of the USAA Board of Directors, and I want to welcome you to this 103rd annual meeting of the members of the United Services Automobile Association.

The meeting will now come to order. I would like to introduce the members of our board of directors.

Myself, Chairman Jim Zortman, Vice Chairman David Melcher, Ross Buchmueller, Brad Conner, David Darnell, Mary Landry, Darren McDew, Tracy McKibben, William Moran, Jr., Gerald Murray, and Dona Young.

Notably there are 4 additional directors retiring this year. A special congratulations to each of our retiring directors. Herman Bulls, vice chairman of the board, retiring after 15 years of service on the board. Robert VanAntwerp retiring after 13 years of service. Tracy Garrett retiring after 15 years of service, and John Young retiring after 14 years of service. Thank you for your dedicated service and valuable contributions.

Your efforts have truly helped shape our Association's bright future. You will find a copy of the proxy notice with the director's biographies in the resource section of your screen. Also in attendance is our CEO Juan C. Andrade, representatives of the accounting firm Ernst & Young and our corporate secretary Tom Eck.

The meeting will follow the agenda and the rules of conduct as provided in your resource section on your screen.

There will be a general question and answer session following the members' meeting. You may submit your questions during the meeting on matters of general interest to the membership by using the Q&A option at the bottom of your screen.

The secretary has delivered an affidavit of mailing establishing that notice of this meeting was duly given.

A copy of the notice of meeting and the affidavit of mailing will be incorporated into the minutes of this meeting.

All members of record at the close of business on June 27, 2025 are entitled to vote at the annual meeting.

Our first order of business is to determine whether the members represented at this meeting, either in person or by proxy are sufficient to constitute a quorum for the purpose of transacting business.

Mr. Eck, do you have a report?

Tom Eck:

Yes, Admiral Zortman, the members represented in person or by proxy constitute more than 1% of the members entitled to vote at this meeting.

Election of directors: Elapsed time 2 minutes 41 seconds [2:41]

Admiral Jim Zortman:

Thank you, Tom. Because the percentage of members represented in person or proxy exceeds the minimum required by the bylaws, I declare this meeting to be duly convened for purposes of transacting such business as may properly come before it. The next order of business is the election of directors to serve until the next annual meeting of members and until their successors are duly elected and qualified.

The number of directors to serve on the board of directors for the next year has been set by the board at 12, including the three ex officio positions filled by Juan Andrade as the CEO, Brad Conner, the executive chairman of the board of the USAA Federal Savings Bank, and David Darnell, the lead independent director of the USAA Federal Savings Bank.

The board of directors has proposed 9 nominees for election to the board, each for a term of 1 year.

The nominees are as follows myself, Chairman Jim Zortman, David Melcher, Ross Buchmueller, Mary Landry, Darren McDew, Tracy McKibben, William Moran, Jr., Gerald Murray, and Dona Young.

We will allow 2 minutes for the votes to be cast. Also at this time, the proxy committee will cast its votes. If you have already voted by submitting a proxy, you do not need to vote again.

If you wish to change your vote, please do so at this time by selecting for or withhold for each nominee and confirm your vote by clicking the blue submit button.

The polls are now open for the election of directors.

The polls are now closed and the votes will be tallied and recorded. Will the secretary please report the results of the voting?

Tom Eck:

Thank you, Admiral Zortman. The ballots cast by the proxy committee and by members today have been counted, and each nominee has received at least 91% of votes in favor. Therefore, all 9 nominees for election to the board of directors have been duly elected. This concludes my report as corporate secretary. I will now hand it back to you, Admiral Zortman.

Annual report to members: Elapsed time 6 minutes 50 seconds [6:50]

Admiral Jim Zortman:

Thank you, Tom. Congratulations to our returning board members.

We will now move to the next order of business, the Annual Report to Members. Our annual report to members was sent to all members electronically. This is a review of the business activities and financial position of USAA and its subsidiaries through December 31, 2024.

The Annual Report to Members is also available in the resource section on your screen.

