USAA 2010 Report to Members

USAA 2010 REPORT TO MEMBERSSERVING YOUTHROUGH LIFE

Brandon MorrisonUSAA MEMBER SINCE 2005Brandon Morrison knows a good deal when hesees one.After all, he buys equipment and materials everyday in his active-duty role. And he does a lot ofresearch to find the best bargains. When he and hiswife, Martha, decided to buy a new truck, he knewwhat he wanted: a great price and no haggling.So Brandon and Martha went online toUSAA Auto Circle, where members can find,finance and insure new or used vehicles. Theyfound pickups that cost $2,000 to $6,000 lessthan MSRP at nearby USAA-certified dealers.After a few months of shopping with the LowestPrice Guarantee in their hands, the Morrisons —including daughter, Jade — became the proudowners of their dream truck. And they savedthousands of dollars on the deal to boot.See legal information on Page 21. USAA 2010 REPORT TO MEMBERS 1

Pat & Manuel EscobarUSAA MEMBERS SINCE 1993Pat and Manuel Escobar realized that they werecutting it close.The couple had made some mistakes handlingtheir investments over the years, and theycame to USAA to help them get back on track.With retirement nearing for both of them,the second-generation USAA members fearedthey had waited too late to get assistance.USAA helped them consolidate their scatteredinvestments and plan for their retirement incomeneeds. And, despite the turbulent economy,USAA aided the couple in reaching their goalof enjoying their golden years in sunny Arizona,right back where they started out as collegesweethearts.USAA IS OURGuaranteed Income AnnuityIndividual Retirement Accounts2 USAA 2010 REPORT TO MEMBERSInvestments/Insurance: Not FDIC Insured · Not Bank Issued, Guaranteed or Underwritten · May Lose ValueThe 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 isa contract sold by an insurance company to provide income, usually after retirement, that cannot be outlived.See legal information on Page 21.

USAA IS MYFour-Star CheckingUSAA App for Android and Deposit@Mobile ® USAA 2010 REPORT TO MEMBERS 3Rebecca VoglerUSAA MEMBER SINCE 2008Rebecca Vogler doesn’t know the meaningof “slow down.”As the mother of an 8-year-old, she’s constantlyon the go taking care of her son, tutoring kidsat a nearby military installation and pursuinga career in clinical psychology. Not surprisingly,Rebecca takes care of as many of life’s details asshe can via her mobile phone.And, after switching to USAA Bank, thatincludes managing her money. Thanks to theUSAA Mobile App for Android, she monitorsher accounts daily and uses the Deposit@Mobilefeature to take pictures of checks and depositthem in her account wirelessly.A USAA member thanks to her father, whoserved as a Marine, Rebecca wishes she hadswitched sooner. But she’s happy that USAAhelps make her life a little less hectic now.See legal information on Page 21.

USAA IS MYTerm Life InsuranceHome and Auto Insurance4 USAA 2010 REPORT TO MEMBERS

Je≠rey Fason, USAF (Ret.)USAA MEMBER SINCE 1987Jeff Fason is a father, a husband and a protector.The retired Air Force lieutenant colonel knowsthat life doesn’t always follow the best-laid plans.He has seen how the deaths of those serving ourcountry can leave their families unprepared.And he’s committed to making sure that his wife,Ingrid, and children are well-cared for, nomatter what.That’s why Jeff has stayed with USAA for his life,auto and home insurance, even though competitorshave tried to lure him away. He knows howimportant it is to work with a provider thatunderstands the military and their families, aswell as one that’s solid and financially strong.Last summer, Jeff and Ingrid were blessed withsomething new to protect: a baby daughter, Jenesis.She’s truly a new beginning for the Fasons; hersister Keoni and brother Jalen are both more thana decade older. Jeff is at ease knowing that USAAwill be there for his entire family.USAA 2010 REPORT TO MEMBERS 5

John D. Monahan, USA (Ret.)USAA MEMBER SINCE 1977USAA IS OURJack Monahan didn’t need a lot of convincing.Among the first to hear The American Legion wasconsidering an alliance with USAA, he knew itwas a perfect match. For more than three decades,Jack has turned to USAA to insure his homeand at least a dozen cars over the years. He hasUSAA life insurance, a USAA credit card, andhe’s even used USAA to buy jewelry for his wifeand daughters.His biggest hope is that the relationship will bringmore USAA members to The American Legion,too. Jack believes both organizations do good work,and they’ve inspired him to do the same in hisprofessional role as Administrator of the State ofConnecticut Soldiers’, Sailors’ and Marines’ Fund.Serving the Needs of Veterans Who Have Honorably ServedPreferred Source for Financial Products and ServicesDaniel S. Wheeler, USNNATIONAL ADJUTANT, THE AMERICAN LEGIONUSAA MEMBER SINCE 2010Dan Wheeler seriously believes in doing hishomework.When The American Legion first looked atexploring an affinity relationship with USAA,he went undercover to look at what membershipcould offer him. The former Navy sonarmancalled USAA to get a quote on auto insuranceand made no mention of who he was or wherehe was from.After learning he could save hundreds of dollarsa year on his family’s policies, Dan switched toUSAA from an insurance company he’d beenwith for 31 years. He has since added a USAAcredit card and has been impressed with theservice. Dan believes that USAA treats membersmore like brothers-in-arms than just customers.6 USAA 2010 REPORT TO MEMBERS

USAA IS YOUR ALLY INSUPPORTING THE MILITARYIn 2010, USAA deepened its ties with the militarycommunity by forging affinity relationships with adiverse range of military associations and organizations.As the financial services provider of choice for manyof these groups, USAA can now deliver best-in-classproducts and services to their members. USAA alsosupports the organizations and their efforts to serveveterans who have honorably served, active-dutymilitary and their families.So far, USAA has formed alliances with thesemilitary-related groups:Air Force Association • Air Force Sergeants Association • Associationof Graduates of the United States Air Force Academy • Associationof the United States Navy • The Enlisted Association of the NationalGuard of the United States • Marine Corps Association • MilitaryOfficers Association of America • Naval Aviation Museum Foundation •Non Commissioned Officers Association • Naval Enlisted ReserveAssociation • Texas Aggie Corps of Cadets Association • The AmericanLegion • U.S. Naval Institute • Wounded Warrior ProjectLETTER FROM THE CHAIRMANUSAA demonstrated in 2010 that putting members firstcan lead to outstanding financial performance — despitea shaky economy that is slowly emerging from the worstrecession in recent decades.While other companies struggled againsteconomic headwinds, USAA maintainedits reputation for the best customerservice, added members, strengthenedits financial foundation and offered newproducts and services to help memberswork toward their financial security.How did USAA accomplish this? Forstarters, President and CEO Joe Roblesand his management team have pursueda clear mission to make USAA the financialservices provider of choice for themilitary community and their families.To that end, in 2009, USAA extendedmembership to all those who havehonorably served in the U.S. military.Meanwhile, we’ve continued deepeningour relationships with existing membersby rolling out innovative new productsand service channels, and investing inpeople and technology to provide evenbetter member service.NET NEW INVESTMENTS BY MEMBERS(in billions)2010 $7.12009 $6.92008 $3.6You have responded by trustingUSAA with your hard-earned money,bringing nearly $7.1 billion in net newassets to USAA in 2010. We now havemore than $147 billion in owned andmanaged assets.Thank you for the nearly800,000PHONE CALLS, E-MAILS AND LETTERSTO SENATORS — HELPING PRESERVE THE WAYUSAA DOES BUSINESS.Our financial strength has contributedto our position as a corporate leader.USAA now ranks 132 nd on the FORTUNE500 ® annual ranking of America’s largestcorporations, and USAA is the onlyproperty and casualty insurance groupleft standing that retains the highest ratingsfor financial strength from A.M.Best, Moody’s and Standard and Poor’s.USAA’s strength is manifest not only inour financial capacity but also in the wayour members look out for one another.And this was never more evident thanin 2010, when a late change to federalfinancial-reform legislation threatenedto change the way USAA does business.Members mobilized by sending nearly800,000 phone calls, e-mails and lettersto their senators. We can’t thank youenough for an amazing response thatfavorably changed the outcome of potentiallyrestrictive legislation for USAA.We’ll continue to be vigilant for otherregulatory threats that might impactour members.This report — like USAA itself —is less about USAA than it is about themembers we serve. We will endeavorto continue to deliver the service thatyou, our members — including the finemen and women who put their liveson the line for our country — deserve.John H. MoelleringLt. General, USA (Ret.)Chairman of the BoardSee legal information on Page 21. USAA 2010 REPORT TO MEMBERS 7

USAA’S MISSIONThe mission of the association is to facilitate thefinancial security of its members, associates andtheir families through provision of a full range ofhighly competitive financial products and services;in so doing, USAA seeks to be the provider of choicefor the military community.LETTER FROM THE CEODEAR FELLOWUSAA MEMBERS,Every year, we report to members about how USAAperformed during the past year. You report back to me,too. Every day, I get e-mails, letters and phone calls frommembers, telling me about their experiences with USAA.Just a few months ago, an officer onactive duty in Iraq left an emotionalvoice mail thanking one of our memberservice representatives. Another lenderwas about to foreclose on the officer’shome in the states, and we were ableto save her home from foreclosure.When we say that USAA serves youthrough every stage of life, we’re talkingabout people like that service memberand moments like these: A suddendeployment. Managing debt. The birthof a baby. Buying a home. Planning forretirement. The life of military-servicemembers and their families is one weunderstand, because many of us havebeen in those shoes and boots. USAAwas created nearly 89 years ago for andby members of the military. Today, aboutone in five USAA employees is activelyserving, has served or is a military spouse.Many more are the sons and daughters,brothers and sisters, and mothers andfathers of those who have served.In 2010, USAA was able to serve moremembers and meet more needs thanever before. Our members benefited inseveral tangible ways.USAA invested in new technology capabilitiesand introduced new services tosimplify your life. A great example inthe past year was the introduction of theAuto Circle and Home Circle solutions,which have saved thousands of membersGIVING BACK TO OUR MEMBERS2008$857M2009$1.2Btime, money and hassle. From one simpleto-navigatewebsite — or using a smartphone — members can now find, financeand insure a car or home. Members alsohave more and enhanced choices in howto do business with USAA — whether byphone, online, mobile (try our new appfor the iPad ® ) or at one of our new faceto-facefinancial centers opened in selectlocations in 2010.2010$1.3BIn 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.8 USAA 2010 REPORT TO MEMBERSSee legal information on Page 21.

