U-Haul 2008 Annual Report Download - page 33

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28
Total costs and expenses increased $50.3 million for fiscal 2007, compared with fiscal 2006. Increases in
depreciation, lease, licensing and freight costs resulting from the acquisition of new trucks and the rotation of the
fleet were partially offset by reductions in maintenance and repair.
As a result of the above mentioned changes in revenues and expenses, earnings from operations decreased to
$217.9 million in fiscal 2007, compared with $292.8 million for fiscal 2006.
Republic Western Insurance Company
2007 Compared with 2006
Net premiums were $28.4 million and $24.3 million for the years ended December 31, 2007 and 2006,
respectively. U-Haul related premiums were $26.4 million and $22.0 million for the years ended December 31, 2007
and 2006, respectively. Other lines of business were $2.0 million and $2.3 million for the years ended December 31,
2007 and 2006, respectively.
Net investment income was $12.1 million and $14.2 million for the years ended December 31, 2007 and 2006,
respectively. The decrease is due to the sale of real estate in 2006, which resulted in gains in 2006.
Net operating expenses were $12.0 million and $8.8 million for the years ended December 31, 2007 and 2006,
respectively. The increase is due to a $2.7 million increase in commissions on the additional liability program.
Benefits and losses incurred were $19.0 million and $21.9 million for the years ended December 31, 2007 and
2006, respectively.
Amortization of deferred acquisition costs were $0.2 million and $2.1 million for the years ended December 31,
2007 and 2006, respectively. The decrease is due to the termination of credit property business in March of 2006.
Earnings from operations were $9.2 million and $5.7 million for the years ended December 31, 2007 and 2006,
respectively.
2006 Compared with 2005
Net premiums were $24.3 million and $26.0 million for the years ended December 31, 2006 and 2005,
respectively. U-Haul related premiums were $22.0 million and $20.2 million for the years ended December 31, 2006
and 2005, respectively. Other lines of business were $2.3 million and $5.8 million for the years ended December 31,
2006 and 2005, respectively.
Net investment income was $14.2 million and $11.4 million for the years ended December 31, 2006 and 2005,
respectively. The increase is due to an increase in short-term rates and sale of real estate.
Net operating expenses were $8.8 million and $10.8 million for years ended December 31, 2006 and 2005,
respectively. The decrease is due to a reduction of general administrative expenses due to the exit of the non U-Haul
lines of business.
Benefits and losses incurred were $21.9 million and $22.6 million for the years ended December 31, 2006 and
2005, respectively.
Amortization of deferred acquisition costs were $2.1 million and $2.9 million for the years ended December 31,
2006 and 2005, respectively. The decrease is due to decreased premium writings.
Earnings from operations were $5.7 million and $1.1 million for years ended December 31, 2006 and 2005,
respectively.