U-Haul 2006 Annual Report Download - page 116

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Amortization of deferred acquisition costs were $2.9 million and $4.7 million for 2005 and 2004, respectively.
The decreases are due to a reduction of in-force business related to the exit of non U-Haul lines of business.
Operating expenses were $10.8 million and $11.8 million for 2005 and 2004, respectively. The decrease was due
to a reduction of general administrative expenses resulting from the exit of the non U-Haul lines of business.
Earnings (loss) from operations were $1.1 million and ($14.8) million for 2005 and 2004, respectively.
2004 Compared with 2003
Premium revenues were $25.0 million and $93.2 million for the years ended December 31, 2004 and 2003,
respectively. The overall decrease is due to RepWest exiting non U-Haul lines of business. U-Haul related premiums
were $18.9 million and $23.6 million for 2004 and 2003, respectively. The decrease was a result of RepWest being
under DOI supervision and the “C” rating by A.M. Best. Premium revenues on non U-Haul lines of business were
$6.1 million and $69.6 million for 2004 and 2003, respectively.
Net investment income was $16.4 million and $21.7 million for 2004 and 2003, respectively. The reduction was
due to a decrease in the RepWest’ s invested asset base.
Benefits and losses incurred were $39.7 million and $109.4 million for 2004 and 2003, respectively. The
decreases resulted from reduced exposure resulting from RepWest’ s decision to exit its non U-Haul lines of
business, which was offset by the losses from the Florida hurricanes and additional reserves added to the long-tailed
programs.
Amortization of deferred acquisition costs was $4.7 million and $14.1 million for 2004 and 2003, respectively.
The decrease is due to decreased premium writings.
Operating expenses were $11.8 million and $27.4 million for 2004 and 2003, respectively. The decrease was due
to decreased commissions, as well as, a reduction of general administrative expenses due to the exit of the non U-
Haul lines of business.
Losses from operations were $14.8 million and $36.0 million for 2004 and 2003, respectively. The loss in 2004
was the result of approximately $8.5 million in incurred losses and related expenses resulting from the hurricanes
that hit the Southeastern United States in the summer and fall of 2004, as well as additional reserves recorded for
RepWest’ s cancelled lines of business.
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