TABLE OF CONTENTS

		Page No.
	PART I FINANCIAL INFORMATION
Item 1.	Financial Statements
	a)Condensed Consolidated Balance Sheets as of ~~December 31, 2004~~June 30, 2005 (unaudited) and March 31, ~~2004~~2005	1 - 2
	b)Condensed Consolidated ~~Statement~~Statements of Operations for the Quarters ended June 30, 2005 and ~~Nine months ended December 31,~~ 2004 ~~and 2003~~ (unaudited)	23
	c)Condensed Consolidated Statements of Comprehensive Income for the Quarters ended June 30, 2005 and ~~Nine months ended December 31,~~ 2004 ~~and 2003~~ (unaudited)	34
	d)Condensed Consolidated Statements of Cash Flows for the ~~Nine months~~Quarters ended ~~December 31,~~June 30, 2005 and 2004 ~~and 2003~~ (unaudited)	45 - 6
	e)Notes to Condensed Consolidated Financial Statements	57
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3229
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5743
Item 4.	Controls and Procedures	5743

	PART II OTHER INFORMATION
Item 1.	Legal Proceedings	6045
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6045
Item 3.	Defaults Upon Senior Securities	6045
Item 4.	Submission of Matters to a Vote of Security Holders	6045
Item 5.	Other Information	6045
Item 6.	Exhibits	6145

PART I FINANCIAL INFORMATION

ITEM 1.Financial Statements

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31,

March 31,

2004

2004

(Unaudited)
(In thousands)
ASSETS

Cash and cash equivalents $ 80,226 $ 81,557
Trade receivables, net 243,706 268,386
Notes and mortgage receivables, net 5,647 4,537
Inventories, net 53,831 52,802
Prepaid expenses 23,350 13,172
Investments, fixed maturities 672,007 709,353
Investments, other 333,968 347,537
Deferred policy acquisition costs, net 64,872 76,939
Other assets 87,640 65,071
Related party assets 318,373 304,446
$ 1,883,620 $ 1,923,800
Property, plant and equipment, at cost:
Land 151,487 158,594
Buildings and improvements 685,440 874,985
Furniture and equipment 285,776 293,115
Rental trailers and other rental equipment 175,116 159,586
Rental trucks 1,278,072 1,219,002
SAC Holdings II - property, plant and equipment 78,679 78,363
2,654,570 2,783,645
Less: Accumulated depreciation (1,355,405 ) (1,331,840 )
Property, plant and equipment, net 1,299,165 1,451,805
Total assets $ 3,182,785 $ 3,375,605
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses $ 216,041 $ 244,570
Capital leases - 99,609
AMERCO's notes and loans payable 696,048 862,697
SAC Holdings' notes and loans payable, non-recourse to AMERCO 77,790 78,637
Policy benefits and losses, claims and loss expenses payable 817,158 813,738
Liabilities from investment contracts 516,273 574,745
Other policyholders' funds and liabilities 24,402 28,732
Deferred income 46,433 51,383
Deferred income taxes 106,649 63,800
Related party liabilities 70,000 53,848
Total liabilities $ 2,570,794 $ 2,871,759
Commitments and contingent liabilities (Notes 5 and 9)
Stockholders' equity:
Serial preferred stock, with or without par value:
Series A preferred stock, with no par value $ - $ -
Series B preferred stock, with no par value - -
Serial common stock, with or without par value:
Series A common stock of $0.25 par value 929 1,416
Common stock of $0.25 par value 9,568 9,081
Additional paid in-capital 350,344 349,732
Accumulated other comprehensive loss (24,354 ) (21,446 )
Retained earnings 704,482 595,181
Cost of common shares in treasury, net (418,092 ) (418,092 )
Unearned employee stockownership plan shares (10,886 ) (12,026 )
Total stockholders' equity 611,991 503,846
Total liabilities and stockholders' equity $ 3,182,785 $ 3,375,605

	June 30,			March 31,
	2005			2005
	(Unaudited)
	(In thousands)
ASSETS
Cash and cash equivalents	$	229,498		$	55,955
Trade receivables, net		236,287			236,817
Notes and mortgage receivables, net		2,495			1,965
Inventories, net		65,904			63,658
Prepaid expenses		20,690			19,874
Investments, fixed maturities		643,638			635,178
Investments, other		302,736			345,207
Deferred policy acquisition costs, net		52,704			52,543
Other assets		117,162			85,291
Related party assets		266,452			252,666
		1,937,566			1,749,154
Property, plant and equipment, at cost:
Land		152,129			151,145
Buildings and improvements		686,744			686,225
Furniture and equipment		267,809			265,216
Rental trailers and other rental equipment		202,385			199,461
Rental trucks		1,270,440			1,252,018
SAC Holding II Corporation - property, plant and equipment		77,700			77,594
		2,657,207			2,631,659
Less: Accumulated depreciation		(1,276,685	)		(1,277,191	)
Total property, plant and equipment		1,380,522			1,354,468
Total assets	$	3,318,088		$	3,103,622

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

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED ~~STATEMENT OF OPERATIONS~~BALANCE SHEETS (CONTINUED)

	June 30,			March 31,
	2005			2005
	(Unaudited)
	(In thousands, except share and per share amounts)
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	$	232,489		$	206,763
AMERCO's notes and loans payable		953,922			780,008
SAC Holding II Corporation notes and loans payable, non-recourse to AMERCO		77,185			77,474
Policy benefits and losses, claims and loss expenses payable		808,249			805,121
Liabilities from investment contracts		491,473			503,838
Other policyholders' funds and liabilities		15,873			29,642
Deferred income		42,464			38,743
Deferred income taxes		88,483			78,124
Related party liabilities		10,771			11,070
Total liabilities		2,720,909			2,530,783

Commitments and contingencies (notes 3, 6 and 7)


Stockholders' equity:
Series preferred stock, with or without par value, 50,000,000 shares authorized:
Series A preferred stock, with no par value, 6,100,000 shares authorized; 6,100,000 shares issued and outstanding as of June 30, 2005 and March 31, 2005		-			-
Series B preferred stock, with no par value, 100,000 shares authorized; none issued and outstanding as of June 30 and March 31, 2005		-			-
Series common stock, with or without par value, 150,000,000 shares authorized:
Series A common stock of $0.25 par value, 10,000,000 shares authorized; 3,716,181 shares issued as of June 30, 2005 and March 31, 2005		929			929
Common stock of $0.25 par value, 150,000,000 shares authorized; 38,269,518 issued as of June 30, 2005 and March 31, 2005		9,568			9,568
Additional paid-in-capital		350,344			350,344
Accumulated other comprehensive loss		(38,580	)		(30,661	)
Retained earnings		703,463			671,642
Cost of common shares in treasury, net (20,701,096 shares as of June 30, 2005 and March 31, 2005)		(418,092	)		(418,092	)
Unearned employee stock ownership plan shares		(10,453	)		(10,891	)
Total stockholders' equity		597,179			572,839
Total liabilities and stockholders' equity	$	3,318,088		$	3,103,622

Quarter Ended December 31,

Nine Months Ended December 31,

2004

2003

2004

2003

(Unaudited)
(In thousands except share and per share amounts)
Revenues:

Rental revenue $ 365,131 $ 386,456 $ 1,262,335 $ 1,304,470
Net sales 42,620 47,212 161,683 182,048
Premiums 34,634 56,088 115,516 188,024
Net investment and interest income 18,142 12,827 50,252 35,614
Total revenues 460,527 502,583 1,589,786 1,710,156

Costs and expenses:

Operating expenses 287,962 307,378 848,621 907,695
Restructuring expenses - 7,613 - 12,027
Commission expenses 39,243 31,136 138,064 116,132
Cost of sales 21,361 23,908 77,617 87,023
Benefits and losses 38,603 50,956 104,194 169,801
Amortization of deferred policy acquisition costs 6,279 11,027 24,015 28,886
Lease expense 38,506 33,202 115,389 101,716
Depreciation, net 28,282 38,393 86,214 113,356
Total costs and expenses 460,236 503,613 1,394,114 1,536,636

Earnings from operations 291 (1,030 ) 195,672 173,520
Interest expense 16,931 31,168 53,995 92,839
Litigation settlement received 51,341 - 51,341 -
Pretax earnings 34,701 (32,198 ) 193,018 80,681
Income tax benefit (expense) (13,155 ) 10,531 (73,994 ) (30,587 )
Net earnings (loss) 21,546 (21,667 ) 119,024 50,094
Less: Preferred stock dividends (3,241 ) (3,241 ) (9,723 ) (9,723 )
Earnings (loss) available to common shareholders $ 18,305 $ (24,908 ) $ 109,301 $ 40,371

Basic and diluted earnings (loss) per common share $ 0.88 $ (1.20 ) $ 5.25 $ 1.95
Weighted average common shares outstanding 20,813,805 20,757,297 20,801,112 20,744,692

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

AMERCO AND CONSOLIDATED ENTITIES

~~See Footnote 11 for a complete discussion of “Related Party Transactions”.~~CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

		Quarter Ended June 30,
		2005			2004
		(Unaudited)
	(In thousands, except share and per share amounts)
Revenues:
Self-moving equipment rentals		$	401,260		$	389,742
Self-storage revenues			28,768			30,575
Self-moving and self-storage products and service sales			66,563			61,364
Property management fees			4,440			2,982
Life insurance premiums			29,589			33,259
Property and casualty insurance premiums			4,824			9,802
Net investment and interest income			13,714			17,576
Other revenue			10,300			7,645
Total revenues			559,458			552,945
Costs and expenses:
Operating expenses			266,792			271,911
Commission expenses			48,018			46,913
Cost of sales			31,044			27,740
Benefits and losses			27,314			36,671
Amortization of deferred policy acquisition costs			6,198			9,958
Lease expense			33,295			40,535
Depreciation, net			34,237			28,029
Total costs and expenses			446,898			461,757

Earnings from operations			112,560			91,188
Interest expense			19,636			19,004
Fees on early extinguishment of debt			35,627			-
Pretax earnings			57,297			72,184
Income tax expense			(22,235	)		(27,765	)
Net earnings			35,062			44,419
Less: Preferred stock dividends			(3,241	)		(3,241	)
Earnings available to common shareholders		$	31,821		$	41,178
Basic and diluted earnings per common share		$	1.53		$	1.98
Weighted average common shares outstanding:
Basic and diluted			20,836,458			20,788,074

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

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Quarter Ended June 30,
	2005			2004
	(Unaudited)
	(In thousands)
Comprehensive income:
Net earnings	$	35,062		$	44,419
Other comprehensive income(loss), net of tax:
Foreign currency translation		(1,970	)		(2,227	)
Fair market value of cash flow hedges		(409	)		-
Unrealized gain (loss) on investments		(5,540	)		2,943
Total comprehensive income	$	27,143		$	45,135

Quarter Ended
December 31,

Nine Months Ended
December 31,

2004

2003

2004

2003

(Unaudited) (Unaudited)
(In thousands) (In thousands)
Comprehensive income:

Net earnings (loss) $ 21,546 $ (21,667 ) $ 119,024 $ 50,094
Changes in other comprehensive income, net of taxes:
Foreign currency translation 2,275 9,700 2,058 11,074
Unrealized gain/(loss) on investments 5,755 (3,373 ) (4,098 ) 22,488
Fair market value of interest rate hedge 800 - (868 ) -

Total comprehensive income (loss) $ 30,376 $ (15,340 ) $ 116,116 $ 83,656

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

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Quarter Ended June 30,
	2005			2004
	(Unaudited)
	(In thousands)
Cash flow from operating activities:
Net earnings	$	35,062		$	44,419
Depreciation		30,925			28,382
Amortization of deferred policy acquisition costs		6,677			10,428
Provision for losses on accounts receivable		(601	)		-
Net (gain) loss on sale of real and personal property		3,312			(353	)
Net (gain) loss on sale of investments		(1,453	)		(174	)
Deferred income taxes		12,788			29,644
Net change in other operating assets and liabilities
Trade receivables		(2,287	)		19,412
Inventories		(2,246	)		(1,217	)
Prepaid expenses		(816	)		(8,703	)
Capitalization of deferred policy acquisition costs		(2,508	)		(3,603	)
Other assets		(29,461	)		(37,032	)
Related party assets		(13,813	)		(12,235	)
Accounts payable and accrued expenses		24,139			23,116
Policy benefits and losses, claims and loss expenses payable		2,907			(32,059	)
Other policyholder's funds and liabilities		(13,528	)		1,167
Deferred income		3,721			1,332
Related party liabilities		(1,119	)		72
Net cash provided by operating activities		51,699			62,596

Nine Months Ended December 31,

2004

2003

(Unaudited)
(In thousands)
Cash flow from operating activities:

Earnings available to common shareholders $ 109,301 $ 40,371
Depreciation 85,030 107,485
Amortization of deferred policy acquisition costs 25,962 28,328
Provision for losses on accounts receivable (149 ) 686
Net loss on sale of real and personal property 1,184 5,871
(Gain) on sale of investments (3,896 ) (3,403 )
Reductions in policy liabilities and accruals (2,282 ) (35,583 )
Capitalizations of deferred policy acquisition costs (8,881 ) (16,040 )
Net reduction in other operating assets and liabilities 17,479 21,419
Net cash provided by operating activities 223,748 149,134
Cash flows from investing activities:

Purchases of investments:
Property, plant and equipment (172,491 ) (147,344 )
Fixed maturities (84,272 ) (50,662 )
Other asset investment - (78,142 )
Common Stock (6,765 ) -
Mortgage loans (750 ) -
Proceeds from sale(purchase) of investments:
Property, plant and equipment 227,811 32,537
Fixed maturities 113,844 171,405
Preferred stock 3,811 -
Real estate 5,269 -
Mortgage loans 2,819 203
Changes in other investments 33,759 28,534
Net cash provided by (used in) investing activities 123,035 (43,469 )
Cash flows from financing activities:

Net change in short-term borrowings - 5,649
Borrowings from Credit Facilities 36,859 50,000
Leveraged Employee Stock Ownership Plan:
Purchase of shares - -
Repayments from loan 1,752 455
Principal Repayments on Credit Facilities (202,264 ) (55,716 )
Pay off of capital leases (99,609 ) -
Dividends paid (25,297 ) -
Investment contract deposits 19,587 43,020
Investment contract withdrawals (79,142 ) (79,041 )
Net cash used in financing activities (348,114 ) (35,633 )
Increase (decrease) in cash equivalents (1,331 ) 70,032
Cash and cash equivalents at the beginning of period 81,557 66,834
Cash and cash equivalents at the end of period $ 80,226 $ 136,866

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

AMERCO AND CONSOLIDATED ENTITIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

	Quarter Ended June 30,
	2005			2004
	(Unaudited)
	(In thousands)

Cash flows from investing activities:
Purchases of:
Property, plant and equipment	$	(75,437	)	$	(62,304	)
Short term investments		(55,390	)		(58,348	)
Fixed maturities investments		(84,217	)		(36,206	)
Mortgage loans		(1,250	)		-
Proceeds from sale of:
Property, plant and equipment		15,145			184,219
Short term investments		94,728			56,777
Fixed maturities investments		60,793			39,093
Equity securities		5,759			37
Preferred stock		417			1,497
Other asset investments, net		872			17,219
Real estate		693			1,880
Mortgage loans		3,034			1,169
Notes and mortgage receivables		71			31
Net cash provided (used) by investing activities		(34,782	)		145,064
Cash flows from financing activities:
Borrowings from credit facilities		1,034,188			14,280
Principal repayments on credit facilities		(860,563	)		(115,417	)
Leveraged Employee Stock Ownership Plan - repayments from loan		438			428
Payoff of capital leases		-			(99,607	)
Preferred stock dividends paid		(3,241	)		(6,482	)
Investment contract deposits		5,670			6,923
Investment contract withdrawals		(17,896	)		(33,943	)
Net cash provided (used) by financing activities		158,596			(233,818	)
Effect of exchange rate on cash		(1,970	)		(2,228	)
Increase (decrease) in cash equivalents		173,543			(28,386	)
Cash and cash equivalents at the beginning of period		55,955			81,557
Cash and cash equivalents at the end of period	$	229,498		$	53,171

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

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~December 31,~~June 30, 2005, June 30, 2004 (Unaudited), and March 31, ~~2004, and December 31, 2003 (Unaudited)~~2005

1. Basis of Presentation

The ~~third~~first fiscal quarter for AMERCO ends the 3130^stth of ~~December~~June for each year that is referenced. Our insurance company subsidiaries have a ~~third~~first quarter that ends on the 3031^thst of ~~September~~March for each year that is referenced. They have been consolidated on that basis. Consequently, all references to our insurance subsidiaries’ years ~~2004~~2005 and ~~2003~~2004 correspond to the Company’s fiscal years 2006 and 2005, ~~and 2004.~~respectively.

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

2.~~Principals of Consolidation and Organization~~

~~Principles of Consolidation~~

The consolidated financial statements for the ~~third~~first quarter ~~and the first nine months~~ of fiscal ~~year~~2006 and fiscal 2005, and the balance sheet as of March 31, ~~2004~~2005 include the accounts of AMERCO, its wholly owned subsidiaries and SAC Holding II Corporation and its subsidiaries. The balance sheet and the statements of operations, comprehensive income, and cash flows for the third quarter and the first nine months of fiscal year 2004 include all of the abovementioned entities plus SAC Holding Corporation and its subsidiaries.

SAC Holding Corporation and SAC Holding II Corporation and their subsidiaries (the “SAC entities”) were considered special purpose entities. During the first three quarters of fiscal year 2004, the SAC entities were consolidated based on the provisions of Emerging Issues Task Force (EITF) Issue No. 90-15. During the fourth quarter of fiscal year 2004, the Company applied FASB Interpretation No. 46(R) to its interest in the SAC entities and determined that SAC Holding Corporation should no longer be consolidated with the Company’s financial statements. Accordingly, during the fourth quarter of fiscal year 2004 the Company deconsolidated those entities. The deconsolidation was accounted for as a distribution of the Company’s interests to the SAC entities. Because of the Company’s continui ng involvement with SAC Holding Corporation and its subsidiaries, the distributions do not qualify as discontinued operations as defined by SFAS No. 144.

The condensed consolidated balance sheet as of ~~December 31, 2004~~June 30, 2005 and the related condensed consolidated statements of operations, comprehensive income, and cash ~~flow~~flows for the ~~quarter~~first quarters of fiscal 2006 and ~~the first nine months ended December 31, 2004~~2005 are unaudited.

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

Inter-company accounts and transactions have been eliminated. ~~Certain reclassifications have been made to the 2004 financial statements to conform to the 2005 presentation.~~

Description of Legal Entities

AMERCO, a Nevada corporation (“AMERCO”), is the holding company for:

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

Amerco Real Estate Company (“Real Estate”),

Republic Western Insurance Company (“RepWest”)

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

Oxford Life Insurance Company (“Oxford”)

North American Insurance Company (“NAI”) and

Christian Fidelity Life Insurance Company (“CFLIC”).

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

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - ~~Continued~~C

ontinued

Description of Operating Segments

AMERCO has ~~three~~four reportable ~~segments and five identifiable~~ segments. ~~The three reportable segments~~They are Moving and ~~Self-Storage,~~Storage Operations, Property and Casualty Insurance, Life Insurance and ~~Life Insurance. The five identifiable segments are~~SAC Holding II.

Moving and Storage operations include AMERCO, U-Haul International, Inc and Amerco Real Estate ~~Republic Western Insurance,~~Company and ~~Oxford Life Insurance.U-Haul moving and storage, Real Estate, and SAC moving and storage, are listed under Moving and Self-Storage, since they meet the aggregation criteria of FASB 131.~~

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

~~Real Estate owns approximately 90 percent of the Company’s real estate assets, including U-Haul Centers~~Property and ~~Storage locations. The remaining real estate assets of the Company are owned by other subsidiaries. Real Estate is responsible for overseeing major property repairs, dispositions~~Casualty Insurance includes RepWest and ~~managing the environmental risks of the properties.~~

SAC moving and self-storage operations consist of the rental of self-storage spaces and sales of moving supplies, trailer hitches and propane. In addition, SAC functions as an independent moving equipment rental dealer and earns commissions from the rental of U-Haul trucks and trailers. Operations are conducted under the registered trade name U-Haul® throughout the United States and Canada.

~~Republic Western Insurance Company (RepWest)~~its wholly-owned subsidiary. RepWest provides loss adjusting and claims handling forU-Haul through regional offices across North America. RepWest also ~~provides~~underwrites components of theSafemove, Safetowand Safestorprotection packages toU-Haul customers.

~~Oxford~~ Life Insurance ~~Company (Oxford)~~includes Oxford and its wholly-owned subsidiaries. Oxford originates and reinsures annuities; credit life and disability; ~~single premium whole life,~~ordinary life; group life and disability coverage; and Medicare supplement insurance. Oxford also administers the self-insured employee health and dental plans for the Company.

~~3. Accounting Policies~~SAC Holding Corporation and its subsidiaries, and SAC Holding II Corporation and its subsidiaries, collectively referred to as SAC Holdings, own self-storage properties that are managed by U-Haul under property management agreements and acts as independent U-Haul rental equipment dealers. AMERCO has contractual interests in certain SAC Holdings properties entitling AMERCO to potential future income based on the financial performance of these properties. With respect to SAC Holding II Corporation, AMERCO is considered the primary beneficiary of these contractual interests. Consequently, we include the results of SAC Holding II Corporation in the consolidated financial statements of AMERCO, as required by FIN 46(R).

~~Use of Estimates~~

The preparation of financial statements in conformity with the accounting principles generally accepted in the U.S. requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates that require management’s most difficult and subjective judgments include the principals of consolidation, the recoverability of property, plant and equipment; the adequacy of insurance reserves; and the valuation of investments. The future results actually experienced by the Company may differ from management’s estimates.

~~Cash and Cash Equivalents~~

~~The Company considers cash equivalents to be highly liquid debt securities with insignificant interest rate risk with original maturities from the date of purchase of three months or less.~~

~~Investments~~

~~Fixed Maturities.~~Fixed maturity investments consist of either marketable debt or redeemable preferred stocks. As of the balance sheet date, these investments are either intended to be held to maturity or are considered available-for-sale.

~~Held-to-Maturity.~~~~Investments that are intended to be held-to-maturity are recorded at cost, as adjusted for the amortization of premiums or the accretion of discounts.~~

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued~~

~~Available-for-Sale.~~~~Investments that are considered available-for-sale are reported at fair value, with unrealized gains or losses, net of tax, recorded in~~stockholders’ equity. Fair value for these investments is based on quoted market prices, dealer quotes or discounted cash flows. The cost of investments sold is based on the specific identification method. Realized gains or losses on the sale or exchange of investments and declines in value judged to be other than temporary are recorded as revenues. Investments a re judged to be impaired if the fair value is less than cost continuously for nine months, absent compelling evidence to the contrary.

~~Mortgage Loans and Notes on Real Estate.~~~~Mortgage loans and notes on real estate are reported at their unpaid balance, net of any allowance for possible losses and any unamortized premium or discount.~~

~~Recognition of Investment Income.~~Interest income from bonds and mortgage notes is recognized when it becomes 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. Unrealized gains and losses are determined as of each balance sheet date.

~~Fair Values~~

Fair values of cash equivalents approximate cost due to the short period of time to maturity. Fair values of short-term investments, investments available-for-sale, long-term investments, mortgage loans and notes on real estate, swaps and forward currency contracts are based on quoted market prices, dealer quotes or discounted cash flows. Fair values of trade receivables approximate their recorded value.

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

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

Other investments, including short-term investments, are substantially current or bear reasonable interest rates. As a result, the carrying values of these financial instruments approximate fair value. The carrying value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities and approximates fair market value due to its recent issuance.

~~Derivative Financial Instruments~~

The Company’s primary objective for holding derivative financial instruments is to manage currency and interest rate risk. The Company’s derivative instruments are recorded at fair value under SFAS No. 133 and are included in prepaid expenses.

The Company used derivative financial instruments to reduce its exposure to interest rate volatility. During May 2004, the Company entered into two (2) separate interest rate cap agreements on its $350 million amortizing term loan with notional value of $200 million for a two-year term and $50 million for a three-year term. These agreements cap the LIBOR component on the $250 million notional value at 3.0% throughout the life of the cap. At December 31, 2004, the Company had $347.4 million of variable rate debt.

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued~~

~~Inventories, net~~

Inventories consist primarily of truck and trailer parts and accessories used to repair rental equipment and products purchased directly for resale. Inventories are valued at the lower of cost or market. Inventory cost is primarily determined using the last-in, first-out method. Inventories valued on the LIFO basis were approximately~~90%~~ ~~of total inventories as of December 31, 2004 and 93% of total inventories as of March 31, 2004. Inventories would have been $3.2~~million higher at both December 31, 2004 and March 31 2004, if the Company valued inventories using the first-in, first-out method. Inventories are stated net of reserves for obsolescence of $2.5 million at both December 31, 2004 and March 31, 2004.

~~Property, Plant and Equipment~~

Property, plant and equipment is stated at cost. Interest cost incurred during the initial construction of buildings and rental equipment is considered part of cost. Depreciation is computed for financial reporting purposes principally using the straight-line method over the following estimated useful lives: rental equipment 2-20 years, buildings and non-rental equipment 3-55 years. Major overhauls to rental equipment are capitalized and are amortized over the estimated period benefited. Routine maintenance costs are charged to operating expense as they are incurred. Gains and losses on dispositions of property, plant and equipment are netted against depreciation expense when realized. Depreciation is recognized in amounts expected to result in the recovery of estimated residual values upon disposal, i.e., no g ains or losses. During the first quarter of fiscal year 2005, the Company lowered its estimates for residual values on rental trucks purchased off leases from 25% of the original cost to 20%. In determining the depreciation rate, historical disposal experience, holding periods and trends in the market for vehicles are reviewed. Since this change in estimated residual values will be applied prospectively we do not anticipate any significant increases in depreciation expense from this change for the current fiscal year.

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

The carrying value of surplus real estate, which is lower than market value, at the balance sheet date was $10.1 million for December 31, 2004 and $10.1 million for March 31, 2004, respectively, and is included with investments, other.

~~Receivables~~

Accounts receivable include trade accounts from moving and self storage customers and dealers, insurance premiums and agent balances due, net of commissions payable and amounts due from ceding re-insurers, less management’s estimate of uncollectible accounts.

~~Notes and mortgage receivables include accrued interest and are reduced by discounts and amounts considered by management to be uncollectible.~~

~~Policy Benefits and Losses, Claims and Loss Expenses Payable~~

Liabilities for annuity contracts consist of contract account balances that accrue to the benefit of the policyholders, excluding surrender values. Liabilities for health, disability and other policies represents estimates of payments to be made on insurance claims for reported losses and estimates of losses incurred, but not yet reported.

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued~~

Liabilities for reported and unreported losses are based on RepWest’s historical experience and industry averages. The liability for unpaid loss adjustment expenses is based on historical ratios of loss adjustment expenses paid to losses paid. Amounts recoverable from re-insurers on unpaid losses are estimated in a manner consistent with the claim liability associated with the reinsured policy. Adjustments to the liability for unpaid losses and loss expenses, as well as amounts recoverable from re-insurers on unpaid losses, are charged or credited to expense in the periods in which they are made.

~~Revenue Recognition~~

Rental revenue is recognized for the period that trucks and moving equipment are rented. Storage space revenue is recognized based on the numbers of storage contract days earned. Product sales are recognized at the time that title passes and the customer accepts delivery. Insurance premiums are recognized over the policy periods. Interest and investment income are recognized as earned.

~~Advertising~~

Advertising costs are expensed as incurred. Advertising expense was $9.7 million in the third quarter of fiscal year 2005 and $10.0 million in the third quarter of fiscal year 2004. Advertising expense was $24.7 million for the first nine months of fiscal year 2005 and $27.4 million for the first nine months of fiscal year 2004

~~Deferred Policy Acquisition Costs~~

Commissions and other costs which fluctuate with, and are primarily related to, the production of future insurance premiums, are deferred. For Oxford, these costs are amortized in relation to revenue such that costs are realized as a constant percentage of revenue. For RepWest, these costs are amortized over the related contract period which generally does not exceed one year.

~~Environmental Costs~~

Liabilities are recorded when environmental assessments and remedial efforts, if applicable, are probable and the costs can be reasonably estimated. The amount of the liability is based on management’s best estimate of undiscounted future costs. Certain recoverable environmental costs related to the removal of underground storage tanks or related contamination are capitalized and amortized over the estimated useful lives of the properties. These costs improve the safety or efficiency of the property or are incurred in preparing the property for sale.

~~Income Taxes~~

AMERCO files a consolidated tax return with all of its legal subsidiaries, except for Christian Fidelity Insurance Company, which files on a stand alone basis. SAC Holdings and its legal subsidiaries file a consolidated return, and their return is not consolidated with AMERCO. In accordance with SFAS No. 109, the provision for income taxes reflects deferred income taxes resulting primarily from changes in temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements.

~~Comprehensive Income/(Loss)~~

Comprehensive income/(loss) consists of net income, foreign currency translation adjustments, unrealized gains and losses on investments and fair market values of interest rate hedges, net of the related tax effects.

4.2. Earnings per Share

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

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued~~

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

Quarter Ended December 31,

2004

2003

(Unaudited)
Basic and diluted earnings per common share $ 0.88 $ (1.20 )
Weighted average common shares outstanding
Basic and diluted : 20,813,805 20,757,297

Nine Months Ended December 31,

2004

2003

(Unaudited)
Basic and diluted earnings per common share $ 5.25 $ 1.95
Weighted average common shares outstanding
Basic and diluted : 20,801,112 20,744,692

	Quarter ended June 30,
	2005		2004
	(Unaudited)
Basic and diluted earnings per common share	$	1.53	$	1.98
Weighted average common share outstanding:
Basic and diluted		20,836,458		20,788,074

The weighted average common shares outstanding listed above exclude post-1992 shares of the employee stock ownership plan that have not been committed to be released as of ~~December 31,~~June 30, 2005 and June 30, 2004, ~~and December 31, 2003,~~ respectively.

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

5.3. Borrowings

Long-Term Debt

~~Long-term~~On June 8, 2005, the Company repaid all of its outstanding debt ~~consisted of the following:~~including related accrued and unpaid interest and early termination fees.

December 31,

March 31,

2004

2004

(Unaudited)
(In thousands)
Revolving credit facility, senior secured first lien $ 27 $ 164,051
Senior amortizing notes, secured, first lien, due 2009 347,375 350,000
Senior notes, secured second lien, 9.0% interest rate, due 2009 200,000 200,000
Senior subordinated notes, secured, 12.0% interest rate, due 2011 148,646 148,646
Total AMERCO notes and loans payable $ 696,048 $ 862,697

~~First Lien Senior Secured Notes~~

The Company has a First Lien Senior Secured credit facility, due 2009 in the amount of $550 million, with a banking syndicate led and arranged by Wells Fargo Foothill, a part of Wells Fargo & Company (the “Senior Secured Facility”). These senior notes consist of two components, a $200 million revolving credit facility (including a $50 million letter of credit sub-facility) and a $350 million amortizing term loan.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - ~~Continued~~Continued

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

Long-term debt at June 30, 2005 and March 31, 2005 was as follows:

	June 30,		March 31,
	2005		2005
	(Unaudited)
	(In thousands)
U-Haul Co. of Canada Mortgage Securities 5.75%, due 2015	$	8,922	$	-
Senior mortgages, secured, 5.7%, due 2015		240,000		-
Senior mortgages, secured, 5.5%, due 2015		240,000		-
Real estate backed loans, due 2010		465,000		-
Revolving credit facility, senior secured first lien		-		84,862
Senior amortizing notes, secured, first lien, due 2009		-		346,500
Senior notes, secured second lien, 9.0% interest rate, due 2009		-		200,000
Senior subordinated notes, secured, 12.0% interest rate, due 2011		-		148,646
Total AMERCO notes and loans payable	$	953,922	$	780,008

Senior Mortgages

Various subsidiaries of Amerco Real Estate Company and U-Haul International, Inc. are borrowers under the Senior Mortgages. The Lenders for the Senior Mortgages are Merrill Lynch Mortgage Lending, Inc. and Morgan Stanley Mortgage Capital Inc. The Senior Mortgages are in the aggregate amount of $480.0 million and are due 2015.

The ~~$350 million amortizing term loan requires~~Senior Mortgages require average monthly principal and interest payments of ~~$291,667 and periodic interest payments,~~$5.1 million with the unpaid loan balance and accrued and unpaid interest due onat maturity, ~~in 2009.~~ which is July 2015. The Senior Mortgages are secured by certain properties owned by the borrowers.

The interest ~~rate~~rates, per the provisions of the ~~term loan agreement is defined as~~Senior Mortgages, are 5.7% per annum for the ~~3-month London Inter Bank Offer Rate (“LIBOR”), plus 4.0%,~~Merrill Lynch Mortgage Lending Agreement and 5.5% per annum for the sum of which at December 31, 2004 was 5.84%. Advances under the revolving credit facility are based on a borrowing base formula which is based on a percentage of the value of our eligible real estate. At December 31, 2004, $200.0 million was available to borrow. Morgan Stanley Mortgage Capital Agreement.

The ~~interest rate per the~~default provisions of the ~~revolving credit facility agreements~~Senior Mortgages include non-payment of principal or interest and other standard covenants. There are defined as the prime rate (“Prime”) plus 1.5%, the sum of which at December 31, 2004 was 6.25% or LIBOR plus 4.0%. The Senior Secured Facility is sec ured by a first priority position in substantially alllimited restrictions regarding our use of the ~~assets of AMERCO~~funds. We are in compliance with the covenants.

