U-Haul Holding UHAL Form 10-Q filing Q3 FY2024

Part i Financial information

Item 1. Financial Statements

U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED balance sheets

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

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED Statements of operations

Related party revenues for the third quarters ended December 31, 2024 and 2023, net of eliminations, were $8.9 million and $10.1 million, respectively.

Related party costs and expenses for the third quarters ended December 31, 2024 and 2023, net of eliminations, were $26.5 million and $20.4 million, respectively.

Please see Note 11, Related Party Transactions, of the Notes to Consolidated Financial Statements for more information on the related party revenues and costs and expenses.

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

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED Statements of operations

Related party revenues for the first nine months ended December 31, 2024 and 2023, net of eliminations, were $28.0 million and $28.6 million, respectively.

Related party costs and expenses for the first nine months ended December 31, 2024 and 2023, net of eliminations, were $90.0 million and $69.7 million, respectively.

Please see Note 11, Related Party Transactions, of the Notes to Consolidated Financial Statements for more information on the related party revenues and costs and expenses.

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

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

consolidatED statements of COMPREHENSIVE INCOME (loss)

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

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U-Haul Holding Company and consolidated subsidiaries

consolidated statements of changes in stockholders’ equity

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

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U-Haul Holding Company and consolidated subsidiaries

consolidated statements of changes in stockholders’ equity

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

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U-Haul holding company AND CONSOLIDATED subsidiaries

consolidatED statements of cash flows

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

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

U-Haul Holding Company, a Nevada corporation (“U-Haul Holding Company”), has a third fiscal quarter that ends on the 31st of December for each year that is referenced. Our insurance company subsidiaries have a third quarter that ends on the 30th of September for each year that is referenced. They have been consolidated on that basis. Our insurance companies’ financial reporting processes conform to calendar year reporting as required by state insurance departments. We believe that consolidating their calendar year into our fiscal year financial statements does not materially affect the presentation of consolidated financial position or consolidated results of operations. We disclose material events, if any, occurring during the intervening period. Consequently, all references to our insurance subsidiaries’ years 2024 and 2023 correspond to fiscal 2025 and 2024 for U-Haul Holding Company.

Accounts denominated in non-U.S. currencies have been translated into U.S. dollars.

The accompanying interim consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with the accounting principles generally accepted in the United States of America (“GAAP”). Interim results are not necessarily indicative of full year performance. The year-end consolidated balance sheet data was derived from audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, which include all disclosures required by GAAP. Compared to the consolidated annual financial statements, certain footnotes within the accompanying interim consolidated financial statements have been condensed. Therefore, these interim consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

In our opinion, all adjustments necessary for the fair presentation of such consolidated financial statements have been included. Such adjustments consist only of normal recurring items.

Intercompany accounts and transactions have been eliminated.

Description of Legal Entities

U-Haul Holding Company is the holding company for:

U-Haul International, Inc. (“U-Haul”);

Amerco Real Estate Company (“Real Estate”);

Repwest Insurance Company (“Repwest”); and

Oxford Life Insurance Company (“Oxford”).

Unless the context otherwise requires, the terms “Company,” “we,” “us” or “our” refer to U-Haul Holding Company and all of its legal subsidiaries.

Description of Operating Segments

U-Haul Holding Company has three reportable segments. They are Moving and Storage, Property and Casualty Insurance and Life Insurance.

The Moving and Storage operating segment (“Moving and Storage”) includes U-Haul Holding Company, U-Haul and Real Estate and the wholly owned subsidiaries of U-Haul and Real Estate. Operations consist of the rental of trucks and trailers, sales of moving supplies, sales of towing accessories, sales of propane, and the rental of fixed and portable moving and storage units 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.

The Property and Casualty Insurance operating segment (“Property and Casualty Insurance”) includes Repwest and its wholly owned subsidiaries and ARCOA Risk Retention Group (“ARCOA”). Property and Casualty Insurance provides loss adjusting and claims handling for U-Haul® through regional offices in the

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

United States and Canada. Property and Casualty Insurance also underwrites components of the Safemove®, Safetow®, Safemove Plus®, Safestor® and Safestor Mobile® protection packages to U-Haul customers. The business plan for Property and Casualty Insurance includes offering property and casualty insurance products in other U-Haul-related programs. ARCOA is a group captive insurer owned by us and our wholly owned subsidiaries whose purpose is to provide insurance products related to our moving and storage business.

The Life Insurance operating segment (“Life Insurance”) includes Oxford and its wholly owned subsidiaries. Life Insurance provides life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, Medicare supplement and annuity policies.

2. Earnings per Share

We calculate earnings per share using the two-class method in accordance with ASC Topic 260, Earnings Per Share. The two-class method allocates the undistributed earnings available to common stockholders to the Company’s outstanding common stock, $0.25 par value (the “Voting Common Stock”), and the Series N Non-Voting Common Stock, $0.001 par value (the “Non-Voting Common Stock”), based on each share’s percentage of total weighted average shares outstanding. The Voting Common Stock and Non-Voting Common Stock are allocated 10% and 90%, respectively, of our undistributed earnings available to common stockholders. This represents earnings available to common stockholders less the dividends declared for both the Voting Common Stock and Non-Voting Common Stock.

Our undistributed earnings per share is calculated by taking the undistributed earnings available to common stockholders and dividing this number by the weighted average shares outstanding for the respective stock. If there was a dividend declared for that period, the dividend per share is added to the undistributed earnings per share to calculate the basic and diluted earnings per share. The process is used for both Voting Common Stock and Non-Voting Common Stock.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The calculation of basic and diluted earnings per share for the quarters ended December 31, 2024 and 2023 for our Voting Common Stock and Non-Voting Common Stock were as follows:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The calculation of basic and diluted earnings per share for the nine months ended December 31, 2024 and 2023 for our voting Common Stock and Non-Voting Common Stock were as follows:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

3. Investments

We deposit bonds with insurance regulatory authorities to meet statutory requirements. The adjusted cost of bonds on deposit with insurance regulatory authorities was $20.2 million and $23.1 million as of December 31, 2024 and March 31, 2024, respectively.

Available-for-Sale Investments

Available-for-sale investments as of December 31, 2024 were as follows:

Available-for-sale investments as of March 31, 2024 were as follows:

A summary of available-for-sale investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position as of December 31, 2024 and March 31, 2024 were as follows:

• (Unaudited)
• (In thousands)_

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

• (Unaudited)
• (In thousands)_

Gross proceeds from matured or redeemed securities were $318.6 million and $448.9 million for the first nine months ended December 31, 2024 and December 31, 2023, respectively. Included in the December 31, 2024 and 2023 proceeds were $73.0 million and $225.0 million, respectively, from the Moving and Storage Treasuries that matured. The gross realized gains on these sales totaled $2.3 million and $1.5 million during the first nine months of fiscal 2025 and 2024, respectively. The gross realized losses on these sales totaled $0.5 million and $1.1 million during the first nine months of fiscal 2025 and 2024, respectively.

For available-for-sale debt securities in an unrealized loss position, we first assess whether the security is below investment grade. For securities that are below investment grade, we evaluate whether the decline in fair value has resulted from credit losses or other factors such as the interest rate environment. Declines in value due to credit are recognized as an allowance. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse market conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, cumulative default rates based on ratings are used to determine the potential cost of default, by year. The present value of these potential costs is then compared to the amortized cost of the security to determine the credit loss, limited by the amount that the fair value is less than the amortized cost basis.

Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through accumulated other comprehensive income, net of applicable taxes. If we intend to sell a security, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, the security is written down to its fair value and the write down is charged against the allowance for credit losses, with any incremental impairment reported in earnings. Reversals of the allowance for credit losses are permitted and should not exceed the allowance amount initially recognized.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. There was a $2.0 million and ($0.4) million net impairment charge recorded in the first nine months ended December 31, 2024 and 2023, respectively.

Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The adjusted cost and fair value of available-for-sale investments by contractual maturity were as follows:

Equity investments of common stock and non-redeemable preferred stock were as follows:

Investments, other

The carrying value of the other investments was as follows:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

4. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses were as follows:

5. Notes, Loans and Finance Leases Payable, Net

Long Term Debt

Long term debt was as follows:

Private Placement

On August 21, 2024, we entered into a Note Purchase Agreement ( the "Note Purchase Agreement") in connection with the private placement of our senior unsecured notes (the "Notes"). Under the Note Purchase Agreement, we sold an aggregate $500 million of the Notes, consisting of $100 million aggregate principal amount of our 5.86% Senior Notes, Series A due August 21, 2032, $100 million aggregate principal amount of our 5.91% Senior Notes, Series B due August 21, 2033, $100 million aggregate principal amount of our 5.95% Senior Notes, Series C due August 21, 2034, and $200 million aggregate principal amount of our 6.00% Senior Notes, Series D due August 21, 2035, each with maturities between 2032 and 2035. Interest is payable semiannually.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Annual Maturities of Notes, Loans and Finance Leases Payable

The annual maturities of our notes, loans and finance leases payable, before debt issuance costs, as of December 31, 2024 for the next five years and thereafter are as follows:

Interest on Borrowings

Interest Expense

Components of interest expense included the following:

Interest paid in cash was $65.0 million and $61.8 million for the third quarter of fiscal 2025 and 2024, respectively, and $207.2 million and $191.4 million for the first nine months of fiscal 2025 and 2024, respectively. Interest paid (received) in cash on derivatives contracts was ($1.2) million and ($1.5) million for the third quarter of fiscal 2025 and 2024, respectively. Interest paid (received) in cash on derivative contracts was ($4.2) million and ($3.8) million for the first nine months of fiscal 2025 and 2024, respectively.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Interest Rates

Interest rates and Company borrowings related to our revolving credit facilities were as follows:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

6. Derivatives

Cash Flow Hedges

We manage exposure to changes in market interest rates. We use interest rate swap agreements and forward swaps to reduce our exposure to changes in interest rates. Our use of derivative instruments is limited to highly effective interest rate swaps to hedge the risk of changes in cash flows (future interest payments) attributable to changes in secured overnight financing rate ("SOFR") swap rates with the designated benchmark interest rate being hedged on certain of our SOFR indexed variable rate debt. The interest rate swaps effectively fix our interest payments on certain SOFR indexed variable rate debt through July 2032. We monitor our positions and the credit ratings of our counterparties and do not currently anticipate non-performance by the counterparties. Interest rate swap agreements are not entered into for trading purposes. These fair values are determined using pricing valuation models, which include broker quotes for which significant inputs are observable. They include adjustments for counterparty credit quality and other deal-specific factors, where appropriate, and are classified as Level 2 in the fair value hierarchy.

