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                                                                                                                          » SERVE

                                                                » The Greatest Generation
                                                                 Spurred by love of country and a duty to
                                                                 serve, their selfless courage ultimately liberated
                                          FROM LEFT TO RIGHT:    countries on four continents and ended a
 Lt. Col. Dewey Garwood, Jr., 83, USAF (Ret.)                    war. Nearly half a million never made it home.
        1st Lt. Robert Garwood, 87, USA (Ret.)                   The fallen and the survivors— now in their
 Col. Virgal (Sandy) Sansing, 86, USAF (Ret.)                    80s and 90s — leave a legacy of unparalleled
Lt. Col. William (Bill) Powers, 83, USAF (Ret.)                  commitment and heroism.

                                                                 A special thanks to the Yellow Rose Squadron
                                                                 of the Commemorative Air Force.                      USAA 2007 Report to Members
    » Mission Statement
         The mission of the association is to facilitate the financial
         security of its members, associates and their families through
         provision of a full range of highly competitive financial
         products and services; in so doing, USAA seeks to be the
         provider of choice for the military community.

         CONTENTS                                                         “We Know What It Means To Serve” has long
     4   We Know What It Means To …                                        been USAA’s signature.
    14   Awards
    15   Letter from the Chairman
    16   Letter from the CEO
    24   USAA.COM
                                                                           It connects us — our shared experience, shared
    26   Performance Overview                                              values and common military heritage.
    27   Financial Report
    31   Ratings
         We Know What It Means To Give
         Board of Directors
                                                                           It reflects our community of members —
    39   Executive Council                                                 those who are serving, those who have served
    40   Advisory Panel
    41   Additional Information                                            and their families.

                                                                           It reflects the pride our employees take
                                                                           in the privilege of serving you.

2   USAA 2007 REPORT TO MEMBERS                                                                           USAA 2007 REPORT TO MEMBERS   3
                                                 Learn what to do after an
                                          accident at USAA.COM/CLAIMS.

                                      WE KNOW WHAT
                                      IT MEANS TO »
                                      GET IN AN ACCIDENT
                                      From fender benders to rollovers,
                                      nearly 2 million of our members
                                      filed an auto claim in 2007.
                                      Many of you called, and more than
                                      43,000 filed claims on usaa.COM.
                                      However you let us know you
                                      needed us, we were there. Just
                                      as we have been for more than
                                      85 years.
                                  »   AUTO INSURANCE

                                  »   24/7 CLAIMS SERVICE

                                  »   ROADSIDE ASSISTANCE

4   USAA 2007 REPORT TO MEMBERS                  USAA 2007 REPORT TO MEMBERS   5
                                         Simplify your retirement planning
                                            at USAA.COM/RETIREMENT.

                                      WE KNOW WHAT
                                      IT MEANS TO »
                                      PLAN FOR RETIREMENT
                                      after years of work on the
                                      battlefield or in the cubicle,
                                      you’re no doubt looking forward
                                      to your retirement. In 2007,
                                      more than 900,000 member
                                      households entrusted usaa
                                      to provide the products
                                      and services they need for
                                      their retirement.
                                  »   INDIVIDUAL RETIREMENT ACCOUNTS

                                  »   INSURANCE SOLUTIONS

                                  »   ANNUITIES

6   USAA 2007 REPORT TO MEMBERS                   USAA 2007 REPORT TO MEMBERS   7
                                           Learn how to protect your loved
                                              ones at USAA.COM/FAMILY.

                                      WE KNOW WHAT
                                      IT MEANS TO »
                                      RAISE A FAMILY
                                      Today preschooler hysterics,
                                      tomorrow adolescent angst. In
                                      2007, we helped nearly 1 million
                                      members protect their loved
                                      ones with life insurance. For
                                      a million of you, we provided
                                      personalized financial advice to
                                      answer questions about reducing
                                      debt, paying for a home or
                                      saving for college.
                                  »   LIFE INSURANCE

                                  »   FINANCIAL PLANNING
                                  »   BANKING

8   USAA 2007 REPORT TO MEMBERS                   USAA 2007 REPORT TO MEMBERS   9
                                        Find out how we can help you prepare
                                               at USAA.COM/DEPLOYMENT.

                                       WE KNOW WHAT
                                       IT MEANS TO »
                                       BE DEPLOYED
                                       Tearful goodbyes, but with mighty
                                       purpose. Whether you were
                                       one of the hundreds of units
                                       we met face to face or one
                                       of the hundreds of units we sent
                                       deployment packets to last year,
                                       we reached more than 86,000
                                       deploying men and women. and
                                       when you come home, we’ll
                                       continue providing the financial
                                       products and services that gave
                                       you peace of mind while you
                                       were away.
                                   »   ONLINE / MOBILE ACCESS

                                   »   INSURANCE

                                   »   BANKING

10   USAA 2007 REPORT TO MEMBERS                    USAA 2007 REPORT TO MEMBERS   11
                                         Get the best protection for your home
                                       and belongings at USAA.COM/PROTECT.

                                       WE KNOW WHAT
                                       IT MEANS TO »
                                       LOSE EVERYTHING
                                       To return home to ashes and
                                       debris where your house stood
                                       only hours earlier is to know
                                       devastation. For the 213 members
                                       who lost their homes in 2007 —
                                       105 in the southern California
                                       wildfires—usaa was there to
                                       help with fast payouts for living
                                       expenses, personal belongings
                                       and the house itself.
                                   »   HOMEOWNERS / RENTERS INSURANCE

                                   »   VALUABLE PERSONAL
                                       PROPERTY INSURANCE
                                   »   AUTO INSURANCE

12   USAA 2007 REPORT TO MEMBERS                      USAA 2007 REPORT TO MEMBERS   13
     2007 AWARDS                                                                                              LETTER FROM THE CHAIRMAN

     USAA	seeks	to	balance	the	needs	of	members,	the	well-being	of	employees,	and	the	association’s		
     financial	strength	on	a	foundation	of	operational	excellence.	In	2007,	the	recognition	USAA	received		
     from	industry	and	media	experts	reflected	that	balance.                                                  The year 2007 was one of USAA’s most
                                                                                                              successful — and one of change.
                                     J.D. POWER AND ASSOCIATES