Real Estate Backed Loan

Amerco Real Estate Company and its subsidiaries, ~~except for our notes receivable from SAC Holdings, certain real estate held for sale,~~and U-Haul Company of Florida are borrowers under a Real Estate Backed Loan. The Lender is Merrill Lynch Commercial Finance Corporation. The Real Estate Backed Loan is in the ~~capital stock~~amount of ~~our insurance subsidiaries, real property previously mortgaged to Oxford~~$465.0 million and ~~vehicles subject to certain lease financing arrangements.~~

~~9.0% Second Lien Senior Secured Notes~~is due June 10, 2010. U-Haul International, Inc. is a Guarantor of this loan.

The ~~Company issued~~Real Estate Backed Loan requires monthly principal and ~~has outstanding $200 million aggregate principal amount of 9.0% Second Lien Senior Secured Notes~~interest payments, with the unpaid loan balance and accrued and unpaid interest due ~~2009. These senior notes are~~at maturity. We have the right to extend the maturity twice, for up to one year each time. The Real Estate Backed Loan is secured by ~~a second priority position in~~various properties owned by the ~~same collateral which secures our obligations under the First Lien Senior Secured Notes. No principal payments are due on the Second Lien Senior Secured Notes until maturity.~~borrowers.

~~Senior Subordinated Notes~~

The Company issued and has outstanding $148.6 million aggregate principal amount of 12.0% senior subordinated notes due 2011 (the “Senior Subordinated Notes”). No principal payments are due on the Senior Subordinated Notes until maturity. These senior notes, which are subordinated to all of the senior indebtedness of AMERCO (including the First Lien Senior Secured Notes and the Second Lien Senior Secured Notes, both due 2009), are secured by certain assets of AMERCO, including the capital stock of our life insurance subsidiary (Oxford Life Insurance Company), certain real estate held for sale and payments from notes receivable from SAC Holdings having an aggregate outstanding principal balance at December 31, 2004 of $203.8 million.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - ~~Continued~~Continued

~~Restrictive Covenants~~The interest rate is the applicable London Inter-Bank Offer Rate (“LIBOR”) plus the applicable margin. At June 30, 2005 the applicable LIBOR was 3.2% and the applicable margin was 2.7%, the sum of which was 5.9%. The applicable margin ranges from 2.0% to 2.8% and is based on the ratio of the excess of the average daily amount of loans divided by a fixed percentage of the appraised value of the properties collateralizing the loan, compared with the most recently reported 12 months of Combined Net Operating Income (“NOI”), as that term is defined in the Loan Agreement.

~~Under~~The default provisions of the ~~abovementioned loan agreements, we~~Real Estate Backed Loan include non-payment of principal or interest and other standard covenants. There are ~~required to comply with a number~~limited restrictions regarding our use of ~~affirmative and negative covenants. These covenants apply to~~ the ~~obligors, and provide that, among other things:~~

~~On a quarterly basis, the obligors cannot allow EBITDA minus capital expenditures (as defined) to fall below specified levels.~~

~~The obligors~~funds. We are ~~restricted in the amount of capital expenditures that can be made in any fiscal year.~~

~~The obligors' ability to incur additional indebtedness is restricted.~~

~~The obligors’ ability to create, incur, assume, or permit to exist any lien on or against any of the secured assets is restricted.~~

~~The obligors’ ability to convey, sell, lease, assign, transfer or otherwise dispose of any of the secured assets is restricted.~~

The obligors cannot enter into any merger, consolidation, reorganization, or recapitalization (subject to exceptions), and we cannot liquidate, wind up or dissolve any subsidiary that is a borrower under the abovementioned loan agreements, unless the assets of the dissolved entity are transferred to another subsidiary that is a borrower under the abovementioned loan agreements and certain other conditions are met.

~~The obligors’ ability to guarantee the obligations of our insurance subsidiaries or any third party is restricted.~~

The obligors’ ability to prepay, redeem, defease, purchase or otherwise acquire any of our indebtedness or any indebtedness of a subsidiary that is a borrower under the abovementioned loan agreements is restricted.

~~As of December 31, 2004 the Company was~~ in compliance with the ~~abovementioned~~ covenants.

~~Annual Maturities~~U-Haul Company of Canada Mortgage Securities

U-Haul Company of Canada is the borrower under a mortgage backed loan. The lender is Merrill Lynch and the loan is in the amount of $8.9 million ($11.4 million in Canadian currency). The loan was entered into on June 29, 2005 at a rate of 5.75%. It has a 25 year amortization with a maturity of July 1, 2015. We are in compliance with the covenants.

W.P. Carey Transactions

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

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

On April 30, 2004, the amended and restated leases were terminated and the properties underlying these leases were sold to UH Storage (DE) Limited Partnership, an affiliate of W. P. Carey. U-Haul entered into a ten year operating lease with W. P. Carey (UH Storage DE) for a portion of each property (the portion of the property that relates to U-Haul’s truck and trailer rental and moving supply sales businesses). The remainder of each property (the portion of the property that relates to self-storage) was leased by W. P. Carey (UH Storage DE) to Mercury Partners, LP (“Mercury”) pursuant to a 20 year lease. These events are referred to as the “W. P. Carey Transactions.” As a result of the W. P. Carey Transactions, we no longer have a capital lease related to these properties. The terms of the W. P. Carey Transactions provide for us to be reimbursed for capital improvements we previously made to the properties, subject to conditions, which we expect will occur over a period of approximately 18 months following the closing.

The ~~annual maturity~~sales price for these transactions was $298.4 million and cash proceeds were $298.9 million. The Company realized a gain on the transaction of ~~AMERCO Consolidated long-term debt as~~$2.7 million, which is being amortized over the life of ~~December 31, 2004 for~~ the ~~next five years and thereafter is as follows:~~

Fiscal Years Ending

(In thousands)

2005

2006

2007

2008

2009

Thereafter

Notes payable, secured $ 3,500 3,500 3,500 3,500 533,402 148,646

lease term.

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

U-Haul’s annual lease payments under the new lease are approximately $10.0 million per year, with CPI inflation adjustments beginning in the sixth year of the lease. The lease term is ten years, with a renewal option for an additional ten years. Upon closing of the W. P. Carey Transactions, we made a $5.0 million security deposit and an earn-out deposit of $22.9 million. We believe that U-Haul has met the requirements under the lease and the earn-out deposit should be refunded.

The property management agreement we entered into with Mercury provides that Mercury will pay U-Haul a management fee based on gross self-storage rental revenues generated by the properties. During the first quarter of fiscal 2006, U-Haul earned $0.4 million in management fees from Mercury.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - ~~Continued~~Continued

Annual Maturities of AMERCO Notes and Loans Payable

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

	Year Ending June 30,
	2006		2007		2008		2009		2010		Thereafter
	(Unaudited)
	(In thousands)
Notes payable, secured	$	38,118	$	39,316	$	39,866	$	40,450	$	115,649	$	680,523

SAC Holding II Corporation Notes and Loans Payable to Third Parties

SAC ~~Entities~~Holding II entities notes and loans payable consisted of the following:

December 31,

March 31,

2004

2004

(Unaudited)
(In thousands)
Notes payable, secured, bearing interest rates ranging from
7.87% to 9.00%, due 2027
$ 77,790 $ 78,637

	June 30,		March 31,
	2005		2005
	(Unaudited)
	(In thousands)
Notes payable, secured, 7.9% interest rate, due 2027	$	77,185	$	77,474

6.4. Interest on Borrowings

Interest expense was as follows:

Quarter Ended December 31,

2004

2003

(Unaudited)
(In thousands)
Interest expense $ 14,479 $ 19,572
Amortization of transaction costs 863 172
Interest expense resulting from SWAP/CAP agreements 24 -
Total AMERCO interest expense 15,366 19,744

SAC Holdings' interest expense 3,710 20,052
Less: Intercompany transactions 2,145 �� 8,628
Total SAC Holdings' interest expense 1,565 11,424
Consolidated interest expense $ 16,931 $ 31,168

Nine Months Ended December 31,

2004

2003

(Unaudited)
(In thousands)
Interest expense $ 45,821 $ 59,099
Amortization of transaction costs 2,458 547
Interest expense resulting from SWAP/CAP agreements 1,017 -
Default interest - 715
Total AMERCO interest expense 49,296 60,361

SAC Holdings' interest expense 10,941 61,273
Less: Intercompany transactions 6,242 28,795
Total SAC Holdings' interest expense 4,699 32,478
Consolidated interest expense $ 53,995 $ 92,839

	Quarter Ended June 30,
	2005			2004
	(unaudited)
	(In thousands)
Interest expense	$	17,842		$	16,609
Capitalized interest		(44	)		(45	)
Amortization of transaction costs		14,384			733
Interest expense resulting from interest rate caps		301			147
Fees on early extinguishment of debt		21,243			-
Total AMERCO interest expense		53,726			17,444
SAC Holding II interest expense		3,130			3,263
Less: Intercompany transactions		1,593			1,703
Total SAC Holding II interest expense		1,537			1,560
Total	$	55,263		$	19,004

Interest paid in cash by AMERCO (excluding any fees from the early extinguishment of debt) amounted to ~~$14.1~~$17.9 million and ~~$3.7~~$15.4 million for the ~~third~~first quarters of fiscal ~~year 2005~~2006 and fiscal ~~year 2004,~~2005, respectively.

~~Interest paid in cash by AMERCO amounted~~The costs associated with the early extinguishment of debt include $21.2 million of fees and $14.4 million of transaction cost amortization related to ~~$42.9 million and $25.0 million for~~ the ~~nine months ended December 31, 2004 and 2003, respectively.~~retired debt.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - ~~Continued~~Continued

Interest Rates

Interest rates and company borrowings were as follows:

Revolving Credit Activity

December 31,

March 31,

AMERCO

2004

2004

(Unaudited)
(In thousands, except interest rates)
Weighted average interest rate during the first nine months/year 5.69% 6.75%
Interest rate at the end of the third fiscal quarter/year 6.25% 5.50%
Maximum amount outstanding during the quarter/year
$
19,977

$
205,000

Average amount outstanding during the quarter/year
$
6,708

$
174,267

Facility fees
$
-

$
1,333

	Revolving Credit Activity
	Quarter Ended June 30,
	2005			2004
	(Unaudited)
	(In thousands, except interest rates)
Weighted average interest rate		6.64	%		5.37	%
Interest rate at the end of the quarter		N/A			5.33	%
Maximum amount outstanding	$	158,012		$	164,575
Average amount outstanding prior to the June 8, 2005 refinancing	$	124,186		$	115,728

On June 29, 2005 the Company entered into a new revolving credit facility with Merrill Lynch Commercial Finance Corporation. The facility has a $150 million maximum amount available with an interest rate of LIBOR plus 1.75%. As of June 30, 2005 the Company had not drawn on this revolving credit facility.

7.5. Comprehensive Income

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

December 31,

March 31,

2004

2004

(Unaudited)
(In thousands)
Accumulated foreign currency translation $ (32,856 ) $ (34,914 )
Accumulated unrealized gain or (loss) on investments 9,370 13,468
Accumulated FV of Interest Rate Hedge (868 ) -
$ (24,354 ) $ (21,446 )

	June 30,			March 31,
	2005			2005
	(unaudited)
	(In thousands)
Accumulated foreign currency translation	$	(35,314	)	$	(33,344	)
Accumulated unrealized gain (loss) on investments		(2,904	)		2,636
Accumulated fair market value of cash flow hedge		(362	)		47
	$	(38,580	)	$	(30,661	)

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

Foreign Currency Translation

Unrealized Gain/(Loss) on Investments

Fair Market Value of Interest Rate Hedge

Accumulated Other Comprehensive Income/(Loss)

Balance at March 31, 2004 $ (34,914 ) $ 13,468 $ - $ (21,446 )
Foreign currency translation 2,058 - - 2,058

Unrealized gain/(loss) on investments - (4,098 ) - (4,098 )
Fair market value of interest rate hedge - - (868 ) (868 )

Balance at December 31, 2004 $ (32,856 ) $ 9,370 $ (868 ) $ (24,354 )

	Foreign Currency Translation			Unrealized Gain(Loss) on Investments			Fair Market Value of Cash Flow Hedge			Accumulated Other Comprehensive Income
	(Unaudited)
	(In thousands)
Balance at March 31, 2005	$	(33,344	)	$	2,636		$	47		$	(30,661	)
Foreign currency translation - U-Haul		(1,970	)		-			-			(1,970	)
Change in fair value of cash flow hedge		-			-			(409	)		(409	)
Unrealized loss on investments		-			(5,540	)		-			(5,540	)
Balance at June 30, 2005	$	(35,314	)	$	(2,904	)	$	(362	)	$	(38,580	)

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - ~~Continued~~Continued

~~8. Reinsurance~~

During their normal course of business, our insurance subsidiaries assume and cede reinsurance on both a coinsurance and a risk premium basis. They also obtain reinsurance for that portion of risks exceeding their retention limits. The maximum amount of life insurance retained on any one life is $150,000.

Direct

Ceded to

Assumed

Net

Percentage of

Amount

Other

from Other

Amount

Amount

(a)

Companies

Companies

(a)

Assumed to Net

(Unaudited)
September 30, 2004 (In thousands)
Life insurance in force $ 1,312,260 397,497 1,859,445 2,774,208 67 %

Premiums earned:
Life $ 8,543 5,193 8,764 12,114 72 %
Accident and health 74,094 5,283 11,784 80,595 15 %
Annuity 1,782 - 2,044 3,826 53 %
Property and casualty 24,761 8,952 5,006 20,815 24 %
Total $ 109,180 19,428 27,598 117,350 24 %

Direct

Ceded to

Assumed

Net

Percentage of

Amount

Other

from Other

Amount

Amount

(a)

Companies

Companies

(a)

Assumed to Net

(Unaudited)
September 30, 2003 (In thousands)
Life insurance in force $ 1,427,015 485,592 2,092,977 3,034,400 69 %

Premiums earned:
Life $ 15,462 7,916 11,560 19,106 61 %
Accident and health 81,701 8,681 15,623 88,643 18 %
Annuity 1,278 - 1,812 3,090 59 %
Property and casualty 90,191 28,942 15,936 77,185 21 %
Total $ 188,632 45,539 44,931 188,024 24 %

~~(a) Balances are reported net of inter-segment transactions.~~
~~Premiums eliminated in consolidation were as follows:~~

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued~~

RepWest

Oxford

(Unaudited)
(In thousands)
Nine months ended September 30, 2004 $ - $ 1,105
Nine months ended September 30, 2003 $ 1,062 $ 2,013

9.6. Contingent Liabilities and Commitments

The Company leases a portion of its rental equipment and certain of its facilities under operating leases with terms that expire at various dates substantially through 2034. At ~~December 31, 2004,~~June 30, 2005, AMERCO has guaranteed ~~$154.0~~$157.7 million of residual values for these assets at the end of the respective lease terms. Certain leases contain renewal and fair market value purchase options as well as mileage and other restrictions. At the expiration of the lease, the Company has the option to renew the lease, purchase the asset for fair market value, or sell the asset to a third party on behalf of the lessor. AMERCO has been leasing equipment since 1987 and has experienced no material losses ~~relating~~related to these types of residual ~~value~~rate guarantees.

Lease commitments for leases having terms of more than one year as of ~~December 31, 2004,~~June 30, 2005, were as follows:

Property
Plant and
Equipment

Rental
Fleet

Total

(In thousands)
Year-ending:
2005 $ 11,718 113,181 124,899
2006 11,135 102,068 113,203
2007 10,979 64,167 75,146
2008 10,788 32,142 42,930
2009 10,382 17,751 28,133
Thereafter 46,057 7,972 54,029
Total $ 101,059 337,281 438,340

~~W. P. Carey Transaction~~

In 1999, AMERCO, U-Haul and Real Estate entered into financing agreements for the purchase and construction of self-storage facilities with the Bank of Montreal and Citibank (the "synthetic leases"). Title to the real property subject to these leases was held by non-affiliated entities. As of March 31, 2003, we had obligations outstanding of $254 million under these synthetic leases, of which $117 million represented properties qualifying as operating leases and $137 million represented properties qualifying as capital leases.

These leases were amended and restated on March 15, 2004. As a result, we paid down approximately $31 million of lease obligations and entered into leases with a three year term, with four one year renewal options. After such pay down, our lease obligation under the amended and restated synthetic leases was approximately $218.5 million. The amended and restated terms of the synthetic lease caused it to become a capital lease. Consequently, we capitalized these leased properties as an asset and reported the corresponding lease obligation as a liability at March 31, 2004.

	Property Plant and Equipment		Rental Equipment		Total
	(Unaudited)
			(in thousands)
Year-ended June 30,:
2006	$	12,154	$	78,331	$	90,485
2007		11,367		89,551		100,918
2008		11,235		56,326		67,561
2009		10,921		40,771		51,692
2010		10,515		32,222		42,737
Thereafter		45,544		27,529		73,073
Total	$	101,736	$	324,730	$	426,466

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued~~

On April 30, 2004, the amended and restated leases were terminated and the properties underlying these leases were sold to W.P. Carey. U-Haul entered into a ten year operating lease with W.P. Carey (UH Storage DE) for a portion of each property (the portion of the property that relates to U-Haul’s truck and trailer rental and moving supply sales businesses). The remainder of each property (the portion of the property that relates to self-storage) was leased from W.P. Carey (UH Storage DE) to Mercury Partners, LP ("Mercury") pursuant to a 20 year lease. These events are referred to as the "W.P. Carey Transaction." As a result of the W.P. Carey Transaction, we no longer have a capital lease related to these properties. The terms of the W.P. Carey Transaction provide for us to be reimbursed for capital i mprovements we previously made to these properties, subject to conditions, which we expect will occur over approximately the next 18 months.

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

U-Haul’s annual lease payments under the new lease are approximately $10 million per year, with CPI inflation adjustments beginning in the sixth year of the lease. The lease term is ten years, with a renewal option for an additional ten years. Upon closing of the W.P. Carey Transaction, we made a $5 million security deposit, which will be refunded to us at the end of the lease term. We also made a deposit as part of the W.P. Carey Transaction totaling approximately $23 million, which is to be refunded to us at the earlier of attainment by the properties of certain earn-out milestones, or the end of the lease term.

The property management agreement we entered into with Mercury provides that Mercury will pay U-Haul a fee equal to 4% of the gross self-storage rental revenues generated by the properties, plus a bonus of up to 6% of gross self-storage rental revenues based on specified performance levels. During fiscal year 2005, U-Haul earned $1.0 million in management fees from Mercury.

~~10.~~7. Contingencies

~~Kocher~~Shoen

On July 20, 2000, Charles Kocher (Kocher) filed suit in Wetzel County, West Virginia, Civil Action No. 00-C-51-K, entitled Charles Kocher v. Oxford Life Insurance Co. (Oxford) seeking compensatory and punitive damages for breach of contract, bad faith and unfair claims settlement practices arising from an alleged failure of Oxford to properly and timely pay a claim under a disability and dismemberment policy. On March 22, 2002, the jury returned a verdict of $5 million in compensatory damages and $34 million in punitive damages. On November 5, 2002, the trial court entered an Order affirming the $39 million jury verdict and denying Oxford’s motion for New Trial Or, in The Alternative, Remittitur. Oxford appealed the case to the West Virginia Supreme Court. On June 17, 2004 the West Virginia Supreme Court r eversed and vacated the punitive damages award and remanded the case for a new trial on punitive damages. On July 15, 2004 Oxford filed a petition for a re-hearing with the West Virginia Supreme Court on the matter of compensatory damages and on September 9, 2004 the West Virginia Supreme Court denied the petition. The Company has accrued for this potential loss. The new trial on punitive damages is set for April 8, 2005. The Company has notified its E & O carrier of the West Virginia Supreme Court’s ruling. The E&O carrier is disputing coverage.

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued~~

~~Shoen~~

~~On December~~ 24, 2002, Paul F. Shoen filed a derivative action in the ~~Third~~Second Judicial District Court of the State of Nevada, Washoe County, captioned Paul F. Shoen vs. SAC Holding Corporation et al., CV02-05602, seeking damages and equitable relief on behalf of AMERCO from SAC Holdings and certain current and former members of the AMERCO Board of Directors, including Edward J. Shoen, Mark V. Shoen and James P. Shoen as defendants. AMERCO is named a nominal defendant for purposes of the derivative action. The complaint alleges breach of fiduciary duty, self-dealing, usurpation of corporate opportunities, wrongful interference with prospective economic advantage and unjust enrichment and seeks the unwinding of sales of self-storage properties by subsidiaries of AMERCO to SAC Holdings ~~over the last several~~in prior years. ~~Th e~~The complaint seeks a declaration that such transfers are void as well as unspecified damages. On October 28, 2002, AMERCO, the Shoen directors, the non-Shoen directors and SAC Holdings filed Motions to Dismiss the complaint. In addition, on October 28, 2002, Ron Belec filed a derivative action in the ~~Third~~Second Judicial District Court of the State of Nevada, Washoe County, captioned Ron Belec vs. William E. Carty, et al., CV 02-06331 and on January 16, 2003, M.S. Management Company, Inc. filed a derivative action in the ~~Third~~Second Judicial District Court of the State of Nevada, Washoe County, captioned M.S. Management Company, Inc. vs. William E. Carty, et al., CV 03-00386. Two additional derivative suits were also filed against these parties. These additional suits are substantially similar to the Paul F. Shoen derivative action. The five suits assert virtually identical claims. In fact, three of the five plaintiffs are parties who are working closely together and chose to file the same claims multiple times. ~~The cour t consolidated all five complaints before dismissing them on May 28, 2003. Plaintiffs appealed and the appeal has been fully briefed before the Nevada Supreme Court.~~ These lawsuits ~~falsely~~ alleged that the AMERCO Board lacked independence. In reaching its decision to dismiss these claims, the court determined that the AMERCO Board of Directors had the requisite level of independence required in order to have these claims resolved by the Board. The court consolidated all five complaints before dismissing them on May 28, 2003. Plaintiffs filed a Notice of Appeal to the Nevada Supreme Court and the Court has set an oral argument for September 12, 2005.

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

Securities Litigation

AMERCO is a defendant in a consolidated putative class action lawsuit entitled “In Re AMERCO Securities Litigation”, United States District Court, Case No. CV-N-03-0050-ECR (RAM). The action alleges claims for violation of Section 10(b) of the Securities Exchange Act and Rule 10b-5 ~~there under,~~thereunder, section 20(a) of the Securities Exchange Act of 1934 and sections 11, 12, and 15 of the Securities Act of 1933. The action alleges, among other things, that AMERCO engaged in transactions with the SAC entities that falsely improved AMERCO’s financial statements and that AMERCO failed to disclose the transactions properly. The action has been transferred to the United ~~Sates~~States District Court, District of Arizona. ~~The action is in a very early stage. Management intends~~Defendants have filed motions to dismiss and will defend ~~this~~the case vigorously.

Securities and Exchange Commission

The Securities and Exchange Commission (“SEC”) has issued a formal order of investigation to determine whether the Company has violated the Federal Securities laws. ~~On January 7, 2003, the~~The Company ~~received the first of several subpoenas issued by the SEC~~has produced and delivered all requested documents and provided testimony from all requested witnesses to the ~~Company. SAC Holdings, the Company’s current and former auditors and others have also received subpoenas relating to this matter.~~SEC. The Company is cooperating with the SEC and is facilitating the expeditious review of its financial statements and any other issues that may arise. ~~The Company has produced a substantial number of documents to the SEC and continues to respond to requests for additional documents and to provide witnesses for testimony.~~ We cannot predict ~~when~~ the ~~investigation will be completed or its outcome.~~

~~AMERCO AND CONSOLIDATED ENTITIES~~outcome of the investigation.

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued~~

Environmental

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

Compliance with environmental requirements of federal, state and local governments significantly affects Real Estate’s business operations. Among other things, these requirements regulate the discharge of materials into the water, air and land and govern the use and disposal of hazardous substances. Real Estate is aware of issues regarding hazardous substances on some of its properties. Real Estate regularly makes capital and operating expenditures to stay in compliance with environmental laws and has put in place a remedial plan at each site where it believes such a plan is necessary. Since 1988, Real Estate has managed a testing and removal program for underground storage tanks. ~~Under this program we have spent approximately $44 million.~~

Based upon the information currently available to Real Estate, compliance with the environmental laws and its share of the costs of investigation and cleanup of known hazardous waste sites are not expected to have a material adverse effect on AMERCO’s financial position or operating results. Real Estate expects to spend approximately $8.7 million through 2011 to remediate these properties.

Other

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

~~11.~~8. Related Party Transactions

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

AMERCO AND CONSOLIDATED ENTITIES

~~A brother of an executive officer is employed by U-Haul Business Consultants Inc., a subsidiary of U-Haul International.~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

During the ~~third~~first quarter of fiscal ~~year 2005,~~2006, a subsidiary of the Company held various unsecured notes of SAC Holdings. Substantially all of the equity interest of SAC Holdings is controlled by Mark V. Shoen, a significant shareholder and executive officer of AMERCO. The Company does not have an equity ownership interest in SAC Holdings, except for minority investments made by RepWest and Oxford in a SAC Holdings-controlled limited partnership which holds Canadian self-storage properties. The Company received cash interest payments of ~~$1.0 million and $10.2~~$4.9 million, from SAC Holdings during the ~~third~~first quarter ~~and first nine months~~ of fiscal ~~year 2005, respectively.~~2006. The largest aggregate amount of notes receivable outstanding during the ~~third~~first quarter of fiscal ~~year 2005~~2006 and the aggregate notes receivable ~~bal ance~~balance at ~~December 31, 2004~~June 30, 2005 was ~~$203.8~~$203.7 million. Of this amount, $75.1 million is with SAC Holding II Corporation and eliminates in consolidation.

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

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

To the extent that this ~~cash~~“cash flow-based calculation exceeds the amount of remaining basic interest, contingent interest is paid on the same monthly date as the fixed portion of basic interest. To the extent that the cash flow-based calculationcalculation” is less than the amount of remaining basic interest, the additional interest payable on the applicable monthly date is limited to the amount of that ~~cash~~“cash flow-based calculation.” In such a case, the excess of the remaining basic interest over the ~~cash~~“cash flow-based ~~calculation~~calculation” is ~~defe rred.~~deferred and all amounts so deferred bear the stated rate of basic interest until maturity of the junior note. For the note with SAC Holding II Corporation and for certain notes with specified subsidiaries of SAC Holding Corporation, to the extent that this “cash flow-based calculation” exceeds the amount of remaining basic interest, contingent interest is paid on the same monthly date as the fixed portion of basic interest. In addition, subject to certain contingencies, the ~~junior~~note with SAC Holding II Corporation and certain notes with SAC Holding Corporation provide that the holder of the note is entitled to ~~receive 90% of the~~participate in any appreciation realized upon, among other things, the sale of ~~such property~~certain properties by SAC Holdings.

The Company currently manages the self-storage properties owned by SAC Holdings, Mercury, 4 SAC, 5 SAC and 19 SAC pursuant to a standard form of management agreement, under which the Company receives a management fee of between 4%4.0% and ~~10%~~6.0% of the gross receipts. The Company received management fees of ~~$10.9~~$4.0 million ~~for~~during the ~~nine months ended December 31, 2004.~~first quarter of fiscal 2006. This management fee is consistent with the fees received for other properties the Company manages for third parties.

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued~~

RepWest and Oxford currently hold a ~~46%~~combined 46.0% limited partnership interest in Securespace Limited Partnership (“Securespace”), a Nevada limited partnership. A SAC Holdings subsidiary serves as the general partner of Securespace and owns a 1%1.0% interest. Another SAC Holdings subsidiary owns the remaining ~~53%~~53.0% limited partnership interest in Securespace. Securespace was formed by SAC Holdings to be the owner of various Canadian self-storage properties. RepWest and Oxford’s investment in Securespace is included in Investment, other and is accounted for using the equity method of accounting. We do not believe that the carrying amount of their investment in Securespace is in excess of fair value.

~~For~~During the ~~nine months ended December 31, 2004,~~first quarters of fiscal 2006 and 2005, the Company leased space for marketing company offices, vehicle repair shops and hitch installation centers owned by subsidiaries of SAC ~~Holdings.~~Holdings, 4 SAC, 5 SAC and 19 SAC. Total lease payments pursuant to such leases were $~~1.9 million.~~0.7 million and $0.6 million during the first quarters of fiscal 2006 and 2005, respectively. The terms of the leases are similar to the terms of leases for other properties owned by unrelated parties that are leased to the Company.

At ~~December 31, 2004,~~June 30, 2005, subsidiaries of SAC Holdings, 4 SAC, 5 SAC and 19 SAC acted as U-Haul independent dealers. The financial and other terms of the dealership contracts with subsidiaries of SAC Holdings are substantially identical to the terms of those with the Company’s other independent dealers. ~~For~~During the ~~nine months ended December 31, 2004,~~first quarters of fiscal 2006 and 2005, the Company paid the above mentioned entities ~~$26.3~~$9.3 million and $8.9 million, respectively in commissions pursuant to such dealership contracts.

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

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

Management believes that its sales of self-storage properties to SAC Holdings ~~in the past~~has provided a unique structure for the Company to earn ~~rental revenues~~management fee income from the SAC Holdings self-storage properties that the Company manages and to participate in SAC Holdings’ excess cash flows as described above. ~~No real estate transactions with SAC Holdings that involve the Company or its subsidiaries are expected in the foreseeable future.~~

Independent fleet owners own approximately 4%3.0% of all U-Haul rental ~~trailers and 0.01% of certain other rental equipment.~~trailers. There are approximately ~~1,290~~1,200 independent fleet owners, including certain officers, directors, employees and stockholders of AMERCO. Such AMERCO officers, directors, employees and stockholders owned less than 1%1.0% of all U-Haul rental trailers during the ~~third quarter~~first quarters of fiscal ~~years~~2006 and 2005, ~~and 2004,~~ respectively. All rental equipment is operated under contract with U-Haul whereby U-Haul administers the operations and marketing of such equipment and in return receives a percentage of rental fees paid by customers. Based on the terms of various contracts, rental fees are distributed to U-Haul (for services as operators), to the fleet owners (including certain subsidiaries and related parties of ~~U- Haul)~~U-Haul) and to rental dealers (including Company-operated U-Haul Centers).

On August 20, 2004, an exchange occurred between the Company and James P. Shoen. Mr. Shoen, transferred 1,946,314 shares of AMERCO Series A Common Stock, $0.25 par value, in exchange for 1,946,314 shares of AMERCO Common Stock, $0.25 par value. Mr. Shoen is a director, employee and significant shareholder of AMERCO. No gain or loss was recognized as a result of this transaction.

In February 1997, AMERCO, through its insurance subsidiaries, invested in the equity of Private Mini, ~~Storage Realty, L.P. (Private Mini),~~ a Texas-based self-storage operator. RepWest invested $13.5 million and had a direct 30.6% interest and an indirect 13.2% interest. Oxford invested ~~$11~~$11.0 million and had a direct 24.9% interest and an indirect 10.8% interest. On June 30, 2003, RepWest and Oxford exchanged their respective interests in Private Mini for certain real property owned by certain SAC Holdings entities. The exchanges were non-monetary and were recorded on the basis of the book values of the assets exchanged.

During 1997, Private Mini secured a ~~$225~~$225.0 million line of credit with a financing institution, which was subsequently reduced in accordance with its terms to ~~$125~~$125.0 million in December 2001. Under the terms of this credit facility, AMERCO entered into a support party agreement with Private Mini whereby upon default or noncompliance with debt covenants by Private Mini, AMERCO assumed responsibility ~~to fulfill~~in fulfilling all obligations related to ~~the~~this credit facility. In 2003, the support party obligation was bifurcated into two separate support party obligations; one consisting of a ~~$55~~$55.0 million support party obligation and one consisting of a ~~$70~~$70.0 million support party obligation.

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued~~

At March 31, 2003, ~~$55~~$55.0 million of AMERCO’s support party ~~obligations~~obligation had been triggered. ~~As part of AMERCO’s bankruptcy reorganization,~~ AMERCO satisfied the ~~$55~~$55.0 million obligation by issuing notes to the Private Mini creditor, and we correspondingly increased our receivable from Private Mini by ~~$55~~$55.0 million. Interest from Private Mini on this receivable is being recorded and received by AMERCO on a regular basis. The Company expects to fully recover this amount. Under the terms of FIN 45, the remaining ~~$70~~$70.0 million support ~~part~~party obligation iswas recognized by the Company as a ~~liability.~~liability at March 31, 2004 and March 31, 2003. This resulted in AMERCO increasing Other Liabilities by ~~$70~~$70.0 million and increasing our receivable from Private Mini by an additional ~~$70~~$70.0 million.

~~12. Consolidating Financial Information by Industry Segment~~

AMERCO has three reportable segments represented by Moving and Self-Storage operations (U-Haul and Real Estate), Property and Casualty Insurance (RepWest) and Life Insurance (Oxford). SAC Holdings is part of the Moving and Self-Storage segment, but is not a part of the group obligated under the AMERCO debt agreement. Management tracks revenues separately, but does not report any separate measure of the profitability of rental vehicles, rentals of self-storage spaces and sales of products that are required to be classified as a separate operating segment and accordingly does not present these as separate segments.

~~The notes of~~ At March 31, 2005, the Company ~~are fully~~revalued the FIN 45 liability to $2.9 million. Effective July 15, 2005 the $70.0 million support party obligation was terminated and ~~unconditionally guaranteed, jointly and severally, by all~~AMERCO is no longer obligated on behalf of ~~AMERCO’s legal subsidiaries, except for our insurance company subsidiaries and except for SAC Holdings. Footnote 12 includes condensed consolidating financial information which presents~~Private Mini. The $2.9 million liability recorded in the ~~Condensed Consolidating Balance Sheets as of December 31, 2004 and March 31, 2004 and~~Company’s books was eliminated at the ~~related Condensed Consolidating Statements of Earnings and Condensed Consolidating Cash Flow Statements for~~time the ~~first nine months ended December 31, 2004 and 2003 for:~~guarantee was terminated.