The derivative fair values reflected in prepaid expense in the consolidated balance sheet were as follows:

(Gains) or losses recognized in income on interest rate derivatives are recorded as interest expense in the consolidated statements of operations. During the first nine months of fiscal 2025 and 2024, we recognized a (decrease)/increase in the fair value of our cash flow hedges of $4.4 million and $2.8 million, respectively, net of taxes. During the first nine months of fiscal 2025 and 2024, we reclassified ($9.4) million and ($3.0) million, respectively, from accumulated other comprehensive income (loss) (“AOCI”) to interest expense, net of tax. As of December 31, 2024, we expect to reclassify $3.3 million of net gains on interest rate contracts from AOCI to earnings as interest expense over the next 12 months.

Economic Hedges

We use derivatives to economically hedge our equity market exposure to indexed annuity products sold by our Life Insurance company. These contracts earn a return for the contract holder based on the change in the value of the S&P 500 index between annual index point dates. We buy and sell listed equity and index call options and call option spreads. The credit risk is with the party in which the options are written. The net option price is paid up front and there are no additional cash requirements or additional contingent liabilities. These contracts are held at fair value on our balance sheet. These derivative instruments are included in Investments, other on the consolidated balance sheets. The fair values of these call options are determined based on quoted market prices from the relevant exchange and are classified as Level 1 in the fair value hierarchy. Net (gains) losses recognized in net investment and interest income for the first nine months of December 31, 2024 and 2023 were $5.0 million and ($4.6) million, respectively.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Although the call options are employed to be effective hedges against our policyholder obligations from an economic standpoint, they do not meet the requirements for hedge accounting under GAAP. Accordingly, the changes in fair value of the call options are recognized each reporting date as a component of net investment and interest income. The change in fair value of the call options include the gains or losses recognized at the expiration of the option term and the changes in fair value for open contracts.

7. Accumulated Other Comprehensive Loss

The following tables provide the details and changes in AOCI:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(a) Liability for future policy benefits

8. Dividends

The following table lists the dividends that have been declared and issued for the first nine months of fiscal years 2025 and 2024:

As of December 31, 2024, no awards had been issued under the 2016 U-Haul Holding Company Stock Option Plan.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

9. Leases

The following tables show the components of our right-of-use (“ROU") assets, net:

• (Unaudited)
• (In thousands)_

• (Unaudited)
• (In thousands)_

As of December 31, 2024 and March 31, 2024, we had finance lease liabilities for the ROU assets, net of $57.0 million and $117.6 million, respectively, included in Notes, loans and finance leases payable, net in the consolidated balance sheets.

For the nine months ended December 31, 2024 and 2023, cash paid for leases included in our operating cash flow activities were $15.7 million and $17.5 million, respectively, and our financing cash flow activities were $60.7 million and $86.2 million, respectively. Non-cash activities of ROU assets in exchange for lease liabilities were $3.1 million and $17.9 million for the first nine months of fiscal 2025 and 2024, respectively.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The components of lease costs, including leases of less than 12 months, were as follows:

The short-term lease costs for the first nine months of fiscal 2025 and 2024 were not material.

Maturities of lease liabilities were as follows:

10. Contingencies

Cybersecurity Incident

On September 9, 2022, we announced that the Company was made aware of a data security incident involving U-Haul's information technology network. U-Haul detected a compromise of two unique passwords used to access U-Haul customers' information. U-Haul took immediate steps to contain the incident and promptly enhanced its security measures to prevent any further unauthorized access. U-Haul retained cybersecurity experts and incident response counsel to investigate the incident and implement additional security safeguards. The investigation determined that between November 5, 2021 and April 8, 2022, the threat actor accessed customer contracts containing customers’ names, dates of birth, and driver’s license or state identification numbers. None of U-Haul’s financial, payment processing or email systems were involved. U-Haul has notified impacted customers and relevant governmental authorities.

Several class action lawsuits related to the incident were filed against U-Haul, which were consolidated into one action in the U.S. District Court for the District of Arizona (the "Court"). On October 27, 2023, the Court dismissed with prejudice all claims except those brought under the California Consumer Privacy Act. The parties settled all remaining claims for $5.1 million pursuant to a settlement agreement approved by order of the Court on October 25, 2024. The full amount of $5.1 million is covered by insurance and has been paid by the insurer into trust for disbursement in accordance with the terms of the settlement agreement.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Environmental

Compliance with environmental requirements of federal, state, provincial and local governments may affect Real Estate’s business operations. Among other things, these requirements regulate the discharge of materials into the air, land and water 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.

Based upon the information currently available to Real Estate, compliance with environmental laws and its share of the costs of investigation and cleanup of known hazardous waste sites are not expected to result in a material adverse effect on the Company’s financial position, results of operations or cash flows.

Other

We are named as a defendant in various other litigation and claims arising out of the normal course of business. In our opinion, none of these other litigation and claims will have a material effect on our financial position and results of operations.

11. Related Party Transactions

U-Haul Holding Company 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.

SAC Holding Corporation and SAC Holding II Corporation (collectively, “SAC Holdings”) were established in order to acquire and develop self-storage properties. These properties are being managed by us pursuant to management agreements. SAC Holdings, Four SAC Self-Storage Corporation, Five SAC Self-Storage Corporation, Galaxy Investments, L.P. and 2015 SAC-Self-Storage, LLC are substantially controlled by Blackwater Investments, Inc. (“Blackwater”). Blackwater is wholly owned by Willow Grove Holdings LP, which is owned by Mark V. Shoen (a significant stockholder), and various trusts associated with Edward J. Shoen (our Chairman of the Board, President and a significant stockholder) and Mark V. Shoen.

Related Party Revenue

We currently manage the self-storage properties owned or leased by Blackwater and Mercury Partners, L.P. (“Mercury”), pursuant to a standard form of management agreement, under which we receive a management fee of between 4% and 10% of the gross receipts plus reimbursement for certain expenses. We received management fees, exclusive of reimbursed expenses, of $28.5 million and $25.0 million from the above-mentioned entities during the first nine months of fiscal 2025 and 2024, respectively. This

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

management fee is consistent with the fee received for other properties we previously managed for third parties. Mark V. Shoen controls the general partner of Mercury. The limited partner interests of Mercury are owned indirectly by James P. Shoen and various trusts benefiting Edward J. Shoen and James P. Shoen or their descendants.

During the fourth quarter of fiscal 2024, Mercury exercised its option to purchase 78 U-Haul branded self-storage locations from W.P. Carey. The self-storage component of these properties was previously leased by Mercury from W.P. Carey and managed by U-Haul, while the non-self-storage portions of these properties were leased by U-Haul. Post acquisition, Mercury now owns all of these properties and U-Haul acts as property manager.

There were several changes recognized in the first nine months of fiscal 2025 that will continue going forward as a result of this transaction. Retail sales revenues along with the associated cost of goods sold previously recognized by U-Haul will now be with Mercury. Self-moving equipment rental revenue and U-Box related revenue will remain unchanged; however, Mercury will earn standard commissions for the transactions at these locations. Management fees earned by U-Haul will increase as a result of the increased revenues attributable to Mercury and certain operating expenses at these locations that were formerly the responsibility of U-Haul will now be reimbursed by Mercury. The net effect of all of these changes is not expected to result in a material change to operating earnings over the course of the fiscal year.

Related Party Costs and Expenses

We lease space for marketing company offices, vehicle repair shops and hitch installation centers from subsidiaries of Blackwater and Mercury. The terms of the leases are similar to the terms of leases for other properties owned by unrelated parties that are leased to us.

SAC Holdings provides ancillary and specialty printing services to us. The financial and other terms of the transactions are substantially identical to the terms of additional specialty printing vendors.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2024, subsidiaries of Blackwater and Mercury acted as independent dealers. The financial and other terms of the dealership contracts are substantially identical to the terms of those with our other independent dealers whereby commissions are paid by us based upon equipment rental revenues.

These agreements with subsidiaries of Blackwater and Mercury, excluding Dealer Agreements, provided revenues of $28.0 million and $22.6 million, expenses of $5.7 million and $1.8 million and we received cash flows of $26.5 million and $20.9 million, respectively, during the first nine months of fiscal 2025 and 2024. Revenues were $408.6 million and $305.2 million and commission expenses were $84.3 million and $65.7 million, respectively, related to the Dealer Agreements, during the first nine months of fiscal 2025 and 2024.

In November 2024, Real Estate purchased a property from Property & Casualty Insurance for $4.6 million.

We determined that we do not have a variable interest pursuant to the variable interest entity model under ASC 810, Consolidation in the holding entities of Blackwater and Mercury.

Related Party Assets

(a)

Timing differences for intercompany receivables and payables with insurance subsidiaries resulting from the three-month difference in reporting periods.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

12. Reportable Segment Information:

U-Haul Holding Company’s three reportable segments are

• Moving and Storage, comprised of U-Haul Holding Company, U-Haul, and Real Estate and the subsidiaries of U-Haul and Real Estate,
• Property and Casualty Insurance, comprised of Repwest and its subsidiaries and ARCOA, and
• Life Insurance, comprised of Oxford and its subsidiaries.