                                     USAA was recognized for its performance in the Auto and                  In December, Chairman and Chief Executive O∞cer                He is joined by two new directors who were elected to
                                     Homeowner Insurance Studies, as well as the Primary Mortgage             Robert G. (Bob) Davis retired, after leading USAA through      the board at the 2007 Members’ Meeting: retired Army
                                     Servicer Study.                                                          a period of remarkable growth and accomplishments,             General John P. Abizaid, a USAA member since 1973 who
           MEMBER                                                                                             many of which you can read about in this report.               most recently served as commander of the U.S. Central
           SERVICE                   BUSINESSWEEk                                                                                                                            Command, overseeing military operations in a 27-country
                                                                                                              In a unanimous vote, the USAA Board of Directors               region; and retired Air Force Colonel Eileen M. Collins,
                                     USAA ranked No. 1 on the publication’s list of                           subsequently elected me as Chairman of the Board,              a member since 1978, and the first female pilot and first
                                     “Customer Service Champs.”                                               and retired Army Maj. General Josue (Joe) Robles, Jr.,         female commander of a space shuttle. Their backgrounds
                                                                                                              as President and CEO.                                          are stellar, and they have both served our country with
                                                                                                              During his seven-year tenure as Chairman and CEO,
                                     FORTUNE                                                                  Bob transformed the association into a highly competitive      In addition, five directors were re-elected — retired Army
                                                                                                              financial services company. Under Bob’s leadership, we         Lt. General Thomas P. Carney, retired Army Lt. General
                                     Fortune 500 Largest U.S. Corporations
                                                                                                              also made significant strides in our Internet strategy,        Daniel W. Christman, retired Air Force Colonel Leslie G.
                                     180th in Revenue, 84th in Net Worth, 70th in Assets                      while intensifying our focus on member service and             Denend, retired Air Force Maj. General Marcelite J.
           FINANCIAL                                                                                          maintaining the best customer loyalty in the industry.         Harris and retired Air Force General Lester L. Lyles —
           STRENGTH                  WARD GROUP
                                                                                                                                                                             rounding out the association’s 18-member board.
                                     USAA Property & Casualty Insurance Group and USAA Life                   As a member of the board since 1996, I have personally
                                                                                                                                                                             (For biographies on all of our USAA board members,
                                                                                                              witnessed this transformation. USAA has become
                                     Insurance Company named to the Ward’s 50, which benchmarks                                                                              please see pages 36–38.)
                                                                                                              a high-performance organization — financially and
                                     the top-performing insurance companies.                                  operationally stronger — and will continue on that             I expect that USAA will continue to grow and change as
                                                                                                              successful path under Joe’s leadership.                        the environment and our members demand. Rest assured,
                                                                                                                                                                             however, that some things will never change: USAA’s
                                                                                                              We chose Joe as our new CEO because of his dedication
                                                                                                                                                                             mission, its commitment to the U.S. military and its core
                                     CALIFORNIA TASK FORCE ON YOUTH AND WORKPLACE WELLNESS                    to USAA, his commitment to its mission and his personal
                                                                                                                                                                             values of service, loyalty, honesty and integrity.
                                     California Fit Business Award                                            integrity. I have known Joe for years, going back to our
                                                                                                              service together in the Army, where he rose through the
                                     Gold	Level
                                                                                                              ranks from private to major general. Joe is an extraordinary                          Sincerely,
                                                                                                              leader, having commanded troops in Desert Storm and
                                     G.I. JOBS
           EMPLOYEE                                                                                           later commanding an Army division, The Big Red One.
           WELL-BEING                Top 50 Military-Friendly Employers
                                                                                                              A member since 1967, Joe has been a part of USAA for
                                     LATINA STYLE                                                             40 years, including four years on the board and 14 years                              John H. Moellering
                                                                                                              in management as chief administrative o∞cer, chief             	                      L
                                                                                                                                                                                                    	 t.	General,	USA	(Ret.)	
                                     50 Best Employers for Hispanic Women
                                                                                                              financial o∞cer and corporate treasurer.                                              Chairman	

                                     COMPUTERWORLD                                                            As vice chairman of the board and chairman of the finance
                                     100 Best Places to Work in IT                                            and audit committee, I have worked closely with Joe
                                                                                                              and can assure you that we could not have selected a better
                                                                                                              person to lead this great organization.

14   USAA 2007 REPORT TO MEMBERS                                                                                                                                                                            USAA 2007 REPORT TO MEMBERS   15
                                                       DEAR FELLOW USAA MEMBERS,

                                                       Allow me to introduce some of our outstanding member service
                                                       representatives whose dedication to serving you inspired BusinessWeek
                                                       magazine to name USAA best in the nation for customer service in
                                                       2007 and again in 2008.
                                                       Every day, 22,000 employees come to work at USAA for one reason:
                                                       to serve you. I am proud to have been one of those employees for the past
                                                       14 years, and now to be that team’s leader.

                                     Joe Robles, Jr.
                                   President	and	CEO

16   USAA 2007 REPORT TO MEMBERS                                                                                   USAA 2007 REPORT TO MEMBERS   17

     Our mission is to provide you with solutions       USAA — EASIER
                                                        In 2007, USAA was one of the first financial
                                                                                                          » USAA Car Buying Service. Research, locate
                                                                                                            and finance a new or used car — all online.
     that help protect you and your financial future.   services companies to make banking,
                                                                                                          » MY.USAA.COM. Members ages 13 through
                                                        investment and insurance services available
     With respect for the military service you and      on cell phones and mobile devices. You
                                                                                                            17 can view their accounts and documents,
                                                                                                            and transfer and deposit funds.
     your families have provided to our nation, our     can access your accounts, check your balances,
                                                        transfer money, make stock trades, order
     goal is to provide you the highest possible        auto insurance ID cards and pay bills — all
                                                        on your phone at MOBILE.USAA.COM.
                                                                                                          THE VALUE OF MEMBERSHIP
                                                                                                          USAA is the only fully integrated financial
     value and service.                                 During the year, we also made significant
                                                                                                          services company in the nation, and we continue
                                                                                                          to offer our members a wide array of highly
                                                        improvements to USAA.COM, enabling those          competitive products and services. As a result,
     USAA is known for its personal service, and        who wish to do virtually all of their everyday    more members are acquiring their banking,
                                                        business with USAA online. Additional
     our knowledgeable representatives will always      capabilities we launched or expanded in
                                                                                                          insurance and investment products from USAA.

                                                                                                          Today, USAA’s 5.1 million member
     be here to help you. And as the world moves        2007 include:
                                                                                                          households trust us to provide
                                                        » USAA Deposit@Home. Qualified members
     faster and our lives get busier, members
                                                          can deposit checks into a bank account online
                                                                                                          an average of approximately five
                                                                                                          products for their families.
     tell us it is increasingly important to be able      from anywhere in the world using a home
                                                          computer and scanner.                           While we have always recognized and rewarded
     to manage their financial lives on the go —        » Retirement Center. Help evaluate your
                                                                                                          member relationships with USAA, last year we
                                                                                                          introduced auto insurance pricing that further
     quickly, easily, anytime, anywhere.                  retirement plans using interactive tools
                                                                                                          recognizes the benefits of member loyalty. That
                                                          such as the Online Retirement Advisor and
                                                                                                          means members can save money on their auto
                                                          Retirement Income Planner.
     In 2007, we focused on expanding and                                                                 insurance premiums based on the number
                                                                                                          of USAA products they own and the number of
                                                        » Auto and Property Claims. File an
     enhancing the many ways you can manage               insurance claim for your car or home on         years they have had auto insurance with us.
     your business with USAA.