~~(a) AMERCO,~~

~~(b) the guarantor subsidiaries (comprised of AMERCO, U-Haul and Real Estate and each of their respective subsidiaries);~~

~~(c) the non guarantor subsidiaries (comprised of Oxford and RepWest and each of their respective subsidiaries); and~~

~~(d) SAC Holdings.~~

The information includes elimination entries necessary to consolidate AMERCO, the parent, with the guarantor and non-guarantor subsidiaries. Investments in subsidiaries are accounted for by the parent using the equity method of accounting. The guarantor and non-guarantor subsidiaries are presented on a combined basis. Deferred income taxes are shown as liabilities on the consolidating statements.

~~AMERCO and consolidated entities~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (C~~~~ontinued)~~

~~12.~~~~Consolidating balance sheets by industry segment as of December 31, 2004 are as follows:~~

Obligated Group AMERCO Legal Group AMERCO as Consolidated
AMERCO U-Haul Real Estate Eliminations
Obligated Group
Consolidated
Property and Casualty Insurance(a)
Life
Insurance(a)
Eliminations
AMERCO
Consolidated
SAC Moving and Storage Operations Eliminations Total Consolidated
(Unaudited)
Assets: (In thousands)
Cash and cash equivalents $ 9,423 $ 53,625 $ 4,331 $ - $ 67,379 $ 7,968 $ 4,562 $ - $ 79,909 $ 317 $ - $ 80,226
Trade receivables, net - 17,490 27 - 17,517 210,062 16,127 - 243,706 - - 243,706
Notes and mortgage receivables, net - 4,289 1,358 - 5,647 - - - 5,647 - - 5,647
Inventories, net - 52,698 - - 52,698 - - - 52,698 1,133 - 53,831
Prepaid expenses 3,394 19,742 - - 23,136 - - - 23,136 214 - 23,350
Investments, fixed maturities - - - - - 116,775 555,232 - 672,007 - - 672,007
Investments, other - 936 9,218 - 10,154 146,265 177,549 - 333,968 - - 333,968
Deferred policy acquisition costs, net - - - - - 2,282 62,590 - 64,872 - - 64,872
Other assets 21,721 55,122 1,900 - 78,743 2,073 846 - 81,662 5,978 - 87,640
Related party assets 544,718 601,859 11,880 (747,847 ) (d) 410,610 106,521 32,435 (142,435 ) (d) 407,131 - (88,758 ) (d ) 318,373
579,256 805,761 28,714 (747,847 ) 665,884 591,946 849,341 (142,435 ) 1,964,736 7,642 (88,758 ) 1,883,620
Investment in Subsidiaries 1,260,863 �� - - (979,824 ) (c) 281,039 - - (281,039 ) (c) - - - -
Investment in SAC (13,255 ) - - - (13,255 ) - - - (13,255 ) - 13,255 (c ) -
Total investment in subsidiaries 1,247,608 - - (979,824 ) 267,784 - - (281,039 ) (13,255 ) - 13,255 -
Property, plant and equipment, at cost:
Land - 21,316 130,171 - 151,487 - - - 151,487 - - 151,487
Buildings and improvements - 85,537 599,903 - 685,440 - - - 685,440 - - 685,440
Furniture and equipment 413 267,485 17,878 - 285,776 - - - 285,776 - - 285,776
Rental trailers and other rental equipment - 175,116 - - 175,116 - - - 175,116 - - 175,116
Rental trucks - 1,278,072 - - 1,278,072 - - - 1,278,072 - - 1,278,072
SAC Holdings II - property, plant and equipment (b) - - - - - - - - - 152,891 (74,212 ) (e ) 78,679
413 1,827,526 747,952 - 2,575,891 - - - 2,575,891 152,891 (74,212 ) 2,654,570
Less: Accumulated depreciation (372 ) (1,088,697 ) (268,370 ) - (1,357,439 ) - - - (1,357,439 ) (6,930 ) 8,964 (e ) (1,355,405 )
Total property, plant and equipment 41 738,829 479,582 - 1,218,452 - - - 1,218,452 145,961 (65,248 ) 1,299,165
Total assets $ 1,826,905 $ 1,544,590 $ 508,296 $ (1,727,671 ) $ 2,152,120 $ 591,946 $ 849,341 $ (423,474 ) $ 3,169,933 $ 153,603 $ (140,751 ) $ 3,182,785

(a) Balances as of September 30, 2004
(b) Included in this caption is land of $56,959, buildings and improvements of $95,737, and furniture and equipment of $195
(c) Eliminate investment in subsidiaries
(d) Eliminate intercompany receivables and payables
(e) Eliminate gain on sale of property from U-Haul to SAC

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - ~~(Continued)~~Continued

~~12.~~Related Party Receivables

	June 30,		March 31,
	2005		2005
	(Unaudited)
	(In thousands)
PMSR Receivables and Interest	$	79,878	$	70,887
Oxford note receivable from SAC Holding Corporation		5,040		5,040
U-Haul notes receivable from SAC Holding Corporation		123,578		123,578
U-Haul interest receivable from SAC Holding Corporation		36,818		35,960
U-Haul receivable from SAC Holding Corporation		1,852		1,028
SAC Holding II receivable from parent		2,202		2,202
U-Haul receivable from Mercury		5,805		2,185
Oxford and RepWest investment in Securespace		11,279		11,225
Other		-		561
	$	266,452	$	252,666

Related Party Liabilities

	June 30,		March 31,
	2005		2005
	(Unaudited)
	(In thousands)
SAC Holding II Corporation receivable from affiliate	$	10,771	$	11,070
	$	10,771	$	11,070

9. Consolidating Financial Information by Industry Segment

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

This section includes condensed consolidating financial information which presents the condensed consolidating balance sheets ~~by industry segment~~ as of ~~December~~June 30, 2005 and March 31, ~~2004 are as follows (continued):~~2005 and the related condensed consolidating statements of earnings and condensed consolidating cash flow statements for the first quarters of fiscal 2006 and 2005 for:

Obligated Group AMERCO Legal Group AMERCO as Consolidated
AMERCO U-Haul Real Estate Eliminations
Obligated Group
Consolidated
Property and Casualty Insurance(a)
Life
Insurance(a)
Eliminations
AMERCO
Consolidated
SAC Moving and Storage Operations Eliminations Total Consolidated
(Unaudited)
(In thousands)
Liabilities:
Accounts payable and accrued expenses $ 33,130 $ 168,957 $ 8,526 $ - $ 210,613 $ - $ 1,694 $ - $ 212,307 $ 3,734 $ - $ 216,041
AMERCO's notes and loans payable 696,048 - - - 696,048 - - - 696,048 - - 696,048
SAC Holdings' notes and loans payable - - - - - - - - - 77,790 - 77,790
Policy benefits and losses, claims and loss expenses payable - 240,293 - - 240,293 409,030 167,835 - 817,158 - - 817,158
Liabilities from investment contracts - - - - - - 516,273 - 516,273 - - 516,273
Other policyholders' funds and liabilities - - - - - 8,574 15,828 - 24,402 - - 24,402
Deferred income - 19,439 2 - 19,441 12,143 14,279 - 45,863 570 - 46,433
Deferred income taxes 183,090 254,245 94,914 (349,159 ) (d) 183,090 (9,207 ) 2,423 (38,414 ) (d) 137,892 (3,994 ) (27,249 ) (e ) 106,649
Other liabilities - - - - - - - - - - - -
Related party liabilities 253,761 141,501 156,071 (398,688 ) (d) 152,645 9,477 11,899 (104,021 ) (d) 70,000 88,758 (88,758 ) (d ) 70,000
Total liabilities 1,166,029 824,435 259,513 (747,847 ) 1,502,130 430,017 730,231 (142,435 ) 2,519,943 166,858 (116,007 ) 2,570,794
Stockholders' equity:
Serial preferred stock:
Series A preferred stock - - - - - - - - - - - -
Series B preferred stock - - - - - - - - - - - -
Serial A common stock 929 - - - 929 - - - 929 - - 929
Common Stock 9,568 540 1 (541 ) (c) 9,568 3,300 2,500 (5,800 ) (c) 9,568 - - 9,568
Additional paid in-capital 396,415 121,230 147,481 (268,711 ) (c) 396,415 69,922 16,435 (86,357 ) (c) 396,415 - (46,071 ) (e ) 350,344
Accumulated other comprehensive income/(loss) (24,354 ) (32,856 ) - 32,856 (c) (24,354 ) 5,652 3,718 (9,370 ) (c) (24,354 ) - - (24,354 )

Retained earnings 696,410 642,127 101,301 (743,428 ) (c) 696,410 83,055 96,457 (179,512 ) (c) 696,410 (13,255 ) 21,327 (c ) 704,482
Cost of common shares in treasury, net (418,092 ) - - - (418,092 ) - - - (418,092 ) - - (418,092 )
Unearned employee stock ownership plan shares - (10,886 ) - - (10,886 ) - - - (10,886 ) - - (10,886 )
Total stockholders' equity 660,876 720,155 248,783 (979,824 ) 649,990 161,929 119,110 (281,039 ) 649,990 (13,255 ) (24,744 ) 611,991
Total liabilities and stockholders' equity $ 1,826,905 $ 1,544,590 $ 508,296 $ (1,727,671 ) $ 2,152,120 $ 591,946 $ 849,341 $ (423,474 ) $ 3,169,933 $ 153,603 $ (140,751 ) $ 3,182,785

(a) Balances as of September 30, 2004
(b) Not used
(c) Eliminate investment in subsidiaries
(d) Eliminate intercompany receivables and payables
(e) Eliminate gain on sale of property from U-Haul to SAC


	(a)
Moving and Storage Operations, comprised of AMERCO, U-Haul, and Amerco Real Estate Company and each of their respective subsidiaries;

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)~~

~~12. Consolidating balance sheets by industry segment as of March 31, 2004 are as follows:~~

Obligated Group AMERCO Legal Group AMERCO as Consolidated
AMERCO U-Haul
Real
Estate
Eliminations
Obligated Group
Consolidated
Property and Casualty Insurance(a)
Life
Insurance(a)
Eliminations
AMERCO
Consolidated
SAC Moving and Storage Operations Eliminations Total Consolidated
Assets: (In thousands)
Cash and cash equivalents $ - $ 64,717 $ 661 $ - $ 65,378 $ - $ 15,168 $ - $ 80,546 $ 1,011 $ - $ 81,557
Trade receivables, net - 13,404 14,856 - 28,260 223,747 16,379 - 268,386 - - 268,386
Notes and mortgage receivables, net - 2,973 1,564 - 4,537 - - - 4,537 - - 4,537
Inventories, net - 51,922 - - 51,922 - - - 51,922 880 - 52,802
Prepaid expenses 81 12,947 2 - 13,030 - - - 13,030 142 - 13,172
Investments, fixed maturities - - - - - 148,903 560,450 - 709,353 - - 709,353
Investments, other - - - - - 143,163 204,374 - 347,537 - - 347,537
Deferred policy acquisition costs, net - - - - - 3,843 73,096 - 76,939 - - 76,939
Other assets 26,001 26,762 2,989 - 55,752 3,686 1,000 - 60,438 4,633 - 65,071
Related party assets 531,458 397,406 13,300 (551,450 ) (d) 390,714 104,543 50,187 (155,341 ) (d) 390,103 - (85,657 ) (d ) 304,446
557,540 570,131 33,372 (551,450 ) 609,593 627,885 920,654 (155,341 ) 2,002,791 6,666 (85,657 ) 1,923,800

Investment in subsidiaries 1,137,579 - - (847,545 ) (c) 290,034 - - (290,034 ) (c) - - - -
Investment in SAC (12,427 ) - - - (12,427 ) - - - (12,427 ) - 12,427 (c ) -
Total investment in subsidiaries 1,125,152 - - (847,545 ) 277,607 - - (290,034 ) (12,427 ) - 12,427 -

Property, plant and equipment, at cost:
Land - 20,923 137,671 - 158,594 - - - 158,594 - - 158,594
Buildings and improvements - 271,223 603,762 - 874,985 - - - 874,985 - - 874,985
Furniture and equipment 413 274,600 18,102 - 293,115 - - - 293,115 - - 293,115
Rental trailers and other rental equipment - 159,586 - - 159,586 - - - 159,586 - - 159,586
Rental trucks - 1,219,002 - - 1,219,002 - - - 1,219,002 - - 1,219,002
SAC Holdings II - property, plant and equipment (b) - - - - - - - - - 152,575 (74,212 ) (e ) 78,363
413 1,945,334 759,535 - 2,705,282 - - - 2,705,282 152,575 (74,212 ) 2,783,645
Less: Accumulated depreciation (353 ) (1,069,605 ) (265,279 ) - (1,335,237 ) - - - (1,335,237 ) (5,147 ) 8,544 (e ) (1,331,840 )
Total property, plant and equipment 60 875,729 494,256 - 1,370,045 - - - 1,370,045 147,428 (65,668 ) 1,451,805

Total assets $ 1,682,752 $ 1,445,860 $ 527,628 $ (1,398,995 ) $ 2,257,245 $ 627,885 $ 920,654 $ (445,375 ) $ 3,360,409 $ 154,094 $ (138,898 ) $ 3,375,605

(a) Balances as of December 31, 2003
(b) Included in this caption is land of $57,123, buildings and improvements of $95,326, and furniture and equipment of $126
(c) Eliminate investment in subsidiaries
(d) Eliminate intercompany receivables and payables
(e) Eliminate gain on sale of property from U-Haul to SAC


(b)
RepWest and its subsidiary

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)~~

~~12. Consolidating balance sheets by industry segment as of March 31, 2004 are as follows (continued):~~

Obligated Group AMERCO Legal Group AMERCO as Consolidated
AMERCO U-Haul Real Estate Eliminations
Obligated Group
Consolidated
Property and Casualty Insurance(a)
Life
Insurance(a)
Eliminations
AMERCO
Consolidated
SAC Moving and Storage Operations Eliminations Total Consolidated
(In thousands)
Liabilities:
Accounts payable and accrued expenses $ 9,971 $ 220,587 $ 2,622 $ - $ 233,180 $ 734 $ 5,522 $ - $ 239,436 $ 5,134 $ - $ 244,570
Capital leases - 99,609 - - 99,609 - - - 99,609 - - 99,609
AMERCO's notes and loans payable 862,697 - - - 862,697 - - - 862,697 - - 862,697
SAC Holdings' notes and loans payable - - - - - - - - - 78,637 - 78,637
Policy benefits and losses, claims and loss expenses payable - 206,595 - - 206,595 429,593 177,550 - 813,738 - - 813,738
Liabilities from investment contracts - - - - - - 574,745 - 574,745 - - 574,745
Other policyholders' funds and liabilities - - - - - 18,369 10,363 - 28,732 - - 28,732
Deferred income - 21,278 36 - 21,314 15,229 14,279 - 50,822 561 - 51,383
Deferred income taxes 163,652 222,188 94,914 (355,399 ) (d) 125,355 (12,080 ) 5,953 (24,552 ) (d) 94,676 (3,468 ) (27,408 ) (e ) 63,800
Other liabilities - - - - - - - - - - - -
Related party liabilities 92,300 74,089 196,051 (196,051 ) (d) 166,389 7,000 11,248 (130,789 ) (d) 53,848 85,657 (85,657 ) (d ) 53,848
Total liabilities 1,128,620 844,346 293,623 (551,450 ) 1,715,139 458,845 799,660 (155,341 ) 2,818,303 166,521 (113,065 ) 2,871,759
Stockholders' equity:
Serial preferred stock:
Series A preferred stock - - - - - - - - - - - -
Series B preferred stock - - - - - - - - - - - -
Serial A common stock 1,416 - - - 1,416 - - - 1,416 - - 1,416
Common Stock 9,081 540 1 (541 ) (c) 9,081 3,300 2,500 (5,800 ) (c) 9,081 - - 9,081
Additional paid in-capital 395,803 121,230 147,481 (268,711 ) (c) 395,803 70,023 16,435 (86,458 ) (c) 395,803 - (46,071 ) (e ) 349,732
Accumulated other comprehensive income/(loss) (21,446 ) (34,913 ) - 34,913 (c) (21,446 ) 6,975 7,299 (14,274 ) (c) (21,446 ) - - (21,446 )
Retained earnings 587,370 526,683 86,523 (613,206 ) (c) 587,370 88,742 94,760 (183,502 ) (c) 587,370 (12,427 ) 20,238 (c ) 595,181
Cost of common shares in treasury, net (418,092 ) - - - (418,092 ) - - - (418,092 ) - - (418,092 )
Unearned employee stock ownership plan shares - (12,026 ) - - (12,026 ) - - - (12,026 ) - - (12,026 )
Total stockholders' equity 554,132 601,514 234,005 (847,545 ) 542,106 169,040 120,994 (290,034 ) 542,106 (12,427 ) (25,833 ) 503,846
Total liabilities and stockholders' equity $ 1,682,752 $ 1,445,860 $ 527,628 $ (1,398,995 ) $ 2,257,245 $ 627,885 $ 920,654 $ (445,375 ) $ 3,360,409 $ 154,094 $ (138,898 ) $ 3,375,605

(a) Balances as of December 31, 2003
(b) Not used
(c) Eliminate investment in subsidiaries
(d) Eliminated intercompany receivables and payables
(e) Eliminate gain on sale of property from U-Haul to SAC


(c)
Oxford and its subsidiaries

(d)

SAC Holding II

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)~~The information includes elimination entries necessary to consolidate AMERCO, the parent, with its subsidiaries.

~~12. Consolidating statement~~Investments in subsidiaries are accounted for by the parent using the equity method of ~~operations by industry segment for the quarter ended December 31, 2004 are as follows:~~

Obligated Group AMERCO Legal Group AMERCO as Consolidated
AMERCO U-Haul Real Estate Eliminations
Obligated Group
Consolidated
Property and Casualty Insurance(a)
Life
Insurance(a)
Eliminations
AMERCO
Consolidated
SAC Moving and Storage Operations Eliminations Total Consolidated
(Unaudited)
(In thousands)
Revenues:
Rental revenue $ - $ 362,427 $ 14,136 $ (15,481 ) (b) $ 361,082 $ - $ - $ - $ 361,082 $ 6,875 $ (2,826 ) (b ) $ 365,131
Net sales - 39,404 (15 ) - 39,389 - - - 39,389 3,231 - 42,620
Premiums - - - - - 3,975 31,603 (944 ) (c) 34,634 - - 34,634
Net investment and interest income 1,869 5,270 22 - 7,161 6,827 6,299 - 20,287 - (2,145 ) (d ) 18,142
Total revenues 1,869 407,101 14,143 (15,481 ) 407,632 10,802 37,902 (944 ) 455,392 10,106 (4,971 ) 460,527
Costs and expenses:
Operating expenses 5,126 276,504 1,657 (15,481 ) (b) 267,806 3,824 12,656 (944 ) (b,c) 283,342 5,226 (606 ) (b,c ) 287,962
Commission expenses - 41,286 - - 41,286 - - - 41,286 - (2,043 ) 39,243
Cost of sales - 19,254 (8 ) - 19,246 - - - 19,246 2,115 - 21,361
Benefits and losses - - - - - 15,920 22,683 - 38,603 - - 38,603
Amortization of deferred policy acquisition costs - - - - - 276 6,003 - 6,279 - - 6,279
Lease expense 23 38,656 4 - 38,683 - - - 38,683 - (177 ) (b ) 38,506
Depreciation, net 7 27,725 63 - 27,795 - - - 27,795 627 (140 ) (e ) 28,282
Total costs and expenses 5,156 403,425 1,716 (15,481 ) 394,816 20,020 41,342 (944 ) 455,234 7,968 (2,966 ) 460,236
Equity in earnings of AREC, UHI, RWIC & OLIC 3,161 - - (11,481 ) (f) (8,320 ) - - 8,320 (f) - - - -
Equity in earnings of SAC II (905 ) - - - (905 ) - - - (905 ) - 905 (f ) -
Total - equity earnings in subsidiaries 2,256 - - (11,481 ) (9,225 ) - - 8,320 (905 ) - 905 -
Earnings (loss) from operations (1,031 ) 3,676 12,427 (11,481 ) 3,591 (9,218 ) (3,440 ) 8,320 (747 ) 2,138 (1,100 ) 291
Interest expense(benefit) 17,707 (6,354 ) 4,013 - 15,366 - - - 15,366 3,710 (2,145 ) (d ) 16,931
Litigation settlement 51,341 - - - 51,341 - - - 51,341 - - 51,341
Pretax earnings (loss) 32,603 10,030 8,414 (11,481 ) 39,566 (9,218 ) (3,440 ) 8,320 35,228 (1,572 ) 1,045 34,701
Income tax benefit (expense) (11,144 ) (3,665 ) (3,298 ) - (18,107 ) 3,219 1,119 - (13,769 ) 667 (53 ) (13,155 )
Net earnings (loss) 21,459 6,365 5,116 (11,481 ) 21,459 (5,999 ) (2,321 ) 8,320 21,459 (905 ) 992 21,546
Less: Preferred stock dividends (3,241 ) - - - (3,241 ) - - - (3,241 ) - - (3,241 )
Earnings (loss) available to common shareholders $ 18,218 $ 6,365 $ 5,116 $ (11,481 ) $ 18,218 $ (5,999 ) $ (2,321 ) $ 8,320 $ 18,218 $ (905 ) $ 992 $ 18,305

(a) Balances for the quarter ended September 30, 2004
(b) Eliminate intercompany lease income
(c) Eliminate intercompany premiums
(d) Eliminate intercompany interest on debt
(e) Eliminate gain on sale of surplus property from U-Haul to SAC
(f) Eliminate equity earnings of subsidiaries

~~AMERCO AND CONSOLIDATED ENTITIES~~accounting.

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)~~

~~12. Consolidating statements of operations by industry for the quarter ended December 31, 2003 are as follows:~~

Obligated Group AMERCO Legal Group AMERCO as Consolidated
AMERCO U-Haul Real Estate Eliminations
Obligated Group
Consolidated
Property and Casualty Insurance(a)
Life
Insurance(a)
Eliminations
AMERCO
Consolidated
SAC Moving and Storage Operations Eliminations Total Consolidated
(Unaudited)
(In thousands)
Revenues:
Rental revenue $ - $ 356,803 $ 15,404 $ (15,488 ) (b) $ 356,719 $ - $ - $ - $ 356,719 $ 43,257 $ (13,520 ) (b ) $ 386,456
Net sales - 36,655 15 - 36,670 - - - 36,670 10,542 - 47,212
Premiums - - - - - 20,106 36,427 (445 ) (c) 56,088 - - 56,088
Net investment and interest income 529 6,908 2,017 - 9,454 7,258 4,743 - 21,455 - (8,628 ) (d ) 12,827
Total revenues 529 400,366 17,436 (15,488 ) 402,843 27,364 41,170 (445 ) 470,932 53,799 (22,148 ) 502,583
Costs and expenses:
Operating expenses 6,153 283,936 1,972 (15,488 ) (b) 276,573 3,460 6,020 (445 ) (b,c) 285,608 24,926 (3,156 ) (b,c ) 307,378
Restructuring expenses 7,613 - - - 7,613 - - - 7,613 - - 7,613
Commission expenses - 38,123 - - 38,123 - - - 38,123 - (6,987 ) 31,136
Cost of sales - 19,684 5 - 19,689 - - - 19,689 4,219 - 23,908
Benefits and losses - - - - - 26,597 24,359 - 50,956 - - 50,956
Amortization of deferred policy acquisition costs - - - - - 4,676 6,351 - 11,027 - - 11,027
Lease expense 231 36,224 124 - 36,579 - - - 36,579 - (3,377 ) (b ) 33,202
Depreciation, net 3 32,799 926 - 33,728 - - - 33,728 5,147 (482 ) (e ) 38,393
Total costs and expenses 14,000 410,766 3,027 (15,488 ) 412,305 34,733 36,730 (445 ) 483,323 34,292 (14,002 ) 503,613
Equity in earnings of AREC, UHI, RWIC & OLIC (2,983 ) - - 569 (f) (2,414 ) - - 2,414 (f) - - - -
Equity in earnings of SAC 216 - - - 216 - - - 216 - (216 ) (f ) -
Total - equity earnings in subsidiaries (2,767 ) - - 569 (2,198 ) - - 2,414 216 - (216 ) -
Earnings (loss) from operations (16,238 ) (10,400 ) 14,409 569 (11,660 ) (7,369 ) 4,440 2,414 (12,175 ) 19,507 (8,362 ) (1,030 )
Interest expense(benefit) 14,485 (2,868 ) 8,127 - 19,744 - - - 19,744 20,052 (8,628 ) (d ) 31,168
Pretax earnings (loss) (30,723 ) (7,532 ) 6,282 569 (31,404 ) (7,369 ) 4,440 2,414 (31,919 ) (545 ) 266 (32,198 )
Income tax benefit (expense) 8,574 3,238 (2,557 ) - 9,255 2,573 (2,058 ) - 9,770 761 - 10,531
Net earnings (loss) (22,149 ) (4,294 ) 3,725 569 (22,149 ) (4,796 ) 2,382 2,414 (22,149 ) 216 266 (21,667 )
Less: Preferred stock dividends (3,241 ) - - - (3,241 ) - - - (3,241 ) - - (3,241 )
Earnings (loss) available to common shareholders $ (25,390 ) $ (4,294 ) $ 3,725 $ 569 $ (25,390 ) $ (4,796 ) $ 2,382 $ 2,414 $ (25,390 ) $ 216 $ 266 $ (24,908 )

(a) Balances for the quarter ended September 30, 2003
(b) Eliminate intercompany lease income
(c) Eliminate intercompany premiums
(d) Eliminate intercompany interest on debt
(e) Eliminate gain on sale of surplus property from U-Haul to SAC
(f) Eliminate equity earnings of subsidiaries

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~12.~~ 9.Consolidating ~~statements of operations~~balance sheets by industry ~~for the nine months ended December 31, 2004~~segment as of June 30, 2005 are as follows:

Obligated Group AMERCO Legal Group AMERCO as Consolidated
AMERCO U-Haul Real Estate Eliminations
Obligated Group
Consolidated
Property and Casualty Insurance(a)
Life
Insurance(a)
Eliminations
AMERCO
Consolidated
SAC Moving and Storage Operations Eliminations Total Consolidated
(Unaudited)
(In thousands)
Revenues:
Rental revenue $ - $ 1,253,643 $ 43,499 $ (46,492 ) (b) $ 1,250,650 $ - $ - $ - $ 1,250,650 $ 21,389 $ (9,704 ) (b ) $ 1,262,335
Net sales - 149,844 - - 149,844 - - - 149,844 11,839 - 161,683
Premiums - - - - - 20,815 97,640 (2,939 ) (c) 115,516 - - 115,516
Net investment and interest income 6,826 16,569 76 - 23,471 15,063 17,960 - 56,494 - (6,242 ) (d ) 50,252
Total revenues 6,826 1,420,056 43,575 (46,492 ) 1,423,965 35,878 115,600 (2,939 ) 1,572,504 33,228 (15,946 ) 1,589,786
Costs and expenses:
Operating expenses 16,653 832,195 5,304 (46,492 ) (b) 807,660 5,381 23,907 (2,939 ) (b,c) 834,009 16,615 (2,003 ) (b,c ) 848,621
Commission expenses - 145,233 - - 145,233 - - - 145,233 - (7,169 ) 138,064
Cost of sales - 72,489 - - 72,489 - - - 72,489 5,128 - 77,617
Benefits and losses - - - - - 33,817 70,377 - 104,194 - - 104,194
Amortization of deferred policy acquisition costs - - - - - 5,429 18,586 - 24,015 - - 24,015
Lease expense 67 115,823 31 - 115,921 - - - 115,921 - (532 ) (b ) 115,389
Depreciation, net 24 81,576 3,147 - 84,747 - - - 84,747 1,887 (420 ) (e ) 86,214
Total costs and expenses 16,744 1,247,316 8,482 (46,492 ) 1,226,050 44,627 112,870 (2,939 ) 1,380,608 23,630 (10,124 ) 1,394,114
Equity in earnings of AREC, UHI, RWIC & OLIC 126,232 - - (130,222 ) (f) (3,990 ) - - 3,990 (f) - - - -
Equity in earnings of SAC II (828 ) - - - (828 ) - - - (828 ) - 828 (f ) -
Total - equity earnings in subsidiaries 125,404 - - (130,222 ) (4,818 ) - - 3,990 (828 ) - 828 -
Earnings (loss) from operations 115,486 172,740 35,093 (130,222 ) 193,097 (8,749 ) 2,730 3,990 191,068 9,598 (4,994 ) 195,672
Interest expense(benefit) 51,917 (13,258 ) 10,637 - 49,296 - - - 49,296 10,941 (6,242 ) (d ) 53,995
Litigation settlement 51,341 - - - 51,341 - - - 51,341 - - 51,341
Pretax earnings (loss) 114,910 185,998 24,456 (130,222 ) 195,142 (8,749 ) 2,730 3,990 193,113 (1,343 ) 1,248 193,018
Income tax benefit (expense) 3,853 (70,554 ) (9,678 ) - (76,379 ) 3,062 (1,033 ) - (74,350 ) 515 (159 ) (73,994 )
Net earnings (loss) 118,763 115,444 14,778 (130,222 ) 118,763 (5,687 ) 1,697 3,990 118,763 (828 ) 1,089 119,024
Less: Preferred stock dividends (9,723 ) - - - (9,723 ) - - - (9,723 ) - - (9,723 )
Earnings (loss) available to common shareholders $ 109,040 $ 115,444 $ 14,778 $ (130,222 ) $ 109,040 $ (5,687 ) $ 1,697 $ 3,990 $ 109,040 $ (828 ) $ 1,089 $ 109,301

(a) Balances for the nine months ended September 30, 2004
(b) Eliminate intercompany lease income
(c ) Eliminate intercompany premiums
(d) Eliminate intercompany interest on debt
(e) Eliminate gain on sale of surplus property from U-Haul to SAC
(f) Eliminate equity earnings of subsidiaries

	Moving and Storage																	AMERCO Legal Group									AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Eliminations					Moving and Storage Consolidated			Property and Casualty Insurance (a)		Life Insurance (a)		Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated
	(Unaudited)
	(In thousands)
Assets:
Cash and cash equivalents	$	3		$	214,117		$	448		$	-				$	214,568		$	6,959	$	7,184	$	-				$	228,711		$	787		$	-				$	229,498
Trade receivables, net		-			17,303			27			-					17,330			205,398		13,559		-					236,287			-			-					236,287
Notes and mortgage receivables, net		-			1,568			927			-					2,495			-		-		-					2,495			-			-					2,495
Inventories, net		-			64,490			-			-					64,490			-		-		-					64,490			1,414			-					65,904
Prepaid expenses		2,059			18,563			-			-					20,622			-		-		-					20,622			68			-					20,690
Investments, fixed maturities		-			-			-			-					-			85,697		557,941		-					643,638			-			-					643,638
Investments, other		-			64			8,056			-					8,120			156,300		138,316		-					302,736			-			-					302,736
Deferred policy acquisition costs, net		-			-			-			-					-			1,249		51,455		-					52,704			-			-					52,704
Other assets		238			70,773			36,889			-					107,900			3,481		1,135		-					112,516			4,646			-					117,162
Related party assets		480,719			461,694			736,178			(1,328,487	)	(d	)		350,104			54,815		32,135		(91,322	)	(d	)		345,732			2,202			(81,482	)	(d	)		266,452
		483,019			848,572			782,525			(1,328,487	)				785,629			513,899		801,725		(91,322	)				2,009,931			9,117			(81,482	)				1,937,566

Investment in Subsidiaries		1,293,854			-			-			(1,026,096	)	(c	)		267,758			-		-		(267,758	)	(c	)		-			-			-					-
Investment in SAC Holding II		(14,099	)		-			-			-					(14,099	)		-		-		-					(14,099	)		-			14,099		(c	)		-
Total investment in subsidiaries and SAC Holding II		1,279,755			-			-			(1,026,096	)				253,659			-		-		(267,758	)				(14,099	)		-			14,099					-

Property, plant and equipment, at cost:
Land		-			21,131			130,998			-					152,129			-		-		-					152,129			-			-					152,129
Buildings and improvements		-			85,583			601,161			-					686,744			-		-		-					686,744			-			-					686,744
Furniture and equipment		292			249,793			17,724			-					267,809			-		-		-					267,809			-			-					267,809
Rental trailers and other rental equipment		-			202,385			-			-					202,385			-		-		-					202,385			-			-					202,385
Rental trucks		-			1,270,440			-			-					1,270,440			-		-		-					1,270,440			-			-					1,270,440
SAC Holding II - property, plant and equipment (b)		-			-			-			-					-			-		-		-					-			151,912			(74,212	)	(e	)		77,700
		292			1,829,332			749,883			-					2,579,507			-		-		-					2,579,507			151,912			(74,212	)				2,657,207
Less: Accumulated depreciation		(263	)		(1,005,397	)		(272,114	)		-					(1,277,774	)		-		-		-					(1,277,774	)		(8,155	)		9,244		(e	)		(1,276,685	)
Total property, plant and equipment		29			823,935			477,769			-					1,301,733			-		-		-					1,301,733			143,757			(64,968	)				1,380,522

Total assets	$	1,762,803		$	1,672,507		$	1,260,294		$	(2,354,583	)			$	2,341,021		$	513,899	$	801,725	$	(359,080	)			$	3,297,565		$	152,874		$	(132,351	)			$	3,318,088

(a) Balances as of March 31, 2005

(b) Included in this caption is land of $57,169, buildings and improvements of $94,471, and furniture and equipment of $272

(d) Eliminate intercompany receivables and payables

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

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~12.~~ 9.Consolidating ~~statements of operations by industry for the nine months ended December 31, 2003 are as follows:~~

