U-Haul Holding Co /NV/ - Quarter Report: 2005 September (Form 10-Q)

September 30, 2005 10Q Second Quarter Filing

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

R QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2005

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

For the transition period from __________________ to __________________


Commission File Number	Registrant, State of Incorporation, Address and Telephone Number	I.R.S. Employer Identification No.


1-11255	AMERCO	88-0106815
	(A Nevada Corporation)
	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

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 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 R No £

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

Indicate by check 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 £

21,284,604 shares of AMERCO Common Stock, $0.25 par value, were outstanding at November 4, 2005.

5,385 shares of U-Haul International, Inc. Common Stock, $0.01 par value, were outstanding at November 4, 2005.

TABLE OF CONTENTS

		Page No.
	PART I FINANCIAL INFORMATION
Item 1.	Financial Statements
	a)Condensed Consolidated Balance Sheets as of September 30, 2005 (unaudited) and March 31, 2005	1-2
	b)Condensed Consolidated Statements of Operations for the Quarters ended September 30, 2005 and 2004 (unaudited)	3
	c)Condensed Consolidated Statements of Operations for the Six Months ended September 30, 2005 and 2004 (unaudited)	4
	c) Condensed Consolidated Statements of Comprehensive Income for the Quarters and Six Months ended September 30, 2005 and 2004 (unaudited)	5
	d) Condensed Consolidated Statements of Cash Flows for the Six Months ended September 30, 2005 and 2004 (unaudited)	6-7
	e)Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	53

	PART II OTHER INFORMATION
Item 1.	Legal Proceedings	55
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 3.	Defaults Upon Senior Securities	55
Item 4.	Submission of Matters to a Vote of Security Holders	55
Item 5.	Other Information	55
Item 6.	Exhibits

PART I FINANCIAL INFORMATION

ITEM 1. Financial Statements

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,			March 31,
	2005			2005
	(Unaudited)
	(In thousands)
ASSETS
Cash and cash equivalents	$	289,133		$	55,955
Trade receivables, net		233,616			236,817
Notes and mortgage receivables, net		2,369			1,965
Inventories, net		69,781			63,658
Prepaid expenses		22,293			19,874
Investments, fixed maturities		683,629			635,178
Investments, other		214,864			345,207
Deferred policy acquisition costs, net		48,599			52,543
Other assets		98,456			85,291
Related party assets		256,608			252,666
		1,919,348			1,749,154
Property, plant and equipment, at cost:
Land		160,735			151,145
Buildings and improvements		720,569			686,225
Furniture and equipment		273,407			265,216
Rental trailers and other rental equipment		201,885			199,461
Rental trucks		1,229,664			1,252,018
SAC Holding II Corporation - property, plant and equipment		77,976			77,594
		2,664,236			2,631,659
Less: Accumulated depreciation		(1,277,864	)		(1,277,191	)
Total property, plant and equipment		1,386,372			1,354,468
Total assets	$	3,305,720		$	3,103,622

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

	September 30,			March 31,
	2005			2005
	(Unaudited)
	(In thousands, except share and per share amounts)
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	$	212,998		$	206,763
AMERCO's notes and loans payable		865,163			780,008
SAC Holding II Corporation notes and loans payable, non-recourse to AMERCO		76,890			77,474
Policy benefits and losses, claims and loss expenses payable		802,180			805,121
Liabilities from investment contracts		476,375			503,838
Other policyholders' funds and liabilities		19,857			29,642
Deferred income		39,481			38,743
Deferred income taxes		123,983			78,124
Related party liabilities		10,164			11,070
Total liabilities		2,627,091			2,530,783

Commitments and contingencies (notes 3, 6 and 7)


Stockholders' equity:
Series preferred stock, with or without par value, 50,000,000 shares authorized:
Series A preferred stock, with no par value, 6,100,000 shares authorized;
6,100,000 shares issued and outstanding as of September 30 and March 31, 2005		-			-
Series B preferred stock, with no par value, 100,000 shares authorized; none
issued and outstanding as of September 30 and March 31, 2005		-			-
Series common stock, with or without par value, 150,000,000 shares authorized:
Series A common stock of $0.25 par value, 10,000,000 shares authorized;
3,716,181 shares issued as of September 30 and March 31, 2005		929			929
Common stock of $0.25 par value, 150,000,000 shares authorized;
38,269,518 issued as of September 30 and March 31, 2005		9,568			9,568
Additional paid-in capital		353,596			350,344
Accumulated other comprehensive loss		(26,260	)		(30,661	)
Retained earnings		769,344			671,642
Cost of common shares in treasury, net (20,701,096 shares as of
September 30 and March 31, 2005)		(418,092	)		(418,092	)
Unearned employee stock ownership plan shares		(10,456	)		(10,891	)
Total stockholders' equity		678,629			572,839
Total liabilities and stockholders' equity	$	3,305,720		$	3,103,622

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Quarter Ended September 30,
	2005			2004
	(Unaudited)
		(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals	$	446,705		$	429,156
Self-storage revenues		33,601			28,938
Self-moving and self-storage products and service sales		62,492			57,909
Property management fees		3,829			3,109
Life insurance premiums		29,718			32,035
Property and casualty insurance premiums		5,399			7,038
Net investment and interest income		12,352			11,475
Other revenue		11,420			9,760
Total revenues		605,516			579,420
Costs and expenses:
Operating expenses		289,701			287,447
Commission expenses		53,197			51,854
Cost of sales		30,917			28,516
Benefits and losses		26,709			33,381
Amortization of deferred policy acquisition costs		5,854			7,778
Lease expense		36,578			36,348
Depreciation, net		34,322			29,903
Total costs and expenses		477,278			475,227

Earnings from operations		128,238			104,193
Interest expense		15,245			18,060
Pretax earnings		112,993			86,133
Income tax expense		(43,871	)		(33,074	)
Net earnings		69,122			53,059
Less: Preferred stock dividends		(3,241	)		(3,241	)
Earnings available to common shareholders	$	65,881		$	49,818
Basic and diluted earnings per common share	$	3.16		$	2.39
Weighted average common shares outstanding:
Basic and diluted		20,848,620			20,801,525

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Six Months Ended September 30,
	2005			2004
	(Unaudited)
		(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals	$	847,965		$	818,898
Self-storage revenues		62,369			59,513
Self-moving and self-storage products and service sales		129,055			119,273
Property management fees		8,269			6,091
Life insurance premiums		59,307			65,294
Property and casualty insurance premiums		10,223			16,840
Net investment and interest income		26,066			29,051
Other revenue		21,720			17,405
Total revenues		1,164,974			1,132,365
Costs and expenses:
Operating expenses		556,493			559,358
Commission expenses		101,215			98,767
Cost of sales		61,961			56,256
Benefits and losses		54,023			70,052
Amortization of deferred policy acquisition costs		12,052			17,736
Lease expense		69,873			76,883
Depreciation, net		68,559			57,932
Total costs and expenses		924,176			936,984

Earnings from operations		240,798			195,381
Interest expense		34,881			37,064
Fees on early extinguishment of debt		35,627			-
Pretax earnings		170,290			158,317
Income tax expense		(66,106	)		(60,839	)
Net earnings		104,184			97,478
Less: Preferred stock dividends		(6,482	)		(6,482	)
Earnings available to common shareholders	$	97,702		$	90,996
Basic and diluted earnings per common share	$	4.69		$	4.38
Weighted average common shares outstanding:
Basic and diluted		20,842,539			20,794,766

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Quarter Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Comprehensive income:
Net earnings	$	69,122	$	53,059
Other comprehensive income (loss), net of tax:
Foreign currency translation		1,868		2,010
Fair market value of cash flow hedges		3,656		(1,668	)
Unrealized gain (loss) on investments		6,796		(12,796	)
Total comprehensive income	$	81,442	$	40,605

	Six Months Ended September 30,
	2005			2004
	(Unaudited)
	(In thousands)
Comprehensive income:
Net earnings	$	104,184		$	97,478
Other comprehensive income (loss), net of tax:
Foreign currency translation		(102	)		(217	)
Fair market value of cash flow hedges		3,247			(1,668	)
Unrealized gain (loss) on investments		1,256			(9,853	)
Total comprehensive income	$	108,585		$	85,740

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended September 30,
	2005			2004
	(Unaudited)
	(In thousands)
Cash flow from operating activities:
Net earnings	$	104,184		$	97,478
Depreciation		62,618			56,455
Amortization of deferred policy acquisition costs		13,463			18,716
Change in provision for losses on trade receivables		(620	)		102
Reduction of inventory reserves		(1,000	)		-
Net loss on sale of real and personal property		5,871			1,235
Net loss on sale of investments		1,483			44
Deferred income taxes		45,859			49,712
Net change in other operating assets and liabilities:
Trade receivables		3,821			17,329
Inventories		(5,123	)		(3,074	)
Prepaid expenses		(2,419	)		(3,631	)
Capitalization of deferred policy acquisition costs		(1,490	)		(6,732	)
Other assets		12,080			(20,970	)
Related party assets		(2,707	)		(4,240	)
Accounts payable and accrued expenses		1,148			7,309
Policy benefits and losses, claims and loss expenses payable		(2,941	)		(31,825	)
Other policyholder's funds and liabilities		(9,785	)		(4,599	)
Deferred income		738			(2,031	)
Related party liabilities		(2,141	)		1,761
Net cash provided by operating activities		223,039			173,039

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

	Six Months Ended September 30,
	2005			2004
	(Unaudited)
	(In thousands)

Cash flows from investing activities:
Purchases of:
Property, plant and equipment	$	(122,756	)	$	(161,693	)
Short term investments		(220,480	)		(97,627	)
Fixed maturities investments		(161,102	)		(59,416	)
Other asset investments, net		-			(1,387	)
Equity securities		-			(6,765	)
Mortgage loans		(1,250	)		-
Proceeds from sale of:
Property, plant and equipment		30,269			218,039
Short term investments		308,147			98,188
Fixed maturities investments		94,132			63,402
Equity securities		9,250			-
Preferred stock		7,842			14,589
Other asset investments, net		-			44,989
Real estate		36,002			1,964
Mortgage loans		4,823			1,913
Notes and mortgage receivables		(404	)		(2,157	)
Net cash provided (used) by investing activities		(15,527	)		114,039
Cash flows from financing activities:
Borrowings from credit facilities		1,168,318			14,385
Principal repayments on credit facilities		(1,083,747	)		(180,593	)
Debt issuance costs		(25,245	)		-
Leveraged Employee Stock Ownership Plan - repayments from loan		435			428
Payoff of capital leases		-			(99,607	)
Preferred stock dividends paid		(6,482	)		(9,723	)
Investment contract deposits		10,405			13,427
Investment contract withdrawals		(38,018	)		(61,193	)
Net cash provided (used) by financing activities		25,666			(322,876	)
Increase (decrease) in cash equivalents		233,178			(35,798	)
Cash and cash equivalents at the beginning of period		55,955			81,557
Cash and cash equivalents at the end of period	$	289,133		$	45,759

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2005, September 30, 2004 (Unaudited) and March 31, 2005,

1. Basis of Presentation

The second fiscal quarter for AMERCO ends the 30^th of September for each year that is referenced. Our insurance company subsidiaries have a second quarter that ends on the 30^th of June for each year that is referenced. They have been consolidated on that basis. Consequently, all references to our insurance subsidiaries’ years 2005 and 2004 correspond to the Company’s fiscal years 2006 and 2005.

Accounts denominated in non-U.S. currencies have been re-measured using the U.S. dollar as the functional currency. Certain amounts reported in previous years have been reclassified to conform to the current presentation.

The consolidated financial statements for the second quarter and the first six months of fiscal 2006 and fiscal 2005, and the balance sheet as of March 31, 2005 include the accounts of AMERCO, its wholly owned subsidiaries and SAC Holding II Corporation and its subsidiaries.

The condensed consolidated balance sheet as of September 30, 2005 and the related condensed consolidated statements of operations and comprehensive income for the second quarter and the first six months and the cash flows for the first six months ended fiscal 2006 and 2005 are unaudited.

In our opinion, all adjustments necessary for the fair presentation of such condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results for a full year. The information in this 10-Q should be read in conjunction with Management’s Discussion and Analysis and financial statements and notes thereto included in the AMERCO 2005 Form 10-K.

Inter-company accounts and transactions have been eliminated.

Description of Legal Entities

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”),

North American Fire & Casualty Insurance Company (“NAFCIC”),

Oxford Life Insurance Company (“Oxford”),

North American Insurance Company (“NAI”) and

Christian Fidelity Life Insurance Company (“CFLIC”).

Unless the context otherwise requires, the term “Company”, “we”, “us” or “our” refers to AMERCO and its legal subsidiaries.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

Description of Operating Segments

AMERCO has four reportable segments. They are Moving and Storage Operations, Property and Casualty Insurance, Life Insurance and SAC Holding II.

Moving and Storage Operations include AMERCO, U-Haul and Real Estate and the wholly-owned subsidiaries of U-Haul and Real Estate and consist of the rental of trucks and trailers, sales of moving supplies, sales of trailer hitches, sales of propane, the rental of self-storage spaces to the “do-it-yourself” mover and management of self-storage properties owned by others. Operations are conducted under the registered trade name U-Haul^® throughout the United States and Canada.

Property and Casualty Insurance includes RepWest and its wholly-owned subsidiary. RepWest provides loss adjusting and claims handling for U-Haul through regional offices across North America. RepWest also underwrites components of the Safemove, Safetow and Safestor protection packages to U-Haul customers.

Life Insurance includes Oxford and its wholly-owned subsidiaries. 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 Arizona employees of the Company.

SAC Holding Corporation and its subsidiaries, and SAC Holding II Corporation and its subsidiaries, collectively referred to as “SAC Holdings”, own self-storage properties that are managed by U-Haul under property management agreements and act as independent U-Haul rental equipment dealers. AMERCO, through its subsidiaries, has contractual interests in certain SAC Holdings’ properties entitling AMERCO to potential future income based on the financial performance of these properties. With respect to SAC Holding II Corporation, AMERCO is considered the primary beneficiary of these contractual interests. Consequently, we include the results of SAC Holding II Corporation in the consolidated financial statements of AMERCO, as required by FIN 46(R).

2. Earnings per Share

Net income for purposes of computing earnings per common share is net income minus preferred stock dividends. Preferred stock dividends include accrued dividends of AMERCO.

The shares used in the computation of the Company’s basic and diluted earnings per common share were as follows:

	Quarter Ended September 30,
	2005		2004
	(Unaudited)
Basic and diluted earnings per common share	$	3.16	$	2.39
Weighted average common share outstanding:
Basic and diluted		20,848,620		20,801,525

	Six Months Ended September 30,
	2005		2004
	(Unaudited)
Basic and diluted earnings per common share	$	4.69	$	4.38
Weighted average common share outstanding:
Basic and diluted		20,842,539		20,794,766

The weighted average common shares outstanding listed above exclude post-1992 shares of the employee stock ownership plan that have not been committed to be released as of September 30, 2005 and September 30, 2004, respectively.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

6,100,000 shares of preferred stock have been excluded from the weighted average shares outstanding calculation because they are not common stock equivalents.

3. Borrowings

Long-Term Debt

On June 8, 2005 and June 28, 2005, Amerco Real Estate Company and its subsidiaries and various subsidiaries of U-Haul International, Inc. entered into new Credit Agreements, thereby increasing previous borrowing capacity by more than $195.0 million and reducing the cost of borrowing in comparison to the previous loans. U-Haul International, Inc. is a guarantor for certain obligations under the new credit facilities.

Long-term debt consisted of the following:

	September 30,		March 31,
	2005		2005
	(Unaudited)
	(In thousands)
Real estate loan, due 2010	$	242,585	$	-
Senior mortgages, 5.68%, due 2015		239,327		-
Senior mortgages, 5.52%, due 2015		239,347		-
U-Haul Co. of Canada mortgage securities 5.75%, due 2015		9,774		-
CMBS mezzanine loan, due 2007		20,000		-
CMBS loan, 5.47%, due 2015		24,130		-
Revolving credit agreement, due 2010		90,000		-
Revolving credit facility, senior secured first lien		-		84,862
Senior amortizing notes, secured, first lien, due 2009		-		346,500
Senior notes, secured second lien, 9.0% interest rate, due 2009		-		200,000
Senior subordinated notes, secured, 12.0% interest rate, due 2011		-		148,646
Total AMERCO notes and loans payable	$	865,163	$	780,008

Real Estate Backed Loans

Real Estate Loan

Amerco Real Estate Company and certain of its subsidiaries, and U-Haul Company of Florida are borrowers under a Real Estate Loan. The lender is Merrill Lynch Commercial Finance Corp. The original amount of the Real Estate Loan was $465.0 million and is due June 10, 2010. The borrowers have the right to extend the maturity twice, for up to one year each time. U-Haul International, Inc. is a guarantor of this loan. This loan was paid down by $222.4 million in the second quarter of fiscal 2006.

The Real Estate Loan requires monthly principal and interest payments, with the unpaid loan balance and accrued and unpaid interest due at maturity. The Real Estate Loan is secured by various properties owned by the borrowers. The principal payments made in the second quarter were sufficient to allow us to make interest only payments.

The interest rate, per the provisions of the Loan Agreement, is the applicable London Inter-Bank Offer Rate (“LIBOR”) plus the applicable margin. At September 30, 2005 the applicable LIBOR was 3.73% and the applicable margin was 2.0%, the sum of which was 5.73%. The applicable margin ranges from 2.0% to 2.8% and is based on the ratio of the excess of the average daily amount of loans divided by a fixed percentage of the appraised value of the properties collateralizing the loan, compared with the most recently reported 12 months of Combined Net Operating Income (“NOI”), as that term is defined in the Loan Agreement.

The default provisions of the Real Estate Loan include non-payment of principal or interest and other standard affirmative covenants. There are limited restrictions regarding the borrowers’ use of the funds.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

Senior Mortgages

Various subsidiaries of Amerco Real Estate Company and U-Haul International, Inc. are borrowers under the Senior Mortgages. The lenders for the Senior Mortgages are Merrill Lynch Mortgage Lending, Inc. and Morgan Stanley Mortgage Capital Inc. The Senior Mortgages are in the aggregate amount of $478.7 million and are due July 2015.

