OLDWICK, NJ–(BUSINESS WIRE)–AM Best Affirmed Financial Strength Rating (FSR) of A++ (Superior) and Issuer Long-Term Credit Ratings (Long-Term ICR) of “aaa” (Exceptional) from United Services Automobile Association (USAA) and its property/accident (P/C) and life/health (L/H). At the same time, AM Best affirmed the long-term ICR and long-term issue credit rating (long-term IR) of “aaa” (outstanding) on ​​the medium-term note program and the medium-term notes USAA Capital Corporation (USAA CAPCO) senior unsecured. The outlook for these Credit Ratings (ratings) is stable. In addition, AM Best confirmed the short-term issue credit rating (short-term IR) of AMB-1+ (Strongest) on USAA CAPCO’s commercial paper program. USAA Limited is domiciled in London, United Kingdom; all other companies are domiciled in San Antonio, TX, unless otherwise noted. (See below for a detailed list of companies and ratings.)

The ratings of USAA and its P/C affiliates, collectively referred to as USAA Group, reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its very good operational performance, its very favorable commercial profile and its appropriate Enterprise Risk Management (ERM).

USAA offers a diversified portfolio of products through its P/C and L/H insurers, as well as other financial services through USAA Federal Savings Bank, which support favorable consolidated operating results. Focused on supporting its 13 million members, USAA Group ranks among the top 10 insurers of P/C products in the United States, based on premiums written, including the top five for auto and home insurance individual.

USAA Group has reported favorable earnings over the past five-year period, despite significant disastrous activity, in part due to initiatives implemented to combat rising losses in the personal auto sector. Additionally, the organization‘s focus on technology and direct-to-consumer marketing has resulted in spend ratios well below the composite average for AM Best’s personal lines. Risk-adjusted capitalization is valued at the highest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and supported by a conservative investment portfolio. In addition, the organization maintains favorable financial flexibility through access to Federal Home Loan Bank borrowings from P/C and L/H insurance companies, and a medium-term note program and of commercial paper held at USAA CAPCO.

USAA Life Insurance Company Ratings and its subsidiary, USAA Life Insurance Company of New York (Highland Falls, NY), together referred to as USAA Life Group, reflect the strength of its balance sheet, which AM Best rates as very strong, as well as its strong operating performance, favorable business profile and an appropriate ERM. The ratings also reflect USAA Life Group’s strategic role within the USAA organization, providing individual life insurance, annuity, accident and health products to USAA members and the market at large. Group life has maintained a long-term trend in direct premium growth, with profitability over the recent five-year period supporting funding.

FSR of A++ (superior) and long-term KPIs of “aaa” (exceptional) were confirmed with a stable outlook for United Services Automobile Association and its following P/C and L/H subsidiaries:

• USAA Property and Casualty Insurance Company

• USAA General Compensation Society

• 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 off-the-shelf record has been confirmed with a stable outlook:

USAA Capital Corporation—

— “aaa” (exceptional) on the senior unsecured medium term note program

The following long-term IRs have been confirmed with a stable outlook:

USAA Capital Corporation—

— “aaa” (exceptional) on $500 million 0.5% senior unsecured medium term notes, due 2024

— “aaa” (exceptional) on $400 million 1.5% senior unsecured medium term notes, due 2023

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

The following short-term IR has been confirmed:

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.