USAA Purchases Land in Phoenix for Western Operations Center

30 December 1999

USAA Purchases Land in Phoenix for Western Operations Center

    SAN ANTONIO--Dec. 29, 1999--USAA Chairman and CEO Robert T. Herres announced today that Phoenix is the site for the company's new western operations center.
    Today, the insurance and financial services company purchased approximately 575 acres, consisting of 481.5-acres of state-owned land put up for public auction by the Arizona State Land Department and 92 adjacent acres purchased in a private transaction. These properties are located in northern Phoenix at IH-17 and Happy Valley Road.
    USAA serves the United States military and their families as the nation's 6th largest personal lines insurer, which includes the private passenger auto and homeowners lines of business. It also offers mutual funds, brokerage accounts, life and health insurance, banking services and other member services.
    The association expects its membership to increase from the 3.5 million members it now serves to more than 5 million in the next five years, and to 7 million in 10 years. This growth projection stems from: the decision to offer property and casualty insurance and other USAA products and services to enlisted military personnel; increases in the number of associate members (former dependents of members); new product offerings; and greater volumes in investments and banking services and in life and health insurance.
    The growth in membership will result in growth in the employee base. This growth is necessary to accommodate increasing business volumes and sustain maintenance of high quality service. Furthermore, establishing the new Phoenix facility assures uninterrupted service to members should the San Antonio-based operations experience a disruption for any reason.
    "We considered more than 300 possible locations around the country and applied an extensive set of criteria in our selection process," said Herres. "The list was comprehensive and we weighed each factor carefully. When all was said and done, Phoenix was our clear first choice."
    This parcel of land in Phoenix and the infrastructure associated with it will provide USAA with an ideal building location for near-term plans and a great deal of flexibility for future expansion. This location also provides a significant presence in the western time zones that allows USAA to better serve its members.
    "As we looked at the attributes of the various candidate communities, we sought a location that offered good schools and educational opportunities, the availability of excellent health care, a moderate cost of living, ease of transportation and many other factors that would contribute to the overall quality of life for our employees. These factors are important in attracting a high-quality work force that will be committed to our unique culture," said Herres.
    "And of course we looked at the number of members who reside in the area. We have more than 73,000 members in Arizona with 58,000 in the Phoenix area alone," Herres added. "This is only a beginning, and we have a lot of work ahead of us. We are extremely pleased with our reception and we look forward to our future as a corporate citizen in this city and this state."



     Time Line

--   Construction of an interim facility is expected to begin in 2000.

--   The first contingent of support employees and business managers
     to occupy the interim facility could be in place in 2001.

--   Construction on the main facility is targeted to begin in 2001,
     with first occupancy projected for year-end 2002.

--   All building designs are in the early planning stages.

USAA has been serving present and former members of the U.S. military and their families for more than 77 years and has become one of America's leading insurance and financial services companies. The association, well known for its exceptional service delivery to members, offers its 3.5 million members and associate members a full range of insurance, banking and investment products and services designed to help them meet their financial security needs. Headquartered in San Antonio with offices throughout the United States and Europe, USAA owns or manages assets of more than $56.8 billion.