The Florida Hurricane Catastrophe Fund (Cat Fund) has issued its fiscal year 2008-2009 annual report. Thanks to another no-hurricane year, no reimbursement payments for the 2009 contract year were required from the fund to its participating companies. However, all indications reveal the need to issue additional debt in 2010. The deterioration of the financial markets in 2008 adversely impacted the fund, which suffered some investment losses. The fund's October 2008 bonding estimates reflected a significant reduction in its claims paying capacity.
The report noted that 78 percent of the fund's exposure is located in Florida's thirty-five coastal counties, making Florida particularly vulnerable to hurricane risk. Other significant data for fiscal year 2008-2009 noted in the report:

Number of Participating Insurers: 184
Mandatory Premium Billed: $1,069.3 million
Total Premium Billed: $1,452.7 million (includes mandatory and optional coverages)
Exposure: $2.162 trillion
Fund Balance: $4.564 billion (Updated as based on 12/31/09 financial information)
Mitigation Funding for 2009: $10 million
Projected Claims Paying Capacity: $18.998 billion ($17.175 billion mandatory) The projected claims paying capacity is based on the senior underwriters' estimate of borrowing capacity based on current financial market conditions.
Assessment Base: $34.9 billion includes surplus lines and all P&C lines except workers' compensation, accident and health, and medical malpractice until June 1, 2010
Mandatory Coverage Retention Multiples: 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/

Special Reports /

Cat Fund Issues FY 2008-2009 Report

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