18   USAA 2007 REPORT TO MEMBERS                                                                                                   USAA 2007 REPORT TO MEMBERS   19
                                                                                                                                                               MEMBERSHIP (in	millions)
     One million members benefited                       In 2007, owned and managed assets grew                 One of the benefits of USAA
     from free financial advice                          10.3 percent to more than $125 billion, and net        membership is being part
                                                         worth grew by 9.5 percent to $14.4 billion.
     from our expert financial advisors                                                                         of a community whose collective
     during 2007.                                        Strong net worth ensures USAA can pay your             behavior can help lower prices.
     Financial advice is central to the association’s    claims now and in the future, meet regulatory          When you drive safely and maintain your
     mission of helping members achieve financial        and rating agency requirements, and fund               home, it helps keep costs down for everyone.
     security, and — beyond our free advice —            current and future operations. It also helps the       Another way you can help is to use USAA.COM
     thousands of members took advantage of our          association protect against uncontrollable             for routine transactions and receive your
     comprehensive fee-based plans as well.              forces such as interest rates, the stock market        documents online rather than through the
                                                         and catastrophes.                                      mail, a move that benefits the association
     Nothing is more important than being there                                                                 and the environment.
     for our members when disaster strikes, and          Our financial strength, expense control and
     USAA employees responded immediately when           e∞ciency efforts enabled the association to
     more than 3,700 members were affected by            thrive despite the ongoing credit crisis, increasing   WE KNOW WHAT IT MEANS TO SERVE                 A record 6.4 million members
     the Southern California wildfires last summer.      non-catastrophe losses, and the seventh-largest        At USAA, we know what it means to serve        trust USAA. More than half
     Many members who experienced total losses           catastrophe in USAA’s history — the Southern           the military community. It is our pride and    of them served in the military.
     had their claims paid and closed within days of     California wildfires.                                  privilege. We are constantly mindful of
     the fires being extinguished.                                                                              the sacrifices our military personnel and
                                                         As a result, we were able to return                    their families make every day to protect our
                                                         more than $1.5 billion to you in the                   freedoms. We are grateful for and honored
                                                         form of distributions, dividends,                      by their service.
     Financially, the association ended the year                                                                                                               24%        ENLISTED
                                                         rebates, rewards, and auto and
     stronger than ever. Standard & Poor’s, A.M.
                                                         property insurance rate reductions.
                                                                                                                Thank you for trusting USAA. Thank you for     29%        OFFICERS
     Best and Moody’s independent rating agencies                                                               allowing us to serve you.
     again awarded USAA’s Property & Casualty
                                                                                                                                                               47%        CHILDREN AND

                                                                                                                                                               (membership	composition	as	of	2007)
     Insurance Group the highest ratings for financial                                                          Sincerely,
     strength, making USAA one of a small,
     elite group of companies to retain the highest
     possible ratings.

                                                                                                                Josue (Joe) Robles, Jr.
                                                                                                                Maj.	General,	USA	(Ret.)	
                                                                                                                President	and	CEO

20   USAA 2007 REPORT TO MEMBERS                                                                                                                                                          USAA 2007 REPORT TO MEMBERS   21

     PRODUCTS (in	millions)
                                   NET WORTH (in	billions)   OPERATING ExPENSE RATIO        ASSETS OWNED AND MANAGED (in	billions)
                                                             »   P&C INDUSTRY               »   MANAGED
                                                             »   USAA P&C INSURANCE GROUP   »   OWNED

     Today, 6.4 million            A strong net worth        USAA’s P&C insurance           USAA’s owned and
     members trust                 ensures USAA will be      operation continued            managed assets grew
     us to provide                 there for you and         to outperform its              10.3 percent due to
     26.7 million products         your family now and       industry* by more than         a well-managed
     for them and their            in the future.            10 percentage points.          investment portfolio and
     families.                                               *A.M.	Best	2007	estimate
                                                                                            an increase in member
                                                                                            consumer loans.

22   USAA 2007 REPORT TO MEMBERS                                                                                  USAA 2007 REPORT TO MEMBERS   23

                                                  » ANYTIME, ANYWHERE.
                                                   Whether you use a computer at home or a paper‑thin laptop
                                                   on the go, we make it easy for you to manage your accounts
                                                   or open new ones, go paperless, get free financial advice and
                                                   plan for your retirement on USAA.COM. Have a mobile device
                                                   that goes everywhere you do? You can check balances, transfer
                                                   money, make stock trades, pay bills or request auto ID cards
                                                   at MOBILE.USAA.COM. Designed for you — when and where
                                                   you need it.

                                                   How good is it? In a recent Forrester Research Inc. customer
                                                   satisfaction survey, usaa received the highest percentage —
                                                   93 percent — of customer experience satisfaction with recent
                                                   Web interaction across nine different industries (The Experiences
                                                   That Satisfy Consumers, Forrester Research Inc., February 2008).

24   USAA 2007 REPORT TO MEMBERS                                                            USAA 2007 REPORT TO MEMBERS   25
     PERFORMANCE OVERVIEW                                                                                       MANAGEMENT’S RESPONSIBILITY
                                                                                                                FOR FINANCIAL REPORTING
     The	financial	statements	published	in	this	document	have	been	selected	so	that	you	can	see	pertinent		
     and	necessary	financial	information	about	USAA.
                                                                                                                The management of USAA is responsible for           USAA’s internal controls are designed to
                                                                                                                the integrity and objectivity of the financial      reasonably ensure that USAA’s assets are
» USAA’s owned and managed                              » Debt levels remained low.                             information presented in this annual report.        safeguarded from unauthorized use or disposition
  assets increased 10.3 percent to                                                                              Due to the volume of financial information          and that USAA’s transactions are authorized,
                                                           Although USAA has access to more than
  $125.1 billion.                                                                                               contained in the audited consolidated financial     executed and recorded properly. In addition,
                                                           $40 billion through various funding sources,
     The increase is due to a conservative and             the association remains conservative and had         statements, which includes the financial            USAA has a professional staff of internal auditors
     well-managed investment portfolio, combined           only $449 million in outstanding debt at             statements as well as the accompanying footnotes,   who monitor these controls on an independent
     with a significant increase in the number of          year-end. This resulted in a debt-to-total-capital   we have chosen not to include the full audited      basis. The Finance and Audit Committee of
     consumer loans taken out by USAA members.             ratio of just 3 percent.                             consolidated financial statements in this Report    USAA’s board of directors engaged Ernst &
                                                                                                                to Members. The financial statements that           Young LLP as independent auditors to audit
                                                                                                                appear in this document have been selected from     USAA’s financial statements and express an
                                                                                                                the audited consolidated financial statements       opinion thereon. Ernst & Young LLP’s audit
» Consolidated total revenues grew 7.5 percent to $14.4 billion.
                                                                                                                to give basic and necessary financial information   included reviews and tests of USAA’s internal
     Despite lower prices, USAA’s revenues grew as membership expanded and products per household               about USAA. Certain prior year amounts were         controls to the extent they believe necessary to
     increased. Each member household owns an average of five USAA products.                                    reclassified to conform to the current year         determine and conduct the audit procedures
                                                                                                                presentation. The selected financial information    that support their opinion.
                                                                                                                was prepared by USAA in accordance with
                                                                                                                Accounting Principles Generally Accepted in         The Finance and Audit Committee of USAA’s
» USAA’s net worth grew                                 » USAA maintained its disciplined                                                                           board of directors consists of seven members,
                                                                                                                the United States of America (GAAP), except
  9.5 percent from $13.1 billion                          focus on expense management,                                                                              who are not o∞cers or employees of USAA.
                                                                                                                for the key statutory data, which was prepared
  in 2006 to $14.4 billion in 2007.                       process improvements and increasing                                                                       This committee meets periodically with
                                                                                                                in accordance with Statutory Accounting
                                                          productivity.                                                                                             management, internal auditors and Ernst &
     Net worth, the most important indicator                                                                    Principles (SAP). Management believes the
     of financial strength, covers members’                This rigor paid off as USAA’s P&C insurance          financial information contained in the audited      Young LLP to ensure that management fulfills
     insurance claims, meets regulatory and                operation kept its expense-to-revenue ratio          consolidated financial statements fairly presents   its responsibility for accounting controls
     rating agency requirements, and funds                 very low at 25.6 percent. This ratio continued       USAA’s financial position, results of operations    and preparation of the consolidated financial
     current and future operations.                        to outperform the P&C industry by more               and cash flows. A copy of the complete audited      statements and related data.
                                                           than 10 percentage points.                           consolidated financial statements of USAA,
     Standard & Poor’s, A.M. Best and Moody’s
     independent rating agencies again awarded                                                                  including Ernst & Young LLP’s unqualified
     USAA’s Property & Casualty Insurance                                                                       independent auditors’ report thereon, is
     Group the highest ratings for financial                                                                    available upon request to USAA headquarters
                                                        » USAA returned more than                                                                                   Josue (Joe) Robles, Jr.
     strength, making USAA one of a small,                                                                      in San Antonio, Texas.
                                                          $1.5 billion to members in 2007.                                                                          Maj.	General,	USA	(Ret.)	
     elite group of companies to retain the                                                                                                                         President	and	CEO
     highest possible ratings. That financial              This came in the form of dividends,
     strength enables us to pay our members’               distributions, rebates, rewards and auto,
     claims under the most severe catastrophic             homeowners and renters insurance rate
     circumstances.                                        reductions.