We track revenues separately, but do not report any separate measure of the profitability for rental vehicles, rentals of self-storage spaces and sales of products. The information includes elimination entries necessary to consolidate U-Haul Holding Company, the parent, with its subsidiaries. Depreciation, net of gains on disposals, and total expenditures for property and equipment are only recorded within the Moving and Storage segment.

Revenues and earnings from operations before equity in earnings of subsidiaries by operating segment for the third quarter ended December 31, 2024 were as follows:

Revenues and earnings from operations before equity in earnings of subsidiaries by operating segment for the third quarter ended December 31, 2023 were as follows:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Revenues and earnings from operations before equity in earnings of subsidiaries by operating segment for the nine months ended December 31, 2024 were as follows:

Revenues and earnings from operations before equity in earnings of subsidiaries by operating segment for the nine months ended December 31, 2023 were as follows:

Total assets by operating segment as of December 31, 2024 were as follows:

Total assets by operating segment as of March 31, 2024 were as follows:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

13. Geographic Area Data

14. Employee Benefit Plans

The components of the net periodic benefit costs with respect to postretirement benefits were as follows:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

15. Fair Value Measurements

Certain assets and liabilities are recorded at fair value on the consolidated balance sheets and are measured and classified based upon a three-tiered approach to valuation. Financial assets and liabilities are recorded at fair value and are classified and disclosed in one of the following three categories:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 – Quoted prices for identical or similar financial instruments in markets that are not considered to be active, or similar financial instruments for which all significant inputs are observable, either directly or indirectly, or inputs other than quoted prices that are observable, or inputs that are derived principally from or corroborated by observable market data through correlation or other means; and

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and are unobservable. These reflect management’s assumptions about the assumptions a market participant would use in pricing the asset or liability.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Fair values of investments available-for-sale are based on quoted market prices, dealer quotes or discounted cash flows.

Fair values of derivatives are based on using pricing valuation models which include broker quotes.

The following tables represent the financial assets and liabilities on the consolidated balance sheets as of December 31, 2024 and March 31, 2024 that are measured at fair value on a recurring basis and the level within the fair value hierarchy:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

We estimate the fair value for financial instruments not carried at fair value using the same methods and assumptions as those we carry at fair value. The financial instruments presented below are reported at carrying value on the consolidated balance sheets.

Cash equivalents were $713.9 million and $1,173.6 million as of December 31, 2024 and March 31, 2024, respectively. Fair values of cash equivalents approximate carrying value due to the short period of time to maturity.

Fair values of mortgage loans and notes on real estate are based on quoted market prices, dealer quotes or discounted cash flows. Fair values of trade receivables approximate their recorded value.

Our financial instruments that are exposed to concentrations of credit risk consist primarily of temporary cash investments, trade receivables, and notes receivable. Limited credit risk exists on trade receivables due to the diversity of our customer base and their dispersion across broad geographic markets. We place our temporary cash investments with financial institutions and limit the amount of credit exposure to any one financial institution.

We have mortgage loans, which potentially expose us to credit risk. The portfolio of loans is principally collateralized by self-storage facilities and commercial properties. We have not experienced any material losses related to the loans from individual or groups of loans in any particular industry or geographic area. The estimated fair values were determined using the discounted cash flow method and using interest rates currently offered for similar loans to borrowers with similar credit ratings.

Other investments are substantially current or bear reasonable interest rates. As a result, the carrying values of these financial instruments approximate fair value.

The following tables represent our financial instruments not carried at fair value on the consolidated balance sheets and corresponding placement in the fair value hierarchy:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

16. Revenue Recognition

Revenue Recognized in Accordance with Topic 606

ASC Topic 606, Revenue from Contracts with Customers (Topic 606), outlines a five-step model for entities to use in accounting for revenue arising from contracts with customers. The standard applies to all contracts with customers except for leases, insurance contracts, financial instruments, certain nonmonetary exchanges and certain guarantees. The standard also requires disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments.

We enter into contracts that may include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of amounts collected from customers for taxes, such as sales tax, and remitted to the applicable taxing authorities. We account for a contract under Topic 606 when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable. For contracts scoped into this standard, revenue is recognized when (or as) the performance obligations are satisfied by means of transferring goods or services to the customer as applicable to each revenue stream as discussed below. There were no material contract assets as of December 31, 2024 and March 31, 2024.

Sales of self-moving and self-storage related products are recognized at the time that title passes and the customer accepts delivery. The performance obligations identified for this portfolio of contracts include moving and storage product sales, installation services and/or propane sales. Each of these performance obligations has an observable stand-alone selling price. We concluded that the performance obligations identified are satisfied at a point in time. The basis for this conclusion is that the customer does not receive the product/propane or benefit from the installation services until the related performance obligation is satisfied. These products/services being provided have an alternative use as they are not customized and can be sold/provided to any customer. In addition, we only have the right to receive payment once the products have been transferred to the customer or the installation services have been completed. Although product sales have a right of return policy, our estimated obligation for future product returns is not material to the financial statements at this time.

Property management fees are recognized over the period that agreed-upon services are provided. The performance obligation for this portfolio of contracts is property management services, which represents a series of distinct days of service, each of which is comprised of activities that may vary from day to day. However, those tasks are activities to fulfill the property management services and are not separate promises in the contract. We determined that each increment of the promised service is distinct. This is because the customer can benefit from each increment of service on its own and each increment of service is separately identifiable because no day of service significantly modifies or customizes another and no day of service significantly affects either the entity’s ability to fulfill another day of service or the benefit to the

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

customer of another day of service. As such, we concluded that the performance obligation is satisfied over time. Additionally, in certain contracts, the Company has the ability to earn an incentive fee based on operational results. We measure and recognize the progress toward completion of the performance obligation on a quarterly basis using the most likely amount method to determine an accrual for the incentive fee portion of the compensation received in exchange for the property management service. The variable consideration recognized is subject to constraints due to a range of possible consideration amounts based on actual operational results. The amount accrued in the third quarter of fiscal 2025 did not have a material effect on our financial statements.

Other revenue consists of numerous services or rentals, of which U-Box contracts and service fees from Moving Help are the main components. The performance obligations identified for U-Box contracts are fees for rental, storage and shipping of U-Box containers to a specified location, each of which are distinct. A contract may be partially within the scope of Topic 606 and partially within the scope of other topics. The rental and storage obligations in U-Box contracts meet the definition of a lease in Topic 842, while the shipping obligation represents a contract with a customer accounted for under Topic 606. Therefore, we allocate the total transaction price between the performance obligations of storage fees and rental fees and the shipping fees on a standalone selling price basis. U-Box shipping fees are collected once the shipment is in transit. Shipping fees in U-Box contracts are set at the initiation of the contract based on the shipping origin and destination, and the performance obligation is satisfied over time. U-Box shipping contracts span over a relatively short period of time, and the majority of these contracts begin and end within the same fiscal year. Moving Help® services fees are recognized in accordance with Topic 606. Moving Help® services are generated as we provide a neutral venue for the connection between the service provider and the customer for agreed-upon services. We do not control the specified services provided by the service provider before that service is transferred to the customer. Operating lease income recognized under Topic 842 within other revenue was $24.1 million and $21.7 million for the third quarters ended December 31, 2024 and 2023, respectively, and $75.8 million and $73.1 million for the nine months ended December 31, 2024 and 2023, respectively.

Deferred income primarily relates to payments received from customers prior to satisfaction of our performance obligations. Of the amounts recorded as unearned revenue as of March 31, 2024, $0.8 million and $49.2 million, respectively, was recognized as revenue for the third quarter and nine months ended December 31, 2024.

Revenue Recognized in Accordance with Topic 842

The Company’s self-moving rental revenues meet the definition of a lease pursuant to the guidance in ASC Topic 842, Leases, because those substitution rights do not provide an economic benefit to the Company that would exceed the cost of exercising the right. Please see Note 9, Leases, of the Notes to Consolidated Financial Statements.

Self-moving equipment rentals are recognized over the contract period that trucks and moving equipment are rented. We offer two types of self-moving rental contracts, one-way rentals and in-town rentals, which have varying payment terms. Customer payment is received at the initiation of the contract for one-way rentals, which covers an allowable limit for equipment usage. An estimated fee in the form of a deposit is received at the initiation of the contract for in-town rentals, and final payment is received upon the return of the equipment based on actual fees incurred. Self-moving rental contracts span a relatively short period of time, and the majority of these contracts began and ended within the same fiscal year.

Self-storage revenues are recognized as earned over the contract period based upon the number of paid storage contract days.

We lease portions of our operating properties to tenants under agreements that are classified as operating leases. We recognize the total minimum lease payments provided for under the leases on a straight-line basis over the lease term. Generally, under the terms of our leases, the majority of our rental expenses, including common area maintenance, real estate taxes and insurance, are recovered from our customers.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the minimum lease payments due from our customers and operating property tenants on leases for the next five years and thereafter:

The amounts above do not reflect future rental revenue from the renewal or replacement of existing leases.

Revenue Recognized in Accordance with Other Topics

Traditional life and Medicare supplement insurance premiums are recognized as revenue over the premium-paying periods of the contracts when due from the policyholders. For products where premiums are due over a significantly shorter duration than the period over which benefits are provided, such as our single premium whole life product, premiums are recognized when received and excess profits are deferred and recognized in relation to the insurance in-force.

Property and casualty insurance premiums are recognized as revenue over the policy periods. Interest and investment income are recognized as earned.

Net investment and interest income has multiple components. Interest income from bonds and mortgage notes are recognized when earned. Dividends on common and preferred stocks are recognized on the ex-dividend dates. Realized gains and losses on the sale or exchange of investments are recognized at the trade date.

In the following tables, revenue is disaggregated by timing of revenue recognition:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In the above tables, the revenues recognized over time include property management fees, the shipping fees associated with U-Box container rentals and a portion of other revenues. Revenues recognized at a point in time include self-moving and self-storage products and service sales and a portion of other revenues.

