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. USAA Limited is domiciled in London, United Kingdom; all other 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, 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, making it strategically integral to the organization.

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, which support the company’s history of very favorable consolidated operating results. Focused on the support of its 13.5 million members, USAA Group ranks in the top 10 writers of P/C 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 quarters supported by rate increases and other actions in underwriting and claims to manage volatility, despite the impacts of significant catastrophe activity and increased non-catastrophe loss trends in the personal auto and homeowners lines of business on its results. USAA 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. 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. Furthermore, the organization maintains favorable financial flexibility through access to Federal Home Loan Bank borrowings at the 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 profitability in the most recent five-year period supporting capitalization.

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
• USAA County Mutual Insurance Company
• USAA Life Insurance Company
• USAA Life Insurance Company of New York

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 Long-Term IRs have been affirmed with stable outlooks:

USAA Capital Corporation—

-- “aaa” (Exceptional) on $500 million 3.375% senior unsecured medium-term notes, due 2025

-- “aaa” (Exceptional) on $400 million 2.125% senior unsecured medium-term notes, due 2030

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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