~~Table~~UNITED STATES ofSECURITIES ~~Contents~~AND EXCHANGE COMMISSION

Washington, ~~SECURITIES~~ D.C. ~~AND EXCHANGE COMMISSION~~ 20549

FORM ~~Washington,~~ 10-K ~~D.C. 20549~~

(Mark ~~Form~~ One) ~~10-K for Annual and Transition Reports~~

R ANNUAL ~~Pursuant~~ REPORT toPURSUANT ~~Section~~ TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For of the fiscal ~~Securities~~year ~~Exchange~~ended ~~Act~~March ~~of 1934~~ 31, 2007

(Mark One)
þ		ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the fiscal year ended March 31, 2003
or
o		TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the transition period from to

Commission	Registrant, State of Incorporation	I.R.S. Employer
File Number	Address and Telephone Number	Identification No.
1-11255	AMERCO (A Nevada Corporation) 1325 Airmotive Way, Suite 100 Reno, Nevada 89502-3239 Telephone (775) 688-6300	88-0106815
2-38498	U-Haul International, Inc. (A Nevada Corporation) 2727 N. Central Avenue Phoenix, Arizona 85004 Telephone (602) 263-6645	86-0663060

£ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For ~~Securities~~ the transition ~~registered~~period ~~pursuant~~from __________________ to ~~Section 12(b)~~ ~~of the Act:~~ __________________

			Name of Each Exchange
Commission File Number	Registrant, State of Incorporation Address and Telephone Number	I.R.S. Employer Identification No.
Registrant		Title of Class	on Which Registered
1-11255	AMERCO	88-0106815
AMERCO		Series A 8 1/2% Preferred Stock	New York Stock Exchange
	(A Nevada Corporation)
U-Haul International, Inc.		None
	1325 Airmotive Way, Ste. 100
	Reno, Nevada 89502-3239
	Telephone (775) 688-6300
2-38498	U-Haul International, Inc.	86-0663060
	(A Nevada Corporation)
	2727 N. Central Avenue
	Phoenix, Arizona 85004
	Telephone (602) 263-6645
Securities registered pursuant to Section 12(b) of the Act:
Registrant	Title of Class	Name of Each Exchange on Which Registered
AMERCO	Series A 8 ½% Preferred Stock	New York Stock Exchange
AMERCO	Common	NASDAQ
U-Haul International, Inc.	None

Securities registered pursuant to Section 12(g) of the Act:

~~Name of Each Exchange Registrant Title of Class on Which Registered AMERCO Common NASDAQ U-Haul International, Inc.~~ None

Indicate by check mark ~~whether~~if the registrant: ~~(1) has~~is ~~filed~~a ~~all~~well-known ~~reports required~~seasoned toissuer, beas ~~filed~~defined in Rule by405 ~~Section 13 or 15(d)~~ of the Securities ~~Exchange~~ Act. ofYes ~~1934 during the preceding~~£ ~~12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes o~~ No þ R

Indicate by check mark if ~~disclosure~~the ofregistrant ~~delinquent filers pursuant to Item 405 of Regulation S-K~~ is not ~~contained~~required ~~herein, and will not be contained,~~ to ~~the~~file ~~best~~reports ofpursuant ~~the registrant’s~~to ~~knowledge,~~ Section in13 ~~definitive proxy~~ or ~~information~~Section ~~statements incorporated~~15(d) ~~by reference in Part III~~ of ~~this Form 10-K~~the orSecurities ~~any~~Act. ~~amendment~~Yes ~~to this~~£ ~~Form 10-K. o~~ No R

Indicate by check mark whether the registrant: is(1) anhas ~~accelerated~~filed ~~filer~~all ~~(as~~reports ~~defined~~required to in be filed by Section 13 or 15(d) of the Securities Exchange Act ~~Rule 12b-2~~ of 1934 during the ~~Act~~ preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes o R No þ £

Indicate ~~20,621,499 shares of~~ by ~~AMERCO~~check ~~common~~mark ~~stock,~~if ~~$0.25~~disclosure ~~par~~of ~~value,~~delinquent ~~were~~filers ~~outstanding~~pursuant ~~at August 15,~~to ~~2003.~~Item ~~The~~405 ~~aggregate market value~~ of ~~AMERCO~~ ~~common~~ Regulation ~~stock~~S-K ~~held~~is bynot ~~non-affiliates~~contained ~~(i.e.~~herein, ~~stock~~and ~~held~~will bynot ~~persons other~~be ~~than officers~~contained, ~~directors~~to ~~and~~the ~~5% shareholders~~ best of ~~AMERCO)~~the ~~on September 30~~registrant’s knowledge, ~~2002~~in ~~was~~definitive ~~$66,678,706.~~proxy ~~The~~or ~~aggregate~~information ~~market~~statements ~~value~~ incorporated ~~was~~by ~~computed~~reference ~~using~~in ~~the~~Part ~~closing~~III ~~price~~of ~~for~~this ~~the~~Form ~~common~~10-K ~~stock trading~~or onany ~~NASDAQ~~amendment ~~on such date.~~to this Form 10-K. £

Indicate ~~5,385 shares of~~ by ~~U-Haul~~check ~~International,~~mark ~~Inc.~~whether ~~common~~the ~~stock,~~registrant ~~$0.01~~is ~~par~~a ~~value~~large accelerated filer, an ~~were~~ accelerated ~~outstanding~~filer, ator ~~August 15,~~a ~~2003~~non-accelerated filer. ~~None~~See definition of ~~these shares~~“accelerated ~~were~~ filer ~~held~~and bylarge ~~non~~accelerated filer” in Rule 12b-~~affiliates~~2 of the Exchange Act. (Check one):

~~TABLE~~Large Accelerated OFfiler ~~CONTENTS~~£ Accelerated filer R Non-accelerated filer £

TABLE OF CONTENTS
PART I
	Item 1. Business:
	Item 2. Properties
	Item 3. Legal Proceedings
	Item 4. Submission of Matters to a Vote of Security Holders
PART II
	Item 5. Market for the Registrant’s Common Equity and Related Stockholder Matters
	Item 6. Selected Financial Data as Restated AMERCO and Consolidated Subsidiaries and SAC Holdings and Consolidated Subsidiaries
	Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Item 7A. Quantitative and Qualitative Disclosures About Market Risk
	Item 8. Financial Statements and Supplementary Data
	Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
PART III
	Item 10. Directors and Executive Officers of the Registrants
	Item 11. Executive Compensation
	Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
	Item 13. Certain Relationships and Related Transactions
	Item 14. Controls and Procedures
PART IV, ITEM 16, EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
EX-3.3
EX-3.4
EX-10.64
EX-10.65
EX-10.66
EX-10.67
EX-10.68
EX-10.69
EX-21
Exhibit 23.1
Exhibit 23.2
EX-99.1
EX-99.2
EX-99.3
EX-99.4

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes £ No R

~~Table~~The aggregate market value of ~~Contents~~AMERCO common stock held by non-affiliates on September 30, 2006 was $453,787,990. The aggregate market value was computed using the closing price for the common stock trading on NASDAQ on such date. Shares held by executive officers, directors and persons owning directly or indirectly more than 5% of the outstanding common stock have been excluded from the preceding number because such persons may be deemed to be affiliates of the registrant. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

Indicate ~~TABLE~~ by OFcheck ~~CONTENTS~~mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes R No £

		Page No.
PART I
Item 1.	Business		1
	A. AMERCO and SAC Holdings		1
	B. History		7
	C. Moving and Storage Operations		7
	D. Real Estate Operations		8
	E. Insurance Operations		9
Item 2.	Properties		12
Item 3.	Legal Proceedings		12
Item 4.	Submission of Matters to a Vote of Security Holders		15
PART II
Item 5.	Market for the Registrant’s Common Equity and Related Stockholder Matters		15
Item 6.	Selected Financial Data		16
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		38
Item 8.	Financial Statements and Supplementary Data		39
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		39
PART III
Item 10.	Directors and Executive Officers of the Registrant’s		40
Item 11.	Executive Compensation		42
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		43
Item 13.	Certain Relationships and Related Transactions		45
Item 14.	Controls and Procedures		47
PART IV
Item 16.	Exhibits, Financial Statement Schedules and Reports on Form 8-K		48

20,130,991 shares of AMERCO Common Stock, $0.25 par value were outstanding at June 1, 2007.

~~Table~~5,385 shares of ~~Contents~~U-Haul International, Inc. Common Stock, $0.01 par value, were outstanding at June 1, 2007. None of these shares were held by non-affiliates.

Documents ~~PART~~ incorporated Iby reference: Portions of AMERCO’s definitive Proxy Statement for the 2007 Annual Meeting of Stockholders, to be filed within 120 days after AMERCO’s year ended March 31, 2007, are incorporated by reference into Part III of this report.

~~Item~~TABLE OF ~~1. Business:~~CONTENTS

A. AMERCO and Consolidated Subsidiaries, SAC Holding Corporation and Consolidated Subsidiaries and SAC Holding Corporation II and Consolidated Subsidiaries

		Page No.
	PART I

Item 1.	Business	2 - 7
Item 1A.	Risk Factors	7 - 10
Item 1B.	Unresolved Staff Comments	10
Item 2.	Properties	10
Item 3.	Legal Proceedings	11
Item 4.	Submission of Matters to a Vote of Security Holders	12

	PART II
Item 5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Repurchases of Equity Securities	12 - 14
Item 6.	Selected Financial Data	15 - 16
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17 - 44
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 8.	Financial Statements and Supplementary Data	45
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	45
Item 9A.	Controls and Procedures	46 - 47
Item 9B.	Other information	47

	PART III
Item 10.	Directors, Executive Officers and Corporate Governance	49
Item 11.	Executive Compensation	49
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	49
Item 13.	Certain Relationships and Related Transaction, and Director Independence	49
Item 14.	Principal Accounting Fees and Services	49

	PART IV
Item 15.	Exhibits and Financial Statement Schedules	50 -59

PART AMERCO, a Nevada corporation (“AMERCO”), is the holding company for U-Haul International, Inc. (“U-Haul”), Amerco Real Estate Company (“Real Estate”), Republic Western Insurance Company (“RepWest”) and Oxford Life Insurance Company (“Oxford”). Throughout this Form 10-K, unless the context otherwise requires, the term “Company” refers to AMERCO and all of its legal subsidiaries. AMERCO’s executive offices are located at 1325 Airmotive Way, Suite 100, Reno, Nevada 89502-3239, and the telephone number is (775) 688-6300. As used in this Form 10-K, all references to a fiscal year refer to AMERCO’s fiscal year ended March 31 of that year. RepWest and Oxford are consolidated on the basis of calendar years ended December 31. Accordingly, all references to the years 2002, 2001 and 2000 for RepWest and Oxford correspond to AMERCO’s fiscal years 2003, 2002 and 2001, respectively. The Company has four industry segments represented by Moving and Storage Operations (U-Haul), Real Estate, Property and Casualty Insurance (RepWest) and Life Insurance (Oxford). See Note 22 of Notes to Consolidated Financial Statements in Item 8 for financial information regarding the industry segments and geographic areas. I

Item SAC Holding Corporation and SAC Holding Corporation II, Nevada corporations (collectively, “SAC Holdings”), are the holding companies for several individual corporations that own self-storage properties managed by AMERCO subsidiaries in the ordinary course of business 1. ~~The Company has made significant loans to SAC Holdings and is entitled to participate in SAC Holdings’ excess cash flow (after senior debt service). Mark~~ V. Shoen, a significant shareholder of AMERCO and executive officer of U-Haul, owns substantially all of the equity interest of SAC Holdings. The Company does not have an equity ownership interest in SAC Holdings, except for minority investments made by RepWest and Oxford in a SAC Holdings-controlled limited partnership, which holds Canadian self-storage properties. SAC Holdings is not a legal subsidiary of AMERCO. The Company is not liable for the debts of SAC Holdings and there are no default provisions in the Company’s indebtedness that cross-default to SAC Holdings’ obligations nor are there provisions in SAC Holdings indebtedness that cross-default to the Company’s obligations. U-Haul currently manages the properties owned by SAC Holdings under management agreements and receives a management fee. SAC Holdings operates in one business segment — moving and storage operations. For financial reporting purposes, SAC Holdings is treated as a special purpose entity, with no independent equity at risk, and therefore the Company includes the amounts of SAC Holdings in the consolidated financial statements. Business

~~Available Information~~Company Overview

We ~~Our~~ are North ~~annual~~America’s ~~reports~~largest ~~on Form 10~~“do-K,it-yourself” ~~quarterly reports~~moving onand ~~Form 10-Q,~~storage ~~current~~operator ~~reports~~through onour subsidiary ~~Form 8~~U-KHaul ~~and amendments~~International, toInc. ~~those~~(“U-Haul”). ~~reports~~U-Haul ~~filed~~is orsynonymous ~~furnished pursuant to~~with ~~Section 13~~“do-it-yourself” ~~(a) or~~moving 15and ~~(d) of~~storage ~~the~~and ~~Securities Exchange~~is ~~Act~~a ~~are~~leader ~~available~~in ~~free~~supplying ofproducts ~~charge~~and services onto ~~our~~help ~~website~~people ~~at www.uhaul.com~~move asand ~~soon~~store astheir ~~reasonably~~household ~~practicable~~and ~~after~~commercial goods. ~~electronically~~ Our primary ~~filing~~service ~~such~~objective ~~reports~~is ~~with~~to provide the ~~SEC.~~best ~~Information contained~~product onand ~~our~~service ~~website~~to isthe most people ~~not~~at ~~part~~the oflowest ~~this report~~cost.

~~Recent~~We rent our ~~Developments~~distinctive orange and white U-Haul trucks and trailers as well as offer self-storage rooms through a network of nearly 1,450 Company operated retail moving centers and approximately 14,500 independent U-Haul dealers. In addition, we have an independent storage facility network with over 2,900 active affiliates. We also sell U-Haul brand boxes, tape and other moving and self-storage products and services to “do-it-yourself” moving and storage customers at all of our distribution outlets and through our eMove web site.

~~Chapter~~U-Haul is the 11most ~~Filing~~convenient supplier of products and services meeting the needs of North America’s “do-it-yourself” moving and storage market. Our broad geographic coverage throughout the United States and Canada and our extensive selection of U-Haul brand moving equipment rentals, self-storage rooms and related moving and storage products and services provide our customers with convenient “one-stop” shopping.

Through On Republic ~~June 20,~~Western ~~2003~~Insurance ~~(the~~Company (“~~Petition Date~~RepWest”), ~~AMERCO~~our ~~filed~~property aand ~~voluntary~~casualty insurance ~~petition~~subsidiary, ~~for~~we ~~relief~~manage ~~under Chapter 11 of~~ the ~~United~~property, ~~States~~liability ~~Bankruptcy~~and ~~Code~~related ~~(the~~insurance ~~“Bankruptcy~~ claims ~~Code”)~~processing infor ~~the~~U-Haul. ~~United~~Oxford ~~States~~Life ~~Bankruptcy Court,~~Insurance ~~District~~Company ~~of Nevada~~ (~~the~~ “~~Bankruptcy Court~~Oxford”) ~~(Case~~, ~~No. 0352103).~~our ~~Amerco Real Estate Company filed a~~life ~~voluntary~~ insurance ~~petition~~subsidiary, ~~for~~sells ~~relief~~Medicare ~~under~~supplement, ~~Chapter 11~~life ~~on August 13~~insurance, ~~2003. AMERCO’s other subsidiaries were not~~annuities ~~included in either of the filings. AMERCO~~ and other ~~Real~~related ~~Estate~~products ~~will continue~~ to ~~manage~~non ~~their~~U-Haul ~~properties~~customers and ~~operate~~also ~~their~~administers ~~businesses~~the ~~as “debtor~~ self-~~in-possession”~~insured ~~under~~employee ~~the~~health ~~jurisdiction of the Bankruptcy Court~~ and indental ~~accordance~~plans ~~with~~for ~~the~~Arizona ~~applicable provisions~~employees of the ~~Bankruptcy Code. The Bankruptcy Court approved~~ ~~the joint~~ Company.

~~Table~~We were founded in 1945 under the name “U-Haul Trailer Rental Company.” Since 1945, we have rented trailers. Starting in 1959, we rented trucks on a one-way and in-town basis exclusively through independent U-Haul dealers. Since 1974, we have developed a network of ~~Contents~~U-Haul managed retail centers, through which we rent our trucks and trailers and sell moving and self-storage products and services to complement our independent dealer network.

Available administration of the Chapter 11 proceedings. Hereafter, references to AMERCO’s Chapter 11 also include Amerco Real Estate Company as applicable. In general, as debtor-in-possession, AMERCO is authorized under Chapter 11 to continue to operate as an ongoing business, but may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Specific information pertaining to the bankruptcy filing may be obtained from our website www.amerco.com. The information on this website is not considered part of this report. Information

AMERCO ~~The~~ and ~~Chapter 11~~U-Haul ~~filing~~are ~~was~~each ~~undertaken~~incorporated ~~to facilitate~~in aNevada. ~~restructuring of AMERCO~~U-Haul’s ~~debt~~Internet inaddress ~~response to~~is ~~liquidity~~ www.uhaul.com. ~~issues,~~On ~~which~~AMERCO’s ~~developed~~investor ~~during~~relations ~~the~~web ~~second~~site, ~~half of 2002~~www. ~~In February~~amerco.com, ~~2002,~~we post the ~~Company’s~~following ~~prior~~filings ~~independent auditor~~as ~~advised~~soon ~~the~~as ~~Company~~practicable ~~that~~after ~~its~~they ~~financial~~are ~~statements would~~electronically ~~have~~ filed with toor befurnished ~~consolidated~~to ~~for~~the ~~reporting~~United ~~purposes~~States ~~with~~Securities ~~those~~and ofExchange ~~SAC~~Commission ~~Holdings.~~ (“SEC”): ~~This~~our ~~consolidation,~~annual ~~and~~report ~~the~~on ~~resulting~~Form ~~lack~~10-K, ofour ~~clarity regarding~~quarterly ~~AMERCO’s~~reports ~~operating~~on ~~results~~Form ~~and~~10-Q, ~~financial~~our ~~condition,~~ current ~~contributed~~reports ~~substantially~~on ~~and~~Form ~~directly~~8-K, toour aproxy ~~series~~statement ~~of significant~~related ~~developments adversely impacting the Company’s access~~ to ~~capital.~~our ~~The~~annual ~~consolidation~~ meeting of ~~SAC~~stockholders, ~~Holdings~~and ~~resulted~~any ~~in a~~amendments ~~material~~to ~~decrease~~those inreports ~~the~~or ~~Company’s~~statements ~~reported~~filed ~~net earnings~~or ~~and~~ furnished ~~net~~pursuant ~~worth~~to ~~and~~Section 13(a) ~~corresponding~~or ~~increase~~15(d) inof ~~its~~the ~~consolidated leverage~~Securities ~~ratios~~Exchange Act of 1934. ~~Consolidating~~All ~~SAC~~such ~~Holdings~~filings ~~also~~on ~~required~~our ~~a costly~~web ~~and~~site ~~time-consuming~~are ~~restatement~~available free of ~~prior period results~~charge. ~~that~~ Additionally, ~~led~~you towill ~~the~~find ~~untimely~~these ~~filing~~materials ofon ~~quarterly and annual reports with~~ the ~~Securities~~SEC’s ~~and~~website ~~Exchange Commission.~~at www.sec.gov.

Products As the situation was occurring, AMERCO was attempting to negotiate the replacement of its $400 million credit facility with JP Morgan Chase. On June 28, 2002, AMERCO entered into a new credit facility with JP Morgan Chase, which reduced AMERCO’s line of credit to $205 million. The terms of the new JP Morgan Chase facility required that AMERCO raise $150 million through a capital markets transaction prior to October 15, 2002. Additionally, AMERCO had payments for principal and ~~related~~Rental SWAP arrangements under AMERCO’s Series 1997-C Bond Backed Asset Trust (“BBAT”) maturing October 15, 2002. In response to these requirements, AMERCO undertook a $275 million bond offering. The bond offering was ultimately unsuccessful, exemplifying AMERCO’s significantly reduced access to the capital markets to meet its financial needs due to, among other things, the confusion and adverse perception resulting from the SAC Holdings consolidation. On October 15, 2002, AMERCO defaulted on the repayment of the BBATs, which led to cross-defaults and an acceleration of substantially all of the other outstanding instruments in the Company’s debt structure. Equipment

Our ~~Since~~ customers ~~that~~are ~~time,~~primarily ~~AMERCO~~“do-it-yourself” ~~has~~household ~~continuously negotiated~~movers. ~~with~~U-Haul ~~its creditor groups to attempt to reach a~~moving ~~consensual~~ equipment ~~restructuring~~is ~~arrangement~~specifically ~~that~~designed, ~~would~~engineered ~~provide~~and manufactured for the ~~repayment~~“do-it-yourself” ofhousehold ~~all~~mover. ~~creditors~~These ~~and~~“do-it-yourself” ~~the~~movers ~~maintenance of AMERCO’s~~include ~~existing~~ individuals ~~equity.~~and ~~However,~~families ~~while~~moving ~~substantial~~their ~~progress~~belongings ~~has~~from ~~been made~~one inhome ~~negotiations~~to ~~with certain key creditor constituencies~~another, ~~the~~ college ~~complexity~~students ofmoving ~~AMERCO’s~~their ~~capital~~belongings, ~~structure~~vacationers and ~~the~~sports enthusiasts ~~diversity~~ needing ofextra ~~interests~~space ofor ~~the~~having ~~creditor~~special ~~groups~~towing ~~has made an equitable and consensual restructuring~~needs, ~~outside~~people oftrying ~~formal reorganization~~to ~~proceedings,~~save ~~exceedingly difficult. Accordingly,~~on ~~AMERCO~~ home ~~filed~~furniture ~~its~~and ~~Chapter 11~~home ~~proceeding~~appliance todelivery ~~provide~~costs, ~~the structure~~ and ~~framework~~“do-it-yourself” tohome remodeling ~~finalize~~ and ~~implement~~gardening ~~a restructuring~~enthusiasts ofwho ~~all~~need ofto ~~its debt.~~transport materials.

As We of March ~~have~~31, ~~secured~~2007, ~~from~~our ~~Wells~~rental ~~Fargo~~fleet ~~Foothill~~consisted ~~a $300 million~~of ~~debtor-in-possession~~approximately ~~financing~~100,000 ~~facility (the~~trucks, ~~“DIP Facility”)~~ 78,500 trailers and a31,100 ~~commitment~~towing ~~for~~devices. ~~a $650 million~~This ~~bankruptcy~~equipment ~~emergence~~and ~~facility.~~our ~~These~~U-Haul ~~financing~~brand ~~arrangements~~ of ~~provide~~self-moving ~~the~~products ~~basic~~and ~~foundation~~services ~~upon~~are ~~which~~available ~~AMERCO plans~~through toour ~~build~~network ~~its reorganization plan. On August 13, 2003,~~of ~~Real~~ managed ~~Estate~~retail ~~was~~moving ~~filed~~centers ~~into~~and ~~Chapter 11~~independent ~~proceedings~~U-Haul indealers. ~~order~~Independent U-Haul to dealers ~~facilitate~~receive ~~granting~~rental ~~security~~equipment tofrom the ~~lending~~Company, ~~group~~act inas ~~the~~a ~~real estate~~rental ~~assets.~~agent ~~Real Estate administers all of the Company’s~~and ~~real~~ are paid ~~property~~a ~~and~~commission ~~owns~~based ~~approximately~~on ~~90%~~gross ofrevenues ~~the~~generated ~~Company’s real~~from ~~estate~~their ~~assets.~~U-Haul rentals.

The exit or emergence financing facility will be used to fund cash payments to AMERCO’s creditors, with the balance of the creditor claims being paid through the issuance of new, restructured debt securities at market interest rates. Notwithstanding AMERCO’s default on the BBATs in October 2002, and the resulting cross-defaults under AMERCO’s other debt facilities, until the Petition Date AMERCO has remained current in interest payments on all of its debt obligations, in many cases at default interest rates. 2

Our In rental ~~order~~truck tochassis ~~exit~~are ~~Chapter 11~~manufactured ~~successfully,~~by domestic and foreign truck ~~AMERCO~~ manufacturers. ~~will~~These ~~need~~chassis toare ~~propose,~~joined with the U-Haul designed and manufactured ~~obtain~~van ~~confirmation~~boxes byat U-Haul operated manufacturing and assembly facilities strategically located throughout the United States. U-Haul rental trucks feature ~~Bankruptcy~~ our ~~Court~~proprietary ofLowest DeckSM, which provides aour ~~plan~~customers with extra ease of ~~reorganization~~loading. ~~that~~The ~~satisfies~~loading ~~the~~ramps on our ~~requirements~~ trucks ofare the ~~Bankruptcy~~widest ~~Code~~in the industry, which reduce the time needed to move belongings. AOur ~~plan~~Gentle ofRide ~~reorganization~~SuspensionSM ~~would~~ helps our ~~resolve,~~customers ~~among~~safely ~~other~~move ~~things~~delicate and prized possessions. Also, ~~AMERCO’s~~the ~~pre-petition~~engineers ~~obligations~~ at ~~and~~our ~~set~~U-Haul ~~forth~~Technical Center determined that the ~~revised~~softest ~~capital~~ride ~~structure.~~in ~~The~~our trucks ~~timing~~ was at the front of ~~filing~~the avan ~~plan~~box. ofConsequently, ~~reorganization~~they bydesigned ~~AMERCO~~the ~~will~~part ~~depend~~of the on van box that hangs over the ~~timing~~front cab of the truck to be the location for our customers to place their most fragile items during their move. We call this area Mom’s AtticSM.

2Our distinctive orange trailers are also manufactured at these same U-Haul operated manufacturing and assembly facilities. These trailers are well suited to the low profile of many of today’s newly manufactured automobiles. Our engineering staff is committed to making our trailers easy to tow, aerodynamic and fuel efficient.

~~Table~~To provide ofour ~~Contents~~self-move customers with added value, our rental trucks and trailers are designed for fuel efficiency. To help make our rental equipment more trouble free, we perform extensive preventive maintenance and repairs.

We ~~and~~ also provide ~~outcome~~customers ofwith ~~numerous~~equipment ~~other~~to ~~ongoing~~transport ~~matters~~their ~~in the Chapter 11 case~~vehicle. ~~Although~~We ~~AMERCO~~provide ~~expects to file a~~three ~~“full-value”~~ towing ~~plan~~options, ofincluding: ~~reorganization~~auto ~~that~~transport, ~~provides creditors~~in ~~with~~which aall ~~combination~~four ofwheels ~~cash~~are ~~and~~off the ground, ~~new~~tow ~~debt~~dolly, ~~securities equal~~in towhich the ~~full~~front ~~amount~~wheels of ~~their~~the ~~allowed~~towed ~~claims~~vehicle asare ~~well~~off asthe ~~AMERCO’s~~ ground, ~~emergence~~and ~~from~~tow ~~bankruptcy as a going concern~~bar, ~~there~~ ~~can~~where beall nofour ~~assurance~~wheels atare ~~this~~on ~~time that a plan of reorganization will be confirmed by~~ the ~~Bankruptcy Court or that any such plan will be implemented successfully~~ground.

To ~~Under~~ help our ~~Section 362~~customers ofload ~~the~~their ~~Bankruptcy~~boxes ~~Code~~and larger household appliances and furniture, ~~the~~ we offer ~~filing~~several ofaccessory arental ~~bankruptcy~~items. ~~petition~~Our ~~automatically~~utility ~~stays~~dolly ~~most~~has a lightweight design ~~actions~~ and ~~against~~is easy to maneuver. Another rental accessory is our four wheel dolly, which provides a ~~debtor~~large, ~~including~~flat ~~most~~surface ~~actions~~for tomoving ~~collect~~dressers, wall units, pianos and ~~pre-petition~~ other large ~~indebtedness~~household oritems. toU-Haul ~~exercise~~appliance ~~control~~dollies ~~over~~provide the leverage needed ~~property~~ to move ofrefrigerators, ~~the~~freezers, ~~debtor’s~~washers ~~estate~~and dryers easily and safely. ~~Absent~~These utility, anfurniture ~~order~~and ofappliance dollies, along with the low decks and the ~~Bankruptcy~~ wide loading ~~Court,~~ramps ~~substantially~~on all ~~pre~~U-~~petition~~Haul ~~liabilities~~trucks and trailers, are ~~subject~~ todesigned ~~settlement~~for ~~under~~easy ~~the~~loading and ~~plan~~unloading of ~~reorganization~~our customers’ belongings.

The ~~Under~~ total package ~~Section 365~~U-Haul ofoffers the ~~Bankruptcy~~“do-it-yourself” ~~Code, AMERCO~~household ~~may~~mover ~~assume,~~doesn’t ~~assume~~end ~~and assign~~with trucks, ortrailers ~~reject~~and ~~certain executory~~accessory ~~contracts~~rental ~~and~~items. ~~unexpired~~Our ~~leases,~~moving ~~subject~~supplies toinclude ~~the~~a ~~approval~~ wide array of ~~the~~affordably ~~Bankruptcy~~priced ~~Court~~U-Haul ~~and~~brand ~~certain other conditions. In general~~boxes, ~~rejection~~tape ofand anpacking ~~unexpired lease or executory~~materials. ~~contract~~ We also isprovide ~~treated~~specialty asboxes afor ~~pre-petition~~dishes, ~~breach~~computers ofand ~~the~~sensitive ~~lease or~~electronic ~~contract~~ equipment, incarton ~~question.~~sealing ~~Subject~~tape, tosecurity ~~certain exceptions~~locks, ~~this rejection~~and ~~relieves~~packing ~~AMERCO~~supplies, ~~of performing its future obligations~~like ~~under~~ wrapping ~~that~~paper ~~lease~~and orcushioning ~~contract~~foam. ~~but~~U-Haul ~~entitles~~brand ~~the~~boxes ~~lessor~~are orspecifically ~~contract~~sized ~~counterparty~~ to ~~a pre-petition general unsecured claim for~~ ~~damages~~ make ~~caused~~loading ~~by the deemed breach~~easier.

U-Haul ~~Counterparties~~ is North toAmerica’s ~~these~~largest ~~rejected~~seller ~~contracts~~and orinstaller of hitches and towing systems. In ~~leases~~ addition ~~may~~to ~~file~~towing ~~proofs~~U-Haul ofequipment ~~claim~~these ~~against~~hitching ~~AMERCO’s~~and ~~estate~~towing ~~for~~systems can tow ~~such~~ jet ~~damages~~skis, motorcycles, boats, campers and horse trailers. ~~Generally~~Our hitches, ~~the~~ball mounts, ~~assumption~~and ofballs anundergo ~~executory~~stringent ~~contract~~testing requirements. Each year, more than or one ~~unexpired~~million ~~lease~~customers ~~requires~~visit aour ~~debtor~~locations tofor ~~cure~~expertise ~~most~~on ~~existing~~complete towing ~~defaults~~ systems, ~~under~~trailer ~~such~~rentals ~~executory~~and ~~contract~~the orlatest ~~unexpired~~in ~~lease~~towing accessories.

~~The United States Trustee for the District of Nevada (the “~~U~~.S. Trustee”)~~ -Haul has ~~appointed~~one ~~an official committee~~ of ~~unsecured~~North ~~creditors (the “Creditors~~America’ ~~Committee”)~~s ~~and~~largest anpropane ~~Equity~~barbeque-refilling ~~Committee.~~networks, ~~The Creditors’~~with ~~Committee~~ over ~~and~~1,000 ~~Equity~~locations ~~Committee~~providing ~~and~~this ~~their~~convenient ~~respective legal representatives have a right to be heard on certain matters that come before the Bankruptcy Court~~service. ~~There~~We ~~can~~employ ~~be no assurance that~~trained, ~~the~~ certified ~~Creditors’~~personnel ~~Committee~~to ~~and~~refill ~~Equity~~all ~~Committee~~propane ~~will support AMERCO’s positions or AMERCO’s ultimate plan of reorganization~~cylinders, ~~once proposed,~~ and ~~disagreements~~our ~~between~~network ~~AMERCO~~of propane ~~and~~ dispensing ~~the~~locations ~~Creditors’~~is ~~Committee and Equity Committee could protract~~ the ~~Chapter 11~~largest ~~case,~~automobile ~~could~~alternative ~~negatively~~refueling ~~impact~~network ~~AMERCO’s ability to operate during the Chapter 11~~ in ~~case,~~ North ~~and could prevent AMERCO’s emergence from Chapter 11~~America.

