A.M. Best Affirms Financial Strength and Debt Ratings of USAA Group.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of A++ (Superior) of United Services Automobile Association Automobile Association may refer to:
USAA Urban Superintendents Association of America USAA United States Achievement Academy USAA United States Arbitration Act of 1925 USAA United States Axemen's Association USAA United States Air-Table-Hockey Association Group) (San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , TX) and its subsidiaries. Concurrently, A.M. Best has affirmed the debt ratings of "aaa" on the medium-term note Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. program and AMB-1+ on the commercial paper program of USAA Capital Corporation (USAA) (San Antonio, TX). All ratings have a stable outlook. USAA Group maintains superior capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. through a high quality balance sheet, conservative operating philosophy and a well recognized franchise and distinct business profile. USAA Group maintains significant competitive advantages due to its low-cost expense structure, high customer retention and exceptional service capabilities. It has a clearly defined niche as a provider of financial products to military, ex-military personnel and their dependents. Furthermore, USAA benefits from operational efficiencies achieved from its direct business model, as well as the effective use of technology across the enterprise. A high degree of customer loyalty is derived from the excellent service capabilities, as well as the variety of financial products available from the USAA family of companies, which includes property/casualty insurance, life insurance, asset management, mutual funds and banking services that consist of loans and credit cards. With a significant penetration of USAA products per household, the likelihood of a customer seeking coverage elsewhere is greatly reduced. Modestly offsetting these positive factors is USAA Group's inherent exposure to frequent and severe weather-related events. A.M. Best notes that the company maintains a national spread of risk, although approximately 41% of its premium volume is derived from four catastrophe-prone states--Texas, California, Florida and Virginia. This was evidenced in 2004 as USAA Group incurred approximately $700 million in net losses from hurricanes Charley, Frances, Ivan and Jeanne. Despite the sizeable losses, its operating results were favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. and overall risk-adjusted capitalization remained superior. The rating of USAA Life Insurance Company (USAA Life) (Texas) and its subsidiary, USAA Life Insurance Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (New York), is based on USAA Life's highly focused and well-established presence in the military market, along with its core role in USAA. The companies have produced consistently strong earnings, supported by conservative financial management and sound capitalization. Partially offsetting these strengths are the challenges associated with growth of its core affiliated membership base, increased financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. competition, and managing the interest rate and disintermediation The elimination of the distributor and/or retailer (the middleman) when making a purchase. The term is used to refer to purchasing directly from a manufacturer's Web site, the benefits of which are convenience, fast turnaround time and sometimes lower prices. risks inherent in its annuity portfolio. The financial strength rating of A++ (Superior) has been affirmed with a stable outlook for United Services Automobile Association and its following subsidiaries: --USAA Casualty Insurance Company --USAA General Indemnity Company --USAA Limited --USAA Texas Lloyd's Company --United Services Automobile Association --USAA County Mutual Insurance Company --USAA Life Insurance Company --USAA Life Insurance Company of New York The following debt ratings have been affirmed with a stable outlook: USAA Capital Corporation-- -- "aaa" on the medium term note program -- AMB-1+ on the commercial paper program For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc. For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debt. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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