The Florida Hurricane Catastrophe Fund (Cat Fund) has issued itsfiscal year 2008-2009 annual report. Thanks to another no-hurricaneyear, no reimbursement payments for the 2009 contract year wererequired from the fund to its participating companies. However, allindications reveal the need to issue additional debt in 2010. Thedeterioration of the financial markets in 2008 adversely impactedthe fund, which suffered some investment losses. The fund's October2008 bonding estimates reflected a significant reduction in itsclaims paying capacity.
The report noted that 78 percent of the fund's exposure is locatedin Florida's thirty-five coastal counties, making Floridaparticularly vulnerable to hurricane risk. Other significant datafor fiscal year 2008-2009 noted in the report:

• Number of ParticipatingInsurers: 184
• Mandatory Premium Billed:$1,069.3 million
• Total Premium Billed:$1,452.7 million (includes mandatory and optional coverages)
• Exposure: $2.162trillion
• Fund Balance: $4.564 billion(Updated as based on 12/31/09 financial information)
• Mitigation Funding for 2009:$10 million
• Projected Claims PayingCapacity: $18.998 billion ($17.175 billion mandatory) The projectedclaims paying capacity is based on the senior underwriters'estimate of borrowing capacity based on current financial marketconditions.
• Assessment Base: $34.9billion includes surplus lines and all P&C lines exceptworkers' compensation, accident and health, and medical malpracticeuntil June 1, 2010
• Mandatory Coverage RetentionMultiples: 90% 6.6782; 75% 8.0138; 45% 13.3564
• Moody's, Standard &Poor's, and Fitch Ratings: Aa3/AA-/AA

The entire report is available in pdf at www.sbafla.com/fhcf/