Self-storage ~~At this time, it~~ is ~~not~~a ~~possible~~natural tooutgrowth ~~predict accurately the effect~~ of the ~~Chapter 11~~self-moving ~~reorganization process on the Company’s business or when AMERCO may emerge from Chapter 11~~industry. ~~The~~Conveniently ~~Company’s~~located ~~future results depend~~U-Haul on self-storage ~~the~~rental ~~timely~~facilities ~~and~~provide ~~successful~~clean, ~~confirmation~~dry and ~~implementation~~secure ~~of a~~space ~~plan~~for storage of ~~reorganization.~~household ~~The rights~~ and ~~claims~~commercial ofgoods, ~~various creditors~~with ~~and~~storage ~~security~~units ~~holders~~ranging ~~will~~in besize ~~determined by the plan as~~from ~~well. Although AMERCO expects to file and consummate a~~ 6 ~~“full~~ square ~~value”~~feet ~~plan of reorganization that provides creditors with a combination of cash and new debt securities equal~~ to ~~the~~845 ~~full~~square ~~amount~~feet. ofWe ~~their~~operate ~~allowed~~nearly ~~claims~~1,055 ~~and~~self-storage ~~also~~locations ~~preserves~~ in ~~the~~North ~~value of AMERCO’s common and preferred stock~~America, no ~~assurance~~with ~~can~~more bethan ~~given as to what values~~383,000 ifrentable ~~any,~~rooms ~~will~~comprising beapproximately ~~ascribed~~ 33.7 inmillion ~~the~~square ~~bankruptcy~~feet ~~proceedings~~of torentable ~~each~~storage ~~of these constituencies~~space. ~~Accordingly,~~Our ~~the~~self-storage ~~Company urges that appropriate~~centers ~~caution~~ feature bea ~~exercised~~wide ~~with~~array ~~respect to existing and future investments in any~~ of ~~such~~security ~~securities~~measures, ~~and~~ranging ~~claims.~~from ~~The Company’s~~electronic ~~financial settlements included in this~~property ~~Form 10-K~~ access docontrol ~~not~~gates ~~reflect~~to ~~the~~individually ~~effects~~alarmed ofstorage ~~the bankruptcy filing~~units. ~~Also,~~At ~~the~~many ~~auditor’s opinion contains a going~~centers, ~~concern~~ we offer ~~opinion~~climate ~~that~~controlled ~~raises~~storage ~~substantial~~rooms ~~doubt~~to ~~about~~protect ~~our~~temperature ~~ability~~sensitive goods to such ~~continue~~ as avideo ~~going~~tapes, ~~concern.~~albums, ~~See~~photographs ~~Note 1~~and ofprecious ~~Notes to~~wood ~~Consolidated Financial Statements in Item 8~~ furniture.

~~Financial~~Additionally, we ~~Statement~~offer ~~Re-audit~~moving and ~~Resulting~~storage ~~Restatement~~protection ofpackages ~~2002~~such as Safemove and ~~2001~~Safetow, protecting ~~Financial~~moving ~~Statements~~and towing customers with a damage waiver, cargo protection and medical and life coverage, and Safestor, protecting storage customers from loss on their goods in storage. For our customers who desire additional coverage over and above the standard Safemove protection, in fiscal 2007 we began offering our new Super Safemove product. This package provides the rental customer with a layer of primary liability protection.

BDO Seidman, LLP (“BDO”) has completed the re-audit of the financial statements of AMERCO and its subsidiaries and SAC Holdings and its subsidiaries for the fiscal years ended March 31, 2002 and 2001. In connection with this re-audit, it was determined that there was a need for the Company to record adjustments relating to insurance reserves for prior periods at AMERCO and its subsidiary, RepWest; to adjust for recognizing losses of Private Mini pursuant to the equity method; as well as other significant adjustments. These adjustments have resulted in the restatement of the Company’s financial statements for the fiscal years ended March 31, 2002 and 2001. 3

3Our eMove web site, www.eMove.com, is the largest network of customers and businesses in the self-moving and self-storage industry. The eMove network consists of channels where customers, businesses and service providers transact business. The eMove Moving Help marketplace connects “do-it-yourself” movers with independent service providers to assist movers pack, load, unload, clean, drive and other services. Thousands of independent service providers already participate in the eMove network.

~~Table~~Through the eMove Storage Affiliate Program, independent storage businesses can join the world’s largest storage reservation system. Self-storage customers making a reservation through eMove can access all of ~~Contents~~the U-Haul self-storage centers and all of our independent storage affiliate partners for even greater convenience to meet their self-storage needs.

	2002					2001
	As Previously					As Previously
	Reported		Restated			Reported		Restated
			(In thousands)
Revenues		2,058,506		2,193,579			1,882,447		2,029,480
Net earnings (loss)		2,721		(47,440	)		1,012		(42,110	)

Description of Operating Segments

AMERCO ~~This~~ has ~~report~~four ~~contains~~reportable ~~restated~~segments. ~~consolidated financial~~They ~~statements~~are ~~for~~Moving ~~the~~and ~~years~~Storage ~~ended March 31~~(AMERCO, ~~2002~~U-Haul and ~~2001~~ Real Estate), Property and ~~for~~Casualty ~~the~~Insurance, ~~quarters~~Life ~~ended~~Insurance inand ~~the~~SAC ~~periods~~Holding II Corporation ~~ended~~and its subsidiaries (“SAC Holding II”) (see Note 2 “Principles of ~~March 31,~~ Consolidation” ~~2002~~to ~~and~~the ~~December 31,~~“Notes ~~2002.~~to Consolidated Financial Statements”).

Financial ~~The~~ information ~~major components~~ for ~~the~~each ~~restatement were related to 1) insurance and 2) the equity loss recognition~~ of ~~Private~~our ~~Mini~~Operating bySegments ~~AMERCO.~~is ~~For~~included ~~2002~~in the ~~insurance related~~Notes ~~after tax adjustment was $45 million and for 2001~~to it Consolidated ~~was~~Financial ~~$38 million.~~Statements ~~The~~as ~~Private~~part ~~Mini~~of ~~related~~“Item ~~adjustment~~8: ~~for 2002~~Financial ~~was~~Statements ~~$7 million~~ and Supplementary ~~for~~Data” ~~2001~~of itthis ~~was $5~~report.~~7 million.~~

Moving ~~As a result of the restatement, total assets as of March 31, 2002 decreased from $3,773,455 to $3,732,317~~ and ~~total~~Storage ~~stockholders’~~Operating ~~equity as of March 31, 2002 decreased from $499,106 to $381,524.~~ Segment

Our ~~For~~ “do-it-yourself” ~~more~~moving ~~information~~business ~~about~~consists of U-Haul truck and trailer rentals and U-Haul moving supply and service sales. Our Moving and Storage Operating Segment consists of the ~~reinstatements~~rental of trucks, trailers, specialty rental items ~~see~~ and self-storage ~~Note 2~~spaces primarily to the ~~Consolidated~~household ~~Financial~~mover ~~Statements~~as well as sales of moving supplies, towing accessories and propane. Operations are conducted under the registered trade name U-Haul® throughout the United States and Canada.

~~SEC~~Net revenue ~~Investigation~~from our Moving and Storage operating segment were approximately 89.9%, 90.2% and 89.2% of consolidated net revenue in fiscal 2007, 2006 and 2005, respectively.

During ~~The~~ fiscal ~~Securities and Exchange Commission (“SEC”) has issued a formal order of investigation to determine whether the Company has violated the Federal securities laws. On January 7~~2007, ~~2003,~~ the Company ~~received the~~added ~~first~~over ~~of four subpoenas issued by the SEC. SAC Holdings~~22,500 ~~the Company’s~~new ~~current~~trucks and ~~former~~nearly ~~auditors~~2,000 ~~and others have also~~new ~~received~~ trailers ~~one or more subpoenas relating~~ to ~~this~~our ~~matter.~~existing ~~The Company~~rental ~~is cooperating fully with the SEC and is facilitating the expeditious review of its financial statements and any other issues that may arise~~fleet. ~~The~~These ~~Company~~additions ~~has~~were ~~produced~~ a ~~large~~combination ~~volume~~ of ~~documents and other materials in response to the subpoenas,~~ ~~and~~ U-Haul ~~the~~manufactured ~~Company~~vehicles ~~is continuing to assemble~~ and ~~produce additional documents and materials for the SEC~~purchases. ~~Although~~As ~~the~~new ~~Company~~trucks ~~has fully~~were ~~cooperated~~added ~~with~~to the ~~SEC in this matter and intends to~~ ~~continue to fully cooperate~~ fleet, the ~~SEC~~Company ~~may~~rotated ~~determine~~out ~~that~~of the ~~Company~~ ~~has~~fleet ~~violated~~older ~~Federal securities laws~~trucks. WeThe ~~cannot~~total ~~predict~~rental ~~when~~ truck fleet ~~this~~size ~~investigation~~increased ~~will~~incrementally befrom ~~completed~~last orfiscal ~~its outcome~~year. IfThe ~~the~~continued ~~SEC~~ expansion ~~makes~~and areplacement ~~determination~~of ~~that~~our werental ~~have~~fleet ~~violated~~will ~~Federal securities~~allow ~~laws,~~us weto ~~may~~enter ~~face~~new ~~sanctions, including, but not~~markets ~~limited~~ and to, ~~significant~~achieve ~~monetary~~better ~~penalties~~utilization ~~and~~in ~~injunctive~~existing ~~relief~~markets.

~~Department~~Within our truck and trailer rental operation we are focused on expanding our independent dealer network to provide added convenience for our customers. U-Haul has approximately 14,500 dealers which are independent contractors, and are exclusive to U-Haul International, Inc. An independent dealer must maintain a singular fleet of ~~Labor~~U-Haul ~~Investigation~~vehicles. U-Haul maximizes vehicle utilization by effective distribution of the truck and trailer fleets among the nearly 1,450 Company operated centers and approximately 14,500 independent dealers. Utilizing its sophisticated reservations management system, the Company’s centers and dealers electronically report their inventory in real-time, which facilitates matching equipment to customer demand. Approximately 55% of all U-Move rental revenue originates from the Company operated centers.

At ~~The United States Department of Labor~~ our ~~(“DOL”)~~ owned isand ~~presently~~operated ~~investigating~~retail ~~whether~~centers ~~there~~we ~~were violations~~have ofimplemented ~~the~~several ~~Employee~~customer ~~Retirement Income Security Act of~~service ~~1974 (“ERISA”) involving the AMERCO Employee Savings, Profit Sharing, and Employee Stock Ownership Plan (the “Plan”)~~ initiatives. ~~The~~These ~~DOL~~initiatives ~~has~~include ~~interviewed~~improving amanagement ~~number~~ of ~~Company representatives~~our ~~as well as the Plan fiduciaries and has issued a~~rental ~~subpoena~~ equipment to ~~the~~provide ~~Company~~our ~~and~~retail acenters ~~subpoena~~with ~~to SAC Holdings. At~~ the ~~present~~ ~~time,~~right ~~the~~type ~~Company~~of isrental ~~unable to determine whether the DOL~~equipment, ~~will~~ at ~~assert any claims against~~ the ~~Company,~~right ~~SAC~~time ~~Holdings, or the Plan fiduciaries. The DOL has asked AMERCO~~ and ~~its~~at ~~current directors as well as~~ the ~~Plan~~most ~~Trustees~~convenient tolocation ~~sign~~for anour ~~agreement tolling the statute of limitations until December 31~~customers, ~~2003~~ ~~with~~ effective ~~respect~~marketing ~~to any claims arising out~~ of ~~certain~~our ~~transactions between~~broad ~~AMERCO~~line ~~or any affiliate~~ of ~~AMERCO~~self-moving ~~and~~related ~~SAC~~products ~~Holdings or any of its affiliates~~ and ~~such persons have done so. The DOL~~ ~~recently~~ services, ~~asked~~maintaining ~~such~~longer ~~parties~~hours ~~to extend the tolling agreement. The DOL has not advised the Company that it believes that any violations~~ of ~~ERISA~~operation ~~have in fact occurred. Instead, the DOL is simply investigating potential violations. The Company intends~~ to ~~take~~provide ~~any~~more ~~corrective action that may be needed in light of the~~convenience ~~DOL’s ultimate findings. Although the Company has fully cooperated with the DOL in this matter and intends~~ to ~~continue~~ to our ~~fully cooperate~~customers, ~~the~~and ~~DOL~~increasing ~~may~~staff ~~determine~~by ~~that~~attracting ~~the~~and ~~Company~~retaining ~~has~~“moonlighters” ~~violated~~(part-time ~~ERISA.~~U-Haul Inemployees ~~that~~with ~~event,~~full-time ~~the~~jobs ~~Company~~elsewhere) ~~may~~during ~~face~~our ~~sanctions,~~peak ~~including, but not limited to, significant monetary penalties~~ hours ~~and~~ of ~~injunctive relief~~operation.

4Effective marketing of our self-moving related products and services, such as boxes, pads and insurance, helps our customers have a better moving experience and helps them protect their belongings from potential damage during the moving process. We are committed to providing a complete line of products selected with the “do-it-yourself” moving and storage customer in mind.

~~Table of Contents~~4

~~Nasdaq~~Our self-storage ~~Listing~~business ~~Status~~consists of U-Haul self-storage room rentals, self-storage related products and service sales and management of self-storage facilities not owned by the Company.

~~On June~~U-Haul ~~24, 2003, the Company received a~~is ~~letter~~ one ~~from Nasdaq indicating that, in light~~ of ~~AMERCO’s~~ ~~recent Chapter 11 filing, a Nasdaq Listing Qualifications Panel (~~ the ~~“Panel”)~~largest ~~would~~North ~~consider~~American ~~such~~operators ~~filing~~of ~~and associated~~self-storage ~~concerns in rendering a determination regarding AMERCO’s continued listing status. Nasdaq has requested,~~ and ~~AMERCO~~ has ~~provided,~~been ~~information~~a ~~regarding AMERCO’s~~leader ~~Chapter 11 filing and the anticipated effect of the~~ in ~~reorganization process on~~ the ~~shareholders~~self-storage ofindustry ~~AMERCO~~since 1974. ~~On August~~U-Haul ~~13,~~operates over ~~2003~~383,000 ~~AMERCO~~storage ~~received~~rooms, acomprising ~~letter~~approximately ~~from~~33.7 ~~Nasdaq indicating~~million ~~that~~square ~~the Panel has determined to continue the listing~~feet of ~~AMERCO’s common stock on Nasdaq provided that:~~ ~~(1) on~~ storage orspace ~~before~~with ~~August 22,~~locations ~~2003,~~in ~~AMERCO~~49 ~~files~~states ~~this report~~ and ~~its Form~~ 10-Q ~~for~~Canadian ~~the~~provinces. quarter ended June 30, 2003 with the SEC and Nasdaq (Nasdaq has been advised that this deadline was not met and further discussions with Nasdaq are anticipated); (2) on or before deadlines determined by the Panel, AMERCO submits to Nasdaq a copy of the CompanyU-Haul’s ~~plan of reorganization as filed with the~~ ~~bankruptcy~~ owned ~~court,~~and amanaged ~~copy~~self-storage offacility ~~any~~locations ~~amendments~~range toin ~~the~~size ~~plan~~up ~~of reorganization as submitted~~ to ~~the bankruptcy court; documentation evidencing that AMERCO has commenced the solicitation of votes regarding the plan of reorganization~~171, as500 ~~well~~ square asfeet ~~documentation evidencing that the plan~~ of ~~reorganization has~~storage ~~been confirmed by the bankruptcy court; and (3) on or before January 9~~space, ~~2004, AMERCO submits documentation to Nasdaq evidencing its emergence from bankruptcy. In addition to the foregoing, AMERCO must comply~~ with ~~all~~individual ~~other~~storage ~~requirements for~~units ~~continued~~in ~~listing~~sizes ~~on Nasdaq. Although AMERCO intends to seek~~ranging a from ~~modification~~6 ofsquare ~~the~~feet ~~deadlines~~ to ~~file~~845 ~~its~~square ~~Form 10-K and Form 10-Q as discussed above and to take all actions available to maintain its Nasdaq listing, there can be no assurance that AMERCO will be able to do so~~feet. ~~In addition, as a result of the Chapter 11 filing and the late filing of this report, AMERCO’s trading symbol was changed by Nasdaq to “UHAEQ”.~~

~~New~~The primary ~~York~~market ~~Stock~~for ~~Exchange~~storage ~~Listing~~rooms ~~Status~~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 ~~The New York Stock Exchange (the~~ is ~~“NYSE”)~~ an ~~has~~online ~~completed~~marketplace ~~a review of the continued listing of the Series A 8 1/2% preferred stock of AMERCO following the Company’s filing for protection under Chapter 11. According to NYSE, this assessment has shown~~ that ~~the~~connects ~~Company~~consumers ~~is currently in compliance with all of the NYSE’s quantitative continued listing standards. The NYSE will continue~~ to ~~closely~~over ~~monitor~~3,900 ~~events~~independent ~~at the Company in~~sellers ~~connection with assessing the appropriateness~~ of ~~continued listing~~Moving ofHelp™ ~~the~~and ~~Company’s~~over ~~preferred~~2,900 ~~stock~~Self-Storage Affiliates. ~~The~~Our ~~NYSE~~network ~~has indicated that it will give consideration to immediate suspension~~ of ~~the Company’s preferred stock if~~ ~~authoritative~~ customer-rated ~~advice~~Affiliates isprovides ~~received~~pack ~~that~~and ~~the~~load ~~Company’s securities~~help, ~~including~~cleaning ~~the common stock~~help, ~~are without value, or if~~ ~~the~~ self-storage ~~Company~~and ~~subsequently~~similar ~~falls below any of the NYSE’s quantitative continued listing standards. In addition~~services, ~~the~~all ~~NYSE noted~~over ~~that~~North ~~it may, at any time, suspend a security if it believes that continued dealings in the security on the NYSE are not advisable~~America.

~~AMERCO~~An individual ~~Chief~~or ~~Financial~~a ~~Officer~~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.

With ~~On April 14~~ over 100,000 ~~2003,~~unedited ~~Gary~~reviews ~~B. Horton, Treasurer~~ of ~~AMERCO~~independent Affiliates, ~~announced~~the ~~his~~marketplace ~~retirement~~has facilitated ~~from~~thousands ~~the~~of ~~Company~~Moving Help® and ~~its subsidiaries~~Self-Storage ~~effective~~transactions ~~August 1,~~all ~~2003. On April 21,~~over ~~2003,~~ North ~~Andrew A~~America. ~~Stevens~~We ~~joined~~believe ~~AMERCO~~that acting as ~~its~~an ~~Chief Financial Officer. Mr. Stevens left on August 7~~intermediary, ~~2003~~with tolittle ~~pursue~~added ~~other~~ investment, ~~opportunities.~~serves ~~The~~the ~~search~~customer ~~for~~in a ~~new~~cost ~~Chief~~effective ~~Financial Officer~~manner. Our goal is into further ~~progress.~~utilize ~~Mr. Horton~~our ~~has~~web-based ~~agreed~~technology platform to ~~postpone his~~increase ~~retirement~~service to consumers ~~facilitate~~and ~~the~~businesses ~~transition~~in to the ~~new~~moving ~~Chief Financial~~and ~~Officer~~storage market.

~~Arizona~~Property and ~~Department~~Casualty of Insurance ~~Supervision~~Operating ~~of Republic Western~~Segment

RepWest On provides ~~May 20,~~loss ~~2003,~~adjusting ~~RepWest~~and ~~consented~~claims tohandling ~~an Order~~ for ~~Supervision~~U-Haul ~~issued~~through byregional offices across North America. Through the ~~Arizona~~Company’s ~~Department~~affiliation ofwith RepWest, U-Haul ~~Insurance~~ offers ~~(“DOI”).~~its ~~The~~customers ~~DOI~~moving ~~determined~~and ~~that~~storage contents insurance products, branded ~~RepWest’s~~ Safemove ~~level~~and ofSafestor, ~~risk~~respectively. ~~based~~The ~~capital~~Safemove ~~(“RBC”)~~policy provides moving ~~allowed~~ customers ~~for~~with ~~regulatory~~a ~~control.~~damage ~~Pursuant~~waiver, tocargo ~~this~~protection ~~order~~and medical and life coverage. ~~Arizona~~ Management ~~law,~~believes ~~during~~that ~~the~~its ~~period~~Safemove ofproduct ~~supervision,~~is ~~RepWest~~highly ~~may~~competitive, ~~not~~as ~~engage~~ competing inpolicies ~~any~~contain deductibles, higher premiums and more confusing layers of ~~the~~coverage. ~~following~~We ~~activities~~continue ~~without~~to focus on increasing the ~~prior approval~~penetration of ~~the~~these products. ~~DOI:~~The business plan for RepWest includes offering property and casualty products for other U-Haul related programs.

a.Net revenue ~~dispose~~from ~~of,~~our ~~convey~~Property orand ~~encumber~~Casualty ~~any~~Insurance ofoperating ~~its~~segment ~~assets~~were approximately or1.9%, ~~its~~1.8% ~~business~~and ~~in force; b~~2.1% ~~withdraw any~~ of ~~its~~consolidated ~~bank~~net ~~accounts;~~revenue c.in ~~lend~~fiscal ~~any~~2007, 2006 ofand ~~its~~2005, ~~funds;~~respectively.

5Life Insurance Operating Segment

~~Table~~Oxford originates and reinsures annuities, ordinary life and Medicare supplement insurance. Oxford also administers the self-insured employee health and dental plans for Arizona employees of ~~Contents~~the Company.

d.Net revenue ~~invest~~from ~~any~~our ofLife ~~its~~Insurance ~~funds;~~operating e.segment ~~transfer~~was ~~any~~approximately ~~of its property; f~~6. ~~incur any debt~~9%, ~~obligation or liability including the issuance of all new~~ 6.7% and ~~renewal business; g~~7.6% ~~merge~~of orconsolidated ~~consolidate~~net ~~with~~revenue ~~another~~in ~~company;~~fiscal h.2007, ~~enter~~2006 ~~into~~and ~~any new reinsurance contract or treaty; or i~~2005, respectively. ~~enter into any affiliate transactions~~

SAC In Holding ~~order~~II toOperating abate the DOI’s order, RepWest must establish that it possesses surplus in compliance with Arizona law and as the Arizona Director of Insurance may require based on type, volume or nature of its business pursuant to Arizona law and establish that it has eliminated the specific credit risk associated with the exposures to AMERCO and its affiliates. Segment

SAC If Holding ~~RepWest~~Corporation ~~fails~~and toits ~~satisfy~~subsidiaries, ~~the~~and ~~requirements~~SAC toHolding II Corporation and ~~abate~~ its subsidiaries, ~~DOI’s~~collectively ~~concerns~~referred to as “SAC Holdings”, ~~the~~own ~~DOI~~self-storage properties ~~may~~that ~~take~~are ~~further~~managed ~~action~~by U-Haul under property management agreements and act as independent U-Haul rental equipment dealers. AMERCO, through its ~~including~~ subsidiaries, ~~but~~has ~~not~~contractual ~~limited~~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, ~~commencing~~AMERCO ais ~~conservatorship~~considered the primary beneficiary of these contractual interests. Consequently, we include the results of SAC Holding II in the consolidated financial statements of AMERCO, as required by FIN 46(R).

In April 2003, RepWest announced that in connection with the Company’s overall restructuring efforts, it is redirecting its operating focus. In particular, RepWest is exiting non-U-Haul related lines of business. This exit may result in near term losses as these lines are eliminated. 5

~~Moving~~Net revenue from our SAC Holding II operating segment was approximately 1.3%, 1.3% and ~~Storage~~1.1% ~~Operations~~of consolidated net revenue in fiscal 2007, 2006 and 2005, respectively.

Moving and self-storage operations consist of the rental of equipment such as trucks and trailers, the sale of moving and storage supplies such as boxes and the rental of self-storage spaces to both moving and storage customers. Operations are conducted using the registered tradename U-Haul® throughout the United States and Canada. Employees

~~Real~~As of March ~~Estate~~31, ~~Operations~~2007, we employed approximately 18,000 people throughout North America with approximately 98% of these employees working within our Moving and Storage operating segment.

Sales ~~Real Estate owns approximately 90% of the Company’s real estate assets, including U-Haul Center~~ and ~~Storage~~ locations. Various U-Haul and Insurance companies own the remainder of the real estate assets. Real Estate is responsible for overseeing property acquisitions, dispositions and managing environmental risks of the properties. Marketing

~~Property~~We promote U-Haul brand awareness through direct and ~~Casualty~~co-marketing ~~Insurance~~arrangements. Our direct marketing activities consist of yellow pages, print and web based advertising as well as trade events, movie cameos of our rental fleet and boxes, and industry and consumer communications. Our rental equipment is our best form of advertisement. We support our independent U-Haul dealers through advertising of U-Haul moving and self-storage rentals, products and services.

Our ~~RepWest~~ marketing ~~originates~~plan ~~and~~includes ~~reinsures~~maintaining ~~property~~our ~~and casualty-type~~leadership ~~insurance~~position ~~products~~with ~~for various market participants, including independent third parties,~~ U-Haul’s being ~~customers,~~ synonymous ~~independent~~with ~~dealers~~“do-it-yourself” moving and ~~the Company~~storage. InWe ~~April~~accomplish ~~2003,~~this by ~~RepWest~~ continually ~~announced~~improving ~~that~~the inease ~~connection~~of ~~with~~use ~~AMERCO’s~~and ~~overall restructuring~~efficiency ~~efforts,~~of inour ~~order~~rental toequipment, by providing ~~reduce~~added ~~costs~~convenience ~~and~~ to ~~build upon~~our ~~its~~retail ~~core~~centers ~~strengths,~~through ~~RepWest~~independent ~~is exiting non-~~U-Haul ~~related~~ ~~lines~~ dealers, ofand ~~business.~~by ~~This~~expanding ~~exit~~the ~~may~~capabilities ~~result~~of inour ~~near~~eMove ~~term~~web ~~losses as these lines are eliminated~~site.

~~Life~~A significant ~~Insurance~~driver of U-Haul’s rental transaction volume is our utilization of an online reservation and sales system, through www.uhaul.com, www.eMove.com and our 24-hour 1-800-GO-U-HAUL telephone reservations system. The Company’s 1-800-GO-U-HAUL telephone reservation line is prominently featured on nationwide yellow page advertising, its websites and on the outside of its vehicles, and is a major driver of customer lead sources. Nearly 30% of the reservations made for U-Move rentals were completed through the Company’s website.

Oxford originates and reinsures annuities, credit life and disability, single premium whole life, group life and disability coverage, and Medicare supplement insurance. Oxford also administers the self-insured employee health and dental plans for AMERCO. Competition

Moving ~~On November 13, 2000, Oxford acquired all of the issued~~ and ~~outstanding~~Storage ~~shares~~Operating of Christian Fidelity Life Insurance Company (“CFLIC”) in an exchange of cash for stock. CFLIC is a Texas-based insurance company specializing in providing supplemental health insurance and is licensed in 31 states. The acquisition was accounted for using the purchase method of accounting and, accordingly, CFLIC’s results of operations have been included in the consolidated financial statements since the date of acquisition. Oxford funded the acquisition from available cash and short-term funds. Segment

6The moving truck and trailer rental industry is large and highly competitive. There are two distinct users of rental trucks: commercial and “do-it-yourself” residential users. We focus primarily 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 price. Our major competitors in the moving equipment rental market are AvisBudget Group and Penske Truck Leasing.

~~Table~~The self-storage market is large and highly fragmented. We believe the principal competitive factors in this industry are convenience of ~~Contents~~storage rental locations, cleanliness, security and price. Our primary competitors in the self-storage market are Public Storage Inc., Extra Space Storage, Inc., and Sovran Self-Storage Inc.

Insurance ~~B. History~~ Operating Segments

The ~~U-Haul~~ highly ~~was~~competitive ~~founded~~insurance inindustry ~~1945~~includes ~~under~~a ~~the~~large ~~name “U-Haul~~number ~~Trailer~~of ~~Rental~~life ~~Company”. From 1945 to 1974,~~insurance ~~U-Haul~~ companies ~~rented~~and ~~trailers~~property and, ~~starting~~casualty ininsurance ~~1959,~~companies. ~~trucks~~In onaddition, athe ~~one-way~~ marketplace ~~and~~includes ~~In-Town®~~financial ~~basis~~services ~~exclusively~~firms ~~through~~offering ~~independent~~both insurance and ~~dealers~~ financial products. ~~Since~~Some ~~1974,~~of ~~U-Haul~~the ~~has~~insurance ~~developed~~companies aare ~~network~~owned ofby ~~Company~~stockholders ~~managed~~ and ~~rental~~others ~~centers~~are ~~(U-Haul~~owned ~~Centers)~~by ~~through~~policyholders. ~~which~~Many ~~U-Haul also~~competitors ~~rents~~have ~~its~~been ~~trucks~~in ~~and~~business for ~~trailers~~a ~~and~~longer ~~provides~~period ~~related~~of ~~products and~~time ~~services~~or ~~(e.g.,~~possess ~~the~~substantially ~~sale~~greater ~~and~~financial ~~installation of hitches, as~~resources ~~well~~ and asbroader ~~the~~product ~~sale~~portfolios ofthan ~~boxes~~our ~~and~~insurance ~~other~~companies. ~~moving~~We ~~and~~compete ~~storage~~in ~~supplies).~~ the insurance Atbusiness ~~March 31,~~based ~~2003~~upon price, ~~U-Haul’s~~product ~~distribution network included 1~~design,~~350~~ ~~Company~~and ~~operated~~services ~~centers~~rendered to agents and ~~14,274 independent dealers~~policyholders.

~~C. Moving and Storage Operations~~ 6

~~Business~~Recent Developments ~~Strategies~~

Preferred ~~The~~ Stock U-Haul business strategy remains focused on do-it-yourself moving and self-storage customers. U-Haul believes that customer access, in terms of truck or trailer availability and proximity of rental locations, is critical to its success. Under the U-Haul name, our strategy is to offer, in an integrated manner over an extensive and geographically diverse network of 15,624 Company operated Centers and independent dealers, a wide range of products and services to do-it-yourself moving and self-storage customers. Dividends

~~Moving~~On May ~~Operations~~4, 2007, the Board of Directors of AMERCO (the “Board”) declared a regular quarterly cash dividend of $0.53125 per share on the Company’s Series A 8½ % Preferred Stock. The dividend was paid on June 1, 2007 to holders of record on May 15, 2007.

Fleet ~~U-Haul~~ Securitization has a variety of product offerings. Rental trucks are designed with do-it-yourself customers in mind. U-Haul trailers are suited to the low profile of many newly manufactured automobiles. As of March 31, 2003, the U-Haul rental equipment fleet consisted of approximately 92,000 trucks, 73,000 trailers and 19,000 tow dollies. Additionally, U-Haul provides support items such as furniture pads, utility dollies and handtrucks. Transaction

The ~~Approximately~~ Company ~~90%~~has entered into a securitized financing, as of UJune 1, 2007, through an offer by certain new special-~~Haul’s~~purpose ~~gross~~entities ~~rental~~of up to $217.0 million of Fixed ~~revenue~~ Rate isSeries ~~generated~~2007-1-BT Notes and $86.6 million of Fixed Rate Series 2007-1-CP Notes in a private placement transaction exempt from doregistration under the Securities Act of 1933, as amended. The new special-itpurpose entities that will issue the notes will be indirect subsidiaries of AMERCO. These new special-~~yourself~~purpose ~~residential~~subsidiaries ~~movers~~will use the net proceeds from the sale of the notes to, among other things, acquire box trucks, cargo vans and pickup trucks from the manufacturers as well as from other subsidiaries of AMERCO. The new ~~Moving~~ special-purpose subsidiaries will generate income from truck and trailer rentals to ~~include:~~be used to service and repay the notes. The notes will not be obligations of AMERCO or any of its subsidiaries other than the new special-purpose subsidiaries. These special-purpose subsidiaries will be consolidated into U-Haul’s financial statements.

