USAA Group says 2012 was its second-costliest year ever for catastrophe losses—$1.1 billion on 196,000 claims.
But the reciprocal exchange increased yearly net profit 33 percent over 2011, which was the company's costliest year for catastrophe claims at $1.4 billion.
USAA says its net income for 2012 was $2.83 billion, compared to $2.13 billion in 2011.
In a report to members, USAA says it was able to close 93 percent of 2012's claims before Dec. 31.
“We were on the scene quickly to take care of our members, assess the damage and handle claims promptly and efficiently,” says CEO Joe Robles Jr. in a letter to its members. He says the insurer was able to settle claims from Superstorm Sandy in the Northeast and the Waldo Canyon wildfire in Colorado “even before some members were able to get back to their neighborhoods,” adds Robles.
About 1.3 million members, or policyholders, live in areas that were affected by Sandy when it made landfall Oct. 29, 2012 at Southern New Jersey. USAA says it issued 1,000 claims payments with 24 hours of landfall.
Offsetting the high catastrophe losses were solid investment returns and additional premiums. USAA booked a return on investments of $3.37 billion, compared to $2.91 billion in 2011.
Insurance premiums in 2012 were up nearly 9 percent over the prior year to $13.03 billion.
Total yearly revenue for 2012 was $20.73 billion, up from $19.04 billion in 2011.
The insurer says 98 percent of members stayed with USAA in 2012.
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