San Antonio-based USAA has named Juan Andrade as its next president and CEO, effective April 2, the company announced Wednesday.
Andrade, a USAA board member for the past four years, joins the company from Everest Group, where he has served as president and CEO since January 2020.
Andrade will succeed Wayne Peacock, who announced his retirement last August.
“USAA is a special association, and the board took great care to find someone with the right expertise, vision and leadership,” USAA board chair Jim Zortman said in a statement Wednesday. “Juan has a deep respect for our men and women in uniform, having served alongside them to help safeguard our national security.”
The incoming CEO will face challenges in California’s insurance market, particularly as wildfires ravage the Los Angeles area.
“We have not pulled back with our members in California, particularly active-duty members,” Andrade told CNBC on Thursday. “For us, that commitment to provide world-class service to them absolutely remains, and that is the focus for our claims operation as they're being deployed right now to deal with these kinds of issues.”
During his tenure at Everest, a provider of insurance and reinsurance solutions, Andrade reshaped the company to a “more globally diversified enterprise with a focus on profitability, efficiency and risk management,” USAA said in Wednesday’s release.
In his new role, Andrade is expected to continue his record of building high-performing teams, Zortman said. Andrade will lead USAA’s efforts to enhance member service, drive innovation, and further strengthen its position as a leader in financial services for military families, the company said.
“I’m excited to build upon USAA’s legacy and continue innovating to add value to our members’ experiences and help more military families achieve financial security,” Andrade said in a statement. “Witnessing firsthand the outstanding service the team provides to our courageous service men and women, I am honored to lead USAA in its second century of service.”
USAA’s board in August said it would evaluate internal and external candidates while Peacock ensures a smooth transition.
While on USAA’s board, Andrade has served on committees focused on members, risk, financials and technology and as vice chair of the company’s advisory panel.
In Andrade, USAA returns to tradition in choosing a leader with a military background. Peacock, who has worked for USAA for 36 years, was the company’s first CEO who did not serve in the armed forces.
“Wayne is a transformational leader who has propelled USAA forward, advocated for the military community and their families and fostered an environment where employees can be a part of something bigger than themselves,” Zortman said in a statement.
Peacock was instrumental in increasing the minimum wage of USAA’s workers from $16 to $21 per hour, along with providing other comprehensive family support assistance.
Last year, before Peacock announced his retirement, USAA announced some leadership changes. These included CFO Jeff Wallace filling the chief audit executive role; Brett Seybold, senior vice president and senior financial officer for USAA’s property and casualty business, becoming CFO; and welcoming Tami Cabaniss as the new chief human resources officer.
USAA also is facing regulatory and legal challenges. The Office of the Comptroller of the Currency last month issued USAA a cease-and-desist order directing the company’s banking unit to fix “a range of deficiencies” related to management, earnings, information technology, consumer compliance and internal audit and suspicious activity reporting violations. The order also limits USAA from adding some new products or services and puts restrictions around its ability to expand its membership criteria.
USAA in August agreed to pay $64.2 million to settle a class-action lawsuit alleging that its banks overcharged service members and veterans on interest rates and fees while giving products they did not request.