~~(i)~~RepWest was ~~In-Town® rentals, where the equipment is returned to the originating U-Haul location and (ii) One-way rentals, where the equipment is returned to a U-Haul location in another city.~~upgraded

On ~~U-Haul’s truck and trailer rental business~~ May ~~tends~~ 30, ~~to be seasonal~~2007, ~~with~~A.M. ~~proportionally~~Best ~~more~~Co. ~~transactions~~upgraded ~~and revenues generated in~~ the ~~spring~~financial ~~and~~strength ~~summer~~ratings ~~months~~of ~~than~~RepWest to ~~during~~B ~~the~~ (Fair) ~~balance~~and ofset the ~~year~~outlook as stable.

Cautionary ~~U-Haul~~ Statement ~~sells~~Regarding ~~a wide selection of moving supplies that include boxes, tape and packaging materials. U~~Forward-~~Haul Centers~~Looking ~~also sell and install hitches and towing systems, and sell propane.~~ Statements

This U Annual Report on Form 10-~~Haul~~K, ~~offers~~contains ~~protection~~“forward-looking ~~packages~~statements” regarding future events and our future results. We may make additional written or oral forward-looking statements from time to time in filings with the SEC or otherwise. We believe such forward-looking statements are within the meaning of the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may include, but are not limited to, projections of revenues, earnings or loss; estimates of capital expenditures, plans for future operations, products or services; financing needs and plans; our perceptions of our legal positions and anticipated outcomes of government investigations and pending litigation against us; liquidity; goals and strategies; plans for new business; growth rate assumptions, pricing, costs, and access to capital and leasing markets as well as assumptions relating to the foregoing. The words “believe”, “expect”, “anticipate”, “estimate”, “project” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could significantly affect results include, without limitation, the risk factors enumerated at the end of this section, as well as the following: the Company’s ability to operate pursuant to the terms of its credit facilities; the Company’s ability to maintain contracts that are critical to its operations; the costs and availability of financing; the Company’s ability to execute its business plan; the Company’s ability to attract, motivate and retain key employees; general economic conditions; fluctuations in our costs to maintain and update our fleet and facilities; our ability to refinance our debt; changes in government regulations, particularly environmental regulations; our credit ratings; the availability of credit; changes in demand for our products; changes in the general domestic economy; the degree and nature of our competition; the resolution of pending litigation against the Company; changes in accounting standards and other factors described in this report or the other documents we file with the SEC. The above factors, the following disclosures, as well as other statements in this report and in the Notes to Consolidated Financial Statements, could contribute to or cause such risks or uncertainties, or could cause our stock price to fluctuate dramatically. Consequently, the forward-looking statements should not be regarded as representations or warranties by the Company that such matters will be realized. The Company assumes no obligation to update or revise any of the forward-looking statements, whether in response to new information, unforeseen events, changed circumstances or otherwise.

(i) Safemove® — which currently provides moving customers with a damage waiver, cargo protection and medical and life coverage; (ii) Safestor® — which currently provides self-storage rental customers with various types of protection for their goods in storage; and (iii) Safetow® — which currently provides towing customers with a damage waiver, cargo protection and medical and life coverageItem 1A. Risk Factors

The ~~Independent~~ following ~~dealers~~discussion ~~receive~~of ~~U-Haul~~risk ~~equipment~~factors onshould abe read in conjunction with ~~consignment~~ Management’s ~~basis~~Discussion and ~~are~~Analysis ~~paid~~of aFinancial ~~commission~~Condition onand ~~gross~~Results ~~revenues~~of ~~generated~~ Operations ~~from~~(“MD&A”), ~~their~~the ~~rentals.~~consolidated ~~U-Haul~~financial ~~maintains~~statements ~~contracts~~and ~~with~~related ~~its~~ notes. ~~independent~~These ~~dealers~~risk ~~that~~factors may ~~typically~~ be ~~terminated~~important ~~upon 30 days~~in ~~written~~understanding ~~notice~~this byAnnual ~~either~~Report on ~~party~~Form 10-K or elsewhere.

Historically U-Haul has designed and manufactured its truck van boxes, trailers and various other support rental equipment items. Truck chassis are manufactured by both foreign and domestic truck manufacturers. These chassis receive certain post-delivery modifications and are joined with van boxes at strategically located Company-owned manufacturing and assembly facilities in the United States. From time to time, U-Haul buys its truck bodies from a third party provider of such items. 7

7We operate in a highly competitive industry.

~~Table~~The truck rental industry is highly competitive and includes a number of ~~Contents~~significant national, regional and local competitors. Competition is generally based on convenience of rental locations, availability of quality rental moving equipment, breadth of essential services and price. Financial results for the Company can be adversely impacted by aggressive pricing from our competitors. In our truck rental business, our primary competitors are AvisBudget Group and Penske Truck Leasing. Some of our competitors may have greater financial resources than we have. We can not assure you that we will be able to maintain existing rental prices or implement price increases. Moreover, if our competitors reduce prices and we are not able or willing to do so as well, we may lose rental volume, which would likely have a materially adverse affect on our results of operations.

The U self-~~Haul~~storage ~~services~~industry is large and ~~maintains~~highly ~~its~~fragmented. ~~trucks~~We ~~and~~believe the principle ~~trailers~~ competitive ~~through~~factors anin ~~extensive~~this ~~preventive-maintenance~~industry ~~program,~~are convenience of storage rental ~~generally~~ locations, ~~performed~~cleanliness, atsecurity ~~Company-owned~~and ~~facilities~~price. ~~located~~Some atof orour primary competitors ~~near~~ in the Uself-~~Haul~~storage ~~Centers~~market are Public Storage, Inc., ~~Major~~Extra ~~repairs~~Space ~~are~~Storage, ~~performed~~Inc., and Sovran ~~either~~Self-Storage byInc. Competition in the market areas in which we operate ~~chassis~~ is significant ~~manufacturers’~~and ~~dealers~~affects orthe byoccupancy ~~Company-owned~~levels, ~~repair~~rental sales and operating ~~shops~~ expenses of our facilities. Competition might cause us to experience a decrease in occupancy levels, limit our ability to raise rental sales and require us to offer discounted rates that would have a material affect on operating results.

~~Competition~~Entry into the self-storage business through acquisition of existing facilities is possible for persons or institutions with the required initial capital. Development of new self-storage facilities is more difficult however, due to land use, environmental and other regulatory requirements. The self-storage industry has in the past experienced overbuilding in response to perceived increases in demand. We cannot assure you that we will be able to successfully compete in existing markets or expand into new markets.

We ~~A highly competitive industry exists within the moving truck and trailer rental market. There~~ are ~~two~~controlled ~~distinct users~~by ~~of rental trucks: commercial users and do-it-yourself~~asmall ~~users.~~ contingent ~~U-Haul focuses on the do-it-yourself residential user. Within this group, U-Haul believes that the principal competitive factors are convenience~~ of ~~rental locations, availability of quality rental equipment and price~~stockholders. ~~U-Haul’s major competitors in the rental market are Budget Car and Truck Rental Company and Penske Truck Leasing.~~

~~Self-storage~~As of March ~~Business~~31, 2007, Edward J. Shoen, Chairman of the Board of Directors and President of AMERCO, James P. Shoen, a director of AMERCO, and Mark V. Shoen, an executive officer of AMERCO, collectively are the owners of 8,967,863 shares (approximately 43.6%) of the outstanding common shares of AMERCO. In addition, on June 30, 2006, Edward J. Shoen, James P. Shoen, Mark V. Shoen, Rosmarie T. Donovan (Trustee of the Shoen Irrevocable Trusts) and Southwest Fiduciary, Inc. (Trustee of the Irrevocable “C” Trusts) (collectively, the “Reporting Persons”) entered into a Stockholder Agreement in which the Reporting Persons agreed to vote as one block in a manner consistent with the Stockholder Agreement and in furtherance of their interests. As of March 1, 2007, Adagio Trust Company replaced Southwest Fiduciary, Inc. as the trustee of the Irrevocable “C” Trusts, and became a signatory to the Stockholder Agreement that was entered into by the other Reporting Persons on June 30, 2006. Pursuant to the Stockholder Agreement, the Reporting Persons appointed James P. Shoen as proxy to vote their collective 10,642,588 shares (approximately 51.8%) of the Company’s common stock as provided for in the agreement. For additional information, see the Schedule 13D’s filed on July 13, 2006 and on March 9, 2007 with the SEC. In addition, 1,897,670 shares (approximately 9.2%) of the outstanding common shares of AMERCO are held by our Employee Savings and Employee Stock Ownership Trust.

As ~~U-Haul~~ a result ~~entered~~of their stock ownership and the ~~self-storage~~Stockholder ~~business~~Agreement, inEdward ~~1974~~J. Shoen, Mark V. Shoen and ~~has~~James ~~increased~~P. ~~its~~Shoen ~~presence~~will be in a position to significantly influence the ~~industry~~business ~~through~~affairs and policies of the Company, including the ~~acquisition~~ approval ~~and~~of ~~conversion~~significant transactions, the election of ~~existing~~the ~~facilities~~members ~~and~~of ~~new~~the Board ~~construction~~ of Directors and other matters submitted to our stockholders. InThere ~~addition~~can be no assurance that the interests of the Reporting Persons will not conflict with the interest of our other stockholders. Furthermore, ~~U-Haul~~as ~~has~~a ~~entered~~result ~~into~~of ~~management~~the Reporting ~~agreements~~ Persons’ tovoting ~~manage~~power, ~~self-storage~~the ~~properties~~Company ~~owned~~is bya ~~others~~“controlled company” as defined in the Nasdaq listing rules and, therefore, may avail itself of certain exemptions under Nasdaq Marketplace Rules, including ~~SAC~~rules ~~Holdings.~~that ~~U-Haul~~require ~~has~~the ~~also~~Company ~~entered~~to have (i) ~~into~~a majority of independent directors on the Board; (ii) a ~~strategic~~compensation committee composed solely of independent directors; (iii) a nominating committee composed solely of independent directors; (iv) compensation of our executive officers determined by a majority of the independent directors or a compensation committee composed solely of independent directors; and ~~financial~~(v) ~~partnership~~director ~~with~~nominees selected, ~~Private~~or ~~Mini~~recommended ~~Storage~~for ~~Realty~~the Board’s selection, either by a majority of the ~~L.P.,~~ independent directors or a ~~Texas-based~~nominating ~~operator~~committee ofcomposed ~~self-storage~~solely ~~properties~~of independent directors. The Company currently exercises its right to an exemption from the Nasdaq rule requiring compensation of other executive officers, aside from the President, be determined by a majority of the independent directors or the compensation committee.

Through 1,023 owned, managed or equity participating self-storage locations in the United States and Canada, U-Haul offers for rent more than 32.5 million square feet of self-storage at March 31, 2003. This is an increase of 1.4 million square feet over the prior year. U-Haul’s self-storage facility locations range in sizes up to 152,600 square feet of storage space, with individual storage units in sizes from 15 to 400 square feet. 8

Our ~~The~~ operations ~~primary~~subject ~~market~~us ~~for~~to ~~storage~~numerous ~~rooms~~environmental isregulations ~~the storage~~and ~~of household goods. With~~ the ~~addition of 18,833 storage~~possibility ~~rooms~~ that ~~during~~environmental ~~fiscal~~liability ~~year~~in ~~2003,~~ the ~~average~~future ~~occupancy~~could ~~rate~~adversely ~~of same~~affect ~~store facilities operating over one year was 82.9%, with~~our ~~modest seasonal variations~~ operations.

~~Competition~~Compliance with environmental requirements of federal, state and local governments significantly affects our business. Among other things, these requirements regulate the discharge of materials into the water, air and land and govern the use and disposal of hazardous substances. Under environmental laws or common law principles, we can be held strictly liable for hazardous substances that are found on real property we have owned or operated. We are aware of issues regarding hazardous substances on some of our real estate and we have put in place a remedial plan at each site where we believe such a plan is necessary (see Note 17 “Contingencies” of the “Notes to Consolidated Financial Statements”). We regularly make capital and operating expenditures to stay in compliance with environmental laws. In particular, we have managed a testing and removal program since 1988 for our underground storage tanks. Despite these compliance efforts, risk of environmental liability is part of the nature of our business.

Environmental ~~The~~ laws ~~primary~~and ~~competition~~regulations ~~for~~are acomplex, ~~U-Haul~~change ~~self-storage~~frequently and could become more ~~location~~ stringent isin ~~other~~the ~~self~~future. ~~storage~~We ~~facilities~~cannot ~~within~~assure ayou ~~geographic~~that future compliance with these ~~area~~ regulations, ~~offering~~future aenvironmental ~~comparable~~liabilities, ~~level~~the cost of ~~convenience~~defending environmental toclaims, ~~the~~conducting ~~customer.~~any environmental remediation or generally resolving liabilities caused by us or related third parties will not have a material adverse effect on our business, financial condition or results of operations.

~~Employees~~Our quarterly results of operations fluctuate due to seasonality and other factors associated with our industry.

Our As business is seasonal and our results of ~~March 31,~~operations ~~2003,~~and ~~U-Haul’s~~cash flows fluctuate ~~non-seasonal~~ significantly ~~work~~from ~~force~~quarter ~~consisted~~to ofquarter. 16Historically,~~145~~ ~~full~~revenues have been stronger in the first and ~~part-time~~second fiscal quarters due to the overall increase in moving ~~employees~~ activity during the spring and summer months. The fourth fiscal quarter is generally weakest, due to a greater potential for adverse weather conditions and other factors that are not necessarily seasonal. As a result, our operating results for a quarterly period are not necessarily indicative of operating results for an entire year.

We ~~D. Real~~ obtain ~~Estate~~our rental trucks from a limited number of ~~Operations~~ manufacturers.

~~Real~~In the last ~~Estate~~ten ~~Operations~~years, we purchased most of our rental trucks from Ford Motor Company and General Motors Corporation. Although we believe that we could obtain alternative sources of supply for our rental trucks, termination of one or both of our relationships with these suppliers could have a material adverse effect on our business, financial condition or results of operations for an indefinite period of time or we may not be able to obtain rental trucks under similar terms, if at all.

~~Real Estate owns approximately 90% of the Company’s real estate assets, including U-Haul Center and Storage locations~~A. ~~Various U-Haul and Insurance companies own~~M ~~the~~ Best ~~remainder~~financial ofstrength ~~the~~ratings ~~real~~are ~~estate~~crucial ~~assets.~~to ~~Real~~our ~~Estate~~life isinsurance ~~responsible for overseeing property acquisitions, dispositions and managing environmental risks of the properties~~ business.

~~Environmental~~A.M. Best downgraded ~~Matters~~Oxford and its subsidiaries during AMERCO’s restructuring to C+. Upon AMERCO’s emergence from bankruptcy in March 2004, Oxford and its subsidiaries were upgraded to B-. The ratings were again upgraded in October 2004 to B, in October 2005 to B+, and in November 2006 Oxford and Christian Fidelity were upgraded to B++ with a stable outlook. Prior to AMERCO’s restructuring, Oxford was rated B++. Financial strength ratings are important external factors that can affect the success of Oxford’s business plans. Accordingly, if Oxford’s ratings, relative to its competitors, do not continue to improve, Oxford may not be able to retain and attract business as currently planned.

We ~~Compliance~~ bear ~~with~~certain ~~environmental~~risks ~~requirements~~related of federal, state and local governments significantly affects Real Estate’s business operations. Among other things, these requirements regulate the discharge of materials into the water, air and land and govern the use and disposal of hazardous substances. Real Estate is aware of issues regarding the presence of hazardous substances on some of its properties. Real Estate regularly makes capital and operating expenditures to ~~stay~~ inour ~~compliance~~notes ~~with~~receivable ~~environmental~~from ~~laws and has put in place~~SAC ~~a remedial plan at each site where it believes such a plan is necessary~~ Holdings. ~~Since 1988, Real Estate has managed a~~

8At March 31, 2007, we held approximately $203.7 million of notes receivable from SAC Holdings, of which $75.1 million is with SAC Holding II and has been eliminated in our Consolidated Financial Statements. SAC Holdings is highly leveraged with significant indebtedness to others. We hold various junior unsecured notes of SAC Holdings. If SAC Holdings is unable to meet its obligations to its senior lenders, it could trigger a default of its obligations to us. In such an event of default, we could suffer a loss to the extent the value of the underlying collateral of SAC Holdings is inadequate to repay SAC Holding’s senior lenders and our junior unsecured notes. We cannot assure you that SAC Holdings will not default on its loans to its senior lenders or that the value of SAC Holdings assets upon liquidation would be sufficient to repay us in full.

~~Table of Contents~~9

We ~~testing~~ are ~~and~~highly ~~removal program for underground storage tanks~~leveraged. ~~Under this program, we have spent $43.7 million through March 31, 2003. See also Item 3. Legal Proceedings.~~

As E of March 31, 2007 we had total debt outstanding of $1,181. ~~Insurance~~2 million. Although ~~Operations~~ we believe that additional leverage can be supported by the Company’s operations, our existing debt could impact us in the following ways:

~~Business~~· ~~Strategies~~require us to allocate a considerable portion of cash flows from operations to debt service payments

~~RepWest~~· ~~originates~~limit ~~and~~our ~~reinsures~~ability property and casualty type insurance products for various market participants, including independent third parties, U-Haul’s customers, independent dealers and the Company. In April 2003, RepWest announced that in connection with AMERCO’s overall restructuring efforts, and in order to ~~reduce~~ ~~costs~~obtain ~~and~~additional ~~to build upon its core strengths, RepWest has ceased writing and is exiting non-U-Haul related lines of business.~~ financing

~~Oxford’s~~· ~~business~~place ~~strategy~~us isat ~~long-term capital growth through direct writing and reinsuring of annuity, credit life and disability and Medicare supplement products. In the past Oxford has pursued~~ a ~~growth~~disadvantage ~~strategy~~compared ofto ~~increased direct~~our ~~writing~~competitors ~~via~~who ~~acquisitions~~may ofhave ~~insurance~~less companies, expanded distribution channels and product development. The acquisitions of North American Insurance Company and Safe Mate Life Insurance Company in 1997 and Christian Fidelity Life Insurance Company in 2000 represent a significant movement toward this long-term goal. Oxford has significantly expanded product offerings, distribution channels and administrative capabilities through these acquisitions. debt

~~Investments~~Our ability to make payments on our debt depends upon our ability to maintain and improve our operating performance and generate cash flow. To some extent, this is subject to prevailing economic and competitive conditions and to certain financial, business and other factors, some of which are beyond our control. If we are unable to generate sufficient cash flow from operations to service our debt and meet our other cash needs, we may be forced to reduce or delay capital expenditures, sell assets or operations, seek additional capital or restructure or refinance our indebtedness. If we must sell our assets, it may negatively affect our ability to generate revenue. In addition, we may incur additional debt that would exacerbate the risks associated with our indebtedness.

We ~~RepWest~~ operate ~~and~~in ~~Oxford~~a ~~investments~~highly ~~must~~regulated ~~comply~~industry ~~with the~~and ~~insurance~~changes ~~laws~~in ofexisting ~~the state of domicile. These laws~~regulations ~~prescribe~~ or violations ~~the type, quality and concentration~~ of ~~investments that~~existing ~~may~~or befuture ~~made.~~regulations ~~Moreover,~~could inhave ~~order~~a tomaterial ~~be considered an~~adverse ~~acceptable~~ effect ~~reinsurer~~on byour ~~cedents~~operations and ~~intermediaries, a reinsurer must offer financial security~~profitability. ~~The quality and liquidity of invested assets are important considerations in determining such security.~~

Our ~~The~~ truck and ~~investment~~trailer ~~strategies~~rental ofbusiness ~~RepWest~~is ~~and~~subject ~~Oxford~~to regulation by various federal, state ~~emphasize~~ and ~~protection~~foreign ofgovernmental ~~principal~~entities. ~~through~~Specifically, the ~~purchase~~U.S. Department of ~~investment~~ Transportation ~~grade~~and ~~fixed-income~~various ~~securities.~~state ~~Approximately~~and ~~88.0%~~federal ofagencies exercise broad powers ~~RepWest’s~~ over our motor carrier operations, safety, and ~~88.6%~~the ofgeneration, ~~Oxford’s~~handling, ~~fixed-income~~storage, ~~securities~~ treatment ~~consist~~and disposal of ~~investment~~waste ~~grade~~materials. ~~securities~~In ~~(NAIC-2~~addition, orour storage business ~~greater)~~ is also subject to federal, state and local laws and regulations relating to environmental protection and human health and safety. The ~~maturity~~failure ~~distributions~~to ~~are~~adhere to these ~~designed~~laws and regulations may adversely affect our ability to ~~provide~~sell or rent ~~sufficient~~ such property ~~liquidity~~or to ~~meet~~use ~~future~~the ~~cash~~property ~~needs~~as collateral for future borrowings. Compliance with changing regulations could substantially impair real property and equipment productivity and increase our costs.

~~Reinsurance~~Item 1B. Unresolved Staff Comments

There ~~RepWest~~ were ~~and~~no ~~Oxford~~unresolved ~~assume~~staff ~~and~~comments ~~cede~~at ~~insurance~~March from and to other insurers and members of various reinsurance pools and associations. Reinsurance arrangements are utilized to provide greater diversification of risk and to minimize exposure to large risks. However31, ~~the original insurer retains primary liability to the policyholder should the assuming insurer not be able to meet its obligations under the reinsurance agreements~~2007.

~~Regulation~~Item 2. Properties

The ~~RepWest~~ Company, ~~and~~through ~~Oxford~~its ~~are~~legal ~~subject~~subsidiaries, toowns ~~regulation~~property, ~~by state~~plant ~~insurance~~and ~~regulatory agencies. The regulation extends to~~equipment ~~such~~ that are ~~matters~~utilized asin ~~licensing~~the ~~companies~~manufacture, repair and ~~agents,~~rental ~~restricting~~of ~~the~~U-Haul equipment ~~types,~~ and ~~quality~~storage orspace ~~quantity~~as ofwell ~~investments,~~as ~~regulating~~providing ~~capital and~~office ~~surplus~~space ~~and~~for ~~actuarial~~the ~~reserve~~Company. ~~maintenance,~~Such facilities ~~setting~~exist ~~solvency standards,~~throughout ~~filing~~the ofUnited ~~annual~~States and ~~other~~Canada. ~~reports~~The onCompany ~~financial~~also ~~condition,~~ manages ~~and~~storage ~~regulating~~facilities ~~trade~~owned ~~practices~~by others. ~~State~~The ~~laws~~Company ~~also regulate~~operates ~~transactions~~nearly ~~and~~1,450 U-Haul retail centers ~~dividends~~of ~~between~~which an498 ~~insurance~~are ~~company and~~managed ~~its~~for ~~parent~~other ~~or affiliates~~owners, and ~~generally~~operates ~~require~~13 ~~prior~~manufacturing ~~approval~~ and orassembly ~~notification~~facilities. ~~for~~We ~~any~~also ~~change~~operate inover ~~control~~245 offixed ~~the~~site-repair facilities ~~insurance~~ located ~~subsidiary~~throughout the United States and Canada.

SAC ~~The~~ Holdings ~~insurance~~owns ~~and~~property, ~~reinsurance~~plant ~~regulatory framework~~and ~~has~~equipment ~~been~~that ~~subjected~~are toutilized ~~increased~~in ~~scrutiny by~~ the ~~National~~ ~~Association~~sale of ~~Insurance Commissioners~~ ~~(“NAIC”)~~ moving supplies, ~~federal~~rental ~~and~~of ~~state~~self-storage ~~legislatures~~rooms and ~~insurance regulators~~U-Haul equipment. ~~These~~Such facilities ~~regulators~~exist ~~are~~throughout ~~considering~~the ~~increased regulations,~~United ~~with~~States anand ~~emphasis~~Canada. onWe ~~insurance~~manage ~~company~~the ~~investment~~storage ~~and~~ facilities ~~solvency~~under ~~issues.~~property Itmanagement isagreements ~~not~~whereby ~~possible~~the tomanagement ~~predict~~fees are consistent ~~the~~with ~~future impact~~management offees ~~changing~~received ~~state~~by ~~and~~U-Haul ~~federal~~for ~~regulations~~other onproperties ~~the~~owned ~~operations~~ by unrelated ofparties ~~RepWest~~ and ~~Oxford~~previously managed by us.

In 1998, the NAIC adopted the Codification of Statutory Accounting Principles guidance, which replaced the prior Accounting Practices and Procedures manual as the NAIC’s primary guidance for statutory 10

9Item 3. Legal Proceedings

~~Table of Contents~~Shoen

On ~~accounting~~ September as24, 2002, Paul F. Shoen filed a derivative action in the Second Judicial District Court of ~~January 1~~the State of Nevada, ~~2001~~Washoe County, captioned Paul F. Shoen ~~The~~vs. SAC Holding Corporation et al., CV02-05602, seeking damages and ~~codification~~ equitable ~~provides~~relief ~~guidance~~on behalf of AMERCO from SAC Holdings and certain current and former members of the AMERCO Board of Directors, including Edward J. Shoen, Mark V. Shoen and James P. Shoen as defendants. AMERCO is named a nominal defendant for ~~areas~~purposes ~~where~~of ~~statutory~~the derivative action. The complaint alleges breach of fiduciary ~~accounting~~ duty, ~~has~~self-dealing, ~~been~~usurpation ~~silent~~of corporate opportunities, wrongful interference with prospective economic advantage and ~~changes~~unjust ~~current~~enrichment ~~statutory~~and seeks the ~~accounting~~ unwinding ~~practices~~of insales ~~some~~of ~~areas~~self-storage properties by subsidiaries of AMERCO to SAC Holdings prior to the filing of the complaint. The ~~DOI~~complaint ~~has~~seeks ~~adopted~~a declaration that such transfers are void as well as unspecified damages. On October 28, 2002, AMERCO, the Shoen directors, the non-Shoen directors and SAC Holdings ~~Codification~~ filed ~~guidance~~Motions to Dismiss the complaint. In addition, ~~effective~~on October 28, 2002, Ron Belec filed a derivative action in the Second Judicial District Court of the State of Nevada, Washoe County, captioned Ron Belec vs. William E. Carty, et al., CV 02-06331 and on January 1 16, ~~2001~~2003, M.S. ~~Oxford~~Management Company, Inc. filed a derivative action in the Second Judicial District Court of the State of Nevada, Washoe County, captioned M.S. Management Company, Inc. vs. William E. Carty, et al., CV 03-00386. Two additional derivative suits were also filed against these parties. These additional suits are substantially similar to the Paul F. Shoen derivative action. The five suits assert virtually identical claims. In fact, three of the five plaintiffs are parties who are working closely together and chose ~~RepWest~~to file the same claims multiple times. These lawsuits alleged that the AMERCO Board lacked independence. In reaching its decision to dismiss these claims, the court determined that the AMERCO Board of Directors had the requisite level of independence required in order to have ~~implemented~~these claims resolved by the ~~new~~Board. ~~Codification~~The ~~effective~~court consolidated all five complaints before dismissing ~~January 1~~ them on May 28, ~~2001~~2003. Plaintiffs appealed and, on July 13, 2006, the Nevada Supreme Court reviewed and remanded the claim to the trial court for proceedings consistent with its ruling, allowing the plaintiffs to file an amended complaint and plead in addition to substantive claims, demand futility. On November 8, 2006, the nominal plaintiffs filed an Amended Complaint. On December 22, 2006, the defendants filed Motions to Dismiss. Briefing was concluded on February 21, 2007. On March 30, 2007, the Court heard oral argument on Defendants’ Motions to Dismiss and requested supplemental briefing. The supplemental briefs were filed on May 14, 2007.

In order to enhance the regulation of insurer solvency, the NAIC has adopted a formula and model law to implement risk-based capital (“RBC”) requirements for insurance companies designed to assess minimum capital requirements and to raise the level of protection that statutory surplus provides for policyholder obligations. The RBC formula measures areas of risk facing insurers. Pursuant to the model law, insurers having less statutory surplus than that required by the RBC calculation will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. Environmental

In ~~The RBC model law provides for four levels of~~ the ~~regulatory~~ normal ~~action.~~course ~~The extent~~ of ~~regulatory intervention and action increases as the level of surplus to RBC decreases. The first level~~business, ~~the~~AMERCO ~~Company~~is ~~Action~~a ~~Level~~defendant ~~(as~~in ~~defined by the NAIC), requires an insurer to submit~~ a ~~plan~~number of ~~corrective~~suits ~~actions to~~and ~~the regulator if surplus falls below 200% of the RBC amount~~ claims. ~~The Regulatory~~AMERCO ~~Action~~is ~~Level~~also ~~requires~~a anparty ~~insurer~~ to ~~submit~~several aadministrative ~~plan~~proceedings arising ~~containing~~ from ~~corrective~~state ~~actions~~ and ~~requires~~local ~~the~~provisions ~~relevant insurance~~that ~~commissioner~~regulate tothe ~~perform~~removal ~~an examination~~ and/or ~~other analysis~~cleanup ~~and issue a corrective order if surplus falls below~~of ~~150%~~ underground offuel ~~the~~storage ~~RBC amount~~tanks. ~~The~~It ~~Authorized~~is ~~Control Level gives~~ the ~~relevant~~ ~~insurance~~opinion ~~commissioner~~of ~~the~~management, ~~option~~that ~~either to take the~~none ~~aforementioned~~ of these ~~actions~~suits, orclaims ~~to rehabilitate~~ or ~~liquidate~~proceedings ~~the insurer~~involving ifAMERCO, ~~surplus~~individually ~~falls~~or ~~below~~in ~~100% of~~ the ~~RBC amount. The~~ ~~fourth~~ aggregate, ~~action~~are ~~level~~expected ~~is the Mandatory Control Level that requires the relevant insurance commissioner~~ to ~~rehabilitate~~result orin ~~liquidate the~~a ~~insurer~~material ~~if surplus falls below 70% of the RBC amount~~loss.

Compliance ~~Oxford~~ with isenvironmental inrequirements ~~compliance~~of ~~with~~federal, ~~the~~state ~~NAIC~~and ~~minimum~~local ~~RBC~~governments ~~requirements~~ significantly affects Real Estate’s business operations. OnAmong ~~May 20~~other things, these ~~2003~~requirements regulate the discharge of materials into the water, air and land and govern the ~~DOI~~use ~~determined~~and ~~that~~disposal of hazardous substances. Real Estate is ~~RepWest’s~~ aware ~~level~~of issues regarding hazardous substances on some of ~~RBC~~its ~~allowed~~properties. ~~for~~Real Estate ~~regulatory~~regularly ~~control~~makes capital and operating expenditures to stay in compliance ~~accordingly~~ with ~~placed~~environmental ~~RepWest~~laws ~~under~~and ~~supervision.~~has ~~See~~put ~~“Recent~~in place a remedial plan at each site where ~~Developments”~~ it ~~above~~believes such a plan is necessary. Since 1988, Real Estate has managed a testing and removal program for underground storage tanks.

~~Competition~~Based upon the information currently available to Real Estate, compliance with the environmental laws and its share of the costs of investigation and cleanup of known hazardous waste sites are not expected to have a material adverse effect on AMERCO’s financial position or operating results. Real Estate expects to spend approximately $7.6 million in total through 2011 to remediate these properties.

The highly competitive insurance industry includes a large number of property and casualty insurance companies and life insurance companies. In addition, the marketplace now includes financial service firms offering both insurance and financial products. Stockholders own some insurance companies and policyholders own others. Many competitors have been in business for a longer period of time or possess substantially greater financial resources and broader product portfolios than RepWest and Oxford. RepWest and Oxford compete in the insurance business based upon price, product design and services rendered to producers and policyholders. Other

~~Employees~~The Company is named as a defendant in various other litigation and claims arising out of the normal course of business. In management’s opinion none of these other matters will have a material effect on the Company’s financial position and results of operations.

~~RepWest’s non-seasonal work force consists of 343 full and part-time employees.~~ 11

Item ~~Oxford’s~~ 4. Submission of ~~non-seasonal~~Matters ~~work~~to ~~force~~a ~~consists~~Vote of ~~148~~ ~~full~~Security ~~and part-time employees.~~ Holders

~~Life~~No matter was ~~Insurance~~submitted to a vote of the security holders of AMERCO or U-Haul during the fourth quarter of the fiscal year covered by this report, through the solicitation of proxies or otherwise.

