USAA CEO Robert G. Davis Named Chairman-Elect; Chairman General Robert T. Herres to Step Down Oct. 2002

    SAN ANTONIO--Dec. 13, 2001--USAA has announced its board of directors has appointed Robert G. "Bob" Davis to the position of chairman-elect of the association.
    Davis will continue as chief executive officer and will succeed General Robert T. Herres, chairman of the board, who will step down at USAA's Annual Members Meeting on Oct. 5, 2002.
    Herres announced the decision to USAA employees at the association's monthly management meeting, held yesterday at its San Antonio headquarters and broadcast by satellite to its offices throughout the country. Herres said Davis' appointment was the culmination of years of succession planning begun shortly after Herres took office as chairman and CEO in 1993.
    "Throughout his career at USAA, Bob Davis has had the complete confidence of USAA's board of directors. As CEO, he has guided USAA to market and financial strength that are the envy of our industry, even through some of the most volatile economic periods in recent history," Herres said. "Bob has not only led this organization to outstanding operating results, but he is an extraordinary change agent and a true leader who cares deeply about USAA's members and employees."
    USAA's market share, assets under management, net worth and earnings continue to grow in the midst of very difficult industry and economic conditions. As evidence of its ongoing financial strength, USAA has maintained top ratings from the three major rating agencies.
    "It has always been a privilege to serve USAA's members and I am honored to take on this additional role," said Davis. "I am committed to furthering the mission and vision set forth by General Herres and to ensuring USAA remains a world-class financial services company."
    The son of a career naval officer, Davis is the most decorated combat veteran to lead USAA. He served for seven years on active duty in the U.S. Army as a field artillery unit commander and attack helicopter flight commander. He led 685 combat flight missions in Vietnam from 1969 to 1970, for which he was awarded the Silver Star, two Distinguished Flying Crosses, 26 Air Medals, the Bronze Star, the Vietnam Cross of Gallantry and the Purple Heart. In 2000, he was inducted into the U.S. Army Field Artillery Officer Candidate School Hall of Fame.
    Davis joined USAA in 1996 and was named president and chief executive officer in April 2000. Prior to his career at USAA, Davis served as president and CEO of Bank One, Columbus.
    General Herres has served on the USAA board since 1983. He joined the USAA management team in 1990 after retiring from a 36-year career in the Air Force. His last military assignment was as vice chairman of the Joint Chiefs of Staff, the nation's second highest-ranking military officer. General Herres' first assignment at USAA was as president of USAA's property and casualty insurance company. In January 1992, he was named chief operating officer for insurance and information services. He became the president and attorney-in-fact in September of 1992, and chairman and CEO in 1993, serving in that capacity until he turned the reins of management over to Davis last year.
    USAA has been serving military families since 1922 and has become one of America's leading financial services companies. The association, well known for its exceptional service, offers its 4.7 million members a comprehensive range of insurance, banking and investment products and services designed to help them meet their financial needs. Headquartered in San Antonio, with offices throughout the United States and Europe, USAA owns or manages assets of more than $62.5 billion.