USAA First Loss Since 1923 - 1.3 Billion

19,938 Views | 154 Replies | Last: 1 yr ago by Brush Country Ag
ValleyRatAg
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Blames rising interest rates, inflation, and a weak market. It's just transitory though….right?

https://sanantonioreport.org/usaa-blames-loss-rising-inflation-interest-rates-weak-markets/
annie88
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Blame Biden and the Democrats.
Currently a happy listless vessel and deplorable. #FDEMS TRUMP 2024.
Fight Fight Fight.
one safe place
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Supply chain woes?
JohnLA762
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This can't be! The resident Libs are celebrating all of the good metrics that show the economy is booming!

Get ready for a hard landing folks…

aggiez03
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I am sure that uninsured motorists are not helping those numbers either.

You get in a wreck these days, 50% chance YOUR insurance will be paying even if you are not at fault.
TommyBrady
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Ive been with them since I enlisted and they have been good customer service wise but their insurance rates are getting out of control.

They also are losing a ton of money from the wars drawing down and a lot less tax free money going into accounts and thus less loans for crazy rates.
GAC06
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USAA has been going downhill for years
Hanrahan
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Yup. All insco rates are insanely high. USAA used to be the outlier. Then they started opening up beyond officer ranks and then extended family and the growth was nice until they realized the risk pool went to hell… now they are as bad as every other insco….
jja79
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Obviously Trump.
BadMoonRisin
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You're just a racist. The economy is booming. Lowest unemployment since we landed on the moon. And our ******ed goons will agree with that with exceptional gusto because they have to.

Has absolute zero to do with this:

GAC06
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Hanrahan said:

Yup. All insco rates are insanely high. USAA used to be the outlier. Then they started opening up beyond officer ranks and then extended family and the growth was nice until they realized the risk pool went to hell… now they are as bad as every other insco….


They had a good thing going then they decided growth growth growth is the only way. Constant commercials, and a worse group to insure.
Stat Monitor Repairman
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Whatever the problem is,

It's not for lack of advertising.
oldcrow91
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Looks like interest income on long term assets can't keep up with interest expense on short term deposits.

They have 9 billion in capital before a 6 billion unrealized loss on their bond portfolio reduces book capital to less than 3 billion on 100 billion in assets. <3% capital. >9% is preferred.

They have 61 billion they paid for some low yielding bonds that are now only worth around 55 billion now that rates have gone up and they would have to discount their low rate bonds to get rid of them.

low rate bond investments and loans that don't earn much interest and fed funds rate is now 5.25% that they have to compete with to keep deposits.

Sounds exactly what happened to SVB bond portfolio except usaa has smaller avg depositor balances so they don't have billions of deposits leaving because they are uninsured.

You can look up bank quarterly call reports at ffiec.gov.

Fdic.gov also has a search function. It's interesting to see who has the big unrealized losses.
Boozer92
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annie88 said:

Blame Biden and the Democrats.


Actually that is what they did. Everything listed is on Biden
UTExan
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I hate to say it, but extending insurance to lower ranking enlisted folks (statistically bad drivers) was bound to take USAA down. Should have at least restricted coverage to E5 and above to get the best insurance risks.
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
Ellis Wyatt
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GAC06 said:

USAA has been going downhill for years
Yep. At least 10 years.
EX TEXASEX
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aggiez03 said:

I am sure that uninsured motorists are not helping those numbers either.

You get in a wreck these days, 50% chance YOUR insurance will be paying even if you are not at fault.
What are you complaining about. So they totaled your car and now you will have to pay higher insurance from now on. You should get on knees and thank them for being upstanding undocumented citizens. They only cost you thousands and thousands, when they could have just as easily murdered 5 of their neighbors. So quit being so xenophobic.
flakrat
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Got a Chick'fil'A (sp?) grilled sandwich meal the other day and it was $13 freaking dollars. What the absolute F! Pre Covid, that was $7
LMCane
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I was with USAA when I started in the Air Force back in 2005

switched to Geico Military a few years ago for much better rates
bigjag19
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Sounds like the banking side is where the major hits are.
The Chicken Ranch
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I didn't serve, but my dad did. I have everything with USAA. Always thought of them as being top notch in everything they do.