PART Oxford originates and reinsures annuities, credit life and disability, single premium whole life, group life and disability coverage, and Medicare supplement insurance. Oxford also administers the self-insured group health and dental plans for the Company. Reinsurance arrangements are entered into with unaffiliated reinsurers. II

~~Property~~Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and ~~Casualty~~Issuer Purchases of Equity Securities

As ~~RepWest’s historical business activities~~ of ~~consisted~~ March ~~of three basic areas: U-Haul~~31, ~~direct~~2007 ~~and~~there ~~assumed reinsurance.~~were ~~U-Haul~~approximately ~~underwritings include coverage for U-Haul customers~~3,300 ~~independent~~holders ~~dealers,~~of ~~fleet~~record ~~owners and employees~~ of the ~~Company~~common stock. ~~RepWest~~AMERCO’s ~~direct~~common ~~underwriting~~stock ~~was~~is ~~done~~listed ~~through Company-employed~~on ~~underwriters~~NASDAQ ~~and~~Global ~~selected~~Select ~~general~~Market ~~agents.~~under ~~The~~the ~~products~~ trading ~~provided~~symbol ~~include~~“UHAL”. ~~liability~~The ~~coverage~~number ~~for~~of ~~rental vehicles,~~shareholders ~~coverage~~is ~~for~~derived ~~commercial~~using ~~multiple peril, commercial~~internal ~~auto,~~ stock ~~mobile~~ledgers ~~homes~~ and ~~excess~~utilizing ~~workers’~~Mellon ~~compensation.~~Investor Services Stockholder listings.

10The following table sets forth the high and the low sales price of the common stock of AMERCO for the periods indicated:

	Year Ended March 31,
	2007				2006
		High		Low		High		Low
First quarter	$	106.95	$	79.71	$	56.10	$	42.75
Second quarter	$	105.35	$	66.22	$	63.61	$	52.80
Third quarter	$	96.89	$	71.81	$	73.68	$	54.60
Fourth quarter	$	89.96	$	59.83	$	101.24	$	65.45

The ~~RepWest~~ common ~~has~~stock ~~determined~~of ~~that~~U-Haul ~~these~~is ~~lines~~wholly-owned ~~will~~by ~~be eliminated~~AMERCO. ~~RepWest’s~~As ~~assumed~~a ~~reinsurance~~result, ~~underwriting~~no ~~was done~~active ~~via broker markets and RepWest has exited this line. In an~~trading ~~effort~~ market toexists ~~decrease~~for ~~risk,~~the ~~RepWest~~purchase ~~has~~and ~~entered~~sale ~~into~~of ~~various catastrophe~~such ~~cover~~common ~~policies to limit its exposure~~stock.

The liability for reported and unreported losses is based on both RepWest’s historical and industry averages. Unpaid loss adjustment expenses are based on historical ratios of loss adjustment expenses paid to losses paid. The liability for unpaid losses and loss adjustment expenses is based on estimates of the amount necessary to settle all claims as of the statement date. Both reported and unreported losses are included in the liability. RepWest updates the liability estimate as additional facts regarding claim costs become available. These estimates are subject to uncertainty and variation due to numerous factors. In estimating reserves, no attempt is made to isolate inflation from the combined effect of other factors including inflation. Unpaid losses and loss adjustment expense are not discounted. Dividends

AMERCO ~~Activity~~ does innot ~~the~~have ~~liability~~a ~~for~~formal ~~unpaid~~dividend ~~losses~~policy. ~~and~~The Board of Directors of AMERCO ~~loss~~ periodically ~~adjustment~~considers ~~expenses~~the isadvisability ~~summarized~~of asdeclaring ~~follows:~~and paying dividends in light of existing circumstances.

		2002		2001		2000
		(In thousands)
Balance at January 1		$	448,987		382,651		334,857
	Less reinsurance recoverable		128,044		80,868		58,403
Net balance at January 1			320,943		301,783		276,454
Incurred related to:
	Current year		112,284		232,984		162,265
	Prior years		16,396		23,042		41,285
Total incurred			128,680		256,026		203,550
Paid related to:
	Current year		66,728		106,395		61,196
	Prior years		130,070		130,471		117,025
Total paid			196,798		236,866		178,221
Net balance at December 31			252,825		320,943		301,783
	Plus reinsurance recoverable		146,622		128,044		80,868
Balance at December 31		$	399,447		448,987		382,651

U-Haul has not declared cash dividends to AMERCO during the three most recent fiscal years. On January 1, 2006, U-Haul paid a non-cash dividend to AMERCO in the form of a reduction in an intercompany payable.

See As Note 20 a“Statutory ~~result~~Financial Information of ~~changes~~Insurance inSubsidiaries” ~~estimates~~ of ~~insured events~~the in“Notes ~~prior~~to Consolidated ~~years,~~Financial ~~the~~Statements” ~~provision~~ for ~~unpaid~~a ~~losses~~discussion ~~and~~of ~~loss~~certain statutory ~~adjustment~~ restrictions ~~expenses~~on ~~(net~~the ofability ~~reinsurance recoveries~~ of ~~$90.1 million)~~ ~~increased~~the byinsurance ~~$16.4 million~~subsidiaries into ~~2002.~~pay dividends to AMERCO.

See ~~The following table illustrates the change in~~ Note ~~unpaid~~ 11 ~~loss~~“Stockholders ~~and~~Equity” ~~loss adjustment expenses. First line — reserves as originally reported at the end~~ of the ~~stated~~“Notes ~~year. Second section, reading down, — cumulative amounts paid as of the end of successive years with respect~~ to ~~that reserve.~~Consolidated ~~Third~~Financial ~~section,~~Statements” ~~reading down, — revised~~for ~~estimates~~ a ofdiscussion ~~the original recorded reserve as~~ of ~~the~~AMERCO’s ~~end~~preferred ~~of successive years~~stock. ~~Last section — compares the latest revised estimated reserve amount to the reserve amount as originally established. This last section is cumulative and should not be summed.~~

11Performance Graph

~~Table~~The following graph compares the cumulative total stockholder return on the Company’s Common Stock for the period March 31, 2002 through March 31, 2007 with the cumulative total return on the Dow Jones US Equity Market and the Dow Jones US Transportation Average. The comparison assumes that $100 was invested on March 31, 2002 in the Company’s Common Stock and in each of ~~Contents~~comparison indices. The graph reflects the closing price of the Common stock trading on NASDAQ on March 31, 2003, 2004, 2005, 2006, and 2007.

~~Unpaid Loss and Loss Adjustment Expenses~~ 12

			December 31
			1992			1993		1994		1995			1996			1997			1998			1999			2000			2001			2002
			(In thousands)
Unpaid Loss and Loss Adjustment Expenses			$	238,762			314,482		329,741		341,981			332,674			384,816			344,748			334,858			382,651			448,987			399,447
	Paid (Cumulative) as of:
		One year later		83,923			70,382		86,796		89,041			89,336			103,752			82,936			117,025			130,471			130,070
		Two years later		123,310			115,467		139,247		150,001			161,613			174,867			164,318			186,193			203,605
		Three years later		153,030			146,640		173,787		195,855			208,168			216,966			218,819			232,883
		Four years later		173,841			166,068		198,434		226,815			232,726			246,819			255,134
		Five years later		181,677			181,174		219,425		243,855			250,312			269,425
		Six years later		191,938			194,652		231,447		254,204			263,645
		Seven years later		200,281			203,535		237,118		264,120
		Eight years later		207,719			207,834		242,450
		Nine years later		211,075			211,493
		Ten years later		213,852
Reserve Reestimated as of:
	One year later			251,450			321,058		338,033		353,508			354,776			357,733			339,602			377,096			433,222			454,510
	Two years later			254,532			323,368		340,732		369,852			342,164			361,306			371,431			432,714			454,926
	Three years later			253,844			309,936		349,459		328,445			346,578			369,598			429,160			437,712
	Four years later			231,536			317,687		302,808		331,897			349,810			398,899			413,476
	Five years later			239,888			267,005		300,180		339,665			376,142			398,184
	Six years later			263,843			262,517		307,306		347,664			369,320
	Seven years later			259,798			267,948		332,762		344,451
	Eight years later			265,285			303,457		311,682
	Nine years later			265,538			270,300
	Ten years later			267,029
Cumulative Redundancy (Deficiency)			$	(28,267	)		44,182		18,059		(2,470	)		(36,646	)		(13,368	)		(68,728	)		(102,854	)		(72,275	)		(5,523	)
Retro Premium Recoverable				2,209			4,239		8,231		11,294			13,905			18,350			25,569			29,852			39,731			41,206
Reestimated Reserve:
Amount (Cumulative)			$	(26,058	)		48,421		26,290		8,824			(22,741	)		4,982			(43,159	)		(73,002	)		(32,545	)		35,683

~~Item~~Issuer Purchases 2.of ~~Properties~~Equity Securities

On ~~AMERCO’s~~ September ~~subsidiaries~~13, ~~own property~~2006, ~~plant and~~the ~~equipment~~Company announced that ~~are~~its ~~utilized~~Board inhad authorized the Company ~~manufacture,~~to ~~repair~~repurchase ~~and rental~~up to $50.0 million of ~~U-Haul~~its ~~equipment~~Common ~~and~~Stock. ~~that~~The ~~provide~~stock ~~office~~may be repurchased ~~space~~by ~~for~~the Company from time to time on the open market between ~~Company~~ September 13, 2006 and October 31, 2007. ~~Such~~On ~~facilities~~March ~~exist~~9, ~~throughout~~2007, the ~~United~~Board ~~States~~authorized an ~~and~~increase in the Company’s common stock repurchase program to a total ~~Canada~~ aggregate amount, net of brokerage commissions, of $115.0 ~~U-Haul~~million ~~also~~(which ~~manages~~amount is ~~storage~~inclusive ~~facilities~~of ~~owned~~the $50.0 million common stock repurchase program approved by the ~~others~~Board in 2006). In ~~addition~~As with the original program, the Company ~~owns~~may ~~certain~~repurchase stock ~~real~~from ~~estate~~time ~~not~~to ~~currently used~~time inon ~~its~~the ~~operations.~~open ~~U-Haul~~market ~~operates~~until 1October 31,~~350~~ ~~U-Haul~~2007. ~~Centers~~The extent ~~(including~~ to which the Company~~-owned~~ ~~storage~~repurchases ~~locations),~~its shares and ~~operates~~the 11timing of such purchases will ~~manufacturing~~ depend upon market conditions and ~~assembly~~other ~~facilities~~corporate considerations. ~~U-Haul~~The ~~also~~purchases will ~~operates~~be ~~105 fixed~~funded ~~site~~from ~~repair~~available ~~facilities~~working ~~located~~capital. atDuring orthe ~~near~~fourth aquarter ~~U-Haul~~of fiscal ~~Center~~2007, the Company repurchased 739,291 shares.

The ~~SAC~~ repurchases ~~Holdings~~made own property, plant and equipment that are utilized in the rental of self-storage rooms and U-Haul equipment. Such facilities exist throughout the United States and Canada. Such facilities also secure various promissory notes held by ~~unrelated third parties. There is no debt held by~~ the Company ~~that~~were isas secured by SAC Holdings’ real estate. U-Haul manages the storage facilities under management agreements whereby the management fees are consistent with management fees received by U-Haul for other properties owned by unrelated parties and managed by U-Haul. follows:

Item 3. Legal Proceedings

Period	Total # of Shares Repurchased		Average Price Paid per Share (1)		Total # of Shares Repurchased as Part of Publicly Announced Plan		Total $ of Shares Repurchased as Part of Publicly Announced Plan		Maximum $ of Shares That May Yet be Repurchased Under the Plan

January 1 - 31, 2007		-		-		-		-	$	50,000,000
February 1 - 28, 2007		268,653	$	68.37		268,653	$	18,368,840	$	31,631,160
March 1 - 31, 2007 (2)		470,638	$	65.31		470,638	$	30,737,262	$	65,893,898
Fourth Quarter Total		739,291	$	66.42		739,291	$	49,106,102

(1) In Represents ~~the~~weighted ~~normal~~average ~~course~~purchase ofprice ~~business,~~for the ~~Company is~~periods ~~a defendant in a number of suits and claims~~ represented. ~~The Company is also a party to several administrative proceedings arising from state and local provisions that~~

12(2) On March 9, 2007, the Board authorized an increase in the Company's common stock repurchase program to a total aggregate amount, net of brokerage commissions, of $115.0 million (which amount is inclusive of the $50.0 million common stock repurchase program approved by the Board in 2006).

~~Table of Contents~~14

Item ~~regulate the removal and/or cleanup of underground fuel storage tanks~~ 6. ~~It is the opinion of management that none of such suits, claims or proceedings involving the Company, individually or in the aggregate, are expected to result in a material loss. See “Item~~ 1.Selected ~~Business —~~ Financial ~~Environmental Matters”.~~ Data

The In following ~~the~~selected ~~normal~~financial ~~course~~data ofshould ~~business,~~be ~~SAC~~read ~~Holdings is a defendant~~ in aconjunction ~~number~~with Management’s ofDiscussion ~~suits~~ and ~~claims.~~Analysis ~~It is the opinion~~ of ~~management~~Financial ~~that~~Condition ~~none~~and ofResults ~~the suits, claims or proceedings~~of ~~involving SAC Holdings~~ Operations, ~~individually~~and orthe inConsolidated ~~the~~Financial ~~aggregate,~~Statements ~~are expected~~and torelated ~~result~~notes in this Annual aReport ~~material~~on ~~loss~~Form 10-K.

Listed As below ~~previously~~is ~~discussed,~~selected onfinancial ~~June 20,~~data ~~2003, AMERCO filed a voluntary petition~~ for ~~relief under Chapter 11 of the Bankruptcy Code. As debtor-in-possession,~~ AMERCO isand ~~authorized~~consolidated ~~under~~entities ~~Chapter 11~~for ~~to continue to~~each ~~operate as an ongoing business, but may not engage in transactions outside the ordinary course~~ of ~~business without~~ the ~~prior~~ ~~approval~~last offive ~~the~~years ~~Bankruptcy~~ended ~~Court.~~March As of the Petition Date, all pending litigation against AMERCO is stayed, and absent further order of the Bankruptcy Court, no party, subject to certain exceptions, may take any action, again subject to certain exceptions, to recover on pre-petition claims against AMERCO. The automatic stay, however, does not apply to AMERCO’s subsidiaries, other than Amerco Real Estate Company, which filed for protection under Chapter 11, on August 13, 2003. 31:

On July 20, 2000, Charles Kocher (“Kocher”) filed suit in Wetzel County, West Virginia, Civil Action No. 00-C-51-K, entitled Charles Kocher v. Oxford Life Insurance Co. (“Oxford”) seeking compensatory and punitive damages for breach of contract, bad faith and unfair claims settlement practices arising from an alleged failure of Oxford to properly and timely pay a claim under a disability and dismemberment policy. On March 22, 2002, the jury returned a verdict of $5 million in compensatory damages and $34 million in punitive damages. On November 5, 2002, the trial court entered an Order (“Order”) affirming the $39 million jury verdict and denying Oxford’s motion for New Trial Or, in The Alternative, Remittitur. Oxford has perfected its appeal to the West Virginia Supreme Court. Oral argument on the appeal petition is set for September 9, 2003. Management does not believe that the Order is sustainable and expects the Order to be overturned by the West Virginia Supreme Court, in part because the jury award has no reasonable nexus to the actual harm suffered by Kocher.

	Year Ended March 31,
	2007			2006			2005			2004			2003
	(In thousands, except share and per share data)
Summary of Operations:
Self-moving equipment rentals	$	1,476,579		$	1,503,569		$	1,437,895		$	1,381,208		$	1,293,732
Self-storage revenues		126,424			119,742			114,155			247,640			238,938
Self-moving and self-storage products and service sales		224,722			223,721			206,098			232,965			223,677
Property management fees		21,154			21,195			11,839			259			89
Life insurance premiums		120,399			118,833			126,236			145,082			158,719
Property and casualty insurance premiums		24,335			26,001			24,987			92,036			149,206
Net investment and interest income		61,093			53,094			56,739			38,281			40,731
Other revenue		30,891			40,471			30,172			38,523			36,252
Total revenues		2,085,597			2,106,626			2,008,121			2,175,994			2,141,344

Operating expenses		1,080,897			1,080,990			1,122,197			1,179,996			1,182,222
Commission expenses		177,008			180,101			172,307			147,010			138,652
Cost of sales		117,648			113,135			105,309			111,906			115,115
Benefits and losses		118,725			117,160			140,343			217,447			248,349
Amortization of deferred policy acquisition costs		17,138			24,261			28,512			39,083			37,681
Lease expense		149,044			142,781			151,354			160,727			166,101
Depreciation, net of (gains) losses on disposal		189,589			142,817			121,103			148,813			137,446
Restructuring expense		-			-			-			44,097			6,568
Total costs and expenses		1,850,049			1,801,245			1,841,125			2,049,079			2,032,134

Earnings from operations		235,548			305,381			166,996			126,915			109,210
Interest expense		(82,756	)		(69,481	)		(73,205	)		(121,690	)		(148,131	)
Fees and amortization on early extinguishment of debt (b)		(6,969	)		(35,627	)		-			-			-
Litigation settlement, net of costs, fees and expenses		-			-			51,341			-			-
Pretax earnings (loss)		145,823			200,273			145,132			5,225			(38,921	)
Income tax benefit (expense)		(55,270	)		(79,119	)		(55,708	)		(8,077	)		13,935
Net earnings (loss)		90,553			121,154			89,424			(2,852	)		(24,986	)
Less: Preferred stock dividends		(12,963	)		(12,963	)		(12,963	)		(12,963	)		(12,963	)
Earnings (loss) available to common shareholders	$	77,590		$	108,191		$	76,461		$	(15,815	)	$	(37,949	)
Net earnings (loss) per common share basic and diluted	$	3.72		$	5.19		$	3.68		$	(0.76	)	$	(1.82	)
Weighted average common shares outstanding: Basic and diluted		20,838,570			20,857,108			20,804,773			20,749,998			20,824,618
Cash dividends declared and accrued
Preferred stock	$	12,963		$	12,963		$	12,963		$	12,963		$	12,963
Balance Sheet Data:
Property, plant and equipment, net		1,897,071			1,535,165			1,354,468			1,451,805			1,946,317
Total assets		3,523,048			3,367,218			3,116,173			3,394,748			3,832,372
Capital leases		-			-			-			99,607			137,031
AMERCO's notes and loans payable		1,181,165			965,634			780,008			862,703			940,063
SAC Holdings II notes and loans payable, non-recourse to AMERCO (a)		74,887			76,232			77,474			78,637			466,781
Stockholders' equity		718,098			695,604			572,839			503,846			327,448

(a) The amount for fiscal 2003 includes SAC Holding and SAC Holding II.
(b) Includes the write-off of debt issuance costs of $7.0 million in fiscal 2007 and $14.4 million in fiscal 2006.

On September 24, 2002, Paul F. Shoen filed a derivative action in the Second Judicial District Court of the State of Nevada, Washoe County, captioned Paul F. Shoen vs. SAC Holding Corporation et al, CV02-05602, seeking damages and equitable relief on behalf of AMERCO from SAC Holdings and certain current and former members of the AMERCO Board of Directors, including Edward J. Shoen, Mark V. Shoen and James P. Shoen as defendants. AMERCO is named a nominal defendant for purposes of the derivative action. The complaint alleges breach of fiduciary duty, self-dealing, usurpation of corporate opportunities, wrongful interference with prospective economic advantage and unjust enrichment and seeks the unwinding of sales of self-storage properties by subsidiaries of AMERCO to SAC Holdings over the last several years. The complaint seeks a declaration that such transfers are void as well as unspecified damages. On October 28, 2002, AMERCO, the Shoen directors, the non-Shoen directors and SAC Holdings filed Motions to Dismiss the complaint. In addition, on October 28, 2002, Ron Belec filed a derivative action in the Second Judicial District Court of the State of Nevada, Washoe County, captioned Ron Belec vs. William E. Carty, et al, CV 02-06331 and on January 16, 2003, M.S. Management Company, Inc. filed a derivative action in the Second Judicial District Court of the State of Nevada, Washoe County, captioned M.S. Management Company, Inc. vs. William E. Carty, et. al, CV 03-00386. Two additional derivative suits were also filed against these parties. These additional suits are substantially similar to the Paul F. Shoen derivative action. The five suits assert virtually identical claims. In fact, three of the five plaintiffs are parties who are working closely together and chose to file the same claims multiple times. The court consolidated all five complaints before dismissing them on May 8, 2003. Plaintiffs have filed a notice of appeal. These lawsuits falsely alleged that the AMERCO Board lacked independence. In reaching its decision to dismiss these claims, the court determined that the AMERCO Board of Directors had the requisite level of independence required in order to have these claims resolved by the Board. 15

Listed ~~The~~ below ~~United States Department of Labor (“DOL”)~~ is ~~presently~~selected ~~investigating~~financial ~~whether~~data ~~there~~for ~~were violations~~U-Haul ofInternational, ~~the~~Inc. ~~Employee~~for ~~Retirement~~each ~~Income Security Act~~ of ~~1974 (“ERISA”) involving~~ the ~~AMERCO Employee Savings,~~ ~~Profit~~ last ~~Sharing~~five ~~and~~years ~~Employee~~ended ~~Stock~~March ~~Ownership Plan (the “Plan”). The DOL has~~ 31:

	Year Ended March 31,
	2007			2006			2005			2004			2003
	(In thousands)
Summary of Operations:
Self-moving equipment rentals	$	1,476,579		$	1,503,569		$	1,437,895		$	1,380,991		$	1,293,686
Self-storage revenues		104,725			99,060			94,431			118,335			109,985
Self-moving and self-storage products and service sales		208,677			207,119			191,078			182,327			174,853
Property management fees		23,951			23,988			14,434			12,974			12,431
Net investment and interest income		29,294			24,894			22,030			21,504			29,358
Other revenue		31,403			39,303			27,489			35,580			18,378
Total revenues		1,874,629			1,897,933			1,787,357			1,751,711			1,638,691

Operating expenses		1,085,619			1,085,602			1,100,737			1,062,695			1,029,774
Commission expenses		186,233			189,599			181,315			176,165			166,334
Cost of sales		110,163			105,872			98,877			87,430			93,735
Lease expense		149,649			143,344			151,937			159,869			165,020
Depreciation, net of (gains) losses on disposal		180,560			131,803			114,038			125,093			112,815
Total costs and expenses		1,712,224			1,656,220			1,646,904			1,611,252			1,567,678

Earnings from operations		162,405			241,713			140,453			140,459			71,013
Interest income (expense)		(114,051	)		(14,383	)		15,687			8,560			(9,991	)
Fees and amortization on early extinguishment of debt		(302	)		-			-			-			-
Pretax earnings		48,052			227,330			156,140			149,019			61,022
Income tax expense		(17,948	)		(87,910	)		(59,160	)		(52,992	)		(21,211	)
Net earnings	$	30,104		$	139,420		$	96,980		$	96,027		$	39,811
Balance Sheet Data:
Property, plant and equipment, net	$	1,231,932		$	913,871		$	796,361		$	875,729		$	736,499
Total assets		1,729,904			1,505,813			1,516,286			1,452,361			1,235,497
Capital leases		-			-			-			99,607			14,793
Notes and loans payable		406,458			212,133			-			-			-
Stockholders' equity (deficit) (a)		(336,705	)		(354,481	)		701,198			601,514			499,380

(a) Fiscal 2006 includes a non-cash dividend to AMERCO in the amount of $1,200,000,000.

~~Table of Contents~~16

Item ~~interviewed a number of Company representatives as well as the Plan fiduciaries and has issued a subpoena to the Company and a subpoena to SAC Holdings~~ 7. ~~At the present time the~~ Management’s ~~Company~~ Discussion ~~is unable to determine whether the DOL will assert any claims against the Company, SAC Holdings, or the Plan fiduciaries. The DOL has asked the Company~~ and ~~its~~Analysis ~~current directors as well as the Plan Trustees to sign an agreement tolling the statute~~ of ~~limitations~~Financial ~~with~~Condition ~~respect to any claims arising out of certain transactions between the Company or any affiliate of the Company~~ and ~~SAC~~Results ~~Holdings, or any~~ of ~~its~~ affiliates and such parties have done so. The DOL recently asked such parties to extend the tolling agreement. The DOL has not advised the Company that it believes that any violations of ERISA have in fact occurred. Instead, the DOL is simply investigating potential violations. The Company intends to vigorously defend its position. The Company also intends to take any corrective action that may be needed in light of the DOL’s ultimate findings. Operations

The Company has received notice of a formal, non-public investigation by the Securities and Exchange Commission (“SEC”). On January 7, 2003, the Company received the first of the four subpoenas issued by the SEC to the Company. SAC Holdings, the Company’s current and former auditors, and others have also received one or more subpoenas relating to this matter. The SEC has advised the Company that this is a fact-finding investigation and that it has not reached any conclusions related to this matter. The Company has been cooperating fully with the SEC and is facilitating the expeditious review of its financial statements and any other issues that may arise. The Company does not believe that the SEC investigation will have a material adverse impact on its financial condition or results of operations. The SEC began its investigation by issuing a subpoena to PricewaterhouseCoopers (“PwC”) two months before requesting information from the Company. The Company is cooperating fully with the SEC’s investigation. General

We A begin Management’s ~~subsidiary~~Discussion and Analysis of ~~U-Haul,~~Financial ~~INW~~Condition ~~Company~~and Results of ~~(“INW”),~~ Operations ~~owns~~with ~~one~~the ~~property~~overall ~~located~~strategy ~~within~~of ~~two different~~AMERCO, ~~state~~followed ~~hazardous~~by ~~substance~~a ~~sites~~description inof our operating segments and the ~~State~~strategy of ~~Washington.~~ ~~The~~our ~~sites~~operating ~~are~~segments ~~referred~~ to asgive the ~~“Yakima Valley~~reader ~~Spray~~ an ~~Site”~~overview of the goals of our business and the ~~“Yakima~~direction ~~Railroad~~in ~~Area.”~~which ~~INW~~our ~~has~~ businesses ~~been~~and ~~named~~products asare moving. This is followed by a section entitled the “~~potentially~~Critical ~~liable~~Accounting ~~party~~Policies and Estimates” ~~under state~~that ~~law~~we ~~with~~believe ~~respect~~is important to understanding ~~this~~the ~~property~~assumptions asand itjudgments ~~relates~~incorporated toin ~~both~~our reported ~~sites~~ financial results. AsIn athe ~~result~~next ofsection, ~~the~~we ~~cleanup~~discuss ~~costs~~our results of ~~approximately~~operations ~~$5.0 million~~ for fiscal ~~required~~2007 bycompared ~~the~~with ~~State~~fiscal ~~of Washington~~2006, ~~INW~~and ~~filed~~ for ~~reorganization~~fiscal ~~under~~2006 ~~the~~compared ~~federal~~with ~~bankruptcy~~fiscal 2005 ~~laws~~beginning inwith ~~May~~an ~~of 2001~~overview. AWe ~~successful~~then ~~mediation~~provide ~~with~~an ~~other~~analysis ~~liable~~of ~~parties~~changes ~~has~~in ~~occurred~~ our balance sheet and ~~future~~cash ~~liability~~flows, toand ~~INW~~discuss ~~will~~our befinancial commitments in the sections ~~range~~entitled of“Liquidity and Capital Resources” and “Disclosures about ~~$750,000~~ Contractual toObligations $1and Commercial Commitments.~~25 million.~~” We conclude this MD&A by discussing our outlook for fiscal 2008.

This ~~AMERCO~~ MD&A isshould abe ~~defendant~~read in ~~four~~conjunction ~~putative~~with ~~class action~~the ~~lawsuits.~~other ~~Article~~sections ~~Four Trust v. AMERCO, et al., District~~ of ~~Nevada, United States District Court, Case No. CV-N-03-0050-DWH-VPC. Article Four Trust, a purported AMERCO shareholder, commenced~~ this ~~action on~~Annual ~~January 28,~~ Report ~~2003~~ on ~~behalf~~Form ~~of all persons and entities who purchased or acquired AMERCO securities between February 12, 1998 and September 26, 2002. The Article Four Trust action alleges one claim for violation of Section~~ 10~~(b) of the Securities Exchange Act and Rule 10b~~-~~5 thereunder. Mates v. AMERCO~~K, etincluding ~~al., United~~“Item ~~States~~1: ~~District Court~~Business”, ~~District~~“Item of6: ~~Nevada,~~Selected ~~Case~~Financial ~~No. CV-N-03-0107.~~ Data” ~~Maxine Mates, an AMERCO shareholder, commenced this putative class action on behalf of all persons~~ and ~~entities~~“Item ~~who~~8: ~~purchased~~Financial orStatements ~~acquired AMERCO securities between February 12, 1998~~ and ~~September 26,~~Supplementary ~~2002~~Data.” The ~~Mates~~various ~~action~~ sections ~~asserts~~of ~~claims~~this ~~under~~MD&A ~~section~~contain ~~10(b) and Rule 10b-5, and section 20(~~a) ofnumber ~~the Securities Exchange Act. Klug v. AMERCO, et al., United States District Court~~ of ~~Nevada,~~ ~~Case No. CV~~forward-~~S-03-0380.~~looking ~~Edward Klug~~statements, ~~an AMERCO~~as ~~shareholder,~~ discussed commenced this putative class action on behalf of all persons and entities who purchased or acquired AMERCO securities between February 12, 1998 and September 26, 2002. The Klug action asserts claims under ~~section 10(b)~~ ~~and Rule 10b-5 and section 20(a) of~~ the ~~Securities~~caption ~~Exchange~~“Cautionary ~~Act.~~Statements IGRegarding ~~Holdings v. AMERCO, et~~Forward-Looking ~~al.~~ Statements”, ~~United~~all ~~States District Court, District~~ of ~~Nevada,~~which ~~Case No. CV-N-03-0199.~~are ~~IG Holdings,~~based ~~an AMERCO bondholder, commenced this putative class action~~ on ~~behalf~~our ~~of all~~current ~~persons~~expectations and ~~entities~~could ~~who purchased, acquired, or traded~~be ~~AMERCO~~ affected ~~bonds~~by ~~between February 12, 1998 and September 26, 2002, alleging claims under section 11 and section 12 of~~ the ~~Securities~~uncertainties ~~Act of 1933~~ and ~~section 10(b)~~ ~~and~~risk ~~Rule 10b-5,~~factors ~~and~~described ~~section 20(a) of~~throughout ~~the~~this ~~Securities Exchange Act. Each of these four securities~~filing ~~class actions allege that AMERCO engaged in transactions with SAC entities that falsely improved AMERCO’s financial statements,~~ and ~~that~~particularly ~~AMERCO~~under ~~failed to disclose~~ the ~~transactions properly.~~section ~~The~~“Item ~~actions~~1A: ~~are~~Risk ~~at a very early stage~~Factors”. ~~The~~Our ~~Klug action~~actual ~~has not been served. In the other three actions,~~results ~~AMERCO~~ may ~~does~~differ ~~not~~materially ~~currently~~from ~~have a deadline by which it must respond to the complaints. Management has stated that it intends to defend~~ these ~~cases~~forward-looking ~~vigorously~~statements. ~~We have filed a notice of AMERCO’s bankruptcy petition and the automatic stay in each of the Courts where these cases are pending.~~

14AMERCO has a fiscal year that ends on the 31st of March for each year that is referenced. Our insurance company subsidiaries have fiscal years that end on the 31st of December for each year that is referenced. They have been consolidated on that basis. Our insurance companies’ financial reporting processes conform to calendar year reporting as required by state insurance departments. Management believes that consolidating their calendar year into our fiscal year financial statements does not materially affect the financial position or results of operations. The Company discloses any material events occurring during the intervening period. Consequently, all references to our insurance subsidiaries’ years 2006, 2005 and 2004 correspond to fiscal 2007, 2006 and 2005 for AMERCO. The operating results and financial position of AMERCO’s consolidated insurance operations are determined as of December 31st of each year.

