USAA is headquartered in San Antonio and employs 34,000 workers worldwide.
USAA is headquartered in San Antonio and employs 34,000 workers worldwide. Credit: Scott Ball / San Antonio Report

USAA may be taking another step toward focusing its business squarely on insurance, according to reporting by The Wall Street Journal.

The San Antonio-based financial services company is in talks to deal its wealth management and brokerage businesses to the Charles Schwab Corp. for $2 billion, according to the newspaper. The report comes just months after USAA sold its investment management company to Victory Capital Holdings in November for $850 million. That deal, which spun off USAA’s mutual fund and exchange-traded fund businesses as well as its college savings plan, was finalized earlier this month.

USAA spokesman Matt Hartwig declined to comment on the report, stating the company remains “focused on our mission and our members.”

USAA sells home, life, and auto insurance in addition to offering banking, financial advice, retirement products, and investment services to military members, veterans, and their families. USAA has more than 12.8 million members, according to its website.

One of the largest brokerage firms in the United States, Charles Schwab has been extending its reach beyond its discount-brokerage origins to offer more wealth management services.

The corporation was worth $53.8 billion as of the end of trading Monday. The Wall Street Journal reported acquiring USAA’s wealth management operations would add about $100 billion of assets to Charles Schwab’s approximately $3.6 trillion in client assets.

Reached by phone Monday, Charles Schwab spokeswoman Mayura Hooper said, “It’s our policy not to comment on market rumors or speculation.”

Citing people familiar with the matter, the Journal reported a deal could be finalized later this month.

JJ Velasquez

JJ Velasquez

JJ Velasquez is a columnist at the San Antonio Report. A former reporter and editor at the SA Report, he currently works as a project manager for New York City-based Advance Local.