Obligated Group AMERCO Legal Group AMERCO as Consolidated
AMERCO U-Haul Real Estate Eliminations
Obligated Group
Consolidated
Property and Casualty Insurance(a)
Life
Insurance(a)
Eliminations
AMERCO
Consolidated
SAC Moving and Storage Operations Eliminations Total Consolidated
(Unaudited)
(In thousands)
Revenues:
Rental revenue $ - $ 1,220,036 $ 45,544 $ (45,649 ) (b) $ 1,219,931 $ - $ - $ - $ 1,219,931 $ 127,415 $ (42,876 ) (b ) $ 1,304,470
Net sales - 142,375 52 - 142,427 - - - 142,427 39,621 - 182,048
Premiums - - - - - 78,247 112,852 (3,075 ) (c) 188,024 - - 188,024
Net investment and interest income 1,057 22,740 6,012 - 29,809 19,180 15,420 - 64,409 - (28,795 ) (d ) 35,614
Total revenues 1,057 1,385,151 51,608 (45,649 ) 1,392,167 97,427 128,272 (3,075 ) 1,614,791 167,036 (71,671 ) 1,710,156
Costs and expenses:
Operating expenses 20,372 817,768 5,615 (45,649 ) (b) 798,106 17,761 23,173 (3,075 ) (b,c) 835,965 81,541 (9,811 ) (b,c ) 907,695
Restructuring expenses 12,027 - - - 12,027 - - - 12,027 - - 12,027
Commission expenses - 139,065 - - 139,065 - - - 139,065 - (22,933 ) 116,132
Cost of sales - 70,099 21 - 70,120 - - - 70,120 16,903 - 87,023
Benefits and losses - - - - - 89,594 80,207 - 169,801 - - 169,801
Amortization of deferred policy acquisition costs - - - - - 11,842 17,044 - 28,886 - - 28,886
Lease expense 691 110,758 399 - 111,848 - - - 111,848 - (10,132 ) (b ) 101,716
Depreciation, net 10 93,693 5,092 - 98,795 - - - 98,795 16,007 (1,446 ) (e ) 113,356
Total costs and expenses 33,100 1,231,383 11,127 (45,649 ) 1,229,961 119,197 120,424 (3,075 ) 1,466,507 114,451 (44,322 ) 1,536,636
Equity in earnings of AREC, UHI, RWIC & OLIC 104,158 - - (113,337 ) (f) (9,179 ) - - 9,179 (f) - - - -
Equity in earnings of SAC (5,811 ) - - - (5,811 ) - - - (5,811 ) - 5,811 (f ) -
Total - equity earnings in subsidiaries 98,347 - - (113,337 ) (14,990 ) - - 9,179 (5,811 ) - 5,811 -
Earnings (loss) from operations 66,304 153,768 40,481 (113,337 ) 147,216 (21,770 ) 7,848 9,179 142,473 52,585 (21,538 ) 173,520
Interest expense(benefit) 44,414 (8,018 ) 23,965 - 60,361 - - - 60,361 61,273 (28,795 ) (d ) 92,839
Pretax earnings (loss) 21,890 161,786 16,516 (113,337 ) 86,855 (21,770 ) 7,848 9,179 82,112 (8,688 ) 7,257 80,681
Income tax benefit (expense) 26,758 (58,184 ) (6,781 ) - (38,207 ) 7,619 (2,876 ) - (33,464 ) 2,877 - (30,587 )
Net earnings (loss) 48,648 103,602 9,735 (113,337 ) 48,648 (14,151 ) 4,972 9,179 48,648 (5,811 ) 7,257 50,094
Less: Preferred stock dividends (9,723 ) - - - (9,723 ) - - - (9,723 ) - - (9,723 )
Earnings (loss) available to common shareholders $ 38,925 $ 103,602 $ 9,735 $ (113,337 ) $ 38,925 $ (14,151 ) $ 4,972 $ 9,179 $ 38,925 $ (5,811 ) $ 7,257 $ 40,371

(a) Balances for the nine months ended September 30, 2003
(b) Eliminate intercompany lease income
(c) Eliminate intercompany premiums
(d) Eliminate intercompany interest on debt
(e) Eliminate gain on sale of surplus property from U-Haul to SAC
(f) Eliminate equity earnings of subsidiaries

~~AMERCO AND CONSOLIDATED ENTITIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)~~

~~12. Consolidating cash flow statements~~balance sheets by industry segment ~~for the nine months ended December 31, 2004~~as of June 30, 2005 are as ~~follows:~~follows (continued):

Obligated Group AMERCO Legal Group AMERCO as Consolidated
Amerco U-Haul
Real
Estate
Eliminations
Obligated Group
Consolidated
Property and Casualty Insurance (a)
Life
Insurance (a)
Eliminations Amerco Consolidated SAC Moving and Storage Operations Eliminations Total Consolidated
(Unaudited)
(In thousands)
Cash flows from operating activities:
Earnings available to common shareholders $ 109,040 $ 115,444 $ 14,778 $ (130,222 ) $ 109,040 $ (5,687 ) $ 1,696 $ 3,991 $ 109,040 $ (828 ) $ 1,089 $ 109,301
Depreciation 24 77,086 6,453 - 83,563 - - - 83,563 1,887 (420 ) 85,030
Amortization of deferred policy acquisition costs - - - - - 6,016 19,946 - 25,962 - - 25,962
Provision for losses on accounts receivable - (149 ) - - (149 ) - - - (149 ) - - (149 )
Net (gain) loss on sale of real and personal property - 4,490 (3,306 ) - 1,184 - - - 1,184 - - 1,184
(Gain) loss on sale of investments - - - - - (3,404 ) (492 ) - (3,896 ) - - (3,896 )
Reductions in policy liabilities and accruals - 33,698 - - 33,698 (26,611 ) (9,369 ) - (2,282 ) - - (2,282 )
Capitalizations of deferred policy acquisition costs - - - - - (3,868 ) (5,013 ) - (8,881 ) - - (8,881 )
Net reduction in other operating assets and liabilities 89,387 (198,301 ) (14,671 ) 130,222 6,637 14,924 1,064 (3,991 ) 18,634 (486 ) (669 ) 17,479
Net cash provided by (used in) operating activities 198,451 32,268 3,254 - 233,973 (18,630 ) 7,832 - 223,175 573 - 223,748
Cash flows from investing activities:
Purchases of investments:
Property, plant and equipment - (169,981 ) (2,090 ) - (172,071 ) - - - (172,071 ) (420 ) - (172,491 )
Fixed maturities - - - - - (2,045 ) (82,227 ) - (84,272 ) - - (84,272 )
Common stock - - - - - - (6,765 ) - (6,765 ) - - (6,765 )
Mortgage loans - - - - - - (750 ) - (750 ) (750 )
Proceeds from sale of investments:
Property, plant and equipment - 225,305 2,506 - 227,811 - - - 227,811 - - 227,811
Fixed maturities - - - - - 31,759 82,085 - 113,844 - - 113,844
Preferred stock - - - - - - 3,811 - 3,811 - - 3,811
Real estate - - - - - 5,269 - - 5,269 - - 5,269
Mortgage loans - - - - - - 2,819 - 2,819 - - 2,819
Changes in other investments - - - - - (8,385 ) 42,144 - 33,759 - - 33,759
Net cash provided by (used in) investing activities - 55,324 416 - 55,740 26,598 41,117 - 123,455 (420 ) - 123,035
Cash flows from financial activities:
Borrowings from Credit Facilities 36,859 - - - 36,859 - - - 36,859 - - 36,859
Leverage Employee Stock Ownership Plan:
Repayments from loans 612 1,140 - - 1,752 - - - 1,752 - - 1,752
Principal Repayments on Credit Facilities (201,202 ) (215 ) - - (201,417 ) - - - (201,417 ) (847 ) - (202,264 )
Payoff of capital leases - (99,609 ) - - (99,609 ) - - - (99,609 ) - - (99,609 )
Dividends paid (25,297 ) - - - (25,297 ) - - - (25,297 ) - - (25,297 )
Investment contract deposits - - - - - - 19,587 - 19,587 - - 19,587
Investment contract withdrawals - - - - - - (79,142 ) - (79,142 ) - - (79,142 )
Net cash provided by (used in) financing activities (189,028 ) (98,684 ) - - (287,712 ) - (59,555 ) - (347,267 ) (847 ) - (348,114 )
Increase (decrease) in cash equivalents 9,423 (11,092 ) 3,670 - 2,001 7,968 (10,606 ) - (637 ) (694 ) - (1,331 )
Cash and cash equivalents at the beginning of period - 64,717 661 - 65,378 - 15,168 - 80,546 1,011 - 81,557
Cash and cash equivalents at the end of period $ 9,423 $ 53,625 $ 4,331 $ - $ 67,379 $ 7,968 $ 4,562 $ - $ 79,909 $ 317 $ - $ 80,226
(a) Balances for the nine months ended September 30, 2004

	Moving and Storage																AMERCO Legal Group											AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate		Eliminations					Moving and Storage Consolidated			Property and Casualty Insurance (a)			Life Insurance (a)			Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated
	(Unaudited)
	(In thousands)
Liabilities:
Accounts payable and accrued expenses	$	18,708		$	206,831		$	4,037	$	-				$	229,576		$	-		$	1,503		$	-				$	231,079		$	1,410		$	-				$	232,489
AMERCO's notes and loans payable		-			49,557			904,365		-					953,922			-			-			-					953,922			-			-					953,922
SAC Holding II Corporation notes and loans, payable, non-recourse to AMERCO		-			-			-		-					-			-			-			-					-			77,185			-					77,185
Policy benefits and losses, claims and loss expenses payable		-			267,727			-		-					267,727			379,652			160,870			-					808,249			-			-					808,249
Liabilities from investment contracts		-			-			-		-					-			-			491,473			-					491,473			-			-					491,473
Other policyholders' funds and liabilities		-			-			-		-					-			5,192			10,681			-					15,873			-			-					15,873
Deferred income		-			15,299			2		-					15,301			12,143			14,279			-					41,723			741			-					42,464
Deferred income taxes		169,258			-			-		-					169,258			(46,874	)		(2,142	)		-					120,242			(4,616	)		(27,143	)	(d	)		88,483
Related party liabilities		929,380			374,426			94,914		(1,328,487	)	(c	)		70,233			8,812			12,277			(91,322	)	(c	)		-			92,253			(81,482	)	(c	)		10,771
Total liabilities		1,117,346			913,840			1,003,318		(1,328,487	)				1,706,017			358,925			688,941			(91,322	)				2,662,561			166,973			(108,625	)				2,720,909
																																								\
Stockholders' equity:
Series preferred stock:
Series A preferred stock		-			-			-		-					-			-			-			-					-			-			-					-
Series B preferred stock		-			-			-		-					-			-			-			-					-			-			-					-
Series A common stock		929			-			-		-					929			-			-			-					929			-			-					929
Common stock		9,568			540			1		(541	)	(b	)		9,568			3,300			2,500			(5,800	)	(b	)		9,568			-			-					9,568
Additional paid in-capital		396,415			121,230			147,481		(268,711	)	(b	)		396,415			69,922			16,435			(86,357	)	(b	)		396,415			-			(46,071	)	(d	)		350,344
Accumulated other comprehensive income (loss)		(38,580	)		(35,314	)		-		35,314		(b	)		(38,580	)		1,692			(4,596	)		2,904		(b	)		(38,580	)		-			-					(38,580	)
Retained earnings		695,217			682,664			109,494		(792,158	)	(b	)		695,217			80,060			98,445			(178,505	)	(b	)		695,217			(14,099	)		22,345		(b,d	)		703,463
Cost of common shares in treasury, net		(418,092	)		-			-		-					(418,092	)		-			-			-					(418,092	)		-			-					(418,092	)
Unearned employee stock ownership plan shares		-			(10,453	)		-		-					(10,453	)		-			-			-					(10,453	)		-			-					(10,453	)
Total stockholders' equity		645,457			758,667			256,976		(1,026,096	)				635,004			154,974			112,784			(267,758	)				635,004			(14,099	)		(23,726	)				597,179

Total liabilities and stockholders' equity	$	1,762,803		$	1,672,507		$	1,260,294	$	(2,354,583	)			$	2,341,021		$	513,899		$	801,725		$	(359,080	)			$	3,297,565		$	152,874		$	(132,351	)			$	3,318,088

(a) Balances as of March 31, 2005

(b) Eliminate investment in subsidiaries and SAC Holding II

~~AMERCO AND CONSOLIDATED ENTITIES~~(d) Eliminate gain on sale of property from U-Haul to SAC Holding II

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (C~~~~ONTINUED)~~

~~12. Consolidating cash flow statements by industry segment for the nine months ended December 31, 2003 are as follows:~~

Obligated Group AMERCO Legal Group AMERCO as Consolidated
Amerco U-Haul
Real
Estate
Eliminations
Obligated Group
Consolidated
Property and Casualty Insurance (a)
Life
Insurance (a)
Eliminations Amerco Consolidated SAC Moving and Storage Operations Eliminations Total Consolidated
(Unaudited)
(In thousands)
Cash flows from operating activities:
Earnings available to common shareholders $ 38,925 $ 103,602 $ 9,735 $ (113,337 ) $ 38,925 $ (14,150 ) $ 4,972 $ 9,178 $ 38,925 $ (5,811 ) $ 7,257 $ 40,371
Depreciation 10 86,472 6,442 - 92,924 - - - 92,924 16,007 (1,446 ) 107,485
Amortization of deferred policy acquisition costs - - - - - 12,600 15,728 - 28,328 - - 28,328
Provision for losses on accounts receivable - 686 - - 686 - - - 686 - - 686
Net (gain) loss on sale of real and personal property - 7,221 (1,350 ) - 5,871 - - - 5,871 - - 5,871
(Gain) loss on sale of investments - - - - - (3,038 ) (365 ) - (3,403 ) - - (3,403 )
Reductions in policy liabilities and accruals - - - - - (34,442 ) (1,141 ) - (35,583 ) - - (35,583 )
Capitalizations of deferred policy acquisition costs - - - - - (5,095 ) (10,945 ) - (16,040 ) - - (16,040 )
Net reduction in other operating assets and liabilities 29,144 (82,169 ) (18,747 ) 113,337 41,565 (11,461 ) 3,549 (9,178 ) 24,475 (8,988 ) 5,932 21,419
Net cash provided by (used in) operating activities 68,079 115,812 (3,920 ) - 179,971 (55,586 ) 11,798 - 136,183 1,208 11,743 149,134
Cash flows from investing activities:
Purchases of investments:
Property, plant and equipment - (131,746 ) (2,061 ) - (133,807 ) - - - (133,807 ) (19,254 ) 5,717 (147,344 )
Fixed maturities - - - - - (5,358 ) (45,304 ) - (50,662 ) - - (50,662 )
Other asset investment - - - - - (31,223 ) (46,919 ) - (78,142 ) (29,508 ) 29,508 (78,142 )
Proceeds from sale of investments:
Property, plant and equipment - 20,797 6,023 - 26,820 - - - 26,820 43,331 (37,614 ) 32,537
Fixed maturities - - - - - 83,527 87,878 - 171,405 - - 171,405
Preferred stock - - - - - - - - - - - -
Real estate - - - - - - - - - - - -
Mortgage loans - 73 130 - 203 - - - 203 - - 203
Changes in other investments - - - - - - 28,534 - 28,534 - - 28,534
Net cash provided by (used in) investing activities - (110,876 ) 4,092 - (106,784 ) 46,946 24,189 - (35,649 ) (5,431 ) (2,389 ) (43,469 )
Cash flows from financial activities:
Net change in short-term borrowings 5,649 - - - 5,649 - - - 5,649 - - 5,649
Proceeds from notes 50,000 - - - 50,000 - - - 50,000 10,791 (10,791 ) 50,000
Leverage Employee Stock Ownership Plan:
Purchase of shares - - - - - - - - - - - -
Repayments from loan - 455 - - 455 - - - 455 - - 455
Principal payments on notes (50,000 ) - - - (50,000 ) - - - (50,000 ) (7,153 ) 1,437 (55,716 )
Dividends paid - - - - - - - - - - - -
Investment contract deposits - - - - - - 43,020 - 43,020 - - 43,020
Investment contract withdrawals - - - - - - (79,041 ) - (79,041 ) - - (79,041 )
Net cash provided by (used in) financing activities 5,649 455 - - 6,104 - (36,021 ) - (29,917 ) 3,638 (9,354 ) (35,633 )
Increase (decrease) in cash equivalents 73,728 5,391 172 - 79,291 (8,640 ) (34 ) - 70,617 (585 ) - 70,032
Cash and cash equivalents at the beginning of period 18,524 30,046 174 - 48,744 4,108 9,320 - 62,172 4,662 - 66,834
Cash and cash equivalents at the end of period $ 92,252 $ 35,437 $ 346 $ - $ 128,035 $ (4,532 ) $ 9,286 $ - $ 132,789 $ 4,077 $ - $ 136,866
(a) Balances for the nine months ended September 30, 2003

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~13. Industry Segment and Geographic Area DataGeographic Area Data -- All amounts~~9.Consolidating balance sheets by industry segment as of March 31, 2005 are ~~in U. S. $’s~~as follows:

United States

Canada

Consolidated

Quarter Ended

(Unaudited)
(All amounts are in thousands U.S. $'s)
As of and for the period ended, December 31, 2004

Total revenues $ 448,791 $ 11,736 $ 460,527
Depreciation / amortization, net 33,319 1,242 34,561
Interest expense / (income) 16,961 (30 ) 16,931
Pretax earnings (loss) 35,155 (454 ) 34,701
Income tax expense 13,155 - 13,155
Identifiable assets 3,109,869 72,916 3,182,785

United States

Canada

Consolidated

(All amounts are in thousands U.S. $'s)
As of and for the period ended, December 31, 2003

Total revenues $ 486,963 $ 15,620 $ 502,583
Depreciation / amortization, net 47,806 1,614 49,420
Interest expense 30,125 1,043 31,168
Pretax loss 31,947 251 32,198
Income tax benefit 10,531 - 10,531
Identifiable assets 3,034,276 139,948 3,174,224

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

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

(a) Balances as of December 31, 2004

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

(d) Eliminate intercompany receivables and payables

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

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - ~~(Continued)~~(Continued)

United States

Canada

Consolidated

Nine Months Ended

(Unaudited)
(All amounts are in thousands U.S. $'s)
As of and for the period ended, December 31, 2004

Total revenues $ 1,547,568 $ 42,218 $ 1,589,786
Depreciation / amortization, net 106,594 3,635 110,229
Interest expense / (income) 54,017 (22 ) 53,995
Pretax earnings 187,648 5,370 193,018
Income tax expense 73,994 - 73,994
Identifiable assets 3,109,869 72,916 3,182,785

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

United States

Canada

Consolidated

(All amounts are in thousands U.S. $'s)
As of and for the period ended, December 31, 2003

Total revenues $ 1,655,924 $ 54,232 $ 1,710,156
Depreciation / amortization, net 136,741 5,501 142,242
Interest expense 89,426 3,413 92,839
Pretax earnings 71,548 9,133 80,681
Income tax expense 30,587 - 30,587
Identifiable assets 3,034,276 139,948 3,174,224

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

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

(a) Balances as of December 31, 2004

(b) Eliminate investment in subsidiaries and SAC Holding II

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

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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

	Moving and Storage																	AMERCO Legal Group											AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Eliminations					Moving and Storage Consolidated			Property and Casualty Insurance (a)			Life Insurance (a)			Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated
	(Unaudited)
	(In thousands)
Revenues:
Self-moving equipment rentals	$	-		$	401,260		$	-		$	-				$	401,260		$	-		$	-		$	-				$	401,260		$	2,488		$	(2,488	)	(b	)	$	401,260
Self-storage revenues		-			23,793			455			-					24,248			-			-			-					24,248			4,520			-					28,768
Self-moving & self-storage products & service sales		-			61,798			-			-					61,798			-			-			-					61,798			4,765			-					66,563
Property management fees		-			5,168			-			-					5,168			-			-			-					5,168			-			(728	)	(g	)		4,440
Life insurance premiums		-			-			-			-					-			-			29,966			(377	)	(c	)		29,589			-			-					29,589
Property and casualty insurance premiums		-			-			-			-					-			4,824			-			-					4,824			-			-					4,824
Net investment and interest income		1,412			4,738			4			-					6,154			3,485			6,666			(998	)	(d	)		15,307			-			(1,593	)	(d	)		13,714
Other revenue		9			10,016			14,463			(15,553	)	(b	)		8,935			-			1,441			(185	)	(b	)		10,191			286			(177	)	(b	)		10,300
Total revenues		1,421			506,773			14,922			(15,553	)				507,563			8,309			38,073			(1,560	)				552,385			12,059			(4,986	)				559,458

Costs and expenses:
Operating expenses		3,397			266,275			1,591			(15,553	)	(b	)		255,710			2,400			7,388			(3,500	)	(b,c	)		261,998			5,522			(728	)	(b,c	)		266,792
Commission expenses		-			50,506			-			-					50,506			-			-			-					50,506			-			(2,488	)				48,018
Cost of sales		-			29,287			-			-					29,287			-			-			-					29,287			1,757			-					31,044
Benefits and losses		-			-			-			-					-			3,473			21,901			1,940					27,314			-			-					27,314
Amortization of deferred policy acquisition costs		-			-			-			-					-			854			5,344			-					6,198			-			-					6,198
Lease expense		19			33,436			17			-					33,472			-			-			-					33,472			-			(177	)	(b	)		33,295
Depreciation, net		7			31,517			2,124			-					33,648			-			-			-					33,648			729			(140	)	(e	)		34,237
Total costs and expenses		3,423			411,021			3,732			(15,553	)				402,623			6,727			34,633			(1,560	)				442,423			8,008			(3,533	)				446,898
Equity in earnings of subsidiaries		65,282			-			-			(61,817	)	(f	)		3,465			-			-			(3,465	)	(f	)		-			-			-					-
Equity in earnings of SAC Holdings II		560			-			-			-					560			-			-			-					560			-			(560	)	(f	)		-
Total - equity earnings of subsidiaries and SAC Holding II		65,842			-			-			(61,817	)				4,025			-			-			(3,465	)				560			-			(560	)				-
Earnings (losses) from operations		63,840			95,752			11,190			(61,817	)				108,965			1,582			3,440			(3,465	)				110,522			4,051			(2,013	)				112,560
Interest expense		11,148			678			6,273			-					18,099			-			-			-					18,099			3,130			(1,593	)	(d	)		19,636
Fees on early extinguishment of debt		35,627			-			-			-					35,627			-			-			-					35,627			-			-					35,627
Pretax earnings (loss)		17,065			95,074			4,917			(61,817	)				55,239			1,582			3,440			(3,465	)				56,796			921			(420	)				57,297
Income tax benefit (expense)		17,910			(36,073	)		(2,101	)		-					(20,264	)		(554	)		(1,003	)		-					(21,821	)		(361	)		(53	)				(22,235	)
Net earnings (loss)		34,975			59,001			2,816			(61,817	)				34,975			1,028			2,437			(3,465	)				34,975			560			(473	)				35,062
Less: Preferred stock dividends		(3,241	)		-			-			-					(3,241	)		-			-			-					(3,241	)		-			-					(3,241	)
Earnings (loss) available to common shareholders	$	31,734		$	59,001		$	2,816		$	(61,817	)			$	31,734		$	1,028		$	2,437		$	(3,465	)			$	31,734		$	560		$	(473	)			$	31,821

(a) Balances for the quarter ended March 31, 2005

(b) Eliminate intercompany lease income and commission income

(c ) Eliminate intercompany premiums

(d) Eliminate intercompany interest on debt

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

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

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

~~ITEM 2.~~AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9.Consolidating statements of operations by industry for the quarter ended June 30, 2004 are as follows:

	Moving and Storage																	AMERCO Legal Group											AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Eliminations					Moving and Storage Consolidated			Property and Casualty Insurance (a)			Life Insurance (a)			Eliminations					AMERCO Consolidated			SAC Holding II			Eliminations					Total Consolidated
	(Unaudited)
	(In thousands)
Revenues:
Self-Moving equipment rentals	$	-		$	389,663		$	79		$	-				$	389,742		$	-		$	-		$	-				$	389,742		$	2,409		$	(2,409	)	(b	)	$	389,742
Self-Storage revenues		-			25,642			668			-					26,310			-			-			-					26,310			4,265			-					30,575
Self-moving & self-storage products & service sales		-			57,012			15			-					57,027			-			-			-					57,027			4,337			-					61,364
Property management fees		-			3,654			-			-					3,654			-			-			-					3,654			-			(672	)	(g	)		2,982
Life insurance premiums		-			-			-			-					-			-			33,632			(373	)	(c	)		33,259			-			-					33,259
Property and casualty insurance premiums		-			-			-			-					-			9,802			-			-					9,802			-			-					9,802
Net investment and interest income		4,766			5,960			28			-					10,754			4,537			6,181			(2,193	)	(d	)		19,279			-			(1,703	)	(d	)		17,576
Other revenue		3			6,303			14,060			(15,477	)	(b	)		4,889			-			2,828			(158	)	(b	)		7,559			335			(249	)	(b	)		7,645
Total revenues		4,769			488,234			14,850			(15,477	)				492,376			14,339			42,641			(2,724	)				546,632			11,346			(5,033	)				552,945

Costs and expenses:
Operating expenses		6,771			269,728			2,030			(15,477	)	(b	)		263,052			575			8,271			(5,258	)	(b,c	)		266,640			5,943			(672	)	(g	)		271,911
Commission expenses		-			49,322			-			-					49,322			-			-			-					49,322			-			(2,409	)	(b	)		46,913
Cost of sales		-			26,008			8			-					26,016			-			-			-					26,016			1,724			-					27,740
Benefits and losses		-			-			-			-					-			10,028			24,109			2,534		(c	)		36,671			-			-					36,671
Amortization of deferred policy acquisition costs		-			-			-			-					-			3,370			6,588			-					9,958			-			-					9,958
Lease expense		22			40,739			23			-					40,784			-			-			-					40,784			-			(249	)	(b	)		40,535
Depreciation, net		7			26,465			1,079			-					27,551			-			-			-					27,551			618			(140	)	(e	)		28,029
Total costs and expenses		6,800			412,262			3,140			(15,477	)				406,725			13,973			38,968			(2,724	)				456,942			8,285			(3,470	)				461,757

Equity in earnings of subsidiaries		55,024			-			-			(52,416	)	(f	)		2,608			-			-			(2,608	)	(f	)		-			-			-					-
Equity in earnings of SAC Holding II		(123	)		-			-			-					(123	)		-			-			-					(123	)		-			123		(f	)		-
Total - equity earnings of subsidiaries and SAC Holding II		54,901			-			-			(52,416	)				2,485			-			-			(2,608	)				(123	)		-			123					-
Earnings (losses) from operations		52,870			75,972			11,710			(52,416	)				88,136			366			3,673			(2,608	)				89,567			3,061			(1,440	)				91,188
Interest expense		14,671			1,126			1,647			-					17,444			-			-			-					17,444			3,263			(1,703	)	(d	)		19,004
Pretax earnings (loss)		38,199			74,846			10,063			(52,416	)				70,692			366			3,673			(2,608	)				72,123			(202	)		263					72,184
Income tax benefit (expense)		6,133			(28,523	)		(3,970	)		-					(26,360	)		(128	)		(1,303	)		-					(27,791	)		79			(53	)				(27,765	)
Net earnings (loss)		44,332			46,323			6,093			(52,416	)				44,332			238			2,370			(2,608	)				44,332			(123	)		210					44,419
Less: Preferred stock dividends		(3,241	)		-			-			-					(3,241	)		-			-			-					(3,241	)		-			-					(3,241	)
Earnings (loss) available to common shareholders	$	41,091		$	46,323		$	6,093		$	(52,416	)			$	41,091		$	238		$	2,370		$	(2,608	)			$	41,091		$	(123	)	$	210				$	41,178

(a) Balances for the quarter ended March 31, 2004

(b) Eliminate intercompany lease income and commission income

(c ) Eliminate intercompany premiums

(d) Eliminate intercompany interest on debt

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

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

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

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9.Consolidating cash flow statements by industry segment for the quarter ended June 30, 2005 are as follows:

	Moving and Storage															AMERCO Legal Group												AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Elimination			Moving and Storage Consolidated			Property and Casualty Insurance (a)			Life Insurance (a)			Elimination			AMERCO Consolidated			SAC Holding II			Elimination			Total Consolidated
	(Unaudited)
Cash flows from operating activities:	(In thousands)
Net earnings (loss)	$	34,975		$	59,001		$	2,816		$	(61,817	)	$	34,975		$	1,028		$	2,437		$	(3,465	)	$	34,975		$	560		$	(473	)	$	35,062
Earnings from consolidated entities		(58,332	)		-			-			59,847			1,515			-			-			(2,075	)		(560	)		-			560			-
Depreciation		7			28,205			2,124			-			30,336			-			-			-			30,336			729			(140	)		30,925
Amortization of deferred policy acquisition costs		-			-			-			-			-			854			5,823			-			6,677			-			-			6,677
Provision for losses on accounts receivable		-			(601	)		-			-			(601	)		-			-			-			(601	)		-			-			(601	)
Net(gain)loss on sale of real and personal property		-			3,312			-			-			3,312			-			-			-			3,312			-			-			3,312
(Gain) loss on sale of investments		-			-			-			-			-			(192	)		(1,261	)		-			(1,453	)		-			-			(1,453	)
Deferred income taxes		10,843			-			-			-			10,843			74			1,461			-			12,378			357			53			12,788
Net change in other operating assets and liabilities																													-
Trade receivables		-			(8,009	)		(1	)		-			(8,010	)		6,423			(700	)		-			(2,287	)		-			-			(2,287	)
Inventories		-			(2,001	)		-			-			(2,001	)		-			-			-			(2,001	)		(245	)		-			(2,246	)
Prepaid expenses		2,804			(3,698	)		-			-			(894	)		-			-			-			(894	)		78			-			(816	)
Capitalization of deferred policy acquisition costs		-			-			-			-			-			(831	)		(1,677	)		-			(2,508	)		-			-			(2,508	)
Other assets		13,969			(11,191	)		(35,152	)		-			(32,374	)		434			2,886			-			(29,054	)		(407	)		-			(29,461	)
Related party assets		(28,369	)		(4,998	)		(8	)		19,013			(14,362	)		1,664			-			(720	)		(13,418	)		-			(395	)		(13,813	)
Accounts payable and accrued expenses		(4,571	)		21,460			1,301			-			18,190			-			-			5,540			23,730			409			-			24,139
Policy benefits and losses, claims and loss expenses payable		-			18,674			-			-			18,674			(11,728	)		(4,039	)		-			2,907			-			-			2,907
Other policyholder's funds and liabilities		-			-			-			-			-			(3,476	)		(10,052	)		-			(13,528	)		-			-			(13,528	)
Deferred income		-			3,583			-			-			3,583			-			-			-			3,583			138			-			3,721
Related party liabilities		-			18,513			-			(19,013	)		(500	)		(98	)		(858	)		636			(820	)		(694	)		395			(1,119	)
Net cash provided (used) by operating activities		(28,674	)		122,250			(28,920	)		(1,970	)		62,686			(5,848	)		(5,980	)		(84	)		50,774			925			-			51,699
Cash flows from investing activities:
Purchases of:
Property, plant and equipment		-			(74,231	)		(999	)		-			(75,230	)		-			-			-			(75,230	)		(207	)		-			(75,437	)
Short term investments		-			-			-			-			-			(55,390	)		-			-			(55,390	)		-			-			(55,390	)
Fixed maturities investments		-			-			-			-			-			(1,985	)		(82,232	)		-			(84,217	)		-			-			(84,217	)
Mortgage loans		-			-			-			-			-			-			(1,250	)		-			(1,250	)		-			-			(1,250	)
Proceeds from sales of:
Property, plant and equipment		-			15,140			5			-			15,145			-			-			-			15,145			-			-			15,145
Short term investments		-			-			-			-			-			43,775			50,953			-			94,728			-						94,728
Fixed maturities investments		-			-			-			-			-			15,590			45,203			-			60,793			-			-			60,793
Equity securities		-			-			-			-			-			-			5,759			-			5,759			-			-			5,759
Preferred stock		-			-			-			-			-			-			417			-			417			-			-			417
Other asset investments, net					872						-			872			-			-			-			872			-			-			872
Real estate		-			-			-			-			-			179			514			-			693			-			-			693
Mortgage loans		-			-			-			-			-			-			3,034			-			3,034			-			-			3,034
Notes and mortgage receivables		-			53			18			-			71			-			-			-			71			-			-			71
Net cash provided (used) by investing activities		-			(58,166	)		(976	)		-			(59,142	)		2,169			22,398			-			(34,575	)		(207	)		-			(34,782	)
(page 1 or 2)

(a) Balance for the quarter ended March 31, 2005

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	Moving and Storage														AMERCO Legal Group											AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Elimination		Moving and Storage Consolidated			Property and Casualty Insurance (a)			Life Insurance (a)			Elimination		AMERCO Consolidated			SAC Holding II			Elimination		Total Consolidated
	(Unaudited)
Cash flows from financing activities:	(In thousands)
Borrowings from credit facilities		80,266			49,557			904,365			-		1,034,188			-			-			-		1,034,188			-			-		1,034,188
Principal repayments on credit facilities		(860,274	)		-			-			-		(860,274	)		-			-			-		(860,274	)		(289	)		-		(860,563	)
Leveraged Employee Stock Ownership Plan - repayments from loan		-			438			-			-		438			-			-			-		438			-			-		438
Payoff of capital leases		-			-			-			-		-			-			-			-		-			-			-		-
Proceeds from (repayment of) intercompany notes payable		-			(84	)		-			-		(84	)		-			-			84		-			-			-		-
Proceeds from (repayment of) intercompany loans		813,882			64,466			(878,348	)		-		-			-			-			-		-			-			-		-
Preferred stock dividends paid		(3,241	)		-			-			-		(3,241	)		-			-			-		(3,241	)		-			-		(3,241	)
Investment contract deposits		-			-			-			-		-			-			5,670			-		5,670			-			-		5,670
Investment contract withdrawals		-			-			-			-		-			-			(17,896	)		-		(17,896	)		-			-		(17,896	)
Net cash provided by financing activities		30,633			114,377			26,017			-		171,027			-			(12,226	)		84		158,885			(289	)		-		158,596