~~Table of Contents~~Overall Strategy

Our ~~Reference~~ overall strategy is ~~made~~ to ~~Note 16~~maintain ofour ~~Notes~~leadership toposition in the North American ~~Consolidated~~ “do-it-yourself” ~~Financial~~moving ~~Statements~~and instorage ~~Item 8~~industry. ~~for~~We accomplish this by providing a ~~discussion~~ seamless ofand ~~the~~integrated ~~final~~supply ~~payments~~chain ~~made~~to inthe ~~connection~~“do-it-yourself” ~~with~~moving and storage ~~stockholder~~ market. ~~litigation~~As ~~and~~part ~~California~~of ~~overtime~~executing ~~litigation.~~this strategy, we leverage the brand recognition of U-Haul with our full line of moving and self-storage related products and services and the convenience of our broad geographic presence.

~~Item~~Our primary 4.focus ~~Submission~~is to provide our customers with a wide selection of ~~Matters~~moving rental equipment, convenient self-storage rental facilities and related moving and self-storage products and services. We are able to aexpand ~~Vote~~our distribution and improve customer service by increasing the amount of ~~Security~~moving ~~Holders~~equipment and storage rooms available for rent, expanding the number of independent dealers in our network and expanding and taking advantage of our growing eMove capabilities.

RepWest No is ~~matter~~focused ~~was~~on ~~submitted~~providing toand aadministering ~~vote~~property ofand ~~the~~casualty ~~security holders~~insurance ~~of AMERCO or~~ to U-Haul, ~~during~~its ~~the fourth quarter of the fiscal year covered by this report~~customers, ~~through~~its ~~the~~independent ~~solicitation~~dealers ~~of proxies~~and ~~or otherwise~~affiliates.

Oxford ~~PART~~ is focused IIon long-term capital growth through direct writing and reinsuring of annuity, life and Medicare supplement products primarily in the senior marketplace. Oxford is pursuing increased direct writing through acquisitions of insurance companies, expanded distribution channels and product development. In 2005, Oxford determined that it would no longer pursue growth in the credit life and disability market. We believe this will enable Oxford to focus more on its core senior population demographic.

~~Item 5. Market for the Registrant’s Common Equity and Related Stockholder Matters~~17

Description As of ~~July 10,~~Operating ~~2003, there were approximately 3,000 holders of record of AMERCO’s common stock.~~ Segments

AMERCO~~’s common stock~~ has ~~been~~four ~~traded~~reportable ~~on NASDAQ~~segments. ~~since~~They ~~November~~are ~~1994~~Moving ~~under~~and ~~the~~Storage ~~symbol~~(AMERCO, ~~“UHAL”.~~U-Haul Asand a Real ~~result~~Estate), ofProperty ~~AMERCO’s~~and ~~Chapter 11~~Casualty ~~filing~~Insurance, Life Insurance and ~~the~~SAC ~~late~~Holding ~~filing~~ II (see ofNote ~~this~~1 ~~report,~~“Basis ~~the~~of ~~trading~~Presentation”, ~~symbol~~Note ~~was~~21 ~~changed~~“Financial byInformation ~~Nasdaq~~by to Geographic ~~“UHAEQ~~Area”. ~~The~~and ~~following~~Note ~~table~~21A ~~sets~~“Consolidating ~~forth~~Financial ~~the~~Information ~~high~~by Industry ~~and~~ Segment” ~~low~~to ~~sales~~the ~~prices~~“Notes ofto ~~the~~Consolidated ~~common~~Financial ~~stock~~Statements” ofincluded ~~AMERCO~~in ~~trading on~~this ~~Nasdaq~~ Form ~~for the periods indicated~~10-K. )

	For the Years Ended
	March 31,
	2003				2002
	High		Low		High		Low
First quarter		18.50		13.90		19.98		16.64
Second quarter		14.99		6.19		20.20		17.80
Third quarter		10.40		1.36		18.80		16.75
Fourth quarter		6.00		2.77		18.04		14.27

Moving and Storage Operating Segment

Our ~~AMERCO~~ Moving ~~has~~and ~~not~~Storage ~~declared~~Operating ~~any~~Segment ~~cash~~consists ~~dividends~~of tothe rental of trucks, trailers, ~~common~~ specialty ~~stockholders~~rental ~~for~~items and self-storage spaces primarily to the ~~two~~household ~~most~~mover as ~~recent~~well ~~fiscal~~as ~~years~~sales of moving supplies, towing accessories and propane. Operations are conducted under the registered trade name U-Haul® throughout the United States and Canada.

With ~~AMERCO~~ respect ~~does~~to ~~not~~our ~~have~~truck, atrailer, ~~formal~~specialty ~~dividend~~rental ~~policy. AMERCO’s~~items ~~Board~~and ofself-storage ~~Directors~~rental business, ~~periodically~~we ~~considers~~are ~~the advisability~~focused ofon ~~declaring~~expanding ~~and~~our ~~paying~~dealer ~~dividends~~network, inwhich ~~light~~provides ofadded ~~existing~~ convenience ~~circumstances.~~for ~~AMERCO~~our ~~does~~customers ~~not~~and ~~intend~~expanding ~~to pay dividends in~~ the ~~foreseeable~~selection ~~future.~~and ~~See Note 21~~ availability of rental ~~Notes~~equipment to ~~Consolidated~~ ~~Financial~~satisfy ~~Statements in Item 8 for a discussion of certain statutory restrictions on~~ the ~~ability~~needs of ~~the~~ ~~insurance~~our ~~subsidiaries to pay dividends to AMERCO~~customers.

U-Haul ~~See~~ brand ~~Note 17~~self-moving ofrelated ~~Notes~~products toand ~~Consolidated Financial~~services, ~~Statements~~such inas ~~Item 8~~boxes, ~~for~~pads aand ~~discussion of~~tape ~~AMERCO’s~~ allow ~~non-cash~~our ~~dividends.~~customers ~~See~~to, ~~Note~~among 7other ofthings, ~~Notes~~protect totheir belongings from ~~Consolidated~~ potential ~~Financial~~damage ~~Statements~~during inthe ~~Item 8~~moving ~~for~~process. We are committed to providing a ~~discussion~~ complete line of ~~changes~~products toselected ~~common~~with ~~shares~~the ~~outstanding.~~“do-it-yourself” moving and storage customer in mind.

AMERCO ~~The~~ is committed ~~common~~to ~~stock~~be ofbeing ~~U-Haul~~a isresponsible ~~wholly~~corporate ~~owned~~citizen ~~by AMERCO.~~and Asis afurthering ~~result~~its program to Reduce, noReplenish ~~active~~and ~~trading~~Sustain. ~~market~~Our ~~exists~~truck ~~for~~and trailer rental business is the means by which our customers can reduce their environmental footprint ~~purchase~~ through ~~and~~the ~~sale~~sharing of ~~such~~equipment ~~common~~with ~~stock.~~other Ulike-~~Haul~~minded ~~has~~consumers. ~~not declared~~Additionally, ~~cash~~ the ~~dividends~~Company is launching new programs to ~~AMERCO~~advance ~~during~~our Sustainability initiative including U-Car Share, partnerships for the ~~two~~planting ~~most~~of ~~recent~~trees, ~~fiscal~~and ~~years.~~our Box Exchange program.

eMove ~~Due~~ is an toonline ~~the~~marketplace ~~Chapter 11~~that ~~filing,~~connects ~~AMERCO~~consumers ~~does not expect~~ to ~~make~~over ~~any~~3,900 ~~dividend~~independent ~~payments~~Moving Help™ onand ~~the~~over ~~Series A preferred~~2,900 ~~stock~~independent ~~for~~Self ~~the~~- ~~duration~~Storage ofAffiliates. ~~such~~Our ~~proceedings.~~network Noof ~~assurance~~ customer-rated ~~can~~affiliates beprovides ~~given~~pack asand toload ~~when~~help, orcleaning ~~whether~~help, self-storage ~~the~~and ~~payment~~similar ~~of cumulative~~services, ~~preferred~~all ~~stock~~over ~~dividends~~North ~~will resume~~America.

An ~~The~~ individual ~~rights~~or ~~and~~a ~~claims~~company ofcan ~~AMERCO’s~~connect ~~various creditors~~to ~~and~~the ~~security~~eMove ~~holders~~network ~~will be determined~~ by ~~the~~becoming ~~plan~~an ofeMove ~~reorganization~~ Moving toHelp® beAffiliate ~~filed~~or byan ~~AMERCO.~~eMove ~~Although~~Storage ~~AMERCO~~Affiliate™. ~~expects~~Moving ~~to file~~Helpers ~~and consummate a “full value” plan of~~assist ~~reorganization~~ customers ~~that provides creditors~~ with apacking, ~~combination~~loading, ~~of cash~~cleaning and ~~new~~unloading ~~debt~~their ~~securities~~truck ~~equal~~or ~~to the full amount of their~~storage ~~allowed~~ unit. ~~claims~~The ~~and~~Storage ~~also~~Affiliate ~~preserves~~program ~~the~~enables ~~value~~independent ofself-storage ~~AMERCO’s~~facilities ~~common~~ to ~~and~~expand ~~preferred~~their ~~stock,~~reach noby ~~assurance~~connecting ~~can~~into bea ~~given~~centralized as1-800 toand ~~what~~internet ~~values,~~ reservation ~~if any~~system, ~~will~~and befor ~~ascribed~~a infee, ~~the~~receive ~~bankruptcy~~an ~~proceedings to~~array ~~each~~ of ~~these~~services ~~constituencies. Accordingly, the Company urges~~including ~~that~~ web-based ~~appropriate~~management ~~caution~~software, beSecured ~~exercised~~Online ~~with~~Affiliated ~~respect~~Rentals ~~to existing~~(S.O.A.R®), ~~and~~ co-branded ~~future~~rental ~~investments~~trucks, insavings ~~any~~on ofinsurance, ~~such~~credit ~~securities~~card processing and more.

15With over 100,000 unedited reviews of independent Affiliates, the marketplace has facilitated thousand 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.

~~Table~~Property and ofCasualty ~~Contents~~Insurance Operating Segment

~~Item~~RepWest provides 6loss adjusting and claims handling for U-Haul through regional offices across North America. ~~Selected~~RepWest ~~Financial~~also ~~Data~~underwrites ascomponents ~~Restated~~of ~~AMERCO~~the Safemove, Safetow and Safestor protection packages ~~Consolidated~~to ~~Subsidiaries~~U-Haul ~~and~~customers. ~~SAC~~We ~~Holdings~~continue to focus on increasing the penetration of these products. The business plan for RepWest includes offering property and casualty ~~Consolidated~~products ~~Subsidiaries~~in other U-Haul related programs.

	For the Years Ended March 31,
				Restated			Restated			Restated			Restated
	2003			2002(3)			2001(3)			2000(3)			1999(3)
	(In thousands except share and per share data)
Summary of Operations:
Rental revenue	$	1,560,005			1,512,250			1,436,832			1,334,923			1,204,380
Net sales		222,889			222,816			212,243			201,355			220,994
Premiums		307,925			411,170			328,108			262,057			226,847
Net investment and interest income		41,568			47,343			52,297			61,021			64,964
Total revenues		2,132,387			2,193,579			2,029,480			1,859,356			1,717,185
Operating expenses		1,134,460			1,146,305			1,076,307			951,196			892,355
Commission expenses		136,827			140,442			132,865			134,135			130,160
Cost of sales		115,115			122,694			126,506			115,390			112,300
Benefits and losses		281,868			423,709			331,079			244,579			208,281
Amortization of deferred policy acquisition costs		37,819			40,674			36,232			34,987			31,721
Lease expense		179,642			174,664			175,460			130,951			118,742
Depreciation, net(1)		137,446			102,957			103,807			96,090			77,429
Total costs and expenses		2,023,177			2,151,445			1,982,256			1,707,328			1,570,988
Earnings from operations		109,210			42,134			47,224			152,028			146,198
Interest expense		148,131			109,465			111,878			97,187			85,611
Pretax earnings (loss)		(38,921	)		(67,331	)		(64,654	)		54,841			60,587
Income tax benefit (expense)		13,935			19,891			22,544			(19,362	)		(22,745	)
Net earnings (loss)	$	(24,986	)		(47,440	)		(42,110	)		35,479			37,842
Less: preferred stock dividends		12,963			12,963			12,963			13,641			17,414
Earnings (loss) available to common shareholders	$	(37,949	)		(60,403	)		(55,073	)		21,838			20,428
Net earnings (loss) per common share (diluted)(2)	$	(1.83	)		(2.87	)		(2.56	)		.99			.93
Weighted average common shares outstanding basic and (diluted)		20,743,072			21,022,712			21,486,370			21,934,930			21,937,686
Cash dividends declared and accrued Preferred stock	$	12,963			12,963			12,963			13,641			17,414
Balance Sheet Data:
Property, plant and equipment, net	$	1,946,317			1,936,076			1,882,010			1,704,483			1,532,239
Total assets		3,805,666			3,732,317			3,599,658			3,280,884			3,127,739
AMERCO’s notes and loans payable		954,856			1,045,801			1,156,849			1,137,840			1,114,748
SAC Holdings’ notes and loans payable		589,019			561,887			376,146			230,776			115,609
Stockholders’ equity		327,448			381,524			446,354			504,749			543,739

Life Insurance Operating Segment

(1)	Reflects the change in salvage value and estimated useful lives during the fiscal year ended March 31, 2002. The net effect of these changes was to reduce net loss for the fiscal year 2002 by $3.1 million or $0.15 per share.
(2)	Earnings and net earnings per common share were computed after giving effect to the dividends on the Company’s Series B floating rate stock for all years presented.
(3)	Gives effect to the restatements identified in Notes 1 and 2 of Notes to Consolidated Financial Statements in Item 8.

Oxford provides life and health insurance products primarily to the senior market through the direct writing or reinsuring of annuities, life insurance, and Medicare supplement policies. Additionally, Oxford administers the self-insured employee health and dental plans for Arizona employees of the Company.

16 18

~~Table~~SAC Holding ofII ~~Contents~~Operating Segment

~~Item~~SAC Holding 6.Corporation ~~Selected~~and ~~Financial~~its ~~Data~~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 ~~International~~under property management agreements and act as independent U-Haul rental equipment dealers. AMERCO, ~~Inc~~through its subsidiaries, has contractual interests in certain SAC Holdings’ properties entitling AMERCO to potential future income based on the financial performance of these properties. —With respect to SAC Holding II, AMERCO is considered the primary beneficiary of these contractual interests. Consequently, we include the results of SAC Holding II in the consolidated financial statements of AMERCO, as required by FIN 46(~~Continued~~R).

	For the Years Ended March 31,
	2003			2002			2001			2000			1999
	(In thousands)
Summary of Operations:
Rental revenue	$	1,433,442			1,425,685			1,364,504			1,304,709			1,216,814
Net sales		174,065			198,312			194,270			191,083			183,910
Net investment and interest income		29,358			22,686			24,346			19,474			12,916
Total revenues		1,636,865			1,646,683			1,583,120			1,515,266			1,413,640
Operating expenses		992,214			1,041,354			1,021,576			961,795			918,508
Commission expenses		164,508			153,465			143,588			143,916			137,044
Cost of sales		93,735			110,449			116,601			112,874			107,690
Benefits and losses(1)		37,560			47,036			40,521			—			—
Lease expense		165,020			171,656			167,290			132,395			118,428
Depreciation, net(2)		112,815			92,351			87,539			78,740			61,002
Total costs and expenses		1,565,852			1,616,311			1,577,115			1,429,720			1,342,672
Earnings from operations		71,013			30,372			6,005			85,546			70,968
Interest expense		9,991			11,675			17,094			496			437
Pretax earnings (loss)		61,022			18,697			(11,089	)		85,050			70,531
Income tax benefit (expense)		(21,211	)		(6,117	)		4,921			(31,704	)		(27,167	)
Net earnings (loss)	$	39,811			12,580			(6,168	)		53,346			43,364
Balance Sheet Data:
Property, plant and equipment, net	$	736,499			750,779			731,074			757,029			684,165
Total assets		1,208,791			1,099,195			935,254			970,968			892,838
Notes and loans payable		31,693			14,793			—			—			—
Stockholders’ equity		499,380			458,639			449,586			455,714			402,368

Critical Accounting Policies and Estimates

(1)	Reflects non cash adjustments primarily related to insurance
(2)	Reflects the change in salvage value and estimated useful lives during the fiscal year ended March 31, 2002. The net effect of these changes was to increase net earnings for the fiscal year 2002 by $3.1 million.

The Company’s financial statements have been prepared in accordance with the accounting principles generally accepted in the United States. The methods, estimates and judgments we use in applying our accounting policies can have a significant impact on the results we report in our financial statements. Note 3 “Accounting Policies” to the “Notes to Consolidated Financial Statements” in “Item 8: Financial Statements and Supplementary Data” of this Form 10-K summarizes the significant accounting policies and methods used in the preparation of our consolidated financial statements and related disclosures. Certain accounting policies require us to make difficult and subjective judgments and assumptions, often as a result of the need to make estimates of matters that are inherently uncertain.

~~Item~~Below we have 7.set ~~Management~~forth, with a detailed description, the accounting policies that we deem most critical to us and that require management’s ~~Discussion~~most difficult and subjective ~~Analysis~~judgments. These estimates are based on historical experience, observance of ~~Financial~~trends ~~Condition~~in particular areas, information and ~~Results~~valuations available from outside sources and on various other assumptions that are believed to be reasonable under the circumstances and which form the basis for making judgments about the carrying values of ~~Operations~~assets and liabilities that are not readily apparent from other sources. Actual amounts may differ from these estimates under different assumptions and conditions; such differences may be material.

We ~~The following discussion should be read in~~ also ~~conjunction~~ have ~~with~~other ~~the~~policies ~~Company’s~~that ~~consolidated~~we ~~financial statements~~consider ~~and~~key ~~the~~accounting ~~related~~policies, ~~notes.~~such ~~The~~as ~~accompanying consolidated~~revenue ~~financial~~ recognition; ~~statements have been prepared on a going concern basis~~however, ~~which~~these ~~contemplates~~policies ~~the~~do ~~continuity~~not ofmeet ~~operations, realization of assets and~~ the ~~satisfaction~~definition of ~~liabilities in the~~critical ~~normal~~ accounting ~~course of business. However~~estimates, asbecause athey ~~result~~do ofnot ~~AMERCO’s Chapter 11~~generally ~~filing,~~require ~~such~~us ~~realization~~to ofmake ~~assets and~~estimates ~~satisfaction~~ or ofjudgments ~~liabilities,~~that ~~without substantial adjustments,~~ are ~~subject~~difficult toor ~~uncertainty~~subjective. ~~Further,~~The aaccounting ~~plan~~policies ~~of reorganization~~that ~~could materially change the amounts and classifications in the~~ we ~~financial~~ deem ~~statements.~~most Incritical ~~addition, as discussed in Note 1~~ to ~~the consolidated financial statements~~us, ~~AMERCO~~and isinvolve ~~in default under~~ the ~~terms of~~ most ofdifficult, ~~its~~subjective ~~financing~~or ~~arrangements. The~~complex ~~consolidated~~ judgments ~~financial statements do not~~ include ~~any~~the ~~adjustments that might be required if AMERCO is unable to continue as a going concern.~~ following:

Principles ~~Cautionary~~ of ~~Statements Regarding Forward-looking Statements~~ Consolidation

The ~~This~~ Company ~~report~~applies ~~contains~~FIN ~~forward-looking~~46(R), ~~statements as~~“Consolidation ~~that~~of ~~term~~Variable isInterest ~~defined~~Entities” and ARB 51 in ~~Section 27A~~its principles of ~~the~~consolidation. ~~Securities~~FIN 46(R) addresses arrangements where ~~Act~~ a company ~~and~~does ~~Section 21E~~not hold a majority of the ~~Securities~~voting ~~Exchange~~or ~~Act~~similar interests of a variable interest entity (VIE). ~~All~~A company is required to consolidate a VIE ~~statements,~~ if ~~other~~it is ~~than~~determined ~~statements~~it ofis ~~historical~~the ~~fact,~~primary beneficiary. ARB 51 addresses the policy when a company owns a majority of the voting or similar rights and exercises effective control.

17As promulgated by FIN 46(R), a VIE is not self-supportive due to having one or both of the following conditions: a) it has an insufficient amount of equity for it to finance its activities without receiving additional subordinated financial support or b) its owners do not hold the typical risks and rights of equity owners. This determination is made upon the creation of a variable interest and can be re-assessed should certain changes in the operations of a VIE, or its relationship with the primary beneficiary trigger a reconsideration under the provisions of FIN 46(R). After a triggering event occurs the most recent facts and circumstances are utilized in determining whether or not a company is a variable interest entity, which other company(s) have a variable interest in the entity, and whether or not the company’s interest is such that it is the primary beneficiary.

~~Table~~The consolidated financial statements for fiscal 2007, 2006 and 2005 include the accounts of ~~Contents~~AMERCO, its wholly-owned subsidiaries and SAC Holding II.

In ~~included in this report are forward-looking~~ fiscal ~~statements,~~ 2003 ~~including,~~and ~~but~~fiscal ~~not limited to projections of revenues~~2002, ~~income~~SAC orHolding ~~loss,~~Corporation ~~estimates of capital expenditures, plans~~ and ~~intentions~~SAC ~~regarding~~Holding ~~the~~II ~~recapitalization of the balance sheet and the payment of dividends arrearages~~(together, ~~plans for~~ ~~future operations, products or services and financing needs or~~“SAC ~~plans,~~ Holdings”) orwere ~~perceptions~~considered ofspecial ~~AMERCO’s~~purpose ~~legal~~entities ~~positions~~ and ~~anticipated~~ ~~outcomes~~were ofconsolidated ~~pending litigation against us,~~based ~~liquidity,~~ on ~~expected~~the ~~outcomes~~provisions of ~~the~~Emerging ~~Chapter 11~~Issues ~~proceeding as~~Task ~~well~~Force as(EITF) ~~assumptions~~Issue ~~relating to the foregoing~~No. ~~The words “believe”, “expect”, “anticipate”, “estimate”, “project”, “may”, “will”, “intends”, “plans” and similar expressions identify forward~~90-~~looking statements, which speak only as of the date the statement was made~~15. ~~Forward-looking~~ ~~statements are inherently subject to risks and~~In ~~uncertainties,~~ fiscal ~~some of which cannot be predicted or quantified. Factors that could significantly affect results include~~2004, ~~without limitation,~~ the ~~risk factors enumerated at the end of this section, as well as the following: the~~ Company’s ~~ability~~applied ~~to operate~~FIN ~~pursuant~~46(R) to ~~the terms of~~ its ~~DIP~~interests ~~facility; the Company’s ability to obtain court approval with respect to motions~~ in ~~the~~SAC ~~Chapter 11 proceeding prosecuted by it from~~Holdings. ~~time to time; the Company’s ability to develop~~ Initially, ~~prosecute, confirm and consummate a plan of reorganization with respect to~~ the ~~Chapter 11 case; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the~~ Company toconcluded ~~propose~~that ~~and~~SAC ~~confirm~~Holdings awere ~~plan of~~variable ~~reorganization, for the appointment of a Chapter 11~~interest ~~trustee~~ entities ~~or to convert the case to a Chapter 7 case; the Company~~(VIE’s) ~~ability to obtain~~ and ~~maintain normal terms with vendors and service providers; the Company’s ability to maintain contracts~~ that ~~are critical to its operations;~~ the ~~potential~~ ~~adverse impact of the Chapter 11 case on the~~ Company’s ~~liquidity~~was ~~or results of operations;~~ the ~~costs~~primary and availability of financing; the Company’s ability to execute its business plan; the Company’s ability to attract, motivate and retain key employees; general economic conditions; weather conditions; fluctuations in our costs to maintain and update our fleet and facilities; our ability to refinance our debt; our ability to successfully recapitalize our balance sheet and cure existing defaults of our debt agreements; our ability to continue as a going concern; changes in government regulations, particularly environmental regulations; our credit ratings; the availability of credit; changes in demand for our products; changes in the general domestic economy; degree and nature of our competition; the resolution of pending litigation against the company; changes in accounting standards and other factors described in this report or the other documents we file with the Securities and Exchange Commissionbeneficiary. ~~The above factors~~Accordingly, the following disclosures, as well as other statements in this report and in the Notes to AMERCO’s Consolidated Financial Statements, could contribute to or cause such differences, or could cause AMERCO’s stock price to fluctuate dramatically. Consequently, the forward-looking statements should not be regarded as representations or warranties by the Company ~~that such~~continued ~~matters will be realized. The Company disclaims any intent or obligation~~ to ~~update~~include orSAC ~~revise~~Holdings ~~any of the forward-looking statements, whether~~ in ~~response~~its toconsolidated ~~new information, unforeseen~~financial ~~events, changed circumstances or otherwise~~ statements.

~~General~~ 19

In ~~Information~~ February on2004, ~~fiscal~~SAC ~~year,~~Holding ~~industry~~Corporation ~~segments~~restructured ~~and~~ the ~~Company~~indebtedness of three subsidiaries and ~~SAC~~then ~~Holdings~~distributed isits ~~incorporated~~interest byin ~~reference~~those subsidiaries to its ~~“Item 8~~ sole shareholder. ~~Financial~~This ~~Statements~~triggered ~~and~~a ~~Supplementary Data —~~requirement ~~Notes 1,~~to ~~21,~~reassess ~~and~~AMERCO’s 22involvement ofwith those ~~Notes~~subsidiaries, which led to ~~Consolidated~~ ~~Financial~~the ~~Statements”.~~conclusion ~~The~~that ~~notes~~based ~~discuss~~on ~~the~~current ~~principles~~ contractual ofand ~~consolidation,~~ownership ~~summarized~~interests ~~consolidated~~between ~~financial information~~AMERCO and ~~industry~~this ~~segment~~entity, ~~and~~AMERCO ceased ~~geographic~~to ~~area~~have ~~data.~~a ~~In consolidation,~~variable ~~all~~interest ~~intersegment~~in ~~premiums~~those ~~are~~three ~~eliminated~~subsidiaries at that date.

Separately, ~~Critical~~ in ~~Accounting~~March ~~Policies~~2004, SAC Holding Corporation restructured its indebtedness, triggering a similar reassessment of SAC Holding Corporation that led to the conclusion that SAC Holding Corporation was not a VIE and that AMERCO ceased to be the ~~Estimates~~ primary beneficiary of SAC Holding Corporation and its remaining subsidiaries. This conclusion was based on SAC Holding Corporation’s ability to fund its own operations and execute its business plan without any future subordinated financial support.

Accordingly, ~~Management’s~~ at ~~discussion and analysis of financial condition and results of operations are based upon~~ the ~~consolidated~~ ~~financial~~dates ~~statements,~~AMERCO ~~which~~ceased to have ~~been~~a ~~prepared~~variable ~~in accordance~~interest ~~with~~and ~~accounting~~ceased ~~principles~~to ~~generally~~be ~~accepted in~~ the ~~United~~ primary ~~States.~~beneficiary ~~The preparation~~ of ~~these~~SAC ~~financial~~Holding ~~statements requires~~Corporation ~~the use of estimates~~ and ~~judgments~~its ~~that~~current ~~affect~~or ~~the~~former ~~reported amounts of assets~~ subsidiaries, ~~liabilities,~~it ~~revenues~~deconsolidated ~~and~~those ~~expenses, and related disclosure of contingent assets and liabilities~~entities. ~~On an~~The ~~ongoing~~deconsolidation ~~basis, estimates are reevaluated, including those~~was ~~related~~ accounted tofor ~~areas~~as ~~that require~~ a ~~significant~~distribution ~~level~~ of ~~judgment~~SAC ~~or are~~Holding ~~otherwise~~Corporations ~~subject~~interests to anthe sole ~~inherent~~shareholder ~~degree~~ of ~~uncertainty. These~~the ~~areas~~SAC ~~include~~entities. ~~allowances~~Because ~~for doubtful accounts, depreciation~~ of ~~revenue~~AMERCO’s ~~earning~~continuing ~~vehicles and buildings,~~involvement ~~self-insured~~ with ~~liabilities,~~SAC ~~impairments~~Holding ofCorporation ~~assets,~~and ~~insurance reserves,~~its ~~premiums~~current and ~~acquisition~~former ~~cost amortization~~subsidiaries, ~~income~~the ~~taxes~~ distributions ~~and~~do ~~commitments~~not ~~and~~qualify ~~contingencies.~~as ~~The~~discontinued ~~estimates~~operations ~~are~~as ~~based on~~defined ~~historical~~by ~~experience, observance of trends in particular~~SFAS ~~areas, information and valuations available from outside sources~~ No. 144.

18It is possible that SAC Holding Corporation could take actions that would require us to re-determine whether SAC Holding Corporation has become a VIE or whether we have become the primary beneficiary of SAC Holding Corporation. Should this occur, we could be required to consolidate some or all of SAC Holding Corporation with our financial statements.

~~Table~~Similarly, SAC Holding II could take actions that would require us to re-determine whether it is a VIE or whether we continue to be the primary beneficiary of ~~Contents~~our variable interest in SAC Holding II. Should we cease to be the primary beneficiary, we would be required to deconsolidate some or all of our variable interest in SAC Holding II from our financial statements.

Recoverability ~~and on various other assumptions that are believed to be reasonable under the circumstances and which form the basis for making judgments about the carrying values~~ of ~~assets~~ ~~and~~Property, ~~liabilities~~Plant ~~that are not readily apparent from other sources. Actual amounts may differ from these estimates under different assumptions~~ and ~~conditions. Such differences may be material.~~ Equipment

Property, ~~Accounting~~ plant ~~policies~~and equipment are ~~considered~~stated ~~critical~~at ~~when~~cost. Interest expense incurred during the ~~they~~ initial ~~are~~construction ~~significant~~of buildings and ~~involve~~rental ~~difficult,~~equipment ~~subjective~~is orconsidered part of ~~complex~~ cost. ~~judgments~~Depreciation is computed for financial reporting purposes using the straight-line or ~~estimates~~an accelerated method based on a declining balance formula over the following estimated useful lives: rental equipment 2-20 years and buildings and non-rental equipment 3-55 years. The Company follows the deferral method of accounting ~~policies~~based ~~that~~in wethe AICPA’s Airline Guide for major overhauls in which ~~deem~~ engine ~~most~~overhauls ~~critical~~are capitalized and amortized over five years and transmission overhauls are capitalized and amortized over three years. Routine maintenance costs are charged to usoperating expense as they are incurred. Gains and losses on dispositions of property, plant and ~~involve~~equipment are netted against depreciation expense when realized. Equipment depreciation is recognized in amounts expected to result in the ~~most~~recovery ~~difficult~~of estimated residual values upon disposal, i.e., ~~subjective~~ no gains or ~~complex~~losses. ~~judgments~~In ~~include~~determining the ~~following:~~depreciation rate, historical disposal experience, holding periods and trends in the market for vehicles are reviewed.

