) reported Third quarter results
Ian Gilson, CFA
The moving and storage revenue was in line with our estimates:
|Products and services
|Property management fees
The relatively mild winter (so far) had a positive impact on
transactions, which increased fleet utilization for both one-way
and local rentals. Third quarter growth improved over the prior Y/Y
comparisons and the trend has continued into the fourth quarter.
The company intends to build rental trucks in-house (mostly for
one-way transactions) as well as add in-town vehicles. E-Move
continues to grow at close to 10%.
Oxford Life Insurance completed another reinsurance transaction in
the third quarter. The purchase of a block of of whole life
policies caused a net increase in premiums of $58.3 million.
However, under current accounting rules the income from these
policies is spread over a long period so there was little change in
net income in the life insurance group.
RepWest Insurance Company made a non-cash charge to strengthen its
reserves. The pretax charge was $48.25 million. The tax impact
reduced this to $31.4 million or $1.61 a share. RepWest is no
longer in the workers' compensation insurance business but this is
related to the long tail liabilities RepWest assumed from other
carriers or wrote itself over a decade ago. This is an addition to
reserves for assumed liabilities that are larger than anticipated
due to inflation in medical costs and other factors. This charge
does not affect the core U-Haul businesses. We are treating this
charge as a one-time event.
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