Effect of exchange rate on cash		(1,970	)		(1,970	)		-			1,970		(1,970	)		-			-			-		(1,970	)		-			-		(1,970	)
Increase (decrease) in cash and cash equivalents		(11	)		176,491			(3,879	)		-		172,601			(3,679	)		4,192			-		173,114			429			-		173,543
Cash and cash equivalents at beginning of year		14			37,626			4,327			-		41,967			10,638			2,992			-		55,597			358			-		55,955
Cash and cash equivalents at end of year	$	3		$	214,117		$	448		$	-	$	214,568		$	6,959		$	7,184		$	-	$	228,711		$	787		$	-	$	229,498
(page 2 of 2)

(a) Balance for the quarter ended March 31, 2005

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9.Consolidating cash flow statements by industry segment for the quarter ended June 30, 2004 are as follows:

	Moving and Storage															AMERCO Legal Group												AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Elimination			Moving and Storage Consolidated			Property and Casualty Insurance (a)			Life Insurance (a)			Elimination			AMERCO Consolidated			SAC Holding II			Elimination			Total Consolidated
	(Unaudited)
Cash flows from operating activities:	(In thousands)
Net earnings (loss)	$	44,332		$	46,323		$	6,093		$	(52,416	)	$	44,332		$	238		$	2,370		$	(2,608	)	$	44,332		$	(123	)	$	210		$	44,419
Earnings from consolidated entities		(55,618	)		-			-			50,188			(5,430	)		-			-			5,553			123			-			(123	)		-
Depreciation		7			25,748			2,149			-			27,904			-			-			-			27,904			618			(140	)		28,382
Amortization of deferred policy acquisition costs		-			-			-			-			-			3,370			7,058			-			10,428			-			-			10,428
Provision for losses on accounts receivable		-			-			-			-			-			-			-			-			-			-			-			-
Net(gain)loss on sale of real and personal property		-			717			(1,070	)		-			(353	)		-			-			-			(353	)		-			-			(353	)
(Gain)loss on sale of investments		-			-			-			-			-			(173	)		(1	)		-			(174	)		-			-			(174	)
Deferred income taxes		27,555			-			-						27,555			1,528			593			-			29,676			(85	)		53			29,644
Net change in other operating assets and liabilities
Trade receivables		-			2,313			(1,466	)		-			847			19,266			(701	)		-			19,412			-			-			19,412
Inventories		-			(1,657	)		-			-			(1,657	)		-			-			-			(1,657	)		440			-			(1,217	)
Prepaid expenses		(4,875	)		(3,919	)		2			-			(8,792	)		-			-			-			(8,792	)		89			-			(8,703	)
Capitalization of deferred policy acquisition costs		-			-			-			-			-			(2,083	)		(1,520	)		-			(3,603	)		-			-			(3,603	)
Other assets		3,665			(40,304	)		(1,581	)		-			(38,220	)		1,157			370			-			(36,693	)		(339	)		-			(37,032	)
Related party assets		(25,767	)		(9,390	)		681			24,799			(9,677	)		1,802			-			(4,506	)		(12,381	)		-			146			(12,235	)
Accounts payable and accrued expenses		4,088			18,387			1,210			-			23,685			1,192			-			(2,945	)		21,932			1,184			-			23,116
Policy benefits and losses, claims and loss expenses payable		-			14,522			-			-			14,522			(43,034	)		(3,547	)		-			(32,059	)		-			-			(32,059	)
Other policyholder's funds and liabilities		-			-			-			-			-			(2,382	)		3,549			-			1,167			-			-			1,167
Deferred income		-			1,338			(34	)		-			1,304			-			-			-			1,304			28			-			1,332
Related party liabilities		(52	)		20,986			1			(24,799	)		(3,864	)		32			1,349			4,454			1,971			(1,753	)		(146	)		72
Net cash provided (used) by operating activities		(6,665	)		75,064			5,985			(2,228	)		72,156			(19,087	)		9,520			(52	)		62,537			59			-			62,596
Cash flows from investing activities:
Purchases of:
Property, plant and equipment		(5	)		(61,744	)		(434	)		-			(62,183	)		-			-			-			(62,183	)		(121	)		-			(62,304	)
Short term investments		-			-			-			-			-			(58,348	)		-			-			(58,348	)		-			-			(58,348	)
Fixed maturities investments		-			-			-			-			-			(551	)		(35,655	)		-			(36,206	)		-			-			(36,206	)
Mortgage loans		-			-			-			-			-			-			-			-			-			-			-			-
Proceeds from sales of:
Property, plant and equipment		-			182,694			1,525			-			184,219			-			-			-			184,219			-			-			184,219
Short term investments		-			-			-			-			-			56,777			-			-			56,777			-			-			56,777
Fixed maturities investments		-			-			-			-			-			19,292			19,801			-			39,093			-			-			39,093
Equity securities		-			-			-			-			-			37			-			-			37			-			-			37
Preferred stock		-			-			-			-			-			-			1,497			-			1,497			-			-			1,497
Other asset investments, net		-			-			-			-			-			-			17,219			-			17,219			-			-			17,219
Real estate		-			-			-			-			-			1,880			-			-			1,880			-			-			1,880
Mortgage loans		-			-			-			-			-			-			1,169			-			1,169			-			-			1,169
Notes and mortgage receivables		-			13			18			-			31			-			-			-			31			-			-			31
Net cash provided (used) by investing activities		(5	)		120,963			1,109			-			122,067			19,087			4,031			-			145,185			(121	)		-			145,064
(page 1 or 2)

(a) Balance for the quarter ended March 31, 2004

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

	Moving and Storage														AMERCO Legal Group										AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Elimination		Moving and Storage Consolidated			Property and Casualty Insurance (a)		Life Insurance (a)			Elimination		AMERCO Consolidated			SAC Holding II			Elimination		Total Consolidated
	(Unaudited)
Cash flows from financing activities:	(In thousands)
Borrowings from credit facilities		14,280			-			-			-		14,280			-		-			-		14,280			-			-		14,280
Principal repayments on credit facilities		(115,152	)		-			-			-		(115,152	)		-		-			-		(115,152	)		(265	)		-		(115,417	)
Leveraged Employee Stock Ownership Plan - repayments from loan		-			428			-			-		428			-		-			-		428			-			-		428
Payoff of capital leases		-			(99,607	)		-			-		(99,607	)		-		-			-		(99,607	)		-			-		(99,607	)
Proceeds from (repayment of) intercompany notes payable		(52	)		-			-			-		(52	)		-		-			52		-			-			-		-
Proceeds from (repayment of) intercompany loans		116,331			(110,434	)		(5,897	)		-		-			-		-			-		-			-			-		-
Preferred stock dividends paid		(6,482	)		-			-			-		(6,482	)		-		-			-		(6,482	)		-			-		(6,482	)
Investment contract deposits		-			-			-			-		-			-		6,923			-		6,923			-			-		6,923
Investment contract withdrawals		-			-			-			-		-			-		(33,943	)		-		(33,943	)		-			-		(33,943	)
Net cash provided by financing activities		8,925			(209,613	)		(5,897	)		-		(206,585	)		-		(27,020	)		52		(233,553	)		(265	)		-		(233,818	)

Effect of exchange rate on cash		(2,228	)		(2,228	)					2,228		(2,228	)									(2,228	)							(2,228	)
Increase (decrease) in cash and cash equivalents		27			(15,814	)		1,197			-		(14,590	)		-		(13,469	)		-		(28,059	)		(327	)		-		(28,386	)
Cash and cash equivalents at beginning of year		-			64,717			661			-		65,378			-		15,168			-		80,546			1,011			-		81,557
Cash and cash equivalents at end of year	$	27		$	48,903		$	1,858		$	-	$	50,788		$	-	$	1,699		$	-	$	52,487		$	684		$	-	$	53,171
(page 2 of 2)

(a) Balance for the quarter ended March 31, 2004

AMERCO AND CONSOLIDATED ENTITIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

10. Industry Segment and Geographic Area Data

	United States		Canada			Consolidated
	(Unaudited)
	(All amounts are in thousands U.S. $'s)
Quarter Ended June 30, 2005
Total revenues	$	545,077	$	14,381		$	559,458
Depreciation and amortization, net		38,804		1,631			40,435
Interest expense (benefit)		19,640		(4	)		19,636
Pretax earnings		54,428		2,869			57,297
Income tax expense		22,235		-			22,235
Identifiable assets		3,239,636		78,452			3,318,088

Quarter Ended June 30, 2004
Total revenues	$	538,522	$	14,423		$	552,945
Depreciation and amortization, net		36,786		1,201			37,987
Interest expense (benefit)		19,006		(2	)		19,004
Pretax earnings		69,303		2,881			72,184
Income tax expense		27,765		-			27,765
Identifiable assets		3,158,729		70,870			3,229,599

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

~~Cautionary Statements Regarding Forward-Looking Statements~~

This Quarterly Report on Form 10-Q contains forward-looking statements. We may make additional written or oral forward-looking statements from time to time in filings with the Securities and Exchange Commission or otherwise. We believe such forward-looking statements are within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, projections of revenues, income or loss, estimates of capital expenditures, plans for future operations, products or services, financing needs and plans, our perceptions of our legal positions and anticipated outcomes of government investigations and pending litigation against us, liquidity, goals and strategies, plans for new business, growth rate assumptions, pricing, costs, a nd access to capital and leasing markets as well as assumptions relating to the foregoing. The words “believe,” “expect,” “anticipate,” “estimate,” “project” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could significantly affect results include, without limitation, the risk factors enumerated at the end of this section, as well as the following: the Company’s ability to operate pursuant to the terms of its credit facilities; the Company’s ability to maintain contracts that are critical to its operations; the costs and availability of financing; the Company’s ability to execute its business plan; the Company’s ability to attract, motivate and retain key employees; general economic conditions; fluctuations in our cos ts to maintain and update our fleet and facilities; our ability to refinance our debt; changes in government regulations, particularly environmental regulations; our credit ratings; the availability of credit; changes in demand for our products; changes in the general domestic economy; degree and nature of our competition; the resolution of pending litigation and government investigations involving the Company; changes in accounting standards and other factors described in this report or the other documents we file with the Securities and Exchange Commission. The above factors, the following disclosures, as well as other statements in this report and in the Notes to our Condensed Consolidated Financial Statements, could contribute to or cause such differences, or could cause our stock price to fluctuate dramatically. Consequently, the forward-looking statements should not be regarded as representations or warranties by the Company that such matters will be realized. The Company disclaims any intent or obliga tion to update or revise any of the forward-looking statements, whether in response to new information, unforeseen events, changed circumstances or otherwise.

General

We begin Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) with ~~a description of our operating segments. This is followed by a review of~~ the overall strategy of AMERCO, ~~and a discussion of the Critical Accounting Policies and Estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results. This is~~ followed by a ~~discussion~~description of our business segments and the strategy of our business segments to give the reader an overview of the goals of our business and the direction in which our ~~business~~businesses and products are moving. This is followed by a discussion of the Critical Accounting Estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results. In the next section, we discuss our Results of Operations for the ~~third~~first quarter ~~and nine months~~ ending ~~December 31, 2004~~June 30, 2005 compared with the same ~~periods~~period last ~~year.~~year beginning with an overview. We then provide an analysis of changes in our ~~ba lance~~balance sheet and cash flows, and discuss our ~~liquidity and~~ financial commitments in the sections entitled “Liquidity and Capital Resources” and “Disclosures about Contractual Obligations and Commercial Commitments.” We conclude this MD&A by discussing our outlook for the remainder of fiscal ~~year 2005.~~2006.

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

~~Description of Operating Segments~~Overall

AMERCO has three reportable segments and five identifiable segments. The three reportable segments are Moving and Self-Storage, Property and Casualty Insurance and Life Insurance. The five identifiable segments are AMERCO, U-Haul International, Amerco Real Estate, Republic Western Insurance, and Oxford Life Insurance.U-Haul moving and storage, Real Estate, and SAC moving and storage, are listed under Moving and Self-Storage, since they meet the aggregation criteria of FASB 131.

~~Overall~~ Strategy

Our ~~plan~~overall strategy is to maintain our leadership position in the North American “do-it-yourself” moving and storage industry. ~~Our overall strategy is~~We plan to ~~provide~~accomplish this by providing a seamless and integrated supply chain to the “do-it-yourself” moving and storage market. As part of executing this strategy, we leverage the brand recognition of U-Haul with our full line of moving and self-storage related products and services and the convenience of our broad geographic presence.

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

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

During ~~fiscal year 2004,~~2003, RepWest decided to focus its activities on providing and administering property and casualty insurance to U-Haul, its customers, ~~and~~ its independent dealers and affiliates. We believe this will enable RepWest to focus its core competencies and financial resources to better support our overall ~~strategy. This shift~~strategy by exiting its non-U-Haul lines ofbusiness.

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

Description of Operating Segments

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

Moving and Storage Operating Segment

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

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

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

eMove is an online marketplace that connects consumers to over 5,000 independent sellers of moving help and self-storage services. Our network of customer rated service providers and affiliates provides pack and load help, self-storage and more all over North America. A phone access system was launched in ~~near term losses~~September 2004 and has already serviced over 28,000 customers in less than nine months.

An individual or a company can connect to the eMove network by becoming a Moving Help® Service Provider or an eMove Storage Affiliate. Moving Help providers assist customers with packing, loading, cleaning and unloading their truck or storage unit. The Storage Affiliate program enables independent self-storage facilities to expand their reach by connecting into eMove and U-Haul’s moving and storage reservation system and for a fee, receive an array of services including web-based management software, S.O.A.R® rentals, co-branded rental trucks, savings on insurance, credit card processing and more. Over 2,800 facilities are now registered on the eMove network.

With over 43,000 unedited reviews of service providers, the marketplace has facilitated over 60,000 moving and storage transactions all over North America. We believe that acting as an intermediary, with little added investment, serves the customer in a cost effective manner. Our goal is to further utilize our web-based technology platform to increase service to consumers and businesses in the moving and storage market.

Property and Casualty Insurance Operating Segment

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

Life Insurance Operating Segment

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

SAC Holdings Operating Segment

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

Critical Accounting Policies and Estimates

The methods, estimates and judgments we use in applying our accounting policies can have a significant impact on the results we report in our financial statements. ~~Some of our~~Accounting policies are considered critical when they are significant and involve difficult, subjective or complex judgments or estimates. Certain accounting policies require us to make difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The accounting ~~estimates~~policies that we deem most critical to us and that require management’s most difficult and subjective judgments include our principles of consolidation, the recoverability of property, plant and equipment, the adequacy of insurance reserves, and the ~~valuation~~recognition and measurement of ~~investments. Below, we~~impairments for investments, and the recognition and measurement of income tax assets and liabilities.

We discuss these policies further in the following sections, as well as the estimates and judgments that are involved. The estimates are based on historical experience, observance of trends in particular areas, information and valuations available ~~f rom~~from outside sources and on various other assumptions that are believed to be reasonable under the circumstances and which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts may differ from these estimates under different assumptions and conditions. Such differences may be material.

Accounting policies are considered critical when they are significant and involve difficult, subjective or complex judgments or estimates. The accounting policies that we deem most critical to us, and involve the most difficult, subjective or complex judgments include the following:

Principles of Consolidation

The condensed consolidated financial statements for the ~~third quarter and~~ first ~~nine months~~quarters of fiscal ~~year~~2006 and fiscal 2005 and the balance sheet as of March 31, ~~2004 includes~~2005, include the accounts of AMERCO, its wholly owned subsidiaries and SAC Holding II Corporation and its ~~subsidiaries (“SAC Holding II”).~~

subsidiaries.

In fiscal 2003 and fiscal 2002, SAC Holding Corporation and SAC Holding II (together, ~~the~~ “SAC ~~entities”~~Holdings”) were considered special purpose entities and were consolidated based on the provisions of Emerging Issues Task Force (EITF) Issue No. 90-15. For fiscal 2003, AMERCO reported consolidated revenue of $216.8 million, a net loss of $8.7 million, assets of $990 million, and liabilities and shareholder’s equity of $1,035.1 million and $(45.1) million, respectively, for SAC Holding Corporation and its subsidiaries and SAC Holding II.

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

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

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

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

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

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

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

Recoverability of Property, Plant and Equipment

Property, plant and equipment is stated at cost. Interest cost incurred during the initial construction of buildings or rental equipment is considered part of cost. Depreciation is computed for financial reporting purposes principally using the straight-line method over the following estimated useful lives: rental equipment 2-20 years and buildings and non-rental equipment 3-55 years. Major overhauls to rental equipment are capitalized and are amortized over the estimated period benefited. Routine maintenance costs are charged to operating expense as they are incurred. Gains and losses on dispositions of property, plant and equipment are netted against depreciation expense when realized. Depreciation is recognized in amounts expected to result in the recovery of estimated residual values upon disposal, i.e., no ~~ga ins~~gains or losses. During the first quarter of fiscal year 2005, the Company lowered its estimates for residual values on rental trucks purchased off leases from 25% of the original cost to 20%. In determining the depreciation rate, historical disposal experience, holding periods and trends in the market for vehicles are reviewed. Since this change in estimated residual values will be applied prospectively we do not anticipate any significant increases in depreciation expense from this change for the current fiscal year.

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

Insurance Reserves

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

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

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

Investments

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

Key Accounting Policies

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

~~Business Segment Strategy~~Results of Operations

AMERCO and Consolidated Entities

~~Moving and~~Quarter Ended June 30, 200~~Self-Storage~~5 compared with the Quarter Ended June 30, 2004

U-Haul moving and self-storage operations consist of the rental of trucks, trailers and self-storage spaces and sales of moving supplies, trailer hitches and propane to the “do-it-yourself” mover. OperationsListed below on a consolidated basis are ~~conducted under the registered trade name U-Haul® throughout the United States and Canada.~~

Real Estate owns approximately 90 percent of the Company’s real estate assets, including U-Haul Center and Storage locations. The remaining real estate assets are owned by other subsidiaries. Real Estate is responsible for overseeing major property repairs and dispositions and managing the environmental risks of the properties.

~~We continue to focus on expanding our dealer network, which provides added convenience~~revenues for our ~~customers, while expanding the selection and availability of rental equipment to satisfy the growing demands of our customers.~~

~~With respect to our retail sales of~~major product U-Haul has developed a number of specialty packing boxes, “Mover's Wrap” and Smart Move tape. Mover’s Wrap is a sticks-to-itself plastic stretch wrap used to bind, bundle, and fasten items when moving or storing. Additionally, U-Haul has added a full line of Smart Move tape products. The Smart Move tape is a color coded packing tape that has the room printed right on it allowing you to tape and label your belongings in one quick step.

eMove is an online marketplace that connects consumers to independent customer rated moving and storage service providers who provide pack and load help, self-storage, driving help and more. With over 28,000 unedited reviews of service providers, the marketplace has facilitated over 50,000 moving and storage transactions. Another eMove service is the Storage Affiliate program. It targets independently owned self-storage facilities to connect into the eMove network to provide more customers with storage services. Over 2,400 self-storage facilities have expanded their reach by registering on the eMove network. We believe that acting as an intermediary, with little added investment, serves the customer in a cost effective manner. Within two years of its inception, eMove has established itself as the only online de stination in the “do-it-yourself” moving and storage industry that connects consumers to service providers all across North America. Our goal is to further utilize our web-based technology platform to further penetrate this market.

~~Republic Western Insurance Company~~

Republic Western Insurance Company (RepWest) provides loss adjusting and claims handling for U-Haul through regional offices across North America. RepWest also provides components of the Safemove, Safetow and Safestor protection packages to U-Haul customers. We continue to focus on increasing the penetration of these products. The business plan for RepWest includes offering property and casualty products in other U-Haul related programs. During the past year RepWest has commuted numerous assumed reinsurance treaties to eliminate the risk of further development on these treaties.

For additional information about RepWest, reference is made to the section on “Risk Factors” under the title “RepWest has consented to an Order of Supervision issued by the Arizona Department of Insurance”.

~~For the period ended September 30, 2004, RepWest’s non-seasonal work force consisted of 260 full and part-time employees.~~

~~Oxford~~~~Life Insurance Company~~

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

~~For the period ended September30, 2004, Oxford’s non-seasonal work force consisted of 132 full and part-time employees.~~

~~Results of Operations~~

Quarter Ended December 31,

Changes

Changes

2004

2003

Dollar

Percentage

AMERCO and Consolidated Entities
(In thousands)
Rental revenue $ 365,131 $ 386,456 $ (21,325 ) -6 %
Net sales 42,620 47,212 (4,592 ) -10 %
Premiums 34,634 56,088 (21,454 ) -38 %
Net investment and interest income 18,142 12,827 5,315 41 %
Total revenues 460,527 502,583 (42,056 ) -8 %

Operating expenses 287,962 307,378 (19,416 ) -6 %
Restructuring expenses - 7,613 (7,613 ) -100 %
Commission expenses 39,243 31,136 8,107 26 %
Cost of sales 21,361 23,908 (2,547 ) -11 %
Benefits and losses 38,603 50,956 (12,353 ) -24 %
Amortization of deferred policy acquisition costs 6,279 11,027 (4,748 ) -43 %
Lease expense 38,506 33,202 5,304 16 %
Depreciation, net (a) 28,282 38,393 (10,111 ) -26 %
Total costs and expenses 460,236 503,613 (43,377 ) -9 %
Earnings (losses) from operations 291 (1,030 ) 1,321 -128 %
Interest expense 16,931 31,168 (14,237 ) -46 %
Litigation settlement received 51,341 - 51,341 100 %
Pretax earnings (loss) 34,701 (32,198 ) 66,899 -208 %
Income tax benefit (expense) (13,155 ) 10,531 (23,686 ) -225 %
Net earnings (loss) 21,546 (21,667 ) 43,213 -199 %
Less: Preferred stock dividends 3,241 3,241 - 0 %
Earnings available to common shareholders $ 18,305 $ (24,908 ) $ 43,213 -173 %

~~(a) Depreciation is shown net of (gain)/losses on the disposal of fixed assets:~~

Quarter Ended December 31,

2004

2003

(Unaudited)
(In thousands)
Depreciation expense $ 28,575 $ 37,811
(Gain)/Loss on disposals (293 ) 582
Depreciation, net $ 28,282 $ 38,393

Nine Months Ended December 31,

Changes

Changes

2004

2003

Dollar

Percentage

AMERCO and Consolidated Entities
(In thousands)
Rental revenue $ 1,262,335 $ 1,304,470 $ (42,135 ) -3 %
Net sales 161,683 182,048 (20,365 ) -11 %
Premiums 115,516 188,024 (72,508 ) -39 %
Net investment and interest income 50,252 35,614 14,638 41 %
Total revenues 1,589,786 1,710,156 (120,370 ) -7 %

Operating expenses 848,621 907,695 (59,074 ) -7 %
Restructuring expenses - 12,027 (12,027 ) -100 %
Commission expenses 138,064 116,132 21,932 19 %
Cost of sales 77,617 87,023 (9,406 ) -11 %
Benefits and losses 104,194 169,801 (65,607 ) -39 %
Amortization of deferred policy acquisition costs 24,015 28,886 (4,871 ) -17 %
Lease expense 115,389 101,716 13,673 13 %
Depreciation, net (a) 86,214 113,356 (27,142 ) -24 %
Total costs and expenses 1,394,114 1,536,636 (142,522 ) -9 %
Earnings from operations 195,672 173,520 22,152 13 %
Interest expense 53,995 92,839 (38,844 ) -42 %
Litigation settlement received 51,341 - 51,341 100 %
Pretax earnings 193,018 80,681 112,337 139 %
Income tax benefit (expense) (73,994 ) (30,587 ) (43,407 ) 142 %
Net earnings 119,024 50,094 68,930 138 %
Less: Preferred stock dividends 9,723 9,723 - 0 %
Earnings available to common shareholders $ 109,301 $ 40,371 $ 68,930 171 %

~~(a) Depreciation is shown net of (gains)/losses on the disposal of fixed assets:~~

Nine Months Ended December 31,

2004

2003

(Unaudited)
(In thousands)
Depreciation expense $ 85,030 $ 107,485
Loss on disposals 1,184 5,871
Depreciation, net $ 86,214 $ 113,356

~~Quarters Ended - December 31, 2004 versus December 31, 2003~~

~~AMERCO and its consolidated entities reported revenues of $460.5 million~~lines for the ~~third~~first quarter of fiscal ~~year 2005. This compares with revenues of $502.6 million for~~2006 and the ~~third~~first quarter of fiscal ~~year 2004.~~ 2005:

	Quarter Ended June 30,
	2005		2004
	(unaudited)
	(In thousands)
Self-moving equipment rentals	$	401,260	$	389,742
Self-storage revenues		28,768		30,575
Self-moving and self-storage products and service sales		66,563		61,364
Property management fees		4,440		2,982
Life insurance premiums		29,589		33,259
Property and casualty insurance premiums		4,824		9,802
Net investment and interest income		13,714		17,576
Other revenue		10,300		7,645
Consolidated revenue	$	559,458	$	552,945

During the first quarter of ~~this year, we sold 78 self-storage properties~~fiscal 2006, self-moving equipment rentals increased $11.5 million through steady increases in transaction volume, modest price increases and improved mix of trucks. Storage revenues at Company owned locations increased for the first quarter of fiscal 2006 compared to ~~U.H. Storage DE,~~fiscal 2005 as a ~~W.P.~~result of increase in the number of rooms available for rent, higher occupancy rates and modest price increases. These gains were offset by reductions in storage revenues resulting from the W. P. Carey ~~affiliate (See Footnote 9~~Transactions (see note 3 to the “Notes to the Condensed Consolidated Financial Statements” for a more detailed discussion of the ~~W.P.~~W. P. Carey ~~Transaction)~~Transactions). ~~This reduced storage revenues approximately $8.1~~Sales of self-moving and self-storage related products and services increased $5.2 million following our growth in ~~the third quarter of fiscal year 2005, compared with the third quarter of last year. Moving~~moving equipment ~~rentals and storage revenues at U-Haul, adjusted for the effect~~rental revenues. Property management fees increased $1.5 million as a result of the W.P. Carey Transaction, increased approximately 4% in the third quarter of fiscal year 2005, compared with the same period a year ago. Also, we deconsolidated 281 SAC Holding Corporation s torage properties during the fourth quarter of last year, and they are excluded from our fiscal year 2005 results. Included in the third quarter of last year were $26.5 million of revenues for these deconsolidated properties. Revenues at Transactions.

RepWest ~~were $16.6 million lower in the third quarter of this year compared with the same period a year ago. This decline reflects the impact of our strategy~~continued to exit ~~unprofitable~~ non U-Haul related lines of ~~business. At Oxford, revenue decreased in the third quarter by 8%,~~business and as a result, its premium revenues declined approximately $5.0 million. Oxford’s premium revenues declined approximately $3.7 million primarily as a result of the lingering effects of its rating downgrade by ~~A. M.~~A.M. Best in 2003.

~~Earnings~~As a result of the items mentioned above, revenues for AMERCO and its consolidated entities were $559.5 million for the first quarter of fiscal 2006, compared with $552.9 million for the first quarter of fiscal 2005.

Listed below are revenues and earnings from operations ~~were $0.3~~at each of our four operating segments for the first quarter of fiscal 2006 and the first quarter of fiscal 2005:

	Quarter Ended June 30,
	2005			2004
	(unaudited)
	(In thousands)
Moving and storage
Revenues	$	507,563		$	492,376
Earnings from operations		108,965			88,136
Property and casualty insurance
Revenues		8,309			14,339
Earnings from operations		1,582			366
Life insurance
Revenues		38,073			42,641
Earnings from operations		3,440			3,673
SAC Holding II
Revenues		12,059			11,346
Earnings from operations		4,051			3,061
Eliminations
Revenues		(6,546	)		(7,757	)
Earnings from operations		(5,478	)		(4,048	)

Consolidated Results
Revenues		559,458			552,945
Earnings from operations		112,560			91,188

Total costs and expenses fell by $14.9 million primarily as a result of reduced equipment-related and lease expenses, professional fees, and decreased risk exposure at the insurance subsidiaries. The decrease in total expenses was partially offset by increased depreciation expense, commissions and cost of sales resulting from higher revenues.

As a result of the above mentioned changes in revenues and expenses, earnings from operations improved to $112.6 million in the ~~third~~first quarter of fiscal ~~year 2005~~2006 compared with ~~a loss of $1.0~~$91.2 million for the ~~same period last year. Earnings from operations, at U-Haul were $3.7 million in the third~~first quarter of fiscal ~~year~~ 2005. This reflects an increase of $14.1 million, compared with the third quarter of fiscal year 2004, and is attributable to stronger truck and trailer rentals and to the timing of recognizing current year insurance expense to better match revenues with expenses. Losses from operations at Oxford were $3.4 million in the third quarter of this year, compared with earnings of $4.4 million in the third quarter of last year. The decrease is primarily due to the accrual for the Kocher litigation (see Footnote 10 for a more complete discussion of this loss contingency) as well as the continuing slow down in premiums resulting from lost distributions following Oxford’s rating downgrade by A. M. Best in 2003. At RepWest, the run-off of our non-U-Haul insurance business is progressing as planned. Losses related to the hurricanes that hit the southeastern U. S. of approximately $8.5 million, before taxes, were charged to earnings during the third quarter. As a result, losses from operations at RepWest were $9.2 million in the third quarter of this year, compared with a loss from operations of $7.4 million for the same period last year.

Interest expense for the ~~third~~first quarter of fiscal ~~year 2005~~2006 was ~~$16.9~~$55.3 million. ~~This compares~~In addition, AMERCO recorded in the first quarter of fiscal 2006 a one-time, nonrecurring charge of $35.6 million related to the early termination of existing indebtedness, which is consistent with ~~$31.2~~$19.0 million in the ~~third~~first quarter of fiscal year 2004. The reduction in interest expense is due to the deconsolidation of SAC Holding Corporation, lower borrowings and lower borrowing costs. During the third quarter of fiscal year 2005, the Company settled its litigation against its former auditor and received a settlement (net of attorney’s fees and costs) of $51.3 million before taxes.The settlement had the effect of increasing, on a non-recurring basis, net earnings and earnings per share for the quarter ended December 31, 2004 by $32.5 million and $1.56, respectively. The Company does not expect to obtain any material sett lement or recovery in any other pending litigation matter.2005.

Income tax expense was ~~$13.2~~$22.2 million in the ~~third~~first quarter of fiscal ~~year 2005~~2006 compared with ~~a benefit of $10.5~~$27.8 million in ~~the third~~first quarter of fiscal ~~year 2004,~~2005 and reflects ~~higher~~lower pretax earnings ~~before taxes. Preferred~~for the first quarter of fiscal 2006.

Dividends accrued on our Series A preferred stock ~~dividends~~ were ~~unchanged, at~~ $3.2 million ~~for both periods.~~ in first quarter of fiscal 2006, unchanged from the first quarter of fiscal 2005.

As a result of the above mentioned items, net ~~income~~earnings available to common shareholders ~~was $18.3~~fell to $31.8 million in the ~~third~~first quarter of fiscal ~~year 2005,~~2006, compared with ~~a loss~~$41.2 million in the first quarter of ~~$24.9 million~~fiscal 2005.

The weighted average number of basic and diluted shares outstanding were 20,836,458 in first quarter of fiscal 2006 and were 20,788,074 in the first quarter of fiscal 2005.

Basic and diluted earnings per share in the first quarter of fiscal 2006 were $1.53, compared with $1.98 for the same period last year. ~~Earnings per share were $0.88 in~~

Moving and Storage

Listed below are revenues for the ~~third~~major product lines at our Moving and Storage operating segment (AMERCO, U-Haul International, Inc. and Amerco Real Estate) for the first quarter of fiscal ~~year 2005, compared with a loss per share~~2006 and the first quarter of ~~$1.20 for the same period last year.~~fiscal 2005:

	Quarter Ended June 30,
	2005		2004
	(unaudited)
	(In thousands)
Self-moving equipment rentals	$	401,260	$	389,742
Self-storage revenues		24,248		26,310
Self-moving and self-storage products and service sales		61,798		57,027
Property management fees		5,168		3,654
Net investment and interest income		6,154		10,754
Other revenue		8,935		4,889
Segment revenue	$	507,563	$	492,376

~~Nine months Ended -~~ ~~December 31, 2004 versus December 31, 2003~~

~~AMERCO~~During the first quarter of fiscal 2006, self-moving equipment rentals increased $11.5 million through steady increases in transaction volume, modest price increases and ~~its consolidated entities reported~~improved mix of trucks. Storage revenues ~~of $1,589.8 million~~at Company owned locations increased for the first ~~nine months~~quarter of fiscal ~~year 2005. This compares with revenues~~2006 compared to fiscal 2005 as a result of $1,710.2 million for the first nine months of fiscal year 2004. As previously mentioned, we deconsolidated 281 SAC Holding Corporation storage properties during the fourth quarter of last year, and they are excluded from our fiscal year 2005 results. Includedincrease in the ~~first nine months~~number of ~~last year~~rooms available for rent, higher occupancy rates and modest price increases. These gains were ~~$78.1 million of revenues for these deconsolidated properties. The W.P. Carey transaction had the effect of reducing~~offset by reductions in storage revenues ~~approximately $23.5 million in~~resulting from the ~~first nine months of fiscal year 2005. Moving equipment rentals and storage revenues at U-Haul, adjusted~~W. P. Carey Transactions (see note 3 to the “Notes to the Condensed Consolidated Financial Statements” for ~~the effect~~a more detailed discussion of the W. P. Carey ~~Transaction,~~Transactions). Sales of self-moving and self-storage related products and services increased ~~approximately 5%~~$4.8 million following our growth in moving equipment rental revenues. Property management fees increased $1.5 million as a result of the W.P. Carey Transactions.

