For nearly a century, USAA (full name: United Services Automobile Association) has offered an ever-growing suite of financial products to active-duty and retired members of the U.S. Armed Forces and their family members. According to its website, the San Antonio-based private organization was started, back in 1922, by 25 military officers who couldn’t find an insurance company willing to cover their vehicles.
Today, USAA hawks everything from brokerage and retirement accounts to flood insurance, through about a dozen subsidiaries. USAA itself – the parent company of these subsidiaries – is member-owned, structured under Texas law as an inter-insurance exchange. This is a cooperative model, as opposed to a traditional corporation. All members can purchase insurance through this structure. As a member who owns a slice of the company, you’re eligible to receive a share of USAA’s annual profits.