We recognized liabilities resulting from contracts with customers for self-moving equipment rentals, self-storage revenues, U-Box revenues and tenant revenues, in which the length of the contract goes beyond the reported period end, although rental periods of the equipment, storage and U-Box contract are generally short-term in nature. The timing of revenue recognition results in liabilities that are reflected in deferred income on the balance sheet.

17. Allowance for Credit Losses

Trade Receivables

Moving and Storage has two primary components of trade receivables, receivables from corporate customers and credit card receivables from customer sales and rental of equipment. For credit card receivables, the Company uses a trailing 13-month average historical chargeback percentage of total credit card receivables to estimate a credit loss reserve. The Company rents equipment to corporate customers for which the payment terms are 30 days.

The Company performs ongoing credit evaluations of its customers and assesses each customer’s credit worthiness. In addition, the Company monitors collections and payments from its customers and maintains an allowance based upon applying an expected credit loss rate to receivables based on the historical loss rate from similar high-risk customers adjusted for current conditions, including any specific customer collection issues identified, and forecasts of economic conditions. Delinquent account balances are written off after management has determined that the likelihood of collection is remote.

We believe that the historical loss information it has compiled is a reasonable base on which to determine expected credit losses for trade receivables because the composition of trade receivables as of that date is consistent with that used in developing the historical credit loss percentages (i.e., the similar risk characteristics of its customers and its lending practices have not changed significantly over time). To adjust the historical loss rates to reflect the effects of these differences in current conditions and forecasted changes, management assigns a rating to each customer which varies depending on the assessment of risk. Management estimated the loss rate at approximately 6% and 5% as of December 31, 2024 and March 31, 2024, respectively. Management developed this estimate based on its knowledge of past experience for which there were similar improvements in the economy. As a result, management applied the applicable credit loss rates to determine the expected credit loss estimate for each aging category. Accordingly, the allowance for expected credit losses as of December 31, 2024 and March 31, 2024 was $7.6 million and $6.2 million, respectively.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accrued Interest Receivable

Accrued interest receivables on available for sale securities totaled $29.3 million and $29.3 million as of December 31, 2024 and March 31, 2024, respectively, and are excluded from the estimate of credit losses.

We have elected not to measure an allowance on accrued interest receivables as our practice is to write off the uncollectible balance that is 90 days or more past due. Furthermore, we have elected to write off accrued interest receivables by reversing interest income.

Mortgage Loans, Net

Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at amortized cost. Modeling for the Company’s mortgage loans is based on inputs most highly correlated to defaults, including loan-to-value, occupancy, and payment history. Historical credit loss experience provides additional support for the estimation of expected credit losses. In assessing the credit losses, the portfolio is reviewed on a collective basis, using loan-specific cash flows to determine the fair value of the collateral in the event of default. Adjustments to this analysis are made to assess loans with a loan-to-value of 65% or greater. These loans are evaluated on an individual basis and loan specific risk characteristics such as occupancy levels, expense, income growth and other relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts.

When management determines that credit losses are expected to occur, an allowance for expected credit losses based on the fair value of the collateral is recorded.

There were no delinquent commercial mortgage loans as of December 31, 2024 and March 31, 2024. As of December 31, 2024 and March 31, 2024, the Company had no commercial mortgage loans in non-accrual status. The Company had no unfunded commitment balance to commercial loan borrowers as of December 31, 2024.

Reinsurance Recoverables

Reinsurance recoverables on paid and unpaid benefits was less than 1% of the total assets as of December 31, 2024, which is immaterial based on historical loss experience and high credit rating of the reinsurers.

Premium Receivables

Premium receivables were $4.1 million and $1.1 million as of December 31, 2024 and March 31, 2024, respectively, in which the credit loss allowance is immaterial based on our ability to cancel the policy if the policyholder does not pay premiums.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table details the changes in the Company’s reserve allowance for credit losses for trade receivables, fixed maturities and investments, other:

18. Income Tax

Tax regulations may require items to be included in our tax return at different times than when those items are reflected in our financial statements. Some of the differences are permanent, such as expenses that are not deductible on our tax return, and some of the differences are temporary, such as the timing of depreciation expense. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that will be used as a tax deduction or credit in our tax return in future years, which we have already recorded in our financial statements. Deferred tax liabilities generally represent deductions taken on our tax return that have not yet been recognized as an expense in our financial statements. We establish valuation allowances for our deferred tax assets if the amount of expected future taxable income is more likely than not to allow for the use of the deduction credit. Our effective tax rates for the third quarter ended December 31, 2024 and 2023 was a provision of 24.9% and 23.5%, respectively and for the nine months ended December 31, 2024 and 2023 was a provision of 24.1% and 23.8%, respectively. Such rates differed from the federal statutory rate of 21.0% primarily due to state and local income taxes for both periods. Income taxes, net paid in cash was $13.3 million and $22.5 million for the quarters ended December 31, 2024 and 2023, respectively, and $70.8 million and $51.6 million for the nine months ended December 31, 2024 and 2023, respectively.

The Organisation for Economic Co-Operation and Development (the "OECD") released a framework, referred to as "Pillar Two", to implement a global minimum corporate tax rate of 15% on certain multinational enterprises. Certain countries have enacted legislation to adopt the Pillar Two framework while several countries are considering or still announcing changes to their tax laws to implement the minimum tax directive. While we do not currently estimate Pillar Two to have a material impact on our effective tax rate, our analysis will continue as the OECD continues to release additional guidance and countries implement legislation.

19. Accounting Pronouncements

Adoption of New Accounting Pronouncements

In March 2023, the Financial Accounting Standards Board (the "FASB") issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements (“ASU 2023-01”). ASU 2023-01, accounting for leasehold improvements, requires a lessee in a common-control lease arrangement to amortize leasehold improvements that it owns over the improvements’ useful life to the common control group, regardless of the lease term, if the lessee continues to control the use of the underlying asset through a lease. The amendment was effective for fiscal years beginning after December 15, 2023. The adoption of the standard did not have a material impact on our consolidated financial statements and disclosures.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU requires all annual disclosures currently required by Topic 280 to be included in interim periods and is applicable to entities with a single reportable segment. The amendment is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendment is effective retrospectively to all prior periods presented in the financial statements. We do not anticipate the new standard will change our determination of segments upon adoption of ASU 2023-07 on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income tax paid. Early adoption is permitted. The amendment is effective prospectively to all annual periods beginning after December 15, 2024. We are currently assessing the impact of this standard on our consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-30): Clarifying the Effective Date, which clarified the effective date of this standard. The standard requires the disclosure of additional information about specific expense categories in the notes to the financial statements. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The standard allows for adoption on a prospective or retrospective basis. We are currently assessing the impact of adopting ASU 2024-03 on our consolidated financial statements and related disclosures.

In March 2024, the United States Securities and Exchange Commission ("SEC") issued a final rule that requires disclosure of: (i) financial statement impacts of severe weather events and other natural conditions; (ii) a roll forward of carbon offset and renewable energy credit or certificate balances if material to the Company's plan to achieve climate-related targets or goals; and (iii) material impacts on estimates and assumptions in the financial statements. In April 2024, the SEC issued an order staying the final rule pending judicial review of consolidated challenges to the rules by the U.S. Court of Appeals for the Eighth Circuit. The Company cannot predict what, if any, changes in scope or timing may occur as a result of the pending litigation. The Company continues its assessment to prepare for the new rule. If the rule ultimately goes into effect as adopted, the Company would be required to comply with financial statement disclosure requirements, other than disclosure of material impacts on estimates and assumptions, with respect to the fiscal year beginning April 1, 2025.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

20. Deferred Policy Acquisition Costs, Net

The following tables present a roll-forward of deferred policy acquisition costs related to long-duration contracts for the nine months ended December 31, 2024 and 2023.

• (Unaudited)
• (In thousands)_

• (Unaudited)
• (In thousands)_

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

21. Life Insurance Liabilities

The following tables summarize the balances and changes in the liability for future policy benefits for life insurance contracts and a reconciliation to policy benefits and losses, claims and loss expense payable:

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) Gross premiums are related to life insurance and are included in Life insurance premiums.

(2) Interest expense is included in Policy benefits and losses, claims and loss expenses payable.

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U-HAUL HOLDING COMPANY AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables present the balances and changes in liabilities from investment contracts account balances:

• (Unaudited)
• (In thousands, except for the average credited rate)_

• (Unaudited)
• (In thousands, except for the average credited rate)_

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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 U-Haul Holding Company's overall strategy, followed by a description of, and strategy related to, our operating segments to give the reader an overview of the goals of our businesses and the direction in which our businesses and products are moving. We then discuss our critical accounting estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results. Next, we discuss our results of operations for the third quarter and first nine months of fiscal 2025, compared with the third quarter and first nine months of fiscal 2024, which is followed by an analysis of liquidity changes in our balance sheets and cash flows, and a discussion of our financial commitments in the sections entitled "Liquidity and Capital Resources - Summary" and "Use of Cash". We conclude this MD&A by discussing our current outlook for the remainder of fiscal 2025.

This MD&A should be read in conjunction with the other sections of this Quarterly Report on Form 10-Q (this "Quarterly Report"), including the Notes to Consolidated Financial Statements. The various sections of this MD&A contain a number of forward-looking statements, as discussed under the caption, Cautionary Statements Regarding Forward-Looking Statements, all of which are based on our current expectations and could be affected by the uncertainties and risks described throughout this filing or in our most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2024. Many of these risks and uncertainties are beyond our control and our actual results may differ materially from these forward-looking statements.

U-Haul Holding Company, a Nevada corporation, has a third fiscal quarter that ends on the 31st of December for each year that is referenced. Our insurance company subsidiaries have a third quarter that ends on the 30th of September for each year that is referenced. They have been consolidated on that basis. Our insurance companies’ financial reporting processes conform to calendar year reporting as required by state insurance departments. Management believes that consolidating their calendar year into our fiscal year financial statements does not materially affect the presentation of financial position or results of operations. We disclose material events, if any, occurring during the intervening period. Consequently, all references to our insurance subsidiaries’ years 2024 and 2023 correspond to fiscal 2025 and 2024 for U-Haul Holding Company.