We ~~Principles~~ regularly ofperform ~~consolidation —~~reviews ~~The consolidated~~to ~~financial~~determine ~~statements~~whether ~~include~~facts ~~the~~and ~~accounts~~circumstances ~~of AMERCO~~exist ~~and~~ which ~~its~~indicate ~~wholly~~that ~~owned~~the ~~subsidiaries~~carrying ~~and~~amount ~~SAC~~of ~~Holdings~~assets, ~~and~~including ~~its~~estimates of ~~wholly~~ residual ~~owned~~value, ~~subsidiaries.~~may ~~All~~not ~~material~~be ~~intercompany~~recoverable ~~accounts and~~or ~~transactions~~that ~~have~~the ~~been~~useful ~~eliminated~~life inof ~~consolidation.~~assets ~~SAC~~is ~~Holdings~~ shorter ~~has~~or ~~been~~longer ~~classified~~than asoriginally aestimated. ~~special~~Reductions ~~purpose~~in ~~entity~~residual ~~that~~values ~~meets~~ (i.e., the ~~criteria~~price ~~for~~at ~~consolidation~~which ~~and~~we ~~therefore~~ultimately ~~the~~expect ~~accounts~~ to dispose of ~~SAC~~revenue ~~Holdings~~earning equipment) ~~are~~or ~~included~~useful inlives ~~the~~will ~~consolidated~~result ~~financial statements.~~in ~~AMERCO~~an ~~has~~increase ~~concluded~~in ~~that~~depreciation ~~SAC Holdings~~expense ~~qualifies~~ over asthe alife ~~Variable~~of ~~Interest~~the ~~Entity,~~equipment. asReviews ~~defined~~are ~~by FIN 46,~~performed ~~and~~based ~~will~~on ~~continue~~vehicle toclass, generally besubcategories ~~included~~of intrucks ~~the consolidation~~and trailers. ~~AMERCO~~We ~~does~~assess ~~not~~the ~~have~~recoverability of our anassets ~~equity~~by ~~ownership~~comparing ~~interest in~~the ~~SAC~~projected ~~Holdings~~undiscounted ornet ~~any~~cash offlows ~~SAC~~associated with ~~Holdings’~~the ~~subsidiaries, except~~related ~~for~~asset ~~investments~~or ~~made~~group byof ~~RepWest~~assets ~~and~~over ~~Oxford~~their inestimated aremaining ~~SAC~~lives ~~Holdings-controlled~~ against ~~limited~~their ~~partnership,~~respective ~~which~~carrying ~~holds Canadian self-storage properties~~amounts. ~~SAC~~We ~~Holdings~~consider ~~are~~factors ~~not~~such ~~legal~~as ~~subsidiaries~~current of and ~~AMERCO.~~expected ~~AMERCO~~future ismarket ~~not~~price ~~liable~~trends ~~for~~on ~~the~~used ~~debts~~vehicles ~~of SAC Holdings~~ and ~~there~~the ~~are~~expected nolife of ~~default~~vehicles ~~provisions~~included in ~~AMERCO~~the ~~indebtedness~~fleet. ~~that cross-default~~Impairment, toif ~~SAC~~any, ~~Holdings’~~is ~~obligations.~~based ~~SAC~~on ~~Holdings~~the excess ~~has~~ of the ~~concluded~~carrying ~~that~~amount aover ~~conglomerate~~the offair ~~entities,~~value ~~known~~of asthose ~~Private Mini Storage Realty L~~assets.P. ~~(“Private~~If ~~Mini”),~~asset ~~qualifies~~residual as values aare ~~Variable~~determined ~~Interest~~to ~~Entity and will~~ be ~~included~~recoverable, inbut the ~~consolidation~~ ~~beginning~~useful ~~July 1,~~lives ~~2003.~~are Asshorter ~~of March 31,~~or ~~2003~~ longer ~~and~~than ~~for~~originally estimated, the ~~period~~net ~~then~~book ~~ended,~~value ~~Private~~of ~~Mini~~the isassets ~~accounted~~is ~~for~~ depreciated onover the ~~equity~~newly ~~method~~determined ofremaining ~~accounting~~useful lives.

During ~~Revenue~~ the ~~earning~~fourth ~~vehicles~~quarter ~~and buildings —~~of ~~Depreciation~~fiscal is2007, ~~recognized~~based inon ~~amounts expected~~economic tomarket ~~result~~analysis, in the Company ~~recovery~~decreased ofthe estimated residual ~~values upon~~value ~~disposal~~of ~~(i.e.~~certain norental ~~gains or losses)~~trucks. InThe effect ~~determining~~of the ~~depreciation~~ ~~rate,~~change ~~historical~~decreased ~~disposal~~pre-tax ~~experience~~earnings ~~and~~for ~~holding periods,~~fiscal ~~and~~2007 ~~trends~~by $2.0 million. The in-house ~~the~~analysis ~~market~~of ~~for~~truck ~~vehicles~~sales ~~are~~compared ~~reviewed.~~such ~~Due to~~factors ~~longer~~as ~~holding~~the ~~periods~~truck onmodel, size, ~~trucks~~age and ~~the~~average ~~resulting~~residual ~~increased possibility~~value of ~~changes~~units insold. Based on the ~~economic~~analysis, the estimated ~~environment~~residual ~~and~~values ~~market conditions,~~of these ~~estimates~~vehicles ~~are~~were ~~subject~~decreased to aapproximately 20% of ~~greater~~historic ~~degree~~cost. The adjustment reflects management’s best estimate of the ~~risk~~ estimated residual value of the rental trucks.

Long-lived assets and intangible assets — The carrying value is reviewed whenever events or circumstances indicate the carrying values may not be recoverable through projected undiscounted future cash flows. The events could include significant underperformance relative to expected, historical or projected future operating results, significant changes in the manner of using the assets, overall business strategy, significant negative industry or economic trends and an unexpected non-compliance with significant debt agreements. 20

Starting ~~Investments —~~ in ~~For~~fiscal ~~investments~~2006 ~~accounted~~the Company acquired a significant number of moving trucks via ~~for~~ purchase ~~under~~rather ~~SFAS 115,~~than inlease. ~~determining~~Management ifperformed an analysis of the expected economic value of new rental trucks and ~~when~~determined that additions to the fleet resulting from purchase should be depreciated on an accelerated method based upon a ~~decline~~declining informula. The salvage value and useful life assumptions of ~~market~~ the rental truck fleet remain unchanged. Under the declining balances method (2.4 times declining balance) the book value ~~below~~of ~~amortized~~a ~~cost~~rental truck is ~~other~~reduced ~~than~~16%, ~~temporary~~13%, ~~quoted~~ 11%, ~~market~~9%, ~~prices~~8%, ~~dealer~~7%, ~~quotes~~and or6% ~~discounted~~during ~~cash~~years ~~flows~~one ~~are~~through seven, respectively and then ~~reviewed.~~ reduced ~~Other-than-temporary~~on ~~declines~~a instraight ~~value~~line ~~are~~basis ~~recognized~~an additional 10% by the end of year fifteen. in Whereas, a standard straight line approach would reduce the ~~current~~book ~~period~~value ~~operating~~by approximately ~~results~~5.3% toper year over the ~~extent~~life of the truck. For the affected ~~decline~~ equipment, the accelerated depreciation was $33.2 million greater than what it would have been if calculated under a straight line approach for fiscal 2007 and $4.0 million for fiscal 2006.

We ~~Insurance~~ typically ~~Revenue~~sell ~~and~~our ~~Expense Recognition —~~used ~~Premiums~~vehicles ~~are~~at ~~recognized~~one asof ~~revenue~~our ~~and earned~~sales ~~over~~centers ~~the~~throughout ~~terms~~North America, ofon ~~the~~our ~~respective~~web ~~policies~~site at trucksales.uhaul.com ~~Benefits~~or ~~and expenses~~by ~~are~~phone ~~matched~~at ~~with~~1-866-404-0355. Although ~~recognized~~we ~~premiums~~intend to ~~result~~sell ~~in revenue~~our ~~and~~used ~~expense~~vehicles ~~recognition~~for ~~over~~prices ~~the~~approximating ~~life~~book value, of the ~~contracts. This~~extent ~~match~~to iswhich ~~accomplished~~we byrealize ~~recording~~ a ~~provision~~gain ~~for~~or ~~future policy~~loss ~~benefits~~on ~~and~~the ~~unpaid~~sale ~~claims~~of ~~and~~used vehicles ~~claim~~is ~~adjustment~~dependent ~~expenses and~~upon byvarious ~~amortizing~~factors ~~deferred~~including ~~policy~~the ~~acquisition~~general ~~costs.~~state ~~Charges~~of the ~~related~~ used tovehicle ~~services~~market, tothe beage ~~performed~~and ~~are~~condition ~~deferred~~of ~~until~~the ~~earned. The~~vehicle ~~amounts~~at ~~received~~the intime ~~excess~~ of ~~premiums~~its disposal and ~~fees~~depreciation ~~are~~rates ~~included in~~with ~~other~~respect ~~policyholder~~to ~~funds in~~ the ~~consolidated balance sheets~~vehicle.

Insurance Unearned premiums represent the portion of premiums written which relate to the unexpired term of policies. Liabilities for health and disability and other policy claims and benefits payable represent estimates of payments to be made on insurance claims for reported losses and estimates of losses incurred but not yet reported. These estimates are based on past claims experience and current claim trends as well as social and economic conditions such as changes in legal theories and inflation. Due to the nature of underlying risks and the high degree of uncertainty associated with the determination of the liability for future policy benefits and Reserves

19Liabilities for life insurance and certain annuity and health policies are established to meet the estimated future obligations of policies in force, and are based on mortality, morbidity and withdrawal assumptions from recognized actuarial tables which contain margins for adverse deviation. In addition, liabilities for health, disability and other policies include estimates of payments to be made on insurance claims for reported losses and estimates of losses incurred, but not yet reported. Liabilities for annuity contracts consist of contract account balances that accrue to the benefit of the policyholders.

~~Table~~Insurance reserves for RepWest and U-Haul take into account losses incurred based upon actuarial estimates. These estimates are based on past claims experience and current claim trends as well as social and economic conditions such as changes in legal theories and inflation. Due to the nature of ~~Contents~~underlying risks and the high degree of uncertainty associated with the determination of the liability for future policy benefits and claims, the amounts to be ultimately paid to settle liabilities cannot be precisely determined and may vary significantly from the estimated liability.

A ~~claims,~~ consequence of the ~~amounts~~long totail benature ~~ultimately~~of ~~paid~~the toassumed reinsurance and the excess ~~settle~~ workers ~~liabilities~~compensation ~~cannot~~lines beof ~~precisely~~insurance ~~determined~~that ~~and~~were ~~may~~written ~~vary~~by RepWest is that ~~significantly~~ it takes ~~from~~a ~~the~~number ~~estimated~~of ~~liability~~years for claims to be fully reported and finally settled.

Impairment ~~Acquisition~~ of costs related to insurance contracts have been deferred to accomplish matching against future premium revenue. The costs are charged to current earnings to the extent it is determined that future premiums are not adequate to cover amounts deferred. Investments

For ~~U-Haul~~ investments ~~Insurance~~accounted ~~Expense —~~for ~~Expense~~under SFAS No. 115, in determining if and when a decline in market value below amortized cost is other-than-temporary, management ~~recognized~~ makes ~~annually~~certain ~~based~~assumptions onor ~~reported~~judgments ~~claims~~in its assessment including but not limited to: ability and anintent ~~estimate~~to ofhold the security, quoted market prices, ~~future~~ dealer ~~claims~~quotes or discounted cash flows, industry factors, financial factors, and issuer specific information such as credit strength. AOther-than-temporary impairment ~~reserve~~in value is ~~booked~~recognized ~~for~~in ~~unpaid~~the ~~losses~~current period operating results. ~~U-Haul~~ The Company’s ~~self-insured~~insurance ~~retention~~subsidiaries isrecognized ~~paid~~$1.4 ~~out~~million ~~over~~in ~~time as~~other-than-temporary ~~claims~~ impairments ~~are~~for ~~settled~~fiscal 2007, ~~relieving~~$5.3 ~~the~~million ~~reserve~~ for ~~unpaid~~fiscal ~~losses~~2006 and $4.3 million for fiscal 2005.

Income ~~Disclosures about Contractual Obligations and Commercial Commitments~~ Taxes

				Payments due by Period (as of March 31, 2003)
				Prior to		04/01/04			04/01/06		April 1, 2008
Financial Obligations	Total			03/31/04		03/31/06			03/31/08		and Thereafter
	(In thousands)
AMERCO’s notes and loans	$	954,856			954,856		—			—		—
AMERCO’s operating leases		552,165			552,165		—			—		—
SAC Holdings’ notes and loans		983,190			79,971		120,067			19,241		763,911
Elimination of SAC Holdings’ obligations to AMERCO		(394,171	)		—		(23,618	)		—		(370,553	)
Total Contractual Obligations	$	2,096,040			1,586,992		96,449			19,241		393,358

The Company’s tax returns are periodically reviewed by various taxing authorities. Despite our belief that all of our tax treatments are supportable, the final outcome of these audits may cause changes that could materially impact our financial results. Our current effective tax rate is approximately 37.9%.

On October 15, 2002 AMERCO defaulted on its BBATs and related obligations. This default triggered cross-default provisions in AMERCO’s other debt agreements. As a result, approximately $1,178.1 million of the Company’s contractual obligations and commercial commitments listed below became immediately due and payable. As of March 31, 2003, SAC Holdings has interest bearing debt to outside parties of $589.0 million, is not in default of any related covenants and is current on all of its payments. 21

	(In millions)
Bank of Montreal synthetic lease	$	149.0
Citibank synthetic lease		101.7
3 yr Credit Agreement		205.0
Royal Bank of Canada lease		5.7
Amerco Real Estate Notes		100.0
‘03 Notes		175.0
‘05 Notes		200.0
Medium Term Notes		109.5
BBAT		100.0
Bank of America Obligation (BBAT)		11.3
Citicorp Obligation (BBAT)		15.3
Bank of America Swap		2.1
JP Morgan Swap		3.5
	$	1,178.1

AMERCO files a consolidated tax return with all of its legal subsidiaries, except for Dallas General Life Insurance Company (“DGLIC”) which will file on a stand alone basis. SAC Holding Corporation and its legal subsidiaries and SAC Holding II Corporation and its legal subsidiaries file consolidated tax returns, which are in no way associated with AMERCO’s consolidated returns.

Adoption ~~In February 1997, AMERCO, through its insurance subsidiaries, invested in the equity~~ of ~~Private~~New ~~Mini,~~Accounting a Texas based self-storage operator. During 1997, Private Mini secured a line of credit in the amount of $225 million with a financial institution, which was subsequently reduced in accordance with its terms to $125 million in December 2001. Under the terms of this credit facility AMERCO entered into a support party agreement with Private Mini and the financial institution whereby upon certain defaults or noncompliance with debt covenants by Private Mini, AMERCO could be required to assume responsibility in fulfilling all Pronouncements

20In September 2006, the Financial Accounting Standards Board (FASB) issued SFAS 158, Employers’ Accounting for Defined Benefit Pension and Other Post Retirement Plans - an amendment of SFAS 87, 88, 106 and 132(R), which requires companies to recognize a net liability or asset to report the over-funded or under-funded status of their defined benefit pension and other postretirement benefit plans on their balance sheets and recognize changes in funded status in the year in which the changes occur through other comprehensive income. The funded status to be measured is the difference between plan assets at fair value and the benefit obligation. This Statement requires that gains and losses and prior service costs or credits, net of tax, that arise during the period be recognized as a component of other comprehensive income and not as components of net periodic benefit cost.

~~Table~~We adopted the balance sheet provisions of ~~Contents~~SFAS 158, as required, at March 31, 2007. As a result the Company recorded after tax unrecognized losses of $0.2 million to accumulated other comprehensive income in fiscal 2007. As discussed in Note 14 “Employee Benefit Plans” to the Consolidated Financial Statements, the Company previously used December 31 as the measurement date to measure the assets and obligations of its post retirement and post employment benefits plans. SFAS 158 requires the Company to perform the measurements at year end. The portion of the net periodic cost associated with the three month measurement lag was $0.1 million, after tax. This was recorded as an adjustment to retained earnings in fiscal 2007.

In ~~payment~~ September ~~obligations~~2006, ~~and~~the ~~certain~~SEC ~~covenant obligations~~issued ~~related~~Staff toAccounting ~~this~~Bulletin ~~credit~~(SAB) ~~facility.~~108 ~~Private Mini~~“Considering ~~defaulted on~~ the ~~credit~~Effects ~~facility~~of ~~due~~Prior toYear ~~AMERCO’s~~Misstatements ~~default under~~in ~~the~~Current ~~support~~Year ~~party agreement~~Financial Statements”, which provides ~~support~~interpretive ~~party~~guidance ~~agreement default~~on ~~was~~how ~~triggered~~the byeffects ~~virtue~~ of ~~cross-defaults~~prior toyear ~~certain~~uncorrected ~~other~~ misstatements ~~AMERCO~~should ~~obligations.~~be ~~Additionally,~~considered ~~Private~~when ~~Mini~~quantifying ~~defaulted under~~misstatements ~~the~~in ~~credit facility by virtue of non-payment of the~~current ~~outstanding~~ year ~~balance~~financial ~~at maturity~~statements. InThere ~~December~~was ~~2002~~diversity in practice, with the ~~financing~~two ~~institution~~ commonly ~~exercised~~used ~~its~~methods ~~option~~ to ~~require~~quantify ~~AMERCO~~misstatements tobeing ~~purchase all commitments under~~ the ~~credit~~“rollover” ~~facility.~~method (which Inprimarily ~~March~~focuses ~~2003~~on ~~AMERCO and~~ the ~~financial~~income ~~institution~~statement ~~entered~~impact ~~into~~of amisstatements) ~~standstill~~and ~~agreement~~ the ~~with~~“iron ~~respect~~curtain” tomethod ~~this obligation,~~ (which ~~standstill agreement~~focuses ~~expired by its terms~~ on ~~April 30, 2003. Since April 30, 2003,~~ the ~~financial~~cumulative ~~institution~~amount ~~has~~by ~~not~~which ~~re-issued~~the ~~any~~ current ~~default~~year ~~notices~~balance tosheet ~~AMERCO~~is ~~with~~misstated ~~respect~~and tomay ~~this~~not ~~obligation~~prevent orsignificant ~~otherwise~~ misstatements ~~required~~in ~~AMERCO to purchase all commitments under~~ the ~~credit~~ ~~facility~~income statement). ~~AMERCO~~SAB ~~has~~108 ~~not~~requires ~~purchased~~registrants ~~any~~to ~~commitments under~~use ~~the~~ a dual ~~credit~~approach ~~facility~~whereby ~~and,~~both as of ~~March 31,~~these ~~2003,~~methods ~~AMERCO~~are ~~has recorded~~considered ain ~~liability~~evaluating ~~for~~ the materiality ~~$55 million~~of ~~remaining~~financial ~~balance under~~statement ~~the~~errors. ~~credit~~Prior ~~facility~~materiality ~~with~~assessments awere reconsidered ~~corresponding~~using ~~increase~~both tothe ~~its receivable~~rollover ~~from~~and ~~Private~~iron ~~Mini~~curtain methods.

Effective In March ~~February 2003~~31, an2007 ~~entity~~the ~~affiliated~~Company ~~with Private~~adopted ~~Mini~~SAB ~~closed~~108 onand recorded a ~~$255~~correction ~~million~~in ~~financing and~~the ~~$70 million~~ fourth quarter of ~~these~~fiscal ~~proceeds~~2007 ~~were~~related ~~used~~ to ~~pay~~prepaid ~~down~~expenses ~~the $125 million~~on ~~line~~leased ~~of credit described above~~equipment. ~~The aggregate~~ ~~amount~~ In ofanalyzing ~~support~~this ~~provided~~error bywe ~~AMERCO~~determined ~~remains~~that ~~unchanged~~it ~~at $125 million~~was ~~($55 million~~not ~~referred~~material to inour ~~the previous~~statement ~~paragraph~~ of toearnings ~~the~~in ~~lenders~~any ~~under~~single ~~the~~quarter ~~Amended~~or ~~and~~annual ~~Restated~~period; ~~loan agreement~~however, ~~with~~ the ~~1997~~cumulative adjustment ~~lenders~~necessary ~~and~~would ~~$70 million~~have ~~under~~been material in the ~~new~~ ~~$255 million~~current ~~financing)~~period. ~~Under~~In accordance ~~the~~with ~~terms~~SAB of108, the ~~support party~~Company ~~capital~~adjusted ~~agreement~~its ~~for~~beginning ~~the~~retained ~~$255~~earnings balance ~~million~~for ~~financing, following~~fiscal ~~certain~~2007 ~~events~~and ofits ~~default,~~financial ~~AMERCO~~results ~~could~~for bethe ~~required~~first tothree quarters ~~assume~~ of ~~responsibility~~fiscal 2007 for ~~$70 million~~this ofadjustment. ~~the~~The ~~obligations under~~Company ~~this~~determined ~~financing.~~that ~~AMERCO~~the ~~has~~adjustment would ~~recorded~~not abe ~~liability~~material ~~for~~in ~~the $70 million~~any ~~obligation~~specific ~~with~~period aand ~~corresponding~~therefore ~~increase~~did tonot ~~its~~restate ~~receivable~~ historical ~~from~~financial ~~Private Mini~~statements.

The ~~AMERCO~~ error was ~~uses~~related ~~certain~~to rental equipment ~~and~~originally ~~occupies~~leased during periods between fiscal ~~certain~~ 2000 ~~facilities~~and ~~under~~fiscal ~~operating~~2002. ~~lease~~The ~~commitments~~rental ~~with~~equipment ~~terms~~was sold to the lessor at less than ~~expiring~~ its ~~through~~book ~~2079.~~value Inand ~~the~~then ~~event~~subsequently ofleased aback ~~shortfall~~to inthe ~~proceeds~~Company via an operating ~~from~~ lease. The difference between the ~~sale~~sales ofprice to the ~~underlying~~lessor ~~assets,~~and ~~AMERCO~~the ~~has~~book ~~guaranteed~~value ~~approximately~~ prior ~~$192.0 million~~to ofthe ~~residual~~sale ~~values~~was atdeferred and amortized over the life of the equipment. ~~March 31,~~ Per SFAS ~~2003,~~28 ~~for~~the ~~these~~amortization ~~assets~~period atshould have been over the ~~end~~term of the ~~respective~~ lease ~~terms~~. The Company quantified the error and in fiscal 2007 changed its accounting treatment for prepaid expenses on sales - leaseback vehicle transactions to ensure that all new instances would be accounted for properly.

~~Results of Operations~~ 22

~~U-HAUL~~Recent Accounting ~~Moving and Storage Operations~~Pronouncements

In ~~Rental~~ June 2006, ~~revenue~~the ~~was~~FASB ~~$1,433.4 million,~~issued a standard that addresses accounting for income taxes: $1 FIN 48,~~425.7 million~~ ~~and~~Accounting for ~~$1,364.5 million~~Uncertainty in ~~fiscal~~Income ~~years~~Taxes. ~~2003~~ Among other things, ~~2002~~FIN ~~and~~48 ~~2001,~~requires ~~respectively.~~applying ~~Rental~~an ~~revenues~~audit ~~increased~~sustainability standard of ~~from~~“more likely ~~2003~~than ~~compared~~not” related to ~~fiscal~~the ~~2002,~~recognition ~~due~~and tode-recognition ~~price~~of ~~and~~tax ~~productivity gains~~positions. FIN ~~The~~48 ~~increase~~is ~~from~~effective for fiscal ~~year~~years ~~2001~~beginning toafter ~~fiscal~~December ~~year~~15, ~~2002~~2006. isThe ~~due~~ Company tois ancurrently ~~increase~~evaluating inthe ~~one-way~~effect ~~transactions~~that ~~with~~the anadoption ~~improved average~~will ~~dollar~~have ~~per transaction~~ on ~~one-way~~its Consolidated ~~rentals~~Financial asStatements. ~~well~~The ~~as growth~~cumulative ineffect ~~transactions~~of inapplying ~~trailer~~the provisions ~~rentals~~of ~~and~~FIN ~~support~~48, ~~rental items.~~if ~~Storage~~any, ~~revenue~~will ~~decreased~~be ~~all~~reported ofas ~~the~~an ~~years~~adjustment ~~due~~ to the opening ~~sale~~ balance of ~~properties~~the toCompanies ~~SAC~~retained ~~Holdings~~earnings at April 1, 2007.

In ~~Net~~ September ~~sales~~2006, ~~revenues~~the ~~were~~FASB ~~$174.1 million~~issued SFAS 157, Fair ~~$198.3 million~~ Value ~~and~~Measurements which establishes ~~$194.3 million~~how incompanies ~~fiscal~~should ~~years~~measure fair value when they are required ~~2003,~~ to use ~~2002~~a ~~and~~fair ~~2001,~~value ~~respectively.~~measure ~~Revenue~~for ~~declines~~recognition inor ~~the~~disclosure ~~sale~~purposes under GAAP. of This statement ~~hitches,~~is ~~moving~~effective ~~support~~for ~~items~~financial ~~(i.e.~~statements ~~boxes~~issued for fiscal years beginning after November 15, ~~etc.)~~2007, and ~~propane~~interim periods within those years. The provisions of SFAS 157 are effective for ~~2003~~us ~~from~~in ~~2002~~April ~~was~~2008. ~~largely~~The ~~due~~Company is currently toevaluating the ~~sale~~impact of ~~centers~~this tostatement ~~SAC.~~on our Consolidated Financial Statements.

In ~~Interest~~ February ~~income~~2007, ~~before~~the ~~consolidating~~FASB ~~entries~~issued SFAS 159, The ~~was~~ Fair ~~$29.4 million,~~Value ~~$22.7 million~~Option for Financial Assets and Liabilities, ~~$24~~ including an amendment of SFAS 115.~~3 million~~ inThis ~~fiscal~~statement ~~years~~allows ~~2003,~~for ~~2002~~a ~~and~~company ~~2001,~~to ~~respectively.~~ irrevocably ~~The~~elect ~~increase~~fair ~~during~~value ~~fiscal~~as ~~year~~the ~~2003~~measurement ~~can~~attribute befor certain financial ~~attributed~~ assets toand anfinancial ~~increase~~liabilities. Changes in the ~~average~~fair ~~investment~~value ~~balance~~ of such assets ~~SAC~~ are recognized ~~notes~~in earnings. ~~The~~SFAS ~~decrease~~159 inis effective for fiscal ~~year~~years ~~2002~~beginning isafter November ~~mainly~~15, ~~related~~2007. ~~to a~~The ~~decrease~~provision inof ~~average~~SFAS ~~investment~~159 ~~balance~~is effective for us in ~~SAC~~April ~~notes~~2008. The Company is currently evaluating the impact of this statement on our Consolidated Financial Statements.

Operating expenses, before intercompany eliminations, were $992.2 million, $1,041.4 million and $1,021.6 million in fiscal years 2003, 2002 and 2001, respectively. The decrease in operating expenses for fiscal year 2003 was due to the incorporation of cost reduction programs and the sale of centers to SAC. The increase in fiscal year 2002 is due to increased personnel costs and higher repair expense. Also, the addition of storage rooms will initially cause an increase in operating expenses without corresponding increases in earnings until the properties reach a stabilized level of occupancy. 23

Results ~~Commission~~ of expense was $164.5 million, $153.5 million and $143.6 million for fiscal years 2003, 2002 and 2001 respectively. The increase in commissions paid was due to the overall increase in rental revenues generated by independent dealers (including SAC). Operations

21AMERCO and Consolidated Entities

~~Table~~Fiscal 2007 ofCompared ~~Contents~~with Fiscal 2006

Listed ~~Cost~~ below ofon ~~sales~~a ~~was~~consolidated ~~$93.7 million, $110.4 million~~basis ~~and~~are ~~$116.6 million~~revenues infor ~~fiscal~~our ~~years 2003,~~major ~~2002~~product ~~and~~lines ~~2001, respectively. The decrease in~~ for fiscal ~~year 2003~~2007 ~~was due to lower sales volume, better sourcing~~ and ~~the sales of certain locations to SAC during the last quarter of~~ fiscal ~~year 2002. The decrease in fiscal year 2002 is due to lower sales volume and lower costs of propane and other materials.~~ 2006:

Benefits and losses were $37.6 million, $47.0 million and $40.5 million for fiscal years 2003, 2002 and 2001 respectively. This expense represents an adjustment in the reserve for insurance claims on U-Haul’s financial statements. This was partially due to U-Haul’s “Self-Insurance Retention Level” increasing to 95% for 2001 and 2002 and 100% in 2003. The Self-Insurance Retention is currently $2.0 million per event. This is a non-cash expense until claims are paid.

	Year Ended March 31,
	2007		2006
	(In thousands)
Self-moving equipment rentals	$	1,476,579	$	1,503,569
Self-storage revenues		126,424		119,742
Self-moving and self-storage product and service sales		224,722		223,721
Property management fees		21,154		21,195
Life insurance premiums		120,399		118,833
Property and casualty insurance premiums		24,335		26,001
Net investment and interest income		61,093		53,094
Other revenue		30,891		40,471
Consolidated revenue	$	2,085,597	$	2,106,626

During ~~Lease~~ fiscal ~~expense~~2007, ~~before~~self-moving ~~intercompany~~equipment ~~elimination~~rentals ~~was~~ decreased $~~165~~27.0 million, ~~$171.7~~compared with ~~million~~fiscal ~~and~~2006 ~~$167.3 million~~with ~~in fiscal~~the ~~years~~majority ~~2003,~~of ~~2002~~the ~~and~~variance ~~2001,~~occurring ~~respectively~~during the second half of the year. The ~~decrease~~Company finished fiscal 2007 with increases in one-way ~~lease~~ transactions ~~expense~~along ~~for~~with ~~fiscal~~increases ~~year~~in ~~2003~~the ~~was~~average ~~due~~inventory toof athe ~~decline~~truck infleet. ~~rental~~ However, ~~trucks~~offsetting ~~under~~these ~~lease.~~factors ~~The~~were ~~increase~~a decrease in ~~fiscal~~average ~~year~~revenue ~~2002 is~~per transaction primarily due to anone-way ~~increase~~pricing, inthe lack of certain mid-size trucks during the ~~value~~spring and summer months of ~~properties~~fiscal ~~leased~~2007 ~~that~~and ~~was~~decreased fleet ~~partially~~ utilization. ~~offset~~The byCompany’s aresponse ~~decrease~~to incompetitive ~~rental~~pricing ~~equipment~~issues ~~lease~~has ~~expense~~further lowered self-moving rental revenues. The Company now has a better inventory of certain mid-size trucks and is attempting to improve revenue per transaction; however, if these issues continue our revenues may continue to be negatively impacted in the future.

Self-storage ~~Depreciation~~ revenues ~~expense,~~increased ~~net was~~ $~~112~~6.~~8 million,~~7 ~~$92.4~~ million ~~and $87.5 million~~ in ~~fiscal~~ ~~years 2003, 2002 and 2001, respectively. The increase in depreciation expense, net, for~~ fiscal year 2003 was caused by an increase in the number of trucks owned. The increase in fiscal years 2002 reflects an overall increase in depreciation expense on the rental truck fleet offset in fiscal year 2002 by gains on the sale of surplus assets. A change in estimated salvage value and increase in our estimate of the useful lives of certain of our trucks further reduced depreciation expense for fiscal year 2002. An internal analysis of sales of trucks was completed for the fiscal years ending March 312007, ~~1996 through March 31, 2001. The study~~ compared ~~the~~with ~~truck model, size, age and average residual value of units sold for each~~ fiscal ~~year~~ ~~indicated. The analysis revealed that average residual~~2006 ~~values~~ largely ~~(as~~due ~~computed) when compared~~ to ~~sales~~improved ~~prices were not reflective of the values that the Company was receiving upon disposition~~pricing. ~~Based~~During onfiscal ~~the analysis~~2007, the estimated residual values were decreased to approximately 25% of historic cost. In addition, this analysis revealed that our estimates of useful lives were not reflective of the economic lives of our trucks, which ultimately were being utilized by the Company ~~for~~has ~~longer periods of time. Thus the useful lives of certain of our trucks were~~ increased ~~by approximately 3 years. The net effect of~~ ~~these~~ rooms ~~changes~~and ~~was~~square tofootage ~~decrease~~available ~~net~~primarily ~~losses~~through ~~for~~build-outs ~~the~~at ~~fiscal year~~existing ~~2002 by $3~~ facilities.~~1 million~~ ~~or $0.15 per share.~~

Sales ~~Earnings~~ of self-moving ~~from~~and ~~operations,~~self-storage ~~before~~products ~~intercompany eliminations,~~and ~~were~~service ~~$71.0 million,~~sales ~~$30.4 million~~revenues ~~and~~increased $61.0 million in fiscal ~~years 2003~~2007, ~~2002~~compared ~~and~~with ~~2001, respectively~~fiscal 2006. The ~~increase~~Company incontinues ~~earnings from operations in fiscal~~to ~~year~~ improve ~~2003~~its ~~was~~visibility ~~due~~as to a ~~reduction~~leading inprovider ~~all~~of ~~expense~~propane, ~~categories except~~moving ~~depreciation.~~supplies ~~Tighter cost controls~~ and ~~the reduction in~~ ~~expenses~~ towing ~~due~~accessories toand ~~the~~offer ~~sale~~new toproducts ~~SAC~~and ~~were~~services ~~the largest contributors. The increase~~ in ~~fiscal~~an ~~year~~effort ~~2002 is due~~ to ~~the~~ increase in ~~rental~~ sales ~~revenues offset by increases in operating expenses~~results.

