NOTICE IS HEREBY GIVEN by the State Board of Administration of Florida (the Board) of its revised estimate of the borrowing capacity of the Florida Hurricane Catastrophe Fund (the Fund) and the projected balance of the Fund as of December 31, 2009, in compliance with the requirements of Section 215.555(4)(c)2., Florida Statutes. This revision is made necessary by CS/CS/CS/HB 1495, which became law after the prior notice was published. The projected year-end balance on December 31, 2009, is estimated to be $4.460 billion, which represents the amount of assets available to pay claims, not including any bond proceeds, resulting from Covered Events which may occur during the June 1, 2009 through May 30, 2010 Contract Year. The Funds projected post-event borrowing capacity estimate is $8 billion. Given the current state of the financial markets, the range of potential borrowing capacity estimates is dependent on many factors, such as: the size of the event, the markets accessed, the time necessary to access such markets, and the interest rates utilized. The estimated borrowing capacity and projected available year-end cash balance, together with other liquid resources, provides the Fund with a total estimated loss reimbursement capacity of $15.960 billion over the next twelve months. Greater detail, can be obtained in the May 2009 Estimated Loss Reimbursement Capacity Report, Assumes passage of CS/CS/CS/HB 1495, Revised 5/12/09, which can be found on the Funds website at www.sbafla.com/fhcf/ under Bonding Program. The obligation of the Board for the payment of reimbursable losses is limited in Section 215.555(4)(c)2., Florida Statutes, and shall not exceed the actual claims-paying capacity of the Fund. The Board recognizes that its good faith estimate is being made while highly volatile global financial market conditions exist; therefore, changing market conditions can dramatically impact the Funds actual loss reimbursement capacity either positively or negatively. Current conditions may or may not be the same if and when the Board determines that it is necessary to seek the issuance of revenue bonds.
- Estimated Borrowing Capacity