Total costs and expenses decreased $4.1 million in first ~~nine months~~quarter of fiscal ~~year 2005,~~2006, compared with ~~the same period a year ago. Revenues at RepWest were $61.5 million lower for the~~ first ~~nine months~~quarter of 2004, compared with the same period a year ago. This decline reflects the impact of its strategy to exit unprofitable non U-Haul lines of business. At Oxford, revenue decreased 10% for the first nine months of 2004,fiscal 2005. Expenses fell primarily as a result of ~~the lingering effects of its rating downgrade by A. M. Best in 2003.~~

Earnings from operations were $195.7 million for the first nine months of fiscal year 2005, compared with $173.5 million for the same period last year. Earnings from operations, at U-Haul, were $172.7 million for the first nine months of fiscal year 2005. This reflects an improvement of $19.0 million, or 12%, compared with the same period last yearreduced equipment-related and ~~is attributable to strong truck~~lease expenses, and storage rentals, along with increased fleet productivity. Earnings from operations at Oxford were $2.7 million for the first nine months of 2004, compared with $7.8 million for the same period last year.professional fees. The decrease ~~is due primarily to the accrual for the Kocher litigation,~~in total expenses was partially offset by ~~improved investment income,~~increased depreciation expenses, commissions and ~~positive loss experience in the Medicare supplement and credit insurance segments. At RepWest, the run- off~~cost of ~~our non-U-Haul insurance business is progressing as planned. Including the above mentioned charges related to hurricane losses in the third quarter, losses~~sales resulting from ~~operations at RepWest were $8.7 million in the first nine months of 2004, compared with $21.8 million for the same period last year.~~higher revenues.

Interest expense for the first nine months of fiscal year 2005 was $54.0 million. This compares with $92.8 million in the same period last year. The reduction in interest expense is due to the deconsolidation of SAC Holding Corporation, lower borrowings and lower borrowing costs. Litigation settlement proceeds were $51.3 million, as mentioned above. Income tax expense was $74.0 million for the first nine months of fiscal year 2005, compared with $30.6 million in the same period last year, and reflects higher earnings before taxes. Preferred stock dividends were unchanged, at $9.7 million for both periods. As a result of the above mentioned ~~items, net income available~~changes in revenues and expenses, earnings from operations increased to ~~common shareholders was $109.3~~$109.0 million in first quarter of fiscal 2006, compared with $88.1 million for ~~the~~ first ~~nine months~~quarter of fiscal ~~year 2005, compared with $40.4 million for the same period last year . Earnings per share were $5.25 for the first nine months of fiscal year~~ 2005.

~~Moving and Self-Storage~~U-Haul International, Inc.

~~The following tables set forth net revenue and certain consolidated statements of income data~~Listed below are revenues for the ~~periods indicated:~~

Quarter Ended December 31,

Changes

Changes

2004

2003

Dollar

Percentage

U-Haul International
(In thousands)
Rental revenue $ 362,427 $ 356,803 $ 5,624 2 %
Net sales 39,404 36,655 2,749 7 %
Net investment and interest income 5,270 6,908 (1,638 ) -24 %
Total revenues 407,101 400,366 6,735 2 %

Operating expenses 276,504 283,936 (7,432 ) -3 %
Commission expenses 41,286 38,123 3,163 8 %
Cost of sales 19,254 19,684 (430 ) -2 %
Lease expense 38,656 36,224 2,432 7 %
Depreciation, net (a) 27,725 32,799 (5,074 ) -15 %
Total costs and expense 403,425 410,766 (7,341 ) -2 %
Earnings (losses) from operations 3,676 (10,400 ) 14,076 -135 %
Interest expense, net (6,354 ) (2,868 ) (3,486 ) 122 %
Pretax earnings (loss) 10,030 (7,532 ) 17,562 -233 %
Income tax benefit (expense) (3,665 ) 3,238 (6,903 ) -213 %
Net earnings (loss) $ 6,365 $ (4,294 ) $ 10,659 -248 %

~~(a) Depreciation is shown net of (gains)/losses on the disposal of fixed assets:~~

Quarter Ended December 31,

2004

2003

(Unaudited)
(In thousands)
Depreciation expense $ 25,937 $ 30,992
Loss on disposals 1,788 1,807
Depreciation, net $ 27,725 $ 32,799

Nine Months Ended December 31,

Changes

Changes

2004

2003

Dollar

Percentage

U-Haul International
(In thousands)
Rental revenue $ 1,253,643 $ 1,220,036 $ 33,607 3 %
Net sales 149,844 142,375 7,469 5 %
Net investment and interest income 16,569 22,740 (6,171 ) -27 %
Total revenues 1,420,056 1,385,151 34,905 3 %

Operating expenses 832,195 817,768 14,427 2 %
Commission expenses 145,233 139,065 6,168 4 %
Cost of sales 72,489 70,099 2,390 3 %
Lease expense 115,823 110,758 5,065 5 %
Depreciation, net (a) 81,576 93,693 (12,117 ) -13 %
Total costs and expense 1,247,316 1,231,383 15,933 1 %
Earnings from operations 172,740 153,768 18,972 12 %
Interest expense, net (13,258 ) (8,018 ) (5,240 ) 65 %
Pretax earnings 185,998 161,786 24,212 15 %
Income tax benefit (expense) (70,554 ) (58,184 ) (12,370 ) 21 %
Net earnings $ 115,444 $ 103,602 $ 11,842 11 %

~~(a) Depreciation is shown net of (gains)/losses on the disposal of fixed assets:~~

Nine Months Ended December 31,

2004

2003

(Unaudited)
(In thousands)
Depreciation expense $ 77,086 $ 86,472
Loss on disposals 4,490 7,221
Depreciation, net $ 81,576 $ 93,693

Quarter Ended December 31,

Changes

Changes

2004

2003

Dollar

Percentage

SAC Holdings *
(In thousands)
Rental revenue $ 6,875 $ 43,257 $ (36,382 ) -84 %
Net sales 3,231 10,542 (7,311 ) -69 %
Total revenues 10,106 53,799 (43,693 ) -81 %

Operating expenses 5,226 24,926 (19,700 ) -79 %
Cost of sales 2,115 4,219 (2,104 ) -50 %
Depreciation, net 627 5,147 (4,520 ) -88 %
Total costs and expenses 7,968 34,292 (26,324 ) -77 %
Earnings from operations 2,138 19,507 (17,369 ) -89 %
Interest expense 3,710 20,052 (16,342 ) -81 %
Pretax income (loss) (1,572 ) (545 ) (1,027 ) -188 %
Income tax benefit 667 761 (94 ) -12 %
Net earnings (loss) $ (905 ) $ 216 $ (1,121 ) 519 %

* SAC Holdings II for quarter ended December 2004 and SAC Holdings I & II for 2003

Nine Months Ended December 31,

Changes

Changes

2004

2003

Dollar

Percentage

SAC Holdings *
(In thousands)
Rental revenue $ 21,389 $ 127,415 $ (106,026 ) -83 %
Net sales 11,839 39,621 (27,782 ) -70 %
Total revenues 33,228 167,036 (133,808 ) -80 %

Operating expenses 16,615 81,541 (64,926 ) -80 %
Cost of sales 5,128 16,903 (11,775 ) -70 %
Depreciation, net 1,887 16,007 (14,120 ) -88 %
Total costs and expenses 23,630 114,451 (90,821 ) -79 %
Earnings from operations 9,598 52,585 (42,987 ) -82 %
Interest expense 10,941 61,273 (50,332 ) -82 %
Pretax loss (1,343 ) (8,688 ) 7,345 85 %
Income tax benefit 515 2,877 (2,362 ) -82 %
Net earnings (loss) $ (828 ) $ (5,811 ) $ 4,983 86 %

* SAC Holdings II for nine months ended December 2004 and SAC Holdings I & II for 2003

Quarter Ended December 31,

Changes

Changes

2004

2003

Dollar

Percentage

Amerco Real Estate
(In thousands)
Rental revenue $ 14,136 $ 15,404 $ (1,268 ) -8 %
Net sales (15 ) 15 (30 ) -200 %
Net investment and interest income 22 2,017 (1,995 ) -99 %
Total revenues 14,143 17,436 (3,293 ) -19 %

Operating expenses 1,657 1,972 (315 ) -16 %
Cost of sales (8 ) 5 (13 ) -260 %
Lease expense 4 124 (120 ) -97 %
Depreciation, net (a) 63 926 (863 ) -93 %
Total costs and expenses 1,716 3,027 (1,311 ) -43 %
Earnings from operations 12,427 14,409 (1,982 ) -14 %
Interest expense 4,013 8,127 (4,114 ) -51 %
Pretax earnings 8,414 6,282 2,132 34 %
Income tax expense (3,298 ) (2,557 ) (741 ) 29 %
Net earnings $ 5,116 $ 3,725 $ 1,391 37 %

~~(a) Depreciation is shown net of (gains)/losses on the disposal of fixed assets:~~

Quarter Ended December 31,

2004

2003

(Unaudited)
(In thousands)
Depreciation expense $ 2,144 2,151
Gain on disposals (2,081 ) (1,225 )
Depreciation, net $ 63 926

Nine Months Ended December 31,

Changes

Changes

2004

2003

Dollar

Percentage

Amerco Real Estate
(In thousands)
Rental revenue $ 43,499 $ 45,544 $ (2,045 ) -4 %
Net sales - 52 (52 ) -100 %
Net investment and interest income 76 6,012 (5,936 ) -99 %
Total revenues 43,575 51,608 (8,033 ) -16 %

Operating expenses 5,304 5,615 (311 ) -6 %
Cost of sales - 21 (21 ) -100 %
Lease expense 31 399 (368 ) -92 %
Depreciation, net (a) 3,147 5,092 (1,945 ) -38 %
Total costs and expenses 8,482 11,127 (2,645 ) -24 %
Earnings from operations 35,093 40,481 (5,388 ) -13 %
Interest expense 10,637 23,965 (13,328 ) -56 %
Pretax earnings 24,456 16,516 7,940 48 %
Income tax expense (9,678 ) (6,781 ) (2,897 ) 43 %
Net earnings $ 14,778 $ 9,735 $ 5,043 52 %

~~(a) Depreciation is shown net of (gains)/losses on the disposal of fixed assets:~~

Nine Months Ended December 31,

2004

2003

(Unaudited)
(In thousands)
Depreciation expense $ 6,453 6,442
Gain on disposals (3,306 ) (1,350 )
Depreciation, net $ 3,147 5,092

~~Quarters Ended - December 31, 2004 versus December 31, 2003~~

~~Rental revenues~~major product lines at U-Haul ~~were $362.4 million~~International, Inc. for the ~~third~~first quarter of fiscal ~~year 2005 compared with $356.8~~2006 and the first quarter of fiscal 2005:

	Quarter Ended June 30,
	2005		2004
	(unaudited)
	(In thousands)
Self-moving equipment rentals	$	401,260	$	389,663
Self-storage revenues		23,793		25,642
Self-moving and self-storage products and service sales		61,798		57,012
Property management fees		5,168		3,654
Net investment and interest income		4,738		5,960
Other revenue		10,016		6,303
U-Haul International, Inc. revenue	$	506,773	$	488,234

During first quarter of fiscal 2006, self-moving equipment rentals increased $11.6 million through steady increases in transaction volume, modest price increases and improved mix of trucks. Storage revenues at Company owned locations increased for the ~~same period last year. This represents an~~first quarter of fiscal 2006 compared to fiscal 2005 as a result of increase in the number of ~~$5.6 million, or 2%,~~rooms available for rent, higher occupancy rates and ~~was driven~~modest price increases. These gains were offset by ~~a combination of factors, including increased equipment rentals, better price realization and product mix, net of lower~~reductions in storage revenues resulting from the ~~sale of property pursuant~~W. P. Carey Transactions (see note 3 to the ~~W.P. Carey Transaction. Moving equipment rentals and storage revenues at U-Haul, adjusted~~“Notes to the Condensed Consolidated Financial Statements” for ~~the effect~~a more detailed discussion of the W. P. Carey ~~Transaction, increased approximately 4% in the third quarter~~Transactions). Sales of fiscal year 2005, compared with the same period a year ago. Rental revenues at the SAC entities were $6.9 million for the third quarter of fiscal year 2005, compared with $43.3 million for the same period last year. This repres ents a reduction of $36.4 million, or 84%, and reflects the deconsolidation of SAC Holding Corporation. Rental revenues at Real Estate were $14.1 million for the third quarter of fiscal year 2005 and $15.4 million for the same period last year.

~~Net sales of moving~~self-moving and self-storage related products and services ~~at U-Haul were $39.4~~increased $4.8 million ~~for the third quarter of fiscal year 2005, compared with $36.7~~following our growth in moving equipment rental revenues. Property management fees increased $1.5 million for the same period last year. This represents an increase of $2.7 million, or 7%, and was driven by increased rental activity and improved pricing. Net sales of moving and self-storage related products and services at the SAC entities were $3.2 million for the third quarter of fiscal year 2005, compared with $10.5 million for the same period last year. This represents a reduction of $7.3 million, and reflects the deconsolidation of SAC Holding Corporation.

Net investment and interest income at U-Haul was $5.3 million for the third quarter of fiscal year 2005, compared with $6.9 million for the same period last year. The reduction in interest income is directly related to lower average investment balances in SAC Holdings notes. Net investment and interest income at Real Estate decreased $2.0 million in the third quarter of fiscal year 2005, compared with the same period last year. The reduction in interest income is directly related to lower investments in mortgage notes, which decreased as a result ~~of lower investment balances in SAC Holdings notes.~~

Operating expenses at U-Haul were $276.5 million for the third quarter of fiscal year 2005, compared with $283.9 million for the same period last year. This represents a decrease of $7.4 million, or 3%, and was the result of lower insurance expense due to a change in the method of allocating annual expenses to better match revenues, higher payroll, maintenance and other expenses. Operating expenses at the consolidated SAC entities were $5.2 million for the third quarter of fiscal year 2005, compared with $24.9 million for the same period last year. This represents a reduction of $19.7 million, and reflects the deconsolidation of SAC Holding Corporation. Operating expenses at Real Estate were $1.7 million for the third quarter of fiscal year 2005, compared with $2.0 million for the same period last year.

Dealer commissions at U-Haul were $41.3 million for the third quarter of fiscal year 2005, compared with $38.1 million for the same period last year. This represents an increase of $3.2 million, or 8%, and was driven by increased equipment rentals at our independent dealers.

Lease expense at U-Haul was $38.7 million for the third quarter of fiscal year 2005, compared with $36.2 million for the same period last year. This represents an increase of $2.5 million, or 7%, and reflects an increase in the amount of rental equipment we leased.

Depreciation expense at U-Haul was $27.7 million for the third quarter of fiscal year 2005, compared with $32.8 million for the same period last year. Depreciation expense at SAC Holdings was $0.6 million during the third quarter of fiscal year 2005, compared with $5.1 million for the same period last year. This represents a reduction of $4.5 million and reflects the deconsolidation of SAC Holding Corporation. Depreciation expense at Real Estate was $0.8 million less than last year due to better gains on asset disposals.

Earnings from operations at U-Haul were $3.7 million during the third quarter of fiscal year 2005, compared with a loss of $10.4 million for the same period last year. This represents an increase of $14.1 million, compared with the third quarter of fiscal year 2004, and is attributable to stronger truck and trailer rentals and to the timing of recognizing current year insurance expense to better match revenues with expenses. Earnings from operations at SAC Holdings were $2.1 million in the third quarter of fiscal year 2005, compared with $19.5 million for the same period last year. This represents a reduction of $17.4 million, and reflects the deconsolidation of SAC Holding Corporation. Earnings from operations at Real Estate were $12.4 million during the third quarter of fiscal year 2005, compared with $14.4 m illion for the same period last year. This represents a reduction of $2.0 million, and reflects lower interest income from investments in mortgage notes, partially offset by gains on real estate sales.

~~Nine months Ended - December 31, 2004 versus December 31, 2003~~

Rental revenues at U-Haul were $1,253.6 million for the first nine months of fiscal year 2005, compared with $1,220.0 million for the same period last year. This represents an increase of $33.6 million, or 3%, and was driven by a combination of factors, including increased equipment rentals, better price realization and product mix, net of lower storage revenues resulting from the sale of property pursuant to the W. P. Carey Transaction. Moving equipment rentals and storage revenues at U-Haul, adjusted for the effect of the W. P. Carey ~~Transaction,~~Transactions.

Total costs and expenses fell by $1.2 million primarily as a result of reduced equipment-related and lease expenses, and professional fees. The decrease in total expenses was partially offset by increased ~~approximately 5%~~depreciation expense, commissions and cost of sales resulting from higher revenues.

As a result of the above mentioned changes in revenues and expenses, earnings from operations increased to $95.8 million in the first ~~nine months~~quarter of fiscal ~~year 2005,~~2006, compared with $76.0 million in the ~~same period a year ago. Rental~~first quarter of fiscal 2005.

Republic Western Insurance Company

Premium revenues ~~at the SAC entities~~ were ~~$21.4~~$4.8 million and $9.8 million for the first ~~nine months of fiscal year~~quarters ended March 31, 2005 ~~compared~~and 2004, respectively. The overall decrease is due to RepWest exiting lines not associated with ~~$127.4 million for~~ the ~~same period l ast year. This represents a reduction of $106.0~~Self-Storage or Self-Moving industries. Self-Storage and Self-Moving industry premiums were $3.9 million and ~~reflects the deconsolidation of SAC Holding Corporation. Rental revenues at Real Estate were $43.5~~$4.0 million for the first ~~nine months~~quarters of ~~fiscal year~~ 2005 and ~~$45.5~~2004, respectively. Other lines of business were $0.9 million ~~for the same period last year.~~

~~Net sales of moving~~ and ~~self-storage related products and services at U-Haul were $149.8~~$5.8 million for the first ~~nine months~~quarters of ~~fiscal year~~ 2005 ~~compared with $142.4~~and 2004, respectively.

Net investment income was $3.5 million ~~for the same period last year. This represents an increase of $7.4 million, or 5%,~~ and ~~was driven by increased rental activity and improved pricing. Net sales of moving and self-storage related products and services at the SAC entities were $11.8~~$4.5 million for the first ~~nine months~~quarters of ~~fiscal year~~ 2005 ~~compared with $39.6 million for the same period last year. This represents~~and 2004, respectively. The reduction was due to a ~~reduction of $27.8~~decrease in our invested asset base.

Benefits and losses incurred were $3.5 million and ~~reflects the deconsolidation of SAC Holding Corporation.~~

~~Net investment and interest income at U-Haul was $16.6~~$10.0 million for the first ~~nine months~~quarters of ~~fiscal year~~ 2005 ~~compared with $22.7~~and 2004, respectively. The decrease resulted from reduced earned premiums resulting from RepWest’s decision to exit its non Self-Storage and Self-Moving industry business.

Amortization of deferred acquisition costs was $0.9 million and $3.4 million for the ~~same period last year.~~first quarters of 2005 and 2004, respectively. The decrease is due to decreased premium writings. The decrease is due to a reduction ~~in interest income is directly~~of in-force business related to ~~lower average investment balances in SAC Holdings notes. Net investment and interest income at Real Estate was $5.9 million lower for~~ the ~~first nine months~~exit of ~~fiscal year 2005, compared with the same period last year. The reduction in interest income is directly~~non U-Haul related ~~to lower investments in mortgage notes, which decreased as a result of lower investment balances in SAC Holdings notes.~~business.

Operating expenses ~~at U-Haul~~ were ~~$832.2~~$2.4 million and $0.6 million for the first ~~nine months~~quarters of ~~fiscal year~~ 2005 ~~compared with $817.8 million~~and 2004, respectively. The increase is due to reduced capitalization of commissions in 2005 as well as a reduction in policy service fees in 2005. Inter-company policy service fees from U-Haul are recorded net against operating expenses. The reduction in these fees collected is the primary reason for the ~~same period last year. This represents an~~ increase ~~of $14.4~~in operating expenses.

Pretax earnings from operations were $1.6 million ~~or 2%,~~ and was the result of increases in payroll and equipment maintenance, partially offset by lower other operating costs. Increases in payroll and maintenance were driven by increases in volume and inflation. Operating expenses at the consolidated SAC entities were $16.6$0.4 million for the first ~~nine months~~quarters of ~~fiscal year~~ 2005 ~~compared with $81.5 million for~~and 2004, respectively. The increase over 2004 is the ~~same period last year. This represents a reduction~~result of ~~$64.9 million, and reflects~~ the ~~deconsolidation~~elimination of ~~SAC Holding Corporation. Operating expenses at Real Estate were $5.3 million for the first nine months of fiscal year 2005, compared with $5.6 milli on for the same period last year.~~unprofitable programs.

Dealer commissions at U-Haul were $145.2 million for the first nine months of fiscal year 2005, compared with $139.1 million for the same period last year. This represents an increase of $6.1 million, or 4%, and was driven by increased equipment rentals at our independent dealers.

Lease expense at U-Haul was $115.8 million for the first nine months of fiscal year 2005, compared with $110.8 million for the same period last year. This represents an increase of $5.0 million, or 5%, and reflects an increase in the amount of rental equipment we leased.

Depreciation expense at U-Haul was $81.6 million for the first nine months of fiscal year 2005, compared with $93.7 million for the same period last year. Depreciation expense at SAC Holdings was $1.9 million during the first nine months of fiscal year 2005, compared with $16.0 million for the same period last year. This represents a reduction of $14.1 million and reflects the deconsolidation of SAC Holding Corporation. Depreciation expense at Real Estate was $3.1 million during the first nine months of fiscal year 2005, compared with $5.1 million for the same period last year, and includes a gain of $3.3 million from asset disposals this year.

Earnings from operations at U-Haul were $172.7 million during the first nine months of fiscal year 2005, compared with $153.8 for the same period million last year. This represents an increase of $18.9 million, or 12%, and reflects strong truck and storage rentals during the first nine months of fiscal 2005, which along with increased fleet productivity, were major contributors to the increase in operating profitability at U-Haul. Earnings from operations at SAC Holdings were $9.6 million in the first nine months of fiscal year 2005, compared with $52.6 million for the same period last year. This represents a reduction of $43.0 million, and reflects the deconsolidation of SAC Holding Corporation. Earnings from operations at Real Estate were $35.1 million during the first nine months of fiscal year 2005, compare d with $40.5 million for the same period last year. This represents a reduction of $5.4 million, and reflects lower interest income from investments in mortgage notes, partially offset by gains on real estate sales.Oxford Life Insurance Company

~~Oxford Life Insurance Company~~Quarter Ended March 31, 2005

~~The following table sets forth net revenue and certain consolidated statements of income data for~~ compared with the ~~periods indicated:~~

Quarter Ended September 30,

Changes

Changes

2004

2003

Dollar

Percentage

Life Insurance
(In thousands)
Premiums $ 31,603 $ 36,427 $ (4,824 ) -13 %
Net investment income 6,299 4,743 1,556 33 %
Total revenue 37,902 41,170 (3,268 ) -8 %
Operating expenses 12,656 6,020 6,636 110 %
Benefits and losses 22,683 24,359 (1,676 ) -7 %
Amortization of deferred policy acquisition costs 6,003 6,351 (348 ) -5 %
Total expenses 41,342 36,730 4,612 13 %
Earnings (loss) from operations (3,440 ) 4,440 (7,880 ) -177 %
Income tax benefit (loss) 1,119 (2,058 ) 3,177 -154 %
Net earnings (loss) $ (2,321 ) $ 2,382 $ (4,703 ) -197 %
Quarter Ended March 31, 2004

Net premiums were ~~$31.6~~$30.0 million, ~~and $36.4~~$33.6 million for the quarters ended ~~September 30,~~March 31, 2005 and 2004, ~~and 2003,~~ respectively. Medicare supplement premiums decreased by ~~$2.1~~$1.4 million from 2004 due to lapses on closed lines being greater than new business written on active lines. Credit insurance premiums decreased ~~$1.8~~$1.6 million ~~for the quarter~~from 2004 due to fewer accounts. We are no longer pursuing growth in credit insurance. Life, other health, and annuity premiums decreased ~~$0.9 million.~~$0.6 million from 2004 primarily from reduced life insurance sales and fewer annuitizations. Other income decreased by $1.4 million primarily due to a decrease in surrender charge income.

Net investment income was ~~$6.3~~$6.7 million and ~~$4.7~~$6.2 million for the first quarters ~~ended September 30,~~of 2005 and 2004, ~~and 2003,~~ respectively. The increase was primarily due ~~primarily~~ to ~~fewer realized losses and more realized gains.~~a positive variance in capital gains offset by a lower balance of invested assets.

Benefits incurred were ~~$22.7~~$21.9 million and ~~$24.4~~$24.1 million for the first quarters ~~ended September 30,~~of 2005 and 2004, ~~and 2003,~~ respectively. Medicare supplement ~~incurred claims~~benefits decreased ~~$0.9~~$0.6 million from 2004 due primarily to reduced exposure. Credit insurance benefits decreased $0.6 million from 2004 due to reduced exposure. ~~Other~~Annuity insurance benefits decreased $0.7 million from 2004. All other lines had decreases totaling ~~$0.2 million.~~$0.3 million from 2004.

Amortization of deferred acquisition costs (DAC) and the value of business acquired (VOBA) was ~~$6.0~~$5.3 million and ~~$6.4~~$6.6 million for the first quarters ~~ended September 30,~~of 2005 and 2004, and 2003, respectively. These costs are amortized for life and health policies as the premium is earned over the term of the policy; and for deferred annuities, amortized in relation to interest spreads. Amortization associated with credit insurance lines decreased $0.5 million due to decreased new business volume. Other segments had net increases of $0.1 million.

Operating expenses were $12.7 million and $6.0 million for the quarters ended September 30, 2004 and 2003. Oxford accrued for loss contingencies related to the Kocher litigation in the quarter, which accounted for the majority of the variance from the prior year.

Earnings (loss) from operations was $(3.4) million and $4.4 for the quarters ended September 30, 2004 and 2003, respectively. The decrease from 2003 is due primarily to the accrual for the Kocher litigation.

Nine Months Ended September 30,

Changes

Changes

2004

2003

Dollar

Percentage

Life Insurance
(In thousands)
Premiums $ 97,640 $ 112,852 $ (15,212 ) -13 %
Net investment income 17,960 15,420 2,540 16 %
Total revenue 115,600 128,272 (12,672 ) -10 %
Operating expenses 23,907 23,173 734 3 %
Benefits and losses 70,377 80,207 (9,830 ) -12 %
Amortization of deferred policy acquisition costs 18,586 17,044 1,542 9 %
Total expenses 112,870 120,424 (7,554 ) -6 %
Earnings from operations 2,730 7,848 (5,118 ) -65 %
Income tax expense 1,033 2,876 (1,843 ) -64 %
Net earnings $ 1,697 $ 4,972 $ (3,275 ) -66 %

Net premiums were $97.6 million and $112.9 million for the nine months ended September 30, 2004 and 2003, respectively. Medicare supplement premiums decreased by $6.5 million due to lapses on closed lines being greater than new business written on active lines. Credit insurance premiums decreased $5.0 million due to fewer accounts. Life, other health, and annuity premiums decreased $3.8 million as a result of fewer sales and annuitizations.

Net investment income was $18.0 million and $15.4 million for the nine months ended September 30, 2004 and 2003, respectively. The increase was primarily due to interest received from the maturity of certain investments, fewer realized losses and more realized gains.

Benefits incurred were $70.4 million and $80.2 million for the nine months ended September 30, 2004 and 2003, respectively. Medicare supplement benefits decreased $5.3 million due primarily to reduced exposure. Credit insurance benefits decreased $2.3 million due to reduced exposure and improved disability experience. All other lines had decreases of $2.2 million.

~~Amortization of deferred acquisition costs (DAC) and the value of business acquired (VOBA) was $18.6 million and $17.0 million for the nine months ended September 30, 2004 and 2003,~~ respectively. These costs are amortized for life and health policies as the premium is earned over the term of the policy; and for deferred annuities in relation to interest spreads. Annuity amortization ~~increased $3.0~~decreased $0.9 million from ~~2003~~2004 primarily due to ~~increased~~reduced surrender activity. Other segments, primarily credit, had decreases of ~~$1.4~~$0.4 million from ~~2003~~2004 due to decreased new business volume.

Operating expenses were ~~$23.9~~$7.4 million and ~~$23.2~~$8.3 million for the ~~nine months ended September 30,~~first quarters of 2005 and 2004, ~~and 2003,~~ respectively. The ~~above mentioned accrual related~~decrease is attributable to ~~the Kocher litigation net of reductions in non-deferrable~~lower legal costs as well as reduced overhead. Non-deferrable commissions ~~as a result of decreased~~fell $0.4 million from 2004 primarily due to lower sales of credit and Medicare supplement ~~and life products, accounted for this variance.~~products.

Earnings from operations were ~~$2.7~~$3.4 million and $7.8 for the nine months ended September 30, 2004 and 2003, respectively. The decrease from 2003 is due primarily to the accrual for the Kocher litigation offset by improved investment income, and positive loss experience in the Medicare supplement and credit insurance segments.

~~Republic Western Insurance Company~~

~~The following table sets forth net revenue and certain consolidated statements of income data for the periods indicated:~~

Quarter Ended September 30,

Changes

Changes

2004

2003

Dollar

Percentage

Property and Casualty Insurance
(In thousands)
Premiums $ 3,975 $ 20,106 $ (16,131 ) -80 %
Net investment income 6,827 7,258 (431 ) -6 %
Total revenues 10,802 27,364 (16,562 ) -61 %
Operating expenses 3,824 3,460 364 11 %
Benefits and losses 15,920 26,597 (10,677 ) -40 %
Amortization of deferred policy acquisition costs 276 4,676 (4,400 ) -94 %
Total expenses 20,020 34,733 (14,713 ) -42 %
Loss from operations (9,218 ) (7,369 ) (1,849 ) 25 %
Income tax benefit 3,219 2,573 646 25 %
Net earnings (loss) $ (5,999 ) $ (4,796 ) $ (1,203 ) 25 %

Premium revenues were $4.0 million and $20.1 million for the quarters ended September 30, 2004 and 2003, respectively. The decrease in 2004 is the result of RepWest shifting its operating focus away from non-affiliated and unprofitable lines of business.

Net investment income was $6.8 million and $7.3 million for the quarters ended September 30, 2004 and 2003, respectively. The decrease in 2004 is attributable to RepWest exiting non U-Haul lines which resulted in an overall decrease in invested assets. This reduction will continue until reserves associated from the exited lines are run-off. This decrease was offset by the realization of $3.1 million in deferred gains in the third quarter of 2004 from the sale of two real estate properties.

Benefits and losses incurred were $15.9 million and $26.6 million for the quarters ended September 30, 2004 and 2003, respectively. The decrease in 2004 is due to RepWest terminating its non U-Haul related programs. In the third quarter of 2004, RepWest incurred approximately $8.5 million in losses on its mobile home business as the result of the hurricanes that hit the southeastern United States.

~~Net operating expenses, which are offset by claims handling fees, were $3.8 million and $3.5 million for the quarters ended September 30, 2004 and 2003, respectively.~~

Losses from operations were $9.2 million and $7.4 million for the quarters ended September 30, 2004 and 2003, respectively. The loss in 2004 is due to the approximately $8.5 million in losses on the hurricanes that hit the southeastern United States primarily in the third quarter of 2004.

Nine Months Ended September 30,

Changes

Changes

2004

2003

Dollar

Percentage

Property and Casualty Insurance
(In thousands)
Premiums $ 20,815 $ 78,247 $ (57,432 ) -73 %
Net investment income 15,063 19,180 (4,117 ) -21 %
Total revenues 35,878 97,427 (61,549 ) -63 %
Operating expenses 5,381 17,761 (12,380 ) -70 %
Benefits and losses 33,817 89,594 (55,777 ) -62 %
Amortization of deferred policy acquisition costs 5,429 11,842 (6,413 ) -54 %
Total expenses 44,627 119,197 (74,570 ) -63 %
Loss from operations (8,749 ) (21,770 ) 13,021 -60 %
Income tax benefit 3,062 7,619 (4,557 ) -60 %
Net earnings (loss) $ (5,687 ) $ (14,151 ) $ 8,464 -60 %

Premium revenues were $20.8 million and $78.2 million for the nine months ended September 30, 2004 and 2003, respectively. The decrease in 2004 is the result of RepWest shifting its operating focus away from non-affiliated and unprofitable lines of business. Premiums from terminated programs were $2.8 million and $58.5 million for the nine months ended September 30, 2004 and 2003, respectively.

Net investment income was $15.1 million and $19.2 million for the nine months ended September 30, 2004 and 2003, respectively. The decrease in 2004 is attributable to RepWest exiting non U-Haul lines which resulted in an overall decrease in invested assets. This reduction will continue until reserves associated from these exited lines are run-off. This decrease was offset by the realization of $3.1 million in deferred gains in the third quarter of 2004 from the sale of two real estate properties.

Benefits and losses incurred were $33.8 million and $89.6 million for the nine months ended September 30, 2004 and 2003, respectively. The decrease in 2004 is primarily due to RepWest terminating its non U-Haul related programs. However, the decrease was offset in the third quarter of 2004 when RepWest incurred approximately $8.5 million in losses on its mobile home business as the result of the hurricanes that hit the southeastern United States.

