U-Haul 2011 Annual Report Download - page 88

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AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Policy benefits and losses, claims and loss expenses payable for Property and Casualty Insurance were as
follows:
2010 2009
Unpaid losses and loss adjustment expense $ 276,355 $ 271,677
Reinsurance losses payable 367 759
Unearned premiums 4 2
Total $ 276,726 $ 272,438
Years Ended December 31,
(In thousands)
Activity in the liability for unpaid losses and loss adjustment expenses for Property and Casualty Insurance is
summarized as follows:
2010 2009 2008
Balance at January 1 $ 271,677 $ 287,501 $ 288,410
Less: reinsurance recoverable 162,711 173,098 164,181
Net balance at January 1 108,966 114,403 124,229
Incurred related to:
Current year 9,453 8,043 8,497
Prior years 7,832 6,516 9,384
Total incurred 17,285 14,559 17,881
Paid related to:
Current year 4,971 3,974 5,006
Prior years 12,240 16,022 22,701
Total paid 17,211 19,996 27,707
Net balance at December 31 109,040 108,966 114,403
Plus: reinsurance recoverable 167,315 162,711 173,098
Balance at December 31 $ 276,355 $ 271,677 $ 287,501
(In thousands)
Years Ended December 31,
The liability for incurred losses and loss adjustment expenses (net of reinsurance recoverable of $167.3
million) increased by $0.1 million in 2010.
Note 18: Contingent Liabilities and Commitments
The Company leases a portion of its rental equipment and certain of its facilities under operating leases with
terms that expire at various dates substantially through 2017, with the exception of one land lease expiring in
2034. As of March 31, 2011, AMERCO has guaranteed $167.6 million of residual values for these rental
equipment assets at the end of the respective lease terms. Certain leases contain renewal and fair market value
purchase options as well as mileage and other restrictions. At the expiration of the lease, the Company has the
option to renew the lease, purchase the asset for fair market value, or sell the asset to a third party on behalf of
the lessor. AMERCO has been leasing equipment since 1987 and has experienced no material losses relating
to these types of residual value guarantees.
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