USAA announces layoffs | Insurance business America
Job cuts necessary to meet changing business needs, says a spokesman
Insurance News
By Kenneth Araullo
USAA has announced 220 job cuts as part of adjustments to adapt to evolving business needs and address the ongoing trend of layoffs in the industry, a company spokesperson confirmed.
Roger Wildermuth, USAA spokesman, declined to specify which roles would be affected by the cuts. However, he noted that the company is actively hiring and has filled about 2,900 positions so far in 2024.
Wildermuth emphasized that the changes are necessary to maintain the health of the company and ensure that the company can continue to offer competitive prices to its members.
As part of the cuts, USAA said it would provide support to affected employees to help them find new employment opportunities both inside and outside the company.
The layoffs at USAA follow a broader industry trend as several insurers have also reduced their workforces due to disappointing underwriting results and rising claims costs, particularly impacting private insurers.
According to AM Best, industry dynamics such as advancing technology, consolidation, realignment strategies, investor concerns and distribution shifts have all played a role in the layoffs. Last year, GEICO and Farmers Insurance also announced major layoffs, resulting in reductions of 6% and nearly 11% of their respective workforces, respectively.
Despite these challenges, AM Best noted that USAA is still a leading insurer in the United States and is among the top five writers of homeowners’ multi-peril insurance and personal automobile insurance.
In 2022, USAA experienced a significant financial change, posting a net loss of $1.28 billion compared to a net profit of $3.37 billion the previous year, which Wayne Peacock, USAA president and CEO and CFO, said as one One of the most challenging operating periods in decades was described by Jeff Wallace.
Currently, USAA has a Best’s Financial Strength Rating of A++ (Superior), reflecting its strong financial stability.
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2024-04-12 09:47:30
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