FHCF Enters Hurricane Season with Full Limit Available
The State Board of Administration has announced the estimated borrowing capacity, estimated claims-paying capacity, and projected balance of the Florida Hurricane Catastrophe Fund as of December 31, 2017. These estimates relate to the FHCF’s expected ability to pay reimbursements to insurers from losses occurring in the 2017-2018 Reimbursement Contract Year.
The FHCF’s total estimated claims-paying capacity over the next 12 months is $25.7 billion, which amount exceeds the $17 billion statutory limit on the FHCF’s single-season obligations. This includes $14.9 billion in liquid resources, plus existing pre-event notes and the FHCF’s anticipated ability to borrow money after an event.
The FHCF’s available capacity exceeding its single-season limit becomes available for a subsequent season if hurricanes deplete the FHCF’s resources in the current season.