What kind of company is USAA?
I'm a member with USAA. My membership eligibility is based on family membership.
I'm a little bit confused about what kind of company USAA is. I have the general idea that it is a company that generally exists for the benefit of its members, but at the same time, it is not a credit union.
What kind of company is USAA? Is it a for-profit company like any other bank / insurance company, or is it different somehow?
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The United Services Automobile Association has a funny legal structure: it's not a corporation and has no shareholders. Policyholders and account holders are paid any profits. In that respect, it functions very much like a credit union; technically, it's structured as
a Texas-based and Texas Department of Insurance regulated unincorporated reciprocal inter-insurance exchange and Fortune 500 financial services company offering banking, investing, and insurance to people and families that serve, or served, in the United States military.
en.wikipedia.org/wiki/USAA
Normally a company like this is a corporation so that its owners can benefit from limited liability: otherwise, if the company loses millions or billions, any one of the individual owners / members could be held liable for paying those millions and billions! However, the Texas laws which govern them as a Texas-based inter-insurance exchange also serve to limit the liability of members.
The banking services are provided by the USAA Federal Savings Bank, which is structured as a (drumroll) federal savings bank. They also own a couple of other random businesses.
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