AM Best Affirms Credit Ratings of United Services Automobile Association, Its Subsidiaries and USAA Capital Corporation

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aaa” (Exceptional) of United Services Automobile Association (USAA) and its property/casualty (P/C) and life/health (L/H) subsidiaries. Concurrently, AM Best has affirmed the Long-Term ICR and the Long-Term Issue Credit Rating (Long-Term IR) of “aaa” (Exceptional) on the medium-term note program and the senior unsecured medium-term notes of USAA Capital Corporation (USAA CAPCO). The outlook of these Credit Ratings (ratings) is stable. In addition, AM Best has affirmed the Short-Term Issue Credit Rating (Short-Term IR) of AMB-1+ (Strongest) on the commercial paper program of USAA CAPCO. All companies are domiciled in San Antonio, TX, unless otherwise specified. (See below for a detailed listing of the companies and ratings.)

The ratings of USAA and its P/C affiliates, together referred to as USAA Group, reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, very favorable business profile and appropriate enterprise risk management (ERM). The ratings also reflect the historical contribution that the P/C group has made to the USAA organization, positioning it as strategically integral.

USAA provides a diverse portfolio of products through its P/C and L/H insurers, as well as other financial services through USAA Federal Savings Bank (USAA Bank). Focused on the support of its 14.3 million members, USAA Group ranks in the top 10 writers of personal lines products in the United States, based on premiums written, including for private passenger auto and homeowners insurance.

USAA Group has reported improved operating performance in recent years, supported by rate increases and other actions taken in underwriting and claims to manage volatility. In 2025, the group’s results benefited from lower net catastrophe losses and favorable non-catastrophe loss trends in the personal auto and homeowners lines of business. USAA Group continues to implement underwriting initiatives to combat higher claims severity in these lines. Additionally, the organization’s focus on technology and direct-to-consumer marketing has resulted in expense ratios well below AM Best’s personal lines composite average. The strength of USAA Group is further supported through diversified product offerings and brand reputation, which contribute to very high level of membership retention. USAA Group’s risk-adjusted capitalization is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and supported by a conservative investment portfolio.

As of Dec. 31, 2025, USAA’s unadjusted debt-to-total capital ratio (excluding accumulated other comprehensive loss) measured 16.8% including Federal Home Loan Bank borrowings, as calculated by AM Best. Interest coverage improved in 2025, and is considered strong. USAA maintains a relatively conservative investment portfolio, which is highly diversified. Furthermore, the organization maintains favorable financial flexibility through access to Federal Home Loan Bank borrowings at the Bank, P/C and L/H insurance companies, and a medium-term notes program and commercial paper program held at USAA CAPCO.

The ratings of USAA Life Insurance Company and its subsidiary, USAA Life Insurance Company of New York (Highland Falls, NY), together referred to as USAA Life Group, reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate ERM. The ratings also reflect USAA Life Group’s strategic role within the USAA organization, offering individual life, annuities, and accident and health products to USAA’s members and the broader marketplace as well. The life group has sustained a long-term trend in direct premium growth, with continued profitability supporting capitalization. In addition, there is ongoing capital support from the parent company, with $300 million contributed from it in 2025, to support future growth.

The FSR of A++ (Superior) and the Long-Term ICRs of “aaa” (Exceptional) have been affirmed with stable outlooks for United Services Automobile Association and its following P/C and L/H subsidiaries:

• USAA Casualty Insurance Company
• USAA General Indemnity Company
• USAA Limited (United Kingdom)
• USAA County Mutual Insurance Company
• USAA Life Insurance Company
• USAA Life Insurance Company of New York

The following Long-Term IRs have been affirmed with stable outlooks:

USAA Capital Corporation—
-- “aaa” (Exceptional) on $500 million 5.25% senior unsecured medium-term notes, due 2027
-- “aaa” (Exceptional) on $500 million 4.375% senior unsecured medium-term notes, due 2028
-- “aaa” (Exceptional) on $400 million 2.125% senior unsecured medium-term notes, due 2030

The following indicative Long-Term IR under the universal shelf registration has been affirmed with a stable outlook:

USAA Capital Corporation—
-- “aaa” (Exceptional) on the senior unsecured medium-term note program

The following Short-Term IR has been affirmed:

USAA Capital Corporation—
— AMB-1+ (Strongest) on the commercial paper program

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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