The Senior Mortgages require average monthly principal and interest payments of $3.0 million with the unpaid loan balance and accrued and unpaid interest due at maturity. The Senior Mortgages are secured by certain properties owned by the borrowers. The interest rates, per the provisions of the Senior Mortgages, are 5.68% per annum for the Merrill Lynch Mortgage Lending Agreement and 5.52% per annum for the Morgan Stanley Mortgage Capital Agreement. The default provisions of the Senior Mortgages include non-payment of principal or interest and other standard covenants. There are limited restrictions regarding our use of the funds.

U-Haul Company of Canada Mortgage Securities

U-Haul Company of Canada is the borrower under a mortgage backed loan. The loan was originated by Merrill Lynch and is in the amount of $9.8 million ($11.4 million Canadian currency). The loan is secured by certain properties owned by the borrower. The loan was entered into on June 29, 2005 at a rate of 5.75%. The loan requires monthly principal and interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. It has a 25 year amortization with a maturity of July 1, 2015. The default provisions of the loan include non-payment of principal or interest and other standard covenants. There are limited restrictions regarding our use of the funds.

CMBS Mezzanine Loan

Various subsidiaries of Amerco Real Estate Company and U-Haul International, Inc. are borrowers under the CMBS Mezzanine Loan. The loan was originated by Morgan Stanley Mortgage Capital, Inc. and is in the amount of $20.0 million. The loan was entered into on August 12, 2005. The interest rate per the provision of the loan agreement is the applicable LIBOR plus a margin of 5.65%. At September 30, 2005 the applicable LIBOR was 3.73%. The loan requires monthly principal and interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. It has a ten year amortization with a maturity of September 1, 2007. Amerco Real Estate Company and U-Haul International, Inc. are guarantors of the loan. The default provisions of the loan include non-payment of principal or interest and other standard covenants. There are limited restrictions regarding our use of the funds.

CMBS Loan

A subsidiary of Amerco Real Estate Company is a borrower under a mortgage backed loan. The lender is Morgan Stanley Mortgage Capital, Inc. and the loan is in the amount of $24.1 million. The loan was entered into on August 17, 2005 at a rate of 5.47%. The loan is secured by certain properties owned by the borrower. The loan requires monthly principal and interest payments with the unpaid loan balance and accrued and unpaid interest due at maturity. It has a 25 year amortization with a maturity of September 17, 2015. The default provisions of the loan include non-payment of principal or interest and other standard covenants. There are limited restrictions regarding our use of the funds.

Fleet Loans

Revolving Credit Agreement

U-Haul International, Inc. is a borrower under a revolving debt loan. The lender is Merrill Lynch Commercial Finance Corp. The maximum amount that can be drawn is $150.0 million and is due July 2010. As of September 30, 2005 the Company had $60.0 million available under its revolving credit facility.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

The Revolving Credit Agreement requires monthly principal and interest payments, with the unpaid loan balance and accrued unpaid interest due at maturity. The Revolving Credit Agreement is secured by various older rental trucks. The maximum amount that we can draw down under the Revolving Credit Agreement reduces by $50.0 million after the third year and another $50.0 million after the fourth year. The interest rate, per the provision of the Loan Agreement, is the applicable LIBOR plus a margin of 1.75%. At September 30, 2005 the applicable LIBOR was 3.73%. The default provisions of the loan include non-payment of principal or interest and other standard covenants.

W.P. Carey Transactions

In 1999, AMERCO, U-Haul and Real Estate entered into financing agreements for the purchase and construction of self-storage facilities with the Bank of Montreal and Citibank (the “leases” or the “synthetic leases”). Title to the real property subject to these leases was held by non-affiliated entities.

These leases were amended and restated on March 15, 2004. In connection with such amendment and restatement, we paid down approximately $31.0 million of lease obligations and entered into leases with a three year term, with four one year renewal options. After such pay down, our lease obligation under the amended and restated synthetic leases was approximately $218.5 million.

On April 30, 2004, the amended and restated leases were terminated and the properties underlying these leases were sold to UH Storage (DE) Limited Partnership, an affiliate of W. P. Carey. U-Haul entered into a ten year operating lease with W. P. Carey (UH Storage DE) for a portion of each property (the portion of the property that relates to U-Haul’s truck and trailer rental and moving supply sales businesses). The remainder of each property (the portion of the property that relates to self-storage) was leased by W. P. Carey (UH Storage DE) to Mercury Partners, LP (“Mercury”) pursuant to a 20 year lease. These events are referred to as the “W. P. Carey Transactions.” As a result of the W. P. Carey Transactions, we no longer have a capital lease related to these properties.

The sales price for these transactions was $298.4 million and cash proceeds were $298.9 million. The Company realized a gain on the transaction of $2.7 million, which is being amortized over the life of the lease term.

As part of the W. P. Carey Transactions, U-Haul entered into agreements to manage these properties (including the portion of the properties leased by Mercury). These management agreements allow us to continue to operate the properties as part of the U-Haul moving and self-storage system.

U-Haul’s annual lease payments under the new lease are approximately $10.0 million per year, with CPI inflation adjustments beginning in the sixth year of the lease. The lease term is ten years, with a renewal option for an additional ten years. Upon closing of the W. P. Carey Transactions, we made a $22.9 million earn-out deposit, providing us with the opportunity to be reimbursed for certain capital improvements we previously made to the properties, and a $5.0 million security deposit. U-Haul has met the requirements under the lease regarding the return of the earn-out deposit and the earn-out deposit has been refunded.

The property management agreement we entered into with Mercury provides that Mercury will pay U-Haul a management fee based on gross self-storage rental revenues generated by the properties. During the first six months of fiscal 2006, U-Haul earned $2.0 million in management fees from Mercury.

Annual Maturities of AMERCO Consolidated Notes and Loans Payable

The annual maturity of AMERCO Consolidated long-term debt as of September 30, 2005 for the next five years and thereafter is as follows:

	Year Ending September 30,
	2006		2007		2008		2009		2010		Thereafter
	(Unaudited)
	(In thousands)
Notes payable, secured	$	26,730	$	28,277	$	29,913	$	31,645	$	33,477	$	715,121

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

SAC Holding II Corporation Notes and Loans Payable to Third Parties

SAC Entities notes and loans payable consisted of the following:

	September 30,		March 31,
	2005		2005
	(Unaudited)
	(In thousands)
Notes payable, secured, 7.9% interest rate, due 2014	$	76,890	$	77,474

4. Interest on Borrowings

Interest expense was as follows:

	Quarter Ended September 30,
	2005			2004
	(Unaudited)
	(In thousands)
Interest expense	$	13,774		$	14,778
Capitalized interest		(32	)		-
Amortization of transaction costs		1,048			863
Interest expense (income) resulting from interest rate caps		(1,094	)		845
Total AMERCO interest expense		13,696			16,486
SAC Holding II interest expense		3,014			3,968
Less: Intercompany transactions		1,465			2,394
Total SAC Holding II interest expense		1,549			1,574
Total	$	15,245		$	18,060

	Six Months Ended September 30,
	2005			2004
	(Unaudited)
	(In thousands)
Interest expense	$	31,616		$	31,342
Capitalized interest		(76	)		-
Amortization of transaction costs related to early extinguishment of debt		14,384			-
Amortization of transaction costs		1,048			1,596
Interest expense (income) resulting from interest rate caps		(793	)		992
Fees on early extinguishment of debt		21,243			-
Total AMERCO interest expense		67,422			33,930
SAC Holding II interest expense		6,144			7,231
Less: Intercompany transactions		3,058			4,097
Total SAC Holding II interest expense		3,086			3,134
Total	$	70,508		$	37,064

Interest paid in cash by AMERCO amounted to $8.0 million and $13.5 million for the second quarters of fiscal 2006 and fiscal 2005, respectively.

Interest paid in cash by AMERCO (excluding any fees from the early extinguishment of debt) amounted to $25.9 million and $28.8 million for the first six months of fiscal 2006 and fiscal 2005, respectively.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

The costs associated with the early extinguishment of debt include $21.2 million of fees and $14.4 million of transaction cost amortization related to retired debt.

The exposure to market risk for changes in interest rates relates primarily to our variable rate debt obligations. We have used interest rate swap and interest rate cap agreements to provide for matching the gain or loss recognition on the hedging instrument with the recognition of the changes in the cash flows associated with the hedged asset or liability attributable to the hedged risk or the earnings effect of the hedged forecasted transaction. On June 8, 2005 the Company entered into separate interest rate swap contracts for $100 million of our variable rate debt over a three year term and for $100 million of our variable rate debt over a five year term, which were designated as cash flow hedges effective July 1, 2005. On May 13, 2004 the Company entered into separate interest rate cap contracts for $200 million of our variable rate debt over a two year term and for $50 million of our variable rate debt over a three year term, however these contracts were designated as cash flow hedges effective July 11, 2005 when the debt was paid down by $222.4 million.

Interest rates and company borrowings were as follows:

	Revolving Credit Activity
	Quarter ended September 30,
	2005			2004
	(Unaudited)
	(In thousands, except interest rates)
Weighted average interest rate during the second fiscal quarter		5.30	%		5.60	%
Interest rate at the end of the second fiscal quarter		5.48	%		5.84	%
Maximum amount outstanding during the second fiscal quarter	$	90,000		$	33,039
Average amount outstanding during the second fiscal quarter	$	90,000		$	21,509


	Revolving Credit Activity
	Six Months ended September 30,
	2005			2004
	(Unaudited)
	(In thousands, except interest rates)
Weighted average interest rate during the first six months		5.84	%		5.50	%
Interest rate at the end of the first six months		5.48	%		5.84	%
Maximum amount outstanding during the first six months	$	135,010		$	33,039
Average amount outstanding during the first six months	$	106,192		$	14,340

5. Comprehensive Income

The components of accumulated other comprehensive income/(loss), net of tax, were as follows:

	September 30,			March 31,
	2005			2005
	(Unaudited)
	(In thousands)
Accumulated foreign currency translation	$	(33,446	)	$	(33,344	)
Accumulated unrealized gain on investments		3,892			2,636
Accumulated fair market value of cash flow hedge		3,294			47
	$	(26,260	)	$	(30,661	)

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

A summary of accumulated comprehensive income/ (loss) components, net of tax, were as follows:

				Unrealized		Fair Market		Accumulated
	Foreign			Gain		Value of		Other
	Currency			on		Cash Flow		Comprehensive
	Translation			Investments		Hedge		Income
	(Unaudited)
	(In thousands)
Balance at March 31, 2005	$	(33,344	)	$	2,636	$	47	$	(30,661	)
Foreign currency translation - U-Haul		(102	)		-		-		(102	)
Change in fair value of cash flow hedge		-			-		3,247		3,247
Unrealized gain on investments		-			1,256		-		1,256
Balance at September 30, 2005	$	(33,446	)	$	3,892	$	3,294	$	(26,260	)

6. Contingent Liabilities and Commitments

The Company leases a portion of its rental equipment and certain of its facilities under operating leases with terms that expire at various dates substantially through 2034. At September 30, 2005, AMERCO has guaranteed $188.7 million of residual values for these assets at the end of the respective lease terms. Certain leases contain renewal and fair market value purchase options as well as mileage and other restrictions. At the expiration of the lease, the Company has the option to renew the lease, purchase the asset for fair market value, or sell the asset to a third party on behalf of the lessor. AMERCO has been leasing equipment since 1987 and has experienced no material losses relating to these types of residual value guarantees.

Lease commitments having terms of more than one year as of September 30, 2005, were as follows:

	Property Plant and Equipment		Rental Equipment		Total
	(Unaudited)
			(In thousands)
Year-ended September 30,:
2006	$	11,956	$	110,790	$	122,746
2007		11,727		87,228		98,955
2008		11,569		62,558		74,127
2009		11,163		50,013		61,176
2010		10,814		41,189		52,003
Thereafter		46,493		34,491		80,984
Total	$	103,722	$	386,269	$	489,991

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

7. Contingencies

Shoen

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. 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 these claims resolved by the Board. The court consolidated all five complaints before dismissing them on May 28, 2003. Plaintiffs appealed and, on September 12, 2005 the Nevada Supreme Court heard oral arguments. The parties are awaiting a ruling.

Securities Litigation

AMERCO is a defendant in a consolidated putative class action lawsuit entitled “In Re AMERCO Securities Litigation”, United States District Court, Case No. CV-N-03-0050-ECR (RAM). The action alleges claims for violation of Section 10(b) of the Securities Exchange Act and Rule 10b-5 there under, section 20(a) of the Securities Exchange Act of 1934 and sections 11, 12, and 15 of the Securities Act of 1933. The action alleges among other things, that AMERCO engaged in transactions with SAC entities that falsely improved AMERCO’s financial statements and that AMERCO failed to disclose the transactions properly. The action has been transferred to the United Sates District Court, District of Arizona and assigned to Judge Bryan. Motions to dismiss are fully briefed and are before the court.

Securities and Exchange Commission

The Securities and Exchange Commission (“SEC”) has issued a formal order of investigation to determine whether the Company has violated the Federal Securities laws. The Company has produced and delivered all requested documents and information and provided testimony from all requested witnesses to the SEC. The Company continues to cooperate with the SEC. We cannot predict the outcome of the investigation.

Environmental

In the normal course of business, AMERCO is a defendant in a number of suits and claims. AMERCO is also a party to several administrative proceedings arising from state and local provisions that regulate the removal and/or cleanup of underground fuel storage tanks. It is the opinion of management, that none of these suits, claims or proceedings involving AMERCO, individually or in the aggregate, are expected to result in a material loss.

Compliance with environmental requirements 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 hazardous substances on some of its properties. Real Estate regularly makes capital and operating expenditures to stay in compliance with environmental laws and has put in place a remedial plan at each site where it believes such a plan is necessary. Since 1988, Real Estate has managed a testing and removal program for underground storage tanks.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

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 $8.7 million through 2011 to remediate these properties.

Other

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

8. Related Party Transactions

AMERCO has engaged in related party transactions, and has continuing related party interests with certain major stockholders, directors and officers of the consolidated group as disclosed below. Management believes that the transactions described below and in the related notes were consummated on terms equivalent to those that would prevail in arm’s-length transactions.

During the second quarter of fiscal 2006, subsidiaries of the Company held various junior unsecured notes of SAC Holdings. Substantially all of the equity interest of SAC Holdings is controlled by Mark V. Shoen, a significant shareholder and executive officer of AMERCO. 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. The Company received cash interest payments of $7.2 million, from SAC Holdings during the first six months of fiscal 2006. The largest aggregate amount of notes receivable outstanding during the first six months of fiscal 2006 and the aggregate notes receivable balance at September 30, 2005 was $203.7 million, of this amount, $75.1 million is with SAC Holding II Corporation and eliminates in consolidation.

Interest accrues on the outstanding principal balance of junior notes of SAC Holdings that the Company holds at a stated rate of basic interest. A fixed portion of that basic interest is paid on a monthly basis.

Additional interest is paid on the same payment date based on the amount of remaining basic interest and of the cash flow generated by the underlying property. This amount is referred to as the “cash flow-based calculation.”

To the extent that this cash flow-based calculation exceeds the amount of remaining basic interest, contingent interest is paid on the same monthly date as the fixed portion of basic interest. To the extent that the cash flow-based calculation is less than the amount of remaining basic interest, the additional interest payable on the applicable monthly date is limited to the amount of that cash flow-based calculation. In such a case, the excess of the remaining basic interest over the cash flow-based calculation is deferred. In addition, subject to certain contingencies, the junior notes provide that the holder of the note is entitled to receive 90% of the appreciation realized upon, among other things, the sale of such property by SAC Holdings.

The Company currently manages the self-storage properties owned by SAC Holdings, Mercury, 4 SAC, 5 SAC, Galaxy and Private Mini Storage Realty (Private Mini) pursuant to a standard form of management agreement, under which the Company receives a management fee of between 4% and 10% of the gross receipts. The Company received management fees of $9.6 million for the six months ended September 30, 2005. This management fee is consistent with the fees received for other properties the Company manages for third parties.

RepWest and Oxford currently hold a 46% limited partnership interest in Securespace Limited Partnership (“Securespace”), a Nevada limited partnership. A SAC Holdings subsidiary serves as the general partner of Securespace and owns a 1% interest. Another SAC Holdings subsidiary owns the remaining 53% limited partnership interest in Securespace. Securespace was formed by SAC Holdings to be the owner of various Canadian self-storage properties. RepWest and Oxford’s investment in Securespace is included in related party assets and is accounted for using the equity method of accounting. We do not believe that the carrying amount of their investment in Securespace is in excess of fair value.

For the six months ended September 30, 2005, the Company leased space for marketing company offices, vehicle repair shops and hitch installation centers from subsidiaries of SAC Holdings, 5 SAC and Galaxy. Total lease payments pursuant to such leases were $1.3 million. The terms of the leases are similar to the terms of leases for other properties owned by unrelated parties that are leased to the Company.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

At September 30, 2005, subsidiaries of SAC Holdings, 4 SAC, 5 SAC, Galaxy and Private Mini acted as U-Haul independent dealers. The financial and other terms of the dealership contracts with the aforementioned companies and there subsidiaries are substantially identical to the terms of those with the Company’s other independent dealers. For the six months ended September 30, 2005, the Company paid the above mentioned entities $21.0 million in commissions pursuant to such dealership contracts.

SAC Holdings was established in order to acquire self-storage properties. These properties are being managed by the Company pursuant to management agreements. The sale of self-storage properties by the Company to SAC Holdings has in the past provided significant cash flows to the Company and the Company’s outstanding loans to SAC Holdings entitle the Company to participate in SAC Holdings’ excess cash flows (after senior debt service).

Management believes that its sales of self-storage properties to SAC Holdings in the past provided a unique structure for the Company to earn rental revenues and management fee income from the SAC Holdings self-storage properties the Company manages and to participate in SAC Holdings’ excess cash flows as described above.

Independent fleet owners own approximately 3.0% of all U-Haul rental trailers. There are approximately 880 independent fleet owners, including certain officers, directors, employees and stockholders of AMERCO. Such AMERCO officers, directors, employees and stockholders owned less than 1.0% of all U-Haul rental trailers during the first six months of fiscal 2006 and fiscal 2005. All rental equipment is operated under contract with U-Haul whereby U-Haul administers the operations and marketing of such equipment and in return receives a percentage of rental fees paid by customers. Based on the terms of various contracts, rental fees are distributed to U-Haul (for services as operators), to the fleet owners (including certain subsidiaries and related parties of U-Haul) and to rental dealers (including Company-operated U-Haul Centers).

