USAA - Expanding Services for the 1980s and 1990s

Expanding Services for the 1980s and 1990s

After an amendment in the company's bylaws, USAA finally moved to provide a greater number of services for its members. Organizing new functions under subsidiaries, the company added the USAA Life Insurance Company and the USAA Investment Management Company, or IMCO, which managed a number of mutual funds. USAA also began to offer a discount brokerage service.

In the 1980s, the USAA Federal Savings Bank was founded, establishing lucrative Visa and MasterCard operations, mortgage and home equity loans, deposit services, and consumer loans. USAA also set up a travel agency and began to offer real estate investment opportunities. The move directly into the real estate market was realized with the completion of USAA Towers, a 23-story retirement community, and USAA Parklane West, a medical care facility. Each of these new enterprises made a broader range of services available to USAA members and also contributed to the company's overall net worth.

By the early 1990s, USAA's diversified business lines were thriving. The Life Insurance Company, carrying policies totaling more than $46 billion, was the country's 43rd largest life insurance company; within three years, it ranked 37th on the list, with $57.4 billion worth of policies written. The company's bank, USAA Federal Savings Bank, reported over $3.5 billion in assets, had issued more than 1.5 million credit cards, and had become one of the five largest savings and loan institutions in the United States. In addition, USAA had also inaugurated a joint program with Sprint to provide discount telephone services to its customers.

Key Dates:

1922:
USAA is established in San Antonio to provide auto insurance for Army officers.
1941:
Membership in the association exceeds 22,000.
1948:
A New York office is opened.
1956:
A new headquarters is completed in San Antonio.
1973:
Membership opens to National Guard and Reserves.
1983:
USAA Federal Savings Bank and USAA Brokerage Services are established.
1997:
Membership extended to enlisted personnel.
1999:
A Web site is launched.

By 1993, USAA's owned and managed assets had reached $33 billion as the company, in its broadened guise, became the 21st largest American diversified financial services company in the Fortune Service 500. USAA's attention to employee morale and training had also won praise, and it was named one of the ten best companies to work for in America. With a loyal and well-trained corps of employees, and a smooth-running operation that ran with precision, USAA appeared well situated to continue its growth and solid financial success well into the 21st century under the leadership of new chairman and CEO, Robert T. Herres, a retired U.S. Air Force general.