Other ~~Interest~~ revenues ~~expense~~decreased ~~before intercompany eliminations was~~ $109.~~0 million,~~6 ~~$11.7~~ million ~~and $17.1 million~~ in fiscal ~~years 2003~~2007, ~~2002~~compared ~~and~~with ~~2001, respectively. The decrease in~~ fiscal ~~years 2003 and 2002 can be~~2006. ~~attributed~~ Fiscal to2006 ~~lower~~included ~~average~~several ~~debt~~non-recurring ~~balance and interest rate reductions~~items.

Premiums ~~Pretax~~ at ~~earnings~~RepWest ~~(loss) before~~decreased ~~intercompany eliminations were~~ $611.~~0 million, $18.~~7 ~~million~~ ~~and $(11.1)~~ million ~~for~~with ~~the~~increases ~~fiscal~~in ~~years~~U-Haul ~~2003,~~related ~~2002,~~premiums offset ~~and~~by ~~2001, respectively~~reductions in other lines.

~~SAC~~Oxford’s premium ~~Moving~~revenues ~~and~~increased ~~Storage~~approximately ~~Operations~~$1.6 million primarily due to an increase in Medicare supplement premiums resulting from the acquisition of DGLIC.

As ~~Rental revenue was $168.0 million,~~ a ~~$112.7 million~~ result ~~and~~of ~~$92.5 million~~the initems ~~fiscal~~mentioned ~~years 2003~~above, ~~2002~~ ~~and~~revenues ~~2001,~~for ~~respectively.~~AMERCO ~~Increased~~and ~~facility~~its ~~capacity through~~consolidated ~~the~~ entities ~~acquisition~~were of$2,085.6 ~~new~~million ~~locations~~for ~~and~~fiscal ~~increased~~2007, ~~storage~~compared ~~rates accounted~~with ~~for the increase~~$2,106.6 ~~The occupancy of existing storage~~million ~~locations~~ for ~~has~~fiscal ~~remained stable~~2006.

~~Net sales revenues were $48.8 million, $~~24~~.4 million and $17.9 million in fiscal years 2003, 2002 and 2001, respectively. Revenue growth was due to the addition of new locations.~~

Listed ~~Operating~~ below ~~expenses,~~are ~~before~~revenues ~~intercompany eliminations,~~and ~~were~~earnings ~~$105.3 million,~~from ~~$68.2 million~~operations ~~and $49.2 million~~at ineach ~~fiscal~~of ~~years~~our ~~2003,~~four ~~2002 and 2001,~~operating ~~respectively.~~ segments ~~Personnel~~for ~~expenses,~~fiscal ~~liability~~2007 ~~insurance, property taxes~~ and ~~utility~~fiscal ~~expenses~~2006, ~~all~~the ~~increased~~insurance ~~proportionately~~companies inyears ended ~~relation~~ are toDecember ~~the~~31, ~~increased~~2006 ~~revenues~~and ~~from the acquisition of new locations~~2005.

	Year Ended March 31,
	2007			2006
	(In thousands)
Moving and storage
Revenues	$	1,875,860		$	1,900,468
Earnings from operations		217,937			292,774
Property and casualty insurance
Revenues		38,486			37,358
Earnings from operations		5,741			1,144
Life insurance
Revenues		148,820			148,080
Earnings from operations		14,521			13,933
SAC Holding II
Revenues		46,603			46,239
Earnings from operations		13,854			13,643
Eliminations
Revenues		(24,172	)		(25,519	)
Earnings (loss) from operations		(16,505	)		(16,113	)
Consolidated Results
Revenues		2,085,597			2,106,626
Earnings from operations		235,548			305,381

~~Table~~Total costs and expenses increased $48.8 million in fiscal 2007, compared with fiscal 2006. This is due primarily to increases in depreciation expense associated with the acquisition of ~~Contents~~new trucks and the fleet rotation. Beginning in the second half of fiscal 2006 the Company began utilizing debt to finance the majority of new truck purchases rather than operating lease arrangements which were used primarily during the previous ten years. While the Company generates a cash flow benefit from utilizing the depreciation deduction for income taxes as compared to what the lease expense would have been, the consolidated statement of operations reflects an increase in depreciation expense greater than what the corresponding lease expense would have been had we leased this equipment instead. For additional information on the Company’s depreciation policy refer to “Critical Accounting Policies and Estimates”.

As ~~Cost~~ a result of ~~sales~~the ~~was~~aforementioned ~~$21.4 million, $12.2 million~~changes ~~and $9.9 million~~ in ~~fiscal~~revenues ~~years 2003, 2002~~ and ~~2001~~expenses, ~~respectively.~~earnings ~~Higher sales volume related to~~from ~~moving~~ operations ~~support~~decreased ~~items contributed~~ to ~~the~~$235.5 ~~increases~~million infor ~~both~~ fiscal ~~years~~ ~~2003~~2007, ~~and~~compared ~~2002 along~~ with ~~the~~$305.4 million ~~addition~~for offiscal ~~new locations~~2006.

Interest ~~Depreciation~~ expense, ~~net~~for fiscal 2007 was $2189.4 7 million, compared with $15105.1 million ~~and~~in fiscal ~~$12~~2006.~~4 million~~ The interest expense related to the increase in average borrowings was partially offset by a reduction in the average borrowing rate resulting from the refinancing activities in fiscal ~~years~~2006. ~~2003,~~The second quarter of fiscal 2007 ~~2002~~ included ~~and~~a ~~2001~~one-time, ~~respectively~~non-recurring charge of $7.0 ~~The~~million ~~increase~~before istaxes ~~attributed~~related to the full amortization of deferred debt issuance costs related to the Real ~~acquisition~~ Estate Loan that was amended. The refinancing related charge had the effect of decreasing ~~new~~on ~~locations~~a non-recurring basis, earnings for the year ended March 31, 2007 by $0.33 per share before taxes, in which the tax effect was approximately $0.13 per share. Fiscal 2006 results included a one-time, non-recurring charge of $35.6 million before taxes which includes fees for early extinguishment of debt of $21.2 million and the write-off of $14.4 million of debt issuance costs. The refinancing costs had the effect of decreasing, on a non-recurring basis, earnings for the year ended March 31, 2006 by $1.71 per share before taxes, in which the tax effect was approximately $0.63 per share.

Income ~~Earnings~~ tax ~~from~~expense ~~operations~~was ~~were~~ $6855.~~8 million, $41.7 million~~3 ~~and $38.9~~ million in fiscal ~~years 2003~~2007, ~~2002~~ ~~and~~compared ~~2001,~~with ~~respectively~~$79.1 ~~The~~million ~~increase is due to the addition~~in of fiscal ~~locations~~2006.

Dividends ~~Interest~~ accrued ~~expense~~on ~~before~~our ~~intercompany~~Series ~~elimination was~~A ~~$81.2 million,~~preferred ~~$61.1 million~~stock ~~and~~ were $5313.5 0 million in both fiscal ~~years 2003, 2002~~ 2007 and ~~2001~~2006, respectively. ~~The average debt level outstanding continued to increase due to the acquisition of storage properties in fiscal year 2002 compared to fiscal year 2001.~~

~~Pretax losses before intercompany eliminations were $12.4 million, $19.4 million, and $14.6 million for the fiscal years 2003, 2002, and 2001, respectively.~~ 25

~~Real~~As a result ~~Estate~~of ~~Operations~~the above mentioned items, net earnings available to common shareholders were $77.6 million in fiscal 2007, compared with $108.2 million in fiscal 2006.

The ~~Rental~~ weighted ~~revenue,~~average ~~before~~common ~~intercompany~~shares ~~eliminations, were~~outstanding: ~~$59.2 million,~~basic ~~$68.2 million~~ and ~~$72.0 million~~ indiluted ~~fiscal~~were ~~years 2003~~20, ~~2002 and 2001~~838,570 ~~respectively. Intercompany rental revenue was $56.2 million. $64.3 million and $71.1 million~~ in fiscal ~~years~~2007 ~~2003, 2002~~ and ~~2001~~20,857,108 ~~respectively. The decrease~~ in fiscal ~~years 2003 and 2002 is related to the sale of properties to SAC Holdings~~2006.

Basic ~~Net investment~~ and ~~interest income was~~ ~~$10.7 million,~~ diluted ~~$8.3 million~~earnings ~~and~~per ~~$11.0 million~~share in fiscal ~~years~~2007 ~~2003~~were $3.72, ~~2002~~compared ~~and~~with ~~2001, respectively~~$5.19 ~~The increase~~ in fiscal ~~2003 is related to increased investments in mortgage notes~~2006. ~~The decline in 2002 was due to a reduction in mortgage notes.~~

Fiscal ~~Operating~~ 2006 ~~(income)~~Compared ~~expenses,~~with ~~before~~Fiscal ~~intercompany eliminations, were $(5.5) million, $(4.4) million and $0.5 million in fiscal years 2003, 2002 and 2001, respectively.~~ 2005

Listed ~~Lease~~ below ~~expense~~on ~~before~~a ~~intercompany~~consolidated ~~eliminations, for~~basis ~~real~~are ~~estate~~revenues ~~operations~~for ~~was~~our ~~$14.2 million, $11.2 million~~major ~~and~~product ~~$11.6 million~~lines for ~~the fiscal years~~ ~~2003, 2002 and 2001, respectively. The increase in~~ fiscal ~~year 2003~~2006 ~~was due to more properties under lease~~ and ~~the default lease rates on three multi-property leases. The lease expense in~~ fiscal ~~year 2002 was virtually unchanged over the fiscal year 2001.~~ 2005:

Depreciation expense, net, was $5.2 million, $(2.0) million and $5.3 million in fiscal years 2003, 2002 and 2001, respectively. The increase in depreciation expense in 2003 was due to no gains from the disposition of surplus real estate. The decrease in fiscal years 2002 reflects an increase in gains from the disposition of property, plant and equipment.

	Year Ended March 31,
	2006		2005
	(In thousands)
Self-moving equipment rentals	$	1,503,569	$	1,437,895
Self-storage revenues		119,742		114,155
Self-moving and self-storage product and service sales		223,721		206,098
Property management fees		21,195		11,839
Life insurance premiums		118,833		126,236
Property and casualty insurance premiums		26,001		24,987
Net investment and interest income		53,094		56,739
Other revenue		40,471		30,172
Consolidated revenue	$	2,106,626	$	2,008,121

During ~~Earnings~~ fiscal ~~from operations~~2006, ~~before~~self-moving ~~intercompany eliminations,~~equipment ~~were~~rentals ~~$56.0 million,~~increased $~~71.9 million and $~~65.7 million with increases in ~~fiscal~~truck, ~~years 2003~~trailer, ~~2002~~ and ~~2001, respectively~~support rental items. The ~~decline~~increases inare ~~earnings from operations in fiscal~~due ~~year~~ to improved ~~2003~~equipment ~~was~~utilization, ~~due~~pricing, toand aproduct ~~reduction~~mix inthat ~~rental~~included ~~revenues and an~~the ~~increase~~ introduction inof ~~lease~~approximately ~~expense.~~15,500 ~~The~~new ~~increase~~trucks in fiscal ~~year~~2006. ~~2002~~In ismost cases, ~~mainly~~ these ~~related~~trucks toreplaced ~~lower~~older ~~operating~~trucks ~~costs~~rotated ~~and~~out ~~expenses, and gains recorded on sales~~ of ~~surplus~~the ~~properties~~fleet.

Self-storage ~~Interest~~ revenues ~~expense~~increased ~~was~~ $235.~~7 million, $34.3 million~~6 ~~and $44.3~~ million for fiscal ~~years 2003~~2006, ~~2002~~ ~~and~~compared ~~2001,~~with ~~respectively.~~fiscal ~~Declining intercompany loan~~2005 ~~balances~~ as occupancy ~~and declining~~ rates ~~led~~increased toperiod ~~the~~over ~~overall decline in interest expense for fiscal years 2003 and 2002~~period.

Sales ~~Pretax~~ of self-moving ~~earnings~~and ~~before~~self-storage ~~intercompany~~products ~~eliminations were~~and ~~$32.4 million,~~service sales increased $3717.6 ~~million~~ ~~and $21.5~~ million for ~~the~~fiscal 2006, compared with fiscal ~~years~~2005 ~~ended~~generally ~~March 31,~~following the growth in ~~2003~~ self-moving equipment rentals. Support sales items, ~~2002~~hitches, and ~~2001,~~propane ~~respectively.~~all had increases for the year.

~~Property~~RepWest continued ~~and~~to ~~Casualty~~exit from non U-Haul related lines of business. However, premium revenues increased $1.0 million for fiscal 2006, compared with fiscal 2005 due to increases in retrospective premiums related to U-Haul business in fiscal 2006. Additionally, fiscal 2005 included the commutation of a non U-Haul related reinsurance contract reducing premium revenues.

Oxford’s ~~Premium~~ premium revenues, ~~before~~declined ~~intercompany eliminations, were~~ $~~152~~7.~~6 million,~~4 ~~$262.0~~ million ~~and $226.1 million~~primarily ~~for~~as ~~the~~a ~~years~~result ~~ended~~of ~~December 31,~~decreased ~~2002,~~credit ~~2001~~ and ~~2000,~~Medicare ~~respectively.~~supplement ~~General agency premiums were $66.0 million~~business, ~~$107.4 million~~offset ~~and~~by ~~$64.3 million for~~growth ~~the~~in ~~years~~life ~~ended December 31, 2002, 2001 and 2000,~~insurance premiums.

23Net investment and interest income decreased $3.6 million for fiscal 2006, compared with fiscal 2005 due primarily to declining invested asset balances at the insurance companies.

~~Table~~As a result of ~~Contents~~the items mentioned above, revenues for AMERCO and its consolidated entities were $2,106.6 million for fiscal 2006, compared with $2,008.1 million for fiscal 2005.

respectively. The decrease in 2002 from 2001 is due to the run-off of RepWest’s Non-Standard Auto business which was cancelled in 2001, as well as increased quota share reinsurance on the trucking program. The increase in 2001 from 2000 was due to trucking, commercial lines business, and the non-standard auto program, which was cancelled in 2001. Assumed treaty reinsurance premiums were $34.9 million, $73.0 million and $83.2 million for the years ended December 31, 2002, 2001 and 2000, respectively. The decrease in 2002 from 2001 is due to the non-renewal and cancellation of the assumed treaty business. Rental industry revenues were $32.6 million, $47.5 million and $51.3 million for the years ended December 31, 2002, 2001 and 2000, respectively. The decrease in 2002 from 2001 was due to a change in policy structure on U-Haul business effective April 1, 2002. Under the new policy U-Haul is now responsible for losses from $0 — $2,000,000 per occurrence. The increase from 2000 was the result of an increase in premiums of a retrospectively rated policy on the U-Haul industry liability policy. 26

Listed ~~Net~~ below ~~investment~~are ~~income~~revenues ~~was $22.3 million, $20.7 million~~ and ~~$25.5 million~~earnings ~~for~~(loss) ~~the years ended December 31, 2002, 2001 and 2000, respectively. The increase in 2002~~ from ~~2001~~operations isat ~~due~~each toof ~~increased~~our ~~earnings on real~~four ~~estate~~ operating ~~offset~~segments byfor afiscal ~~decrease~~2006 inand ~~income~~fiscal on2005; ~~fixed~~for ~~maturities~~the ~~due~~insurance tocompanies ~~lower~~ years ~~average~~ended ~~invested~~are ~~assets.~~December ~~The decrease in 2001 from 2000 is due to lower invested asset balances~~31, ~~lower~~2005 ~~interest~~and ~~rates, as well as the write down of $4.1 million of fixed maturity investments during 2001.~~ 2004:

Operating expenses, before intercompany eliminations, were $37.0 million, $77.2 million and $56.5 million for the years ended December 31, 2002, 2001 and 2000, respectively. The decrease in 2002 from 2001 is due to decreased commission expense on decreased premium writings. The increase in 2001 from 2000 is due to a change in estimate on an aggregate stop loss treaty in which RepWest had originally recorded the treaty as if it would be commuted. Estimates in 2001 have changed and the treaty was not commuted. The original amount was a reduction to commissions of $17.7 million of which RepWest had to recognize as additional commission expense in 2001. Commission expenses were $13.9 million, $51.2 million and $33.1 million for the years ended December 2002, 2001 and 2000, respectively. Lease expenses were $1.1 million, $1.7 million and $2.1 million for the years ended December 2002, 2001 and 2000, respectively. All other underwriting expenses were $22.0 million, $24.3 million and $21.3 million for the years ended December 2002, 2001 and 2000, respectively.

	Year Ended March 31,
	2006			2005
	(In thousands)
Moving and storage
Revenues	$	1,900,468		$	1,791,667
Earnings from operations		292,774			165,985
Property and casualty insurance
Revenues		37,358			41,417
Earnings (loss) from operations		1,144			(14,814	)
Life insurance
Revenues		148,080			159,484
Earnings from operations		13,933			2,065
SAC Holding II
Revenues		46,239			43,172
Earnings from operations		13,643			10,466
Eliminations
Revenues		(25,519	)		(27,619	)
Earnings (loss) from operations		(16,113	)		3,294
Consolidated Results
Revenues		2,106,626			2,008,121
Earnings from operations		305,381			166,996

Total ~~Benefits~~ costs and ~~losses~~expenses ~~incurred~~decreased ~~were~~ $~~128~~39.7 9 million for fiscal 2006, ~~$255~~compared with fiscal 2005.~~8 million~~ Total costs and expenses for both insurance companies decreased $~~211~~43.3 ~~million~~ ~~for~~ million ~~the~~due ~~years~~primarily ~~ended~~to ~~December 31,~~reductions ~~2002,~~in ~~2001~~benefits and ~~2000,~~losses. Fiscal 2005 included ~~respectively~~ a $10.6 ~~The~~million ~~decrease~~charge infor ~~2002~~litigation ~~from~~at ~~2001~~Oxford isnot ~~due~~present toin ~~decreased~~fiscal 2006. ~~earned~~ Increases ~~premiums~~ in ~~all~~operating ~~segments~~costs ofassociated ~~RepWest’s~~with the improved business. ~~The~~volume at ~~increase~~ Moving inand ~~2001~~Storage towere ~~2000~~offset ~~was~~by ~~due~~reductions toin ~~increased~~repair ~~earned~~and ~~premium~~maintenance inexpenses ~~three~~ related ~~general~~to ~~agency~~rotating ~~programs~~the ~~and~~fleet. ~~reserve~~Trucks ~~strengthening~~with inhigher ~~the~~maintenance costs are being ~~assumed~~ replaced ~~reinsurance~~by ~~treaty~~new ~~segment~~trucks with lower initial maintenance costs.

In ~~Amortization~~ our second quarter of ~~deferred~~fiscal ~~acquisition costs was $17.3 million~~2006, ~~$22.1 million~~hurricanes Katrina and ~~$16.6 million~~Rita struck the Gulf ~~for~~ Coast of the ~~years~~United ~~ended~~States ~~December 31,~~causing ~~2002,~~business ~~2001~~interruption ~~and~~to ~~2000,~~a number of our operating ~~respectively~~ facilities. ~~The~~We ~~decrease~~identified incustomers ~~2002~~impacted ~~from~~by ~~2001~~the ishurricanes ~~due~~and our rapid response teams provided a variety of solutions to divert operations to alternate ~~RepWest’s~~ facilities ~~decreased~~and ~~premium~~restore ~~writings~~operations where possible. ~~The~~We ~~increase~~lost inapproximately ~~2001~~150 ~~from~~ trucks ~~2000~~and is150 ~~due~~trailers during and after the devastation caused by these hurricanes. We maintain property and business interruption insurance coverage to mitigate the ~~amortization~~financial impact of ~~higher~~these ~~commissions~~types of catastrophic events. Our ~~deferred~~ insurance deductible is $500,000 and was recorded in ~~the~~our ~~2000 year.~~second quarter of fiscal 2006.

During ~~Pretax~~ fiscal ~~losses~~2006, ~~from~~the ~~operations~~Company ~~were~~ received insurance proceeds of $84.0 8 million, ~~$72.4 million~~of ~~and~~this amount $324.9 5 million ~~for the~~was ~~years~~applied ~~ended~~to ~~December 31,~~the ~~2002,~~losses ~~2001~~incurred on trucks and ~~2000,~~trailers ~~respectively~~ and $0.3 ~~The~~million ~~decrease~~was inapplied ~~losses~~to inthe ~~2002~~losses ~~from~~sustained ~~2001~~at isoperating ~~due to~~facilities. ~~RepWest~~ The ~~exiting~~net ~~multiple~~book ~~unprofitable~~value ~~lines~~ of ~~business~~the astrucks ~~well as~~and ~~reduced~~trailers ~~expenses.~~lost ~~The~~during ~~increase~~the in2005 ~~losses in 2001 from 2000~~hurricanes ~~was~~ approximates ~~due~~$1.1 tomillion. ~~the~~Additional ~~increase~~insurance inrecoveries ~~earned~~are ~~premium~~expected ~~from unprofitable~~as ~~lines,~~ facilities ~~increased~~are ~~commissions~~fully ~~due~~restored ~~to the commutation write-off, reserve strengthening,~~ and ~~development~~claims inare ~~older years on the assumed treaty reinsurance business~~filed.

~~Life~~As a result ~~Insurance~~of the aforementioned changes in revenues and expenses, earnings from operations improved to $305.4 million for fiscal 2006, compared with $167.0 million for fiscal 2005.

Interest ~~Premium~~ expense ~~revenues,~~for ~~before~~fiscal ~~intercompany eliminations,~~2006 ~~were~~was $~~161~~105.4 1 million, compared with $~~159~~73.4 2 million ~~and~~in ~~$112~~ fiscal 2005.~~6 million~~ ~~for~~Fiscal ~~the~~2006 ~~years~~results ~~ended~~included ~~December 31,~~a ~~2002~~one-time, non-recurring charge ~~2001~~ of $35.6 ~~and~~million ~~2000,~~before ~~respectively.~~taxes ~~Oxford~~which ~~increased~~includes ~~Medicare supplement~~fees ~~premiums~~for ~~through~~early ~~direct~~extinguishment ~~writings~~of debt of $21.2 million and the ~~acquisition~~ write-off of ~~Christian~~$14.4 ~~Fidelity~~million ~~Life~~of ~~Insurance~~debt ~~Company~~issuance costs. ~~(“CFLIC”);~~ The expense ~~these~~related ~~actions~~to ~~increased~~the ~~premiums~~increase in average borrowings was partially offset by a ~~$6.3 million~~ reduction ~~from~~in ~~2001~~the ~~and~~average ~~$54.5 million~~borrowing ~~from~~rate ~~2000. Premiums~~resulting from ~~Oxford’s~~the ~~life~~refinancing activities ~~insurance~~in ~~lines~~fiscal ~~increased $2~~2006.~~5 million~~ ~~from~~The ~~2001~~refinancing ~~and~~costs ~~$3.7 million~~had ~~from~~the ~~2000.~~effect of decreasing, ~~Credit~~ on ~~life~~a ~~and~~non-recurring ~~disability~~basis, ~~premiums~~earnings ~~decreased~~for the year ended March 31, 2006 by $21.~~9 million~~71 ~~from~~ per ~~2001~~share ~~and~~before taxes, in which the tax effect was approximately $60.~~6 million~~63 per share.

24 27

~~Table~~During the third quarter of ~~Contents~~fiscal 2005, the Company settled our litigation against our former auditor and received a settlement (net of attorneys’ fees and costs) of $51.3 million before taxes. The settlement had the effect of increasing, on a non-recurring basis, earnings for the year ended March 31, 2005 by $2.47 per share before taxes, in which the tax effect was approximately $0.91 per share.

Income ~~from~~ tax ~~2000~~expense ~~due~~was ~~to account cancellations in specific states and decreased penetration. Annuitizations decreased by~~ $079.~~7 million~~1 ~~from 2001 and $2.6~~ million ~~from~~ ~~2000.~~in ~~Other~~fiscal ~~health~~2006, ~~insurance~~compared ~~premiums~~with ~~decreased~~ $355.~~2 million~~7 ~~from 2001 and decreased $0.2~~ million ~~from~~in ~~2000~~ fiscal ~~due to termination of major medical programs~~2005.

Dividends ~~Net~~ accrued ~~investment~~on ~~income~~our ~~before~~Series ~~intercompany eliminations~~A ~~was~~preferred ~~$13.9 million,~~stock ~~$23.2 million,~~were ~~and~~ $1913.0 million ~~for~~in ~~the~~both ~~years~~fiscal ~~ended December 31, 2002,~~2006 ~~2001,~~ and ~~2000. The change in 2002 from 2001 is due to lower interest rates~~2005, ~~larger short-term balances and write-downs for other than temporary declines in the investment portfolio~~respectively. ~~The increase between 2001 and 2000 is primarily due to write-downs for other than temporary declines in the investment portfolio in 2000.~~

As ~~Operating expenses were $40.5 million,~~ a ~~$37.5 million~~ result ~~and~~of ~~$29.4 million for~~ the ~~years~~above ~~ended December 31,~~mentioned ~~2002~~items, ~~2001~~net ~~and~~earnings ~~2000,~~available ~~respectively.~~to ~~Commissions~~common ~~have~~ shareholders ~~increased~~were $1108.~~0 million~~2 ~~from 2001 and $4.9~~ million ~~from~~ ~~2000, primarily due to the increases~~ in ~~Medicare~~fiscal ~~supplement premiums.~~2006, ~~General~~compared ~~and~~with ~~administrative expenses net of fees collected increased~~ $276.~~1 million~~5 ~~from 2001 and $6.3~~ million ~~from 2000. The acquisition of CFLIC resulted~~ in fiscal $32005.~~3 million of the increase from 2000.~~

The ~~Benefits~~ weighted ~~incurred~~average ~~were~~common ~~$115.6 million, $120.9 million~~shares ~~and~~outstanding: ~~$79.2 million~~basic ~~for~~and ~~the~~diluted ~~years~~were ~~ended December 31~~20, ~~2002~~857, ~~2001 and 2000. Medicare supplement~~108 ~~benefits decreased $1.8 million from 2001 primarily due to~~ in ~~decreased~~ fiscal ~~exposure~~2006 and ~~improved experience~~20,804,773 and increased $36.8 million from 2000 due to the acquisition of CFLIC. Credit insurance benefits decreased $1.7 million from 2001 and $1.2 million from 2000 due to decreased exposure. Benefits from other health lines decreased $4.1 million from 2001 and $.5 million from 2000 due to the termination of major medical programs. Annuity and life benefits increased $2.3 million from 2001 and $1.3 million from 2000 due to increases in ~~life~~fiscal ~~insurance exposure~~2005.

Basic ~~Amortization~~ and diluted ofearnings ~~deferred~~per ~~acquisition~~share ~~costs~~in ~~(DAC) and~~fiscal ~~the~~2006 ~~value~~were ~~of business acquired (VOBA) was~~ $~~20.~~5 ~~million, $18~~.~~6 million and $~~19~~.6 million for 2002~~, ~~2001~~compared ~~and~~with ~~2000~~$3.68 ~~These costs are amortized for life and health policies as the premium is earned over the term of the policy; and for deferred annuities, amortized~~ in ~~relation to~~ ~~interest~~ fiscal ~~spreads~~2005. ~~Amortization increased $1.9 million and $0.9 million from 2001 and 2000 due to the annuity and credit segments.~~

Pretax earnings (losses) before intercompany eliminations were $(1.4) million, $5.6 million and $3.4 million for the years ended December 31, 2002, 2001 and 2000, respectively. The decrease from 2001 is primarily due to other than temporary declines in the investment portfolio and poor experience in the credit insurance lines. The increase from 2000 is due to realized gains in the investment portfolio. 28

Moving ~~Consolidated~~ and ~~Group Earnings~~ Storage

Fiscal As 2007 aCompared ~~result~~with ofFiscal the foregoing, pretax losses were $38.9 million, $67.3 million and $64.7 million in fiscal years 2003, 2002 and 2001, respectively. After providing for income taxes, losses were $25.0 million, $47.4 million and $42.1 million in fiscal years 2003, 2002 and 2001 respectively. On a combined basis SAC Holdings and RepWest accounted for $14.1 million, $62.7 million and $32.4 million of the total losses for fiscal years 2003, 2002 and 2001 respectively. 2006

Listed ~~Going~~ below ~~Concern~~are revenues for the major product lines at our Moving and Storage Operating Segment for fiscal 2007 and fiscal 2006:

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the continuity of the Company’s operations and realization of its assets and payments of its liabilities in the ordinary course of business. As more fully described in Note 1 to the consolidated financial statements, on June 20, 2003, AMERCO, the parent corporation, filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. Amerco Real Estate Company filed a voluntary petition for relief under Chapter 11 on August 13, 2003. The uncertainties inherent in the bankruptcy process raise substantial doubt about AMERCO’s ability to continue as a going concern. AMERCO is currently operating its business as a debtor-in-possession under the jurisdiction of the bankruptcy court, and continuation of the Company as a going concern is contingent upon, among other things, the confirmation of a plan of reorganization, the Company’s ability to comply with all debt covenants

	Year Ended March 31,
	2007		2006
	(In thousands)
Self-moving equipment rentals	$	1,476,579	$	1,503,569
Self-storage revenues		106,498		100,873
Self-moving and self-storage product and service sales		208,677		207,119
Property management fees		23,951		23,988
Net investment and interest income		34,161		30,025
Other revenue		25,994		34,894
Moving and Storage revenue	$	1,875,860	$	1,900,468

25During fiscal 2007, self-moving equipment rentals decreased $27.0 million, compared with fiscal 2006 with the majority of the variance occurring during the second half of the year. The Company finished fiscal 2007 with increases in one-way transactions along with increases in the average inventory of the entire fleet. However, offsetting these factors were a decrease in average revenue per transaction primarily due to one-way pricing, the lack of certain mid-size trucks during the spring and summer months of fiscal 2007 and decreased fleet utilization. The Company’s response to competitive pricing issues has further lowered self-moving rental revenues. The Company now has a better inventory of certain mid-size trucks and is attempting to improve revenue per transaction; however, if these issues continue our revenues may continue to be negatively impacted in the future.

~~Table~~Self-storage revenues increased $5.6 million for fiscal 2007, compared with fiscal 2006 primarily due to improved pricing. The Company has increased the number of rooms and ~~Contents~~square footage available period over period through the expansion of existing facilities and the acquisition of new facilities.

Other ~~under~~ revenues ~~the~~decreased ~~existing debtor-in-possession financing arrangement, and obtaining financing sources to meet its future obligations~~$8.9 Ifmillion afor ~~reorganization~~fiscal ~~plan is not approved~~2007, itcompared ~~is possible~~with ~~some~~fiscal ~~assets of the Company may be liquidated~~2006. ~~Management’s~~ Fiscal ~~plans~~2006 inincluded ~~regards~~several tonon-recurring ~~these matters are also described in Note 1~~items. ~~The~~Net ~~consolidated~~investment ~~financial~~and ~~statements~~interest do income ~~not~~increased ~~include~~$4.1 ~~any~~million ~~adjustments~~primarily due to ~~reflect~~increases ~~future~~in ~~effects~~interest on ~~the~~invested ~~recoverability~~ cash and ~~classification~~higher ofinterest ~~assets or the amount and classification of liabilities that might result from the outcome of these uncertainties~~rates.

The ~~Liquidity~~ Company owns and ~~Capital~~manages ~~Resources~~self-storage facilities. Self-storage revenues reported in the consolidated financial statements for Moving and Storage represent Company-owned locations only. Self-storage data for our owned storage locations is as follows:

The matters described in “Liquidity and Capital Resources” to the extent that they relate to future events or expectations, may be significantly affected by the Chapter 11 case. That proceeding will involve, or may result in, various restrictions on the Company’s activities, limitations on financing, the need to obtain Bankruptcy Court approval for various matters and uncertainty as to relationships with vendors, suppliers, customers and others with whom the Company may conduct or seek to conduct business.