In February 1997, AMERCO, through its insurance subsidiaries, invested in the equity of Private Mini, a Texas-based self-storage operator. RepWest invested $13.5 million and had a direct 30.6% interest and an indirect 13.2% interest. Oxford invested $11.0 million and had a direct 24.9% interest and an indirect 10.8% interest. On June 30, 2003, RepWest and Oxford exchanged their respective interests in Private Mini for certain real property owned by certain SAC Holdings entities. The exchanges were non-monetary and were recorded on the basis of the book values of the assets exchanged.

During 1997, Private Mini secured a $225.0 million line of credit with a financing institution, which was subsequently reduced in accordance with its terms to $125.0 million in December 2001. Under the terms of this credit facility, AMERCO entered into a support party agreement with Private Mini whereby upon default or noncompliance with certain debt covenants by Private Mini, AMERCO assumes responsibility in fulfilling all obligations related to this credit facility. In 2003, the support party obligation was bifurcated into two separate support party obligations; one consisting of a $55.0 million support party obligation and one consisting of a $70.0 million support party obligation. At March 31, 2003, $55.0 million of AMERCO’s support party obligation had been triggered. AMERCO satisfied the $55.0 million obligation by issuing notes to the Private Mini creditor, and we correspondingly increased our receivable from Private Mini by $55.0 million. Interest from Private Mini on this receivable is being recorded by AMERCO on a regular basis. The Company expects to fully recover this amount. Under the terms of FIN 45, the remaining $70.0 million support party obligation was recognized by the Company as a liability at March 31, 2004 and March 31, 2003. This resulted in AMERCO increasing Other Liabilities by $70.0 million and increasing our receivable from Private Mini by an additional $70.0 million. At March 31, 2005, the Company revalued the FIN 45 liability to $2.9 million. Effective July 15, 2005 the $70.0 million support party obligation was terminated and AMERCO is no longer obligated on behalf of Private Mini. The $2.9 million liability recorded in the Company’s books was eliminated at the time the support party obligation was terminated. Private Mini is now a wholly owned subsidiary of 4 SAC and 5 SAC.

In August 2005, RepWest completed the sale of three storage properties to 5 SAC and the sale of nineteen storage properties to Real Estate, for approximately $50.5 million. RepWest received cash from these sales. Management believes that the foregoing transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

Related Party Receivables

	September 30,			March 31,
	2005			2005
	(Unaudited)
	(In thousands)
Private Mini receivables and interest	$	71,619		$	70,887
Oxford note receivable from SAC Holding Corporation		5,040			5,040
U-Haul notes receivable from SAC Holding Coporation		123,578			123,578
U-Haul interest receivable from SAC Holding Corporation		37,691			35,960
U-Haul receivable from SAC Holding Corporation		4,590			1,028
SAC Holding II receivable from parent		1,600			2,202
U-Haul receivable from Mercury		3,399			2,185
Oxford and RepWest investment in Securespace		11,356			11,225
Other		(2,265	)		561
	$	256,608		$	252,666

Related Party Liabilities

	September 30,		March 31,
	2005		2005
	(Unaudited)
	(In thousands)
SAC Holding II Corporation payable to affiliate	$	10,164	$	11,070

9. Consolidating Financial Information by Industry Segment

AMERCO has four reportable segments. Our segments are Moving and Storage Operations, Property and Casualty Insurance, Life Insurance and SAC Holding II.

This section includes condensed consolidating financial information which presents the condensed consolidating balance sheets as of September 30, 2005 and March 31, 2005 and the related condensed consolidating statements of operations for the second quarter and first six months of fiscal 2006 and 2005 and the condensed consolidating cash flow statements for the first six months of fiscal 2006 and 2005 for:

(a)

Moving and Storage Operations, comprised of AMERCO, U-Haul, and Real Estate and the subsidiaries of U-Haul and Real Estate

(b)

RepWest and its subsidiary

(c)

Oxford and its subsidiaries

(d)

SAC Holding II and its subsidiaries

The information includes elimination entries necessary to consolidate AMERCO, the parent, with its subsidiaries and SAC Holding II.

Investments in subsidiaries are accounted for by the parent using the equity method of accounting.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Consolidating balance sheets by industry segment as of September 30, 2005 are as follows:

	Moving and Storage																	AMERCO Legal Group									AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Eliminations					Moving and Storage Consolidated			Property and Casualty Insurance(a)		Life Insurance(a)		Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated
	(Unaudited)
	(In thousands)
Assets:
Cash and cash equivalents	$	8		$	232,832		$	116		$	-				$	232,956		$	11,428	$	6,613	$	36,761		(f	)	$	287,758		$	1,375		$	-				$	289,133
Trade receivables, net		-			16,151			23			-					16,174			204,178		13,264		-					233,616			-			-					233,616
Notes and mortgage receivables, net		-			1,461			908			-					2,369			-		-		-					2,369			-			-					2,369
Inventories, net		-			68,498			-			-					68,498			-		-		-					68,498			1,283			-					69,781
Prepaid expenses		6,637			15,643			-			-					22,280			-		-		-					22,280			13			-					22,293
Investments, fixed maturities		-			-			-			-					-			101,588		582,041		-					683,629			-			-					683,629
Investments, other		-			64			8,056			-					8,120			131,555		109,640		(35,156	)	(f	)		214,159			705			-					214,864
Deferred policy acquisition costs, net		-			-			-			-					-			1,274		47,325		-					48,599			-			-					48,599
Other assets		237			48,884			39,434			-					88,555			3,748		1,130		-					93,433			5,023			-					98,456
Related party assets		71,354			341,572			450,039			(517,773	)	(d	)		345,192			54,439		32,050		(94,197	)	(d,f	)		337,484			1,600			(82,476	)	(d	)		256,608
		78,236			725,105			498,576			(517,773	)				784,144			508,210		792,063		(92,592	)				1,991,825			9,999			(82,476	)				1,919,348

Investment in subsidiaries		1,391,975			-			-			(1,109,482	)	(c	)		282,493			-		-		(282,493	)	(c	)		-			-			-					-
Investment in SAC Holding II		(14,082	)		-			-			-					(14,082	)		-		-		-					(14,082	)		-			14,082		(c	)		-
Total investment in subsidiaries and SAC Holding II		1,377,893			-			-			(1,109,482	)				268,411			-		-		(282,493	)				(14,082	)		-			14,082					-

Property, plant and equipment, at cost:
Land		-			21,693			139,042			-					160,735			-		-		-					160,735			-			-					160,735
Buildings and improvements		-			86,683			633,886			-					720,569			-		-		-					720,569			-			-					720,569
Furniture and equipment		293			255,388			17,726			-					273,407			-		-		-					273,407			-			-					273,407
Rental trailers and other rental equipment		-			201,885			-			-					201,885			-		-		-					201,885			-			-					201,885
Rental trucks		-			1,229,664			-			-					1,229,664			-		-		-					1,229,664			-			-					1,229,664
SAC Holding II - property, plant and equipment (b)		-			-			-			-					-			-		-		-					-			152,188			(74,212	)	(e	)		77,976
		293			1,795,313			790,654			-					2,586,260			-		-		-					2,586,260			152,188			(74,212	)				2,664,236
Less: Accumulated depreciation		(270	)		(1,003,740	)		(274,481	)		-					(1,278,491	)		-		-		-					(1,278,491	)		(8,757	)		9,384		(e	)		(1,277,864	)
Total property, plant and equipment		23			791,573			516,173			-					1,307,769			-		-		-					1,307,769			143,431			(64,828	)				1,386,372

Total assets	$	1,456,152		$	1,516,678		$	1,014,749		$	(1,627,255	)			$	2,360,324		$	508,210	$	792,063	$	(375,085	)			$	3,285,512		$	153,430		$	(133,222	)			$	3,305,720

(a) Balances as of June 30, 2005.

(b) Included in this caption is land of $57,169, buildings and improvements of $94,730, and furniture and equipment of $289.

(d) Eliminate intercompany receivables and payables.

(e) Eliminate gain on sale of property from U-Haul to SAC Holding II.

(f) Elimination related to sale of assets from RepWest to Real Estate during the second quarter.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Consolidating balance sheets by industry segment as of September 30, 2005 are as follows (continued):

	Moving and Storage																AMERCO Legal Group											AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate		Eliminations					Moving and Storage Consolidated			Property and Casualty Insurance(a)			Life Insurance(a)			Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated
	(Unaudited)
	(In thousands)
Liabilities:
Accounts payable and accrued expenses	$	6,655		$	194,806		$	7,498	$	-				$	208,959		$	-		$	2,184		$	-				$	211,143		$	1,855		$	-				$	212,998
AMERCO's notes and loans payable		-			121,576			743,587		-					865,163			-			-			-					865,163			-			-					865,163
SAC Holding II Corporation notes and loans, payable, non-recourse to AMERCO		-			-			-		-					-			-			-			-					-			76,890			-					76,890
Policy benefits and losses, claims and loss expenses payable		-			278,401			-		-					278,401			367,596			156,183			-					802,180			-			-					802,180
Liabilities from investment contracts		-			-			-		-					-			-			476,375			-					476,375			-			-					476,375
Other policyholders' funds and liabilities		-			-			-		-					-			8,996			10,861			-					19,857			-			-					19,857
Deferred income		-			15,169			2		-					15,171			12,143			14,279			(2,842	)	(e	)		38,751			730			-					39,481
Deferred income taxes		203,408			-			-		-					203,408			(45,909	)		(1,823	)		-					155,676			(4,603	)		(27,090	)	(d	)		123,983
Related party liabilities		519,266			71,362			-		(517,773	)	(c	)		72,855			8,620			13,133			(94,608	)	(c	)		-			92,640			(82,476	)	(c	)		10,164
Total liabilities		729,329			681,314			751,087		(517,773	)				1,643,957			351,446			671,192			(97,450	)				2,569,145			167,512			(109,566	)				2,627,091
Stockholders' equity:
Series preferred stock:
Series A preferred stock		-			-			-		-					-			-			-			-					-			-			-					-
Series B preferred stock		-			-			-		-					-			-			-			-					-			-			-					-
Series A common stock		929			-			-		-					929			-			-			-					929			-			-					929
Common stock		9,568			540			1		(541	)	(b	)		9,568			3,300			2,500			(5,800	)	(b	)		9,568			-			-					9,568
Additional paid-in capital		399,667			121,230			147,481		(268,711	)	(b	)		399,667			69,922			16,435			(86,357	)	(b	)		399,667			-			(46,071	)	(d	)		353,596
Accumulated other comprehensive income (loss)		(26,260	)		(33,446	)		-		33,446		(b	)		(26,260	)		2,350			1,542			(3,892	)	(b	)		(26,260	)		-			-					(26,260	)
Retained earnings		761,011			757,496			116,180		(873,676	)	(b	)		761,011			81,192			100,394			(181,586	)	(b	)		761,011			(14,082	)		22,415		(b,d	)		769,344
Cost of common shares in treasury, net		(418,092	)		-			-		-					(418,092	)		-			-			-					(418,092	)		-			-					(418,092	)
Unearned employee stock ownership plan shares		-			(10,456	)		-		-					(10,456	)		-			-			-					(10,456	)		-			-					(10,456	)
Total stockholders' equity		726,823			835,364			263,662		(1,109,482	)				716,367			156,764			120,871			(277,635	)				716,367			(14,082	)		(23,656	)				678,629

Total liabilities and stockholders' equity	$	1,456,152		$	1,516,678		$	1,014,749	$	(1,627,255	)			$	2,360,324		$	508,210		$	792,063		$	(375,085	)			$	3,285,512		$	153,430		$	(133,222	)			$	3,305,720

(a) Balances as of June 30, 2005.

(b) Eliminate investment in subsidiaries and SAC Holding II.

(d) Eliminate gain on sale of property from U-Haul to SAC Holding II.

(e) Elimination related to sale of assets from RepWest to Real Estate during the second quarter.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Consolidating balance sheets by industry segment as of March 31, 2005 are as follows:

	Moving and Storage																	AMERCO Legal Group									AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Eliminations					Moving and Storage Consolidated			Property and Casualty Insurance (a)		Life Insurance (a)		Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated

Assets:	(In thousands)
Cash and cash equivalents	$	14		$	37,626		$	4,327		$	-				$	41,967		$	10,638	$	2,992	$	-				$	55,597		$	358		$	-				$	55,955
Trade receivables, net		-			9,294			26			-					9,320			211,821		15,676		-					236,817			-			-					236,817
Notes and mortgage receivables, net		-			1,020			945			-					1,965			-		-		-					1,965			-			-					1,965
Inventories, net		-			62,489			-			-					62,489			-		-		-					62,489			1,169			-					63,658
Prepaid expenses		4,863			14,865			-			-					19,728			-		-		-					19,728			146			-					19,874
Investments, fixed maturities		-			-			-			-					-			100,028		535,150		-					635,178			-			-					635,178
Investments, other		-			936			8,056			-					8,992			144,839		191,376		-					345,207			-			-					345,207
Deferred policy acquisition costs, net		-			-			-			-					-			1,273		51,270		-					52,543			-			-					52,543
Other assets		14,207			59,582			1,737			-					75,526			3,915		1,611		-					81,052			4,239			-					85,291
Related party assets		452,350			521,162			12,600			(650,371	)	(d	)		335,741			56,479		32,216		(92,042	)	(d	)		332,394			2,202			(81,930	)	(d	)		252,666
		471,434			706,974			27,691			(650,371	)				555,728			528,993		830,291		(92,042	)				1,822,970			8,114			(81,930	)				1,749,154
Investment in subsidiaries		1,236,082			-			-			(966,249	)	(c	)		269,833			-		-		(269,833	)	(c	)		-			-			-					-
Investment in SAC Holding II		(14,659	)		-			-			-					(14,659	)		-		-		-					(14,659	)		-			14,659		(c	)		-
Total investment in subsidiaries and SAC Holding II		1,221,423			-			-			(966,249	)				255,174			-		-		(269,833	)				(14,659	)		-			14,659					-
Property, plant and equipment, at cost:
Land		-			21,265			129,880			-					151,145			-		-		-					151,145			-			-					151,145
Buildings and improvements		-			84,921			601,304			-					686,225			-		-		-					686,225			-			-					686,225
Furniture and equipment		292			247,219			17,705			-					265,216			-		-		-					265,216			-			-					265,216
Rental trailers and other rental equipment		-			199,461			-			-					199,461			-		-		-					199,461			-			-					199,461
Rental trucks		-			1,252,018			-			-					1,252,018			-		-		-					1,252,018			-			-					1,252,018
SAC Holding II - property, plant and equipment (b)		-			-			-			-					-			-		-		-					-			151,806			(74,212	)	(e	)		77,594
		292			1,804,884			748,889			-					2,554,065			-		-		-					2,554,065			151,806			(74,212	)				2,631,659
Less: Accumulated depreciation		(255	)		(1,008,523	)		(269,990	)		-					(1,278,768	)		-		-		-					(1,278,768	)		(7,527	)		9,104		(e	)		(1,277,191	)
Total property, plant and equipment		37			796,361			478,899			-					1,275,297			-		-		-					1,275,297			144,279			(65,108	)				1,354,468
Total assets	$	1,692,894		$	1,503,335		$	506,590		$	(1,616,620	)			$	2,086,199		$	528,993	$	830,291	$	(361,875	)			$	3,083,608		$	152,393		$	(132,379	)			$	3,103,622

(a) Balances as of December 31, 2004.

(b) Included in this caption is land of $56,960, buildings and improvements of $94,620, and furniture and equipment of $226.

(d) Eliminate intercompany receivables and payables.

(e) Eliminate gain on sale of property from U-Haul to SAC Holding II.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Consolidating balance sheets by industry segment as of March 31, 2005 are as follows (continued):

	Moving and Storage																AMERCO Legal Group											AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate		Eliminations					Moving and Storage Consolidated			Property and Casualty Insurance (a)			Life Insurance (a)			Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated

	(In thousands)
Liabilities:
Accounts payable and accrued expenses	$	17,330		$	185,371		$	2,736	$	-				$	205,437		$	-		$	325		$	-				$	205,762		$	1,001		$	-				$	206,763
AMERCO's notes and loans payable		780,008			-			-		-					780,008			-			-			-					780,008			-			-					780,008
SAC Holding II Corporation notes and loans, payable, non-recourse to AMERCO		-			-			-		-					-			-			-			-					-			77,474			-					77,474
Policy benefits and losses, claims and loss expenses payable		-			249,053			-		-					249,053			391,383			164,685			-					805,121			-			-					805,121
Liabilities from investment contracts		-			-			-		-					-			-			503,838			-					503,838			-			-					503,838
Other policyholders' funds and liabilities		-			-			-		-					-			8,669			20,973			-					29,642			-			-					29,642
Deferred income		-			11,716			2		-					11,718			12,143			14,279			-					38,140			603			-					38,743
Deferred income taxes		158,415			-			-		-					158,415			(46,948	)		(1,121	)		-					110,346			(4,973	)		(27,249	)	(d	)		78,124
Related party liabilities		115,499			355,997			249,692		(650,371	)	(c	)		70,817			8,910			12,315			(92,042	)	(c	)		-			92,947			(81,877	)	(c	)		11,070
Total liabilities		1,071,252			802,137			252,430		(650,371	)				1,475,448			374,157			715,294			(92,042	)				2,472,857			167,052			(109,126	)				2,530,783
Stockholders' equity:
Series preferred stock:
Series A preferred stock		-			-			-		-					-			-			-			-					-			-			-					-
Series B preferred stock		-			-			-		-					-			-			-			-					-			-			-					-
Series A common stock		929			-			-		-					929			-			-			-					929			-			-					929
Common stock		9,568			540			1		(541	)	(b	)		9,568			3,300			2,500			(5,800	)	(b	)		9,568			-			-					9,568
Additional paid-in capital		396,415			121,230			147,481		(268,711	)	(b	)		396,415			69,922			16,435			(86,357	)	(b	)		396,415			-			(46,071	)	(d	)		350,344
Accumulated other comprehensive income (loss)		(30,661	)		(33,344	)		-		33,344		(b	)		(30,661	)		2,582			54			(2,636	)	(b	)		(30,661	)		-			-					(30,661	)
Retained earnings		663,483			623,663			106,678		(730,341	)	(b	)		663,483			79,032			96,008			(175,040	)	(b	)		663,483			(14,659	)		22,818		(b,d	)		671,642
Cost of common shares in treasury, net		(418,092	)		-			-		-					(418,092	)		-			-			-					(418,092	)		-			-					(418,092	)
Unearned employee stock ownership plan shares		-			(10,891	)		-		-					(10,891	)		-			-			-					(10,891	)		-			-					(10,891	)
Total stockholders' equity		621,642			701,198			254,160		(966,249	)				610,751			154,836			114,997			(269,833	)				610,751			(14,659	)		(23,253	)				572,839
Total liabilities and stockholders' equity	$	1,692,894		$	1,503,335		$	506,590	$	(1,616,620	)			$	2,086,199		$	528,993		$	830,291		$	(361,875	)			$	3,083,608		$	152,393		$	(132,379	)			$	3,103,622

(a) Balances as of December 31, 2004.