I've been a USAA member for more than 50 years. Over that time, I've seen this Association evolve in many ways, but through every change one thing has remained constant, and that's USAA's dedication to its members and the military community.

As chairman, I'm committed to uphold that legacy ensuring USAA delivers on its commitments and maintains the financial strength needed to serve today's members and those of future generations.

USAA had strong results in 2024. This allowed the Association to return more than $2 billion to members like you.

But it wasn't without challenges. The company overcame new and persistent headwinds, including historic natural catastrophes, economic uncertainty, and rising cost, and an increase in industry-wide fraud.

The management was proactive and disciplined, and those efforts enabled USAA to remain financially strong and continue serving members.

Looking ahead, USAA will continue its focus on improving service and enhancing the value of your membership and operating efficiently to keep costs down.

Last year, USAA members voted to extend ownership and voting rights to all eligible military members, including those in all enlisted ranks from E1 to E6.

That decision marked a historic moment for the Association by bringing together all military members into one core membership. It enables everyone who wore the uniform to share in USAA's success and have a say in its future regardless of rank, united by having honorably served. As a Navy veteran with 34 years in uniform, I appreciate how USAA continues to evolve, but I also see the opportunities it has to serve members better.

Today under the leadership of CEO Juan C. Andrade, the Association is prioritizing exceptional member service and value of membership that go well beyond products, focusing on you, the members who rely on USAA to serve you well when you need it most. It is my honor to introduce Juan now to share more about the work USAA is doing to raise the bar in service to the members.

CEO comments: Elapsed time 9 minutes 46 seconds [9:46]

Juan C. Andrade:

Thank you, Admiral Zortman for your partnership, your service to our nation, and to our Association.

Fellow members, thank you for joining. When I think about what it means to be a USAA member, I think about the moments when trust and service matter most.

In January as the wildfires tore through Southern California, Lieutenant Commander Ken Peterson and his wife, Kristina, sat glued to the TV while on family vacation.

The community they had called home for 33 years was going up in flames. Their home was a total loss, but they knew USAA had their back. We settled their claim and issued payment in just 4 days. And our adjuster Josh Verner was with the Petersons every step of the way.

Ken later told me, “I felt lost, but your team never made me feel alone.” That care that commitment is the true value of USAA membership.

We are often the first on the ground. We stay engaged with members and we use technology to serve with speed and precision. Because when the unthinkable happens, service matters and so does knowing someone will be there.

Service matters in the everyday moments too. And I know we have more to do to deliver that level of service every time.

You have told us what you want from your USAA membership: exceptional service first and foremost, value for your money and a sense of community.

On my first day, I made it our top priority to be relentlessly focused on improving and delivering exceptional service while continuously enhancing the value of your membership.

We are improving our service capabilities to make it easier to do business with us whether you reach us by phone in the app or online.

Claims is a good example of this, as you heard in Ken's story, a single adjuster now handles your claim from start to finish. And thanks to new technology, we are moving faster.

The average time to pay a catastrophe claim is now 7 days down from 14 and in the case of the fires we survey damage remotely and proactively reached out to impacted members even before they knew the extent of the damage to their homes.

Several other service improvements are underway and we're using your feedback to guide our work. I will keep you updated on our progress through emails.

We're also providing greater value for your membership. One part of that value is your ability to share in the Association's success.

As Admiral Zortman mentioned, we returned $2.2 billion to members in 2024.

On top of that, USAA Perks has saved members over a billion dollars on everyday products and services in the past 5 years. But perhaps the greatest value of membership is knowing USAA has your back in the moments that matter.

When a government shutdown threatens pay for the military community, we step up. We offer interest free loans to cover members missed paychecks as well as payment relief options to help when needed.

We're on fraud watch 24/7 and our team send real-time messages during critical moments like when you're about to authorize a bank wire transfer to help avoid costly mistakes.

And when the worst happens, our survivor relations team walks alongside families who have lost a loved one - offering compassion, personalized support and real time guidance to help you navigate one of life's most difficult moments.

But we know value includes what you pay in insurance - and many of you have seen rate increases in recent years.

