U.S. Auto Association: Insurance Dividends Explained

USAA is a fully integrated financial services company that provides auto insurance to its members. The company has been known to return a portion of its profits to its members in the form of dividends. In 2024, USAA announced that it would be returning over $1 billion in dividends to its auto insurance policyholders. The amount of dividend that a USAA member receives can vary, with some members reporting dividends of around $40-$50, while others have received larger amounts, such as $299 or $548. These dividends are typically applied as a credit to the member's auto insurance bill, but members also have the option to receive the dividend as a cash payment. It's important to note that not all USAA members are eligible for dividends, and eligibility may depend on factors such as tenure and the type of insurance policy.

USAA's $1 billion dividend return in 2024

USAA, the country's fifth-largest property-casualty insurer, has announced that it will be returning an additional $270 million dividend to its auto insurance policyholders, bringing the total dividend amount to over $1 billion. This follows earlier announcements of an $800 million dividend payout as a 20% credit on three months' worth of premiums. The latest dividend is based on the continued reduction in the number of drivers on the road and will be provided to all auto insurance policyholders with policies in effect in June and July.

The additional dividend will reflect 10% of up to two months' worth of premiums and will be automatically applied as a credit to the members' auto and property insurance accounts in late August. This move is in line with USAA's history of returning a portion of profits to its members. In 2019, USAA and its subsidiary companies returned nearly $2.4 billion in dividends, distributions, and bank rebates and rewards, bringing the total amount returned to members since January 2019 to over $3.4 billion.

USAA President and CEO Wayne Peacock affirmed the company's commitment to helping its members, especially during challenging economic times, by providing financial relief through dividend returns and other assistance programs. The company has also taken steps to support its employees, enabling nearly all 35,000 employees to work from home through 2020.

In addition to the dividend returns, USAA is providing several other forms of financial relief to its members during the COVID-19 pandemic. These include special payment arrangements on property and auto insurance, extended auto coverage for members using their personal vehicles for work-related deliveries, and payment assistance programs for eligible members on various financial products. USAA and The USAA Foundation have also contributed over $10.7 million to nonprofits across the country, specifically those supporting military families and communities affected by the pandemic.

USAA's $800 million dividend return in 2020

USAA, the country's fifth-largest property-casualty insurer, returned an additional $280 million dividend to its auto insurance policyholders in 2020, totalling $800 million in dividends. This was based on fewer drivers being on the road during the COVID-19 pandemic and the resulting stay-at-home orders.

The $800 million in dividends was provided as a 20% credit on three months' worth of premiums. This was the second dividend to be paid out to auto policyholders in 2020, with the first being a dividend of $520 million, or a 20% credit on two months' worth of premiums. The additional dividend reflected 20% of a third month's worth of premiums and was provided to all auto insurance policyholders with policies in effect as of April 30, 2020.

The return of dividends was in line with USAA's history of returning a portion of profits to its members. In 2019, USAA and its subsidiary companies returned nearly $2.4 billion in dividends, distributions, and bank rebates and rewards. This brought the total amount returned to members since January 2019 to over $3.2 billion.

The dividends were automatically applied as credits to the members' auto and property insurance accounts in late May 2020. No action was required on the part of the members to receive the dividend.

In addition to the return of dividends, USAA took several other steps to provide financial assistance to its members during the COVID-19 pandemic. These included special payment arrangements, extended auto coverage for members using their personal cars to deliver goods, and special payment assistance programs for eligible members.

USAA's $270 million dividend return in 2020

On August 4, 2020, USAA, the fifth-largest property-casualty insurer in the country, announced its decision to return an additional $270 million dividend to its auto insurance policyholders. This was in addition to the $800 million in dividends that the company had previously announced, bringing the total dividend commitment to $1.07 billion. The latest dividend was based on the continuation of fewer drivers on the road due to the COVID-19 pandemic.

The $270 million dividend reflected 10% of up to two months' worth of premiums and was provided to all auto insurance policyholders with policies in effect during June and July. USAA President and CEO Wayne Peacock stated that returning money to members was especially important during the pandemic when budgets were stretched. As a member-owned association, USAA has a history of returning a portion of its profits to members. In 2019, the company returned nearly $2.4 billion in dividends, distributions, and bank rebates and rewards to its members.

The $270 million dividend was automatically credited to members' auto and property insurance accounts in late August 2020. No action was required from the members to receive this dividend. This dividend was just one of the many steps USAA took to provide financial assistance to its members during the pandemic. USAA also offered special payment arrangements, extended auto coverage for members using their personal cars for work deliveries, and provided payment assistance programs for various financial products.

In total, USAA's 2020 Annual Report highlighted that the company paid $1.1 billion in special dividends to auto policyholders due to decreased driving and savings from fewer claims during the pandemic. The report also noted that USAA's net worth grew by 14% to $40 billion, with revenue of $36.3 billion and a net income of nearly $4 billion.

USAA's $3 billion dividend return in 2020

USAA, the country's fifth-largest property-casualty insurer, returned over $1 billion in dividends to its members in 2020. This was in response to fewer drivers on the road during the COVID-19 pandemic. The company announced in April 2020 that it would provide a dividend of $520 million to its members as a 20% credit on two months' worth of premiums. A second dividend of $280 million was announced in May 2020, reflecting 20% of a third month's worth of premiums. In total, USAA committed to returning $800 million in dividends to its auto insurance policyholders in 2020.

As a member-owned association, USAA has a history of returning a portion of its profits to its members. In 2019, the company returned nearly $2.4 billion in dividends, distributions, and bank rebates and rewards to its members. This brought the total amount returned to members since January 2019 to over $3 billion.

The return of auto dividends was one of the many steps USAA took to provide financial assistance to its members during the COVID-19 pandemic. The company also offered special payment arrangements, waived fees for late payments, and provided extended auto coverage for members using their personal cars to deliver goods due to business operations changes caused by the pandemic.

In addition to providing financial relief to its members, USAA also committed to helping its employees and the community during the pandemic. The company enabled nearly all of its 35,000 employees to work from home and contributed $5 million to military-focused and other nonprofits responding to the pandemic.

USAA's $1.3 billion dividend return in 2020

USAA, one of the leading providers of insurance, banking, and investment and retirement solutions, returned a total of $1.3 billion to its members in 2020. This amount was comprised of special dividends and financial assistance provided to members during the COVID-19 pandemic.

The $1.3 billion dividend return included $1.1 billion in special dividends paid to auto policyholders due to decreased driving during the pandemic and savings to USAA from fewer claims. In addition, USAA provided $280 million in dividends to members as a 20% credit on two months' worth of premiums, with an additional $280 million dividend reflecting 20% of a third month's worth of premiums.

USAA's commitment to its members was evident as they transitioned 30,000 employees to work from home within 10 days, ensuring uninterrupted service during a challenging time. The company's resilience and dedication to serving its members were highlighted in its 2020 Annual Report, which underscored financial resiliency and continued support for the military community.

In total, USAA returned more than $3 billion to members in 2020 through distributions, dividends, and bank rebates and rewards. This amount marked a 28% increase compared to 2019, demonstrating USAA's unwavering commitment to supporting its members and the military community during unprecedented times.

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