1. UTSA Financing Risk Management John DeLaHunt, MBA, ARM UTSA Risk & Life Safety Manager February 20, 2016 1 Business Affairs: Your Partner for Successful Solutions

2. Policies in Place for People Workers Compensation (WCI) * Unemployment Compensation (UCI) * Directors & Officers (D&O) * Commercial Crime * Cyber liability (new in 2016) FY15 Premiums$780,147 FY16 Premiums (estimated)$779,215 * Offered through UT System to all UT institutions (“System Coverage”) 2 Business Affairs: Your Partner for Successful Solutions

3. Policies in Place for Property Real Property (CPPP)* Vehicles (liability, physical damage, etc)* Scheduled equipment* Fine Arts* Mobile equipment * Offered through UT System to all UT institutions (“System Coverage”) FY15 Premiums$373,521 FY16 Premiums (estimated)$405,047 3 Business Affairs: Your Partner for Successful Solutions

4. Policies in Place for Events Supplemental Excess General Liability –Festivals (Texas Folklife, Asian, Homecoming) Tenant User Liability Insurance Program –Third party (student orgs, e.g.) events Sports/Academic Camp Insurance FY15 Premiums$36,549 FY16 Premiums (estimated)$46,955 4 Business Affairs: Your Partner for Successful Solutions

5. UTSA Insurance Premiums FY15 FY16 (estimated) People (WCI, UCI, D&O, Crime, Cyber) $780,147$779,214 Property (CPPP, Auto, Mobile Equipment, Equipment) $373,522$405,047 Liability (Festivals, TULIP, Camps, D/B) $36,549$46,955 Total$1,190,218$1,231,217 5 Business Affairs: Your Partner for Successful Solutions

6. CPPP Fire/AOP Structure LossFinancing up $1B Retained $1B $5M Commercial Insurance $5M $250k 50% institution w/loss (5 yr amortization) 50% all other institutions (5 yr amortization) $250k $0 Deductible – institution w/loss 6 Business Affairs: Your Partner for Successful Solutions

7. CPPP Wind & Flood Structure LossFinancing Up $150M Retained $150M $50M Commercial Insurance $50M $250k 40% Debt Svc Institution w/loss (20-30 yr amort.) 60% Debt Service All other institutions (deferred capitalization on property fund, 20-30 yrs) $250k $0 Deductible (institution w/loss) 7 Business Affairs: Your Partner for Successful Solutions

8. UTSA Fire/AOP Cash Flows $0 Year 0 -$250 Year 2Year 1Year 4Year 3Year 5 Following Catastrophic Property Loss (thousands of dollars) -$475 -$25 UTSA suffers the loss Any sister institution suffers the loss -$25 -$475 8 Business Affairs: Your Partner for Successful Solutions

9. Retention CPPP - Fire/AOP and W&F Exposure –Property loss >$250k Deductible if UTSA suffers the loss –$250k per occurrence, both programs Fire/AOP Replenishment over 5 years –$475k per year if UTSA suffers the loss –~$25k per year if another campus suffers the loss W&F Debt Service over 20-30 years –$20M if UTSA suffers the loss –~$1.5M if another campus suffers the loss 9 Business Affairs: Your Partner for Successful Solutions

10. Retention Employment Practices Exposures –Wrongful Termination –Harassment/Retribution –Denial of Tenure –Civil rights actions –Other federal causes Deductibles –$100,000 individual per occurrence –$300,000 institution per occurrence 10 Business Affairs: Your Partner for Successful Solutions

11. Retention Tort Liability Exposures –Premises defect –Tangible personal property –Motor-driven equipment Limit of Liability – fully retained –$250,000 individual, per occurrence –$500,000 limit to individuals, per occurrence –$100,000 property damage –$600,000 total 11 Business Affairs: Your Partner for Successful Solutions

12. Retention Summary ProblemInsuranceExposure Property Loss to UTSA - Fire/AOP CPPP $250k Deductible $475k Fund Replenishment for 5 yrs Property Loss to UTSA - Wind and Flood CPPP $250k Deductible 20-30 yrs debt service on $20M Property Loss in system - Fire/AOP CPPP ~$25k Fund Replenishment for 5 yrs Property Loss in system - Wind and Flood CPPP 20-30 yrs debt service on ~$1.5M Deferred Capitalization Employment PracticesD&O $100k individual $300k institution Tort Liability $250k Per person $500k Per occurrence $100k Property Damage 12 Business Affairs: Your Partner for Successful Solutions