The Florida Cabinet received a bit of encouraging news recently about the state’s tenuous hurricane catastrophe fund when the head of Florida’s investments told them a loosening credit market provides the ability to bond an additional $5 billion, if needed.
“That’s good news, very good news,” said Chief Financial Officer Alex Sink, noing that several months ago the state thought it might be able to get only $3 billion worth of bonds.
Ash Williams, director of the State Board of Administration, said Florida could financially withstand a severe storm costing about $22 billion today. The Florida Hurricane Catastrophe Fund now has an exposure of more than $28 billion with less than $8 billion on hand to pay claims.
The Florida Insurance Council urged state officials to continue looking for other options to ensure the “cat” fund can meet its financial obligations.
Was this article valuable?
Here are more articles you may enjoy.
Chubb Q1 Net Income Increases 74% on Fewer Catastrophe Losses 
Palm Beach Billionaires Feud Over Who’s Really Protecting the Everglades 
Three Sentenced in Bear-Suit Attacks Insurance Fraud Case 
Oil Trader CFOs Say Hormuz Closure Driving Wave of Disputes From This Issue