2010 IN NUMBERSNumber of USAA employees who are activelyserving, have served or are military spouses.Reinforcing our commitment to understanding militaryfamilies better than any financial services providerIncrease in number ofUSAA members.Growing in strength, thanks to expandingeligibility to those who have honorably servedAmount paid out in homeand auto claims by USAA.Being there for our policyholderswhen they most need it#11 in 5 $18.7B 617,000MORE THAN$165M $ 7. 4BWhere USAA ranked innumerous financial industrysurveys and studies.Excelling in customer serviceand innovationUSAA’s net worth,an increase of $1.7 billionfrom 2009.Maintaining our ability to help keepour commitment to membersHow much USAA memberssaved through refinanced mortgagesand car-buying services.Saving our members money on adiverse range of innovative productsWe were also able to return more moneyback to you in 2010. Once we met ourcurrent and projected financial needs,USAA gave back $1.3 billion to ourmembers and customers in dividends,distributions, and bank rebates andrewards — 12 percent more than theyear before. Additionally, we helpedmembers and customers save more than$165 million last year through refinancedmortgages and car-buying services. Andwe carefully managed reserves to bethere for our insured members in theirtimes of loss. Last year, USAA paid out$7.4 billion in auto and home claims,despite a year with no major hurricanesalong U.S. coasts.More members of the military communityare now eligible to join USAA.After expanding membership in 2009to all who have honorably served in theU.S. military, USAA now has more than8 million members. We also forged newrelationships with a number of militaryrelatedorganizations in 2010, includingThe American Legion and the MilitaryOfficers Association of America. Theserelationships are a logical extension ofour mission to facilitate the financialsecurity of our military members andtheir families.Our members continued to enjoy awardwinningservice levels and reported97 percent customer satisfaction. In fact,USAA again garnered numerous topscores for customer service from leadingresearch firms such as J.D. Power,Forrester Research, Inc. and others.Of course, the ability to serve moremembers and meet more needs restson a foundation of financial strength.You will see in the pages ahead thatUSAA grew stronger in 2010. Thanksin part to more efficient operations andprudent financial management, our networth — the best measure of our abilityto keep our commitment to our memberstoday and in the future — increased$1.7 billion, to a record $18.7 billion.One valuable asset that doesn’t appearon our balance sheet is the bond of trustbetween USAA and our members.The core values that guide the militaryalso inspire USAA to do the right thingbecause it’s the right thing to do. As wemove into another year of business andregulatory challenges, we intend tocontinue earning your trust by knowingyou and serving you better through everystage of life.Sincerely,Josue (Joe) Robles Jr.Maj. General, USA (Ret.)President and Chief Executive OfficerSee legal information on Page 21. USAA 2010 REPORT TO MEMBERS 9

HOW WE SERVE YOUServing our members means more than just o≠ering a full range offinancial products and services. It means helping you meet your financialneeds for every facet and stage of your life.InsuranceComprehensive protectionbacked by competitive ratesand exceptional service on auto,home and life insurance, andmore. Members who switch savean average of $450 a year onauto insurance.BankingSavings and service you expectfrom USAA Bank, with the 24/7convenience of online and mobilebanking. USAA refunds up to$15 per month in ATM fees chargedby other banks nationwide.InvestmentsUSAA offers a full range ofinvestment solutions, includingmutual funds, IRAs, brokerageservices, college savings choicesand more.RetirementA complete suite of productsdesigned to help you manageyour wealth and deliver retirementincome, backed by professionalhelp from our retirement advisors.AdviceGuidance to help you achieveyour financial goals, includingpersonalized fee-based planningand free advice for every stageof your life from licensed, salariedfi n a n c i a lp r o f e s s i o n a l s .I N V E S T M E N T SLEARN MORE AT USAA.COMSPECIAL MILITARY PRODUCTS & SERVICESMILITARY PROTECTION PLUS LIFE INSURANCEMILITARY CHECKING FOR RECRUITSDEPLOYED-MEMBER BENEFITSMILITARY PCS BENEFITSSURVIVORSHIP SERVICESPROPERTY & CASUALTY INSURANCEAUTO INSURANCEMOTORCYCLE, BOAT, ANTIQUE AUTO & RV INSURANCEUMBRELLA INSURANCEHOME INSURANCERENTERS & RENTAL PROPERTY INSURANCEVALUABLE PERSONAL PROPERTY INSURANCEFLOOD & WIND INSURANCESPECIALTY PROPERTY INSURANCEMEMBER-OWNER BUSINESS INSURANCELIFE INSURANCETERM LIFE INSURANCEPERMANENT LIFE INSURANCESAVINGS & INCOME ANNUITIESMEDICARE SOLUTIONSINVESTMENTSMUTUAL FUNDSINDIVIDUAL RETIREMENT ACCOUNTSBROKERAGE SERVICESCOLLEGE SAVINGSRETIREMENT SOLUTIONSPERSONAL ASSET MANAGEMENTBANKINGCHECKINGSAVINGSCERTIFICATES OF DEPOSITCREDIT CARDSHOME MORTGAGE LOANSHOME EQUITY LOANSAUTO LOANSPERSONAL LOANSADVICE & ADVISORY SERVICESFREE FINANCIAL ADVICEPERSONAL FINANCIAL PLANNINGRETIREMENT PLANNINGWEALTH MANAGEMENTTRUST SERVICESMARKET NEWS & RESEARCHADVICE ARTICLES & CALCULATORSSERVICES & INNOVATIONSAUTO CIRCLECAR BUYING SERVICEHOME CIRCLEMOVERSADVANTAGE ®DEPOSIT@HOME ®MOBILE APPS FOR IPHONE ® , ANDROID & BLACKBERRYDEPOSIT@MOBILE ®EASY DEPOSITWEB BILLPAY ®CREDIT CHECK MONITORINGUSAA ® MONEY MANAGER BUDGETING TOOL10 USAA 2010 REPORT TO MEMBERSInvesting in securities products involves risk, including possible loss of principal.Investments/Insurance: Not FDIC Insured · Not Bank Issued, Guaranteed or Underwritten · May Lose ValueProducts 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 YOURANYTIME, ANYWHERE BANKERBanking can be convenient — even enjoyable — if you do business witha bank that puts its membership first. At USAA Bank, we believe that:Find out about USAAMobile banking and moreat usaa.com/mobile.Your financial needs are our top priority.That’s why we offer checking with no monthly service fees,ATM fee refunds, and credit cards with rich rewards andno annual fee. 1Making a deposit shouldn’t meanmaking a trip.We were the first to provide Deposit@Home, ® Deposit@Mobile ®and, most recently, USAA Easy Deposit for qualifyingmembers.USAA CREDIT CARDS OFFER AN AVERAGEANNUAL PERCENTAGE RATE THAT IS43% LOWERTHAN THE NATIONAL AVERAGE APR. *Banking is something you shouldbe able to do anywhere, anytime.To make your life easier, we offer free account alerts,Web BillPay ® and automatic budgeting help withthe USAA ® Money Manager personal budgeting tool 2 —all available on usaa.com or USAA’s mobile apps.Military life is special, so we providespecial benefits.For our active military members who are called toserve our country, we reimburse foreign transactionfees and lower credit card interest rates to 4 percent —even lower than the 6 percent the government requires. 3USAA BANK RETURNED$424 MILLIONTO MEMBERS IN THE FORM OFBANK REBATES (INCLUDING ATMFEES) AND REWARDS IN 2010. 4USAA IS YOURONE-STOP SHOPPER, LENDERAND INSURERUSAA Home Circle Buy, sell, finance, insure and even rentyour home at www.homecircle.com.GET UP TO A$3,100 CASH BONUSWHEN YOU BUY AND SELL YOURHOME VIA USAA MOVERSADVANTAGE, ®A PART OF HOME CIRCLE. 6USAA Auto Circle Find, finance and insure yournew vehicle at www.autocircle.comor on your USAA Mobile App foriPhone ® or Android. USAA MEMBERS SAVE AN AVERAGE OF$4,573 OFF MSRPWHEN BUYING A NEW CAR OR TRUCKTHROUGH AUTO CIRCLE. 5USAA IS YOURRETIREMENT ADVISORBy choosing USAA to assist in your retirement plan, you selectedthe services of licensed advisors who see the big picture and worktogether toward a common goal: turning your hard-earnedsavings into a retirement plan. At USAA Retirement Solutions,we believe that: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 retirementplan, we can help you. Plus, no other financial services organization knows themilitary like USAA.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 servingyour interests.A multilayered retirement plan with plenty ofchoices is a must.USAA offers a full range of retirement services, including income and assetmanagement strategies, legacy planning and health care solutions.HAVING ENOUGH MONEY SAVED FOR RETIREMENTIS THE NO. 1 FINANCIAL CONCERN OF OUR MEMBERS.IN 2010, USAA HELPED MEMBERSNEARLY 500,000 TIMES IN PREPARINGFOR THEIR RETIREMENT.USAA IS YOURMAKE-LIFE-EASY INNOVATORUSAA App for iPad ®Built from the ground up to fully leverage the interactivityof the iPad, ® the app delivers many of the transactionalfeatures already found on USAA’s App for iPhone, ® but alsoadds world-class content, news and advice.GO TO THE APPLE ® IPAD ®APP STORE ® TO DOWNLOAD THEFREE USAA APP FOR IPAD.USAA Easy DepositOur newest way for you to instantlytransfer checks for deposit in yourUSAA checking or savings account. 7USAA EASY DEPOSITWILL BE AVAILABLE AT1,900 LOCATIONSOF THE UPS STORETHROUGHOUT THECOUNTRY BY APRIL.USAA Financial CentersAt select locations in the U.S., you can now stop inand meet face to face with service representativesto open a bank account or auto insurance policy,or get help on more complex financial decisions byvideoconferencing with a USAA financial planner.On-site USAA ATMs also make bank transactions easy.FIND A USAA FINANCIAL CENTERLOCATION NEAR YOU ATUSAA.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.USAA 2010 REPORT TO MEMBERS 11

