USAA on Friday said it recorded net income for 2023 of about $1.2 billion, reversing a 2022 loss—the first for the company since 1923—of about $1.3 billion.

The San Antonio, Texas-based reciprocal exchange said revenue was up 17 percent year-over-year to $42.5 billion and total investment returns jumped to $4.7 billion in 2023 from $2.8 billion in 2022.

“Management actions taken and investments made over the past few years enabled a return to profitability in 2023,” USAA said in its annual report to members. “Since the pandemic, the external environment has presented significant and uncertain challenges for USAA and our members. Last year saw both new and ongoing headwinds, with historic catastrophes, elevated interest rates, record inflation and a banking industry crisis. USAA overcame these pressures through disciplined execution of efforts that strengthened our financial foundation today and for the years to come.”

In a separate statement, USAA said it paid nearly $24 billion in claims with more than 350,000 catastrophe-related claims last year.

President and CEO Wayne Peacock said in the letter to members that USAA “made the difficult decision” to raise homeowners and auto insurance rates even after reductions in operating expenses.

USAA hiked auto rates 16.9 percent in 2023, according to S&P Global Market Intelligence. All 10 of the top auto insurers in the U.S. raised rates double digits in 2023, S&P said. With a 14.7 percent increase in 2023, USAA was also among the leaders in homeowners insurance rate increases last year as of September 2023, said S&P in another report.

“These increases were necessary to ensure the association remains financially strong,” Peacock said.

In April USAA announced layoffs of around 220 employees in an effort to reprioritize positions amid changing business needs. In 2023, the insurer let go of nearly 1,000 employees.