Overall Strategy

Our overall strategy is to maintain our leadership position in the North American “do-it-yourself” moving and storage industry. We 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, portable moving and storage units 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 units and portable moving and storage units available for rent, expanding the number of independent dealers and Company-operated locations in our network and taking advantage of our Storage Affiliate and Moving Help® capabilities.

Property and Casualty Insurance is focused on providing and administering property and casualty insurance to U-Haul and its customers, its independent dealers and affiliates.

Life Insurance is focused on long term capital growth through direct writing and reinsuring of life insurance, Medicare supplement and annuity products in the senior marketplace.

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Description of Operating and Reportable Segments

U-Haul Holding Company’s three operating and reportable segments are:

• Moving and Storage, comprised of U-Haul Holding Company, U-Haul, and Real Estate and the wholly owned subsidiaries of U-Haul and Real Estate;
• Property and Casualty Insurance, comprised of Repwest and its wholly owned subsidiaries and ARCOA; and
• Life Insurance, comprised of Oxford and its wholly owned subsidiaries.

Moving and Storage

Moving and Storage consists of the rental of trucks, trailers, portable moving and storage units, specialty rental items and self-storage spaces primarily to the household mover as well as sales of moving supplies, towing accessories and propane. Operations are conducted under the registered trade name U-Haul® throughout the United States and Canada.

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

U-Haul® branded self-moving related products and services, such as boxes, pads and tape, allow our customers to, among other things, protect their belongings from potential damage during the moving process. We are committed to providing a complete line of products selected with the “do-it-yourself” moving and storage customer in mind.

U-Haul’s mobile app, Truck Share 24/7, Skip-the-Counter Self-Storage rentals and Self-checkout for moving supplies provide our customers methods for conducting business with us directly via their mobile devices and also limiting physical exposure.

uhaul.com® is an online marketplace that connects consumers to our operations as well as independent Moving Help® service providers and thousands of independent Self-Storage Affiliates. Our network of customer-rated affiliates and service providers furnish pack and load help, cleaning help, self-storage and similar services throughout the United States and Canada. Our goal is to further utilize our web-based technology platform to increase service to consumers and businesses in the moving and storage market.

Since 1945, U-Haul has incorporated sustainable practices into its everyday operations. We believe that our basic business premise of equipment sharing helps reduce greenhouse gas emissions and reduces the inventory of total large capacity vehicles. We continue to look for ways to reduce waste within our business and are dedicated to manufacturing reusable components and recyclable products. We believe that our commitment to sustainability, through our products and services and everyday operations has helped us to reduce our impact on the environment.

Property and Casualty Insurance

Property and Casualty Insurance provides loss adjusting and claims handling for U-Haul through regional offices across the United States and Canada. Property and Casualty Insurance also underwrites components of the Safemove®, Safetow®, Safemove Plus®, Safestor® and Safestor Mobile® protection packages to U-Haul customers. We continue to focus on increasing the penetration of these products into the moving and storage market. The business plan for Property and Casualty Insurance includes offering property and casualty insurance products in other U-Haul related programs.

Life Insurance

Life Insurance provides life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, Medicare supplement and annuity policies.

Cybersecurity Incident

On September 9, 2022, we announced that the Company was made aware of a data security incident involving U-Haul's information technology network. U-Haul detected a compromise of two unique passwords used to access U-Haul customers' information. U-Haul took immediate steps to contain the

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incident and promptly enhanced its security measures to prevent any further unauthorized access. U-Haul retained cybersecurity experts and incident response counsel to investigate the incident and implement additional security safeguards. The investigation determined that between November 5, 2021 and April 8, 2022, the threat actor accessed customer contracts containing customers’ names, dates of birth, and driver’s license or state identification numbers. None of U-Haul’s financial, payment processing or email systems were involved. U-Haul has notified impacted customers and relevant governmental authorities.

Several class action lawsuits related to the incident were filed against U-Haul, which were consolidated into one action in the U.S. District Court for the District of Arizona (the "Court"). On October 27, 2023, the Court dismissed with prejudice all claims except those brought under the California Consumer Privacy Act. The parties settled all remaining claims for $5.1 million pursuant to a settlement agreement approved by order of the Court on October 25, 2024. The full amount of $5.1 million is covered by insurance and has been paid by the insurer into trust for disbursement in accordance with the terms of the settlement agreement.

Critical Accounting Policies and Estimates

Please refer to our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Results of Operations

U-Haul Holding Company and Consolidated Entities

Quarter Ended December 31, 2024 compared with the Quarter Ended December 31, 2023

Listed below, on a consolidated basis, are revenues for our major product lines for the third quarter of fiscal 2025 and the third quarter of fiscal 2024:

Self-moving equipment rental revenues increased $38.8 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024. In-Town transactions improved, while revenue per transaction increased for both our In-Town and one-way markets. Compared to the same period last year, we increased the number of Company-operated retail locations and independent dealers, as well as the number of box trucks in the rental fleet. Conversely, over this same time period we have reduced the number of pickup trucks in the rental fleet.

Self-storage revenues increased $16.6 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024. The average monthly number of occupied units increased by 6.8%, or 39,055 units, during the third quarter of fiscal 2025 compared with the same period last year. The growth in revenues and square feet rented comes from a combination of occupancy gains, the addition of new capacity to the portfolio and a 0.9% improvement in average revenue per occupied foot. During the quarter, we added approximately 2.3 million new net rentable square feet.

Sales of self-moving and self-storage products and services increased $0.1 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024. This was due to an increase in sales

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of propane largely offset by a decline in reported sales of hitches and moving supplies. Approximately $3.9 million of the decrease was related to the exercise of an option by Mercury Partners, L.P. ("Mercury") in February 2024 to purchase 78 U-Haul branded self-storage locations from W.P. Carey resulting in locations formerly leased by U-Haul now being treated as managed properties. From an operational standpoint, our customers will not recognize any changes to the services they receive from these locations. Please see Note 11. Related Party Transactions for additional information related to this transaction and its effect. Excluding the effects of this ownership change, moving supplies, propane and hitch sales from U-Haul owned and operated locations increased.

Property management fees decreased $1.3 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024, primarily due to decreased management incentive fees related to the above mentioned Mercury transaction of $2.3 million, partially offset by an increase in base management fees of $1.0 million.

Life insurance premiums increased $0.4 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024.

Property and casualty insurance premiums increased $1.9 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024. A significant portion of Repwest’s premiums relate to policies sold in conjunction with U-Haul rental transactions. The premium written corresponded with the change in moving and storage transactions at U-Haul during the same period.

Net investment and interest income decreased $16.9 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024. At our Property and Casualty Insurance subsidiaries, investment income increased $7.0 million due to changes in the market value of common stock investments and realized gains on the sale of common stock. Our Life Insurance subsidiaries investment income increased $3.7 million primarily from gains on derivatives used as hedges to fixed indexed annuities. The Moving and Storage segment interest income has been classified as Other interest income in fiscal 2025 and accounts for $27.7 million of the decrease.

Other revenue increased $9.6 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024, caused primarily by increases in both moving and storage transactions related to our U-Box® program. We continue to expand our breadth and reach of this program through additional warehouse space, moving and storage containers and delivery equipment.

Listed below are revenues and earnings from operations at each of our operating segments for the third quarter of fiscal 2025 and the third quarter of fiscal 2024. The insurance companies’ two quarters ended June 30, 2024 and 2023.

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Total costs and expenses increased $95.9 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024. Operating expenses for Moving and Storage increased $11.6 million. Repair expenses associated with the rental fleet experienced a $10.2 million decrease during the quarter while increases in personnel and liability costs accounted for the remainder of the increase.

Depreciation expense associated with our rental fleet increased $34.2 million for the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024 due to the higher cost of new additions to the fleet combined with expected decreases in resale values for certain units currently in the fleet. Net gains from the disposal of rental equipment decreased $32.7 million as resale values have decreased while the average cost of units being sold has increased. Depreciation expense on all other assets, largely from buildings and improvements, increased $5.6 million. Net losses on the disposal or retirement of land and buildings increased $0.8 million. Additional details are available in the following Moving and Storage section.

As a result of the changes in revenues and expenses described above, earnings from operations decreased to $150.7 million for the third quarter of fiscal 2025, compared with $197.6 million for the third quarter of fiscal 2024.

Interest expense for the third quarter of fiscal 2025 was $76.6 million, compared with $67.5 million for the third quarter of fiscal 2024, due to an increase in our average cost of debt. Other interest income at Moving and Storage increased $15.7 million due to the new presentation this year compared to last year. Prior year interest income was presented as part of operating earnings; notwithstanding the new presentation, we had a decrease of $12.0 million due to reduced invested cash balances and lower yields compared to the third quarter of fiscal 2024.

Income tax expense was $22.3 million for the third quarter of fiscal 2025, compared with $30.5 million for the third quarter of fiscal 2024.

As a result of the above-mentioned items, earnings available to common stockholders were $67.2 million for the third quarter of fiscal 2025, compared with $99.2 million for the third quarter of fiscal 2024.

Moving and Storage

Quarter Ended December 31, 2024 compared with the Quarter Ended December 31, 2023

Listed below are revenues for our major product lines at Moving and Storage for the third quarter of fiscal 2025 and the third quarter of fiscal 2024:

Self-moving equipment rental revenues increased $38.6 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024. In-Town transactions improved, while revenue per transaction increased for both our In-Town and one-way markets. Compared to the same period last year, we increased the number of Company-operated retail locations and independent dealers, as well as the number of box trucks in the rental fleet. Conversely, over this same time period we have reduced the number of pickup trucks in the rental fleet.