26   USAA 2007 REPORT TO MEMBERS                                                                                                                                                                USAA 2007 REPORT TO MEMBERS   27
      Usaa hiGhliGhts                                                                                                           consolidated balance sheets

      Years Ended December 31                                                2007                2006             2005         Years Ended December 31 (Dollars in millions)            2007                    2006          2005
 » ToTal MeMbers                (In millions)                                      6.4                5.9             5.5
 » ToTal ProdUCTs                (In millions)                                26.7                23.9                21.8
                                                                                                                                investments                                     $
                                                                                                                                                                                    23,708             $
                                                                                                                                                                                                             25,884        $
 » ToTal eMPloYees                 (In thousands)                             22.7                    21.7            21.8
                                                                                                                                bank loans, net                                     25,874                 20,159           17,536
                                                                                                                                Real estate investments, net                              1 ,1 1 1                 1,195        1,287
      USAA Consolidated (Dollars in millions)
                                                                                                                                cash and cash equivalents                               5,580                     2,191        3,376
      Revenue                                                           $
                                                                            14,418         $
                                                                                                  13,416      $
                                                                                                                  11,980        Premiums due from policyholders                          1,692                     1,681        1,612
      expenses                                                          12,563                    11,086          10,592        Property and equipment, net                              1,461                   1,398         1,383
      net income                                                             1,855               2,330            1,388        securities lending collateral                           2,759                    2,688         1,455
                                                                                                                                other assets                                            4,992                    5,073        5,467
      assets owned                                                      $
                                                                            67,177     $
                                                                                              60,269          $
                                                                                                                              » ToTal asseTs                                            67,177             60,269           51,038
      assets owned and managed                                          125,140              113,475         96,094
      total liabilities                                                 52,810               47,145          39,882
      net worth                                                         14,367                  13,124           11,156       Liabilities

                                                                                                                                insurance reserves                                  $
                                                                                                                                                                                        11,502                $
                                                                                                                                                                                                                  10,641   $
                                                                                                                                life insurance — funds on deposit                       8,444                 8,095         7,740
                                                                                                                                bank deposits                                   26,886                      22,061       16,407
      membeR distRibUtions                                                                                                      borrowings                                                 449                   808            991
                                                                                                                                securities lending payable                              2,759                    2,688         1,455
                                                                                                                                other liabilities                                       2,770                   2,852        3,075
                                                                                                                              » ToTal liabiliTies                                   52,810                   47,145       39,882

      Years Ended December 31 (Dollars in millions)                          2007                2006             2005
                                                                                                                                Net Worth
      subscriber’s savings account (ssa) distributions                        $
                                                                                  255              $
                                                                                                       221         $
      automobile policyholder dividends                                           108                 105             103      total net worth                                     14,367                      13,124        11,156

        total automobile policyholder dividends and ssa distributions             363                  326              311   » ToTal liabiliTies and neT worTh                     $
                                                                                                                                                                                        67,177         $
                                                                                                                                                                                                              60,269       51,038

      ssa senior bonus                                                            104                 88               80
      ssa terminations                                                              71                 62              58
        total property and casualty distributions                                 538                 476             449
      life insurance company policyholder dividends                                45                 44               45
      Federal savings bank rebates and rewards                                    327                 275             200
 » ToTal disTribUTions To MeMbers                                              $
                                                                                   910             $
                                                                                                    795            $

28   Usaa 2007 RePoRt to membeRs                                                                                                                                                                    Usaa 2007 RePoRt to membeRs         29
     CONSOLIDATED STATEMENTS OF INCOME                                                            CONSOLIDATED STATEMENTS OF NET WORTH

     Years Ended December 31 (Dollars in millions)               2007        2006        2005      Years Ended December 31 (Dollars in millions)                                                            2007                2006          2005

     Revenue                                                                                       Net Worth

     Insurance premiums                                      $
                                                                 9,324   $
                                                                             9,163   $
                                                                                         8,670     Beginning of year                                                                                    $
                                                                                                                                                                                                            13,141          $
                                                                                                                                                                                                                                11,182    $
     Investment income, net                                      1,825       1,551         981     Subscriber’s Savings Account distributions                                                               (430)               (371)            (346)
     Fees, sales and loan income, net                        2,254           1,865       1,618     Net income                                                                                               1,855            2,330            1,388
     Real estate investment income                                 241         313         318   » end of Year                                                                                      14,566                      13,141            11,182
     Servicing and contractual income on securitizations          362          212         93
     Other revenue                                                412          312        300
                                                                                                   Accumulated Other Changes in Net Worth from Nonowner Sources
» ToTal revenUe                                              14,418      13,416      11,980
                                                                                                   Beginning of year                                                                                          (17)               (26)                4
                                                                                                   Unrealized (losses)/gains on securities during year,
     Losses, Benefits and Expenses
                                                                                                     net of income taxes and reclassification adjustments                                                      30                  12               (39)
     Losses, benefit payments and loss adjustment expenses       7,509       6,737   6,894         Other adjustments (includes change in accounting principle)                                               (212)                (3)                9
     Deferred policy acquisition costs                            477         435         429    » end of Year                                                                                               (199)                (17)             (26)
     Real estate investment expenses                               123        254          241
                                                                                                 » ToTal neT worTh                                                                                  $
                                                                                                                                                                                                        14,367              $
                                                                                                                                                                                                                                13,124        11,156
     Interest expense                                            1,001        727         445
     Dividends to policyholders                                    153         149         148
     Other operating expenses                                    2,767       2,197   2,064
» ToTal losses, benefiTs and exPenses                        12,030      10,499      10,221
       Pre-tax income                                        2,388           2,917       1,759
     Income tax expense                                           533         587          371
                                                                                                  RATINGS OF FINANCIAL STRENGTH
» neT inCoMe                                                 $
                                                                 1,855   $
                                                                             2,330   $

