USAA is not owned by shareholders or any outside corporation. It is a member-owned association, meaning its policyholders and customers are effectively its collective owners.
USAA is owned by its members, a structure unique among major US financial institutions. It is a reciprocal inter-insurance exchange headquartered in San Antonio, Texas, founded in 1922 by 25 Army officers who agreed to insure each other’s vehicles. Juan C. Andrade serves as President and CEO, succeeding Wayne Peacock in 2025. USAA returned a record In 2025 USAA returned a record $3.8 billion to its approximately 14 million members in 2025.
USAA stands for United Services Automobile Association. It serves current and former members of the US military and their eligible family members with banking, insurance, investing, and retirement products. As a member-owned exchange, there are no shares to buy, no stock price to track, and no outside investors to satisfy.
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Who Actually Owns USAA?
USAA operates as a reciprocal inter-insurance exchange, a legal structure that makes its policyholders the owners. This is fundamentally different from a publicly traded company, a private equity-owned firm, or even a mutual insurance company.
In a reciprocal exchange, members exchange risk with each other through an attorney-in-fact. At USAA, members are both the insured and collectively the insurer. Profits generated by the association are either reinvested into services and technology or returned directly to members through distributions, dividends, and bank rebates.
A board of directors oversees the organization and answers to the membership. James M. Zortman, a retired Navy Vice Admiral, serves as Board Chairman. Juan C. Andrade, who joined as President and CEO in 2025, leads day-to-day operations.
What Is the History of USAA?
USAA was founded on June 20, 1922, in San Antonio, Texas, by a group of 25 US Army officers who struggled to obtain affordable auto insurance because insurers viewed their transient military lifestyle as high risk.
They solved the problem by agreeing to insure each other, forming the United States Army Automobile Association. The name was broadened to United Services Automobile Association in 1924 as eligibility expanded to officers from all military branches.
Over the following century USAA expanded from auto insurance into homeowners insurance, life insurance, banking through USAA Federal Savings Bank, investment services, and retirement products. It has remained headquartered in San Antonio, where it is one of the city’s largest employers with approximately 37,000 employees.
Who Is Eligible for USAA Membership?
USAA membership is restricted to current and former members of the US military and their eligible family members. This exclusivity is central to USAA’s identity and mission.
Eligible individuals include active-duty, guard, and reserve members of the Army, Navy, Air Force, Marines, Coast Guard, and Space Force, as well as honorably discharged veterans. Cadets and midshipmen at service academies and officer candidates in certain commissioning programs are also eligible.
Spouses of USAA members are eligible to join. Children of members can also become members, extending eligibility across generations of military families. Extended family members such as grandchildren, siblings, or parents of members are generally not eligible unless they independently qualify through their own military service.
USAA vs Progressive vs State Farm vs Geico: How Do They Compare?
USAA consistently earns the highest customer satisfaction scores in the auto and homeowners insurance industry, routinely ranking first or near first in J.D. Power surveys. This is the clearest evidence of what the member-owned structure achieves in practice.
Progressive, State Farm, and Geico are all publicly traded or privately held companies that must balance customer satisfaction against shareholder returns. USAA’s structure eliminates that tension entirely, as surplus earnings flow back to members rather than outside investors.
In 2025 USAA returned a record $3.8 billion to its 14 million members through distributions, dividends, and bank rebates, the largest member return in the company’s history. That translates to approximately $271 per member on average, a direct financial benefit that no publicly traded insurer can replicate structurally.
The main limitation is eligibility. Only military members and their families can access USAA’s products. For eligible individuals, USAA is widely considered the best option for auto and homeowners insurance based on both price and service quality.
What Products Does USAA Offer?
USAA offers auto, homeowners, renters, life, motorcycle, RV, and specialty insurance products. Its banking arm, USAA Federal Savings Bank, provides checking and savings accounts with no monthly fees, certificates of deposit, auto loans, mortgages, and personal loans.
USAA credit cards carry APRs that are consistently below the national average, saving members an estimated $500 million in interest in 2025 according to the company’s annual report. The deposit accounts provide access to more than 100,000 fee-free ATMs, saving members nearly $136 million in ATM fees in 2025.
Investment services include brokerage accounts, mutual funds, and retirement planning. USAA also offers a complimentary estate plan through Trust and Will for certain life insurance policyholders, a benefit rarely available from mainstream insurers.
Frequently Asked Questions
Is USAA publicly traded?
No. USAA is a private, member-owned reciprocal inter-insurance exchange. Its shares are not listed on any stock exchange, and no outside investors own the company. Profits are returned to members rather than distributed to shareholders.
Who is the CEO of USAA in 2026?
Juan C. Andrade is the President and CEO of USAA, having taken over the role in 2025 following the retirement of Wayne Peacock, who served as CEO for nearly five years. James M. Zortman, a retired Navy Vice Admiral, serves as Board Chairman.
Can civilians join USAA?
No. USAA membership is restricted to current and former US military members and their direct family members including spouses and children. Civilians with no connection to the military are not eligible. This restriction is intentional and central to USAA’s mission of serving the military community.
How much did USAA return to members in 2025?
USAA returned a record In 2025 USAA returned a record $3.8 billion to its approximately 14 million members in 2025 through distributions, dividends, and bank rebates and rewards. This was up from $2.2 billion in the prior year and represents the largest member return in USAA’s 103-year history.
I am Jack Neel, a mechanical engineer, researcher, and writer. I created this website to share my knowledge about different brands and products with you. I research the manufacturers behind the brands and provide you with the information you need to make smart buying decisions.