USAA IS OURImparting the Core Values of Service, Loyalty, Honesty and IntegrityHighly Ranked in FORTUNE’s 100 Best Companies to Work For ®Norma RenteriaEMPLOYEE SINCE 2001You want Norma Renteria on your side.She took the call from a deployed military officerwho was already fighting one battle overseas.The member had just found out her homewas hours from entering foreclosure, and shefrantically called USAA for help.Norma quickly leapt into the fray, using somequick thinking and more than a little determinationto solve the problem and save themember’s house. The thankful officer was thenable to return her focus to where it belonged:on her troops in the field.Norma and USAA had her back, even fromseveral thousand miles away.Christopher WahlEMPLOYEE SINCE 2010Christopher Wahl walks the walk while he talksthe talk.Only days after joining USAA as an investmentservices representative, Chris started getting theidea in his head that a second career might beperfect for him. Inspired by the active-duty andveteran military members he spoke with everyday, Chris decided to enlist in the Army Reservesand apply to Officer Candidate School.He will start basic training in May and attendOCS in August. But his job will be waiting forhim at USAA when his service is complete, andthen he’ll number among the 20 percent ofUSAA employees who are actively serving, haveserved or are military spouses.12 USAA 2010 REPORT TO MEMBERS

OUR MEMBERSHIPNearly 89 years ago, a group of 25 Army officers formed USAA when theybanded together to insure each other’s automobiles. Today, USAA is open toall those who have served their country honorably. In turn, we are proud toserve more than 8 million active-duty service members and veterans of allranks and grades, as well as their families.2010 AT A GLANCEMEMBERSHIP INCREASED BY:617,000MEMBERSHIP GROWTH:MEMBER RETENTION:98%MEMBER SATISFACTION:97%19222519801.2M19902.0M20004.4M20097.4M20108.0MOUR MOBILE MEMBERSHIP175%growth in useof USAA MobileNearly15,000logins to USAA Mobileevery hourMore than$6,000deposited viaDeposit@Mobile ®every minute$2 Billiondeposited safely and securely viasmart phones since Deposit@Mobilelaunched in 2009OUR AWARDS & ACCOLADES#1 “Best in Class”IN JAVELIN STRATEGY &RESEARCH’S 2010 MOBILEBANKING SCORECARDAugust 19, 20102010 J.D. Power U.S. Auto Insurance Study:USAA HIGHEST RATED INSURERAugust 3, 20102010 J.D. Power U.S. Homeowners Insurance Study:USAA HIGHEST RATED INSUREROctober 5, 2010529 COLLEGE SAVINGS PLANRanked #1For 3-year and 5-yearperformance *by Savingforcollege.com, December 31, 2010COMPUTERWORLD’S#1 Best Place to Workin Information TechnologyJune 21, 2010InformationWeek’s2010 TOP 10 MOSTINNOVATIVE COMPANIES(#7 Overall, #1 in Insurance)September 15, 2010Top-RankedNamed CompanyBY CONSUMERS FORCUSTOMER ADVOCACY INBANKING AND INSURANCEForrester Research, Inc.,an independent research firm“Customer Advocacy 2010: How CustomersRate U.S. Banks, Investment Firms, andInsurers,” January 29, 2010Ranked #2CUSTOMERSERVICE CHAMPSBloomberg Businessweek Magazine,February 2010Only company ranked in top two everyyear 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-yearperiod 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 thePlan. Read it carefully before investing. If you or the beneficiary are not residents of the State of Nevada, consider before investingwhether your or the beneficiary’s home state offers a 529 plan that provides its taxpayers with state tax and other benefits notavailable 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.USAA 2010 REPORT TO MEMBERS 13

OUR FINANCIAL STRENGTHMANAGEMENT’S RESPONSIBILITYFOR FINANCIAL REPORTINGThe management of USAA is responsible for theintegrity and objectivity of the financial informationpresented in this annual report. Due to the volumeof financial information contained in the auditedconsolidated financial statements, which includesthe financial statements as well as the accompanyingfootnotes, we have chosen not to include the fullaudited consolidated financial statements in thisReport to Members.The financial statements that appear in this documenthave been selected from the audited consolidatedfinancial statements to give basic and necessaryfinancial information about USAA. Certain prior yearamounts were reclassified to conform to the currentyear presentation. The selected financial informationwas prepared by USAA in accordance with AccountingPrinciples Generally Accepted in the United States ofAmerica (GAAP), except for the key statutory data,which was prepared in accordance with StatutoryAccounting Principles (SAP). Management believesthe financial information contained in the auditedconsolidated financial statements fairly presentsUSAA’s financial position, results of operationsand cash flows. A copy of the complete auditedconsolidated financial statements of USAA, includingErnst & Young LLP’s unqualified independentauditors’ report thereon, is available upon requestto USAA headquarters in San Antonio, Texas.USAA’s internal controls are designed to reasonablyensure that USAA’s assets are safeguarded fromunauthorized use or disposition and that USAA’stransactions are authorized, executed and recordedproperly. In addition, USAA has a professional staff ofinternal auditors who monitor these controls on anindependent basis. The Finance and Audit Committeeof USAA’s Board of Directors engaged Ernst & YoungLLP as independent auditors to audit USAA’s financialstatements and express an opinion thereon. Ernst &Young LLP’s audit included consideration of USAA’sinternal controls over financial reporting as a basis fordesigning audit procedures that support their financialstatement audit opinion, but not for the purpose ofexpressing an opinion on the effectiveness of USAA’sinternal controls over financial reporting.The Finance and Audit Committee of USAA’s Boardof Directors consists of five members, who are notofficers or employees of USAA. This committee meetsperiodically with management, internal auditors andErnst & Young LLP to ensure that managementfulfills its responsibility for accounting controls andpreparation of the consolidated financial statementsand related data.Josue (Joe) Robles Jr.Maj. General, USA (Ret.)President and Chief Executive OfficerKristi A. MatusExecutive Vice PresidentChief Financial OfficerUSAA HIGHLIGHTS Years Ended December 312010 2009 2008TOTAL MEMBERS (in millions) 8.0 7.4 7.0TOTAL PRODUCTS (in millions) 33.5 30.8 29.1TOTAL EMPLOYEES (in thousands) 22.6 21.5 21.9USAA CONSOLIDATED (Dollars in millions)2010 2009 2008Revenue $ 17,946 $ 17,558 $ 12,912Expenses 15,309 14,538 12,489Net income 2,637 3,020 423Assets owned 94,262 79,905 68,296Assets owned and managed 147,858 137,288 119,550Total liabilities 75,551 62,888 53,716Net worth 18,711 17,017 14,580CONSOLIDATED STATEMENTS OF NET WORTHStanding strong for tomorrowA 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 ensures the stability of USAA by providing that future potential lossescan be covered, regulatory and rating agency requirements can be met, and fundingis available for current and future operations.Because of our financial strength, you can count on USAA to be here for youthrough every stage of life.Years Ended December 31 (Dollars in millions) 2010 2009 2008NET WORTHBeginning of year $ 17,017 $ 14,580 $ 14,377Net income 2,637 3,020 423Distributions to subscribers (687) (597) (376)Unrealized losses on securitiesduring year, net of income taxes andreclassification adjustments — — (36)Other (includes change in accounting principles) (256) 14 192TOTAL NET WORTH $ 18,711 $ 17,017 $ 14,580NET WORTH (in billions)$13.1$14.4$14.6$17.0$18.72006200720082009201014 USAA 2010 REPORT TO MEMBERS

