We Know What It Means To Serve - USAA

One million members benefitedfrom free financial advicefrom our expert financial advisorsduring 2007.Financial advice is central to the association’smission of helping members achieve financialsecurity, and — beyond our free advice —thousands of members took advantage of ourcomprehensive fee-based plans as well.Nothing is more important than being therefor our members when disaster strikes, andUSAA employees responded immediately whenmore than 3,700 members were affected bythe Southern California wildfires last summer.Many members who experienced total losseshad their claims paid and closed within days ofthe fires being extinguished.Financial StrengthFinancially, the association ended the yearstronger than ever. Standard & Poor’s, A.M.Best and Moody’s independent rating agenciesagain awarded USAA’s Property & CasualtyInsurance Group the highest ratings for financialstrength, making USAA one of a small,elite group of companies to retain the highestpossible ratings.In 2007, owned and managed assets grew10.3 percent to more than $125 billion, and networth grew by 9.5 percent to $14.4 billion.Strong net worth ensures USAA can pay yourclaims now and in the future, meet regulatoryand rating agency requirements, and fundcurrent and future operations. It also helps theassociation protect against uncontrollableforces such as interest rates, the stock marketand catastrophes.Our financial strength, expense control ande∞ciency efforts enabled the association tothrive despite the ongoing credit crisis, increasingnon-catastrophe losses, and the seventh-largestcatastrophe in USAA’s history — the SouthernCalifornia wildfires.As a result, we were able to returnmore than $1.5 billion to you in theform of distributions, dividends,rebates, rewards, and auto andproperty insurance rate reductions.One of the benefits of USAAmembership is being partof a community whose collectivebehavior can help lower prices.When you drive safely and maintain yourhome, it helps keep costs down for everyone.Another way you can help is to use usaa.COMfor routine transactions and receive yourdocuments online rather than through themail, a move that benefits the associationand the environment.We Know What It Means to ServeAt USAA, we know what it means to servethe military community. It is our pride andprivilege. We are constantly mindful ofthe sacrifices our military personnel andtheir families make every day to protect ourfreedoms. We are grateful for and honoredby their service.Thank you for trusting USAA. Thank you forallowing us to serve you.Sincerely,membership (in millions)A record 6.4 million memberstrust USAA. More than halfof them served in the military.24% Enlisted29% Officers47%Children andGrandchildren(membership composition as of 2007)Josue (Joe) Robles, Jr.Maj. General, USA (Ret.)President and CEO20 USAA 2007 REPORT TO MEMBERSUSAA 2007 REPORT TO MEMBERS 21