Florida Hurricane Catastrophe Fund Publishes 2015 Annual Probable Maximum Loss Report
Apr 1, 2015
The Florida Hurricane Catastrophe Fund issued its statutory annual report on probable maximum losses, corresponding financing strategies and potential assessments today, April 1, 2015.
To view the report, click here.
During its 2014 Contract Year, the FHCF collected approximately $1.22 billion in reimbursement premium from participating insurers (net of expenses, mitigation and debt service). Its total preliminary cash balance as of December 31, 2014 was $10.94 billion.
For the 2015 Contract year, the FHCF is projected to collect $1.22 billion in net reimbursement premium, with a total projected cash balance as of December 31, 2015 of $12.18 billion.
Currently, the FHCF has $2 billion in proceeds from the Series 2013A pre-event bond issue.
Should an assessment be required, the FHCF reminded that the maximum assessment percentage is 6 percent for any one Contract Year’s losses and 10 percent on all Contract Years’ losses combined. No such post-event debt is outstanding at this time.
Today’s report includes 50-year, 100-year and 250-year probable maximum losses. It also provides analysis of all reasonable financing strategies for each such probable maximum loss, including the amount and term of debt instruments; specification of the percentage assessments that would be needed to support each of the financing strategies; and calculations of the aggregate assessment burden on Florida property and casualty policyholders for each of the probable maximum losses.
Should you have any questions or comments, please contact Colodny Fass.
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