MEMBER DISTRIBUTIONSSharing our successWe honored our commitment to provide exceptional member experience and returneda record $1.3 billion to members through distributions, dividends, and bank rebatesand rewards. This 12 percent increase in distributions was achieved by USAA runningan increasingly efficient operation and delivering the highest levels of service to ourmembers. In addition to the member distributions, USAA helped members with someof the big decisions in life — refinancing mortgages and buying vehicles — saving themmore than $165 million. We were also there to help members as they searched forsolutions to work their way back to solid financial ground.DISTRIBUTIONS TO MEMBERS (in millions)Years Ended December 31 (Dollars in millions) 2010 2009 2008Subscriber’s Account distributions $ 416 $ 339 $ 170Automobile policyholder dividends 178 151 69Total automobile policyholder dividends andSubscriber’s Account distributions 594 490 239Subscriber’s Account Senior Bonus* 149 132 121Subscriber’s Account terminations 122 126 85Total property and casualty distributions 865 748 445Life insurance policyholder dividends 44 44 44Bank rebates and rewards 424 396 368TOTAL DISTRIBUTIONS TO MEMBERS** $ 1,333 $ 1,188 $ 857$1,188$1,333Past dividends or distributions are not a guarantee or promise of future dividends or distributions.* 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.$795$910$857**Includes amounts returned to members, associates and other customers.20062007200820092010CONSOLIDATED BALANCE SHEETSThriving through it allUSAA saw assets grow by 18 percent to $94 billion, which was largely fueled bystrong product volumes. Also contributing to this growth were previously securitizedbank loans, which came back onto the balance sheet in 2010 in accordance with newaccounting standards.As each business segment of USAA continues to grow, we will remain focused on beinghighly competitive and an industry leader in financial strength and member service.ASSETS (in billions)Years Ended December 31 (Dollars in millions) 2010 2009 2008ASSETSCash and cash equivalents $ 8,786 $ 7,435 $ 6,277Investments 35,033 31,633 23,634Real estate investments, net 1,956 1,587 1,284Bank loans, net*** 37,548 28,739 26,532Premiums due from policyholders 2,124 1,977 1,812Property and equipment, net 1,343 1,380 1,469Securities lending collateral 473 459 754Other assets 6,999 6,695 6,534TOTAL ASSETS $ 94,262 $ 79,905 $ 68,296$60.32006$67.22007$68.32008$79.92009$94.32010LIABILITIESInsurance reserves $14,062 $13,061 $12,158Life insurance — funds on deposit 13,626 11,544 8,423Bank deposits 39,775 33,467 28,954Borrowings*** 3,441 534 610Securities lending payable 477 478 754Other liabilities 4,170 3,804 2,817TOTAL LIABILITIES $ 75,551 $ 62,888 $ 53,716NET WORTHTotal net worth 18,711 17,017 14,580TOTAL LIABILITIES AND NET WORTH $ 94,262 $ 79,905 $ 68,296*** In accordance with new accounting standards, certain off balance sheet securitized bank loans and relatedborrowings are now included in our 2010 results.RATINGS OF FINANCIAL STRENGTHFulfilling our commitmentContributing to our position as an industry leader, USAA Property and CasualtyInsurance Group was the only property and casualty insurer to maintain the highestpossible financial strength ratings from A.M. Best, Moody’s and Standard & Poor’srating agencies. These independent assessments of USAA’s financial strengthacknowledge our ability to fulfill our commitment to members.USAA PROPERTY & CASUALTY INSURANCE GROUPA++(Superior, highestof 16 possible ratings)A.M. Best CompanyAaa(Exceptional, highestof 21 possible ratings)Moody’s InvestorsServiceAAA(Extremely Strong, highestof 21 possible ratings)Standard & Poor’sUSAA FEDERAL SAVINGS BANKTOP 15%OF PEER GROUPHighline Banking Data ServicesSUPERIORIDC Financial Publishing Inc.USAA LIFE INSURANCE COMPANIESA++(Superior, highestof 16 possible ratings)A.M. Best CompanyAa1(Excellent, second highestof 21 possible ratings)Moody’s InvestorsServiceAAA(Extremely Strong, highestof 21 possible ratings)Standard & Poor’sSee legal information on Page 21. USAA 2010 REPORT TO MEMBERS 15

CONSOLIDATED STATEMENTS OF INCOMECommitting to qualityA continued focus on member experience, proactive expense control and rigorousmanagement of risk contributed to a highly successful year financially, with a netincome of $2.6 billion.Revenue of $18 billion came mostly from strong product sales and retention. Inaddition to members turning to us as a provider for their financial assets, more newmembers looked to USAA to help meet their financial needs. A record 617,000 netnew members joined USAA in 2010.Never forgetting that we are stewards of the membership’s assets, USAA continuedto practice exceptional expense control, evident in our property and casualty insuranceoperation delivering an industry-leading operating expense ratio of 23.6 percent,our lowest in more than 50 years.PRE-TAX INCOME (in millions)Years Ended December 31 (Dollars in millions) 2010 2009 2008REVENUEInsurance premiums $ 11,205 $ 10,363 $ 9,641Investment returns:Interest and dividends earned, net 1,715 1,667 1,517Realized gains on securities sold, net 346 183 584Unrealized gains (losses) on securitiesunsold, net 653 2,090 (1,847)Total investment return 2,714 3,940 254Fees, sales and loan income, net 3,422 2,408 2,008Real estate investment income 190 146 171Servicing and contractual income onsecuritizations — 385 368Other revenue 415 316 470Total revenue 17,946 17,558 12,912$2,090LOSSES, BENEFITS AND EXPENSESNet losses, benefits and settlement expenses 9,160 8,340 8,353$2,917$2,388$2,238$2,221$653$2,928Deferred policy acquisition costs 556 495 471Real estate investment expenses 153 116 110Interest expense 604 516 688Dividends to policyholders 223 196 114Other operating expenses 3,669 3,584 2,785Total losses, benefits and expenses 14,365 13,247 12,521Pre-tax income 3,581 4,311 391Income tax expense (benefit) 944 1,291 (32 )20062007200820092010NET INCOME $ 2,637 $ 3,020 $ 423ALL OTHER INCOMEUNREALIZED GAINS (LOSSES)ON SECURITIES UNSOLD, NET*($1,847)*In 2008, USAA modified the presentation of unrealized gains (losses) from net worth to income.CONSOLIDATED STATEMENTS OF CASH FLOWSMaintaining our focusUSAA produced positive operating cash flows of $4.9 billion due to strongoperational performance, prudent expense management and continued growth inproduct volumes.Every month in 2010, USAA saw positive net cash flows coming from our memberinvestment activities, evidence of members’ trust in the financial stability of USAA.As we continue to build our member insight and understanding, USAA will remainsteadfast in our commitment to quality and member satisfaction.This level of member trust is not something we take lightly, and USAA will continueto be here for our members in their search for financial solutions and stability.CASH FLOWS FROM OPERATING ACTIVITIES (in billions)$4.9Years Ended December 31 (Dollars in millions) 2010 2009 2008CASH FLOWS FROM OPERATING ACTIVITIESNet income $ 2,637 $ 3,020 $ 423Adjustments to reconcile net income to net cashprovided by operating activities:Increase in insurance reserves 645 581 508Interest credited on policyholder deposits 574 524 427Net realized gains (346) (183) (584)Unrealized (gains) losses on securitiesunsold, net (648) (1,920) 1,710Increase in premiums due from policyholders (147) (164) (120)Depreciation and amortization 173 143 189Equity loss (earnings) in real estatepartnerships 5 7 (3)Decrease (increase) in loans held for sale 1,137 (351) 1,387Change in other assets/liabilities 835 1,337 (655)Net cash provided by operating activities 4,865 2,994 3,282$2.8$2.3$3.3$3.0CASH FLOWS FROM INVESTING ACTIVITIESProceeds from investments sold or matured 4,283 4,360 14,244Cost of investments acquired (7,381) (8,399) (16,894)Net increase in bank loans (1,010) (2,568 ) (2,367 )20062007200820092010Other uses (421) (407) (421)Net cash used in investing activities (4,529) (7,014) (5,438)CASH FLOWS FROM FINANCING ACTIVITIESSubscriber’s Account distributions (687) (595 ) (373 )Net (repayment) borrowing of debt (5,527) (76 ) 161Net increase in bank deposits 6,309 4,513 2,068Other 920 1,336 997Net cash provided by financing activities 1,015 5,178 2,853Net increase in cash and cash equivalents 1,351 1,158 697CASH AND CASH EQUIVALENTS —BEGINNING OF YEAR 7,435 6,277 5,580CASH AND CASH EQUIVALENTS —END OF YEAR$ 8,786 $ 7,435 $ 6,27716 USAA 2010 REPORT TO MEMBERS

