U-Haul 2008 Annual Report Download - page 36

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2006 Compared with 2005
Net premiums were $121.6 million and $120.4 million for the years ended December 31, 2006 and 2005,
respectively. Medicare supplement premiums increased by $10.6 million primarily due to the acquisition of DGLIC.
The Company stopped writing new credit insurance business in 2006 and as a result, credit insurance premiums
decreased by $9.1 million.
Net investment income was $22.5 million and $22.0 million for the years ended December 31, 2006 and 2005,
respectively. The increase was primarily due to a reduction in realized losses on disposals from 2005, offset by a net
reduction in invested assets. Investment yields were consistent between the two years.
Other income was $4.7 million and $5.8 million for the years ended December 31, 2006 and 2005, respectively.
This decrease was the result of decreased surrender charge income of $0.5 million and a decrease in administrative
income of $0.6 million.
Net operating expenses were $30.9 million and $27.0 million for the years ended December 31, 2006 and 2005,
respectively. The increase is primarily due to the acquisition of DGLIC.
Benefits incurred were $88.3 million and $85.7 million, for the years ended December 31, 2006 and 2005,
respectively. This increase was primarily a result of a $3.8 million increase in Medicare supplement benefits due to
the acquisition of DGLIC, partially offset by a slightly improved loss ratio. Credit insurance benefits decreased $4.4
million due to decreased exposure. Other health benefits increased $1.1 million during the current period due to an
adjustment for current claim trends. Life insurance benefits increased $1.4 million due to increased sales.
Amortization of DAC and VOBA was $15.1 million and $21.4 million for the years ended December 31, 2006
and 2005, respectively. During the fourth quarter of 2005 and 2006, the Company made adjustments to the
assumptions for expected future profits for the annuity business. These included changes to the assumptions for
lapse rates, interest crediting and investment returns. Amortization expense was reduced by $4.7 million during
2006 as a result of these changes, including $1.3 million in the fourth quarter of 2006. The credit business had a
decrease of amortization of $3.2 million due to decreased business. VOBA amortization increased $0.7 million due
to the acquisition of DGLIC. DAC amortization in the life segment increased due to increased new business.
Earnings from operations were $14.5 million and $13.9 million for the years ended December 31, 2006 and 2005,
respectively.
SAC Holding II
Fiscal 2008 Compared with Fiscal 2007
Listed below are revenues for the major product lines at SAC Holding II for fiscal 2008 and fiscal 2007:
2008 (a) 2007
Self-moving equipment rentals $ 5,846 $ 9,225
Self-storage revenues 11,469 19,926
Self-moving and self-storage product and service sales 10,039 16,045
Other revenue 748 1,407
Segment revenue $ 28,102 $ 46,603
(a) Activity for the seven months ended October 2007, prior to deconsolidation.
(In thousands)
Year Ended March 31,
Revenues in fiscal 2008 decreased $18.5 million, compared with fiscal 2007. Total costs and expenses were $20.2
million in fiscal 2008, compared with $32.7 million in fiscal 2007. Earnings from operations were $7.9 million in
fiscal 2008, compared with $13.9 million in fiscal 2007. Each of these decreases was due to the deconsolidation of
SAC Holding II effective October 31, 2007.
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