U-Haul 2008 Annual Report Download - page 10

5
Our self-storage business consists of the rental of self-storage rooms, sales of self-storage related products, the
facilitation of sales of services, and the management of self-storage facilities owned by others.
U-Haul is one of the largest North American operators of self-storage and has been a leader in the self-storage
industry since 1974. U-Haul operates over 387,000 storage rooms, comprising approximately 34.2 million square
feet of storage space with locations in 49 states and 10 Canadian provinces. U-Haul’ s owned and managed self-
storage facility locations range in size up to 171,500 square feet of storage space, with individual storage units in
sizes ranging from 6 square feet to 845 square feet.
The primary market for storage rooms is the storage of household goods. We believe that our self-storage services
provide a competitive advantage through such things as Maximum Security (“MAX”), an electronic system that
monitors the storage facility 24 hours a day; climate control; individually alarmed rooms; extended hour access; and
an internet-based customer reservation and account management system.
eMove is an online marketplace that connects consumers to over 3,700 independent Moving Help™ service
providers and over 3,300 independent Self-Storage Affiliates. Our network of customer-rated affiliates provides
pack and load help, cleaning help, self-storage and similar services, all over North America.
An individual or a company can connect to the eMove network by becoming an eMove Moving Help® Affiliate
or an eMove Storage Affiliate™. Moving Helpers assist customers with packing, loading, cleaning and unloading
their truck or storage unit. The Storage Affiliate program enables independent self-storage facilities to expand their
reach by connecting into a centralized 1-800 and internet reservation system and for a fee, receive an array of
services including web-based management software, Secured Online Affiliated Rentals (S.O.A.R®), co-branded
rental trucks, savings on insurance, credit card processing and more.
The marketplace includes unedited reviews of independent affiliates, and has facilitated thousands of Moving
Help® and Self-Storage transactions all over North America. We believe that acting as an intermediary, with little
added investment, serves the customer in a cost effective manner. Our goal is to further utilize our web-based
technology platform to increase service to consumers and businesses in the moving and storage market.
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 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 was approximately 1.9%, 1.8% and
1.6% of consolidated net revenue in fiscal 2008, 2007 and 2006, respectively.
Life Insurance Operating Segment
Oxford provides life and health insurance products primarily to the senior market through the direct writing or
reinsuring of life insurance, Medicare supplement and annuity policies. Additionally, Oxford 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%, 7.0% and 6.8% of consolidated
net revenue in fiscal 2008, 2007 and 2006, respectively.
SAC Holding II 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 was considered the
primary beneficiary of these contractual interests prior to November 2007. Consequently, for those reporting periods
prior to November 2007, we included the results of SAC Holding II in the consolidated financial statements of
AMERCO, as required by Financial Accounting Standards Board Interpretation No. 46(R) (“FIN 46(R)”). While the
deconsolidation affects AMERCO’ s financial reporting, it has no operational or financial impact on the Company’ s
relationship with SAC Holding II.