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