Operating expenses, which are offset by claims handling fees, were $5.4 million and $17.8 million for the nine months ended September 30, 2004 and 2003, respectively. The reduction in 2004 is due to decreased commissions and reduced general and administrative expenses.

Losses from operations were $8.7 million and $21.8 million for the nine months ended September 30, 2004 and 2003, respectively. The decrease from 2004 is the result of the elimination of unprofitable programs, offset by losses incurred on the hurricanes that hit the southeastern United States in the third quarter of 2004.

~~Liquidity and Capital Resources~~

Our financial condition remains strong. At December 31, 2004, cash and short-term investments totaled $80.2 million, compared with $81.6 million at March 31, 2004. Total short-term and long-term debt was $696.0 million and represented 1.1 times stockholders’ equity at December 31, 2004. Total short-term and long-term debt, plus capital lease obligations was $962.0 million and represented 1.9 times stockholders’ equity at March 31, 2004.

~~For the first nine months of fiscal year 2005, cash provided by operating activities was $223.7 million, compared with $149.1~~$3.7 million for the first ~~nine months~~quarters of ~~fiscal year 2004. Cash~~2005 and 2004, respectively. Lower revenue was ~~provided~~primarily offset by ~~net income adjusted~~lower operating costs and overhead expenses.

SAC Holding II

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

Listed below are revenues for ~~non-cash related items and reductions in working capital requirements. Our inventory levels were higher by 1.9%~~the major product lines at SAC Holding II for the ~~end of the third~~first quarter of fiscal ~~year 2005 compared to March 2004. Uses~~2006 and the first quarter of ~~cash included reductions in insurance policy liabilities and deferred insurance policy acquisition costs.~~fiscal 2005:

	Quarter Ended June 30,
	2005		2004
	(unaudited)
	(In thousands)
Self-moving equipment rentals	$	2,488	$	2,409
Self-storage revenues		4,520		4,265
Self-moving and self-storage products and service sales		4,765		4,337
Other revenue		286		335
Segment revenue	$	12,059	$	11,346

~~We provided $123.0 million in net cash from investing activities during~~Revenues for the first ~~nine months~~quarter of fiscal ~~year 2005,~~2006 grew $0.7 million, primarily as a result of ~~the W. P. Carey Transactions, compared with using $43.5 million during the first nine months of fiscal year 2004. Gross capital expenditures increased to $172.5~~improved occupancy and pricing.

Total costs and expenses were $8.0 million in the first ~~nine months~~quarter of fiscal ~~year 2005 from $147.3~~2006, compared with $8.3 million in the first ~~nine months~~quarter of fiscal ~~year 2004 as we continued to invest in rental equipment.~~

2005.

~~We used $348.1 million in net cash for financing activities in the first nine months of fiscal year 2005, compared with $35.6~~Earnings from operations were $4.1 million in the first ~~nine months~~quarter of fiscal ~~year 2004. The major financing use of cash was to pay down borrowings under our revolving credit agreement ($182~~2006 compared with $3.1 million in ~~fiscal year 2005 and $56 million in fiscal year 2004) and to pay off $100 million~~the first quarter of ~~capital leases related to the W. P. Carey Transaction in~~ fiscal ~~year~~ 2005.

Additional financing uses of cash in the first nine months of fiscal year 2005 included payments of dividends. In November 2004, our Board of Directors approved the payment of all dividend arrearages on our Series A Preferred Stock. Regular quarterly cash dividends have been paid on a current basis since February 2004. Therefore, our dividend payments were $25 million higher in the first nine months of fiscal year 2005, compared with the first nine months of fiscal year 2004. Financing sources of cash were primarily borrowings under our revolving credit agreements ($37 million in fiscal year 2005Liquidity and ~~$50 million in fiscal year 2004).~~Capital Resources

We believe our current capital structure will allow us to achieve our operational plans and goals, ~~support our preferred stock dividend program~~ and provide us with sufficient liquidity for the next ~~3-5~~3 to 5 years. The majority of ~~our debt~~the obligations currently in place mature either at the end of fiscal ~~year 2009. The senior subordinated notes mature at the end of fiscal year 2011.~~years 2010 or 2015. As a result, we believe that our liquidity is strong. This will allow us to focus on our operations and business to further improve our liquidity in the long term. We believe these improvements will enhance our future access to capital markets. However, there is no assurance that future cash flows will be sufficient to meet our outstanding obligations or our future capital needs. ~~Also,~~

At June 30, 2005, cash and cash equivalents totaled $229.5 million, compared with $56.0 million on March 31, 2005.

On June 29, 2005 the ~~terms~~Company entered into a new revolving credit facility with Merrill Lynch Commercial Finance Corporation. The facility has a $150 million maximum amount available with an interest rate of ~~our secured indebtedness place financial~~LIBOR plus 1.75%. As of June 30, 2005 the Company had not drawn on this revolving credit facility.

At June 30, 2005, notes and ~~operational restrictions on AMERCO~~loans payable were $953.9 million, and ~~its subsidiaries~~represented 1.6 times stockholders’ equity. At March 31, 2005, notes and ~~lim it our ability~~loans payable were $780.0 million, and represented 1.4 times stockholders’ equity.

For the first quarter of fiscal 2006, cash provided by operating activities were $51.7 million, compared with $62.6 million in the first quarter of fiscal 2005.

We used $34.8 million in net cash from investing activities during the first quarter of fiscal 2006, whereas in the first quarter of fiscal 2005 we generated cash from investing activities of $145.1 million provided in the first quarter of fiscal year 2005. The majority of the decrease in the first quarter of fiscal 2006, compared with the first quarter of fiscal 2005 was related to ~~incur additional indebtedness~~the W. P. Carey Transactions. Gross capital expenditures were $75.4 million and ~~other obligations.~~$62.3 million for the first quarters of fiscal 2006 and 2005, respectively. Capital dispositions were $15.1 million and $184.2 million for the first quarters of fiscal 2006 and 2005, respectively.

Financing activities provided $158.6 million during the first quarter of fiscal 2006. This compares with usage of $233.8 million from financing activities during the first quarter of fiscal 2005. The primary reason for the increase in the first quarter of 2006 compared to the first quarter of 2005 is the completion of the new financing.

Liquidity and Capital Resources and Requirements of Our Operating Segments

Moving and Self-Storage

To meet the needs of our customers, U-Haul maintains a large fleet of rental equipment. Historically, capital ~~requirements~~expenditures have primarily reflected new rental equipment acquisitions. The capital required to fund these ~~requirements~~expenditures has historically been obtained through internally generated funds from operations and externally from lease financing and sales of used equipment. Going forward, we anticipate that a substantial portion of our internally generated funds will be used to enhance liquidity by paying down existing indebtedness. During each of the fiscal years ended March 31, ~~2005,~~ 2006, 2007 and ~~2007,~~2008, U-Haul estimates that net capital expenditures will average approximately ~~$150~~$150.0 million to maintain ~~our~~its fleet at current levels. Financial covenants contained in our loan agreements limit the amount of capital expenditures we can make in fisc al years 2005, 2006, and 2007, net of dispositions, to $185 million, $245 million and $195 million, respectively. Management estimates that U-Haul will fund its fleet expansion requirements from leasing and from the proceeds from the sale of trucks. We intend to focus our growth on expanding our independent dealer network, which does not require a substantial amount of capital resources. Gross capital ~~outlays~~expenditures were ~~$170~~$75.2 million ~~but were netted against proceeds, producing a net capital outlay~~for the first quarter of ~~$55.3 million, the majority of which reflects the cost of residual lease buy outs.~~fiscal 2006.

Real Estate has traditionally financed the acquisition of self-storage properties to support U-Haul’s growth through lease and debt financing. U-Haul’s growth plan in self-storage is focused on eMove, which does not require acquisition or construction of self-storage properties by the Company. Therefore, we do not anticipate that Real Estate will ~~not~~ require substantial capital for its future plans.

~~SAC Holdings operations are funded by various mortgage loans~~Property and secured and unsecured notes. SAC Holdings does not utilize revolving lines of credit to finance its operations or acquisitions. Certain of SAC Holdings’ loan agreements contain restrictive covenants and restrictions on incurring additional subsidiary indebtedness. Oxford LifeCasualty Insurance ~~Company.~~

~~Oxford Life Insurance Company~~

~~As of September 30, 2004, Oxford~~At March 31, 2005, RepWest had no notes and loans ~~payable~~due in less than one year and its accounts payable and accrued expenses were $5.2 million. RepWest financial assets (cash, receivables, inventories, and short-term investments) at the end of the first quarter, were $360.1 million. State insurance regulations restrict the amount of dividends that can be paid to stockholders of insurance companies. As a result, RepWest’s funds are generally not available to satisfy the claims of AMERCO or its legal subsidiaries.

Stockholder’s equity was $155.0 million and $154.8 million at March 31, 2005 and December 31, 2004, respectively. RepWest does not use debt or equity issues to increase capital and therefore has no exposure to capital market conditions.

Life Insurance

As of March 31, 2005, Oxford is due to make a $1.0 million principal payment to AMERCO on an inter-company surplus note issued in 1998; Oxford had no other notes and loans payable in less than one year. Its accounts payable and accrued expenses total ~~$1.7~~approximately $7.0 million. Oxford’s financial assets (cash, receivables, short-term investments, other investments and fixed ~~maturities, and related party assets)~~maturities) at ~~September 30, 2004~~March 31, 2005 were approximately ~~$785.9~~$749.1 million. State insurance regulations restrict the amount of dividends that can be paid to stockholders of insurance companies. As a result, Oxford’s funds are generally not available to satisfy the claims of AMERCO or its legal subsidiaries.

Oxford's primary sources of cash are premiums, receipts from interest-sensitive products, and investment income. The primary uses of cash are operating costs and benefit payments to policyholders. Matching the investment portfolio to the cash flow demands of the types of insurance being written is an important consideration. Benefit and claim statistics are continually monitored to provide projections of future cash requirements.

~~Cash provided by operating activitieswas $7.8 million and $11.8 million~~ for the nine months ended September 30, 2004 and 2003, respectively. Cash flows used by financing activities were $59.6 million and $36.0 million for the quarters ended September 30, 2004 and 2003, respectively. Cash flows from deferred annuity sales are a component of financing activities. Investment contract deposits increase cash flows while surrenders of these policies are a use of funds. The decrease in investment contract deposits over 2003 is due to a reduction in new contract sales and an increase in contract surrenders; both due to Oxford’s decreased ratings.
In addition to cash flows from operating and financing activities, a substantial amount of liquid funds is available through Oxford's short-term portfolio. At September 30, 2004 and 2003, short-term investments amounted to $100.2 million and $122.9 million, respectively. Management believes that the overall sources of liquidity will continue to meet foreseeable cash needs.

Oxford’s ~~stockholder's~~stockholder’s equity was ~~$119.1~~$112.8 million, $115.0 million as of March 31, 2005, and ~~$117.2 million at September 30,~~December 31, 2004, ~~and 2003,~~ respectively. Increases from earnings were offset by decreases in unrealized gains resulting from the change in interest rates.

Applicable laws and regulations of the State of Arizona require the Company's insurance subsidiaries to maintain minimum capital and surplus determined in accordance with statutory accounting practices. With respect to Oxford, the amount is $0.4 million. In addition, the amount of dividends that can be paid to shareholders by insurance companies domiciled in the State of Arizona is limited. Any dividend in excess of the limit requires prior regulatory approval. At September 30, 2004, Oxford cannot distribute any of its statutory surplus as dividends without regulatory approval. These restrictions are not expected to have a material adverse effect on the ability of the Company to meet its cash obligations.
~~Property and Casualty Insurance~~SAC Holding II

AsSAC Holding II operations are funded by various mortgage loans, and secured and unsecured notes. SAC Holding II does not utilize revolving lines of ~~September 30, 2004, RepWest had no notes~~credit to finance its operations or loans due in less than one year and its accounts payable, accrued expenses, and other payables were $18.1 million. RepWest’s financial assets (cash, receivables, short-term investments, and related party assets) at September 30, 2004 were approximately $395.7 million.
~~State insurance regulations restrict the amount~~acquisitions. Certain of dividends that can be paid to stockholders of insurance companies. As a result, RepWest’s funds are generally not available to satisfy the claims of AMERCO or its legal subsidiaries. In addition, AMERCO’sSAC Holding II loan agreements ~~prohibit any loans, capital contributions or other advances to RepWest by AMERCO.~~
~~The primary sources of cash for RepWest include invested assets, premiums~~contain restrictive covenants and investment income. The primary uses of cash are operating costs and benefit payments to policyholders. Matching the investment portfolio to the cash flow demands of the types of insurance written is an important consideration. Benefit and claim statistics are continually monitored to provide projections of future cash requirements.
RepWest’s cash and cash equivalents and short-term investment portfolio were $79.1 million and $62.1 million at September 30, 2004 and 2003, respectively. This balance reflects funds in transition from maturity proceeds to long term investments. This level of liquid assets, combined with budgeted cash flow, is adequate to meet periodic needs.

restrictions on incurring additional subsidiary indebtedness.

Cash Provided from Operating Activities by Operating Segments

Moving and Self-Storage

Cash provided byfrom operating activities from U-Haul was ~~$32.3~~$122.3 million and ~~$115.8~~$75.1 million ~~for~~in the first ~~nine months~~quarters of fiscal ~~years~~2006 and fiscal 2005, ~~and 2004,~~ respectively. Cash ~~provided/~~provided (used) byfrom operating activities for Real Estate was ~~$3.3~~$(28.9) million and ~~$(3.9)~~$6.0 million ~~for~~in the first ~~nine months~~quarter of fiscal ~~years~~2006 and 2005, ~~and 2004,~~ respectively. Cash provided from operating activities for SAC Holdings was $0.6 million and $1.2 million for the first nine months of fiscal years 2005 and 2004, respectively. The cash provided by U-Haul operations, before intercompany transfers, for the first nine months ended December 31, 2004 was approximately $189 million and approximately $145 million for the same period last year.
~~Life Insurance~~
~~Cash provided by operating activitieswas $7.8 million, and $11.8 million~~ ~~for the first nine months ended September 30, 2004, and 2003 respectively~~

Property and Casualty Insurance

Cash flows ~~used~~(used) by operating activities were ~~$18.6~~$(5.8) million and ~~$55.6~~$(19.1) million for the ~~nine months ended September 30,~~first quarters of 2005 and 2004, ~~and 2003,~~ respectively. The cash used by operating activities iswas the result of RepWest’s exiting its non Self-Storage and Self-Moving lines and the associated reduction of reserves in the lines exited.
RepWest’s cash and cash equivalents and short-term investment portfolio were $98.3 million and $90.3 million at March 31, 2005 and December 31, 2004, respectively. This balance includes funds in transition from maturity proceeds to long term investments. We believe that this level of liquid assets, combined with budgeted cash flow, is adequate to meet periodic needs. Capital and operating budgets allow RepWest ~~exiting the assumed reinsurance~~to schedule cash needs in accordance with investment and ~~non U-Haul related lines. As RepWest adjudicates the claims in these lines there will be a continued use of its portfolio and a corresponding decrease in insurance reserves.~~underwriting proceeds.

~~Summary~~Life Insurance
Cash flows provided (used) by operating activities were $(6.0) million and $9.5 million, for the first quarters of 2005 and 2004, respectively. Included in the operating cash out-flow was the $12.8 million settlement of the Kocher litigation, net of the $2.2 million recovery from Oxford’s errors and omissions insurance carrier.
In addition to cash flows from operating activities and financing activities, a substantial amount of liquid funds is available through Oxford’s short-term portfolio. At March 31, 2005 and December 31, 2004, short-term investments amounted to $65.1million and $113.8 million, respectively. Management believes that the overall sources of liquidity will continue to meet foreseeable cash needs.
SAC Holding II
Cash provided by operating activities at SAC Holding II was $0.9 million and $0.1 million for the first quarter of fiscal 2006 and 2005, respectively. The primary source of cash in fiscal 2006 was a decrease in accounts payable and accrued liabilities. The primary use of cash in fiscal 2005 was the deconsolidation of SAC Holding Corporation.
Liquidity and Capital Resources-Summary

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

For a more detailed discussion of our long-term debt and borrowing capacity, please see footnote 53 “Borrowings” to the “Notes to the Condensed Consolidated Financial Statements.”

~~Disclosures about Contractual Obligations and Commercial Commitments~~Off-Balance Sheet Arrangements

AMERCO ~~uses~~used certain equipment and occupies certain facilities under operating lease commitments with terms expiring substantially through 2034 with the exception of one land lease expiring in 2079. In the event of a shortfall in proceeds from the sale of the underlying assets, AMERCO has guaranteed approximately ~~$154.0~~$157.7 million of residual values at ~~December 31, 2004~~June 30, 2005 for these assets at the end of the respective lease terms. AMERCO has been leasing equipment since ~~1987. Thus~~1987 and, thus far, we have experienced no residual value shortfalls. ~~(See details related to operating lease commitments in footnote 9 “Contingent Liabilities and Commitments” to the “Notes to the Condensed Consolidated Financial Statements.”)~~

~~Off Balance Sheet Arrangements~~
WeThe Company uses off-balance sheet arrangements where the economics and sound business principles warrant their use. The Company’s principal use of off-balance sheet arrangements occurred in connection with the expansion of our self-storage business. The Company currently ~~manage~~manages the self-storage properties owned by SAC ~~Holdings~~Holding II and its affiliates, pursuant to a standard form of management agreement with each SAC ~~Holdings~~Holding II subsidiary and its affiliates, pursuant to which ~~we receive~~the Company receives a management fee ~~ranging from 4% to 10% of~~based on the gross receipts from the properties plus reimbursement for certain expenses. We received management fees, ~~from SAC Holdings,~~ exclusive of expenses, of ~~$9.0~~$0.7 million during the first ~~nine months~~quarter of fiscal ~~year 2005.~~2006. This management fee is consistent with the fees we received from unrelated parties for other properties we ~~manage.~~have managed.

Certain subsidiaries of SAC ~~Holdings~~Holding II and its affiliates act as U-Haul ~~independent~~ dealers. The financial and other terms of the dealership contracts with subsidiaries of SAC ~~Holdings~~Holding II and its affiliates are substantially identical to the terms of those with our over 14,000 independent dealers. During the first ~~nine months~~quarter of fiscal ~~year 2005,~~2006, we paid subsidiaries of SAC ~~Holdings $24.5~~Holding II $2.5 million in commissions pursuant to such dealership contracts.

During the first ~~nine months~~quarter of fiscal year 2005, the Company leased space for marketing company offices, vehicle repair shops and hitch installation centers from subsidiaries of SAC Holdings. Total lease payments pursuant to such leases were $1.7 million. The terms of the leases are similar to the terms of leases for other properties owned by unrelated parties that are leased to the Company.
~~During the first nine months of fiscal 2005,~~2006, a subsidiary of the Company held various senior and junior unsecured notes of SAC Holdings. The Company recorded interest income of ~~$16.3~~$5.4 million and received cash interest payments of ~~$10.2~~$4.9 million during the first ~~nine months~~quarter of fiscal ~~year 2005.~~2006.

~~Business~~Fiscal 2006 Outlook

AsWe have many exciting developments which we ~~look ahead to the remainder of~~believe should positively affect performance in fiscal ~~year 2005, we~~2006. We believe the momentum in our Moving and Storage Operations will continue. We are investing strongly in our truck rental fleet to further strengthen U-Haul’s “do-it-yourself” moving business. We placed purchase orders last fall for 6,750 of our largest rental trucks and self-storage segments will continue, adjusted for the deconsolidation of SAC Holding Corporation and the W.P. Carey Transaction. During fiscal year 2004, we reported approximately $101.9 million of revenues, $26.5 million of earnings from operations, $37.8 million of interest expense, and a net loss of $8.6 million relatedexpect to the 281 SAC Holdings properties which were deconsolidated March 31, 2004. We reported approximately $29.2 million of storage revenues during fiscal year 2004 at the 78 self-storage properties that were recently sold to W.P. Carey (UH Storage DE).
~~U-Haul~~have them fully in service by mid-August. This investment is expected to ~~continue~~increase the number of rentable truck days available to ~~benefit from the initiatives mentioned earlier, including positive sales increases~~meet our customer’s demand and ~~maintenance~~will reduce future spending on repair costs and ~~repair cost improvements associated with our fleet replacement program.~~equipment down-time.

At RepWest, our plans to exit non-U-Haul lines of business are progressing well.
At Oxford, isthe Kocher litigation settlement should produce improved ratings, which in turn should support the expansion of its distribution capabilities.
Also, we completed the refinancing of the Company’s debt on June 8, 2005. This action increased our borrowing capacity by more than $195.0 million and will reduce our effective borrowing rates. Additionally, the new debt increases our financial flexibility thus enabling us to complete the fleet investment plans outlined above. The early extinguishment of our existing debt resulted in a one time pre-tax charge of approximately $35.6 million during the first quarter of fiscal 2006.
Our objectives for fiscal 2006 are to position our rental fleet to achieve revenue and transaction growth and continue to drive down operating costs.

Cautionary Statements Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements. We may make additional written or oral forward-looking statements from time to time in filings with the Securities and Exchange Commission or otherwise. We believe such forward-looking statements are within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, projections of revenues, income or loss, estimates of capital expenditures, plans for future operations, products or services, the adequacy of our financial resources and related financing needs and plans estimated interest savings from our recent debt refinancing; the amount and timing of fleet acquisition; that the Kocher settlement will prompt in improving insurance ratings, our perceptions of our legal positions and anticipated outcomes of government investigations and pending litigation against us, liquidity, goals and strategies, plans for new business, growth rate assumptions, pricing, costs, and access to capital and leasing markets as well as assumptions relating to the foregoing. The words “believe,”“expect,”“anticipate,”“estimate,”“project” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could significantly affect results include, without limitation, the risk factors enumerated at the end of this section, as well as the following: the Company’s ability to operate pursuant to the terms of its credit facilities; the Company’s ability to maintain contracts that are critical to its operations; the costs and availability of financing; the Company’s ability to execute its business plan; the Company’s ability to attract, motivate and retain key employees; general economic conditions; fluctuations in our costs to maintain and update our fleet and facilities; our ability to refinance our debt; changes in government regulations, particularly environmental regulations; our credit ratings; the availability of credit; changes in demand for our products; changes in the ~~process~~general domestic economy; degree and nature of ~~rebuilding its distribution that was impacted~~our competition; the resolution of pending litigation against the Company; changes in accounting standards and other factors described in this report or the other documents we file with the Securities Exchange Commission. The above factors, the following disclosures, as well as other statements in this report and in the “Notes to the Condensed Consolidated Financial Statements”, could contribute to or cause such differences, or could cause our stock price to fluctuate dramatically. Consequently, the forward-looking statements should not be regarded as representations or warranties by the AMERCO restructuring. Prior to the restructuring, Oxford was rated B++ by A.M. Best. The rating was reduced to C+ during the restructuring. In March 2004 the rating was upgraded to B-. In October 2004, the rating was upgraded to B with a continued positive outlook. Continued improvement in the ratingCompany that such matters will be a key factor in the success of Oxford’s marketing programs including annuities, life insurance, Medicare supplement, and credit life and disability. Oxford’s statutory capital measurements continuerealized. The Company disclaims any intent or obligation to ~~strengthen and existing business is expected to continue to perform profitably.~~
~~RepWest expects to realize the benefits of its changed business plan. During fiscal 2004, we successfully discontinued the majority~~update or revise any of the ~~unprofitable direct and assumed reinsurance lines. U-Haul related lines have historically been profitable and we expect~~forward-looking statements, whether in response to ~~see the results of the~~ new business plan during fiscal year 2005. We believe that RepWest’s statutory capital measurements will continue to strengthen as the reserves of the discontinued lines are being run off. We are working with the Arizona Department of Insurance regarding the supervision order and expect it to be resolved in the future.
The Company has variable interests in variable interest entities. We have adopted FIN 46R, Accounting for Variable Interest Entities, effective with the March 2004 reporting period. At that time and based on changes made by SAC Holding Corporation, we no longer were considered the primary beneficiary of this variable interest entityinformation, unforeseen events, changed circumstances or its subsidiaries, and we deconsolidated SAC Holding Corporation effective with the March 2004 reporting period. SAC Holding II is a variable interest entity and we are its primary beneficiary. Consequently, we continue to consolidate SAC Holding II in our financial statements.
It is possible that SAC Holding Corporation could take actions that would require us to re-determine whether we have become the primary beneficiary of SAC Holding Corporation. Should this occur, we could be required to re-consolidate some or all of SAC Holding Corporation with our financial statements. Similarly, SAC Holding II could take actions that would require us to re-determine whether we continue to be the primary beneficiary of our variable interest in SAC Holding II. Should we cease to be the primary beneficiary, we would be required to de-consolidate some or all of our variable interest in SAC Holding II from our financial statements.

otherwise.

Risk Factors

WeWe operate in a highly competitive ~~industry~~industry..

The truck rental industry is highly competitive and includes a number of significant national, ~~and hundreds of~~ regional and local competitors. Competition is generally based on ~~price, product~~convenience of rental locations, availability of quality ~~convenience, availability, brand name recognition~~rental moving equipment, breadth of essential services and ~~service.~~price. In our truck rental business, we face competition from Budget Car and Truck Rental Company and Penske Truck Leasing. Some of our competitors may have greater financial resources than we have. We cannot assure you that we will not be forced to reduce our rental prices or delay price increases.

The self-storage industry is large and highly fragmented. We ~~compete with national~~believe the principle competitive factors in this industry are convenience of storage rental locations, cleanliness, security and ~~regional~~price. Our primary competitors in the self-storage ~~operators as well as local operators.~~market are Public Storage, Shurgard, Storage USA and others. Competition in the market areas in which we operate is significant and affects the occupancy levels, rental ~~rates~~sales and operating expenses of our facilities. Competition might cause us to experience a decrease in occupancy levels, limit our ability to ~~increase~~raise rental ~~rates~~sales and ~~compel~~require us to offer discounted ~~rental~~ rates ~~which could~~that would have a material ~~adverse effect~~affect on ~~our~~ operating results.

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

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

As of ~~December 31, 2004,~~June 30, 2005, Edward J. Shoen, Chairman of the Board of Directors and President of AMERCO, James P. Shoen, a director of AMERCO, and Mark V. Shoen, an executive officer of AMERCO, collectively ~~own 8,790,170~~control 8,890,224 shares (approximately ~~41.3%~~41.8%) of the outstanding common shares of AMERCO. Accordingly, Edward J. Shoen, Mark V. Shoen and James P. Shoen will be in a position to continue to influence the election of the members of the Board of Directors and approval of significant transactions. In addition, ~~2,192,400~~2,130,134 shares (approximately ~~10.3%~~10.0%) of the outstanding common shares of AMERCO, including shares allocated to employees and unallocated shares, are held by our Employee Savings and Employee Stock Ownership Trust.

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

Compliance with environmental requirements of federal, state and local governments significantly affects our business. Among other things, these requirements regulate the discharge of materials into the water, air and land and govern the use and disposal of hazardous substances. Under environmental laws, we can be held strictly liable for hazardous substances that are found on real property we have owned or operated. We are aware of issues regarding hazardous substances on some of our real estate and we have put in place a remedial plan at each site where we believe such a plan is necessary. We regularly make capital and operating expenditures to stay in compliance with environmental laws. In particular, we have managed a testing and removal program since 1988 for our underground storage tanks. ~~Under this progr am, we spent $44.0 million between April 1988 and December 31, 2004.~~ Despite these compliance efforts, risk of environmental liability is part of the nature of our business.

Environmental laws and regulations are complex, change frequently and could become more stringent in the future. We cannot assure you that future compliance with these regulations or future environmental liabilities will not have a material adverse effect on our business.

Our business is seasonal.

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

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

In the ~~past~~last ten years, we purchased ~~most~~all of our rental trucks from Ford and General Motors. Although we believe that we have alternative sources of supply for our rental trucks, termination of one or both of our relationships with these suppliers could have a material adverse effect on our business, financial condition or results of operations.

Our property and casualty insurance business has suffered extensive losses.

Since January 2000, our property and casualty insurance business, RepWest, reported losses totaling approximately ~~$158.2~~$162.5 million. These losses are primarily attributable to business lines that were unprofitable as underwritten. To restore profitability in RepWest, we have exited all ~~non-U-Haul~~non U-Haul related lines and have strengthened the reserves on the lines being eliminated. Although we believe the terminated lines are adequately reserved, we cannot assure you that there will not be future adverse ~~loss~~reserve development.

Our life insurance ~~businesses have been~~business was downgraded by A.M. Best due to ~~the~~ events surrounding the ~~restructuring.~~restructuring

During AMERCO’s restructuring in 2003, A.M. Best downgraded Oxford and its subsidiaries ~~during the restructuring~~ to C+. Upon AMERCO’s emergence from bankruptcy in March 2004, Oxford and its subsidiaries were upgraded to B-. The ratings were again upgraded in October 2004 to B. A.M. Best has indicated the rating outlook for our life insurance companies is positive. Prior to AMERCO’s restructuring, Oxford was rated B++. Financial strength ratings are important external factors that can affect the success of Oxford’s business plans. Accordingly, if Oxford’s ratings, relative to its competitors, do not continue to improve, Oxford may not be able to retain and attract business as currently planned.

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

At ~~December 31, 2004,~~June 30, 2005, we held approximately ~~$203.8~~$203.7 million of notes due from SAC ~~Holdings. We~~Holdings of which $75.1 million have been eliminated in the consolidating financial statements, we have significant economic exposure to SAC Holdings. SAC Holdings is highly leveraged with significant indebtedness to others. We hold various junior unsecured notes of SAC Holdings. If SAC Holdings is unable to meet its obligations to its senior lenders, it could trigger a default on its obligations to us. In such an event of default, we could suffer a significant ~~loss.~~loss to the extent the value of the underlying collateral on our loans to SAC Holdings is inadequate to repay SAC Holdings senior lenders and us. We cannot assure you that SAC Holdings will not default on its loans to their senior lenders or that the value of SAC ~~Holdings’~~Holdings assets upon liquidation would be sufficient to repay us in full.

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

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

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

~~RepWest has consented to an Order of Supervision issued by the Arizona Department of Insurance.~~
On May 20, 2003, RepWest consented to an Order for Supervision issued by the Arizona Department of Insurance (“DOI”). The DOI determined that RepWest’s level of risk based capital (RBC) allowed for regulatory control. Pursuant to this order and Arizona law, during the period of supervision, RepWest may not engage in any of the following activities without the prior approval of the DOI:
a.   ~~dispose of, convey or encumber any of its assets or its business in force;~~
b.   ~~withdraw any of its bank accounts;~~
c.    ~~lend any of its funds;~~
d.    ~~invest any of its funds;~~
e.    ~~transfer any of its property;~~
f.    ~~incur any debt, obligation or liability including the issuance of all new and renewal business;~~
g.   ~~merge or consolidate with another company;~~
h.   ~~enter into any new reinsurance contract or treaty; or~~
i.    ~~enter into any affiliate transactions.~~

In order to abate the DOI’s order, RepWest must establish that it possesses surplus in compliance with Arizona law and as the Director of Insurance may require based on type, volume or nature of its business pursuant to Arizona law and establish that certain credit risks associated with the exposures to AMERCO and its affiliates have been eliminated.
~~If RepWest fails to satisfy the DOI’s concerns, the DOI may take further action, including, but not limited to, commencing a conservatorship.~~
Item 3. Quantitative and Qualitative Disclosures about Market Risk

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

Interest ~~rate risk~~Rate Risk

The exposure to market risk for changes in interest rates relates primarily to our variable rate debt obligations. ~~Interest~~We have used interest rate ~~cap contracts represent non-linear derivative instruments which protect~~swap agreements to provide for matching the ~~holder from rises~~gain or loss recognition on the hedging instrument with recognition of the changes in ~~short-term interest rates by making a payment~~the cash flows associated with the hedged asset or liability attributable to the ~~holder when an underlying~~hedged risk or the earnings effect of the hedged forecasted transaction. At June 30, 2005, the Company had two interest rate ~~(the index or reference~~swap contracts for $100 million each that serve to partially offset the changes in the variable interest ~~rate) exceeds a specified strike~~ rate ~~(the cap rate). During~~of the ~~first quarter of fiscal year 2005,~~Real Estate Backed Loan. On May 13, 2004, the Company entered into separate interest rate cap contracts for ~~$200.0~~$200 million of its variable rate debt obligations for a two year term and for ~~$50.0~~$50 million of its variable rate debt obligations for a three year term. At ~~December 31, 2004,~~June 30, 2005, the Company had approximately ~~$347.4 million~~$465,000 of variable ~~rate~~ debt obligations. A fluctuation in the interest rates of 100 basis ~~p oints~~points would change interest expense for the Company by approximately ~~$3.5~~$4.7 million annually to(before consideration of the ~~extent that the three month LIBOR is below 3.0%~~swap and ~~by $1.0 million to the extent that the three month LIBOR exceeds 3.0%.~~cap contracts.)

Foreign Currency Exchange Rate Risk

The exposure to market risk for changes in foreign currency exchange rates relates primarily to our Canadian business. Approximately 2%2.0% of our revenue is generated in Canada. The result of a ~~10%~~10.0% change in the value of the U.S. dollar relative to the Canadian dollar would not be material. We typically do not hedge any foreign currency risk since the exposure is not considered material.