OUR RESPONSIBILITYSERVING OUR MEMBERS MEANSSERVING OUR COMMUNITIESGiving back to the places where they live and to the causes in whichthey believe remains a vital mission to USAA and its employees andretirees. Through significant gifts of time and money, we’ve made adifference both locally and nationwide.VolunteeringIn 2010, more than 7,800 employee and retireevolunteers reported more than 368,000 hoursgiven. This is equivalent to nearly$7.7 MILLION IN VALUE GIVENBACK TO THEIR COMMUNITIESEducating consumersThe USAA Educational Foundation ® providesconsumers with good information to make informeddecisions on important personal and financialissues. The Foundation, a nonprofit organization,offers a series of free guides available online orby mail at usaaedfoundation.org.Charitable contributions5.2 MILLIONPUBLICATIONSDISTRIBUTEDBY THE USAAEDUCATIONALFOUNDATIONUSAA, the USAA Federal Savings Bank and The USAA Foundation contributed more than$13 MILLION TO NONPROFITSUnited WayMore than 98 percent of USAA employees pledged to give a record $6.7 million to theUnited 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 fororganizations nationwide.MORE THAN $ 10.3 MILLIONGENERATED IN SUPPORTOF UNITED WAYThe 2010 San Antonio United Waycampaign artwork was created byBill Kleinedler. After being struckby an IED while serving in Iraqin 2006, Bill spent three yearsin surgery and rehabilitation ationbefore he could again hold anduse a pencil. He finally wasable to return to his passionof painting and creation, andstrives to show others thereis help, healing and hopeeven in their darkest hours.SERVING OUR MEMBERS MEANSSERVING OUR ENVIRONMENTThrough our enterprise sustainability program, USAA is committed toconducting 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 theEnvironmental Protection Agency with EnergyStar awards for ourSan Antonio, Phoenix, Colorado Springs and Tampa campuses.EnergyIn 2010, USAA agreed to purchase 25 percent of its electrical power from renewableenergy sources — including wind power — in its San Antonio and Phoenix offices.This made USAA one of the top FORTUNE 500 ® purchasers of renewable energyin the country, per the EPA’s Green Power Partnership Program. These alternativeenergy initiatives saved the equivalent of enough power to supply more than2,300 homes for a year.USAA’S OVERALLELECTRICAL CONSUMPTIONDECREASED BY 13%Fuel and emissionsOur Commuter Carpool Program saved more than 3.6 million milesof driving and reduced carbon emissions by more than 1,800 tons.Also, USAA saved 125,000 gallons of vehicle fuel in 2010 by usingmore fuel-efficient vehicles, including seven electric and11 hybrid cars and trucks, in our corporate fleet.125,000 GALLONSOF VEHICLE FUELSAVED IN 2010RecyclingUSAA RECYCLED67% OF ITS WASTEThis included nearly 4,700 tons of paper, glass,electronics and other materials. We also removed allplastic foam products from our workplace cafeteriasand replaced them with recyclable, compostable orreusable service ware.PaperWaterIn 2010, USAA reducedfresh water consumption by29 MILLIONGALLONSMore than 3.9 million members chose to have their USAA documentsdelivered electronically in 2010.MORE THAN 943 MILLION PAGES WERESAVED FROM BEING PRINTED AND MAILEDThis is equal to approximately 122,000 trees and helped USAA savemore than $73 million.See legal information on Page 21. USAA 2010 REPORT TO MEMBERS 17

OUR 2010 BOARD OF DIRECTORSSixteen accomplished individuals who have distinguished themselves through theirmilitary and civilian careers comprise the USAA Board of Directors. Board membersconduct 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 executiveofficer of Lear Siegler Services Inc.,Moellering is the founder of managementconsultancy JM Associates, the board vicechairman for Village Gardens Realty andVillage Gardens LLC, and is a member ofthe adjunct faculty of the Kenan-FlaglerBusiness School of the University of NorthCarolina. He also serves on the boards of theResearch Triangle Institute Internationaland the National Defense IndustrialAssociation. Moellering retired from theU.S. Army as a lieutenant general following28 years of distinguished service. Afterearly formative assignments in combat andengineering units, which included combatin Vietnam, his key command assignmentsincluded command of an engineer districtin Vicksburg, Mississippi; assistant divisioncommander of the 9 th Infantry Division andHigh Tech Test Bed in Ft. Lewis, Washington;commandant of the U.S. Military Academyat West Point; and commanding general ofthe U.S. Army Engineer Training Center atFt. Leonard Wood, Missouri. Key staffassignments included service as a WhiteHouse Fellow on the White House staff;teaching on the engineering and historydepartment faculties at West Point; executiveto the Army Chief of Staff in the Pentagon;and finally, assistant to the Chairman ofthe Joint Chiefs of Staff. A graduate of theU.S. Military Academy, Moellering holdsa master’s degree in engineering from theUniversity of California, Berkeley, and is agraduate of the Stanford Business SchoolMarketing Management Course for SeniorExecutives. Since joining the USAA boardin 1996, Moellering has served on variouscommittees and chaired the Finance andAudit Committee for six years beforebecoming the Chairman in late 2007.Chairman of the Board; Chair, Governanceand Executive committees; ex officio member,Finance and Audit, Compensation andWorkforce, and Marketing and Programscommittees2. Maj. General Josue Robles Jr.,USA (Ret.)Member since 1967. Elected 2007.Robles is president and chief executive officerof USAA. He also served as the executivevice president, chief financial officer andcorporate treasurer. From 1990 to 1994,Robles was a member of the USAA Boardof Directors. He joined USAA in 1994 as anemployee after 28 years of distinguishedmilitary service, which included serving inKorea, Vietnam, Germany and the MiddleEast. He was the director of the Army Budgetand was the commanding general, 1 st InfantryDivision (The Big Red One). During his militarycareer, Robles was recognized numeroustimes for service and honor. He received theDistinguished Service Medal with Oak LeafCluster, the Legion of Merit with two OakLeaf Clusters, the Bronze Star with Oak LeafCluster and the Meritorious Service Medalwith Oak Leaf Cluster. Robles holds a bachelorof business administration degree inaccounting from Kent State University anda master’s degree in business administrationfrom Indiana State University. In addition,Robles also serves on the Boards of DTEEnergy and several nonprofit organizations.Member, Governance and Executivecommittees3. General John P. Abizaid,USA (Ret.)Member since 1973. Elected 2007.Abizaid is an independent consultant oninternational and strategic issues, a directorof RPM International Inc. and DefenseVenture Group, and an advisory boardmember of several corporations. He alsoserves as the Distinguished Chair ofWest Point’s Combating Terrorism Center.Abizaid’s 34-year Army career includedserving as the Commander of the UnitedStates Central Command, overseeingAmerican military operations in a 27-countryregion, from the Horn of Africa to theArabian Peninsula and South and CentralAsia, covering much of the Middle Eastwhile supervising 250,000 U.S. troops. Hecommanded troops during the invasion ofGrenada, the Gulf War and in Bosnia andHerzegovina. Abizaid was also the executiveassistant to the Chairman of the Joint Chiefsof Staff, director of strategic plans and policyon the Joint Staff and director of Joint Staff.A graduate of the U.S. Military Academy atWest Point, Abizaid holds a master’s degreein area studies from Harvard University,and was an Olmsted scholar at the Universityof Jordan. As a member of the USAA board,Abizaid served on the Finance and AuditCommittee before becoming a memberand then vice chair of the Marketing andPrograms Committee. Vice Chair,Marketing and Programs Committee4. Patricia C. BarronMember since 1972. Elected 2000.Barron is the lead director of QuakerChemical Corp. and a director of UltralifeCorporation and Teleflex Inc. She is a formerprofessor at the Stern School of Business,New York University. She serves as a trusteeof several nonprofits that focus on her interestsin education and health. She also servedas president of two Xerox divisions and asvice president, Business Operations Support.Barron graduated from Bedford College ofPhysical Education in the United Kingdomand holds a master’s degree in businessadministration from Harvard BusinessSchool. As a member of the USAA board,Barron served as vice chair of the Financeand Audit Committee, and chair of theCompensation and Workforce Committee.Chair, Compensation and WorkforceCommittee; member, Governance andExecutive committees5. Colonel Herman E. Bulls,USAR (Ret.)Member since 1977. Elected 2010.Bulls is the founder and chief executive officerof Jones Lang LaSalle’s Public Institutionsdivision, specializing in delivering real estatesolutions to government entities, nonprofitorganizations, transportation facilities andhigher education institutions. He is alsopresident and chief executive officer of BullsAdvisory Group LLC. He co-founded andserved as CEO of Bulls Capital Partners LLC,a commercial mortgage company whichincluded SunTrust and Goldman Sachs assuccessive partners. The company was soldto a Wall Street entity in 2010. He is on theboards of directors of Comfort Systems,USA and Rasmussen Inc. and is vice chairof the West Point Association of GraduatesBoard of Directors. Bulls completed almost12 years of active duty service with theUnited States Army. His last active dutyassignments were working in the Officeof the Assistant Secretary of the Army forFinancial Management at the Pentagonand as an assistant professor of economicsand finance at West Point. He has completedthe Army’s Airborne, Ranger and Commandand General Staff College courses and servedoverseas in the Republic of Korea. He retiredas a colonel in the U.S. Army Reservesin 2008. He is a member of the ExecutiveLeadership Council, an organization of seniorAfrican American business executives fromFORTUNE 500 ® companies, and formerchairman of the board of directors of theExecutive Leadership Foundation. Bullsreceived a bachelor of science degree in engineeringfrom the U.S. Military Academy atWest Point and a master’s of business administrationdegree in finance from HarvardBusiness School. Member, Finance and AuditCommittee6. Lt. General Thomas P. Carney,USA (Ret.)Member since 1963. Elected 1997.A graduate of the U.S. Military Academy,Carney is an independent consultant tothe defense industry and chairman ofCALIBRE Systems Inc. He held a varietyof key command and staff positions,including director, program analysis andevaluation, Office of the Chief of Staff, Army;commanding general, 5 th Infantry Division(Mechanized), Fort Polk, Louisiana;commanding general, U.S. Army RecruitingCommand; assistant division commander,82 nd Airborne Division; executive to the vicechief of staff, Army; commander, 3 rd Brigade,2 nd Infantry Division, Korea; and commander,2 nd Battalion (Mechanized), 87 th Infantry,Mainz, Germany. Carney also served twoinfantry tours in Vietnam. After a 31-yearmilitary career, he served as Deputy Librarianof Congress, where he was chief executiveofficer. Carney earned a master’s degree inoperations research and systems analysisfrom the U.S. Naval Postgraduate School. Asa member of the USAA board, Carney servedon the Finance and Audit Committee, as vicechair of the Personnel and MembershipCommittee, and chair of the Marketing andPrograms Committee. Chair, Marketing andPrograms Committee; member, Governanceand Executive committees7. Colonel Eileen M. Collins,USAF (Ret.)Member since 1978. Elected 2007.A former military instructor and test pilot,Collins was the first female pilot and firstfemale commander of a space shuttle. Shehas logged more than 6,700 hours in30 different types of aircraft and more than850 hours in space as a veteran of four spaceflights. She currently serves as chair ofthe Space Operations Committee on theNASA Advisory Council and is a consultantin the aerospace industry. Collins earneda bachelor’s degree in mathematics andeconomics from Syracuse University, amaster’s degree in operations research fromStanford University, and a master’s degreein space systems management from WebsterUniversity. As a member of the USAA board,Collins has served on the Finance and AuditCommittee and the Marketing and ProgramsCommittee. Member, Marketing andPrograms Committee; Chair, USAAAdvisory Panel8. Lt. General Stephen B. Croker,USAF (Ret.)Member since 1963. Elected 1996.Following retirement from active duty,Croker trained officers and their staffs fromthe 26 nations of NATO, as well as all U.S.military services, in joint warfare. Currently,Croker assists the local school superintendentand area small businesses with strategicplanning and assessment, and is an apprenticefurniture maker. During his Air Forcecareer, Croker served with the Air CombatCommand and the Strategic Air Command,and commanded the 8 th Air Force at18 USAA 2010 REPORT TO MEMBERS

9. 10. 11. 12.13. 14. 15. 16.Barksdale Air Force Base, Louisiana. Heserved in the Office of the Chairman of theJoint Chiefs of Staff and was the militaryassistant to the president’s special emissaryon POW and MIA affairs. He was a seniormentor at U.S. Joint Forces Command,responsible for developing Joint Task Forcecommanders and staffs. For the U.S. AirForce’s Operational Command TrainingProgram, he mentored Joint Force AirComponent commanders and senior officersassigned to air operations centers. Crokerheaded NATO’s senior mentor program andhas also mentored with the U.S. Army BattleCommand Training Program, as well as withofficers at Air Mobility Command’s WarfareCenter, Joint Forces Staff College, AirUniversity and the Marine Corps University.A U.S. Air Force Academy graduate, Crokerearned a master’s degree in internationalrelations from Georgetown University anda master’s degree in business administrationfrom Golden Gate University. As a memberof the USAA board, Croker served on thePersonnel and Membership Committee andthe Finance and Audit Committee. Member,Finance and Audit Committee9. Admiral Thomas B. Fargo,USN (Ret.)Member since 1970. Elected 2006.Fargo, former commander of the U.S. PacificCommand, joined the private sector in 2005.He currently serves on the boards of directorsof Northrop Grumman and Hawaiian ElectricIndustries, among other companies andnonprofits. His 35-year Naval career includedsix assignments in Washington, D.C., andfive commands in the Pacific, Indian Oceanand Middle East. He was the 20 th officerto hold the position of Commander, U.S.Pacific Command, and also served as the29 th Commander in Chief of the U.S. PacificFleet. His service as a leader in the Pacificwas preceded by his command of the U.S.Fifth Fleet and Naval Forces of the CentralCommand during two years of Iraqi contingencyoperations. As the senior U.S. militarycommander in East Asia and the Pacific,he led the largest unified command whiledirecting the joint operations of the Army,Navy, Marine Corps and Air Force. He wasresponsible to the Secretary of Defense, andwas the U.S. military representative forcollective defense arrangements in the Pacific.Fargo earned a bachelor of science degreefrom the U.S. Naval Academy and has additionalbusiness and related training fromHarvard University and Stanford University.As a member of the USAA board, Fargoserved on the Finance and Audit Committee,and as a member and vice chair of theCompensation and Workforce Committee.Vice Chair, Compensation and WorkforceCommittee; Executive Committee10. Maj. General Tracy L. Garrett,USMCRMember since 1987. Elected 2010.Garrett is currently commanding generalof the 4 th Marine Logistics Group, MarineForces Reserve, United States Marine Corps.During her distinguished career she hasserved as commander of both Marine ForcesEurope and Marine Forces Africa and asInspector General of the Marine Corps, thefirst woman to hold that top post. She hasserved on the Secretary of the Navy’s MarineCorps Reserve Policy Board. Garrett is agraduate of the Reserve Amphibious WarfareCourse, Reserve Command and Staff Course,Reserve Intelligence Officers Course andthe Advanced Logistics Officers Course.She received her bachelor’s degree in Englishfrom the University of Washington andattended the Naval War College, Newport,Rhode Island, receiving her master’s degreein national security and strategic studies.Member, Marketing and Programs Committee11. Captain Frederick M. Hamilton,USCG (Ret.)Member since 1965. Elected 1998.Hamilton was a recognized leader in thetelecommunications infrastructure industryand played a major role in shaping that industry’snew competitive market. He was formerlya vice president of network construction andmaintenance for Tyco Telecommunicationsin Morristown, New Jersey. The companydesigned, manufactured and installed, as wellas owned and operated, fiber optic telecommunicationssubmarine cable systems.Hamilton has more than 30 years’ experienceas an executive, manager and technicalprofessional. He serves on the board ofForward Industries. During almost 27 yearsof military service, Hamilton held keycommand and staff positions in the U.S.Coast Guard. An honors graduate of theU.S. Coast Guard Academy, Hamilton holdsa master’s degree in naval architecture andmarine engineering and a master’s degree inmechanical engineering from MassachusettsInstitute of Technology (MIT). He also earneda master’s degree in management from theMIT Sloan School of Management. As amember of the USAA board, Hamilton hasat various times served on the Personnel andMembership Committee and the Financeand Audit Committee. Member, Finance andAudit Committee; Vice Chair, USAAAdvisory Panel12. General Lester L. Lyles,USAF (Ret.)Member since 1968. Elected 2004.Lyles is a director of General DynamicsCorp., KBR Corp., Dayton Power and Lightand Precision Castparts Corp. He is amember of the NASA Advisory Council andthe President’s Intelligence Advisory Board.During his 35-year military career, thisdistinguished graduate of the Air ForceROTC program served as commander of theAir Force Materiel Command, Vice Chiefof Staff of the U.S. Air Force, director of theBallistic Missile Defense Organization andcommander of the Space and Missile SystemsCenter. His awards include the DefenseDistinguished Service Medal, DistinguishedService Medal, Defense Superior ServiceMedal and Legion of Merit. Lyles received abachelor’s degree in mechanical engineeringfrom Howard University. He received amaster’s degree in mechanical/nuclearengineering, as well as an honorary doctorof laws, from New Mexico State University.As a member of the USAA board, Lyles servedon the Finance and Audit Committee, asvice chair of the Marketing and ProgramsCommittee, as a member of the Compensationand Workforce Committee, and as vicechairman of the board. Vice Chairman of theBoard; Vice Chair, Governance and Executivecommittees; member, Compensation andWorkforce Committee13. General Michael E. Ryan,USAF (Ret.)Member since 1964. Elected 2002.Ryan was the 16 th Chief of Staff of theU.S. Air Force, responsible for organizing,training and equipping a force of more than700,000 active duty, reserve and civilianmembers. He is now the president of theconsulting firm Ryan Associates, focusedon national defense. He is chairman of theboards of CAE USA and SELEX Galileo Inc.and is a director on several other boards.During his Air Force career, he flew morethan 150 combat missions and commandedat all levels, from squadron through majorcommand. As commander of the 16 th AirForce and Allied Air Forces Southern Europein Italy, he directed NATO air combatoperations in Bosnia and Herzegovina, whichdirectly contributed to the Dayton PeaceAccords. He also served in staff assignmentsat the major command level, HeadquartersU.S. Air Force, and the Joint Staff. Beforeassuming his position as chief of staff, Ryanwas commander of U.S. Air Forces in Europeand commander, Allied Air Forces CentralEurope. A graduate of the U.S. Air ForceAcademy, Ryan earned a master’s degreein business administration from AuburnUniversity and completed the NationalSecurity Program at Harvard University.As a member of the USAA board, Ryanhas at various times served on the Financeand Audit Committee, the Personnel andMembership Committee, the Compensationand Benefits Committee, and as the vicechair of the Finance and Audit Committee.Vice chair, Finance and Audit Committee14. Rear Admiral Joseph C.Strasser Sr., USN (Ret.)Member since 1964. Elected 1998.Strasser is the former executive director of theNaval War College Foundation in Newport,Rhode Island, and currently serves as atrustee. He is the former dean of PennsylvaniaState University’s Commonwealth College.Strasser had a long and successful 32-yearcareer in the U.S. Navy, culminating in hisselection for rear admiral. He commandedthe U.S.S. O’Callahan, Destroyer Squadron35, Cruiser-Destroyer Group 3 and theU.S.S. Enterprise Carrier Battle Group.He also served as executive assistant to theChairman of the Joint Chiefs of Staff and aspresident of the Naval War College. A U.S.Naval Academy graduate, Strasser earnedmaster’s degrees in international relationsand international law and diplomacy and adoctorate in political science, all from TuftsUniversity. As a member of the USAA board,Strasser served as a member of the Personneland Membership Committee and has atvarious times served on the Finance andAudit Committee as a member, vice chairand chair. Chair, Finance and AuditCommittee; member, Governance andExecutive committees15. Lt. General Daniel W.Christman, USA (Ret.)Member since 1965. Elected 1995.Retired 2010.Christman served as the senior vice president,international affairs, for the U.S. Chamber ofCommerce and is currently a senior counselorto the Chamber’s president and CEO. He ison the board of Entegris Corp, Teradyne Inc.,and several nonprofits. During his 36-yearmilitary career, Christman served as assistantto the Chairman of the Joint Chiefs of Staff,U.S. representative to the North AtlanticTreaty Organization’s Military Committeeand member of the National Security Councilstaff in the Office of the President. As a combatveteran of Southeast Asia, he commandeda company of the 101 st Airborne Division.During the Gulf War in 1991, Christmanheaded a strategic planning group that advisedthe Army’s Chief of Staff on war prosecutionpolicies. He also served as Superintendentof the U.S. Military Academy at West Point.During his stewardship, Christmanlaunched the first-ever capital campaign forWest Point — a $150 million initiative thatwas key to rebuilding the infrastructure andleadership development programs. He graduatedfirst in his class from the U.S. MilitaryAcademy, and holds master’s degrees in publicaffairs and civil engineering from PrincetonUniversity and a juris doctorate degree fromGeorge Washington University. During histenure as a USAA director, Christman servedas a member of the Marketing and Programscommittee and as vice chair of the Financeand Audit and the Personnel and Membershipcommittees. His leadership and experiencehave directly contributed to the successof USAA.16. Colonel Leslie G. Denend,USAF (Ret.)Member since 1962. Elected 1996.Retired 2010.A director of Exponent Corp., McAfee Inc.and VeriFone Corporation, Denend is theformer president and chief executive officerof Network General Corporation. Duringhis 20-year Air Force career, he served onPresident Reagan’s economic policy staff,and flew more than 190 combat missions inSoutheast Asia. Denend had responsibilitiesfor the defense budget, space, the MiddleEast and intelligence matters for theChairman of the Joint Chiefs of Staff as theAir Force member of the Chairman’s StaffGroup. In the Carter administration,Denend shared responsibility for nuclearnonproliferation policy, human rights andrefugee matters, and the issues associatedwith conventional arms transfers as amember of the National Security Councilstaff. In 1979, he became the special assistantto the President’s National Security Advisor.In the Ford administration, Denend receiveda White House Fellowship, serving as executiveassistant to the director of the Councilon International Economic Policy. A distinguishedgraduate of the U.S. Air ForceAcademy, he holds a master’s degree inbusiness administration and a doctorate ineconomics, public policy and business fromStanford University. He was a Fulbrightscholar in economics at the University ofBonn. During his tenure as a USAA director,Denend served as chair of the Finance andAudit Committee and vice chairman of theBoard of Directors. He also served on thePersonnel and Membership and Marketingand Programs committees. Throughout histenure Denend demonstrated excellent leadershipduring a period of great change andgrowth for USAA.USAA 2010 REPORT TO MEMBERS 19

OUR 2010 EXECUTIVE COUNCILThe day-to-day operations of USAA’s companies and staff agencies are managedby USAA’s Executive Council.(LEFT TO RIGHT, TOP TO BOTTOM)Josue Robles Jr.President andChief Executive OfficerSteven BennettExecutive Vice President,General Counsel andCorporate SecretaryKevin BergnerExecutive Vice President,Chief Administrative OfficerDavid BohnePresident, USAA FederalSavings BankChristopher ClausPresident, USAA FinancialAdvice & Solutions GroupElizabeth ConklynExecutive Vice President,Special ProjectsShon ManascoExecutive Vice President,People ServicesKristi MatusExecutive Vice President,Chief Financial OfficerStuart ParkerPresident,USAA Property & CasualtyInsurance GroupWayne PeacockExecutive Vice President,Member ExperienceStephen SpeakesExecutive Vice President,Enterprise Strategy &Planning GroupWendi StrongExecutive Vice President,Corporate CommunicationsOUR 2010 ADVISORY PANELUSAA’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 CollinsChair, USAA Advisory PanelCol., USAF (Ret.)San Antonio, TexasMember since 1978Fred HamiltonVice Chair,USAA Advisory PanelCapt., USCG (Ret.)Lewisberry, Pa.Member since 1965Deborah BinderDaughter of an Army officerEdmonds, Wash.Member since 1984Christina BrimsWidow of an Air Force officerColorado Springs, Colo.Member since 1970Joey DuPuisChief Master Sgt.,USAFR (Ret.)San Antonio, TexasMember since 1998Paul GradyChief Master Sgt.,USAFSchertz, TexasMember since 1998Nicole HartWidow of an Army sergeantSanta Barbara, Calif.Member since 2006April HolmesDaughter of a Navy officerLakeway, TexasMember since 1984Ed KringerCol., USAF (Ret.)Burke, Va.Member since 1974Jeff ShumateCommand Master Chief,USCGKey West, Fla.Member since 2000Cynthia ObenlandDaughter of anAir Force officerAnnapolis, Md.Member since 1988Martin WellsSgt. Maj., USA (Ret.)Fort Jackson, S.C.Member since 1982Malcolm WilkersonCapt., USAColorado Springs, Colo.Member since 2000Amy VigeantLt., USNR (Separated)Coronado, Calif.Member since 199322 USAA 2010 REPORT TO MEMBERS

HELP USAA GO GREENThis report is environmentally friendly (thanks to recycled paper andsoy-based inks) and cost-effective because of the easy-to-manufactureand easy-to-mail tabloid format. In addition, in 2011 we have begunprinting all USAA marketing materials on paper containing a minimumof 10% post-consumer recycled fiber. But if you’d like to help USAAgo green, join the more than 500,000 members who have opted out ofreceiving a printed report and instead receive it electronically.TO DO SO, LOG ON TO USAA.COMAND GO TO“My Documents,” then select “Preferences.”Scroll down to “General Documents” and select“Annual Report to Members” to receive this reportelectronically. You can also choose “Deliver allonline” to receive all of your USAA documentselectronically.ADDITIONAL INFORMATIONUSAA HeadquartersUSAA9800 Fredericksburg Rd.San Antonio, TX 78288(800) 531-8646(annual report inquiries only)Independent PublicAccountantsErnst & Young LLPSan Antonio, TexasUSAA is not a publicly heldcompany and does not filean SEC form 10-K.Printing: NahanDesign: VSA Partners Inc.Annual Meeting ofUSAA MembersSaturday, November 19, 20119 a.m. (Central Standard Time)Four Seasons Resort and Club,Dallas at Las Colinas4150 N. MacArthur Blvd.Irving, TX 75038The USAA EducationalFoundationUSAA9800 Fredericksburg Rd.San Antonio, TX 78288www.usaaedfoundation.orgPrincipal Photography: Ben BakerREGULATORY DISCLOSURES“USAA” and “association” mean United Services Automobile Association and itsaffiliates. Property and casualty insurance provided by United Services AutomobileAssociation, USAA Casualty Insurance Company, USAA General Indemnity Company,Garrison Property and Casualty Insurance Company, USAA County Mutual InsuranceCompany, USAA Texas Lloyds Company, San Antonio, TX, and is available only topersons eligible for P&C group membership. To find out if you are eligible, contactUSAA. Underwriting restrictions apply. Investments provided by USAA InvestmentManagement Company and USAA Financial Advisors Inc., both registered brokerdealers. USAA Brokerage Services is a division of USAA Financial Advisors Inc., aregistered broker dealer. Financial planning services and financial advice providedby USAA Financial Planning Services Insurance Agency, Inc. USAA FinancialPlanning Services Insurance Agency, Inc. (known as USAA Financial InsuranceCompany in California, Lic. #0E36312), a registered investment adviser and insuranceagency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registeredbroker dealer. USAA Wealth Management is a service of USAA. Life insuranceand annuities provided by USAA Life Insurance Company, San Antonio, TX and inNew York by USAA Life Insurance Company of New York, Highland Falls, NY. ManagedAccounts is a service of USAA Investment Management Company (USAA), a registeredinvestment adviser and broker dealer. USAA Brokerage Services is a division ofUSAA Financial Advisors, Inc., a registered broker dealer. USAA Wealth Managementis a service of USAA. USAA Strategic Fund Adviser ® and USAA Global OpportunitiesPortfolio is a service of and USAA Private Investment Management ® is a division ofUSAA Investment Management Company, a registered investment adviser andbroker dealer. USAA Life General Agency, Inc. (LGA) (known in CA and NY as USAAHealth and Life Insurance Agency) acts as an agent for select insurance companiesto provide additional products to USAA members. LGA representatives are salariedand receive no commissions. Trust Services offered by USAA Federal Savings Bank.Credit Cards provided by USAA Savings Bank, other bank products by USAA FederalSavings Bank, both Member FDIC.Each company has sole financial responsibility for its own products.INFORMATION ON USAAWhat does USAA mean? USAA means United Services Automobile Association andits family of other companies that provide insurance, banking and investmentproducts. Who is a USAA member? The term “member” generally refers to currentUSAA customers who are eligible for property and casualty insurance, and theirspouses 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 propertyinsurance products? These products are available to current and former militarymembers and their former dependents who meet certain membership eligibilitycriteria. Membership eligibility is subject to change. Adult children of USAAmembers are eligible to purchase USAA property and casualty insurance if theireligible parent purchased USAA property and casualty insurance. Eligible memberswith auto and property policies issued by United Services Automobile Associationhave ownership rights in USAA. Ownership rights, including Subscriber’s Accounts,do not apply to policies issued by other insurers within the USAA family of companiesor to business assigned/accepted because of state insurance plans. Refer to yourinsurance policy to determine which company you are insured with. Contact us tofind out about the benefits of your membership.OTHERInvestments/Insurance: Not FDIC Insured • Not Bank Issued, Guaranteedor Underwritten • May Lose ValueThe content is not affiliated with or endorsed, implied or otherwise, by theUnited States Department of Defense or any government agency.USAA and other names, logos, designs, titles, words or phrases in this publicationmay constitute trademarks, service marks, or trade names of USAA or otherentities and may be registered in certain jurisdictions. Use of any such othernames, logos, designs, titles, words or phrases does not imply affiliation,endorsement, or approval.PAGE 1: Auto Circle is a program provided by United Services AutomobileAssociation. Availability, eligibility restrictions, and fees may apply to certainbanking, insurance or ancillary products. USAA Car Buying Service and LowestPrice Guarantee provided and operated by TrueCar, Inc. on behalf of USAA. Eachcompany has sole liability for its own products. USAA does not broker, sell, orlease motor vehicles.To get the Lowest Price Guarantee, you must choose a dealer with a Lowest PriceGuarantee 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 PriceCertified Dealer or any USAA Certified Dealer on the USAA Car Buying Service. Visitusaa.com for complete guarantee terms and conditions. Guarantee is not availablein Texas.PAGE 2: Investing in securities products involves risk, including possibleloss of principal.There may be tax consequences associated with the transfer of assets. Indirecttransfers may be subject to taxation and penalties. Consult with your own advisorsregarding 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 Accountallocations or distributions, auto insurance dividends, bank rebates or rewards.PAGE 9: As USAA is an insurance provider open only to U.S. military personnel andtheir families, it is not included in J.D. Power and Associates rankings.PAGE 10: Average auto insurance premiums/savings based on countrywidesurvey of new customers from 10/1/09 through 9/30/10, who reportedtheir prior insurers’ premiums when they switched to USAA. Savings do notapply 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 upto $15 in other banks’ ATM usage fees each month. A 1% foreign transaction feeapplies to withdrawals outside the U.S.2USAA Money Manager is not an investment advisory service of USAA.3To receive the special active-duty credit card benefits, you must tell us whenyou enter active duty, start a deployment/PCS, or complete service in a qualifiedmilitary campaign. SCRA benefits will begin upon our receipt of notice of youractive duty and will apply only to balances made before commencement of activeduty. For other benefits, we must receive notice within 90 days after the start ofdeployment or PCS, or within six months after completion of a military campaign.We reserve the right to require documentation. A qualified military campaign is anywar or military conflict in which the President of the United States of Americaissues an Executive Order establishing a campaign medal.4There is no guarantee or promise of future bank rebates or rewards.5MSRP savings based on the monthly average of actual new vehicle member pricescompared to MSRP for the time period 06/01/2010 to 11/30/2010. The savings calculationdoes not include the savings from the USAA exclusive manufacturer incentives.6MoversAdvantage ® offered by USAA Relocation Services, Inc., a licensed realestate broker and subsidiary of USAA Federal Savings Bank. Not available foremployer-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 saleprice of home sold/purchased. You must enroll in program before contactingparticipating real estate firm and be represented by that firm at closing to qualifyfor bonus.Obtaining a mortgage from USAA Federal Savings Bank is optional, notrequired to utilize the MoversAdvantage ® Program, and can be acquiredfrom other sources.7Easy 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. Highdollar 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 forcomplete terms and conditions.PAGE 15: Highline Banking Data ServicesTop 15 percent of peer group as of 3 rd quarter 2010.IDC Financial Publishing, Inc.105 consecutive Superior ratings as of 3 rd quarter 2010.PAGE 17: The USAA Foundation and The USAA Educational Foundation (the“Foundations”) are nonprofit organizations sponsored by USAA. The Foundationsdo not endorse or promote any commercial supplier, product or service.Volunteer value to the community calculated using most recent data fromIndependent Sector, a leadership forum for charities, foundations and corporategiving programs.©2011 USAA. All rights reserved.USAA 2010 REPORT TO MEMBERS 21

