U-Haul 2016 Annual Report Download - page 11

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5
Moving and Storage business is seasonal and our results of operations and cash flows fluctuate
significantly from quarter to quarter. Historically, revenues have been stronger in the first and second
fiscal quarters due to the overall increase in moving activity during the spring and summer months. The
fourth fiscal quarter is generally our weakest.
Property and Casualty Insurance Operating Segment
Our Property and Casualty Insurance operating segment (“Property and Casualty Insurance”) provides
loss adjusting and claims handling for U-Haul through regional offices across North America. Property
and Casualty Insurance also underwrites components of the Safemove, Safetow, Safemove Plus,
Safestore Mobile and Safestor protection packages to U-Haul customers. We attempt to price our
products to be a good value to our customers. The business plan for Property and Casualty Insurance
includes offering property and casualty products in other U-Haul related programs.
Net revenue from Property and Casualty Insurance was approximately 2.0%, 1.9% and 1.8% of
consolidated net revenue in fiscal 2016, 2015 and 2014, respectively.
Life Insurance Operating Segment
Life Insurance provides life and health insurance products primarily to the senior market through the
direct writing and reinsuring of life insurance, Medicare supplement and annuity policies.
Net revenue from Life Insurance was approximately 7.0%, 7.1% and 7.6% of consolidated net revenue
in fiscal 2016, 2015 and 2014, respectively.
Employees
As of March 31, 2016, we employed nearly 26,400 people throughout North America with
approximately 98% of these employees working within Moving and Storage and approximately 55% of
these employees working on a part-time basis.
Sales and Marketing
We promote U-Haul brand awareness through direct and co-marketing arrangements. Our direct
marketing activities consist of web based initiatives, print and social media as well as trade events, movie
cameos of our rental fleet and boxes, and industry and consumer communications. We believe that our
rental equipment is our best form of advertisement. We support our independent U-Haul dealers through
marketing U-Haul moving and self-storage rentals, products and services.
Our marketing plan focuses on maintaining our leadership position in the “do-it-yourself” moving and
storage industry by continually improving the ease of use and economy of our rental equipment, by
providing added convenience to our retail centers, through independent U-Haul dealers, and by
expanding the capabilities of our U-Haul web sites.
A significant driver of U-Haul’s rental transaction volume is our utilization of an online reservation and
sales system, through uhaul.com and our 24-hour 1-800-GO-U-HAUL telephone reservations system.
These points of contact are prominently featured and are a major driver of customer lead sources.
Competition
Moving and Storage Operating Segment
The truck rental industry is highly competitive and includes a number of significant national, regional
and local competitors. Generally speaking, we consider there to be two distinct users of rental trucks:
commercial and “do-it-yourself” residential users. We primarily focus on the “do-it-yourself” residential
user. Within this segment, we believe the principal competitive factors are convenience of rental
locations, availability of quality rental moving equipment, breadth of essential products and services, and
total cost to the user. Our major national competitors in both the In-Town and one-way moving equipment
rental market are Avis Budget Group, Inc. and Penske Truck Leasing. Additionally, we have numerous
competitors throughout North America who compete with us in the In-Town market.
The self-storage market is large and very fragmented. We believe the principal competitive factors in
this industry are convenience of storage rental locations, cleanliness, security and price. Our largest
competitors in the self-storage market are Public Storage Inc., Extra Space Storage, Inc., Cubesmart and
Sovran Self-Storage Inc.