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.
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