(b) Eliminate investment in subsidiaries and SAC Holding II.

(d) Eliminate gain on sale of property from U-Haul to SAC Holding II.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Consolidating statement of operations by industry segment for the quarter ended September 30, 2005 are as follows:

	Moving and Storage																	AMERCO Legal Group											AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Eliminations					Moving and Storage Consolidated			Property and Casualty Insurance(a)			Life Insurance(a)			Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated
	(Unaudited)
	(In thousands)
Revenues:
Self-moving equipment rentals	$	-		$	446,705		$	-		$	-				$	446,705		$	-		$	-		$	-				$	446,705		$	2,861		$	(2,861	)	(b	)	$	446,705
Self-storage revenues		-			28,379			441			-					28,820			-			-			-					28,820			4,781			-					33,601
Self-moving & self-storage products & service sales		-			57,874			-			-					57,874			-			-			-					57,874			4,618			-					62,492
Property management fees		-			4,578			-			-					4,578			-			-			-					4,578			-			(749	)	(g	)		3,829
Life insurance premiums		-			-			-			-					-			-			30,098			(380	)	(c	)		29,718			-			-					29,718
Property and casualty insurance premiums		-			-			-			-					-			5,399			-			-					5,399			-			-					5,399
Net investment and interest income		1,550			5,978			21			-					7,549			2,658			4,609			(999	)	(d	)		13,817			-			(1,465	)	(d	)		12,352
Other revenue		166			11,045			14,251			(15,605	)	(b	)		9,857			-			1,563			(174	)	(b	)		11,246			352			(178	)	(b	)		11,420
Total revenues		1,716			554,559			14,713			(15,605	)				555,383			8,057			36,270			(1,553	)				598,157			12,612			(5,253	)				605,516
Costs and expenses:
Operating expenses		1,633			291,334			1,550			(15,605	)	(b	)		278,912			2,022			6,802			(3,652	)	(b,c	)		284,084			6,366			(749	)	(g	)		289,701
Commission expenses		-			56,058			-			-					56,058			-			-			-					56,058			-			(2,861	)	(b	)		53,197
Cost of sales		-			28,423			-			-					28,423			-			-			-					28,423			2,494			-					30,917
Benefits and losses		-			-			-			-					-			3,658			20,952			2,099		(c	)		26,709			-			-					26,709
Amortization of deferred policy acquisition costs		-			-			-			-					-			635			5,219			-					5,854			-			-					5,854
Lease expense		22			36,721			13			-					36,756			-			-			-					36,756			-			(178	)	(b	)		36,578
Depreciation, net		8			31,384			2,367			-					33,759			-			-			-					33,759			703			(140	)	(e	)		34,322
Total costs and expenses		1,663			443,920			3,930			(15,605	)				433,908			6,315			32,973			(1,553	)				471,643			9,563			(3,928	)				477,278
Equity in earnings of subsidiaries		84,599			-			-			(81,518	)	(f	)		3,081			-			-			(3,081	)	(f	)		-			-			-					-
Equity in earnings of SAC Holding II		17			-			-			-					17			-			-			-					17			-			(17	)	(f	)		-
Total - equity earnings of subsidiaries and SAC Holding II		84,616			-			-			(81,518	)				3,098			-			-			(3,081	)				17			-			(17	)				-
Earnings from operations		84,669			110,639			10,783			(81,518	)				124,573			1,742			3,297			(3,081	)				126,531			3,049			(1,342	)				128,238
Interest expense (income)		24,676			(10,796	)		(184	)		-					13,696			-			-			-					13,696			3,014			(1,465	)	(d	)		15,245
Pretax earnings		59,993			121,435			10,967			(81,518	)				110,877			1,742			3,297			(3,081	)				112,835			35			123					112,993
Income tax benefit (expense)		9,042			(46,603	)		(4,281	)		-					(41,842	)		(610	)		(1,348	)		-					(43,800	)		(18	)		(53	)	(e	)		(43,871	)
Net earnings		69,035			74,832			6,686			(81,518	)				69,035			1,132			1,949			(3,081	)				69,035			17			70					69,122
Less: Preferred stock dividends		(3,241	)		-			-			-					(3,241	)		-			-			-					(3,241	)		-			-					(3,241	)
Earnings available to common shareholders	$	65,794		$	74,832		$	6,686		$	(81,518	)			$	65,794		$	1,132		$	1,949		$	(3,081	)			$	65,794		$	17		$	70				$	65,881

(a) Balances for the quarter ended June 30, 2005.

(b) Eliminate intercompany lease income and commission income.

(d) Eliminate intercompany interest on debt.

(e) Eliminate gain on sale of surplus property from U-Haul to SAC Holding II.

(f) Eliminate equity earnings in subsidiaries and equity earnings in SAC Holding II.

(g) Eliminate management fees charged to SAC Holding II and other intercompany operating expenses.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Consolidating statement of operations by industry segment for the quarter ended September 30, 2004 are as follows:

	Moving & Storage																	AMERCO Legal Group											AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Eliminations					Moving & Storage Consolidated			Property & Casualty Insurance(a)			Life Insurance(a)			Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated
	(Unaudited)
	(In thousands)
Revenues:
Self-moving equipment rentals	$	-		$	429,156		$	-		$	-				$	429,156		$	-		$	-		$	-				$	429,156		$	2,718		$	(2,718	)	(b	)	$	429,156
Self-storage revenues		-			23,905			453			-					24,358			-			-			-					24,358			4,580			-					28,938
Self-moving & self-storage products & service sales		-			53,638			-			-					53,638			-			-			-					53,638			4,271			-					57,909
Property management fees		-			3,834			-			-					3,834			-			-			-					3,834			-			(725	)	(g	)		3,109
Life insurance premiums		-			-			-			-					-			-			32,405			(370	)	(c	)		32,035			-			-					32,035
Property and casualty insurance premiums		-			-			-			-					-			7,038			-			-					7,038			-			-					7,038
Net investment and interest income		188			5,339			26			-					5,553			3,699			5,480			(863	)	(d	)		13,869			-			(2,394	)	(d	)		11,475
Other revenue		-			8,796			14,103			(15,534	)	(b	)		7,365			-			2,526			(232	)	(b	)		9,659			207			(106	)	(b	)		9,760
Total revenues		188			524,668			14,582			(15,534	)				523,904			10,737			40,411			(1,465	)				573,587			11,776			(5,943	)				579,420

Costs and expenses:
Operating expenses		4,756			285,963			1,617			(15,534	)	(b	)		276,802			982			8,334			(3,392	)	(b,c	)		282,726			5,446			(725	)	(g	)		287,447
Commission expenses		-			54,572			-			-					54,572			-			-			-					54,572			-			(2,718	)	(b	)		51,854
Cost of sales		-			27,227			-			-					27,227			-			-			-					27,227			1,289			-					28,516
Benefits and losses		-			-			-			-					-			7,869			23,585			1,927		(c	)		33,381			-			-					33,381
Amortization of deferred policy acquisition costs		-			-			-			-					-			1,783			5,995			-					7,778			-			-					7,778
Lease expense		22			36,428			4			-					36,454			-			-			-					36,454			-			(106	)	(b	)		36,348
Depreciation, net		10			27,386			2,005			-					29,401			-			-			-					29,401			642			(140	)	(e	)		29,903
Total costs and expenses		4,788			431,576			3,626			(15,534	)				424,456			10,634			37,914			(1,465	)				471,539			7,377			(3,689	)				475,227

Equity in earnings of subsidiaries		68,047			-			-			(66,325	)	(f	)		1,722			-			-			(1,722	)	(f	)		-			-			-					-
Equity in earnings of SAC Holding II		200			-			-			-					200			-			-			-					200			-			(200	)	(f	)		-
Total - equity earnings of subsidiaries and SAC Holding II		68,247			-			-			(66,325	)				1,922			-			-			(1,722	)				200			-			(200	)				-
Earnings from operations		63,647			93,092			10,956			(66,325	)				101,370			103			2,497			(1,722	)				102,248			4,399			(2,454	)				104,193
Interest expense (income)		19,539			(8,030	)		4,977			-					16,486			-			-			-					16,486			3,968			(2,394	)	(d	)		18,060
Pretax earnings		44,108			101,122			5,979			(66,325	)				84,884			103			2,497			(1,722	)				85,762			431			(60	)				86,133
Income tax benefit (expense)		8,864			(38,366	)		(2,410	)		-					(31,912	)		(29	)		(849	)		-					(32,790	)		(231	)		(53	)	(e	)		(33,074	)
Net earnings		52,972			62,756			3,569			(66,325	)				52,972			74			1,648			(1,722	)				52,972			200			(113	)				53,059
Less: Preferred stock dividends		(3,241	)		-			-			-					(3,241	)		-			-			-					(3,241	)		-			-					(3,241	)
Earnings available to common shareholders	$	49,731		$	62,756		$	3,569		$	(66,325	)			$	49,731		$	74		$	1,648		$	(1,722	)			$	49,731		$	200		$	(113	)			$	49,818

(a) Balances for the quarter ended June 30, 2004.

(b) Eliminate intercompany lease income and commission income.

(d) Eliminate intercompany interest on debt.

(e) Eliminate gain on sale of surplus property from U-Haul to SAC Holding II.

(f) Eliminate equity earnings of subsidiaries and equity earnings in SAC Holding II.

(g) Eliminate management fees charged to SAC Holding II and other intercompany operating expenses.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Consolidating statements of operations by industry for the six months ended September 30, 2005 are as follows:

	Moving and Storage																	AMERCO Legal Group											AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Eliminations					Moving and Storage Consolidated			Property and Casualty Insurance(a)			Life Insurance(a)			Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated
	(Unaudited)
	(In thousands)
Revenues:
Self-moving equipment rentals	$	-		$	847,965		$	-		$	-				$	847,965		$	-		$	-		$	-				$	847,965		$	5,349		$	(5,349	)	(b	)	$	847,965
Self-storage revenues		-			52,172			896			-					53,068			-			-			-					53,068			9,301			-					62,369
Self-moving & self-storage products & service sales		-			119,672			-			-					119,672			-			-			-					119,672			9,383			-					129,055
Property management fees		-			9,746			-			-					9,746			-			-			-					9,746			-			(1,477	)	(g	)		8,269
Life insurance premiums		-			-			-			-					-			-			60,064			(757	)	(c	)		59,307			-			-					59,307
Property and casualty insurance premiums		-			-			-			-					-			10,223			-			-					10,223			-			-					10,223
Net investment and interest income		2,962			10,716			25			-					13,703			6,143			11,275			(1,997	)	(d	)		29,124			-			(3,058	)	(d	)		26,066
Other revenue		175			21,061			28,714			(31,158	)	(b	)		18,792			-			3,004			(359	)	(b	)		21,437			638			(355	)	(b	)		21,720
Total revenues		3,137			1,061,332			29,635			(31,158	)				1,062,946			16,366			74,343			(3,113	)				1,150,542			24,671			(10,239	)				1,164,974

Costs and expenses:
Operating expenses		5,030			557,609			3,141			(31,158	)	(b	)		534,622			4,422			14,190			(7,152	)	(b,c	)		546,082			11,888			(1,477	)	(g	)		556,493
Commission expenses		-			106,564			-			-					106,564			-			-			-					106,564			-			(5,349	)	(b	)		101,215
Cost of sales		-			57,710			-			-					57,710			-			-			-					57,710			4,251			-					61,961
Benefits and losses		-			-			-			-					-			7,131			42,853			4,039		(c	)		54,023			-			-					54,023
Amortization of deferred policy acquisition costs		-			-			-			-					-			1,489			10,563			-					12,052			-			-					12,052
Lease expense		41			70,157			30			-					70,228			-			-			-					70,228			-			(355	)	(b	)		69,873
Depreciation, net		15			62,901			4,491			-					67,407			-			-			-					67,407			1,432			(280	)	(e	)		68,559
Total costs and expenses		5,086			854,941			7,662			(31,158	)				836,531			13,042			67,606			(3,113	)				914,066			17,571			(7,461	)				924,176
Equity in earnings of subsidiaries		149,881			-			-			(143,335	)	(f	)		6,546			-			-			(6,546	)	(f	)		-			-			-					-
Equity in earnings of SAC Holding II		577			-			-			-					577			-			-			-					577			-			(577	)	(f	)		-
Total - equity earnings of subsidiaries and SAC Holding II		150,458			-			-			(143,335	)				7,123			-			-			(6,546	)				577			-			(577	)				-
Earnings from operations		148,509			206,391			21,973			(143,335	)				233,538			3,324			6,737			(6,546	)				237,053			7,100			(3,355	)				240,798
Interest expense (income)		35,824			(10,118	)		6,089			-					31,795			-			-			-					31,795			6,144			(3,058	)	(d	)		34,881
Fees on early extinguishment of debt		35,627			-			-			-					35,627			-			-			-					35,627			-			-					35,627
Pretax earnings		77,058			216,509			15,884			(143,335	)				166,116			3,324			6,737			(6,546	)				169,631			956			(297	)				170,290
Income tax benefit (expense)		26,952			(82,676	)		(6,382	)		-					(62,106	)		(1,164	)		(2,351	)		-					(65,621	)		(379	)		(106	)	(e	)		(66,106	)
Net earnings		104,010			133,833			9,502			(143,335	)				104,010			2,160			4,386			(6,546	)				104,010			577			(403	)				104,184
Less: Preferred stock dividends		(6,482	)		-			-			-					(6,482	)		-			-			-					(6,482	)		-			-					(6,482	)
Earnings available to common shareholders	$	97,528		$	133,833		$	9,502		$	(143,335	)			$	97,528		$	2,160		$	4,386		$	(6,546	)			$	97,528		$	577		$	(403	)			$	97,702

(a) Balances for the six months ended June 30, 2005.

(b) Eliminate intercompany lease income and commission income.

(d) Eliminate intercompany interest on debt.

(e) Eliminate gain on sale of surplus property from U-Haul to SAC Holding II.

(f) Eliminate equity earnings in subsidiaries and equity earnings in SAC Holding II.

(g) Eliminate management fees charged to SAC Holding II and other intercompany operating expenses.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Consolidating statements of operations by industry for the six months ended September 30, 2004 are as follows:

	Moving & Storage																	AMERCO Legal Group											AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Eliminations					Moving & Storage Consolidated			Property & Casualty Insurance(a)			Life Insurance(a)			Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated
	(Unaudited)
	(In thousands)
Revenues:
Self-moving equipment rentals	$	-		$	818,819		$	79		$	-				$	818,898		$	-		$	-		$	-				$	818,898		$	5,127		$	(5,127	)	(b	)	$	818,898
Self-storage revenues		-			49,547			1,121			-					50,668			-			-			-					50,668			8,845			-					59,513
Self-moving & self-storage products & service sales		-			110,650			15			-					110,665			-			-			-					110,665			8,608			-					119,273
Property management fees		-			7,488			-			-					7,488			-			-			-					7,488			-			(1,397	)	(g	)		6,091
Life insurance premiums		-			-			-			-					-			-			66,037			(743	)	(c	)		65,294			-			-					65,294
Property and casualty insurance premiums		-			-			-			-					-			16,840			-			-					16,840			-			-					16,840
Net investment and interest income		4,954			11,299			54			-					16,307			8,236			11,661			(3,056	)	(d	)		33,148			-			(4,097	)	(d	)		29,051
Other revenue		3			15,099			28,163			(31,011	)	(b	)		12,254			-			5,354			(390	)	(b	)		17,218			542			(355	)	(b	)		17,405
Total revenues		4,957			1,012,902			29,432			(31,011	)				1,016,280			25,076			83,052			(4,189	)				1,120,219			23,122			(10,976	)				1,132,365

Costs and expenses:
Operating expenses		11,527			555,691			3,647			(31,011	)	(b	)		539,854			1,557			16,605			(8,650	)	(b,c	)		549,366			11,389			(1,397	)	(g	)		559,358
Commission expenses		-			103,894			-			-					103,894			-			-			-					103,894			-			(5,127	)	(b	)		98,767
Cost of sales		-			53,235			8			-					53,243			-			-			-					53,243			3,013			-					56,256
Benefits and losses		-			-			-			-					-			17,897			47,694			4,461		(c	)		70,052			-			-					70,052
Amortization of deferred policy acquisition costs		-			-			-			-					-			5,153			12,583			-					17,736			-			-					17,736
Lease expense		44			77,167			27			-					77,238			-			-			-					77,238			-			(355	)	(b	)		76,883
Depreciation, net		17			53,851			3,084			-					56,952			-			-			-					56,952			1,260			(280	)	(e	)		57,932
Total costs and expenses		11,588			843,838			6,766			(31,011	)				831,181			24,607			76,882			(4,189	)				928,481			15,662			(7,159	)				936,984

Equity in earnings of subsidiaries		123,071			-			-			(118,741	)	(f	)		4,330			-			-			(4,330	)	(f	)		-			-			-					-
Equity in earnings of SAC Holding II		77			-			-			-					77			-			-			-					77			-			(77	)	(f	)		-
Total - equity earnings of subsidiaries and SAC Holding II		123,148			-			-			(118,741	)				4,407			-			-			(4,330	)				77			-			(77	)				-
Earnings from operations		116,517			169,064			22,666			(118,741	)				189,506			469			6,170			(4,330	)				191,815			7,460			(3,894	)				195,381
Interest expense (income)		34,210			(6,904	)		6,624			-					33,930			-			-			-					33,930			7,231			(4,097	)	(d	)		37,064
Pretax earnings		82,307			175,968			16,042			(118,741	)				155,576			469			6,170			(4,330	)				157,885			229			203					158,317
Income tax benefit (expense)		14,997			(66,889	)		(6,380	)		-					(58,272	)		(157	)		(2,152	)		-					(60,581	)		(152	)		(106	)	(e	)		(60,839	)
Net earnings		97,304			109,079			9,662			(118,741	)				97,304			312			4,018			(4,330	)				97,304			77			97					97,478
Less: Preferred stock dividends		(6,482	)		-			-			-					(6,482	)		-			-			-					(6,482	)		-			-					(6,482	)
Earnings available to common shareholders	$	90,822		$	109,079		$	9,662		$	(118,741	)			$	90,822		$	312		$	4,018		$	(4,330	)			$	90,822		$	77		$	97				$	90,996

(a) Balances for the six months ended June 30, 2004.

