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A.M. Best Upgrades Credit Ratings of Repwest Insurance Company

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A.M. Best has upgraded the Financial Strength Rating (FSR) to A-
(Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating
(Long-Term ICR) to "a-" from "bbb" of Repwest Insurance Company (Repwest)
(Phoenix, AZ). The outlook of the Long-Term ICR has been revised to
stable from positive while the FSR outlook remains stable. Repwest is a
wholly owned subsidiary of AMERCO (NASDAQ:UHAL), a publicly
traded holding company that is also the parent of U-Haul International,
Inc. (U-Haul).

The ratings reflect Repwest's balance sheet strength, which A.M. Best
categorizes as very strong, as well as its strong operating performance,
limited business profile and appropriate enterprise risk management.

These rating actions reflect Repwest's continued progress in restoring
its balance sheet and risk-adjusted capital and the long-standing
improvements in operating performance. Prior to the turnaround, Repwest
results were adversely impacted by non-core lines of business, including
excess workers' compensation, but these lines have since been
discontinued and in runoff. Since then, Repwest has produced
consistently favorable results, contributing to a combined ratio that
outperforms the industry composite. The company's elevated underwriting
expense ratio is purely a function of its high commission expense paid
to an affiliate agency.

Negative ration action could occur if there is a significant erosion of
Repwest's capital base due to deterioration in underwriting performance.
While unlikely in the near term, positive rating action could occur if
underwriting results continue to stabilize and improve capitalization.

This press release relates to Credit Ratings that have been published
on A.M. Best's website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best's
Recent
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Understanding
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
Guide
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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