[Federalist] For almost my entire military career and beyond, USAA, the San Antonio-based insurance and financial services giant that built its reputation serving military members and their families, provided my family with auto and home insurance, and even a credit card.
But as I wrote last year, I left USAA after a long slide in customer service crystalized when I heard of USAA’s debanking of conservative lawyer John Eastman. And the hard lessons for USAA continue.
USAA’s troubles hit a new low when S&P Global Ratings downgraded its financial strength rating from AA+ to AA, following Moody’s decision to drop USAA’s rating from Aaa to Aa1 on May 19. The culprit? Persistent issues with USAA Federal Savings Bank, which has attracted regulatory scrutiny and suffered financial losses.
S&P pointed to "new or continuing violations of law, rule, or regulation" flagged by the Office of the Comptroller of the Currency (OCC) in December 2024, noting that the bank’s compliance failures have eroded USAA’s overall earnings diversity. Up until 2020, the bank contributed roughly $1 billion annually to USAA’s pretax income, but since then it has posted average annual losses of $236 million. These financial stumbles, combined with a weakened resilience compared to peers, led to the downgrade.
Once a low-cost haven for service members, veterans, and their families, USAA’s troubles suggest a company veering off course, prioritizing ideological agendas over its foundational mission.
While USAA insists its financial strength remains "outstanding," the downgrades tell a different story. The company’s banking arm, once a steady contributor, is now a liability, dragging down its reputation and financial stability. Instead of addressing these core issues, USAA has yet to correct its path that alienates its conservative-leaning customer base — a base that, according to a 2019 Pew Research poll, leans 59 percent Republican among veterans.
at least its higher than the yelp rating of the Dallas Cowboys which is 1 star and also is their team symbol
Posted by: lord garth ||
06/10/2025 16:45 Comments ||
Top||
#7
Their insurance branch expanded recklessly. They were much too aggressive moving into Medicare co-insurance; approving all applications regardless of pre-exsisting conditions! I watched for years as they continued to do this. It was nuts.
Posted by: Difar Dave ||
06/10/2025 18:15 Comments ||
Top||
A multi-volume chronology and reference guide set detailing three years of the Mexican Drug War between 2010 and 2012.
Rantburg.com and borderlandbeat.com correspondent and author Chris Covert presents his first non-fiction work detailing
the drug and gang related violence in Mexico.
Chris gives us Mexican press dispatches of drug and gang war violence
over three years, presented in a multi volume set intended to chronicle the death, violence and mayhem which has
dominated Mexico for six years.
Rantburg was assembled from recycled algorithms in the United States of America. No
trees were destroyed in the production of this weblog. We did hurt some, though. Sorry.