                                                                                                                                           a++                                  aaa                                      aaa
                                                                                                  USAA PROPERTY
                                                                                                  & CASUALTY
                                                                                                  INSURANCE GROUP
                                                                                                                                               (Superior)                      (Exceptional)                          (Extremely Strong)
                                                                                                                                           A.M. Best Company               Moody’s Investors Service                      Standard & Poor’s

                                                                                                                                           a++                                      aa1                                  aaa
                                                                                                  USAA LIFE
                                                                                                                                               (Superior)                           (Excellent)                       (Extremely Strong)
                                                                                                                                           A.M. Best Company               Moody’s Investors Service                      Standard & Poor’s

                                                                                                  USAA FEDERAL
                                                                                                  SAVINGS BANK
                                                                                                                                           Top 20% of peer group                                             superior
                                                                                                                                                   Highline Banking Data Services                 IDC Financial Publishing Inc.

30   USAA 2007 REPORT TO MEMBERS                                                                                                                                                                                      USAA 2007 REPORT TO MEMBERS          31
     CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                    WE KNOW WHAT IT MEANS TO GIVE

                                                                                                              Every	year	USAA’s	employees	and	retirees	give	back	to	their	communities	with	selfless	gifts	of	time	
                                                                                                              and	money.	From	hundreds	of	thousands	of	volunteer	hours	to	more	than	98	percent	of	employees	
     Years Ended December 31 (Dollars in millions)                 2007           2006             2005
                                                                                                              giving	to	United	Way,	USAA	takes	pride	in	being	an	outstanding	corporate	citizen.

     Cash Flows from Operating Activities                                                                     Like	its	people,	USAA,	the	USAA	Federal	Savings	Bank	and	The	USAA	Foundation	give	back	and,		
     Net income                                                $
                                                                   1,855      $
                                                                                  2,330        $
                                                                                                   1,388      in	2007,	combined	to	distribute	$12.9	million	to	improve	our	communities.
     Adjustments to reconcile net income to net cash
       provided by operating activities:                                                                      Your	association	continues	to	make	life	better	for	people	from	all	walks	of	life	by	comforting	the		
          Increase in insurance reserves                            647               529            512      sick	and	wounded,	promoting	community	development,	aiding	medical	research	and	ensuring	the	
          Interest credited on policyholder deposits                380               350           338       success	of	community	campaigns	through	exceptional	participation	and	financial	generosity.
          Net realized (gains)/losses                               (315)            (272)          (74)
          Increase in premiums due from policyholders                 (11)            (70)         (118)
          Depreciation and amortization                              43                 54           188
          Equity earnings in real estate partnership                 (62)             (23)          (33)    » United Way                                         » Giving of Time
          (Increase) decrease in loans held for sale               (426)              145         (926)
          Change in other assets/liabilities                         112              (314)          186
                                                                                                              Employees and retirees pledged $4.9 million           In 2007, USAA employees and retirees
                                                                                                              to the 2007 United Way campaign. With                 reported 355,400 hours in community service.
       Net cash provided by operating activities                  2,223           2,729            1,461
                                                                                                              matched funds from The USAA Foundation,               Their family members joined them for
                                                                                                              we raised nearly $7.5 million to improve              another 61,400 volunteer hours, continuing
     Cash Flows from Investing Activities
                                                                                                              our communities and better the lives of those         the association’s spirit of giving back to
     Proceeds from investments sold or matured                20,866          14,626           9,886
     Cost of investments acquired                             (18,287)       (21,046)        (10,202)
                                                                                                              in need.                                              our communities.
     Net increase in bank loans                                (5,551)        (2,743)             (1,143)
     Other uses                                                       18               60          (204)
       Net cash used in investing activities                  (2,954)         (9,103)         (1,663)
                                                                                                             » Season of Sharing
     Cash Flows from Financing Activities                                                                     USAA’s Season of Sharing program, now in its 45th year, provides holiday cheer to thousands of
     Subscriber’s Savings Account distributions                    (430)             (371)        (343)      individuals and their families. In 2007, nearly 16,000 employees participated, delivering food and
     Net (repayment) borrowing of debt                             (359)             (184)    (1,410)        gifts to more than 18,300 individuals.
     Net increase in bank deposits                                4,824        5,655           3,490
     Other                                                           85                 89           (131)
       Net cash provided by financing activities                   4,120          5,189            1,606
       Net increase (decrease) in cash and cash equivalents       3,389           (1,185)      1,404         » Educational Initiatives                            » The USAA Educational Foundation
» Cash and Cash eqUivalenTs — beginning of Year                    2,191          3,376            1,972      Almost 4,000 employees, retirees and their            The USAA Educational Foundation distributed
» Cash and Cash eqUivalenTs — end of Year                     $
                                                                  5,580           $
                                                                                      2,191    $
                                                                                                              families assisted more than 6,000 students            nearly 3 million free publications to individuals,
                                                                                                              through USAA’s Community Educational                  organizations and military groups throughout
                                                                                                              Programs.                                             the country. Topics ranged from basic money
                                                                                                                                                                    management, to investing, to planning for a
                                                                                                                                                                    comfortable retirement.

32   USAA 2007 REPORT TO MEMBERS                                                                                                                                                              USAA 2007 REPORT TO MEMBERS   33

     Eighteen	accomplished	individuals	who	have	distinguished	themselves	through		
     their	military	and	civilian	careers	comprise	the	USAA	Board	of	Directors.	Board	members		
     conduct	regular,	formal	evaluations	of	the	CEO	and	corporate	performance.


     John P. Abizaid, Eileen M. Collins, John D. Buckelew, Patricia C. Barron, Thomas B. Fargo, Stephen B. Croker,
     Leslie G. Denend, Lester L. Lyles, Josue Robles, Jr., John H. Moellering, Daniel W. Christman, Marcelite J. Harris,
     Frederick M. Hamilton, Michael E. Ryan, Jay L. Johnson, Thomas P. Carney, William J. Hybl, Joseph C. Strasser, Sr.    USAA	Conference	Center,	San	Antonio,	Texas

34   USAA 2007 REPORT TO MEMBERS                                                                                                                USAA 2007 REPORT TO MEMBERS   35