Self-storage revenues increased $16.6 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024. The average monthly number of occupied units increased by 6.8%, or 39,055

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units, during the third quarter of fiscal 2025 compared with the same period last year. The growth in revenues and square feet rented comes from a combination of occupancy gains, the addition of new capacity to the portfolio and a 0.9% improvement in average revenue per occupied foot. During the quarter, we added approximately 2.3 million new net rentable square feet.

We own and manage self-storage facilities. Self-storage revenues reported in the consolidated financial statements represent Company-owned locations only. Self-storage data for our owned storage locations was as follows:

Over the last 12 months we added approximately 7.4 million net rentable square feet of new storage to the system. This was a mix of approximately 2.4 million square feet of existing storage locations we acquired and 5.0 million square feet of new development.

Sales of self-moving and self-storage products and services increased $0.1 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024. This was due to an increase in sales of propane largely offset by a decline in reported sales of hitches and moving supplies. Approximately $3.9 million of the decrease was related to the exercise of an option by Mercury in February 2024 to purchase 78 U-Haul branded self-storage locations from W.P. Carey resulting in locations formerly leased by U-Haul now being treated as managed properties. From an operational standpoint, our customers will not recognize any changes to the services they receive from these locations. Please see Note 11. Related Party Transactions for additional information related to this transaction and its effect. Excluding the effects of this ownership change, moving supplies, propane and hitch sales from U-Haul owned and operated locations increased.

Property management fees decreased $1.3 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024, primarily due to decreased management incentive fees related to the above mentioned Mercury transaction of $2.3 million, partially offset by an increase in base management fees of $1.0 million.

Other revenue increased $9.6 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024, caused primarily by increases in both moving and storage transactions related to our U-Box® program. We continue to expand our breadth and reach of this program through additional warehouse space, moving and storage containers and delivery equipment.

Total costs and expenses increased $89.1 million during the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024. Operating expenses increased $11.6 million. Repair costs associated with the rental fleet experienced a $10.2 million decrease during the quarter while increases in personnel and liability costs accounted for the remainder of the increase.

Depreciation expense associated with our rental fleet increased $34.2 million for the third quarter of fiscal 2025, compared with the third quarter of fiscal 2024 due to the higher cost of new additions to the fleet combined with expected decreases in resale values for certain units currently in the fleet. Net gains from the disposal of rental equipment decreased $32.7 million as resale values have decreased while the average cost of units being sold has increased. Depreciation expense on all other assets, largely from buildings and improvements, increased $5.6 million. Net losses on the disposal or retirement of land and buildings increased $0.8 million.

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The components of depreciation, net of (gains) losses on disposals were as follows:

As a result of the changes in revenues and expenses described above, earnings from operations for Moving and Storage, before consolidation of the equity in the earnings of the insurance subsidiaries, decreased to $127.3 million for the third quarter of fiscal 2025, compared with $180.5 million for the third quarter of fiscal 2024.

Equity in the earnings of U-Haul Holding Company’s insurance subsidiaries was $18.0 million for the third quarter of fiscal 2025, compared with $14.2 million for the third quarter of fiscal 2024.

As a result of the changes in revenues and expenses described above, consolidated earnings from operations for Moving and Storage decreased to $145.2 million for the third quarter of fiscal 2025, compared with $194.7 million for the third quarter of fiscal 2024.

Property and Casualty Insurance

Quarter Ended September 30, 2024 compared with the Quarter Ended September 30, 2023

Premiums were $29.1 million and $27.3 million for the quarters ended September 30, 2024 and 2023, respectively. A significant portion of Repwest’s premiums relate to policies sold in conjunction with U-Haul rental transactions. The premium written corresponded with the change in moving and storage transactions at U-Haul during the same period.

Net investment and interest income was $9.0 million and $2.0 million for the quarters ended September 30, 2024 and 2023, respectively. The main driver of the change in net investment income was gains associated with our common stock investments.

Operating expenses were $12.6 million and $13.1 million for the quarters ended September 30, 2024 and 2023, respectively. The change was primarily due to a decrease in commissions in select geographies.

Benefits and losses incurred were $6.0 million and $6.7 million for the quarters ended September 30, 2024 and 2023, respectively. The increase was due to growth in premiums and coverage.

As a result of the changes in revenues and expenses described above, pretax earnings from operations were $19.5 million and $9.4 million for the quarters ended September 30, 2024 and 2023, respectively.

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Life Insurance

Quarter Ended September 30, 2024 compared with the Quarter Ended September 30, 2023

Premiums were $22.9 million and $22.6 million for the quarters ended September 30, 2024 and 2023, respectively. Deferred annuity deposits were $163.2 million or $81.5 million above prior year due to increased sales activity; these are accounted for on the balance sheet as deposits rather than premiums.

Net investment income was $32.4 million and $28.7 million for the quarters ended September 30, 2024 and 2023, respectively. Realized gains on derivatives used as hedges to fixed indexed annuities were $2.0 million. The reduction in the provision for expected credit losses resulted in a $1.6 million increase to investment income. Net interest income and realized gains on the invested assets increased $2.6 million, primarily from bonds.

Operating expenses were $5.3 million and $4.6 million for the quarters ended September 30, 2024 and 2023, respectively, primarily due to the increase in administrative expenses.

Benefits and losses incurred were $42.6 million and $35.8 million for the quarters ended September 30, 2024 and 2023, respectively. Interest credited to policyholders increased $5.9 million due to an increase in the interest credited rates on equity - indexed annuities. Life benefits decreased $0.9 million due to lower death claims as the effects of COVID-19 have waned along with declining new sales. Medicare supplement benefits increased by $2.5 million from the increased policies in force. Benefits on the annuities decreased $0.8 million.

Amortization of deferred acquisition costs (“DAC”), sales inducement asset ("SIA") and the value of business acquired ("VOBA") was $4.5 million and $4.2 million for the quarters ended September 30, 2024 and 2023, respectively. The increase in DAC amortization was primarily due to a higher amount of mortgage prepayment penalty gains, for which we offset gains with a corresponding level of amortization.

As a result of the changes in revenues and expenses described above, pretax earnings from operations were $4.1 million and $8.0 million for the quarters ended September 30, 2024 and 2023, respectively.

U-Haul Holding Company and Consolidated Entities

Nine Months Ended December 31, 2024 compared with the Nine Months Ended December 31, 2023

Listed below on a consolidated basis are revenues for our major product lines for the first nine months of fiscal 2025 and the first nine months of fiscal 2024:

Self-moving equipment rental revenues increased $71.9 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024. In-Town transactions improved while revenue per transaction increased for both our In-Town and one-way markets. Compared to the same period last year, we increased the number of Company-operated retail locations and independent dealers, as well as the number of box trucks in the rental fleet. Conversely, over this same time period we have reduced the number of pickup trucks in the rental fleet.

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Self-storage revenues increased $49.0 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024. The average monthly number of occupied units increased by 6.0%, or 34,190 units, during the first nine months of fiscal 2025 compared with the same period last year. The growth in revenues and square feet rented comes from a combination of occupancy gains, the addition of new capacity to the portfolio and a 1.7% improvement in average revenue per occupied foot. During the first nine months, we added approximately 4.9 million of new net rentable square feet.

Sales of self-moving and self-storage products and services decreased $8.0 million for the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024. This was due to a decline in reported sales of hitches and moving supplies partially offset by an increase in propane sales. Approximately $14.0 million of the decrease was related to the exercise of an option by Mercury in February 2024 to purchase 78 U-Haul branded self-storage locations from W.P. Carey resulting in locations formerly leased by U-Haul now being treated as managed properties. From an operational standpoint, our customers will not recognize any changes to the services they receive from these locations. Please see Note 11. Related Party Transactions for additional information related to this transaction and its effect. Excluding the effects of this ownership change, moving supplies, propane and hitch sales from U-Haul owned and operated locations increased.

Property management fees decreased $0.6 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024, primarily due to decreased management incentive fees related to the above mentioned Mercury transaction of $3.8 million, offset by an increase in base management fees of $3.2 million.

Life insurance premiums decreased $4.0 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024 due primarily to decreased Medicare supplement premiums.

Property and casualty insurance premiums increased $3.0 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024.

Net investment and interest income decreased $71.3 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024. At our Property and Casualty Insurance subsidiaries, investment income increased $5.8 million due to changes in the market value of common stock investments and realized gains on the sale of common stock. Our Life Insurance subsidiaries investment income increased $6.5 million primarily from gains on derivatives used as hedges to fixed indexed annuities. The Moving and Storage segment interest income has been classified as Other interest income in fiscal 2025 and accounts for $83.5 million of the decrease.

Other revenue increased $25.7 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024, caused primarily by increases in moving and storage transactions related to our U-Box® program. We continue to expand our breadth and reach of this program through additional warehouse space, moving and storage containers and delivery equipment.

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Listed below are revenues and earnings from operations at each of our operating segments for the first nine months of fiscal 2025 and the first nine months of fiscal 2024. The insurance companies’ first nine months ended September 30, 2024 and 2023.

Total costs and expenses increased $326.1 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024. Operating expenses for Moving and Storage increased $88.3 million. Repair costs associated with the rental fleet experienced a $38.8 million decrease during the first nine months of fiscal 2025 while we experienced increases in personnel, liability costs, property taxes, utilities and building maintenance. Approximately $16.5 million of the operating expense increase was due to non-recurring costs associated with our transition to a new box supplier that we recognized in the second quarter of fiscal 2025.

Depreciation expense associated with our rental fleet increased $92.5 million for the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024 due to an increase in the pace of new additions to the fleet combined with their higher cost. Net gains from the disposal of rental equipment decreased $109.8 million as resale values have decreased while the average cost of units being sold has increased. We increased the number of retired trucks sold compared to the same period last year. Depreciation expense on all other assets, largely from buildings and improvements, increased $22.0 million. Net losses on the disposal or retirement of land and buildings increased $4.1 million. Additional details are available in the following Moving and Storage section.

