A.M. Best Affirms Ratings of USAA and Its Subsidiaries.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength ratings (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A++ (Superior) and the issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "aaa" 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 property/casualty and life/health subsidiaries. Concurrently, A.M. Best has affirmed the debt rating 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 the AMB-1+ on the commercial paper program of USAA Capital Corporation (San Antonio, TX). The outlook for all the above ratings is stable. (See below for a detailed listing of the ratings.) USAA Group maintains a superior capitalization, while benefiting from its conservative and focused business and financial strategies. USAA Group's low cost structure, high customer retention, effective use of technology and exceptional customer service capabilities has enabled it to build a sustainable competitive advantage in the personal lines sector. USAA Group further benefits from significant competitive advantages as part of the USAA family, which provides a full range of financial products and services to its membership, consisting of military and ex-military personnel and their dependents. Across the enterprise, USAA maintains diversified sources of earnings, capital accumulation and strong risk management. Modestly offsetting these positive factors are USAA Group's exposure to frequent and severe weather-related events, coupled with increased reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. costs and the availability of traditional reinsurance protection. Although USAA Group maintains a national spread of risk, considerable premium volume is derived from catastrophe-prone states, as evidenced by hurricane losses in 2004 and 2005. Despite the frequent and severe catastrophe losses in recent years, USAA Group continues to produce strong earnings and record solid surplus growth. The ratings 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) (together referred to as USAA Life), are based on USAA Life's highly focused and well-established presence in the military market, its core role in the USAA Group, its consistently strong earnings performance, high quality balance sheet, conservative financial management, strong liquidity resources and superior capitalization levels on both an absolute and risk-adjusted basis. Partially offsetting these strengths are the challenges associated with managing future Regulation XXX capital funding needs on its term life business, increasing the mix of its permanent versus temporary product sales (i.e. term), maintaining growth and penetration of its core affiliated membership base, increased financial services competition, ongoing spread compression on its fixed annuity Fixed Annuity An insurance contract in which the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal. business 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 FSRs of A++ (Superior) and ICRs of "aaa" have been affirmed for United Services Automobile Association and its following property/casualty and life/health subsidiaries: * USAA Casualty Insurance Company * USAA General Indemnity Company * USAA Limited * USAA Texas Lloyd's Company * USAA County Mutual Insurance Company * USAA Life Insurance Company * USAA Life Insurance Company of New York The following debt ratings have been affirmed: USAA Capital Corporation-- --"aaa" on the medium-term note program -- AMB-1+ on the commercial paper program 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 www.ambest.com. |
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