Wednesday, May5,2021|Section B| Express-News|ExpressNews.com USAA’s Lone Star makeover to cost value up $709 million, start this year by $5B during pandemic

Insurer defends strong finances assailed by critic

By Patrick Danner STAFF WRITER

While the pandemic caused a financial toll for many last year, San Antonio insurer and financial services company USAA pros- pered. USAA reported its net worth — its assets minus liabilities — jumped more than $5 billion, or 14.5 percent, to end 2020 at an all- time high of $40.4 billion. The company considers net worth a measure of its financial strength. USAA’s 2020 results left Doug- las Heller, an advocate at the Con- sumer Federation of America, be- wildered. “It doesn’t seem like a year in which an insurance company should have significantly im- proved its already strong financial situation when its members’ fi- Photos courtesy Lake|Flato Architects nancial situation became more Demolition for the Lone Star District is slated to begin this year. The project will be built over the course of a decade. precarious than ever,” Heller said. The increase in USAA’s net Community ‘really looking forward’ to a new place to work and play worth suggests it “took too much advantage of the pandemic’s im- pact on its policyholders,” Heller By Madison Iszler added. STAFF WRITER USAA members saved the com- pany money by driving fewer The makeover of the former Lone Star miles and getting in fewer acci- Brewery complex will cost $709.3 million dents due to the COVID-19 shut- and encompass over 1 million square feet down. That resulted in a $2.7 bil- of space, with demolition for the first lion drop in non-catastrophe loss- phase slated to begin this year. es. Houston-based developer Midway and In response, USAA paid $1.1 bil- local firm GrayStreet Partners plan to lion in special dividends in three turn the 32-acre property — the site of a rounds to auto policyholders last fire less than two weeks ago – into a year. In total, the company issued mixed-use development. almost $1.3 billion — another re- It will include 1,282 rental units,186 ho- cord — in dividends to policyhold- tel rooms, 359,052 square feet of offices, ers, compared with $186 million 38,312 square feet of commercial space, in 2019. 25,456 square feet of market space and USAA gave back a lot to its 65,247 square feet of retail and food and members but should have given beverage operations, according to a pre- back even more or charged them sentation Tuesday to the city’s Economic less, Heller said. and Workforce Development Committee. “USAA’s asset growth was About 256 units will be for residents fueled in part by higher bank de- earning up to 80 percent of the area me- posits and higher unrealized dian income, which is $41,550 for one The mixed-use development at the former Lone Star Brewery site will include gains in our bond portfolio,” Lone Starcontinues on B7 1,282 rental units, 186 hotel rooms and 38,312 square feet of commercial space. spokesman Christian Bove said in USAA continues on B7 Argo Group Training is least we can do to carry a handgun nets highest Guns have played a consider- CHRIS TOMLINSON cal statements, especially in the gun show, buy ammunition, and able role in ’ history, and Commentary constitutional carry movement. carry a loaded weapon on their gun culture is alive, well and As fascinating and fun as they belt without government over- profit in thriving. may be, pistols are designed to sight. Fancy firing ranges are open- kill people. The more civilians Ioften compare gun rights to two years ing across the state. HTX Tacti- carry them in public, the greater the constitutional right to free- cal Firearms last week opened a the dilemma for business own- dom of movement. No state By Patrick Danner new location in Houston. Nardi’s ers and their customers who allows U.S. adults to drive with- STAFF WRITER Gun Club in San Antonio opened don’t want to be around guns. out a license. To test my meta- anew facility in Rolling Oaks. Supporters of constitutional phor,I took the Texas License to Specialty insurer Argo Group Iunderstand the fascination carry believe the Second Carry course. International Holdings Ltd., with weapons and shooting. My target shooting to playing golf. Amendment guarantees U.S. Ifilled out an application on which has its U.S. headquarters in mother gave me a rifle and a Rarely do you get off a perfect citizens the right to carry a the Department of Public Safety San Antonio, this week posted its handgun when I was a teen. I shot, but when you do, it feels handgun unless they have lost website, which took about 10 largest quarterly profit in two carried an M16A1 in the Army good. Other friends admire the their right. They want the Texas minutes. Then I made an ap- years. and somehow managed to qual- engineering: Every design deci- Legislature to drop background pointment for fingerprinting, Bermuda-based Argo earned ify with a rattly old M1911 pistol. I sion is a trade-off, and enthusi- checks and training require- which took 40 minutes, includ- $29.8 million, or 78 cents a share, earned a German Army marks- asts love to argue over them. ments before carrying a hand- ing driving time. I had to pay on $523.6 million manship medal after proving my Like many people who have gun, concealed or openly. $52. in revenue for the skills with a 9mm pistol, an carried a weapon professionally, Twenty states have adopted Over several days,I took a three months end- assault rifle and a light machine Ihave mixed feelings. I am espe- some form of permitless carry. four-hour online course focused ed March 31. That gun. cially concerned about how Theoretically, residents in those primarily on Texas laws around compares with a My oldest friend compares people use guns to make politi- states can purchase a pistol at a Tomlinson continues on B5 loss of $24.7 mil- lion, or 72 cents a share, on $434.4 Rehnberg million in revenue S.A.’s NuStar rebounds to profit in 1st quarter in the same period last year. By Diego Mendoza-Moyers “As America begins to recover The latest quarterly earnings STAFF WRITER from the impact of COVID-19 and are the highest since Argo gener- begins returning to normal activ- ated $91.2 million in net income in San Antonio-based pipeline ity and growth, we are seeing the first quarter of 2019. operator NuStar Energy swung signs of stabilization and im- It reversed last year’s quarterly to a healthy profit for the first provement across the U.S. and in loss and increased revenue even quarter as the U.S. oil and gas in- NuStar’s footprint,” said Brad though gross written premiums dustry’s recovery from the pan- Barron, president and CEO. fell to $756.4 million, or about 8.4 demic continued pushing Ahiccup was the winter storm percent, from $825.9 million in ahead. in February, NuStar executives the same period last year. Demand for crude oil and re- said, which caused the company Argo attributed the drop in pre- fined petroleum products has to miss about $11 million in earn- miums to its exit from various reached pre-pandemic levels as ings because of production dis- nonstrategic and unprofitable COVID-19 vaccinations are being ruptions. The majority of the business segments. It sold its rein- distributed and economic activ- loss was caused by reduced oil surance business Ariel Re, a Euro- ity has begun to return, the com- demand in Texas, issues with pean underwriting operation, pany said. That helped push freezing equipment in the Perm- and its U.S. grocery and retail NuStar to a $42 million profit on ian Basin and problems at an am- business. It also is planning to exit $362 million in revenue during monia supplier’s facility, NuStar businesses in Italy and Malta. David Paul Morris /Bloomberg the three months spanning Janu- said. Excluding those businesses, Fuel storage tanks stand at the NuStar Energy Selby Terminal ary through March. A year ago, it Despite the weeklong down- Argo reported premiums rose 6.5 in Crockett, Calif. The San Antonio-based pipeline operator reported a loss of $148 million on turn when most of Texas was Argo continues on B7 saw a $42 million profit from January through March. $392.8 million in revenue. NuStarcontinues on B7