As a result of the above-mentioned changes in revenues and expenses, earnings from operations decreased $260.7 million to $758.9 million for the first nine months of fiscal 2025, as compared with $1,019.6 million for the first nine months of fiscal 2024.

Interest expense for the first nine months of fiscal 2025 was $215.3 million, compared with $192.0 million for the first nine months of fiscal 2024, due to an increase in our average cost of debt. Other interest income at Moving and Storage increased $50.0 million due to the new presentation this year compared to last year. Prior year interest income was presented as part of operating earnings; notwithstanding the new presentation, we had a decrease of $33.2 million due to reduced invested cash balances and lower interest yields compared to the to the first nine months of fiscal 2024.

Income tax expense was $142.6 million for the first nine months of fiscal 2025, compared with $196.9 million for the first nine months of fiscal 2024.

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As a result of the above-mentioned items, earnings available to common stockholders were $449.4 million for the first nine months of fiscal 2025, compared with $629.6 million for the first nine months of fiscal 2024.

Moving and Storage

Nine Months Ended December 31, 2024 compared with the Nine Months Ended December 31, 2023

Listed below are revenues for the major product lines at our Moving and Storage operating segment for the first nine months of fiscal 2025 and the first nine months of fiscal 2024:

Self-moving equipment rental revenues increased $71.3 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024. In-Town transactions improved while revenue per transaction increased for both our In-Town and one-way markets. Compared to the same period last year, we increased the number of Company-operated retail locations and independent dealers, as well as the number of box trucks in the rental fleet. Conversely, over this same time period we have reduced the number of pickup trucks in the rental fleet.

Self-storage revenues increased $49.0 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024. The average monthly number of occupied units increased by 6.0%, or 34,190 units, during the first nine months of fiscal 2025 compared with the same period last year. The growth in revenues and square feet rented comes from a combination of occupancy gains, the addition of new capacity to the portfolio and a 1.7% improvement in average revenue per occupied foot. During the first nine months, we added approximately 4.9 million of new net rentable square feet.

We own and manage self-storage facilities. Self-storage revenues reported in the consolidated financial statements represent Company-owned locations only. Self-storage data for our owned storage locations was as follows:

Over the last twelve months we added approximately 7.4 million net rentable square feet of new storage to the system. This was a mix of approximately 2.4 million square feet of existing storage locations we acquired and 5.0 million square feet of new development.

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Sales of self-moving and self-storage products and services decreased $8.0 million for the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024. This was due to a decline in reported sales of hitches and moving supplies partially offset by an increase in propane sales. Approximately $14.0 million of the decrease was related to the exercise of an option by Mercury in February 2024 to purchase 78 U-Haul branded self-storage locations from W.P. Carey resulting in locations formerly leased by U-Haul now being treated as managed properties. From an operational standpoint, our customers will not recognize any changes to the services they receive from these locations. Please see Note 11. Related Party Transactions for additional information related to this transaction and its effect. Excluding the effects of this ownership change, moving supplies, propane and hitch sales from U-Haul owned and operated locations increased.

Property management fees decreased $0.6 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024, primarily due to decreased management incentive fees related to the above mentioned Mercury transaction of $3.8 million, offset by an increase in base management fees of $3.2 million.

Other revenue increased $25.5 million during the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024, caused primarily by increases in moving and storage transactions related to our U-Box® program. We continue to expand our breadth and reach of this program through additional warehouse space, moving and storage containers and delivery equipment.

Total costs and expenses increased $319.4 million during the first nine months of fiscal 2025, compared with the nine months of fiscal 2024. Operating expenses increased $88.3 million. Repair costs associated with the rental fleet experienced a $38.8 million decrease during the first nine months of fiscal 2025 while we experienced increases in personnel, liability costs, property taxes, utilities and building maintenance. Approximately $16.5 million of the operating expense increase was due to non-recurring costs associated with our transition to a new box supplier that we recognized in the second quarter of fiscal 2025.

Depreciation expense associated with our rental fleet increased $92.5 million for the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024 due to an increase in the pace of new additions to the fleet combined with their higher cost. Net gains from the disposal of rental equipment decreased $109.8 million as resale values have decreased while the average cost of units being sold has increased. We increased the number of retired trucks sold compared to the same quarter last year. Depreciation expense on all other assets, largely from buildings and improvements, increased $22.0 million. Net losses on the disposal or retirement of land and buildings increased $4.1 million.

The components of depreciation, net of gains on disposals for the first nine months of fiscal 2025 were as follows:

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As a result of the above-mentioned changes in revenues and expenses, earnings from operations for Moving and Storage before consolidation of the equity in the earnings of the insurance subsidiaries decreased to $703.0 million for the first nine months of fiscal 2025, compared with $968.9 million for the first nine months of fiscal 2024.

Equity in the earnings of U-Haul Holding Company’s insurance subsidiaries was $44.0 million for the first nine months of fiscal 2025, compared with $41.3 million for the first nine months of fiscal 2024.

As a result of the changes in revenues and expenses described above, earnings from operations decreased to $747.0 million for the first nine months of fiscal 2025, compared with $1,010.2 million for the first nine months of fiscal 2024.

Property and Casualty Insurance

Nine Months Ended September 30, 2024 compared with the Nine Months Ended September 30, 2023

Premiums were $77.7 million and $74.7 million for the nine months ended September 30, 2024 and 2023, respectively. A significant portion of Repwest’s premiums relate to policies sold in conjunction with U-Haul rental transactions. The premium written corresponded with the change in moving and storage transactions at U-Haul during the same period.

Net investment and interest income was $20.1 million and $14.3 million for the nine months ended September 30, 2024 and 2023, respectively. The main driver of the change in net investment income was gains associated with our common stock investments.

Operating expenses were $36.1 million and $36.5 million for the nine months ended September 30, 2024 and 2023, respectively. The change was primarily due to a decrease in commissions in select geographies.

Benefits and losses incurred were $16.7 million and $15.4 million for the nine months ended September 30, 2024 and 2023, respectively. The increase was due to growth in premiums written.

As a result of the above-mentioned changes in revenues and expenses, pretax earnings from operations were $44.8 million and $36.8 million for the nine months ended September 30, 2024 and 2023, respectively.

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Life Insurance

Nine Months Ended September 30, 2024 compared with the Nine Months Ended September 30, 2023

Premiums were $64.2 million and $68.2 million for the nine months ended September 30, 2024 and 2023, respectively. Medicare Supplement premiums decreased $2.4 million. Life premiums decreased $1.7 million primarily from the decrease in sales of single premium life and final expense. Deferred annuity deposits were $374.8 million or $168.0 million above prior year due to increased sales activity; these are accounted for on the balance sheet as deposits rather than premiums.

Net investment income was $98.3 million and $91.8 million for the nine months ended September 30, 2024 and 2023, respectively. Realized gains on derivatives used as hedges to fixed indexed annuities were $1.4 million current year-to-date. The decrease in the provision for expected credit losses resulted in a $1.6 million increase to the investment income. Net interest income and realized gain on the invested assets increased $2.6 million.

Operating expenses were $20.7 million and $14.7 million for the nine months ended September 30, 2024 and 2023, respectively. The increase was due to salary and wages expenses, consulting fees, receivable write downs and audit fees.

Benefits and losses incurred were $120.4 million and $115.0 million for the nine months ended September 30, 2024 and 2023, respectively. Interest credited to policyholders increased $9.4 million due to an increase in the interest credited rates on equity - indexed annuities while the stock market has risen over the last year. Life benefits decreased $2.6 million due to lower death claims as the effects of COVID-19 have waned and lower sales due to premium adjustments that took place in late 2021. Medicare supplement benefits decreased by $0.8 million from the declined policies in force.

Amortization of DAC, SIA and VOBA were $13.6 million and $19.0 million for the nine months ended September 30, 2024 and 2023, respectively. The decrease is due to the fluctuations of the ASU 2018-12 amortization method.

As a result of the above-mentioned changes in revenues and expenses, pretax earnings from operations were $11.6 million and $14.7 million for the nine months ended September 30, 2024 and 2023, respectively.

Liquidity and Capital Resources

We believe our current capital structure is a positive factor that will enable us to pursue our operational plans and goals and provide us with sufficient liquidity. There are many factors that could affect our liquidity,

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including some which are beyond our control, and there is no assurance that future cash flows and liquidity resources will be sufficient to meet our outstanding debt obligations and our other future capital needs.

As of December 31, 2024, cash and cash equivalents totaled $1,017.4 million, compared with $1,534.5 million as of March 31, 2024. The assets of our insurance subsidiaries are generally unavailable to fulfill the obligations of non-insurance operations (Moving and Storage). As of December 31, 2024 (or as otherwise indicated), cash and cash equivalents, other financial assets (receivables, other investments, fixed maturities, equity securities, and related party assets) and debt obligations of each operating segment were as follows:

As of December 31, 2024, Moving and Storage had additional cash available under existing credit facilities of $465.0 million. The majority of invested cash in the Moving and Storage segment is held in government money market funds.

Net cash provided by operating activities increased $15.9 million in the first nine months of fiscal 2025 compared with the first nine months of fiscal 2024 due to the timing of the settlement of credit cards.

Net cash used in investing activities increased $728.6 million in the first nine months of fiscal 2025, compared with the first nine months of fiscal 2024. Purchases of property, plant and equipment increased $462.5 million. Fleet related spending increased $236.8 million while investment spending on real estate and development increased $245.4 million. Cash from the sales of property, plant and equipment decreased $68.0 million largely due to fleet sales. For our insurance subsidiaries, net cash used in investing activities increased $219.7 million due to an increase in purchases and decreased proceeds on sales in fixed maturity investments and net cash provided by investing activities for Moving and Storage increased $19.3 million on short-term Treasury notes.

