U-Haul 2004 Annual Report Download - page 31

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BeneÑts and losses incurred were $109.4 million, $128.7 million, and $255.8 million for the twelve months
ended December 31, 2003, 2002, and 2001, respectively. The decreases in each year are due to decreased
earned premiums in all segments of RepWest's business.
Amortization of deferred policy acquisition costs was $14.1 million, $17.3 million, and $22.1 million for
the twelve months ended December 31, 2003, 2002, and 2001, respectively. The decreases are due to
decreased premium writings.
Operating expenses, before intercompany eliminations, were $27.4 million, $37.0 million and $77.2 mil-
lion for the twelve months ended December 31, 2003, 2002, and 2001, respectively. Included in operating
expenses are commissions that were $10.3 million, $13.9 million and $51.2 million for the twelve months
ended December 31, 2003, 2002 and 2001, respectively. The decreases are due to decreased premium writings.
Pretax losses from operations were $36.0 million, $8.0 million, and $72.4 million for the twelve months
ended December 31, 2003, 2002, and 2001, respectively. The increase in losses in 2003 was due to the
development of losses on business lines that were previously written and subsequently terminated. The
decrease in losses in 2002 from 2001 was due to reduced expenses as well as improved loss development.
Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:
2003 2002 2001
(In thousands)
Balance at January 1 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $399,447 $448,987 $382,651
Less reinsurance recoverable ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 146,622 128,044 80,868
Net balance at January 1ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 252,825 320,943 301,783
Incurred related to:
Current year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 56,454 112,284 232,984
Prior years ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53,127 16,396 23,042
Total incurred ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 109,581 128,680 256,026
Paid related to:
Current year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 22,931 66,728 106,395
Prior years ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100,851 130,070 130,471
Total paidÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 123,782 196,798 236,866
Net balance at December 31ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 238,624 252,825 320,943
Plus reinsurance recoverable ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 177,635 146,622 128,044
Balance at December 31 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $416,259 $399,447 $448,987
As a result of changes in estimates of insured events in prior years, the provision for unpaid losses and loss
adjustment expenses (net of reinsurance recoveries of $107.4 million) increased by $53.1 million in Ñscal
2003.
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