 » Lt. General John H. Moellering, USA (Ret.)                           » Patricia C. Barron	                                                   » Lt. General Daniel W. Christman, USA (Ret.)                          » Colonel Leslie G. Denend, USAF (Ret.)
   Member	since	1959.	Elected	1996.                                     	 Member	since	1972.	Elected	2000.                                        Member	since	1963.	Elected	1995.                                       Member	since	1962.	Elected	1996.
   The former president and chief executive o∞cer of Lear Siegler         Barron is the board chair of Ultralife Batteries Corporation            Christman is senior vice president, international affairs, for the     A director of McAfee Inc. and VeriFone Corporation, Denend is
   Services Inc., Moellering is the founder of management                 and former professor at the Stern School of Business, New York          U.S. Chamber of Commerce. During his 36-year military                  the former president and chief executive o∞cer of Network
   consultancy JM Associates and is a member of the adjunct               University. She serves as a director of several corporations and is     career, Christman served as assistant to the Chairman of the           General Corporation. During his 20-year Air Force career, he
   faculty of the Kenan-Flagler Business School of the University         a trustee of several nonprofits that focus on her interests in          Joint Chiefs of Staff, U.S. representative to the North Atlantic       served on President Reagan’s economic policy staff, was a
   of North Carolina. He is a retired senior o∞cer whose 28-year          education and health. She also served as president of two               Treaty Organization’s Military Committee and member of the             member of President Carter’s National Security Council staff,
   U.S. Army career included key command assignments.                     Xerox divisions and as vice president, Business Operations              National Security Council staff in the O∞ce of the President.          and flew more than 190 combat missions. A distinguished
   Moellering was also a White House Fellow, Commandant at                Support. Barron graduated from Bedford College of Physical              He also served as Superintendent of the U.S. Military Academy          graduate of the U.S. Air Force Academy, he holds a master’s
   West Point, and assistant to the Chairman of the Joint Chiefs of       Education in the United Kingdom and holds a master’s degree             at West Point. He graduated first in his class from the U.S.           degree in business administration and a doctorate in
   Staff. A graduate of the U.S. Military Academy, Moellering holds       in business administration from Harvard Business School.                Military Academy, holds master’s degrees in public affairs             economics, public policy and business from Stanford University.
   a master’s degree in engineering from the University of                Vice	chair,	Finance	and	Audit	Committee.                                and civil engineering from Princeton University, and a juris           He was a Fulbright scholar in economics at the University of
   California, Berkeley, and is a graduate of the Stanford                                                                                        doctorate degree from George Washington University.                    Bonn and a White House Fellow under President Ford.
   Business School Marketing Management Course for Senior               » Colonel John D. Buckelew, USMC (Ret.)                                   Member,	Marketing	and	Programs	Committee.                              Member,	Marketing	and	Programs	Committee.
   Executives. Chairman	of	the	board	of	directors;	chair,	                Member	since	1964.	Elected	1994.
   Governance	and	Executive	committees;	ex	o∞cio	member,	                 Most recently director of administration for an international         » Colonel Eileen M. Collins, USAF (Ret.)                               » Admiral Thomas B. Fargo, USN (Ret.)
   Compensation	and	Benefits,	Finance	and	Audit,	and	Marketing	           law firm in Norfolk, Virginia, Buckelew is a graduate of the U.S.       Member	since	1978.	Elected	2007.                                       Member	since	1970.	Elected	2006.
   and	Programs	committees.                                               Naval Academy and served in the U.S. Marine Corps as a                  A former military instructor and test pilot, Collins was the           Fargo is president of Trex Enterprises and Chairman of Trex’s
                                                                          combat engineer o∞cer and as a data systems o∞cer. His final            first female pilot and first female commander of a space shuttle.      subsidiaries — Loea Corp., a leader in high-speed, high-
 » Maj. General Josue Robles, Jr., USA (Ret.)                             active-duty assignment was oversight of the defense budget              She has logged more than 6,751 hours in 30 different types of          bandwidth wireless communications; and Sago Systems Inc.,
   Member	since	1967.	Elected	2007.                                       and organization in the O∞ce of the Chairman, Joint Chiefs of           aircraft and more than 872 hours in space as a veteran of four         a defense and homeland security company. His 35-year Naval
   Robles is president and chief executive o∞cer of USAA. He              Staff. A Fulbright scholar at the University of Vienna and the          space flights. Collins earned a bachelor’s degree in mathematics       career included six assignments in Washington, D.C., and five
   also served as the executive vice president, chief financial o∞cer     University of Bonn, Buckelew holds a doctorate in history               and economics from Syracuse University, a master’s degree in           commands in the Pacific, Indian Ocean and Middle East.
   and corporate treasurer. From 1990 to 1994, Robles was a               from the University of California, San Diego. Member,	Executive	        operations research from Stanford University, and a master’s           He was the 20th o∞cer to hold the position of Commander
   member of the USAA Board of Directors. He joined USAA in               and	Finance	and	Audit	committees.	                                      degree in space systems management from Webster University.            U.S. Pacific Command and also served as the 29th commander
   1994 after 28 years of distinguished military service, which                                                                                   Member,	Finance	and	Audit	Committee.	                                  in chief of the U.S. Pacific Fleet. Fargo earned a bachelor
   included serving in Korea, Vietnam, Germany and the Middle           » Lt. General Thomas P. Carney, USA (Ret.)                                                                                                       of science degree from the U.S. Naval Academy and has
   East. He was the Director of the Army Budget and was the               Member	since	1963.	Elected	1997.                                      » Lt. General Stephen B. Croker, USAF (Ret.)                             additional business and related training from Harvard
   Commanding General, 1st Infantry Division (The Big Red One).           A graduate of the U.S. Military Academy, Carney is an                   Member	since	1963.	Elected	1996.                                       University and Stanford University. Member,	Compensation	
   Robles holds a bachelor of business administration degree in           independent consultant to the defense industry and chairman             An independent consultant, Croker trains o∞cers and their              and	Benefits	Committee.
   accounting from Kent State University and a master’s degree in         of CALIBRE Systems Inc. His last three Army assignments                 staffs from the 26 nations of NATO, as well as all U.S. military
   business administration from Indiana State University.                 were Deputy Chief of Staff for Personnel, Director of Program           services, in joint warfare. During his Air Force career, Croker      » Captain Frederick M. Hamilton, USCG (Ret.)
   Member,	Governance	and	Executive	committees.                           Analysis and Evaluation, and commander of the 5th Infantry              served with the Air Combat Command and the Strategic Air               Member	since	1965.	Elected	1998.
                                                                          Division. After a 31-year military career, he served as Deputy          Command, and commanded the 8th Air Force at Barksdale                  Hamilton was a recognized leader in the telecommunications
 » General John P. Abizaid, USA (Ret.)                                    Librarian of Congress, where he was chief executive o∞cer.              Air Force Base, Louisiana. He served in the O∞ce of the                infrastructure industry and played a major role in shaping that
   Member	since	1973.	Elected	2007.                                       Carney earned a master’s degree in operations research and              Chairman of the Joint Chiefs of Staff and was the military             industry’s new competitive market. He was formerly a vice
   Abizaid’s 34-year Army career included serving as the                  systems analysis from the U.S. Naval Postgraduate School.               assistant to the President’s special emissary on POW and MIA           president of network construction and maintenance for Tyco
   Commander of the United States Central Command,                        Chair,	Marketing	and	Programs	Committee;	member,	                       affairs. A U.S. Air Force Academy graduate, Croker earned a            Telecommunications in Morristown, New Jersey. The company
   overseeing American military operations in a 27-country                Governance	and	Executive	committees.	                                   master’s degree in international relations from Georgetown             designed, manufactured and installed, as well as owned and
   region, from the Horn of Africa, the Arabian Peninsula, and                                                                                    University and a master’s degree in business administration            operated, fiber optic telecommunications submarine cable
   South and Central Asia, covering much of the Middle East while                                                                                 from Golden Gate University. Chair,	USAA	Advisory	Panel;	              systems. During almost 27 years of military service, Hamilton
   supervising 250,000 U.S. troops. A graduate of the U.S.                                                                                        member,	Finance	and	Audit	Committee.                                   held key command and staff positions in the U.S. Coast Guard.
   Military Academy at West Point, Abizaid holds a master’s                                                                                                                                                              An honors graduate of the U.S. Coast Guard Academy, Hamilton
   degree in area studies from Harvard University, and was                                                                                                                                                               holds a master’s degree in naval architecture and marine
   an Olmsted scholar at the University of Jordan. Member,	                                                                                                                                                              engineering and a master’s degree in mechanical engineering from
   Marketing	and	Programs	Committee.                                                                                                                                                                                     Massachusetts Institute of Technology (MIT). He also earned
                                                                                                                                                                                                                         a master’s degree in management from the MIT Sloan School
                                                                                                                                                                                                                         of Management. Member,	Finance	and	Audit	Committee.