(b) Eliminate intercompany lease income and commission income.

(d) Eliminate intercompany interest on debt.

(e) Eliminate gain on sale of surplus property from U-Haul to SAC Holding II.

(f) Eliminate equity earnings of subsidiaries and equity earnings in SAC Holding II.

(g) Eliminate management fees charged to SAC Holding II and other intercompany operating expenses.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Consolidating cash flow statements by industry segment for the six months ended September 30, 2005 are as follows:

	Moving and Storage															AMERCO Legal Group												AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Elimination			Moving and Storage Consolidated			Property and Casualty Insurance (a)			Life Insurance(a)			Elimination			AMERCO Consolidated			SAC Holding II			Elimination			Total Consolidated
	(Unaudited)
Cash flows from operating activities:	(In thousands)
Net earnings (loss)	$	104,010		$	133,833		$	9,502		$	(143,335	)	$	104,010		$	2,160		$	4,386		$	(6,546	)	$	104,010		$	577		$	(403	)	$	104,184
Earnings from consolidated entities		(150,458	)		-			-			143,335			(7,123	)		-			-			6,546			(577	)		-			577			-
Depreciation		15			56,960			4,491			-			61,466			-			-			-			61,466			1,432			(280	)		62,618
Amortization of deferred policy acquistion costs		-			-			-			-			-			1,852			11,611			-			13,463			-			-			13,463
Change in provision for losses on trade receivables		-			(620	)		-			-			(620	)		-			-			-			(620	)		-			-			(620	)
Reduction of inventory reserves		-			(1,000	)		-			-			(1,000	)		-			-			-			(1,000	)		-			-			(1,000	)
Net (gain) loss on sale of real and personal property		-			5,941			-			-			5,941			(70	)		-			-			5,871			-			-			5,871
Net (gain) loss on sale of investments		-			-			-			-			-			794			689			-			1,483			-			-			1,483
Deferred income taxes		44,993			-			-			-			44,993			1,039			(702	)		-			45,330			370			159			45,859
Net change in other operating assets and liabilities:
Trade receivables		-			(6,237	)		3			-			(6,234	)		7,643			2,412			-			3,821			-			-			3,821
Inventories		-			(5,009	)		-			-			(5,009	)		-			-			-			(5,009	)		(114	)		-			(5,123	)
Prepaid expenses		(1,774	)		(778	)		-			-			(2,552	)		-			-			-			(2,552	)		133			-			(2,419	)
Capitalization of deferred policy acquisition costs		-			-			-			-			-			(1,490	)		-			-			(1,490	)		-			-			(1,490	)
Other assets		13,970			11,396			(13,150	)		-			12,216			167			481			-			12,864			(784	)		-			12,080
Related party assets		380,996			(461	)		1,227			(389,978	)		(8,216	)		2,040			166			2,155			(3,855	)		602			546			(2,707	)
Accounts payable and accrued expenses		(9,035	)		2,429			4,765			-			(1,841	)		(231	)		(2,290	)		4,858			496			652			-			1,148
Policy benefits and losses, claims and loss expenses payable		-			29,348			-			-			29,348			(23,787	)		(8,502	)		-			(2,941	)		-			-			(2,941	)
Other policyholder's funds and liabilities		-			-			-			-			-			327			(10,112	)		-			(9,785	)		-			-			(9,785	)
Deferred income		-			3,453			-			-			3,453			-			-			(2,842	)		611			127			-			738
Related party liabilities		(9,626	)		(284,635	)		(94,914	)		389,978			803			(290	)		818			(2,566	)		(1,235	)		(307	)		(599	)		(2,141	)
Net cash provided (used) by operating activities		373,091			(55,380	)		(88,076	)		-			229,635			(9,846	)		(1,043	)		1,605			220,351			2,688			-			223,039
Cash flows from investing activities:
Purchases of:
Property, plant and equipment		-			(80,601	)		(41,773	)		-			(122,374	)		-			-			-			(122,374	)		(382	)		-			(122,756	)
Short term investments		-			-			-			-			-			(98,015	)		(121,760	)		-			(219,775	)		(705	)		-			(220,480	)
Fixed maturities investments		-			-			-			-			-			(31,432	)		(129,670	)		-			(161,102	)		-			-			(161,102	)
Equity securities		-			-			-			-			-			-			-			-			-			-			-			-
Real estate		-			-			-			-			-			-			-			-			-			-			-			-
Mortgage loans		-			-			-			-			-			-			(1,250	)		-			(1,250	)		-			-			(1,250	)
Proceeds from sales of:
Property, plant and equipment		-			30,264			5			-			30,269			-			-			-			30,269			-			-			30,269
Short term investments		-			-			-			-			-			110,674			197,473			-			308,147			-			-			308,147
Fixed maturities investments		-			-			-			-			-			21,235			72,897			-			94,132			-			-			94,132
Equity securities		-			-			-			-			-			-			9,250			-			9,250			-			-			9,250
Preferred stock		-			-			-			-			-			7,842			-			-			7,842			-			-			7,842
Real estate		-			-			-			-			-			332			514			35,156			36,002			-			-			36,002
Mortgage loans		-			-			-			-			-			-			4,823			-			4,823			-			-			4,823
Payments from notes and mortgage receivables		-			(441	)		37			-			(404	)		-			-			-			(404	)		-			-			(404	)
Net cash provided (used) by investing activities		-			(50,778	)		(41,731	)		-			(92,509	)		10,636			32,277			35,156			(14,440	)		(1,087	)		-			(15,527	)

page 1 of 2

(a) Balance for the six months ended June 30, 2005.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	Moving and Storage														AMERCO Legal Group										AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Elimination		Moving and Storage Consolidated			Property and Casualty Insurance (a)		Life Insurance(a)			Elimination		AMERCO Consolidated			SAC Holding II			Elimination		Total Consolidated
	(Unaudited)
Cash flows from financing activities:	(In thousands)
Borrowings from credit facilities		80,266			139,557			948,495			-		1,168,318			-		-			-		1,168,318			-			-		1,168,318
Principal repayments on credit facilities		(860,274	)		(17,981	)		(204,908	)		-		(1,083,163	)		-		-			-		(1,083,163	)		(584	)		-		(1,083,747	)
Debt issuance costs					(698	)		(24,547	)				(25,245	)									(25,245	)							(25,245	)
Leveraged Employee Stock Ownership Plan - repayments from loan		-			435			-			-		435			-		-			-		435			-			-		435
Proceeds from (repayment of) intercompany loans		413,393			180,051			(593,444	)		-		-			-		-			-		-			-			-		-
Preferred stock dividends paid		(6,482	)		-			-			-		(6,482	)		-		-			-		(6,482	)		-			-		(6,482	)
Investment contract deposits		-			-			-			-		-			-		10,405			-		10,405			-			-		10,405
Investment contract withdrawals		-			-			-			-		-			-		(38,018	)		-		(38,018	)		-			-		(38,018	)
Net cash provided by financing activities		(373,097	)		301,364			125,596			-		53,863			-		(27,613	)		-		26,250			(584	)		-		25,666

Increase (decrease) in cash and cash equivalents		(6	)		195,206			(4,211	)		-		190,989			790		3,621			36,761		232,161			1,017			-		233,178
Cash and cash equivalents at beginning of year		14			37,626			4,327			-		41,967			10,638		2,992			-		55,597			358			-		55,955
Cash and cash equivalents at end of year	$	8		$	232,832		$	116		$	-	$	232,956		$	11,428	$	6,613		$	36,761	$	287,758		$	1,375		$	-	$	289,133

page 2 of 2

(a) Balance for the six months ended June 30, 2005,

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Consolidating cash flow statements by industry segment for the six months ended September 30, 2004 are as follows:

	Moving and Storage															AMERCO Legal Group												AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Elimination			Moving and Storage Consolidated			Property and Casualty Insurance (a)			Life Insurance a)			Elimination			AMERCO Consolidated			SAC Holding II			Elimination			Total Consolidated
	(Unaudited)
Cash flows from operating activities:	(In thousands)
Net earnings (loss)	$	97,304		$	109,079		$	9,662		$	(118,741	)	$	97,304		$	312		$	4,018		$	(4,330	)	$	97,304		$	77		$	97		$	97,478
Earnings from consolidated entities		(112,271	)		-			-			118,523			6,252			-			-			(6,329	)		(77	)		-			77			-
Depreciation		17			51,149			4,309			-			55,475			-			-			-			55,475			1,260			(280	)		56,455
Amortization of deferred policy acquisition costs		-			-			-			-			-			5,153			13,563			-			18,716			-			-			18,716
Change in provision for losses on trade receivables		-			102			-			-			102			-			-			-			102			-			-			102
Net (gain) loss on sale of real and personal property		-			2,702			(1,225	)		-			1,477			(242	)		-			-			1,235			-			-			1,235
Net (gain) loss on sale of investments		-			-			-			-			-			(127	)		171			-			44			-			-			44
Deferred income taxes		55,443			-			-			-			55,443			(1,504	)		(4,477	)		-			49,462			144			106			49,712
Net change in other operating assets and liabilities:
Trade receivables		-			(3,308	)		(1,483	)		-			(4,791	)		20,691			1,429			-			17,329			-			-			17,329
Inventories		-			(2,852	)		-			-			(2,852	)		-			-			-			(2,852	)		(222	)		-			(3,074	)
Prepaid expenses		(2,613	)		(827	)		2			-			(3,438	)		-			-			-			(3,438	)		(193	)		-			(3,631	)
Capitalization of deferred policy acquisition costs		-			-			-			-			-			(3,456	)		(3,276	)		-			(6,732	)		-			-			(6,732	)
Other assets		4,527			(24,798	)		(1,765	)		-			(22,036	)		1,149			220			-			(20,667	)		(303	)		-			(20,970	)
Related party assets		(56,548	)		(6,498	)		674			55,845			(6,527	)		8,252			-			(5,774	)		(4,049	)		(1,000	)		809			(4,240	)
Accounts payable and accrued expenses		(9,756	)		5,085			1,173			218			(3,280	)		(734	)		-			10,659			6,645			664			-			7,309
Policy benefits and losses, claims and loss expenses payable		-			25,857			-			-			25,857			(50,670	)		(7,012	)		-			(31,825	)		-			-			(31,825	)
Other policyholder's funds and liabilities		-			-			-			-			-			(2,597	)		(2,002	)		-			(4,599	)		-			-			(4,599	)
Deferred income		-			(2,019	)		(34	)		-			(2,053	)		-			-			-			(2,053	)		22			-			(2,031	)
Related party liabilities		(61	)		50,739			-			(55,845	)		(5,167	)		320			1,768			5,640			2,561			9			(809	)		1,761
Net cash provided (used) by operating activities		(23,958	)		204,411			11,313			-			191,766			(23,453	)		4,402			(134	)		172,581			458			-			173,039
Cash flows from investing activities:
Purchases of:
Property, plant and equipment		(6	)		(160,334	)		(1,114	)		-			(161,454	)		-			-			-			(161,454	)		(239	)		-			(161,693	)
Short term investments		-			-			-			-			-			(97,627	)		-			-			(97,627	)		-			-			(97,627	)
Fixed maturities investments		-			-			-			-			-			(1,438	)		(57,978	)		-			(59,416	)		-			-			(59,416	)
Other asset investments, net		-			(1,387	)		-			-			(1,387	)		-			-			-			(1,387	)		-			-			(1,387	)
Equity securities		-			-			-			-			-			-			(6,765	)		-			(6,765	)		-			-			(6,765	)
Proceeds from sales of:
Property, plant and equipment		-			216,192			1,847			-			218,039			-			-			-			218,039			-			-			218,039
Short term investments		-			-			-			-			-			98,188			-			-			98,188			-			-			98,188
Fixed maturities investments		-			-			-			-			-			15,483			47,919			-			63,402			-			-			63,402
Preferred stock		-			-			-			-			-			11,881			2,708			-			14,589			-			-			14,589
Other asset investments, net		-			-			-			-			-			-			44,989			-			44,989			-			-			44,989
Real estate		-			-			-			-			-			1,964			-			-			1,964			-			-			1,964
Mortgage loans		-			-			-			-			-			-			1,913			-			1,913			-			-			1,913
Notes and mortgage receivables		-			(2,192	)		35			-			(2,157	)		-			-			-			(2,157	)		-			-			(2,157	)
Net cash provided (used) by investing activities		(6	)		52,279			768			-			53,041			28,451			32,786			-			114,278			(239	)		-			114,039

page 1 of 2

(a) Balance for the six months ended June 30, 2004.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	Moving and Storage														AMERCO Legal Group										AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Elimination		Moving and Storage Consolidated			Property and Casualty Insurance (a)		Life Insurance(a)			Elimination		AMERCO Consolidated			SAC Holding II			Elimination		Total Consolidated
	(Unaudited)
Cash flows from financing activities:	(In thousands)
Borrowings from credit facilities		14,385			-			-			-		14,385			-		-			-		14,385			-			-		14,385
Principal repayments on credit facilities		(180,057	)		-			-			-		(180,057	)		-		-			-		(180,057	)		(536	)		-		(180,593	)
Leveraged Employee Stock Ownership Plan - repayments from loan		-			428			-			-		428			-		-			-		428			-			-		428
Payoff of capital leases		-			(99,607	)		-			-		(99,607	)		-		-			-		(99,607	)		-			-		(99,607	)
Proceeds from (repayment of) intercompany notes payable		(134	)		-			-			-		(134	)		-		-			134		-			-			-		-
Proceeds from (repayment of) intercompany loans		199,509			(187,750	)		(11,759	)		-		-			-		-			-		-			-			-		-
Preferred stock dividends paid		(9,723	)		-			-			-		(9,723	)		-		-			-		(9,723	)		-			-		(9,723	)
Investment contract deposits		-			-			-			-		-			-		13,427			-		13,427			-			-		13,427
Investment contract withdrawals		-			-			-			-		-			-		(61,193	)		-		(61,193	)		-			-		(61,193	)
Net cash provided by financing activities		23,980			(286,929	)		(11,759	)		-		(274,708	)		-		(47,766	)		134		(322,340	)		(536	)		-		(322,876	)

Increase (decrease) in cash and cash equivalents		16			(30,239	)		322			-		(29,901	)		4,998		(10,578	)		-		(35,481	)		(317	)		-		(35,798	)
Cash and cash equivalents at beginning of year		-			64,717			661			-		65,378			-		15,168			-		80,546			1,011			-		81,557
Cash and cash equivalents at end of year	$	16		$	34,478		$	983		$	-	$	35,477		$	4,998	$	4,590		$	-	$	45,065		$	694		$	-	$	45,759

page 2 of 2

(a) Balance for the six months ended June 30, 2004.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

10. Industry Segment and Geographic Area Data

	United States		Canada			Consolidated
	(Unaudited)
	(All amounts are in thousands of U.S. $'s)
Quarter Ended September 30, 2005
Total revenues	$	587,108	$	18,408		$	605,516
Depreciation and amortization, net		39,326		850			40,176
Interest expense (income)		18,163		(2,918	)		15,245
Pretax earnings		109,260		3,733			112,993
Income tax expense		43,847		24			43,871
Identifiable assets		3,231,345		74,375			3,305,720

Quarter Ended September 30, 2004
Total revenues	$	563,361	$	16,059		$	579,420
Depreciation and amortization, net		36,489		1,192			37,681
Interest expense (income)		18,070		(10	)		18,060
Pretax earnings		83,190		2,943			86,133
Income tax expense		33,074		-			33,074
Identifiable assets		3,104,125		70,099			3,174,224

	United States		Canada			Consolidated
	(Unaudited)
	(All amounts are in thousands of U.S. $'s)
Six Months Ended September 30, 2005
Total revenues	$	1,132,185	$	32,789		$	1,164,974
Depreciation and amortization, net		78,130		2,481			80,611
Interest expense (income)		37,803		(2,922	)		34,881
Pretax earnings		163,688		6,602			170,290
Income tax expense		66,082		24			66,106
Identifiable assets		3,231,345		74,375			3,305,720

Six Months Ended September 30, 2004
Total revenues	$	1,101,893	$	30,472		$	1,132,365
Depreciation and amortization, net		73,275		2,393			75,668
Interest expense (income)		37,076		(12	)		37,064
Pretax earnings		152,493		5,824			158,317
Income tax expense		60,839		-			60,839
Identifiable assets		3,104,125		70,099			3,174,224

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

We begin Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) with the overall strategy of AMERCO, followed by a description of our business segments and the strategy of our business segments to give the reader an overview of the goals of our business and the direction in which our businesses and products are moving. This is followed by a discussion of the Critical Accounting Estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results. In the next section, we discuss our Results of Operations for the second quarter and six months ending September 30, 2005 compared with the same periods last year beginning with an overview. We then provide an analysis of changes in our balance sheet and cash flows, and discuss our financial commitments in the sections entitled “Liquidity and Capital Resources”. We conclude this MD&A by discussing our outlook for the remainder of fiscal 2006.

This MD&A should be read in conjunction with the financial statements included in this Quarterly Report on Form 10-Q. The various sections of this MD&A contain a number of forward looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risk factors described throughout this filing and particularly under the caption “Risk Factors” in this section. Our actual results may differ materially from these forward looking statements.

Overall Strategy

Our overall strategy is to maintain our leadership position in the North American “do-it-yourself” moving and storage industry. We plan to accomplish this by providing a seamless and integrated supply chain to the “do-it-yourself” moving and storage market. As part of executing 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.

Our primary focus is to provide our customers with a wide selection of moving rental equipment, convenient self-storage rental facilities and related moving and self-storage products and services. We are able to expand our distribution and improve customer service by increasing the amount of moving 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.

During 2003, RepWest decided to focus its activities on providing and administering property and casualty insurance to U-Haul, its customers, its independent dealers and affiliates. We believe this will enable RepWest to focus its core competencies and financial resources to better support our overall strategy by exiting its non-U-Haul lines of business.

Oxford’s business strategy is long-term capital growth through direct writing and reinsuring of annuity, life and Medicare supplement products. Oxford is pursuing this growth strategy of increased direct writing via acquisitions of insurance companies, expanded distribution channels and product development.

Description of Operating Segments

AMERCO has four reportable segments. They are Moving and Storage Operations (AMERCO, U-Haul and Real Estate), Property and Casualty Insurance, Life Insurance and SAC Holding II.

Moving and Storage Operating Segment

Our Moving and Self-Storage Operating Segment consists of the rental of trucks, trailers and self-storage spaces to the household mover as well as sales of moving supplies, trailer hitches and propane. Operations are conducted under the registered trade name U-Haul^® throughout the United States and Canada.

With respect to our truck, trailer and self-storage rental business, we are focused on expanding our dealer network, which provides added convenience for our customers and expanding the selection and availability of rental equipment to satisfy the needs of our customers.

With respect to our retail sales of product, U-Haul continues in its role as America’s leading hitch installer. Each year, more than a million customers visit our locations for expertise on complete towing systems, trailer rentals and the latest in towing accessories. In addition, U-Haul has developed specialty boxes to protect customers personal possessions including antiques, fine china, wine bottles, electronics, pictures and much more.

eMove is an online marketplace that connects consumers to a network of over 6,000 independent sellers of Moving Help® and Self-Storage services. Our network of customer rated Affiliates provide pack and load help, cleaning help, self-storage and more, all over North America.

An individual or a company can connect to the eMove network by becoming an eMove Moving Help® Affiliate or an eMove Storage Affiliate. Moving Helpers assist customers with packing, loading, cleaning and unloading their truck or storage unit. A Moving Help® phone access system was launched in September 2004 and has already serviced over 35,000 customers in its first year. 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, S.O.A.R® rentals, co-branded rental trucks, savings on insurance, credit card processing and more. Over 3,000 facilities are now registered on the eMove network.

With over 50,000 unedited reviews of independent vendors, the marketplace has facilitated over 100,000 Moving Help® and Self-Storage transactions all over North America. We believe that acting as an intermediary, with little added investment, serves the customer in a cost effective manner. Our goal is to further utilize our web-based technology platform to increase service to consumers and businesses in the moving and storage market.

Property and Casualty Insurance Operating Segment

RepWest provides loss adjusting and claims handling for U-Haul through regional offices across North America. RepWest also provides components of the Safemove, Safetow and Safestor protection packages to U-Haul customers. We continue to focus on increasing the penetration of these products. The business plan for RepWest includes offering property and casualty products in other U-Haul related programs.

Life Insurance Operating Segment

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

SAC Holdings Operating Segment

SAC Holding Corporation and its subsidiaries, and SAC Holding II Corporation and its subsidiaries, collectively referred to as “SAC Holdings”, own self-storage properties that are managed by U-Haul under property management agreements and act as independent U-Haul rental equipment dealers. AMERCO, through its subsidiaries, has contractual interests in certain of SAC Holdings’ properties entitling AMERCO to potential future income based on the financial performance of these properties. With respect to SAC Holding II Corporation, AMERCO is considered the primary beneficiary of these contractual interests. Consequently, we include the results of SAC Holdings II Corporation in the consolidated financial statements of AMERCO, as required by FIN 46(R).

Critical Accounting Policies and Estimates

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. Accounting policies are considered critical when they are significant and involve difficult, subjective or complex judgments or estimates. Certain accounting policies require us to make difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The accounting policies that we deem most critical to us and that require management’s most difficult and subjective judgments include our principles of consolidation, the recoverability of property, plant and equipment, the adequacy of insurance reserves, the recognition and measurement of impairments for investments, and the recognition and measurement of income tax assets and liabilities.

We discuss these policies further in the following sections, as well as the estimates and judgments that are involved. The estimates are based on historical experience, observance of trends in particular areas, information and 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 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.

Principles of Consolidation

The condensed consolidated financial statements for the second quarter and first six months of fiscal 2006 and fiscal 2005 and the balance sheet as of March 31, 2005, include the accounts of AMERCO, its wholly owned subsidiaries and SAC Holding II Corporation and its subsidiaries.

In fiscal 2003 and fiscal 2002, SAC Holding Corporation and SAC Holding II Corporation (together, “SAC Holdings”) were considered special purpose entities and were consolidated based on the provisions of Emerging Issues Task Force (EITF) Issue No. 90-15.

In fiscal 2004, the Company applied Financial Interpretation No. 46(R) (“FIN 46(R)”) to its interests in SAC Holdings. Initially, the Company concluded that SAC Holdings were variable interest entities (VIE’s) and that the Company was the primary beneficiary. Accordingly, the Company continued to include SAC Holdings in its consolidated financial statements.

Under the provisions of FIN 46(R), certain changes in the operations of a variable interest entity or its relationship with the primary beneficiary constitute re-determination events and require a reassessment of the variable interest on the basis of the most current facts and circumstances to determine whether or not a company is a variable interest entity, which other company(s) have a variable interest in the variable interest entity and whether or not the reporting company’s variable interest in such variable interest entity make it the primary beneficiary. These determinations and re-determinations require that assumptions be made to estimate the value of the entity and a judgment be made as to whether or not the entity has the financial strength to fund its own operations and execute its business plan without the subordinated financial support of another company.

In February, 2004, SAC Holding Corporation restructured the indebtedness of three subsidiaries and then distributed its interest in those subsidiaries to its sole shareholder. This triggered a requirement to reassess AMERCO’s involvement with those subsidiaries, which led to the conclusion that based on the current contractual and ownership interests between AMERCO and this entity, AMERCO ceased to have a variable interest in those three subsidiaries at that date.

Separately, in March 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 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, at the dates AMERCO ceased to have a variable interest in or ceased to be the primary beneficiary of SAC Holding Corporation and its current or former subsidiaries, it deconsolidated those entities. The deconsolidation was accounted for as a distribution of AMERCO’s interests to the sole shareholder of the SAC entities. Because of AMERCO’s continuing involvement with SAC Holding Corporation and its current and former subsidiaries, the distributions do not qualify as discontinued operations as defined by SFAS No. 144.

It 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.

Similarly, SAC Holding II Corporation 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 our variable interest in SAC Holding II Corporation. Should we cease to be the primary beneficiary, we would be required to de-consolidate some or all of our variable interest in SAC Holding II Corporation from our financial statements.

Recoverability of Property, Plant and Equipment

Property, plant and equipment are stated at cost. Interest cost incurred during the initial construction of buildings or rental equipment is considered part of cost. Depreciation is computed for financial reporting purposes principally using the straight-line method over the following estimated useful lives: rental equipment 2-20 years and buildings and non-rental equipment 3-55 years. Major overhauls to rental equipment are capitalized and are amortized over the estimated period benefited. Routine maintenance costs are charged to operating expense as they are incurred. Gains and losses on dispositions of property, plant and equipment are netted against depreciation expense when realized. Depreciation is recognized in amounts expected to result in the recovery of estimated residual values upon disposal, i.e., no gains or losses.

We regularly perform reviews to determine whether facts and circumstances exist which indicate that the carrying amount of assets, including estimates of residual value, may not be recoverable or that the useful life of assets is shorter or longer than originally estimated. We assess the recoverability of our assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. If assets are determined to be recoverable, but the useful lives are shorter or longer than originally estimated, the net book value of these assets are depreciated over the newly determined remaining useful lives.

Insurance Reserves

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

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 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 consequence of the long tail nature of the assumed reinsurance and the excess workers compensation lines of insurance that were written by RepWest is that it takes a number of years for claims to be fully reported and finally settled. Also, the severity of the commercial transportation and the commercial multiple peril programs can fluctuate unexpectedly. During 2004 and 2003 these lines experienced an increase in claim severity that was materially different than the previous year’s actuarial estimations.

Investments

For investments accounted for under SFAS No. 115, in determining if and when a decline in market value below amortized cost is other than temporary, quoted market prices, dealer quotes or discounted cash flows are reviewed. Other-than-temporary declines in value are recognized in the current period operating results to the extent of the decline.

Key Accounting Policies

We also have other policies that we consider key accounting policies, such as revenue recognition; however, these policies do not meet the definition of critical accounting estimates, because they do not generally require us to make estimates or judgments that are difficult or subjective.

Results of Operations

AMERCO and Consolidated Entities

Quarter Ended September 30, 2005 compared with the Quarter Ended September 30, 2004

Listed below on a consolidated basis are revenues for our major product lines for the second quarter of fiscal 2006 and the second quarter of fiscal 2005:

	Quarter Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Self-moving equipment rentals	$	446,705	$	429,156
Self-storage revenues		33,601		28,938
Self-moving and self-storage products and service sales		62,492		57,909
Property management fees		3,829		3,109
Life insurance premiums		29,718		32,035
Property and casualty insurance premiums		5,399		7,038
Net investment and interest income		12,352		11,475
Other revenue		11,420		9,760
Consolidated revenue	$	605,516	$	579,420

During the second quarter of fiscal 2006, Self-moving equipment rentals increased $17.5 million primarily from improved equipment utilization. Other contributing factors are pricing and product mix. Storage revenues increased $4.7 million for the second quarter of fiscal 2006 compared to fiscal 2005 as a result of higher occupancy rates and pricing. Sales of self-moving and self-storage related products and services increased $4.6 million following our growth in moving equipment rental revenues.

RepWest continued to exit non U-Haul related lines of business and as a result, its premium revenues declined $1.6 million. Oxford’s premium revenues declined $2.3 million primarily as a result of the lingering effects of its rating downgrade by A. M. Best in 2003.

As a result of the items mentioned above, revenues for AMERCO and its consolidated entities were $605.5 million for the second quarter of fiscal 2006, compared with $579.4 million for the second quarter of fiscal 2005.

Listed below are revenues and earnings from operations at each of our four operating segments for the second quarter of fiscal 2006 and the second quarter of fiscal 2005.

	Quarter Ended September 30,
	2005			2004
	(Unaudited)
	(In thousands)
Moving and storage
Revenues	$	555,383		$	523,904
Earnings from operations		124,573			101,370
Property and casualty insurance
Revenues		8,057			10,737
Earnings from operations		1,742			103
Life insurance
Revenues		36,270			40,411
Earnings from operations		3,297			2,497
SAC Holding II
Revenues		12,612			11,776
Earnings from operations		3,049			4,399
Eliminations
Revenues		(6,806	)		(7,408	)
Earnings from operations		(4,423	)		(4,176	)
Consolidated Results
Revenues		605,516			579,420
Earnings from operations		128,238			104,193

Total costs and expenses rose by $2.1 million. The primary reason was due to increased business activity of U-Haul offset by improved loss experience at the insurance companies.

As a result of the above mentioned changes in revenues and expenses, earnings from operations improved to $128.2 million in the second quarter of fiscal 2006, compared with $104.2 million for the second quarter of fiscal 2005.

Interest expense for the second quarter of fiscal 2006 was $15.2 million, compared with $18.1 million in the second quarter of fiscal 2005.

Income tax expense was $43.9 million in the second quarter of fiscal 2006 compared, with $33.1 million in second quarter of fiscal 2005.

Dividends accrued on our Series A preferred stock were $3.2 million in second quarter of fiscal 2006, unchanged from the second quarter of fiscal 2005.

As a result of the above mentioned items, net earnings available to common shareholders rose to a record $65.9 million in the second quarter of fiscal 2006, compared with $49.8 million in the second quarter of fiscal 2005.

The weighted average common shares outstanding: basic and diluted were 20,848,620 in second quarter of fiscal 2006 and 20,801,525 in the second quarter of fiscal 2005.

Basic and diluted earnings per share in the second quarter of fiscal 2006 were $3.16, compared with $2.39 for the same period last year.

In our second quarter of fiscal 2006, hurricanes Katrina and Rita struck the Gulf Coast of the United States causing business interruption to a number of our operating facilities. We identified customers impacted by the hurricanes and our rapid response teams provided a variety of solutions to divert operations to alternate facilities and restore operations where possible. We have been able to redeploy assets and employees to service our customers in cases where the facilities remain inoperable or have not returned to full operating capacity. We lost approximately 150 trucks and 150 trailers during and after the devastation caused by these hurricanes. We maintain property and business interruption insurance coverage with independent third parties to mitigate the financial impact of these types of catastrophic events. Our insurance deductible is $500,000 and has been recorded in our second quarter.

Moving and Storage

Quarter Ended September 30, 2005 compared with the Quarter Ended September 30, 2004

Listed below are revenues for the major product lines at our Moving and Storage operating segment (AMERCO, U-Haul and Real Estate) for the second quarter of fiscal 2006 and the second quarter of fiscal 2005:

	Quarter Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Self-moving equipment rentals	$	446,705	$	429,156
Self-storage revenues		28,820		24,358
Self-moving and self-storage products and service sales		57,874		53,638
Property management fees		4,578		3,834
Net investment and interest income		7,549		5,553
Other revenue		9,857		7,365
Segment revenue	$	555,383	$	523,904

During the second quarter of fiscal 2006, self-moving equipment rentals increased $17.5 million primarily from improved equipment utilization. Other contributing factors were pricing and product mix. Storage revenues at Company owned locations increased by $4.5 million for the second quarter of fiscal 2006 compared to fiscal 2005 as a result of higher occupancy rates and pricing. Sales of self-moving and self-storage related products and services increased $4.2 million following our growth in moving equipment rental revenues.

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


	Quarter Ended September 30,
	2005			2004
	(Unaudited)
	(In thousands, except occupancy rate)
Rooms available as of September 30		125			125
Square footage available as of September 30		9,708			9,745
Average # of rooms occupied		112			106
Average occupancy rate based on room count		90.0	%		84.5	%
Average square footage occupied		8,893			8,456

Self-moving and self-storage products and service sales consist of the following:


	Quarter Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Support sales items	$	27,540	$	25,191
Hitches (Material / Installation)		21,010		19,641
Propane and accessories		9,104		8,609
Other sales		220		197
	$	57,874	$	53,638

Total costs and expenses increased $9.5 million in the second quarter of fiscal 2006 compared with the second quarter of fiscal 2005. Operating expenses increased $2.1 million primarily from transaction driven expenses such as personnel and insurance. Depreciation expense increased $4.4 million primarily due to lease buy outs and certain residual value adjustments on our trucks. Overall total cost and expense increases were less than revenue increases.

As a result of the above mentioned changes in revenues and expenses, earnings from operations increased to $124.6 million in second quarter of fiscal 2006, compared with $101.4 million for second quarter of fiscal 2005.

U-Haul International, Inc.

Quarter Ended September 30, 2005 compared with the Quarter Ended September 30, 2004

Listed below are revenues for the major product lines at U-Haul International, Inc. for the second quarter of fiscal 2006 and the second quarter of fiscal 2005:

	Quarter Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Self-moving equipment rentals	$	446,705	$	429,156
Self-storage revenues		28,379		23,905
Self-moving and self-storage products and service sales		57,874		53,638
Property management fees		4,578		3,834
Net investment and interest income		5,978		5,339
Other revenue		11,045		8,796
U-Haul International, Inc. revenue	$	554,559	$	524,668

During second quarter of fiscal 2006, self-moving equipment rentals increased $17.5 million primarily from improved equipment utilization. Other contributing factors are pricing and product mix. Storage revenues increased $4.5 million for the second quarter of fiscal 2006 compared to fiscal 2005 as a result of higher occupancy rates and pricing. Sales of self-moving and self-storage related products and services increased $4.2 million, which consist of support sales items that increased $2.3 million, sales of hitches and installations that increased $1.4 million and propane and accessories that increased $0.5 million.

Total costs and expenses increased $12.3 million in the second quarter of fiscal 2006 compared with the second quarter of fiscal 2005. Operating expenses increased $5.4 million primarily from transaction driven expenses such as personnel and insurance. Depreciation expense increased $4.0 million primarily due to lease buy outs and certain residual value adjustments on our trucks. Overall total cost and expense increases were less than revenue increases.

As a result of the above mentioned changes in revenues and expenses, earnings from operations increased to $110.6 million in the second quarter of fiscal 2006, compared with $93.1 million in the second quarter of fiscal 2005.

Republic Western Insurance Company

Quarter Ended June 30, 2005 compared with the Quarter Ended June 30, 2004

Premium revenues were $5.4 million and $7.0 million for the second quarters ended June 30, 2005 and 2004, respectively. The overall decrease is due to RepWest exiting non U-Haul related lines of business. Self-Storage and Self-Moving industry premiums were $5.0 million and $4.6 million for the quarter June 30, 2005 and 2004, respectively. Other lines of business were $0.4 million and $2.4 million for the quarter ended June 30, 2005 and 2004, respectively.

Net investment income was $2.7 million and $3.7 million for the quarter ended June 30, 2005 and 2004, respectively. The reduction was primarily due to a decrease in our invested asset base.

Benefits and losses incurred were $3.7 million and $7.9 million for the quarter ended June 30, 2005 and 2004, respectively. The decrease resulted from reduced exposure due to RepWest’s decision to exit its non U-Haul lines of business.

Net operating expenses, which are offset by claims handling fees charged to U-Haul, were $2.0 million and $1.0 million for the quarter ended June 30, 2005 and 2004 respectively. Inter-company policy service fees from U-Haul are recorded net against operating expenses. The reductions in these fees, as well as an adjustment in commission deferral, are the primary reasons for the increase in operating expenses.

Pretax earnings from operations were $1.7 million and $0.1 million for the quarter ended June 30, 2005 and 2004, respectively. The increase over 2004 is the result of the elimination of unprofitable programs and the reserve strengthening that was done during the comparable period in the prior year.

Oxford Life Insurance Company

Quarter Ended June 30, 2005 compared with the Quarter Ended June 30, 2004

Net premiums were $30.1 million and $32.4 million for the second quarters ended June 30, 2005 and 2004, respectively. Medicare supplement premiums decreased by $1.4 million from 2004 due to lapses on closed lines being greater than new business written on active lines. Credit insurance premiums decreased $1.4 million from 2004 due to fewer accounts. Oxford is no longer pursuing new credit insurance business. All other lines increased by $0.5 million. Other income decreased by $1.0 million primarily due to a decrease in surrender charge income.