This is probably a big sign of things to come with other banks and insurance companies.
lb3
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Hanrahan said:

Yup. All insco rates are insanely high. USAA used to be the outlier. Then they started opening up beyond officer ranks and then extended family and the growth was nice until they realized the risk pool went to hell… now they are as bad as every other insco….
I was a USAA customer. I have access via my wife who is a Canadian who was briefly married to a vet 30 years ago.
Darth Randy
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So is USAA on the gonna fail and get bought up by another bank list?
Cinco Ranch Aggie
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Hanrahan said:

Yup. All insco rates are insanely high. USAA used to be the outlier. Then they started opening up beyond officer ranks and then extended family and the growth was nice until they realized the risk pool went to hell… now they are as bad as every other insco….
Yep.

I did a research project on USAA in my last semester at A&M, but since I wasn't in the military I didn't expect to ever get insurance from them. It wasn't that long ago that my dad, who did serve, told me I could get insurance with USAA, maybe a decade ago or so. Rates were fantastic, for years, even through Harvey. But then in the last couple of years, I have noticed a skyrocketing of what I'm paying. I've never had a claim, but would estimate my rates have very nearly doubled from what I was initially paying.

I have shopped around, but haven't found anything that would make it worth the hassle of switching.
Joseph Freshwater, Sr
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I used USAA for everything about 15 years ago before running into a major drop in customer service. After dropping them, I was involved in an auto accident caused by a USAA-insured driver. That situation ended up being a very long and ridiculous road that further convinced me that I made the right decision to leave. They took nearly 6 months to pay for my damages in one of the most clear cut accident situations I've ever seen.
I am not surprised nor am I sad to hear of their financial woes.
Stat Monitor Repairman
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USAA blames an increase in auto claims because people were on the road more in 2022.

What happened to the surplus in 2020 from when people were staying home and staying safe?
IslanderAg04
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Liberals will just blame Trump.
Gunny456
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I have had everything with USAA for over 30 years. Have filed a few minor claims over the years and was always taken care of. Had a bad house fire 3 years ago and I could not have asked to be handled any better than I was. They really stepped up to help us and absolutely not a single hassel or arguement.
For our coverage the homeowners and liability is very competitive .....but auto insurance went up this past year but still about equal to other bids we got so we just stayed.
Dawnguard
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Also hurts a ton having a 140million fine

https://www.ksat.com/news/local/2022/03/18/usaa-fined-140-million-for-willfully-failing-to-implement-anti-money-laundering-laws-federal-regulators-say/#:~:text=Federal%20regulators%20have%20fined%20USAA,Network%20(FinCEN)%20announced%20Friday.


All that being said, I regret dropping USAA, but my wallet does not. Claims just went significantly better under them.
Hungry Ojos
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Stat Monitor Repairman
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How did USAA get popped $140 million for money laundering violations?

HSBC, ok, UBS ok ... but USAA? How are they getting involved with high risk money laundering clientele?

And if not, how do you run up a $140 million tab on compliance violations?
Lake08
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Had usaa for 30 years. Switched to progressive 2 months ago. Usaa's rates are insanely high
Yesterday
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UTExan said:

I hate to say it, but extending insurance to lower ranking enlisted folks (statistically bad drivers) was bound to take USAA down. Should have at least restricted coverage to E5 and above to get the best insurance risks.


Just because a PFC buys a dodge charger for 25% over 12 years and just married the base ***** doesn't make him a bad driver.

And I was once a PFC so I can say that.
buzzardb267
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I have been a member since I went on active duty in 1968. Through the years, I have had folks ask me if they could quote me for insurance, until I tell them I have USAA, then they say, never mind. I watched them expand from commissioned officers, to NCOs and then to enlisted men. I told my wife at the time, this is going to make them like every other insurance company. Take a high school grad, give him a steady income and the first thing he buys is a hot, fancy ride.

For the last decade, at least, I have seen USAA ads ad nauseum! I asked them once what they spent on ads and the only response I got was they did a survey, once, that said some military personnel had never heard of USAA. I find it hard to believe that there can be enough to warrant such expense. I have so many kids and grandkids with USAA it would be difficult for me to change now. I also have my RV and a mobile home with their partners.

I can easily count on two hands the claims I have filed over the years, including the three roofs I have replaced courtesy of living in Texas. Customer service has always been excellent, although they have ceased addressing me as Lt. I guess 50+ years was long enough.
"ROGER - OUT"
TommyBrady
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Thanks I'll get a quote from them and hopefully get some relief from these crazy rates
 
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