USAA, the insurance firm with a bank that has received regulatory pushback, has named a board member and longtime insurance executive as its next CEO.
Juan Andrade, who's been on USAA's board since retiring from the insurer Everest Group in 2020, will be tasked with repairing the company's standing with bank regulators.
The company's banking division, USAA Federal Savings Bank, has
Andrade will replace Wayne Peacock, who became CEO in 2020 after spending three decades at the San Antonio-based company and
Jim Zortman, USAA's board chairman and a retired vice admiral, said Andrade has the "right expertise, vision and leadership" to lead the company.
"We know he will continue his track record of building high-performing teams and enhance USAA's legacy of service," Zortman said.
Andrade was previously president and CEO at the insurance and reinsurance firm Everest Group, which he led until January 2020. He had also been president of the insurer Chubb's international businesses, chief operating officer at the insurer The Hartford and a general manager at Progressive.
He's also worked in government, where he's focused on national security and drug policy. Past roles include ones at the White House Office of National Drug Control Policy, the Defense Department and the Drug Enforcement Administration.
As a USAA board member, Andrade has been part of committees focused on its member relationships, risk, financials and technology.
While USAA's insurance financials have remained strong, a
The Office of the Comptroller of the Currency, the primary federal regulator of USAA's bank, penalized the company last month over what it deemed were "comprehensive" issues and forced it to make a series of improvements. It was the agency's third major public enforcement action against the $110 billion-asset bank in five years.
In a statement last month, USAA said that although its "progress has not been consistent or swift enough, the Bank is well-positioned to complete this work."
"With a stronger foundation in place to prevent and mitigate risk, we will continue to enhance our capabilities and processes to ensure we consistently serve our members with excellence," the company said.
In Wednesday's announcement, Andrade said he's "honored to lead USAA in its second century of service." A group of Army officers founded USAA in 1922, and in the decades since it's become a household name for insurance and banking.
"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.
Zortman, the USAA board chairman, also called the outgoing CEO a "transformational leader who has propelled USAA forward." Peacock has "positioned the association to meet members' needs for generations to come," Zortman said.