Net investment income was $4.6 million and $5.5 million for the quarter ended June 30, 2005 and 2004, respectively. The decrease was primarily due to a negative variance in capital gains/losses.

Benefits incurred were $21.0 million and $23.6 million for the quarter ended June 30, 2005 and 2004, respectively. Medicare supplement benefits decreased $2.3 million from 2004 due to reduced exposure and an improved loss ratio. Credit insurance benefits decreased $0.5 million from 2004 primarily due to reduced exposure. All other lines increased by $0.2 million.

Amortization of deferred acquisition costs (DAC) and the value of business acquired (VOBA) was $5.2 million and $6.0 million for the quarter ended June 30, 2005 and 2004, respectively. These costs are amortized for life and health policies as the premium is earned over the term of the policy; and for deferred annuities in relation to interest spreads. Credit amortization decreased $0.5 million due to decreased business volume. Annuity amortization decreased $0.4 million from 2004 primarily due to reduced surrender activity. Other segments had small variances, netting to a $0.1 million increase.

Operating expenses were $6.8 million and $8.3 million for the quarter ended June 30, 2005 and 2004, respectively. The decrease is primarily attributable to lower legal costs as well as reduced overhead. Non-deferrable commissions have decreased $0.5 million from 2004 primarily due to decreased sales of credit and Medicare supplement products.

Pre-tax earnings from operations were $3.3 million and $2.5 million for the quarter ended June 30, 2005 and 2004, respectively. Decreased revenue was more than offset by a reduction in operating and overhead expenses.

SAC Holding II

Quarter Ended September 30, 2005 compared with the Quarter Ended September 30, 2004

Listed below are revenues for the major product lines at SAC Holding II for the second quarter of fiscal 2006 and the second quarter of fiscal 2005:

	Quarter Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Self-moving equipment rentals	$	2,861	$	2,718
Self-storage revenues		4,781		4,580
Self-moving and self-storage products and service sales		4,618		4,271
Other revenue		352		207
Segment revenue	$	12,612	$	11,776

Revenues for the second quarter of fiscal 2006 grew $0.8 million, primarily as a result of improved occupancy and pricing.

Total costs and expenses were $9.6 million in the second quarter of fiscal 2006, compared with $7.4 million in the second quarter of fiscal 2005.

Earnings from operations were $3.0 million in the second quarter of fiscal 2006 compared with $4.4 million in the second quarter of fiscal 2005.

AMERCO and Consolidated Entities

Six Months Ended September 30, 2005 compared with the Six Months Ended September 30, 2004

Listed below on a consolidated basis are revenues for our major product lines for the first six months of fiscal 2006 and the first six months of fiscal 2005:

	Six Months Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Self-moving equipment rentals	$	847,965	$	818,898
Self-storage revenues		62,369		59,513
Self-moving and self-storage products and service sales		129,055		119,273
Property management fees		8,269		6,091
Life insurance premiums		59,307		65,294
Property and casualty insurance premiums		10,223		16,840
Net investment and interest income		26,066		29,051
Other revenue		21,720		17,405
Consolidated revenue	$	1,164,974	$	1,132,365

During the first six months of fiscal 2006, Self-moving equipment rentals increased $29.1 million primarily from improved equipment utilization. Other contributing factors are pricing and product mix. Storage revenues increased $2.9 million for the first six months of fiscal 2006, compared to fiscal 2005 as a result of higher occupancy rates and pricing. Sales of self-moving and self-storage related products and services increased $9.8 million.

RepWest continued to exit non U-Haul related lines of business and as a result, its premium revenues declined approximately $6.6 million. Oxford’s premium revenues declined approximately $6.0 million primarily as a result of the lingering effects of its rating downgrade by A. M. Best in 2003.

As a result of the items mentioned above, revenues for AMERCO and its consolidated entities were $1,165.0 million for the first six months of fiscal 2006, compared with $1,132.4 million for the first six months of fiscal 2005.

Listed below are revenues and earnings from operations at each of our four operating segments for the first six months of fiscal 2006 and the first six months of fiscal 2005.

	Six Months Ended September 30,
	2005			2004
	(Unaudited)
	(In thousands)
Moving and storage
Revenues	$	1,062,946		$	1,016,280
Earnings from operations		233,538			189,506
Property and casualty insurance
Revenues		16,366			25,076
Earnings from operations		3,324			469
Life insurance
Revenues		74,343			83,052
Earnings from operations		6,737			6,170
SAC Holding II
Revenues		24,671			23,122
Earnings from operations		7,100			7,460
Eliminations
Revenues		(13,352	)		(15,165	)
Earnings from operations		(9,901	)		(8,224	)
Consolidated Results
Revenues		1,164,974			1,132,365
Earnings from operations		240,798			195,381

Total costs and expenses fell by $12.8 million primarily as a result of a decrease in benefits and losses at RepWest and Oxford offset by increases in costs in the Moving and Storage segment related to increases in revenues.

As a result of the above mentioned changes in revenues and expenses, earnings from operations were improved to $240.8 million in the first six months of fiscal 2006, compared with $195.4 million for the first six months of fiscal 2005.

Interest expense for the first six months of fiscal 2006 was $70.5 million, which includes a one-time, nonrecurring charge of $35.6 million related to the early termination of existing indebtedness, compared with $37.1 million in the first six months of fiscal 2005.

Income tax expense was $66.1 million in the first six months of fiscal 2006, compared with $60.8 million in first six months of fiscal 2005.

Dividends accrued on our Series A preferred stock were $6.5 million in first six months of fiscal 2006, unchanged from the first six months of fiscal 2005.

As a result of the above mentioned items, net earnings available to common shareholders rose to $97.7 million in the first six months of fiscal 2006, compared with $91.0 million in the first six months of fiscal 2005.

The weighted average common shares outstanding: basic and diluted were 20,842,539 in first six months of fiscal 2006 and 20,794,766 in the first six months of fiscal 2005.

Basic and diluted earnings per share in the first six months of fiscal 2006 were $4.69, compared with $4.38 for the same period last year.

In our second quarter of fiscal 2006, hurricanes Katrina and Rita struck the Gulf Coast of the United States causing business interruption to a number of our operating facilities. We identified customers impacted by the hurricanes and our rapid response teams provided a variety of solutions to divert operations to alternate facilities and restore operations where possible. We have been able to redeploy assets and employees to service our customers in cases where the facilities remain inoperable or have not returned to full operating capacity. We lost approximately 150 trucks and 150 trailers during and after the devastation caused by these hurricanes. We maintain property and business interruption insurance coverage to mitigate the financial impact of these types of catastrophic events. Our insurance deductible is $500,000 and has been recorded in our second quarter.

Moving and Storage

Six Months Ended September 30, 2005 compared with the Six Months Ended September 30, 2004

Listed below are revenues for the major product lines at our Moving and Storage operating segment (AMERCO, U-Haul and Real Estate) for the first six months of fiscal 2006 and the first six months of fiscal 2005:

	Six Months Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Self-moving equipment rentals	$	847,965	$	818,898
Self-storage revenues		53,068		50,668
Self-moving and self-storage products and service sales		119,672		110,665
Property management fees		9,746		7,488
Net investment and interest income		13,703		16,307
Other revenue		18,792		12,254
Segment revenue	$	1,062,946	$	1,016,280

During the first six months of fiscal 2006, Self-moving equipment rentals increased $29.1 million primarily from the result of improved equipment utilization. Other contributing factors include pricing and product mix. Storage revenues increased $2.4 million for the first six months of fiscal 2006 compared to fiscal 2005 as a result of higher occupancy rates and pricing. Sales of self-moving and self-storage related products and services increased $9.0 million.

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

	Six Months Ended September 30,
	2005			2004
	(Unaudited)
	(In thousands, except occupancy rate)
Rooms available as of September 30		125			125
Square footage available as of September 30		9,708			9,745
Average # of rooms occupied		112			105
Average occupancy rate based on room count		89.7	%		83.3	%
Average square footage occupied		8,871			8,323

Self-moving and self-storage products and service sales consist of the following:

	Six Months Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Support sales items	$	55,794	$	51,364
Hitches (Material / Installation)		44,231		41,112
Propane and accessories		19,196		17,793
Other sales		451		396
	$	119,672	$	110,665

Total costs and expenses increased $5.4 million for the first six months of fiscal 2006 compared with the first six months of fiscal 2005. Depreciation expense increased primarily due to lease buy-outs and certain residual value adjustments on our trucks. Overall, total cost and expense increases were less than the related revenue increases.

As a result of the above mentioned changes in revenues and expenses, earnings from operations increased to $233.5 million in first six months of fiscal 2006, compared with $189.5 million for first six months of fiscal 2005.

U-Haul International, Inc.

Six Months Ended September 30, 2005 compared with the Six Months Ended September 30, 2004

Listed below are revenues for the major product lines at U-Haul International, Inc. for the first six months of fiscal 2006 and the first six months of fiscal 2005:

	Six Months Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Self-moving equipment rentals	$	847,965	$	818,819
Self-storage revenues		52,172		49,547
Self-moving and self-storage products and service sales		119,672		110,650
Property management fees		9,746		7,488
Net investment and interest income		10,716		11,299
Other revenue		21,061		15,099
U-Haul International, Inc. revenue	$	1,061,332	$	1,012,902

During first six months of fiscal 2006, Self-moving equipment rentals increased $29.1 million primarily as a result of improved equipment utilization. Other contributing factors include pricing and product mix. Storage revenues increased $2.6 million for the first six months of fiscal 2006 compared to fiscal 2005 as a result of higher occupancy rates and pricing. Sales of self-moving and self-storage related products and services increased $9.0 million, which consist of support sales items that increased $4.4 million, sales of hitches and installations that increased $3.1 million and propane and accessories that increased $1.5 million.

Total costs and expenses increased $11.1 million for the first six months of fiscal 2006 compared with the first six months of fiscal 2005. Operating expenses increased $1.9 million driven by personnel and insurance costs. Depreciation expense increased $9.1 million primarily due to lease buy-outs and certain residual value adjustments on our trucks. Overall, total cost and expense increases were less than the related revenue increases.

As a result of the above mentioned changes in revenues and expenses, earnings from operations increased to $206.4 million in the first six months of fiscal 2006, compared with $169.1 million in the first six months of fiscal 2005.

Republic Western Insurance Company

Six Months Ended June 30, 2005 compared with the Six Months Ended June 30, 2004

Premium revenues were $10.2 million and $16.8 million for the first six months ended June 30, 2005 and 2004, respectively. The overall decrease is due to RepWest exiting non U-Haul related lines of business. U-Haul related premiums were $9.0 million and $8.6 million for the first six months of 2005 and 2004, respectively. Other lines of business were $1.2 million and $8.2 million for the first six months of 2005 and 2004, respectively.

Net investment income was $6.1 million and $8.2 million for the first six months ended June 30, 2005 and 2004, respectively. The reduction was primarily due to a decrease in our invested asset base.

Benefits and losses incurred were $7.1 million and $17.9 million for the first six months ended June 30, 2005 and 2004, respectively. The decrease resulted from reduced exposure due to RepWest’s decision to exit its non U-Haul lines of business.

Amortization of deferred acquisition costs was $1.5 million and $5.2 million for the first six months ended June 30, 2005 and 2004, respectively. The decrease is due to a reduction of in-force business related to the exit of non U-Haul lines of business.

Operating expenses, which are offset by claims handling fees charged to U-Haul, were $4.4 million and $1.6 million for the first six months ended June 30, 2005 and 2004, respectively. Inter-company policy service fees from U-Haul are recorded net against operating expenses. The reductions in these fees, as well as, an adjustment in commission deferral, are the primary reasons for the net increase in operating expenses.

Pretax earnings from operations were $3.3 million and $0.5 million for the first six months ended June 30, 2005 and 2004, respectively. The increase over 2004 is the result of the elimination of unprofitable programs.

Oxford Life Insurance Company

Six Months Ended June 30, 2005 compared with the Six Months Ended June 30, 2004

Net premiums were $60.1 million and $66.0 million for the six-month periods ended June 30, 2005 and 2004, respectively. Medicare supplement premiums decreased by $2.9 million from 2004 due to lapses on closed lines being greater than new business written on active lines. Credit insurance premiums decreased $3.0 million from 2004 due to fewer accounts. Oxford is no longer pursuing new credit insurance business. Other income decreased by $2.4 million primarily due to a decrease in surrender charge income.

Net investment income was $11.3 million and $11.7 million for the six months ended June 30, 2005 and 2004, respectively. The decrease was primarily due to a negative variance in capital gains as wells as by a lower balance of invested assets.

Benefits incurred were $42.9 million and $47.7 million for the six months ended June 30, 2005 and 2004, respectively. Medicare supplement benefits decreased $2.8 million from 2004 due primarily to reduced exposure. Credit insurance benefits decreased $1.1 million from 2004 due to reduced exposure. All other lines had decreases totaling $0.9 million from 2004.

Amortization of deferred acquisition costs (DAC) and the value of business acquired (VOBA) was $10.6 million and $12.6 million for the six months ended June 30, 2005 and 2004, respectively. Annuity amortization decreased $1.3 million from 2004 primarily due to reduced surrender activity. Other segments, primarily credit, had decreases of $0.7 million from 2004 due to decreased new business volume.

Operating expenses were $14.2 million and $16.6 million for the six months ended June 30, 2005 and 2004, respectively. The decrease is attributable to lower legal costs as well as reduced overhead. Non-deferrable commissions have decreased $0.9 million from 2004 primarily due to decreased sales of credit and Medicare supplement products.

Pretax earnings were $6.7 million and $6.2 million for the six-month periods ending June 30, 2005 and 2004, respectively. Reductions in operating expenses were greater than revenues decreased for the period.

SAC Holding II

Six Months Ended September 30, 2005 compared with the Six Months Ended September 30, 2004

Listed below are revenues for the major product lines at SAC Holding II for the first six months of fiscal 2006 and the first six months of fiscal 2005:

	Six Months Ended September 30,
	2005		2004
	(Unaudited)
	(In thousands)
Self-moving equipment rentals	$	5,349	$	5,127
Self-storage revenues		9,301		8,845
Self-moving and self-storage products and service sales		9,383		8,608
Other revenue		638		542
Segment revenue	$	24,671	$	23,122

Revenues for the first six months of fiscal 2006 grew $1.5 million, primarily as a result of improved occupancy and pricing.

Total costs and expenses were $17.6 million in the first six months of fiscal 2006, compared with $15.7 million in the first six months of fiscal 2005.

Earnings from operations were $7.1 million in the first six months of fiscal 2006 compared with $7.5 million in the first six months of fiscal 2005.

Liquidity and Capital Resources

We believe our current capital structure will allow us to achieve our operational plans and goals, and provide us with sufficient liquidity for the next 3 to 5 years. The majority of the obligations currently in place mature at the end of fiscal years 2010 or 2015. As a result, we believe that our liquidity is strong. This will allow us to focus on our operations and business to further improve our liquidity in the long term. We believe these improvements will enhance our access to capital markets. However, there is no assurance that future cash flows will be sufficient to meet our outstanding obligations or our future capital needs.

At September 30, 2005, cash and cash equivalents totaled $289.1 million, compared with $56.0 million on March 31, 2005.

On June 29, 2005 the Company entered into a new revolving credit facility with Merrill Lynch Commercial Finance Corp. The facility has a $150 million maximum amount available with an interest rate of LIBOR plus 1.75%. As of September 30, 2005 the Company had $60.0 million available under its revolving credit facility.

At September 30, 2005, notes and loans payable were $865.2 million, and represented 1.3 times stockholders’ equity. At March 31, 2005, notes and loans payable were $780.0 million, and represented 1.4 times stockholders’ equity.

For the first six months of fiscal 2006, cash provided by operating activities was $223.0 million, compared with $173.0 million in the first six months of fiscal 2005.

Investing activities provided (used) ($15.5) million in net cash during the first six months of fiscal 2006, compared to $114.0 million in the first six months of fiscal 2005. The majority of the decrease in the first six months of fiscal 2006 compared with the first six months of fiscal 2005 was related to the W. P. Carey Transaction. Net capital expenditures were $122.8 million and $161.7 million through September 30, 2005 and September 30, 2004, respectively. Capital dispositions were $30.3 million and $218.0 million through September 30, 2005 and September 30, 2004, respectively.

Financing activities provided $25.7 million during the first six months of fiscal 2006. This primarily reflects the complete refinancing on the Company’s debt in fiscal 2006. The refinancing expanded the Company’s borrowing capacity. The additional funds from the refinancing we partially offset by annuity withdrawals at Oxford. This compares with usage of $322.9 million from financing activities during the first six months of fiscal 2005.

Liquidity and Capital Resources and Requirements of Our Operating Segments

Moving and Self-Storage

To meet the needs of our customers, U-Haul maintains a large fleet of rental equipment. Capital expenditures have primarily reflected new rental equipment acquisitions. The capital to fund these expenditures has historically been obtained internally from operations and the sale of used equipment, and externally from lease financing. In the future we anticipate that our internally generated funds will be used to service the existing debt and support operations. U-Haul estimates that during the next three fiscal years at least $325 million each year will need to be reinvested in the truck and trailer rental fleet to maintain it at current levels. This investment will be funded through external lease financing, asset-backed financing and internally from operations. Management considers several factors including cost and tax consequences when selecting a method to fund capital expenditures. Because the Company has utilized all of its net operating loss carry forwards, there will be more of a focus on financing the fleet through asset-backed debt. Net capital expenditures were $122.4 million for the first six months of fiscal 2006.

Real Estate has traditionally financed the acquisition of self-storage properties to support U-Haul's growth through debt financing and funds from operations and sales. U-Haul's growth plan in self-storage is primarily focused on eMove, which does not require acquisition or construction of self-storage properties by the Company. This primary focus does not preclude the Company from using debt and internally generated funds to finance storage acquisitions or construction in the future.

Property and Casualty Insurance

As of June 30, 2005, RepWest had no notes or loans due in less than one year and its accounts payable, accrued expenses, and other payables were approximately $9.0 million. RepWest’s financial assets (cash, receivables, short-term investments, related party assets and other assets) at June 30, 2005 were approximately $340.8 million. State insurance regulations restrict the amount of dividends that can be paid to stockholders of insurance companies. As a result, RepWest’s assets are generally not available to satisfy the claims of AMERCO or its legal subsidiaries.

