Fitch Ratings has affirmed the Insurer Financial Strength (IFS) ratings of In a release on
Key Rating Drivers
Fitch views the company's continued capital growth as a fundamental strength of the company. USAA expanded its statutory surplus by 11 percent to
USAA reported statutory earnings of
USAA CapCo represents approximately one-fourth of consolidated GAAP revenue and capital. USAA maintains a support agreement with USAA CapCo, which requires that USAA maintain
The asset quality of USAA FSB remains generally favorable when compared to banking peers, but rapid growth in the banking operations could lead to future deterioration. The bank remains well- capitalized with a Tier 1 risk-based capital ratio of 13.1 percent as of
Fitch views the strategic category of
Key rating triggers that could lead to a downgrade include:
--Further significant growth in banking and other non-insurance operations, such that USAA CapCo becomes a more significant part of USAA as a whole, as measured by one-third of consolidated GAAP revenue and/or capital;
--A material deterioration in balance sheet strength, including net statutory leverage - defined as net written premiums and liabilities divided by surplus -above 2.0x for property/casualty operations and 2.7x excluding surplus for affiliated life insurance subsidiaries and
--Sharp and sustained weakening of underwriting results;
--TFC ratio, including banking liabilities, at or above 3.5x.
Fitch has affirmed the following ratings with a Stable Outlook:
--IDR at 'AAA';
--Short-term IDR and commercial paper at 'F1+';
Primary insurance companies:
--IFS at 'AAA'.
Additional information is available at 'fitchratings.com'.
--'Insurance Rating Methodology' (November 2013).
Insurance Rating Methodology -- Amended
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Fitch Ratings has affirmed the Insurer Financial Strength (IFS) ratings of
In a release on