U-Haul 2006 Annual Report Download - page 46

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Note 20: Statutory Financial Information of Insurance Subsidiaries
Applicable laws and regulations of the State of Arizona require RepWest and Oxford to maintain minimum capital and
surplus determined in accordance with statutory accounting principles. Audited statutory net income and statutory capital
and surplus for the years-ended are listed below:
2005 2004 2003
RepWest:
Audited statutory net income (loss) $ 1,825 $ (5,262) $ (17,051)
Audited statutory capital and surplus 89,824 64,789 69,122
NAFCIC:
Audited statutory net income (loss) (82) (494) 732
Audited statutory capital and surplus 3,681 3,759 4,001
Oxford:
Audited statutory net income 10,237 10,736 3,335
Audited statutory capital and surplus 101,466 83,396 64,034
CFLIC:
Audited statutory net income 1,470 2,410 4,057
Audited statutory capital and surplus 22,455 20,981 22,545
NAI:
Audited statutory net income 3,076 1,718 3,067
Audited statutory capital and surplus 16,150 14,442 12,489
Year Ended December 31,
(In thousands)
The amount of dividends that can be paid to shareholders by insurance companies domiciled in the State of Arizona is
limited. Any dividend in excess of the limit requires prior regulatory approval. At December 31, 2005, Oxford cannot
distribute any of its statutory surplus as dividends without regulatory approval. RepWest paid $27.0 million in non-cash
dividends to its parent during 2005; payment was effected by a reduction in intercompany accounts. Consequently, at
December 31, 2005, RepWest did not have any statutory surplus available for distribution without regulatory approval.
On May 20, 2003, RepWest consented to an Order for Supervision issued by the State of Arizona Department of
Insurance (“DOI”). The DOI determined that RepWest’ s level of risk based capital (“RBC”) allowed for regulatory control.
Pursuant to this order and Arizona law, during the period of supervision, RepWest could not engage in certain activities
without the prior approval of the DOI. The order was abated on June 9, 2005.
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