There are 3 primary factors driving higher premiums for the entire insurance industry: more frequent and more severe catastrophes, inflation, and increased litigation.

The number of catastrophe events has increased significantly since 2017, and it hasn't stopped. The industry's losses have tripled in the last decade, from $50 billion to more than $150 billion per year.

With that, inflation is making it more expensive to repair and replace cars and homes when damage does occur. And lastly, increased litigation is driving up claims costs.

Even with these rising costs, we are working hard to keep your premiums as affordable as possible.

In 2024, auto insurance rates went up an average of 7.5% across the industry - but at USAA the increase was 3.6%.

For homeowners insurance, the industry average increase was 15.9%, while ours was 4.1%.

In fact, in some areas of our homeowner's business, we are not consistently profitable, but we are continuing to serve because that is our mission.

One way we're keeping costs down is by helping you avoid losses altogether. We are proactively reaching out to our members with tailored advice, real-time alerts, and tools to reduce your risk and save you money.

Take our SafePilot programs which reward safe driving behavior and provide members with transparency and control over their premiums. Or the Connected Home system that notifies you of leaks before they become floods.

Members who use these water detection tools are seeing a significant reduction in claims.

There's a similar device to detect electrical fire hazards. It's called Ting. A USAA member with an older home recently installed a Ting device and discovered a constant electrical surge coming from a city owned service line outside the house.

The data helped the city fix the problem which had gone undetected for years. The member told us the device may have prevented a serious incident. And they were grateful to have had an early warning.

As a result of our proactive outreach, members have added one of these tools to their policies more than 440,000 times.

But with 14 million members, our work is just getting started.

We will keep sharing opportunities for you to reduce your risk and save money through prevention.

Because the best claim is the one that never happens.

We're also using our voice with lawmakers to address systemic challenges in the insurance industry. This includes advocating for reform that will decrease unnecessary litigation and help insurers set rates more accurately, while also making coverage more available and affordable for consumers. But our advocacy efforts go well beyond working for change in the industry.

They include advocating for the issues and causes that impact the entire military community.

We are focusing on 3 areas where we can do the most good.

First, helping veterans and military spouses build meaningful careers. We are improving our hiring and retention programs to be the pacesetter in corporate America.

Through our partnership with Hiring Our Heroes, we support fellowship programs that help transitioning service members and military spouses find jobs that match their skill sets, gain corporate experience, and build their networks.

In the past year, more than 80% of Hiring Our Heroes program participants have secured employment.

A meaningful career is the foundation for our second focus area, financial security - and we are committed to helping the military community build both.

This year alone, our USAA Educational Foundation will reach more than 3 million military connected people with advice on the basics of financial security, from how to make a budget to assessing their current financial health and building a plan.

Lastly, we're advancing overall well-being including physical, financial, and mental health. We have empowered more than 5 million military caregivers through our partnership with the Elizabeth Dole Foundation.

Provided affordable child and after school care at nearly 100 military installations and given more than $1 million over the last 2 years to Feeding America to combat food insecurity for currently serving families.

And through Face the Fight, our veteran suicide prevention initiative, we are expanding access to mental health support across the military community.

With our partners, we are on track to save more than 6,500 lives by 2032. This is meaningful work and something I am proud of our Association for championing.

For more than a century, USAA has stood shoulder to shoulder with those who serve. That legacy is a source of strength, but it's not a finish line.

I will continue listening to your feedback and we will keep improving. I welcome your suggestions. You can reach me at Juan@usaa.com.

While we have much to be proud of, we know we must continue raising the bar.

Because we exist to deliver the service you have earned when disaster strikes when you're navigating everyday life, and when your family's future depends on us getting it right.

Thank you, thank you for your service to this country and for being a part of our mission.

Admiral Jim Zortman:

Thank you, Juan. Ladies and gentlemen, this concludes the formal business portion of our meeting. The 2025 USAA Annual Members’ Meeting is now adjourned.

End: Elapsed time 20 minutes 14 seconds [20:14]