U-Haul 2004 Annual Report Download - page 21

We continue to focus on expanding our dealer network, which provides added convenience for our
customers and expanding the selection and availability of rental equipment to satisfy the needs of our
customers.
With respect to our retail sales of product, U-Haul has developed a number of specialty packing boxes,
""Mover's Wrap'' and Smart Move tape. Mover's Wrap is a sticks-to-itself plastic stretch wrap used to bind,
bundle, and fasten items when moving or storing. Additionally, U-Haul has added a full line of Smart Move
tape products. The Smart Move tape is a color coded packing tape that has the room printed right on it
allowing customers to tape and label their belongings in one quick step.
eMove.com connects consumers to independent customer rated service providers who provide packing,
loading, unloading, cleaning, driving help and more. With over 12,000 unedited reviews of service providers,
the marketplace has facilitated over 21,000 moves. Another service, the eMove Storage AÇliate program,
targets independently owned self-storage facilities to connect into the eMove network to provide storage
services. Over 1,900 self-storage facilities are now registered on the eMove network. We believe acting as an
intermediary, with little added investment, serves the customer in a cost eÅective manner. Within two years of
its inception, eMove.com has established itself as the only online destination in the ""do-it-yourself'' moving
and storage industry that connects consumers to service providers in all 50 states and 11 Canadian provinces.
Our goal is to further utilize our web-based technology platform to expand into additional markets.
Property and Casualty Insurance
Republic Western Insurance Company (RepWest) provides loss adjusting and claims handling for
U-Haul through regional oÇces across North America. RepWest also provides components of the Safemove,
Safetow and Safestor protection packages to U-Haul customers. We continue to focus on increasing the
penetration of these products. The business plan for RepWest includes oÅering property and casualty products
in other U-Haul related programs. During the past year RepWest has commuted numerous assumed
reinsurance treaties to eliminate the risk of further development on these treaties.
Life Insurance
Oxford Life Insurance Company originates and reinsures annuities, credit life and disability, life
insurance and supplemental health insurance products. Oxford's business strategy is long-term capital growth
through direct writing and reinsuring of annuity, credit life and disability, and Medicare supplement products.
Oxford is pursing this growth strategy of increased direct writing via acquisitions of insurance companies,
expanded distribution channels and product development. The acquisition of North American Insurance
Company and Safe Mate Life Insurance Company in 1997, and Christian Fidelity Life Insurance Company in
2000 represents signiÑcant movement toward this long-term goal. Oxford signiÑcantly expanded product
oÅerings, distribution channels and administrative capabilities through these acquisitions.
Critical Accounting Policies and Estimates
The methods, estimates and judgments we use in applying our accounting policies can have a signiÑcant
impact on the results we report in our Ñnancial statements, which we discuss under the heading ""Results of
Operations.'' Some of our accounting policies require us to make diÇcult and subjective judgments, often as a
result of the need to make estimates of matters that are inherently uncertain. The accounting estimates that
require management's most diÇcult and subjective judgments include the recoverability of property, plant and
equipment; the adequacy of insurance reserves; and the recognition and measurement of income tax assets and
liabilities. Below, we discuss these policies further, as well as the estimates and judgments involved. The
estimates are based on historical experience, observance of trends in particular areas, information and
valuations available from outside sources and on various other assumptions that are believed to be reasonable
under the circumstances and which form the basis for making judgments about the carrying values of assets
and liabilities that are not readily apparent from other sources. Actual amounts may diÅer from these
estimates under diÅerent assumptions and conditions. Such diÅerences may be material.
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