	Year Ended March 31,
	2007			2006
	(In thousands, except occupancy rate)
Room count as of March 31		127			123
Square footage as of March 31		10,062			9,592
Average number of rooms occupied		108			107
Average occupancy rate based on room count		86.6	%		87.9	%
Average square footage occupied		8,653			8,516

Total ~~Generally,~~ costs ~~under~~and ~~the~~expenses ~~Bankruptcy~~increased ~~Code,~~$50.3 ~~most~~million offor ~~a debtor’s~~fiscal ~~liabilities~~2007, ~~must~~compared bewith ~~satisfied~~fiscal 2006. inIncreases ~~full~~ in ~~order~~depreciation, ~~to preserve~~lease, ~~the~~licensing ~~value of the debtor’s preferred~~ and ~~common stock.~~freight ~~The~~costs ~~rights and claims of the Company’s various~~resulting ~~creditors~~ from ~~and security holders will be determined by~~ the ~~plan~~acquisition of ~~reorganization~~ tonew betrucks ~~filed by AMERCO. Although AMERCO expects to file~~ and ~~consummate a “full value” plan of reorganization that provides creditors with a combination of cash and new debt securities equal to~~ the ~~full~~rotation ~~amount~~ of ~~their allowed claims and also preserves~~ the ~~value~~fleet ofwere ~~AMERCO’s~~partially ~~common~~ offset ~~and~~by ~~preferred~~reductions ~~stock, no assurance can be given as to what values, if any, will be ascribed~~ in ~~the~~maintenance ~~bankruptcy~~and ~~proceedings to each of these constituencies~~repair.

As ~~The~~ a result ~~Company’s~~of ~~total~~the ofabove ~~cash,~~mentioned ~~cash equivalents~~changes in revenues and ~~short-term~~expenses, ~~investments~~earnings ~~was~~from operations decreased to $66217.8 9 million ~~at March 31,~~in ~~2003~~fiscal 2007, compared towith $41292.4 8 million ~~at March 31,~~for ~~2002~~fiscal 2006.

To meet the needs of its customers, U-Haul must maintain a large inventory of fixed asset rental items. In fiscal year 2003, capital expenditures were $182.4 million, as compared to $248.7 million and $411.9 million in fiscal years 2002 and 2001, respectively. These expenditures primarily reflect the renewal of the rental truck fleet. The capital required to fund these expenditures was obtained through internally generated funds from operations and lease financings. 29

Fiscal ~~During each of the fiscal years ending March 31, 2004, 2005 and~~ 2006, ~~U-Haul~~Compared ~~estimates gross capital expenditures will average approximately $150 million to maintain the rental fleet at current levels. This level of capital expenditures, combined~~ with ~~a potential~~Fiscal level of debt amortization of approximately $100 million, are expected to create average annual funding needs of approximately $250 million. Management estimates that U-Haul will fund these requirements entirely with internally generated funds and proceeds from the sale of trucks and surplus assets. The level of capital expenditures will be dependent upon the amount of internally generated funds and proceeds from the sale of assets. 2005

~~DIP~~Listed below ~~Facility~~are revenues for our major product lines at our Moving and Storage Operating Segment for fiscal 2006 and fiscal 2005:

Reference is made to Note 1 (Going Concern Basis) to the Consolidated Financial Statements regarding the DIP facility. The DIP Facility consists of a $300 million credit facility with an interest rate option of LIBOR plus 3.5% or the prime rate plus 1.0%. The DIP Facility will mature on the earlier of (i) 12 months following the Bankruptcy Court’s order approving the facility; (ii) ten days following the date of entry of an order confirming AMERCO’s plan of reorganization; and (iii) the conversion of the Chapter 11 case to a case under Chapter 7. In order to facilitate a drawing on the DIP Facility, Real Estate filed for Chapter 11. This filing was needed to facilitate granting security to the lending group in the real estate assets owned by Real Estate. The DIP Facility was approved on an interim basis by the Bankruptcy Court on August 14, 2003.

	Year Ended March 31,
	2006		2005
	(In thousands)
Self-moving equipment rentals	$	1,503,569	$	1,437,895
Self-storage revenues		100,873		96,202
Self-moving and self-storage product and service sales		207,119		191,078
Property management fees		23,988		14,434
Net investment and interest income		30,025		29,902
Other revenue		34,894		22,156
Moving and Storage revenue	$	1,900,468	$	1,791,667

During ~~The~~ fiscal ~~terms~~2006, ofself-moving ~~the~~equipment ~~DIP~~rentals ~~Facility~~increased ~~include~~$65.7 ~~covenants~~million with ~~that~~ increases ~~require~~in ~~AMERCO~~truck, ~~to maintain agreed upon minimum levels of EBITDA~~trailer, ~~EBITDAR~~ and ~~fixed~~support ~~charge~~rental ~~coverage ratios~~items. The ~~DIP~~increases are due ~~Facility~~ to improved ~~also~~equipment ~~contains~~utilization, apricing, ~~limitation~~and onproduct ~~capital~~mix ~~expenditures.~~that ~~All~~included the ~~such~~ introduction ~~financial~~of ~~covenants~~approximately ~~will~~15,500 benew ~~tested~~trucks ~~quarterly~~in fiscal 2006. ~~Other~~In most cases, ~~customary~~ these ~~covenants~~trucks ~~(both~~replaced ~~positive~~older ~~and~~trucks ~~negative)~~rotated ~~are~~out ~~included~~of in the ~~DIP Facility~~fleet.

26Self-storage revenues increased $4.7 million for fiscal 2006, compared with fiscal 2005 generally in line with the increases in occupancy rates. Average occupancy based on room count has increased 5.5% in fiscal 2006, compared with fiscal 2005.

~~Table~~Sales of self-moving and self-storage products and service increased $16.0 million for fiscal 2006, compared with fiscal 2005. Retail sales generally increase in line with moving equipment rentals. In fiscal 2006 we have seen increases beyond this trend due to improved customer demand for towing accessories and propane. U-Haul is the largest single retail provider of ~~Contents~~towing accessories in the United States through our Company owned and managed locations. The Company continues to improve its visibility as a provider of propane and towing accessories.

The ~~Credit~~ Company owns and manages self-storage facilities. Self-storage revenues reported ~~Agreements~~ in the consolidating financial statements for Moving and Storage represent Company-owned locations only. Self-storage data for our owned storage locations is as follows:

Reference is made to Note 1 (Going Concern Basis) to the Consolidated Financial Statements regarding defaults of our credit and financing arrangements.

	Year Ended March 31,
	2006			2005
	(In thousands, except occupancy rate)
Room count as of March 31		123			127
Square footage as of March 31		9,592			10,003
Average number of rooms occupied		107			108
Average occupancy rate based on room count		87.9	%		82.4	%
Average square footage occupied		8,516			8,514

Total ~~AMERCO’s~~ costs ~~operations~~and ~~were~~expenses ~~previously~~increased ~~funded by~~$2.7 ~~various~~million ~~credit~~for ~~and~~fiscal ~~financing arrangements~~2006, ~~including unsecured~~compared ~~long-term~~with ~~borrowings,~~fiscal 2005. ~~unsecured~~Commissions ~~medium~~on self-~~term~~moving ~~notes~~equipment rentals and ~~revolving~~ ~~lines~~cost of ~~credit~~sales ~~with~~increased in ~~domestic~~proportion ~~and~~to ~~foreign~~the ~~banks~~related revenues. ~~To finance~~Operating ~~its~~expenses ~~fleet~~decreased of$26.1 million ~~trucks~~for ~~and~~fiscal ~~trailers~~2006, ~~U-Haul~~compared ~~routinely~~with fiscal 2005. Increases in operating ~~enters~~ costs associated ~~into~~with ~~sale~~the improved business volume were more than offset by reductions in repair and ~~leaseback~~maintenance ~~transactions~~expenses related to rotating the fleet. AsTrucks ofwith ~~March 31,~~ higher ~~2003,~~maintenance ~~AMERCO~~costs ~~had~~are ~~$954~~being replaced by new trucks with lower initial maintenance costs.~~9 million~~ inOverall total ~~notes~~ cost and ~~loans~~expense ~~outstanding.~~increases were less than revenue increases for fiscal 2006.

Certain of AMERCO’s credit agreements contained restrictive financial and other covenants, including, among others, covenants with respect to incurring additional indebtedness, making third party guarantees, entering into contingent obligations, maintaining certain financial ratios and placing certain additional liens on its properties and assets and restricting the issuance of certain types of preferred stock AMERCO’s various credit and financing arrangements are affected by its credit ratings. When AMERCO experienced the credit downgrade, certain interest rates that were being charged were increased. 30

During On fiscal ~~October 15~~2006, ~~2002,~~the ~~AMERCO~~Company ~~failed~~received toinsurance ~~make~~proceeds ~~a $100 million~~of ~~principal payment due to the Series 1997-C Bond Backed Asset Trust~~$4.8 ~~On that date~~million, ~~AMERCO~~of this ~~also~~ amount ~~failed to pay a~~ $264.5 million ~~obligation~~was applied to ~~Citibank and Bank of America in connection with~~ the ~~BBATs.~~losses Asincurred aon ~~result~~trucks ~~of the~~and ~~foregoing, AMERCO is in default with respect to its other~~trailers ~~credit~~ and ~~arrangements that contain cross-default provisions, including its Revolver in the amount of~~ $~~205 million~~0.3 ~~In addition~~million towas ~~the~~applied ~~cross-default~~to ~~under~~ the ~~Revolver,~~losses ~~AMERCO~~sustained isat ~~also~~operating facilities. in The ~~default~~net ~~under~~book ~~that~~value ~~agreement as a result~~ of ~~its~~the ~~failure~~trucks ~~to obtain incremental net cash proceeds~~ and~~/or~~ ~~availability~~trailers ~~from additional~~lost ~~financings~~during in the ~~aggregate~~2005 ~~amount of at least~~hurricanes ~~$150 million~~ approximates ~~prior to October 15, 2002~~$1.1 ~~In addition, Amerco Real Estate Company has defaulted on a $100~~ million ~~loan by failing to grant mortgages required by the loan agreement in a timely manner~~. ~~The~~Additional ~~obligations~~insurance ofrecoveries ~~AMERCO currently~~are inexpected ~~default (either directly or~~ as facilities aare ~~result~~restored ofand ~~a cross-default)~~claims are ~~approximately $1,178~~filed.~~1 million.~~

As ~~Support~~ a ~~Agreements~~ result of the above mentioned changes in revenues and expenses, earnings from operations increased to $292.8 million in fiscal 2006, compared with $166.0 million for fiscal 2005.

In February 1997, AMERCO, through its insurance subsidiaries, invested in the equity of Private Mini. During 1997, Private Mini secured a line of credit in the amount of $225 million with a financial institution, which was subsequently reduced in accordance with its terms to $125 million in December 2001. Under the terms of this credit facility AMERCO entered into a support party agreement with Private Mini and the financial institution whereby upon certain defaults or noncompliance with debt covenants by Private Mini, AMERCO could be required to assume responsibility in fulfilling all payment obligations and certain covenant obligations related to this credit facility. Private Mini defaulted on the credit facility due to AMERCO’s default under the support party agreement, which support party agreement default was triggered by virtue of crossU-~~defaults to certain~~Haul ~~other AMERCO obligations. Additionally~~ International, ~~Private Mini defaulted under the credit facility by virtue of non-payment of the outstanding balance at maturity~~Inc. In December 2002, the financing institution exercised its option to require AMERCO to purchase all commitments under the credit facility. In March 2003 AMERCO and the financial institution entered into a standstill agreement with respect to this obligation, which standstill agreement expired by its terms on April 30, 2003. Since April 30, 2003, the financial institution has not re-issued any default notices to AMERCO with respect to this obligation or otherwise required AMERCO to purchase all commitments under the credit facility. AMERCO has not purchased any commitments under the credit facility and, as of March 31, 2003, AMERCO has recorded a liability for the $55 million remaining balance under the credit facility with a corresponding increase to its receivable from Private Mini.

Fiscal In 2007 ~~February~~Compared ~~2003, an entity affiliated~~ with ~~Private~~ ~~Mini~~Fiscal closed on a $255 million financing and $70 million of these proceeds were used to pay down the $125 million line of credit described above. The aggregate amount of support provided by AMERCO remains unchanged at $125 million ($55 million to the lenders under the Amended and Restated loan agreement with the 1997 lenders and $70 million under the new $255 million financing). Under the terms of the support party agreement for the $255 million financing, following certain events of default, AMERCO would assume responsibility for $70 million of the obligations 2006

27Listed below are revenues for the major product lines at U-Haul International, Inc. for fiscal 2007 and fiscal 2006:

	Year Ended March 31,
	2007		2006
	(In thousands)
Self-moving equipment rentals	$	1,476,579	$	1,503,569
Self-storage revenues		104,725		99,060
Self-moving and self-storage product and service sales		208,677		207,119
Property management fees		23,951		23,988
Net investment and interest income		29,294		24,894
Other revenue		31,403		39,303
U-Haul International, Inc. revenue	$	1,874,629	$	1,897,933

During ~~under~~ fiscal ~~this~~2007, ~~financing~~self-moving equipment rentals decreased $27.0 ~~AMERCO~~million, ~~has~~compared with ~~recorded~~fiscal a2006 with the majority of the variance occurring during the second ~~liability~~ half ~~for~~of the ~~$70 million~~year. ~~obligation~~The Company finished fiscal 2007 with increases in one-way transactions along with increases in the average inventory of the entire fleet. However, offsetting these factors were a decrease in average revenue per ~~corresponding~~ transaction ~~increase~~primarily due to ~~its~~one-way ~~receivable~~pricing, ~~from~~the ~~Private~~lack ~~Mini~~of certain mid-size trucks during the spring and summer months of fiscal 2007 and decreased fleet utilization. The Company’s response to competitive pricing issues has further lowered self-moving rental revenues. The Company now has a better inventory of certain mid-size trucks and is attempting to improve revenue per transaction; however, if these issues continue our revenues may continue to be negatively impacted in the future.

~~SAC~~Self-storage revenues ~~Holdings~~increased $5.7 million for fiscal 2007, compared with fiscal 2006 due largely to improved pricing. The Company has increased the number of rooms and square footage available period over period through the expansion of existing facilities and the acquisition of new facilities.

Sales ~~SAC Holdings intends to meet its current debt~~ of ~~obligations~~ self-moving ~~through~~and ~~cash~~self-storage ~~flows~~products ~~generated~~and ~~from~~service ~~its~~sales ~~operating activities.~~increased ~~SAC~~by ~~Holdings intends to continue to purchase storage~~$1.6 ~~properties~~ million ~~during~~for ~~the~~fiscal ~~next~~2007, ~~year~~compared ~~using~~with ~~financing~~fiscal ~~arrangements~~2006.

Total ~~Reference~~ costs and expenses increased $56.0 million for fiscal 2007, compared with fiscal 2006. This is ~~made~~primarily due to ~~Note~~increases 5in oflease ~~Notes~~and todepreciation expenses ~~Consolidated~~ related ~~Financial~~to ~~Statements~~the rotation of the rental fleet. Reductions in maintenance and repair expense were partially offset by the cost of re-imaging portions of the existing rental fleet along with freight and licensing costs.

~~U-HAUL~~As a result ~~Moving~~of the above mentioned changes in revenues and ~~Storage~~expenses, ~~Operations~~earnings from operations decreased to $162.4 million in fiscal 2007, compared with $241.7 million for fiscal 2006.

~~At March~~ 31, 2003, U-HAUL Moving and Storage notes and loans payable due in less than one year total $31.7 million and its accounts payable and accrued expenses total $283.6 million. U-HAUL Moving and Storage financial assets (cash, receivables, inventories, and short term investments) at March 31, 2003 were $117.6 million. These assets, if converted to cash, are available to meet the financial obligations of AMERCO.

~~SAC~~Fiscal 2006 ~~Moving~~Compared ~~and~~with ~~Storage~~Fiscal ~~Operations~~2005

Listed At below ~~March 31,~~are ~~2003,~~revenues ~~SAC~~for ~~Holdings~~the ~~notes~~major ~~and loans~~product ~~payable~~lines ~~due~~at inU-Haul ~~less than one year total $80.0 million and its accounts payable and accrued expenses total $48.0 million. SAC Holdings financial assets (cash~~International, ~~receivables,~~ ~~inventories, and short term investments) at March 31, 2003 were $8~~Inc.~~7 million. Because AMERCO does~~ ~~not have any equity ownership in SAC Holdings (other than~~ for ~~investments~~ fiscal ~~made~~2006 ~~by RepWest~~ and ~~Oxford~~fiscal ~~in a SAC Holdings-controlled limited partnership which holds Canadian self-storage properties), these assets are not available to meet the obligations of AMERCO.~~ 2005:

Real Estate Operations

	Year Ended March 31,
	2006		2005
	(In thousands)
Self-moving equipment rentals	$	1,503,569	$	1,437,895
Self-storage revenues		99,060		94,431
Self-moving and self-storage product and service sales		207,119		191,078
Property management fees		23,988		14,434
Net investment and interest income		24,894		22,030
Other revenue		39,303		27,489
U-Haul International, Inc. revenue	$	1,897,933	$	1,787,357

During At fiscal ~~March 31~~2006, ~~2003,~~self-moving ~~Real~~equipment ~~Estate~~rentals ~~had~~ increased $~~100~~65.0 7 million ofwith increases ~~notes and loans payable due~~ in ~~less~~truck, ~~than one~~trailer, ~~year~~ and ~~its~~support ~~accounts~~rental ~~payable~~items. ~~and~~The ~~accrued~~increases ~~expenses~~are ~~total~~due ~~$7.7 million.~~ to improved ~~Real~~equipment ~~Estate financial assets (cash~~utilization, ~~receivables,~~ ~~inventories~~pricing, and ~~short~~product ~~term~~mix ~~investments)~~that atincluded the ~~March 31,~~ introduction ~~2003~~of ~~were~~approximately ~~$18.9 million. These assets~~15,500 ~~if converted~~new totrucks ~~cash,~~in ~~are~~fiscal ~~available~~2006. toIn ~~meet~~most ~~the obligations of~~cases, ~~AMERCO~~ these totrucks ~~the~~replaced ~~extent~~older ~~such~~trucks ~~cash~~rotated ~~exceeds~~out ~~current obligations~~ of ~~Real~~ ~~Estate~~the fleet.

~~Property~~Self-storage revenues ~~and~~increased ~~Casualty~~$4.6 million for fiscal 2006, compared with fiscal 2005 generally in line with the increases in occupancy rates. Average occupancy based on room count has increased 5.5% in fiscal 2006, compared with fiscal 2005.

Sales At of self-moving ~~December 31,~~and ~~2002,~~self-storage ~~Property~~products and ~~Casualty had~~service nosales ~~notes~~increased ~~and~~$16.0 ~~loans~~million for ~~due~~fiscal in2006, ~~less~~compared ~~than~~with ~~one~~fiscal ~~year~~2005. ~~and~~Retail ~~its accounts~~sales ~~payable~~generally ~~and~~increase in line ~~accrued~~with ~~expenses~~moving ~~were~~equipment ~~$20~~rentals.2 ~~million. Property~~In ~~and~~fiscal ~~Casualty~~2006 ~~financial~~we ~~assets~~have ~~(cash,~~seen ~~receivables,~~increases beyond ~~inventories,~~ this ~~and~~trend ~~short~~due ~~term~~to ~~investments)~~improved atcustomer ~~December 31, 2002~~demand ~~were~~for ~~$361.4~~towing ~~million.~~accessories ~~Because~~and ofpropane. U-Haul ~~state~~is ~~insurance~~the ~~regulations that~~largest ~~restrict~~single ~~the~~retail ~~amount~~provider of ~~dividends~~towing ~~that~~accessories ~~can~~in bethe ~~paid to~~United ~~stockholders~~ States ofthrough ~~insurance~~our ~~companies,~~Company ~~these~~owned ~~assets~~and ~~are~~managed ~~generally not~~locations. ~~available~~The Company continues to improve ~~meet~~its ~~the~~visibility ~~obligations~~as a provider of ~~AMERCO.~~propane ~~Reference~~and istowing accessories. ~~made~~ Self-moving toand ~~“Management’s~~storage ~~Discussion~~related ~~and~~retail ~~Analysis~~products ~~of Financial~~continue ~~Condition~~to ~~and~~improve ~~Results~~as ofwe ~~Operations —~~have ~~Insurance~~ increased ~~Operations~~our product offerings.”

~~Life~~Total costs ~~Insurance~~and expenses increased $9.3 million for fiscal 2006, compared with fiscal 2005. Commissions on self-moving equipment rentals and cost of sales increased in proportion to the related revenues. Operating expenses decreased $15.1 million for fiscal 2006, compared with fiscal 2005. Increases in operating costs associated with the improved business volume were more than offset by reductions in repair and maintenance expenses related to rotating the fleet. Trucks with higher maintenance costs are being replaced by new trucks with lower initial maintenance costs. Depreciation expense increased $17.8 million for fiscal 2006, compared with fiscal 2005 primarily due to buy-outs of leases, new truck purchases and certain residual value adjustments on the rental trucks. The buy-outs of the leases are the primary reason for the $8.6 million decrease in lease expense for fiscal 2006, compared with fiscal 2005. Overall total cost and expense increases were less than revenue increases for fiscal 2006.

During At fiscal ~~December 31~~2006, ~~2002,~~the ~~Life~~Company ~~Insurance~~received ~~had~~insurance ~~no notes~~proceeds ~~and~~of ~~loans~~$4.8 ~~payable~~million, ~~due~~of ~~in less than one year and its~~this ~~accounts~~ amount ~~payable and accrued expenses total~~ $104.7 5 million~~. Life~~ ~~Insurance~~was ~~financial~~applied ~~assets~~to ~~(cash,~~the ~~receivables,~~losses ~~inventories, and~~incurred ~~short~~on ~~term~~trucks ~~investments)~~and ~~at December 31, 2002 were~~trailers and $~~870~~0.2 3 million. ~~Because~~was ofapplied ~~state~~to ~~insurance regulations that restrict~~ the ~~amount~~losses ofsustained ~~dividends~~at ~~that~~operating ~~can~~facilities. The benet ~~paid~~book ~~to stockholders~~value of ~~insurance~~the ~~companies,~~trucks ~~these~~and ~~assets~~trailers ~~are~~lost ~~generally not~~during ~~available to meet~~ the ~~obligations~~2005 ofhurricanes approximates ~~AMERCO~~$1.1 ~~Reference~~million. ~~is made~~Additional toinsurance ~~“Management’s~~recoveries ~~Discussion~~are ~~and~~expected ~~Analysis of~~as ~~Financial~~ facilities ~~Condition~~are ~~and~~fully ~~Results~~restored ofas ~~Operations — Insurance~~claims ~~Operations~~are filed.”

28As a result of the above mentioned changes in revenues and expenses, earnings from operations increased to $241.7 million in fiscal 2006, compared with $140.5 million for fiscal 2005.

~~Table of Contents~~32

~~Consolidated~~Republic Western ~~group~~Insurance Company

2006 At Compared ~~March 31,~~with ~~2003, total outstanding notes and mortgages payable for AMERCO and consolidated subsidiaries was $954.9 million compared to $1,045.8 million at March 31, 2002.~~ 2005

Net At premiums ~~March 31,~~were ~~2003,~~$24.3 ~~total~~million ~~outstanding notes~~ and ~~mortgages~~$26.0 ~~payable~~million for ~~SAC~~the ~~Holdings~~years ~~and~~ended ~~consolidated~~December ~~subsidiaries~~ 31, 2006 ~~before~~and ~~intercompany~~2005, ~~eliminations were $983~~respectively.~~2 million~~ asU-Haul ~~compared~~related topremiums were $~~961~~22.5 0 million atand ~~March 31, 2002, including amounts due to AMERCO of~~ $~~394~~20.2 million ~~and~~for ~~$399.6 million~~the atyears ~~March~~ ended December 31, ~~2003~~ 2006 and ~~2002~~2005, respectively. Other ~~SAC~~lines ~~Holdings’~~of ~~creditors~~business ~~have~~were ~~no recourse to AMERCO~~$2.3 ~~AMERCO~~million isand ~~not~~$5.8 ~~liable~~million for the ~~debts~~years ~~of SAC Holdings.~~ended ~~Further~~ December 31, ~~there~~2006 ~~are no cross default provisions on indebtedness between AMERCO~~ and ~~SAC~~2005, ~~Holdings~~respectively.

Net ~~Due~~ investment toincome ~~the~~was ~~defaults~~$14.2 million and ~~various~~$11.4 ~~cross~~million ~~defaults,~~ for the ~~consolidated~~years ~~group~~ended December ~~have notes~~31, ~~loans~~2006 and ~~lease~~2005, ~~obligations due and payable of $1~~respectively.~~2 billion.~~ The ~~group~~increase ~~also~~is ~~had accounts~~due ~~payable~~to ~~and~~an ~~accrued expenses of $411.9 million.~~increase ~~Liquid assets for the group totaled $511.2 million. AMERCO~~ in is short-term inrates ~~the~~and ~~process~~sale of ~~refinancing~~real ~~and restructuring its debt to meet its liquidity needs~~estate.

Benefits ~~Cash~~ and ~~Provided~~losses byincurred ~~Operating~~were $21.9 million and $22.6 million for the years ended ~~Activities~~ December 31, 2006 and 2005, respectively.

~~U-HAUL~~Amortization of ~~Moving~~deferred acquisition costs were $2.1 million and ~~Storage~~$2.9 ~~Operations~~million for the years ended December 31, 2006 and 2005, respectively. The decrease is due to decreased premium writings.

Operating ~~Cash~~ expenses ~~provided~~were ~~by operating activities was~~ $838.~~5 million,~~8 ~~$96.2~~ million and $~~106~~10.9 8 million in ~~fiscal~~for years ~~2003,~~ended ~~2002~~December 31, 2006 and ~~2001~~2005, respectively. The decrease in ~~2003~~is ~~was~~ due to a ~~decline~~reduction ~~in intercompany payables that was partially offset by an increase in depreciation~~ of ~~rental~~general ~~equipment.~~ administrative ~~The~~expenses ~~decrease in fiscal year 2002 from 2001 is~~ due to an ~~increase~~the inexit ~~earnings~~of ~~and~~the ~~offset~~non byU-Haul anlines ~~increase in other~~of ~~investments~~ business.

~~SAC~~Earnings from ~~Moving~~operations were $5.7 million and ~~Storage~~$1.1 ~~Operations~~million for years ended December 31, 2006 and 2005, respectively.

2005 ~~Cash~~ Compared ~~provided~~with ~~(used) by operating activities was $13.5 million, ($1.3) million and $15.1 million in fiscal years 2003, 2002 and 2001, respectively.~~ 2004

Net At premiums ~~March 31,~~were ~~2003,~~$26.0 ~~total~~million ~~outstanding~~and ~~notes~~$25.0 million for the years ended December 31, 2005 and ~~mortgages~~2004, ~~payable~~respectively. ~~before~~U-Haul ~~intercompany~~related ~~eliminations~~premiums of were $~~394~~20.2 million and $18.9 million for the years ended December 31, 2005 and 2004, respectively. Other lines of business were $~~983~~5.2 8 million ~~compared~~and to $~~961~~6.5 1 million atfor ~~March~~ the years ended December 31, ~~2002~~2005 and 2004, respectively.

~~Real~~Net investment ~~Estate~~income ~~Operations~~was $11.4 million and $16.4 million for the years ended December 31, 2005 and 2004, respectively. The reduction was due to a decrease in RepWest’s invested asset base and gains on capital assets sold in 2004.

Benefits ~~Cash~~ and ~~provided~~losses ~~(used) by~~incurred ~~operating~~were ~~activities was~~ $~~(87~~22.~~1) million,~~6 ~~$(144.1)~~ million and $6839.7 million infor ~~fiscal~~the years ~~2003~~ended December 31, ~~2002~~2005 and ~~2001~~2004, respectively. The decrease inresulted ~~fiscal~~from ~~years~~reduced exposure ~~2003~~to ~~and~~non ~~2002~~U-Haul ~~was~~policies ~~due~~combined with the absence of approximately to $8.5 million aof ~~decrease~~incurred losses in ~~the~~2004 ~~intercompany~~due ~~payable~~to ~~with~~hurricane ~~AMERCO~~claims.

~~Property~~Amortization of ~~And~~deferred ~~Casualty~~acquisition costs were $2.9 million and $4.7 million for the years ended December 31, 2005 and 2004, respectively. The decreases are due to a reduction of in-force business related to the exit of non U-Haul lines of business.

Operating ~~Cash~~ expenses ~~provided~~were ~~(used) by operating activities was~~ $~~(75~~10.~~1) million,~~8 ~~$(61.5)~~ million and $1511.2 8 million for the years ended December 31, ~~2002,~~ ~~2001~~ 2005 and ~~2000~~2004, respectively. The ~~change~~decrease inwas ~~2002 from 2001 is~~ due to ~~increased~~a ~~receivables.~~reduction ~~The~~of ~~change~~general administrative inexpenses ~~2001~~resulting from ~~2000~~the ~~change~~exit ~~is due~~of tothe ~~decreased~~non ~~unearned~~U-Haul ~~premiums,~~lines ~~increased receivables, and~~of ~~an increase in federal income tax recoverable~~ business.

Earnings ~~RepWest’s~~ (loss) ~~cash~~from ~~and~~operations ~~cash equivalents and short-term investment portfolio~~ were $351.1 million~~, $18.3 million~~ and ($1714.0 8) million atfor the years ended December 31, ~~2002,~~ ~~2001~~2005 and ~~2000~~2004, respectively. This balance reflects funds in transition from maturity proceeds to long-term investments. This level of liquid assets, combined with anticipated operating cash flow, is adequate to meet periodic needs. Capital and operating budgets allow RepWest to schedule cash needs in accordance with investment and underwriting proceeds.

~~During fiscal 2002, RepWest realized a write-down of investments due to other than temporary declines approximating $1.8 million.~~ 33

29The following table illustrates the change in unpaid loss and loss adjustment expenses. The first line represents reserves as originally reported at the end of the stated year. The second section, reading down, represents cumulative amounts paid as of the end of successive years with respect to that reserve. The third section, reading down, represents revised estimates of the original recorded reserve as of the end of successive years. The last section compares the latest revised estimated reserve amount to the reserve amount as originally established. This last section is cumulative and should not be totaled.

	Unpaid Loss and Loss Adjustment Expenses

	December 31,
	1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006
	(In thousands)
Unpaid Loss and Loss Adjustment Expenses	$	332,674	$	384,816	$	344,748	$	334,858	$	382,651	$	448,987	$	399,447	$	416,259	$	380,875	$	346,928	$	288,783
Paid (Cumulative) as of:
One year later		89,336		103,752		82,936		117,025		130,471		130,070		100,851		73,384		44,677		40,116		-
Two years later		161,613		174,867		164,318		186,193		203,605		209,525		164,255		114,246		83,230		-		-
Three years later		208,168		216,966		218,819		232,883		255,996		266,483		201,346		151,840		-		-		-
Four years later		232,726		246,819		255,134		264,517		299,681		295,268		233,898		-		-		-		-
Five years later		250,312		269,425		274,819		295,997		320,629		322,191		-		-		-		-		-
Six years later		263,645		282,598		297,354		314,281		341,543		-		-		-		-		-		-
Seven years later		274,249		300,814		311,963		331,385		-		-		-		-		-		-		-
Eight years later		289,614		314,322		327,141		-		-		-		-		-		-		-		-
Nine years later		298,449		326,805		-		-		-		-		-		-		-		-		-
Ten years later		309,945		-		-		-		-		-		-		-		-		-		-

Reserved Re-estimated as of:
One year later		354,776		357,733		339,602		383,264		433,222		454,510		471,029		447,524		388,859		326,386
Two years later		342,164		361,306		371,431		432,714		454,926		523,624		480,713		456,171		368,756		-
Three years later		346,578		369,598		429,160		437,712		517,361		500,566		521,319		435,549		-		-
Four years later		349,810		398,899		413,476		480,200		543,554		571,045		502,922		-		-		-
Five years later		376,142

Filing Compare · U HAUL INTERNATIONAL INC