Net cash provided by financing activities increased $460.6 million in the first nine months of fiscal 2025, as compared with the first nine months of fiscal 2024. This was due to a combination of increased debt payments of $88.9 million, decreased finance lease repayments of $25.5 million, an increase in cash from borrowings of $367.9 million, an increase in dividend payments of $3.5 million and an increase in net annuity deposits from Life Insurance of $159.7 million.

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Liquidity and Capital Resources and Requirements of Our Operating Segments

Moving and Storage

To meet the needs of our customers, U-Haul maintains a large fleet of rental equipment. Capital expenditures have primarily consisted of new rental equipment acquisitions and the buyouts of existing fleet from leases. The capital to fund these expenditures has historically been obtained internally from operations and the sale of used equipment and externally from debt and lease financing. U-Haul estimates that during fiscal 2025, the Company will reinvest in its rental equipment fleet approximately $1,115 million, net of equipment sales and excluding any lease buyouts. Through the first nine months of fiscal 2025, the Company invested, net of sales, approximately $1,066 million before any lease buyouts in its rental equipment fleet. Fleet investments in fiscal 2025 and beyond will be dependent upon several factors including the availability of capital, the truck rental environment, the availability of equipment from our original equipment manufacturers and the used-truck sales market. We anticipate that the fiscal 2025 investments will be funded largely through debt financing, external lease financing and cash from operations. Management considers several factors including cost and tax consequences when selecting a method to fund capital expenditures. Our allocation between debt and lease financing can change from year to year based upon financial market conditions which may alter the cost or availability of financing options.

The Company has traditionally funded the acquisition of self-storage properties to support U-Haul's growth through debt financing and funds from operations. The Company’s plan for the expansion of owned storage properties includes the acquisition of existing self-storage locations from third parties, the acquisition and development of bare land, and the acquisition and redevelopment of existing buildings not currently used for self-storage. For the first nine months of fiscal 2025, the Company invested $1,213.9 million in real estate acquisitions, new construction and renovation and repair. For fiscal 2025, the timing of new projects will be dependent upon several factors, including the entitlement process, availability of capital, weather, and the identification and successful acquisition of target properties and the availability of labor and materials. We are likely to maintain a high level of real estate capital expenditures through the remainder of fiscal 2025. U-Haul's growth plan in self-storage also includes the expansion of the U-Haul Storage Affiliate program, which does not require significant capital.

Net capital expenditures (purchases of property, plant and equipment less proceeds from the sale of property, plant and equipment and lease proceeds) at Moving and Storage were $2,333.4 million and $1,802.8 million for the first nine months of fiscal 2025 and 2024, respectively. The components of our net capital expenditures are provided in the following table:

Moving and Storage continues to hold significant cash and we believe has access to additional liquidity. Management may invest these funds in our existing operations, expand our product lines or pursue external opportunities in the self-moving and storage marketplace, pay dividends, repurchase shares of common stock or reduce existing indebtedness where possible.

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Property and Casualty Insurance

State insurance regulations restrict the amount of dividends that can be paid to stockholders of insurance companies. As a result, Property and Casualty Insurance’s assets are generally not available to satisfy the claims of U-Haul Holding Company or its legal subsidiaries. We believe that stockholders’ equity at Property and Casualty Insurance remains sufficient, and we do not believe that its ability to pay ordinary dividends to U-Haul Holding Company will be restricted per state regulations.

Property and Casualty Insurance’s stockholder’s equity was $389.9 million and $350.5 million as of September 30, 2024 and December 31, 2023, respectively. The increase resulted from net earnings of $35.5 million and an increase in other comprehensive income of $4.0 million due to the decrease in the market value of its investment portfolio. Property and Casualty Insurance does not use debt or equity issues to increase capital and therefore has no direct exposure to capital market conditions other than through its investment portfolio.

Life Insurance

Life Insurance manages its financial assets to meet policyholder and other obligations, including investment contract withdrawals and deposits. Life Insurance’s net deposits as of September 30, 2024 were $71.8 million. State insurance regulations restrict the amount of dividends that can be paid to stockholders of insurance companies. As a result, Life Insurance’s assets are generally not available to satisfy the claims of U-Haul Holding Company or its legal subsidiaries.

Life Insurance’s stockholder’s equity was $251.3 million and $197.7 million as of September 30, 2024 and December 31, 2023, respectively. The increase resulted from net earnings of $8.5 million and an increase in other comprehensive income of $45.2 million primarily due to the effect of interest rate changes on the fixed maturity portion of the investment portfolio. Outside of its membership in the Federal Home Loan Bank (“FHLB”) system, Life Insurance has not historically used debt or equity issues to increase capital and therefore has not had any significant direct exposure to capital market conditions other than through its investment portfolio. As of September 30, 2024, Oxford had outstanding deposits of $60.0 million in the FHLB, for which Oxford pays fixed interest rates between 0.55% and 4.52% with maturities between March 31, 2025 and April 2, 2029. As of September 30, 2024, available-for-sale-investments held with the FHLB totaled $218.1 million, of which $196.0 million were pledged as collateral to secure the outstanding advances. The balances of these advances are included within liabilities from investment contracts on the consolidated balance sheets.

Cash Flows by Operating Segments

Moving and Storage

Net cash provided from operating activities were $1,166.3 million and $1,147.0 million for the first nine months of fiscal 2025 and 2024, respectively, due to the timing of the settlement of credit cards.

Property and Casualty Insurance

Net cash provided by operating activities were $36.1 million and $27.4 million for the first nine months ended September 30, 2024 and 2023, respectively. The increase in operating cash flows was primarily due to timing of settlement of payables for securities.

Property and Casualty Insurance’s cash and cash equivalents amounted to $102.3 million and $52.5 million as of September 30, 2024 and December 31, 2023, respectively. These balances reflect funds in transition from maturity proceeds to long-term investments. Management believes this level of liquid assets, combined with budgeted cash flow, is adequate to meet our future operating cash needs. Capital and operating budgets allow Property and Casualty Insurance to schedule cash needs in accordance with investment and underwriting proceeds.

Life Insurance

Net cash provided by operating activities were $53.5 million and $65.6 million for the third quarters ended September 30, 2024 and 2023, respectively. The decrease in operating cash flows was primarily due to timing of settlement of receivables for securities and decrease in premiums net of benefits and commissions.

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In addition to cash flows from operating activities and financing activities, a substantial amount of liquid funds are available through Life Insurance’s short-term portfolio and its membership in the FHLB. As of September 30, 2024 and December 31, 2023, cash and cash equivalents amounted to $32.0 million and $101.9 million, respectively. Management believes that the overall sources of liquidity are adequate to meet our future operating cash needs.

Liquidity and Capital Resources - Summary

We believe we have the financial resources needed to meet our business plans, including our working capital needs. We continue to hold significant cash and have access to existing credit facilities and additional liquidity to meet our anticipated capital expenditure requirements for investment in our rental fleet, rental equipment and storage acquisitions and build outs.

The Internal Revenue Service completed and finalized their examination for tax years March 2014 through March 2021. As a result, we are owed $129 million plus interest which is reflected in Prepaid expense.

Our borrowing strategy has primarily focused on asset-backed financing, rental equipment leases and private placement borrowings limited by the amount of unencumbered assets available. As part of this strategy, we seek to ladder maturities and fix interest rates. While each of these loans typically contains provisions governing the amount that can be borrowed in relation to specific assets, the overall structure is flexible with no limits on overall Company borrowings. Management believes it has adequate liquidity between cash and cash equivalents and unused borrowing capacity in existing credit facilities to meet the current and expected needs of the Company over the next several years. As of December 31, 2024, we had available borrowing capacity under existing credit facilities of $465.0 million. While it is possible that circumstances beyond our control could alter the ability of the financial institutions to lend us the unused lines of credit, we believe that there are additional opportunities for leverage in our existing capital structure.

Use of Cash

Our estimates as to future use of cash have not materially changed from the disclosure included under the subheading Use of Cash in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

Fiscal 2025 Outlook

We will continue to focus our attention on increasing transaction volume and improving pricing, product and utilization for self-moving equipment rentals. Maintaining an adequate level of new investment in our truck fleet is an important component of our plan to meet our operational goals and is likely to increase in fiscal 2025. Revenue in the U-Move® program could be adversely impacted should we fail to execute in any of these areas. Should we be unable to acquire enough new rental equipment to properly rotate our fleet, repair and maintenance costs will continue to increase. Even if we execute our plans, we could see declines in revenues primarily due to unforeseen events including adverse economic conditions or heightened competition that is beyond our control.

With respect to our storage business, we have added new locations and expanded existing locations. In fiscal 2025, we are actively looking to complete current projects, increase occupancy in our existing portfolio of locations and acquire new locations. New projects and acquisitions will be considered and pursued if they fit our long-term plans and meet our financial objectives. It is likely spending on acquisitions and new development will increase in fiscal 2025. We will continue to invest capital and resources in the U-Box® program throughout fiscal 2025.

Inflationary pressures may challenge our ability to maintain or improve upon our operating margin.

Property and Casualty Insurance will continue to provide loss adjusting and claims handling for U-Haul and underwrite components of the Safemove®, Safetow®, Safemove Plus®, Safestor® and Safestor Mobile® protection packages to U-Haul customers.

Life Insurance is pursuing its goal of expanding its presence in the senior market through the sales of its Medicare supplement, life and annuity policies. This strategy includes growing its agency force, expanding its new product offerings, and pursuing business acquisition opportunities.

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Consolidating Schedules by Operating and Reporting Segment (Unaudited)

This information includes elimination entries necessary to consolidate U-Haul Holding Company, the parent with its subsidiaries.

Consolidating balance sheets as of December 31, 2024 were as follows:

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Consolidating balance sheets as of December 31, 2024 continued:

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Consolidating balance sheets as of March 31, 2024 were as follows:

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Consolidating balance sheets as of March 31, 2024 continued:

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Consolidating statement of operations by operating segment for the quarter ended December 31, 2024 were as follows:

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Consolidating statement of operations by operating segment for the quarter ended December 31, 2023 were as follows: