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