Item 4. Controls and Procedures
Attached as exhibits to this Form 10-Q are certifications of AMERCO’s Chief Executive Officer (CEO) and Chief Accounting Officer (CAO), which are required in accordance with Rule 13a-14 of the Securities Exchange Act of 1934, as amended (the Exchange Act). This “Controls and Procedures” section includes information concerning the controls and controls evaluation referred to in the certifications and it should be read in conjunction with the certifications for a more complete understanding of the topics presented.
Evaluation of Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of the design and operation of our ~~“disclosure~~"disclosure controls and ~~procedures”~~procedures" (Disclosure Controls) as of the end of the period covered by this ~~Quarterly Report. The controls~~Form 10-Q. This evaluation was ~~done~~conducted under the supervision and with the participation of management, including ~~the Chief Executive Officer (CEO)~~our CEO and ~~the Chief Financial Officer (CFO).~~
~~Definition of Disclosure Controls~~
CAO. Disclosure Controls are controls and procedures designed to reasonably assure that information required to be disclosed in our reports filed under the Exchange Act, such as this ~~Quarterly Report, is~~Form 10-Q, are recorded, processed, summarized and reported within the time periods specified in the ~~rules and forms of the~~U.S. Securities and Exchange ~~Commission.~~Commission's (SEC's) rules and forms. Disclosure Controls ~~include controls and procedures~~are also designed to ~~ensure~~reasonably assure that such information is accumulated and communicated to our management, including the CEO and ~~the CFO,~~CAO, as appropriate to allow timely decisions regarding required disclosure. Our Disclosure Controls include components of our internal control over financial reporting which consists of control processes designed to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles in the U.S. ~~To the extent that components of our internal~~Internal control over financial reporting ~~are included within~~is also separately evaluated on an annual basis for purposes of providing the management report which is set forth in our Form 10-K.
The evaluation of our Disclosure Controls ~~they are~~ included a review of the controls' objectives and design, the company's implementation of the controls and the effect of the controls on the information generated for use in this Quarterly Report.
In the ~~scope~~course of the controls evaluation, we reviewed identified data errors, control problems or acts of fraud and sought to confirm that appropriate corrective actions, including process improvements, were being undertaken. This type of evaluation is performed on a quarterly basis so that the conclusions of management, including the CEO and CAO, concerning the effectiveness of the Disclosure Controls can be reported in our periodic reports on Form 10-Q and Form 10-K. Many of the components of our ~~quarterly controls evaluation.~~

Disclosure Controls are also evaluated on an ongoing basis by our Internal Audit Department and by other personnel in our Finance organization. The overall goals of these various evaluation activities are to monitor our Disclosure Controls, and to modify them as necessary. Our intent is to maintain the Disclosure Controls as dynamic systems that change as conditions warrant.

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

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

~~Scope of the Controls Evaluation~~
The evaluation of our Disclosure Controls included a review of the objectives and design of the controls, the implementation of the controls by the Company and the effect of the controls on the information generated for use in this Quarterly Report. In the course of the controls evaluation, we sought to identify data errors, control problems or acts of fraud and confirm that appropriate corrective action, including process improvements, were being undertaken. This type of evaluation is performed on a quarterly basis so that the conclusions of management, including the CEO and the CFO, concerning the effectiveness of the controls can be reported in our Quarterly Reports on Form 10-Q and to supplement our disclosures made in our Annual Report on Form 10-K. Many of the components of our Disclosure Controls are eva luated on an on-going basis by personnel in our finance department, as well as our independent auditors who evaluate them in connection with determining their auditing procedures related to their report on our annual financial statements. The overall goals of these various evaluation activities are to monitor our Disclosure Controls, and to modify them as necessary. Our intent is to maintain the Disclosure Controls as dynamic systems that change as conditions warrant.
Among other matters, we also considered whether our evaluation identified any “significant deficiencies” or “material weaknesses” in our internal control over financial reporting, and whether the Company had identified any acts of fraud involving personnel with a significant role in our internal control over financial reporting. This information was important both for the controls evaluation generally, and because item 5 of the certifications of the CEO and the CFO requires that the CEO and the CFO disclose that information to the Audit Committee of our Board and the independent auditors. In the professional auditing literature, “significant deficiencies” are referred to as “reportable conditions,” which are deficiencies in the design or operation of controls that could a dversely affect our ability to record, process, summarize and report financial data in the financial statements. Auditing literature defines “material weakness” as a particularly serious reportable condition in which the internal control does not reduce to a relatively low level the risk that misstatements caused by error or fraud may occur in amounts that would be material in relation to the financial statements and the risk that such misstatements would not be detected within a timely period by employees in the normal course of performing their assigned functions. Based upon our evaluation of the effectiveness of the Company’s internal controls, management has concluded that there was a deficiency in the design and operation of internal controls that adversely affected our ability to record, process and summarize and report financial data related to the unreconciled intercompany balances with SAC Holding corporations. This deficiency was considered to be a material weakness under the standar ds established by the American Institute of Certified Public Accountants. As a result of the conclusions discussed above, under the direction of the Audit Committee and the Board of Directors, we have taken corrective action to strengthen our internal controls and procedures to ensure information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and accurately reported, within the time periods specified in the SEC’s rules and forms. We also sought to address other controls matters in the controls evaluation, and in each case if a problem was identified, we considered what revision, improvement and/or correction to make in accordance with our on-going procedures.

~~Conclusions~~
Based upon the controls evaluation, our CEO and CFO have concluded that, subject to the limitations noted above, as of the end of the period covered by this Quarterly Report, our Disclosure Controls were effective to provide assurance that material information relating to AMERCO and its consolidated subsidiaries is made known to management, including the CEO and the CFO, particularly during the period when our periodic reports are being prepared.
Changes in Internal Control over Financial Reporting

During the fiscal quarter covered by this report we made no change in our internal control over financial reporting which materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

~~Kocher~~Not applicable (see footnote 7 to the “Notes to the Condensed Consolidated Financial Statements”).

On July 20, 2000, Charles Kocher (Kocher) filed suit in Wetzel County, West Virginia, Civil Action No. 00-C-51-K, entitled Charles Kocher v. Oxford Life Insurance Co. (Oxford) seeking compensatory and punitive damages for breach of contract, bad faith and unfair claims settlement practices arising from an alleged failure of Oxford to properly and timely pay a claim under a disability and dismemberment policy. On March 22, 2002, the jury returned a verdict of $5 million in compensatory damages and $34 million in punitive damages. On November 5, 2002, the trial court entered an Order affirming the $39 million jury verdict and denying Oxford’s motion for New Trial Or, in The Alternative, Remittitur. Oxford appealed the case to the West Virginia Supreme Court. On June 17, 2004 the West Virginia Supreme Court r eversed and vacated the punitive damages award and remanded the case for a new trial on punitive damages. On July 15, 2004 Oxford filed a petition for a re-hearing with the West Virginia Supreme Court on the matter of compensatory damages and on September 9, 2004 the West Virginia Supreme Court denied the petition. The Company has accrued for this potential loss. The new trial on punitive damages is set for April 8, 2005. The Company has notified its E & O carrier of the West Virginia Supreme Court’s ruling. The E&O carrier is disputing coverage.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults upon Senior Securities

Not applicable.

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

~~Not applicable.~~No matter was submitted to a vote of the security holders of AMERCO or U-Haul during the first quarter of the fiscal year covered by this report, through the solicitation or proxies or otherwise.

Item 5. Other Information
Item 1.01 Entry into a Material Definitive Agreement.

For ~~inclusion in~~ the ~~proxy statement and form of proxy relating~~quarter ended June 30, 2005, the following cash bonuses were awarded to the 2005 Annual Meeting of Stockholders, a proposal intended for presentation at that meeting must be submitted in accordance with the applicable rules of the Securities and Exchange Commission and received by the Secretary of AMERCO, c/o U-Haul International, Inc., 2721 North Central Avenue, Phoenix, Arizona 85004, on or before March 25, 2005. Proposals to be presented at the 2005 Annual Meeting of Stockholders that are not intended for inclusion in the proxy statement and form of proxy must be submitted by that date and in a accordance with the applicable provisions of the Company’s By-Laws, a copy of which is available upon written request, delivered to the Secretary of AMERCO at the address in the preceding sentence. The Company suggest s that proponents submit their proposals to the Secretary of AMERCO by Certified Mail-Return Receipt Requested.following executive officers:

Name

Cash Bonus Amount

Gary B. Horton $ 500,000
John C. Taylor $ 200,000
Jack A. Peterson $ 35,000
Ronald C. Frank $ 17,437

Item 6. Exhibits
The following documents are filed as part of this report:
Exhibit Number

Description

Page or Method of Filing
2.1 Joint Plan of Reorganization of AMERCO and Amerco Real Estate Company Incorporated by reference to AMERCO’s Current Report on Form 8-K filed October 20, 2003, file no. 1-11255
2.2 Disclosure Statement Concerning the Debtors’ Joint Plan of Reorganization Incorporated by reference to AMERCO’s Current Report on Form 8-K filed October 20, 2003, file no. 1-11255
2.3 Amended Joint Plan of Reorganization of AMERCO and Amerco Real Estate Company Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2003, file No. 1-11255
3.1 Restated Articles of Incorporation of AMERCO Incorporated by reference to AMERCO’s Registration Statement on form S-4 filed March 30, 2004, file number 1-11255
3.2 Restated By-Laws of AMERCO Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1996, file No. 1-11255
3.3 Restated Articles of Incorporation of U-Haul International, Inc. Incorporated by reference to AMERCO’s Annual Report on Form 10-K for the year ended March 31, 2003, file no. 1-11255
3.4 Bylaws of U-Haul International, Inc. Incorporated by reference to AMERCO’s Annual Report on Form 10-K for the year ended March 31, 2003, file no. 1-11255
10.1 ~~Settlement~~Credit Agreement, dated June 28, 2005, among U-Haul Leasing & Sales Co., U-Haul Company of Arizona and ~~Release Agreement among PricewaterhouseCoopers LLP, AMERCO,~~U-Haul International, Inc. and ~~SAC Holding Corporation~~Merrill Lynch Commercial Finance Corporation. Filed herewith *Incorporated by reference to AMERCO’s Current Report on Form 8-K filed July 6, 2005, file no. 1-11255
10.2 ~~Property Management~~Security Agreement, dated June 28, 2005, among ~~subsidiaries~~U-Haul Leasing & Sales Co., U-Haul Company of Arizona and U-Haul International, Inc. in favor of Merrill Lynch Commercial Finance Corporation. Incorporated by reference to AMERCO’s Current Report on Form 8-K filed July 6, 2005, file no. 1-11255
10.3 Guarantee, dated June 28, 2005, made by U-Haul International, Inc. in favor of Merrill Lynch Commercial Finance Corporation. Incorporated by reference to AMERCO’s Current Report on Form 8-K filed July 6, 2005, file no. 1-11255
10.4 Amended and ~~Galaxy Storage Two, L.P.~~Restated Credit Agreement, dated June 8, 2005, among Amerco Real Estate Company, Amerco Real Estate Company of Texas, Inc., Amerco Real Estate Company of Alabama, Inc., U-Haul Co. of Florida, Inc., U-Haul International, Inc. and Merrill Lynch Commercial Finance Corp. ~~Filed herewith~~Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.5 Security Agreement, dated June 8, 2005, by Amerco Real Estate Company, Amerco Real Estate Company of Texas, Inc., Amerco Real Estate Company of Alabama, Inc., U-Haul Co. of Florida, Inc., U-Haul International, Inc. and the Marketing Grantors named therein in favor of Merrill Lynch Commercial Finance Corp. Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.6 Guarantee, dated June 8, 2005, by U-Haul International, Inc. in favor of Merrill Lynch Commercial Finance Corp. Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.7 Promissory Note, dated June 8, 2005 by Amerco Real Estate Company, Amerco Real Estate Company of Texas, Inc., Amerco Real Estate Company of Alabama, Inc., U-Haul Co. of Florida, Inc. and U-Haul International, Inc. Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.8 Form of Mortgage, Security Agreement, Assignment of Rents and Fixture Filing, dated June 8, 2005, in favor of Morgan Stanley Mortgage Capital Inc. Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.9 Form of Promissory Note, dated June 8, 2005, in favor of Morgan Stanley Mortgage Capital Inc. Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.10 Form of Mortgage, Security Agreement, Assignment of Rents and Fixture Filing, dated June 8, 2005, in favor of Merrill Lynch Mortgage Lending, Inc. Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.11 Form of Promissory Note, dated June 8, 2005, in favor of Merrill Lynch Mortgage Lending, Inc. Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
31.1 Rule 13a-14(a)/15d-14(a) Certificate of Edward J. Shoen, President and Chairman of the Board of AMERCO and U-Haul International, Inc. Filed herewith
31.2 Rule 13a-14(a)/15d-14(a) Certificate of ~~Jack~~Jason A. ~~Peterson,~~Berg, Chief ~~Financial~~Accounting Officer of AMERCO Filed herewith
31.3 Rule 13a-14(a)/15d-14(a) ~~Certification~~Certificate of ~~Robert~~Robet T. Peterson, Chief Financial Officer of U-Haul International, Inc. Filed herewith
32.1 Certificate of Edward J. Shoen, President and Chairman of the Board of AMERCO and U-Haul International, Inc. pursuant to Section 906 of the Sabanes-Oxley Act of 2002 Filed herewith
32.2 Certificate of ~~Jack~~Jason A. ~~Peterson,~~Berg, Chief ~~Financial~~Accounting Officer of AMERCO pursuant to Section 906 of the Sabanes-Oxley Act of 2002 Filed herewith
32.3
Certificate of Robert T. Peterson, Chief Financial Officer of
U-Haul International, Inc. pursuant to Section 906 of the Sabanes-Oxley Act of 2002
Filed herewith

* A portion of this exhibit has been omitted pursuant to a request for confidential treatment.

SIGNATURES

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

AMERCO

Date: ~~February 9,~~August 8, 2005   /s/ Edward J. Shoen
Edward J. Shoen
President and Chairman of the Board
                    ~~(Duly~~(Duly Authorized Officer)

Date: ~~February 9,~~August 8, 2005   /s/ ~~Jack~~Jason A. ~~Peterson~~Berg
                    ~~Jack~~Jason A. ~~Peterson~~Berg
Chief ~~Financial~~Accounting Officer
                    ~~(Principal~~(Principal Financial Officer)

U-HAUL INTERNATIONAL, INC.

Date: ~~February 9,~~August 8, 2005   /s/ Edward J. Shoen
Edward J. Shoen
President and Chairman of the Board
                    ~~(Duly~~(Duly Authorized Officer)

Date: ~~February 9,~~August 8, 2005   /s/ Robert T. Peterson
Robert T. Peterson
Chief Financial Officer
                    ~~(Principal~~(Principal Financial Officer)


Commission File Number	Registrant, State of Incorporation Address and Telephone Number	I.R.S. Employer Identification No.
1-11255	AMERCO	88-0106815
	(A Nevada Corporation)
	1325 Airmotive Way, Ste. 100
	Reno, Nevada 89502-3239
	Telephone (775) 688-6300

2-38498	U-Haul International, Inc.	86-0663060
	(A Nevada Corporation)
	2727 N. Central Avenue
	Phoenix, Arizona 85004
	Telephone (602) 263-6645

	December 31,			March 31,
	2004			2004
	(Unaudited)
	(In thousands)
ASSETS
Cash and cash equivalents	$	80,226		$	81,557
Trade receivables, net		243,706			268,386
Notes and mortgage receivables, net		5,647			4,537
Inventories, net		53,831			52,802
Prepaid expenses		23,350			13,172
Investments, fixed maturities		672,007			709,353
Investments, other		333,968			347,537
Deferred policy acquisition costs, net		64,872			76,939
Other assets		87,640			65,071
Related party assets		318,373			304,446
	$	1,883,620		$	1,923,800
Property, plant and equipment, at cost:
Land		151,487			158,594
Buildings and improvements		685,440			874,985
Furniture and equipment		285,776			293,115
Rental trailers and other rental equipment		175,116			159,586
Rental trucks		1,278,072			1,219,002
SAC Holdings II - property, plant and equipment		78,679			78,363
		2,654,570			2,783,645
Less: Accumulated depreciation		(1,355,405	)		(1,331,840	)
Property, plant and equipment, net		1,299,165			1,451,805
Total assets	$	3,182,785		$	3,375,605
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	$	216,041		$	244,570
Capital leases		-			99,609
AMERCO's notes and loans payable		696,048			862,697
SAC Holdings' notes and loans payable, non-recourse to AMERCO		77,790			78,637
Policy benefits and losses, claims and loss expenses payable		817,158			813,738
Liabilities from investment contracts		516,273			574,745
Other policyholders' funds and liabilities		24,402			28,732
Deferred income		46,433			51,383
Deferred income taxes		106,649			63,800
Related party liabilities		70,000			53,848
Total liabilities	$	2,570,794		$	2,871,759
Commitments and contingent liabilities (Notes 5 and 9)
Stockholders' equity:
Serial preferred stock, with or without par value:
Series A preferred stock, with no par value	$	-		$	-
Series B preferred stock, with no par value		-			-
Serial common stock, with or without par value:
Series A common stock of $0.25 par value		929			1,416
Common stock of $0.25 par value		9,568			9,081
Additional paid in-capital		350,344			349,732
Accumulated other comprehensive loss		(24,354	)		(21,446	)
Retained earnings		704,482			595,181
Cost of common shares in treasury, net		(418,092	)		(418,092	)
Unearned employee stockownership plan shares		(10,886	)		(12,026	)
Total stockholders' equity		611,991			503,846
Total liabilities and stockholders' equity	$	3,182,785		$	3,375,605

	Quarter Ended December 31,						Nine Months Ended December 31,
	2004			2003			2004			2003
	(Unaudited)
	(In thousands except share and per share amounts)
Revenues:
Rental revenue	$	365,131		$	386,456		$	1,262,335		$	1,304,470
Net sales		42,620			47,212			161,683			182,048
Premiums		34,634			56,088			115,516			188,024
Net investment and interest income		18,142			12,827			50,252			35,614
Total revenues		460,527			502,583			1,589,786			1,710,156

Costs and expenses:
Operating expenses		287,962			307,378			848,621			907,695
Restructuring expenses		-			7,613			-			12,027
Commission expenses		39,243			31,136			138,064			116,132
Cost of sales		21,361			23,908			77,617			87,023
Benefits and losses		38,603			50,956			104,194			169,801
Amortization of deferred policy acquisition costs		6,279			11,027			24,015			28,886
Lease expense		38,506			33,202			115,389			101,716
Depreciation, net		28,282			38,393			86,214			113,356
Total costs and expenses		460,236			503,613			1,394,114			1,536,636

Earnings from operations		291			(1,030	)		195,672			173,520
Interest expense		16,931			31,168			53,995			92,839
Litigation settlement received		51,341			-			51,341			-
Pretax earnings		34,701			(32,198	)		193,018			80,681
Income tax benefit (expense)		(13,155	)		10,531			(73,994	)		(30,587	)
Net earnings (loss)		21,546			(21,667	)		119,024			50,094
Less: Preferred stock dividends		(3,241	)		(3,241	)		(9,723	)		(9,723	)
Earnings (loss) available to common shareholders	$	18,305		$	(24,908	)	$	109,301		$	40,371

Basic and diluted earnings (loss) per common share	$	0.88		$	(1.20	)	$	5.25		$	1.95
Weighted average common shares outstanding		20,813,805			20,757,297			20,801,112			20,744,692

	Quarter Ended December 31,					Nine Months Ended December 31,
	2004		2003			2004			2003
	(Unaudited)					(Unaudited)
	(In thousands)					(In thousands)
Comprehensive income:
Net earnings (loss)	$	21,546	$	(21,667	)	$	119,024		$	50,094
Changes in other comprehensive income, net of taxes:
Foreign currency translation		2,275		9,700			2,058			11,074
Unrealized gain/(loss) on investments		5,755		(3,373	)		(4,098	)		22,488
Fair market value of interest rate hedge		800		-			(868	)		-

Total comprehensive income (loss)	$	30,376	$	(15,340	)	$	116,116		$	83,656

	Fiscal Years Ending
	(In thousands)
	2005		2006		2007		2008		2009		Thereafter
Notes payable, secured	$	3,500		3,500		3,500		3,500		533,402		148,646

	Foreign Currency Translation			Unrealized Gain/(Loss) on Investments			Fair Market Value of Interest Rate Hedge			Accumulated Other Comprehensive Income/(Loss)
Balance at March 31, 2004	$	(34,914	)	$	13,468		$	-		$	(21,446	)
Foreign currency translation		2,058			-			-			2,058

Unrealized gain/(loss) on investments		-			(4,098	)		-			(4,098	)
Fair market value of interest rate hedge		-			-			(868	)		(868	)

Balance at December 31, 2004	$	(32,856	)	$	9,370		$	(868	)	$	(24,354	)

	Direct		Ceded to		Assumed		Net		Percentage of
	Amount		Other		from Other		Amount		Amount
	(a)		Companies		Companies		(a)		Assumed to Net
	(Unaudited)
September 30, 2004	(In thousands)
Life insurance in force	$	1,312,260		397,497		1,859,445		2,774,208		67	%

Premiums earned:
Life	$	8,543		5,193		8,764		12,114		72	%
Accident and health		74,094		5,283		11,784		80,595		15	%
Annuity		1,782		-		2,044		3,826		53	%
Property and casualty		24,761		8,952		5,006		20,815		24	%
Total	$	109,180		19,428		27,598		117,350		24	%

	RepWest		Oxford
	(Unaudited)
	(In thousands)
Nine months ended September 30, 2004	$	-	$	1,105
Nine months ended September 30, 2003	$	1,062	$	2,013

		Property Plant and Equipment		Rental Fleet		Total
	(In thousands)
Year-ending:
2005		$	11,718		113,181		124,899
2006			11,135		102,068		113,203
2007			10,979		64,167		75,146
2008			10,788		32,142		42,930
2009			10,382		17,751		28,133
Thereafter			46,057		7,972		54,029
Total		$	101,059		337,281		438,340

	Obligated Group																AMERCO Legal Group								AMERCO as Consolidated
	AMERCO			U-Haul			Real Estate			Eliminations				Obligated Group Consolidated			Property and Casualty Insurance(a)		Life Insurance(a)		Eliminations				AMERCO Consolidated			SAC Moving and Storage Operations			Eliminations					Total Consolidated
	(Unaudited)
Assets:	(In thousands)
Cash and cash equivalents	$	9,423		$	53,625		$	4,331		$	-			$	67,379		$	7,968	$	4,562	$	-			$	79,909		$	317		$	-				$	80,226
Trade receivables, net		-			17,490			27			-				17,517			210,062		16,127		-				243,706			-			-					243,706
Notes and mortgage receivables, net		-			4,289			1,358			-				5,647			-		-		-				5,647			-			-					5,647
Inventories, net		-			52,698			-			-				52,698			-		-		-				52,698			1,133			-					53,831
Prepaid expenses		3,394			19,742			-			-				23,136			-		-		-				23,136			214			-					23,350
Investments, fixed maturities		-			-			-			-				-			116,775		555,232		-				672,007			-			-					672,007
Investments, other		-			936			9,218			-				10,154			146,265		177,549		-				333,968			-			-					333,968
Deferred policy acquisition costs, net		-			-			-			-				-			2,282		62,590		-				64,872			-			-					64,872
Other assets		21,721			55,122			1,900			-				78,743			2,073		846		-				81,662			5,978			-					87,640
Related party assets		544,718			601,859			11,880			(747,847	)	(d)		410,610			106,521		32,435		(142,435	)	(d)		407,131			-			(88,758	)	(d	)		318,373
		579,256			805,761			28,714			(747,847	)			665,884			591,946		849,341		(142,435	)			1,964,736			7,642			(88,758	)				1,883,620
Investment in Subsidiaries		1,260,863	��		-			-			(979,824	)	(c)		281,039			-		-		(281,039	)	(c)		-			-			-					-
Investment in SAC		(13,255	)		-			-			-				(13,255	)		-		-		-				(13,255	)		-			13,255		(c	)		-
Total investment in subsidiaries		1,247,608			-			-			(979,824	)			267,784			-		-		(281,039	)			(13,255	)		-			13,255					-
Property, plant and equipment, at cost:
Land		-			21,316			130,171			-				151,487			-		-		-				151,487			-			-					151,487
Buildings and improvements		-			85,537			599,903			-				685,440			-		-		-				685,440			-			-					685,440
Furniture and equipment		413			267,485			17,878			-				285,776			-		-		-				285,776			-			-					285,776
Rental trailers and other rental equipment		-			175,116			-			-				175,116			-		-		-				175,116			-			-					175,116
Rental trucks		-			1,278,072			-			-				1,278,072			-		-		-				1,278,072			-			-					1,278,072
SAC Holdings II - property, plant and equipment (b)		-			-			-			-				-			-		-		-				-			152,891			(74,212	)	(e	)		78,679
		413			1,827,526			747,952			-				2,575,891			-		-		-				2,575,891			152,891			(74,212	)				2,654,570
Less: Accumulated depreciation		(372	)		(1,088,697	)		(268,370	)		-				(1,357,439	)		-		-		-				(1,357,439	)		(6,930	)		8,964		(e	)		(1,355,405	)
Total property, plant and equipment		41			738,829			479,582			-				1,218,452			-		-		-				1,218,452			145,961			(65,248	)				1,299,165
Total assets	$	1,826,905		$	1,544,590		$	508,296		$	(1,727,671	)		$	2,152,120		$	591,946	$	849,341	$	(423,474	)		$	3,169,933		$	153,603		$	(140,751	)			$	3,182,785

(a) Balances as of September 30, 2004
(b) Included in this caption is land of $56,959, buildings and improvements of $95,737, and furniture and equipment of $195
(c) Eliminate investment in subsidiaries
(d) Eliminate intercompany receivables and payables
(e) Eliminate gain on sale of property from U-Haul to SAC

	Quarter Ended December 31,						Changes			Changes
	2004			2003			Dollar			Percentage
AMERCO and Consolidated Entities	(In thousands)
Rental revenue	$	365,131		$	386,456		$	(21,325	)		-6	%
Net sales		42,620			47,212			(4,592	)		-10	%
Premiums		34,634			56,088			(21,454	)		-38	%
Net investment and interest income		18,142			12,827			5,315			41	%
Total revenues		460,527			502,583			(42,056	)		-8	%

Operating expenses		287,962			307,378			(19,416	)		-6	%
Restructuring expenses		-			7,613			(7,613	)		-100	%
Commission expenses		39,243			31,136			8,107			26	%
Cost of sales		21,361			23,908			(2,547	)		-11	%
Benefits and losses		38,603			50,956			(12,353	)		-24	%
Amortization of deferred policy acquisition costs		6,279			11,027			(4,748	)		-43	%
Lease expense		38,506			33,202			5,304			16	%
Depreciation, net (a)		28,282			38,393			(10,111	)		-26	%
Total costs and expenses		460,236			503,613			(43,377	)		-9	%
Earnings (losses) from operations		291			(1,030	)		1,321			-128	%
Interest expense		16,931			31,168			(14,237	)		-46	%
Litigation settlement received		51,341			-			51,341			100	%
Pretax earnings (loss)		34,701			(32,198	)		66,899			-208	%
Income tax benefit (expense)		(13,155	)		10,531			(23,686	)		-225	%
Net earnings (loss)		21,546			(21,667	)		43,213			-199	%
Less: Preferred stock dividends		3,241			3,241			-			0	%
Earnings available to common shareholders	$	18,305		$	(24,908	)	$	43,213			-173	%

	Quarter Ended September 30,						Changes			Changes
	2004			2003			Dollar			Percentage
Life Insurance	(In thousands)
Premiums	$	31,603		$	36,427		$	(4,824	)		-13	%
Net investment income		6,299			4,743			1,556			33	%
Total revenue		37,902			41,170			(3,268	)		-8	%
Operating expenses		12,656			6,020			6,636			110	%
Benefits and losses		22,683			24,359			(1,676	)		-7	%
Amortization of deferred policy acquisition costs		6,003			6,351			(348	)		-5	%
Total expenses		41,342			36,730			4,612			13	%
Earnings (loss) from operations		(3,440	)		4,440			(7,880	)		-177	%
Income tax benefit (loss)		1,119			(2,058	)		3,177			-154	%
Net earnings (loss)	$	(2,321	)	$	2,382		$	(4,703	)		-197	%

	Nine Months Ended September 30,				Changes			Changes
	2004		2003		Dollar			Percentage
Life Insurance	(In thousands)
Premiums	$	97,640	$	112,852	$	(15,212	)		-13	%
Net investment income		17,960		15,420		2,540			16	%
Total revenue		115,600		128,272		(12,672	)		-10	%
Operating expenses		23,907		23,173		734			3	%
Benefits and losses		70,377		80,207		(9,830	)		-12	%
Amortization of deferred policy acquisition costs		18,586		17,044		1,542			9	%
Total expenses		112,870		120,424		(7,554	)		-6	%
Earnings from operations		2,730		7,848		(5,118	)		-65	%
Income tax expense		1,033		2,876		(1,843	)		-64	%
Net earnings	$	1,697	$	4,972	$	(3,275	)		-66	%

Name	Cash Bonus Amount
Gary B. Horton	$	500,000
John C. Taylor	$	200,000
Jack A. Peterson	$	35,000
Ronald C. Frank	$	17,437

Exhibit Number	Description	Page or Method of Filing
2.1	Joint Plan of Reorganization of AMERCO and Amerco Real Estate Company	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed October 20, 2003, file no. 1-11255
2.2	Disclosure Statement Concerning the Debtors’ Joint Plan of Reorganization	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed October 20, 2003, file no. 1-11255
2.3	Amended Joint Plan of Reorganization of AMERCO and Amerco Real Estate Company	Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2003, file No. 1-11255
3.1	Restated Articles of Incorporation of AMERCO	Incorporated by reference to AMERCO’s Registration Statement on form S-4 filed March 30, 2004, file number 1-11255
3.2	Restated By-Laws of AMERCO	Incorporated by reference to AMERCO’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1996, file No. 1-11255
3.3	Restated Articles of Incorporation of U-Haul International, Inc.	Incorporated by reference to AMERCO’s Annual Report on Form 10-K for the year ended March 31, 2003, file no. 1-11255
3.4	Bylaws of U-Haul International, Inc.	Incorporated by reference to AMERCO’s Annual Report on Form 10-K for the year ended March 31, 2003, file no. 1-11255
10.1	~~Settlement~~Credit Agreement, dated June 28, 2005, among U-Haul Leasing & Sales Co., U-Haul Company of Arizona and ~~Release Agreement among PricewaterhouseCoopers LLP, AMERCO,~~U-Haul International, Inc. and ~~SAC Holding Corporation~~Merrill Lynch Commercial Finance Corporation.	Filed herewith *Incorporated by reference to AMERCO’s Current Report on Form 8-K filed July 6, 2005, file no. 1-11255
10.2	~~Property Management~~Security Agreement, dated June 28, 2005, among ~~subsidiaries~~U-Haul Leasing & Sales Co., U-Haul Company of Arizona and U-Haul International, Inc. in favor of Merrill Lynch Commercial Finance Corporation.	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed July 6, 2005, file no. 1-11255
10.3	Guarantee, dated June 28, 2005, made by U-Haul International, Inc. in favor of Merrill Lynch Commercial Finance Corporation.	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed July 6, 2005, file no. 1-11255
10.4	Amended and ~~Galaxy Storage Two, L.P.~~Restated Credit Agreement, dated June 8, 2005, among Amerco Real Estate Company, Amerco Real Estate Company of Texas, Inc., Amerco Real Estate Company of Alabama, Inc., U-Haul Co. of Florida, Inc., U-Haul International, Inc. and Merrill Lynch Commercial Finance Corp.	~~Filed herewith~~Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.5	Security Agreement, dated June 8, 2005, by Amerco Real Estate Company, Amerco Real Estate Company of Texas, Inc., Amerco Real Estate Company of Alabama, Inc., U-Haul Co. of Florida, Inc., U-Haul International, Inc. and the Marketing Grantors named therein in favor of Merrill Lynch Commercial Finance Corp.	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.6	Guarantee, dated June 8, 2005, by U-Haul International, Inc. in favor of Merrill Lynch Commercial Finance Corp.	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.7	Promissory Note, dated June 8, 2005 by Amerco Real Estate Company, Amerco Real Estate Company of Texas, Inc., Amerco Real Estate Company of Alabama, Inc., U-Haul Co. of Florida, Inc. and U-Haul International, Inc.	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.8	Form of Mortgage, Security Agreement, Assignment of Rents and Fixture Filing, dated June 8, 2005, in favor of Morgan Stanley Mortgage Capital Inc.	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.9	Form of Promissory Note, dated June 8, 2005, in favor of Morgan Stanley Mortgage Capital Inc.	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.10	Form of Mortgage, Security Agreement, Assignment of Rents and Fixture Filing, dated June 8, 2005, in favor of Merrill Lynch Mortgage Lending, Inc.	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
10.11	Form of Promissory Note, dated June 8, 2005, in favor of Merrill Lynch Mortgage Lending, Inc.	Incorporated by reference to AMERCO’s Current Report on Form 8-K filed June 14, 2005, file no. 1-11255
31.1	Rule 13a-14(a)/15d-14(a) Certificate of Edward J. Shoen, President and Chairman of the Board of AMERCO and U-Haul International, Inc.	Filed herewith
31.2	Rule 13a-14(a)/15d-14(a) Certificate of ~~Jack~~Jason A. ~~Peterson,~~Berg, Chief ~~Financial~~Accounting Officer of AMERCO	Filed herewith
31.3	Rule 13a-14(a)/15d-14(a) ~~Certification~~Certificate of ~~Robert~~Robet T. Peterson, Chief Financial Officer of U-Haul International, Inc.	Filed herewith
32.1	Certificate of Edward J. Shoen, President and Chairman of the Board of AMERCO and U-Haul International, Inc. pursuant to Section 906 of the Sabanes-Oxley Act of 2002	Filed herewith
32.2	Certificate of ~~Jack~~Jason A. ~~Peterson,~~Berg, Chief ~~Financial~~Accounting Officer of AMERCO pursuant to Section 906 of the Sabanes-Oxley Act of 2002	Filed herewith
32.3	Certificate of Robert T. Peterson, Chief Financial Officer of U-Haul International, Inc. pursuant to Section 906 of the Sabanes-Oxley Act of 2002	Filed herewith