THANK YOU and loyalty in 2010.for your membershipWe are honored to serve active-duty military members,veterans who have honorably served and their families throughevery stage of their lives. USAA invites you to take advantageof these exclusive online offers on some of our most innovativeproducts and services.Hurry, these exclusive online offers endJune 20, 2011. Take advantage of them today.Log on to usaa.com and searchkeyword: ThankYou2010Get anApple ® iPad ®$100 BONUSwhen you open a new USAAChecking Account with DirectDeposit and debit card use.WHEN YOU CLOSE ON THESALE OF YOUR HOME WITHMOVERSADVANTAGE, ® A PARTOF USAA’S HOME CIRCLE. $50BONUSwhen youstart usingUSAA WEBBILLPAY ®and make fivepayments.$250CREDITGet anadditional0.25 %on top of our best 2- or 3-year CDrates with a new USAA Bank CD.with a newSTRATEGIC FUND ADVISER ®- or -GLOBAL OPPORTUNITIESPORTFOLIO ACCOUNT.Investments/Insurance: Not FDIC Insured • Not Bank Issued, Guaranteed orUnderwritten • May Lose ValueUSAA means United Services Automobile Association and its insurance, banking,investment and other companies. Banks Member FDIC. Investments provided by USAAInvestment Management Company and USAA Financial Advisors Inc., both registeredbroker dealers. USAA Brokerage Services is a division of USAA Financial Advisors,Inc., a registered broker dealer. USAA Strategic Fund Adviser ® and USAA GlobalOpportunities Portfolio is a service of and USAA Private Investment Management ®is a division of USAA Investment Management Company, a registered investmentadviser 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 theseoffers except the USAA Strategic Fund Adviser ® (SFA) and USAA Global OpportunitiesPortfolio (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 throughthe USAA Thank You page at www.usaa.com/thankyou2010. Not all offers may bepresented to all members based on products member currently has with USAA. Purchaseof a non property and casualty insurance product does not establish eligibility for, ormembership in, USAA property and casualty insurance companies. For additional terms,restrictions and legal information, go to www.usaa.com/thankyou2010. Receipt ofoffers 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 Accountwith Direct Deposit and debit card use. Available only during the Offer Period.Offer good for new USAA Free Checking accounts only. A minimum $25 openingdeposit is required. The Annual Percentage Yield as of February 15, 2011, on balancesof $1,000 or more is 0.05% and may change daily. To be eligible for offer, you cannothave an existing USAA checking account prior to March 21, 2011. Access and acceptoffer at www.usaa.com/thankyou2010. To receive the $100 bonus, you must: 1) open anew USAA free checking account; and 2) enroll in direct deposit with USAA Bank; and3) make three USAA debit card transactions each month from account open date bySeptember 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 OfferPeriod. Checking accounts open prior to and after Offer Period are not eligible forthe bonus. The $100 bonus will be deposited into the account no later than September30, 2011. No other forms of distribution of the bonus will be allowed. Receipt of thisoffer may constitute a taxable event. Additional restrictions and conditions mayapply. Valid for U.S. citizens or permanent residents. Void where prohibited. Offermay 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 CDthrough USAA Bank. Penalty for early withdrawal may reduce earnings. To beeligible for bonus rate, account holder must open a new 2- or 3-year CD throughUSAA Bank during the Offer Period. Bank CDs purchased prior to or after the OfferPeriod will not be eligible for bonus rate. Offer not valid on IRA CDs. Access andaccept offer at www.usaa.com/thankyou2010.Web BillPay Offer: Available only during Offer Period. Offer good only for existingUSAA Free Checking accounts for account holders who have not used Web BillPaywithin 120 days prior to March 21, 2011. To receive $50, account holder must startusing USAA Web BillPay during the Offer Period and make five or more paymentsto non-USAA payees within the Offer Period, with payment processing no later thanJuly 20, 2011. To be eligible for the bonus, you must access, accept offer, and obtainproducts through the USAA Thank You page at www.usaa.com/thankyou2010. WebBillPay 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 mustremain open and the $50 bonus will be deposited no later than July 30, 2011. Receiptof this offer may constitute a taxable event. Additional restrictions and conditionsmay 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 fora new USAA Strategic Fund Adviser ® (SFA) or USAA Global Opportunities Portfolio(GOP) account opened during the Offer Period with a minimum Market Value initialdeposit of $50,000 and must be funded within 75 days of account open date. To accessand accept offer, you must obtain products through the USAA Thank You page atwww.usaa.com/thankyou2010. To qualify for the $250 fee credit, account must remainopen and funded above the initial deposit amount (excluding market fluctuation) untilDecember 20, 2011. Account will be credited the week of December 20, 2011. Any accountclosing before December 20, 2011, will forfeit the credit. The credit will be depositedto account for fees assessed and should not be considered a contribution. Accountsopen prior to or after the Offer Period are not eligible to receive credit. No otherforms of distribution of the $250 will be allowed.Investing in securities products involves risk, including possible lossof principal.An investor will indirectly bear fees and expenses charged by the underlying fundsin addition to direct fees and expenses charged by the portfolio as applicable.iPad/MoversAdvantage Offer: Limited time offer. Offer excluded for members sellingproperty located in any of the eleven excluded states due to state laws. The excludedstates are as follows: Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, NorthCarolina, New Jersey, Oklahoma, Oregon, and Tennessee. You must: 1) be a U.S. citizenor permanent resident; 2) enroll in the MoversAdvantage ® “selling” service duringthe 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 duringOffer Period. Additional property sales during the Offer Period are not eligible forthis Offer. Registration for the MoversAdvantage “selling” service prior to or afterOffer 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 OfferTerms and confirmation of the sale by USAA Relocation Services, Inc., USAA RelocationServices, 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 estatebroker and subsidiary of USAA Federal Savings Bank. Not available for employersponsoredrelocations, or for transactions in Iowa or outside the U.S. This is not asolicitation if you are already represented by a real estate broker.Obtaining a mortgage from USAA Bank is optional, not required to utilize theMoversAdvantage ® Program, and can be acquired from other sources.Subject to credit and property approval. Availability restrictions apply. Credit cardsprovided 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 notaffiliated with Apple, Inc. See details at www.usaa.com/thankyou2010.Copyright ©2011 USAA. All rights reserved. 124786-0311