U-Haul 2006 Annual Report Download - page 89

Property and Casualty Insurance Operating Segment
RepWest provides loss adjusting and claims handling for U-Haul through regional offices across North America.
Through the Company’ s affiliation with RepWest, U-Haul offers its customers moving and storage contents
insurance products, branded Safemove and Safestor, respectively. The Safemove policy provides moving customers
with a damage waiver, cargo protection and medical and life coverage. Management believes that its Safemove
product is highly competitive, as competing policies contain deductibles, higher premiums and more confusing
layers of coverage. We continue to focus on increasing the penetration of these products. The business plan for
RepWest includes offering property and casualty products for other U-Haul related programs.
Net revenue from our Property and Casualty Insurance operating segment were approximately 1.8%, 2.1% and
5.2% of consolidated net revenue in fiscal 2006, 2005 and 2004, respectively.
Life Insurance Operating Segment
Oxford originates and reinsures annuities, ordinary life, group life and disability coverage, and Medicare
supplement insurance. Oxford also administers the self-insured employee health and dental plans for Arizona
employees of the Company.
Net revenue from our Life Insurance operating segment was approximately 6.7%, 7.6% and 7.8% of consolidated
net revenue in fiscal 2006, 2005 and 2004, respectively.
SAC Holdings Operating Segment
SAC Holding Corporation and its subsidiaries, and SAC Holding II Corporation and its subsidiaries, collectively
referred to as “SAC Holdings”, own self-storage properties that are managed by U-Haul under property management
agreements and act as independent U-Haul rental equipment dealers. AMERCO, through its subsidiaries, has
contractual interests in certain of SAC Holdings’ properties entitling AMERCO to potential future income based on
the financial performance of these properties. With respect to SAC Holding II, AMERCO is considered the primary
beneficiary of these contractual interests. Consequently, we include the results of SAC Holding II in the
consolidated financial statements of AMERCO, as required by FIN 46(R).
Net revenue from our SAC Holdings operating segment was approximately 1.3%, 1.1% and 5.7% of consolidated
net revenue in fiscal 2006, 2005 and 2004, respectively.
Employees
As of March 31, 2006, we employed approximately 17,500 people throughout North America with approximately
98% of these employees working within our Moving and Storage operating segment.
Sales and Marketing
We promote U-Haul brand awareness through direct and co-marketing arrangements. Our direct marketing
activities consist of yellow pages, print and web based advertising as well as trade events, movie cameos of our
rental fleet and boxes, and industry and consumer communications. Our rental equipment is our best form of
advertisement. We support our independent U-Haul dealers through advertising of U-Haul moving and self-storage
rentals, products and services.
Our marketing plan includes maintaining our leadership position with U-Haul being synonymous with “do-it-
yourself” moving and storage. We accomplish this by continually improving the ease of use and efficiency of our
rental equipment, by providing added convenience to our retail centers through independent U-Haul dealers, and by
expanding the capabilities of our eMove web site.
A significant driver of U-Haul’ s rental transaction volume is our utilization of an online reservation and sales
system, through www.uhaul.com, www.eMove.com and our 24-hour 1-800-GO-U-HAUL telephone reservations
system. The Company’ s 1-800-GO-U-HAUL telephone reservation line is prominently featured on nationwide
yellow page advertising, its websites and on the outside of its vehicles, and is a major driver of customer lead
sources.
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