U-Haul 2016 Annual Report Download - page 87

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AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
F-31
Policy benefits and losses, claims and loss expenses payable for Property and Casualty Insurance
were as follows:
December 31,
2015
2014
(In thousands)
Unpaid losses and loss adjustment expense
$
251,964
$
271,609
Reinsurance losses payable
855
135
Total
$
252,819
$
271,744
Activity in the liability for unpaid losses and loss adjustment expenses for Property and Casualty
Insurance is summarized as follows:
December 31,
2015
2014
2013
(In thousands)
Balance at January 1
$
271,609
$
295,126
$
330,093
Less: reinsurance recoverable
120,894
136,535
176,439
Net balance at January 1
150,715
158,591
153,654
Incurred related to:
Current year
12,214
11,690
9,861
Prior years
84
(694)
1,652
Total incurred
12,298
10,996
11,513
Paid related to:
Current year
7,509
6,155
5,226
Prior years
10,851
12,717
1,350
Total paid
18,360
18,872
6,576
Net balance at December 31
144,653
150,715
158,591
Plus: reinsurance recoverable
107,311
120,894
136,535
Balance at December 31
$
251,964
$
271,609
$
295,126
The liability for incurred losses and loss adjustment expenses (net of reinsurance recoverable of
$107.3 million) decreased by $6.1 million in 2015.
Note 17. Contingent Liabilities and Commitments
We lease a portion of our rental equipment and certain of our facilities under operating leases with
terms that expire at various dates substantially through 2019. As of March 31, 2016, we have guaranteed
$22.3 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, we have 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. We have been leasing
equipment since 1987 and have experienced no material losses relating to these types of residual value
guarantees.
Lease expenses were as follows:
Years Ended March 31,
2016
2015
2014
(In thousands)
Lease expense
$
49,780
$
79,798
$
100,466