36   USAA 2007 REPORT TO MEMBERS                                                                                                                                                                                                                            USAA 2007 REPORT TO MEMBERS     37
     BOARD OF DIRECTORS BIOGRAPHIES                                                  (continued)                                              ExECUTIVE COUNCIL                                (as	of	March	1,	2008)

                                                                                                                                              The	day-to-day	operations	of	USAA’s	companies	and	staff	agencies	are	managed		
 » Maj. General Marcelite J. Harris, USAF (Ret.)                        » General Lester L. Lyles, USAF (Ret.)
                                                                                                                                              by	the	nine	members	of	USAA’s	Executive	Council.
   Member	since	1967.	Elected	1993.                                       Member	since	1968.	Elected	2004.
   Harris is a founder, president and chairman of the board of            Lyles is an independent technology consultant, partner in
   National Urgent Care Centers. She is also the former chief of          Four Seasons Ventures and member of the NASA Advisory
   staff to the chancellor of the New York City Department of             Council. He is also a director of Analytic Services Inc., Batelle
   Education and was logistics process director and Florida site          Memorial Institute, Dayton Power & Light, General Dynamics
   director of United Space Alliance. During her 31-year                  Corp., KBR Corp. and MTC Technologies Inc. During his
   U.S. Air Force career, Harris was the first woman aircraft             35-year military career, this distinguished graduate of the Air
   maintenance o∞cer, one of the first two women air o∞cers               Force ROTC program served as commander of the Air Force
   commanding at the U.S. Air Force Academy, and the first                Materiel Command, vice chief of staff of the headquarters of
   woman deputy commander for maintenance for the U.S. Air                the U.S. Air Force, director of the Ballistic Missile Defense
   Force. Harris holds a bachelor’s degree in speech and drama,           Organization and commander of the Space and Missile Systems
   and an honorary doctorate degree of humanities from Spelman            Center. Lyles received a bachelor’s degree in mechanical
   College. She also holds a bachelor’s degree in business                engineering from Howard University. He received a master’s
   management from the University of Maryland. Member,	                   degree in mechanical and nuclear engineering, as well as an
   Marketing	and	Programs	Committee.                                      honorary doctor of laws, from New Mexico State University.
                                                                          Vice	chair,	Marketing	and	Programs	Committee.
 » William J. Hybl	
 	 Member	since	1969.	Elected	1994.                                     » General Michael E. Ryan, USAF (Ret.)
   Hybl is chairman and chief executive o∞cer of the El Pomar             Member	since	1964.	Elected	2002.
   Foundation, which makes grants for education, health care, the         Ryan was the 16th Chief of Staff of the U.S. Air Force. He is
   environment, amateur sports, human services and the arts. A            now the president of the consulting firm Ryan Associates,
   former member of the Colorado House of Representatives, and            focused on national defense. During his Air Force career, he
   currently vice chairman of the Broadmoor Hotel Board of                flew more than 150 combat missions and commanded at all
   Directors, Hybl also served as president of the U.S. Olympic           levels, from squadron through major command. He served as
   Committee from 1991–1992 and 1996–2000 and currently                   the NATO Air Commander, directing combat operations in
   serves as president emeritus. After graduation from Colorado           Bosnia. A graduate of the U.S. Air Force Academy, Ryan earned
   College and the University of Colorado Law School, Hybl                a master’s degree in business administration from Auburn
   became an o∞cer in the U.S. Army. He was the U.S.                      University and completed the National Security Program at
   representative to the 56th General Assembly of the United              Harvard University. Vice	chair,	USAA	Advisory	Panel;	member,	
   Nations for 2001–2002. Vice	chair,	Compensation	and	Benefits	          Compensation	and	Benefits	Committee.
   Committee;	member,	Executive	Committee.	
                                                                        » Rear Admiral Joseph C. Strasser, Sr., USN (Ret.)
 » Admiral Jay L. Johnson, USN (Ret.)                                     Member	since	1964.	Elected	1998.
   Member	since	1968.	Elected	2000.                                       Strasser is the former executive director of the Naval War
   Johnson is chief executive o∞cer of Dominion Virginia Power,           College Foundation in Newport, Rhode Island, and former
   a subsidiary of Dominion Resources Incorporated in Richmond,           dean of Pennsylvania State University’s Commonwealth                                                                                               USAA	Headquarters,	Lobby	Entrance,	San	Antonio,	Texas
   Virginia. As such, he is responsible for electric transmission and     College. During his 32-year Naval career, he commanded a
   distribution services for 2.4 million customers in Virginia and        frigate, a destroyer squadron, a cruiser-destroyer group and        FROM LEFT TO RIGHT:
   North Carolina, as well as competitively priced energy and             the U.S.S. Enterprise carrier battle group. He also served as
                                                                                                                                              Wendi E. Strong             F. David Bohne               Steven A. Bennett            Stuart Parker                 Josue Robles, Jr.
   related services to another 1.6 million customers in 11 states.        executive assistant to the Chairman of the Joint Chiefs of Staff
                                                                                                                                              Executive	Vice	President,   President,		                 Executive	Vice	President,	   President, USAA               President	and	Chief		
   A U.S. Naval Academy graduate and carrier aviator, he                  and as president of the Naval War College. A U.S. Naval             Corporate                   USAA Federal                 General	Counsel	&		          Property & Casualty           Executive	O∞cer
   culminated a 32-year Naval career with service as 26th Chief of        Academy graduate, Strasser earned master’s degrees in               Communications              Savings Bank                 Corporate	Secretary          Insurance Group
   Naval Operations and as a member of the Joint Chiefs of Staff          international relations and international law and diplomacy,
   from 1996 to 2000. Johnson serves on the board of directors at         and a doctorate in political science, all from Tufts University.
                                                                                                                                              Christopher W. Claus        Elizabeth D. Conklyn         Kristi A. Matus              Wayne Peacock
   General Dynamics. Vice	chairman	of	the	board	of	directors;	            Chair,	Finance	and	Audit	Committee;	member,	Governance	             President,	USAA		           Executive	Vice	President,	   Chief	Financial	O∞cer        Executive	Vice	President,		
   chair,	Compensation	and	Benefits	Committee;	vice	chair,	               and	Executive	committees.                                           Financial Services Group    People Services                                           Enterprise Business
   Governance	and	Executive	committees.                                                                                                                                                                                             Operations

38   USAA 2007 REPORT TO MEMBERS                                                                                                                                                                                                                              USAA 2007 REPORT TO MEMBERS   39
     ADVISORY PANEL                                                                                                                                                                               Additional Information                                                                       Watch the video version of this report, including
                                                                                                                                                                                                                                                                                               messages from the Chairman and the CEO,
                                                                                                                                                                                                  USAA HEADqUARTERS                      ANNUAL MEETING OF                                     at USAA.COM/REPORTTOMEMBERS.

