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Despite Protections, P&C Losses Lead to Higher Rates

As is the case with the majority of the energy-utilities industry, UNS Energy Corp.s P&C risk portfolio is balanced between casualty risks from the operation of high-voltage electricity and property exposures stemming from multibillion-dollar power-generation facilities. These property risks are insured by FM Global.

By Anya Khalamayzer | Updated on September 17, 2012

As is the case with the majority of the energy-utilities industry, UNS Energy Corp.’s P&C risk portfolio is balanced between casualty risks from the operation of high-voltage electricity and property exposures stemming from multibillion-dollar power-generation facilities. These property risks are insured by FM Global.

On the property side, UNS has sustained several losses in the range of $3 million to $8 million in the past five years due to a series of destructive weather events that included a 2007 flood near its service-center office in Tucson that caused UNS’ largest property loss of the decade—affecting its call-center, risk-management, human-resources and payroll departments. (The company has since moved all corporate functions into a new office in the city’s downtown area.) 

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