FLORIDA CAT FUND BOASTS RECORD $17.4BN IN CLAIMS-PAYING ABILITY

The Florida Hurricane Catastrophe Fund, the state’s property insurance reinsurer, is in the best financial condition in its two decades of operation, with $17.4bn in claims-paying capacity with the approach of the Atlantic hurricane season that commences June 1. The Cat Fund’s advisory council last week approved estimates of the claims-paying capacity and a projection that it will have $400m more on hand than its potential obligations for the year. The council also said that the Cat Fund may borrow up to $7.5bn as part of its claims-paying capacity in the event of a major storm. Acting chief operating officer Anne Bert said that the borrowing capacity gives the fund “flexibility” if it chooses to save some of its cash reserves for the following storm season. Overall capacity also includes $1bn in retrocessional coverage.