                                                                                                                                                                                                  usaa                                   USAA MEMBERS
     USAA’s	14-member	Advisory	Panel	includes	members	of	all	ages	and	from		                                                                                                                      9800 Fredericksburg Road               saturday, November 15, 2008
                                                                                                                                                                                                  san antonio, Texas 78288               9 a.m. (Pacific standard Time)
     all	walks	of	life.	Panel	members	provide	candid	and	valuable	feedback	about	                                                                                                                 (800) 531‑8646                         The Fairmont Olympic Hotel
     USAA’s	products,	services,	marketing	campaigns	and	delivery	methods.                                                                                                                         (annual report inquiries only)         411 university street
                                                                                                                                                                                                                                         seattle, Wa 98101
                                                                                                                                                                                                  INDEPENDENT PUBLIC
                                                                                                                                                                                                  ACCOUNTANTS                            THE USAA
                                                                                                                                                                                                  Ernst & Young LLP                      EDUCATIONAL FOUNDATION
                                                                                                                                                                                                  san antonio, Texas                     usaa
                                                                                                                                                                                                  usaa is not a publicly held            9800 Fredericksburg Road
                                                                                                                                                                                                  company and does not file an           san antonio, Texas 78288
                                                                                                                                                                                                  sEC form 10‑K.               

        Marcelite Harris             Stephen Croker              Carolyn Auman            Veronica Bandrowsky            Jabari Craddock
              Chair                      Vice Chair               Daughter of an            Chief Warrant O∞cer              Captain
       USAA Advisory Panel          USAA Advisory Panel            Army o∞cer                 U.S. Coast Guard          Army National Guard
        Maj. General (Ret.)          Lt. General (Ret.)        Santa Cruz, California      Cape May Court House,       Durham, North Carolina
          U.S. Air Force               U.S. Air Force           Member	since	1992                New Jersey              Member	since	1997
        Rockledge, Florida         Chestertown, Maryland                                     Member	since	1998                                                                                    Regulatory Disclosures
        Member	since	1967            Member	since	1963
                                                                                                                                                                                                  Each company has sole financial responsibility for its own products.        OTHER

                                                                                                                                                                                                  “usaa” and “association” mean united services automobile                    Investments/Insurance:
                                                                                                                                                                                                   association and its affiliates. Property and casualty insurance            Not FDIC Insured • Not Bank Guaranteed • May Lose Value
                                                                                                                                                                                                   provided by united services automobile association, usaa Casualty          BusinessWeek March 5, 2007 issue; BusinessWeek March 3, 2008 issue.
                                                                                                                                                                                                   Insurance Company, usaa General Indemnity Company, Garrison
                                                                                                                                                                                                   Property and Casualty Insurance Company, usaa County Mutual                a++ (superior) from a.M. Best Co., highest of 16 possible ratings;
                                                                                                                                                                                                   Insurance Company, usaa Texas Lloyds Company and usaa Ltd.                 aaa (Exceptional) from Moody’s Investors service, highest of
                                                                                                                                                                                                   (Europe), san antonio, TX, and is available only to persons eligible for   21 possible ratings; aa1 (Excellent) from Moody’s, second highest
                                                                                                                                                                                                   P&C group membership. Investments provided by usaa Investment              of 21 possible ratings; aaa (Extremely strong) from standard &
                                                                                                                                                                                                   Management Company and usaa Financial advisors Inc., both                  Poor’s, highest of 21 possible ratings.
         Carolyn DeKok                Matthew Duffy              Deanna George                 Andrew Kelly             Patricia Lawrence                                                          registered broker dealers. Life insurance and annuities provided by         The usaa Foundation and The usaa Educational Foundation (the
            Widow of an               Lt. Commander                Married to a              Son of a Naval o∞cer      Senior Master Sergeant                                                      usaa Life Insurance Company, san antonio, TX, and in New York by           “Foundations”) are nonprofit organizations sponsored by usaa.
          Air Force o∞cer                U.S. Navy              Marine Corps o∞cer         San Francisco, California      Air Force Reserve                                                        usaa Life Insurance Company of New York, Highland Falls, NY.                The Foundations do not endorse or promote any commercial supplier,
                                                                                                                                                                                                   Financial planning services and financial advice provided by usaa           product or service.
     Colorado Springs, Colorado      Norfolk, Virginia          Papillion, Nebraska           Member	since	1993          San Antonio, Texas
                                                                                                                                                                                                   Financial Planning services Insurance agency Inc. (known as usaa
         Member	since	1968           Member	since	1995          Member	since	1993                                        Member	since	1993
                                                                                                                                                                                                   Financial Insurance agency in California), a registered investment
                                                                                                                                                                                                   adviser and insurance agency and its wholly owned subsidiary, usaa

                                                                                                                                                Principal Photography: Paul Elledge Photography
                                                                                                                                                                                                   Financial advisors Inc., a registered broker dealer. Merchandise
                                                                                                                                                                                                   provided by usaa Merchandise services Company. alliance services
                                                                                                                                                                                                   provided through usaa alliance services L.P. Credit cards provided
                                                                                                                                                                                                   by usaa savings Bank. Other banking products provided by usaa
                                                                                                                                                                                                   Federal savings Bank. Both Member FDIC.

                        Flora Orahood               Jason Ross                 Stephen Sheehy               Debra Strickland                                                                      MEMBER
                      Married to a retired     Son of an Air Force o∞cer            Colonel              Command Sergeant Major                                                                    The term “member” generally refers to current usaa customers who
                        Army o∞cer             Murfreesboro, Tennessee           U.S. Air Force                U.S. Army                                                                           are eligible for property and casualty insurance, and their spouses
                      Anderson, Indiana           Member	since	1998           Beale Air Force Base,        Woodbridge, Virginia                                                                    and children who are current usaa customers. use of the term
                                                                                                                                                Design: VSA Partners Inc.

                                                                                                                                                                                                  “member” does not convey any legal, eligibility or ownership rights.
                      Member	since	1968                                            California               Member	since	1999
                                                                                                                                                                                                   To be a member of the usaa property and casualty insurance group,
                                                                               Member	since	1980
                                                                                                                                                                                                   individuals must meet certain eligibility requirements and purchase a
                                                                                                                                                                                                   usaa property or casualty insurance group policy. Eligible parent
                                                                                                                                                                                                   must purchase property and casualty insurance for eligibility to pass
                                                                                                                                                                                                   down to children. Ownership rights are limited to policyholders of
40   USAA 2007 REPORT TO MEMBERS                                                                                                                                                                   united services automobile association.
                                         PRSRT STD
                                        U.S. POSTAGE
             9800 Fredericksburg Road       USAA
             san antonio, Texas 78288



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