We Know What It Means To Serve - USAA

2007 AWARDSLETTER FROM THE CHAIRMANUSAA seeks to balance the needs of members, the well-being of employees, and the association’sfinancial strength on a foundation of operational excellence. In 2007, the recognition USAA receivedfrom industry and media experts reflected that balance.MEMBERSERVICEFINANCIALSTRENGTHEMPLOYEEWELL-BEINGJ.D. POWER AND ASSOCIATESUSAA was recognized for its performance in the Auto andHomeowner Insurance Studies, as well as the Primary MortgageServicer Study.BusinessWeekUSAA ranked No. 1 on the publication’s list of“Customer Service Champs.”FORTUNEFortune 500 Largest U.S. Corporations180th in Revenue, 84th in Net Worth, 70th in AssetsWARD GROUPUSAA Property & Casualty Insurance Group and USAA LifeInsurance Company named to the Ward’s 50, which benchmarksthe top-performing insurance companies.CALIFORNIA TASK FORCE ON YOUTH AND WORKPLACE WELLNESSCalifornia Fit Business AwardGold LevelG.I. JOBSTop 50 Military‐Friendly EmployersLATINA STYLE50 Best Employers for Hispanic WomenCOMPUTERWORLD100 Best Places to Work in ITThe year 2007 was one of USAA’s mostsuccessful — and one of change.In December, Chairman and Chief Executive O∞cerRobert G. (Bob) Davis retired, after leading USAA througha period of remarkable growth and accomplishments,many of which you can read about in this report.In a unanimous vote, the USAA Board of Directorssubsequently elected me as Chairman of the Board,and retired Army Maj. General Josue (Joe) Robles, Jr.,as President and CEO.During his seven-year tenure as Chairman and CEO,Bob transformed the association into a highly competitivefinancial services company. Under Bob’s leadership, wealso made significant strides in our Internet strategy,while intensifying our focus on member service andmaintaining the best customer loyalty in the industry.As a member of the board since 1996, I have personallywitnessed this transformation. USAA has becomea high-performance organization — financially andoperationally stronger — and will continue on thatsuccessful path under Joe’s leadership.We chose Joe as our new CEO because of his dedicationto USAA, his commitment to its mission and his personalintegrity. I have known Joe for years, going back to ourservice together in the Army, where he rose through theranks from private to major general. Joe is an extraordinaryleader, having commanded troops in Desert Storm andlater commanding an Army division, The Big Red One.A member since 1967, Joe has been a part of USAA for40 years, including four years on the board and 14 yearsin management as chief administrative o∞cer, chieffinancial o∞cer and corporate treasurer.As vice chairman of the board and chairman of the financeand audit committee, I have worked closely with Joeand can assure you that we could not have selected a betterperson to lead this great organization.He is joined by two new directors who were elected tothe board at the 2007 Members’ Meeting: retired ArmyGeneral John P. Abizaid, a USAA member since 1973 whomost recently served as commander of the U.S. CentralCommand, overseeing military operations in a 27-countryregion; and retired Air Force Colonel Eileen M. Collins,a member since 1978, and the first female pilot and firstfemale commander of a space shuttle. Their backgroundsare stellar, and they have both served our country withdistinction.In addition, five directors were re-elected — retired ArmyLt. General Thomas P. Carney, retired Army Lt. GeneralDaniel W. Christman, retired Air Force Colonel Leslie G.Denend, retired Air Force Maj. General Marcelite J.Harris and retired Air Force General Lester L. Lyles —rounding out the association’s 18-member board.(For biographies on all of our USAA board members,please see pages 36–38.)I expect that USAA will continue to grow and change asthe environment and our members demand. Rest assured,however, that some things will never change: USAA’smission, its commitment to the U.S. military and its corevalues of service, loyalty, honesty and integrity.Sincerely,John H. MoelleringLt. General, USA (Ret.)Chairman14 USAA 2007 REPORT TO MEMBERSUSAA 2007 REPORT TO MEMBERS 15