Stockholder’s equity was $156.8 million and $154.8 million at June 30, 2005 and December 31, 2004, respectively. The increase resulted from $2.2 million in earnings and ($0.2) million of unrealized losses. RepWest does not use debt or equity issues to increase capital and therefore has no exposure to capital market conditions.

Oxford Life Insurance Company

As of June, 2005, Oxford was due to make a $1.0 million principal payment to AMERCO on an inter-company surplus note issued in 1998; this payment has not been made. Oxford had no other notes and loans payable in less than one year. Its accounts payable, accrued expenses and other payables were approximately $13.1 million. Oxford’s financial assets (cash, receivables, short-term investments, other investments, and fixed maturities and related party) at June 30, 2005 were approximately $743.6 million. State insurance regulations restrict the amount of dividends that can be paid to stockholders of insurance companies. As a result, Oxford’s funds are generally not available to satisfy the claims of AMERCO or its legal subsidiaries.

Oxford’s stockholder's equity was $120.9 million and $115.0 million as of June 30, 2005, and December 31, 2004, respectively. The increase resulted from earnings of $4.4 million and a $1.5 million increase in unrealized gains. Oxford does not use debt or equity issues to increase capital and therefore has no exposure to capital market conditions.

SAC Holding II

SAC Holding II operations are funded by various mortgage loans, and secured and unsecured notes. SAC Holding II does not utilize revolving lines of credit to finance its operations or acquisitions. Certain of SAC Holding II loan agreements contain restrictive covenants and restrictions on incurring additional subsidiary indebtedness.

Cash Provided from Operating Activities by Operating Segments

Moving and Self-Storage

Cash provided (used) by operating activities from U-Haul was ($55.4) million and $204.4 million for the first six months of fiscal 2006 and 2005, respectively. Cash provided (used) by operating activities for Real Estate was ($88.1) million and $11.3 million for the first six months of fiscal 2006 and 2005, respectively. Cash and cash equivalents for the consolidated Moving and Storage segment were $233.0 million and $42.0 million at September 30, 2005 and March 31, 2005.

Property and Casualty Insurance

Cash flows used by operating activities were $9.8 million and $23.5 million for the six months ended June 30, 2005 and 2004, respectively. The cash used by operating activities is the result of RepWest’s exiting its non U-Haul related lines of business and the associated payment of claims in the lines exited.

RepWest’s cash and cash equivalents and short-term investment portfolio were $78.5 million and $90.3 million at June 30, 2005 and December 31, 2004 respectively. This balance reflects funds in transition from maturity proceeds to long term investments. This level of liquid assets, combined with budgeted cash flow, is adequate to meet periodic needs. Capital and operating budgets allow Republic to schedule cash needs in accordance with investment and underwriting proceeds.

Life Insurance

Cash provided (used) by operating activities was ($1.0) million and $4.4 million for the six months ended June 30, 2005 and 2004, respectively. Included in the operating cash outflow in the current period was the $12.8 million settlement of the Kocher accrual, net of the $2.2 million recovery from Oxford’s E&O insurance carrier.

In addition to cash flows from operating and financing activities, a substantial amount of liquid funds is available through Oxford's short-term portfolio. At June 30, 2005 and December 31, 2004, short-term investments amounted to $38.1 million and $113.8 million, respectively. Management believes that the overall sources of liquidity will continue to meet foreseeable cash needs.

SAC Holding II

Cash provided by operating activities at SAC Holding II was $2.7 million and $0.5 million for the first six months of fiscal 2006 and 2005, respectively. The primary source of cash in fiscal 2006 was a decrease in accounts payable and accrued liabilities.

Liquidity and Capital Resources-Summary

We believe we have the financial resources needed to meet our business requirements including capital expenditures for the expansion and modernization of our rental fleet, rental equipment and rental storage space, working capital requirements and our preferred stock dividend program.

For a more detailed discussion of our long-term debt and borrowing capacity, please see footnote 3 “Borrowings” to the “Notes to the Condensed Consolidated Financial Statements.”

Off-Balance Sheet Arrangements

AMERCO uses certain equipment and occupies certain facilities under operating lease commitments with terms expiring substantially through 2034, with the exception of one land lease expiring in 2079. In the event of a shortfall in proceeds from the sale of the underlying assets, AMERCO has guaranteed approximately $188.7 million of residual values at September 30, 2005 for these assets at the end of the respective lease terms. AMERCO has been leasing equipment since 1987. Thus far, we have experienced no residual value shortfalls.

The Company uses off-balance sheet arrangements where the economics and sound business principles warrant their use. The Company’s principal use of off-balance sheet arrangements occurred in connection with the expansion of our self-storage business. The Company currently manages the self-storage properties owned by SAC Holding II and its subsidiaries, pursuant to which the Company receives a management fee based on the gross receipts from the properties plus reimbursement for certain expenses. We received management fees, exclusive of expenses, of $1.5 million during the first six months of fiscal 2006. This management fee is consistent with the fees we received from unrelated parties for other properties we manage.

Fiscal 2006 Outlook

We have many exciting developments which we believe should positively affect performance in fiscal 2006. We believe the momentum in our Moving and Storage Operations will continue. We are investing strongly in our truck rental fleet to further strengthen U-Haul’s “do-it-yourself” moving business. Over the last six months we placed 6,750 of our largest rental trucks in service. We are currently manufacturing the vans for our mid-sized trucks and expect to produce over 7,700 units in the coming months. This investment is expected to increase the number of rentable truck days available to meet our customer’s demand and will reduce future spending on repair costs and equipment down-time.

At RepWest, our plans to exit non-U-Haul related lines are progressing well.

At Oxford, the recent ratings upgrade by A.M. Best should support the expansion of its distribution capabilities.

Also, we completed the refinancing of the Company’s debt on June 8, 2005. This action increased our previous borrowing capacity by more than $195.0 million and will significantly reduce our effective borrowing rates. Additionally, the new debt increases our financial flexibility thus enabling us to complete the fleet investment plans outlined above. The early extinguishment of our existing debt resulted in a one time pre-tax charge of approximately $35.6 million during the first quarter of fiscal 2006.

Our objectives for fiscal 2006 are to position our rental fleet to achieve revenue and transaction growth and continue to drive down operating costs. The aforementioned investment in our fleet will give us a strong basis for meeting our objectives.

Cautionary Statements Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements. We may make additional written or oral forward-looking statements from time to time in filings with the Securities and Exchange Commission or otherwise. We believe such forward-looking statements are within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, projections of revenues, income 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; 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 Exchange Commission. The above factors, the following disclosures, as well as other statements in this report and in the Notes to our Condensed Consolidated Financial Statements, could contribute to or cause such differences, 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 disclaims any intent or obligation to update or revise any of the forward-looking statements, whether in response to new information, unforeseen events, changed circumstances or otherwise.

Risk Factors

We operate in a highly competitive industry.

The truck rental industry is highly competitive and includes a number of 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. In our truck rental business, we face competition from Budget Car and Truck Rental Company and Penske Truck Leasing. Some of our competitors may have greater financial resources than we have. We cannot assure you that we will not be forced to reduce our rental prices or delay price increases.

The self-storage industry is large and highly fragmented. We believe the principle competitive factors in this industry are convenience of storage rental locations, cleanliness, security and price. Our primary competitors in the self-storage market are Public Storage, Shurgard Storage Centers, Inc., Extra Space Storage, Inc. and others. Competition in the market areas in which we operate is significant and affects the occupancy levels, rental sales and operating 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.

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 zoning, 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.

Control of AMERCO remains in the hands of a small contingent.

As of September 30, 2005, 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 control 8,790,170 shares (approximately 41.3%) of the outstanding common shares of AMERCO. Accordingly, Edward J. Shoen, Mark V. Shoen and James P. Shoen will be in a position to continue to influence the election of the members of the Board of Directors and approval of significant transactions. In addition, 2,130,134 shares (approximately 10.5%) of the outstanding common shares of AMERCO, including shares allocated to employees and unallocated shares are held by our Employee Savings and Employee Stock Ownership Trust.

Our operations subject us to numerous environmental regulations and the possibility that environmental liability in the future could adversely affect our operations.

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 7 of our Condensed 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 laws and regulations are complex, change frequently and could become more stringent in the future. We cannot assure you that future compliance with these regulations, future environmental liabilities, the cost of defending environmental claims, conducting 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.

Our business is seasonal.

Our business is seasonal and our results of operations and cash flows fluctuate significantly from quarter to quarter. Historically, revenues have been stronger in our first and second fiscal quarters due to the overall increase in moving activity during the spring and summer months. The fourth fiscal quarter is generally weakest, when there is a greater potential for adverse weather conditions.

We obtain our rental trucks from a limited number of manufacturers.

In the last ten years, we purchased most of our rental trucks from Ford and General Motors. 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.

Our property and casualty insurance business has suffered extensive losses.

Since January 2000, our property and casualty insurance business, RepWest, reported losses totaling approximately $161 million. These losses are primarily attributable to business lines that were unprofitable as underwritten. To restore profitability in RepWest, we have exited all non-U-Haul related lines. Although we believe the terminated lines are adequately reserved, we cannot assure you that there will not be future adverse loss development.

Our life insurance business was downgraded by A.M. Best during restructuring

A.M. Best downgraded Oxford and its subsidiaries during the restructuring to C+. Upon 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, A.M. Best upgraded Oxford and its subsidiaries 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.

Notes receivable from SAC Holdings are a significant portion of AMERCO’S total assets.

At September 30, 2005, we held approximately $203.7 million of notes due from SAC Holdings, of which $75.1 million have been eliminated in the consolidating financial statements. We have significant economic exposure to SAC Holdings. 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 on its obligations to us. In such an event of default, we could suffer a significant loss to the extent the value of the underlying collateral on our loans to SAC Holdings is inadequate to repay SAC Holdings senior lenders and us. 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.

We face risks related to an SEC investigation and securities litigation.

The SEC has issued a formal order of investigation to determine whether we have violated the Federal securities laws. Although we have cooperated with the SEC in this matter and intend to continue to cooperate, the SEC may determine that we have violated Federal securities laws. We cannot predict when this investigation will be completed or its outcome. If the SEC makes a determination that we have violated Federal securities laws, we may face sanctions, including, but not limited to, significant monetary penalties and injunctive relief.

In addition, the Company has been named a defendant in a number of class action and related lawsuits. The findings and outcome of the SEC investigation may affect the class-action lawsuits that are pending. We are generally obligated, to the extent permitted by law, to indemnify our directors and officers who are named defendants in some of these lawsuits. We are unable to estimate what our liability in these matters may be, and we may be required to pay judgments or settlements and incur expenses in aggregate amounts that could have a material adverse effect on our financial condition or results of operations.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to financial market risks, including changes in interest rates and currency exchange rates. To mitigate these risks, we may utilize derivative financial instruments, among other strategies. We do not use derivative financial instruments for speculative purposes.

Interest rate risk

The exposure to market risk for changes in interest rates relates primarily to our variable rate debt obligations. We have used interest rate swap agreements to provide for matching the gain or loss recognition on the hedging instrument with recognition of the changes in the cash flows associated with the hedged asset or liability attributable to the hedged risk or the earnings effect of the hedged forecasted transaction. At September 30, 2005, the Company had two interest rate swap contracts for $100 million each that serve to partially offset the changes in the variable interest rate of the Real Estate Loan. On May 13, 2004, the Company entered into separate interest rate cap contracts for $200 million of its variable rate debt obligations for a two year term and for $50 million of its variable rate debt obligations for a three year term. At September 30, 2005, the Company had approximately $337.6 million of variable debt obligations. A fluctuation in the interest rates of 100 basis points would change interest expense for the Company by approximately $3.3 million annually (before consideration of the swap and cap contracts).

Foreign Currency Exchange Rate Risk

The exposure to market risk for changes in foreign currency exchange rates relates primarily to our Canadian business. Approximately 2.0% of our revenue is generated in Canada. The result of a 10.0% change in the value of the U.S. dollar relative to the Canadian dollar would not be material. We typically do not hedge any foreign currency risk since the exposure is not considered material.

Item 4. Controls and Procedures

Attached as exhibits to this Form 10-Q are certifications of AMERCO’s Chief Executive Officer (CEO) and Chief Accounting Officer (CAO), which are required in accordance with Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended (the Exchange Act). This “Controls and Procedures” section includes information concerning the controls and controls evaluation referred to in the certifications and it should be read in conjunction with the certifications for a more complete understanding of the topics presented in Evaluation of Disclosure Controls and Procedures.

We conducted an evaluation (required pursuant to Rule 13-15(b) or 15d-15(b) of the Exchange Act) of the effectiveness of the design and operation of our "disclosure controls and procedures" as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act (Disclosure Controls) as of the end of the period covered by this Form 10-Q. The controls evaluation was conducted under the supervision and with the participation of management, including our CEO and CAO. Disclosure Controls are controls and procedures designed to reasonably assure that information required to be disclosed in our reports filed under the Exchange Act, such as this Form 10-Q, are recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission's (SEC's) rules and forms. Disclosure Controls are also designed to reasonably assure that such information is accumulated and communicated to our management, including the CEO and CAO, as appropriate to allow timely decisions regarding required disclosure. Our Disclosure Controls include components of our internal control over financial reporting which consists of control processes designed to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles in the U.S. To the extent that components of our internal control over financial reporting are included within our Disclosure Controls, they are included in the scope of our quarterly controls evaluation. Internal control over financial reporting is also separately evaluated on an annual basis for purposes of providing the management report which is set forth in our most recent Form 10-K.

The evaluation of our Disclosure Controls included a review of the controls' objectives and design, the company's implementation of the controls and the effect of the controls on the information generated for use in this Quarterly Report.

In the course of the controls evaluation, we reviewed identified data errors, control problems or acts of fraud and sought to confirm that appropriate corrective actions, including process improvements, were being undertaken. This type of evaluation is performed on a quarterly basis so that the conclusions of management, including the CEO and CAO, concerning the effectiveness of the Disclosure Controls can be reported in our periodic reports on Form 10-Q and Form 10-K. Many of the components of our Disclosure Controls are also evaluated on an ongoing basis by our Internal Audit Department and by other personnel in our Finance organization. The overall goals of these various evaluation activities are to monitor our Disclosure Controls, and to modify them as necessary. Our intent is to maintain the Disclosure Controls as dynamic systems that change as conditions warrant.

Based upon the controls evaluation, our CEO and CAO have concluded that, subject to the limitations noted in this Item 4, as of the end of the period covered by this Form 10-Q, our Disclosure Controls were effective to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified by the SEC and that material information relating to AMERCO and its consolidated entities is made known to management, including the CEO and CAO, particularly during the period when our periodic reports are being prepared.

Inherent Limitations on the Effectiveness of Controls

The company's management, including the CEO and CAO, does not expect that our Disclosure Controls or our internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

Changes in Internal Control over Financial Reporting

During the fiscal quarter covered by this report we made no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) which materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

See Footnote 7 to the “Notes to the Condensed Consolidated Financial Statements”.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults upon Senior Securities

Not applicable.

Item 4. Submission of Matters to a Vote of Security Holders

	Votes Cast For	Votes Cast Against	Withheld	Abstentions	Non-Votes

Election of Directors
John M. Dodds	19,005,012	16,660	594,563	-	-

Daniel R. Mullen	19,130,041	26,539	459,655	-	-

James P. Shoen	18,286,999	20,777	1,308,459	-	-

Item 5. Other Information

Not applicable.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AMERCO

Date: November 4, 2005 /s/ Edward J. Shoen

Edward J. Shoen

President and Chairman of the Board

(Duly Authorized Officer)

Date: November 4, 2005 /s/ Jason A. Berg

Jason A. Berg

Chief Accounting Officer

(Principal Financial Officer)

U-HAUL INTERNATIONAL, INC.

Date: November 4, 2005 /s/ Edward J. Shoen

Edward J. Shoen

President and Chairman of the Board

(Duly Authorized Officer)

Date: November 4, 2005 /s/ Robert T. Peterson

Robert T. Peterson

Chief Financial Officer

(Principal Financial Officer)

Item 6. Exhibits

The following documents are filed as part of this report:

Exhibit Number	Description	Page or Method of Filing
2.1	Joint Plan of Reorganization of AMERCO and Amerco Real Estate Company	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed October 20, 2003, file no. 1-11255
2.2	Disclosure Statement Concerning the Debtors’ Joint Plan of Reorganization	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed October 20, 2003, file no. 1-11255
2.3	First Amended Joint Plan of Reorganization of AMERCO and Amerco Real Estate Company	Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2003, file No. 1-11255
2.4	Disclosure Statement Concerning the Debtor’s First Amended Joint Plan of Reorganization	Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2003, file No. 1-11255
3.1	Restated Articles of Incorporation of AMERCO	Incorporated by reference to AMERCO’s Registration Statement on form S-4 filed March 30, 2004, file number 1-11255
3.2	Restated By-Laws of AMERCO	Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1996, file No. 1-11255
3.3	Restated Articles of Incorporation of U-Haul International, Inc.	Incorporated by reference to AMERCO’s Annual Report on Form 10-K for the year ended March 31, 2003, file no. 1-11255
3.4	Bylaws of U-Haul International, Inc.	Incorporated by reference to AMERCO’s Annual Report on Form 10-K for the year ended March 31, 2003, file no. 1-11255
10.1	Property Management Agreement between Subsidiaries of U-Haul and Five SAC RW MS, LLC. dated August 17, 2005	Filed herewith
31.1	Rule 13a-14(a)/15d-14(a) Certificate of Edward J. Shoen, President and Chairman of the Board of AMERCO and U-Haul International, Inc.	Filed herewith
31.2	Rule 13a-14(a)/15d-14(a) Certificate of Jason A. Berg, Chief Accounting Officer of AMERCO	Filed herewith
31.3	Rule 13a-14(a)/15d-14(a) Certification of Robert T. Peterson, Chief Financial Officer of U-Haul International, Inc.	Filed herewith
32.1	Certificate of Edward J. Shoen, President and Chairman of the Board of AMERCO and U-Haul International, Inc. pursuant to Section 906 of the Sabanes-Oxley Act of 2002	Furnished herewith
32.2	Certificate of Jason A. Berg, Chief Accounting Officer of AMERCO pursuant to Section 906 of the Sabanes-Oxley Act of 2002	Furnished herewith
32.3	Certificate of Robert T. Peterson, Chief Financial Officer of U-Haul International, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Furnished herewith