Office of Program Policy Analysis and Government Accountability
Office of Program Policy Analysis and Government Accountability

State Board of Administration of Florida

Florida Hurricane Catastrophe Fund

For assistance, call 850-488-4406 or visit

What is the purpose of the program?

The Florida Hurricane Catastrophe Fund (FHCF) was created in November 1993 during a special legislative session after Hurricane Andrew caused over $15 billion in losses. The purpose of the FHCF is to protect and advance the state's interest in maintaining insurance capacity in Florida by providing reimbursements to insurers for a portion of their catastrophic hurricane losses.

Who does the program serve?

This tax-exempt state trust fund serves both private insurers and Florida citizens.

Where does the fund get the money to pay for catastrophic losses?

The FHCF is financed by several sources. Reimbursement premiums paid by participating insurers are the primary source of funding to cover FHCF's reimbursement obligations. In addition to these premiums, other sources of funds to pay FHCF claims include investment income, proceeds from pre-event bonding, recoveries from reinsurance and other risk-transfer transactions, and proceeds from post-event revenue bonds.

Who oversees and advises the program?

The State Board of Administration (SBA) oversees the fund. As of January 2022, the board had $253.1 billion under management, of which the FHCF comprised 5.1%.

Fourteen full-time equivalent employees manage the fund. A nine-member advisory council provides the SBA with information and advice in connection with its duties.


How are these activities funded?

The SBA does not receive legislative appropriations for its activities related to the operations of the Florida Hurricane Catastrophe Fund. The cost of administering the fund is supported by reimbursement premiums collected from insurers.

The Florida Hurricane Catastrophe Fund's Fiscal Year 2021-22 total operating budget was $9,700,255.85.


Fiscal Year 2021-22 FHCF Fund Balance. For the 2021-22 contract year, the FHCF’s available liquid resources were impacted due to an increase in projected ultimate losses for Hurricane Irma, which is now projected to be $7.8 billion. Hurricane Michael’s projected ultimate loss to the Fund remained at $1.45 billion. As of December 31, 2021, the FHCF had an estimated fund balance of approximately $11.3 billion. The FHCF also had $3.5 billion in Series 2020A pre-event bond proceeds providing additional liquidity for the 2021 season. Regardless of this fund balance, the FHCF would still need to rely on post-event bonding and emergency assessments to pay claims if a storm or storms of sufficient magnitude impacted Florida.

Hurricane Catastrophe Fund Coverage. The 2022 Legislature enacted Ch. 2022-132Laws of Florida, which, among other provisions, authorizes the State Board of Administration to provide Florida Hurricane Catastrophe Fund (Cat Fund) coverage to authorized insurers or Citizens Property Insurance Corporation (Citizens) for the policies of unsound insurers that the authorized insurer or Citizens assumes or otherwise provides coverage. The authorized insurer or Citizens may obtain Cat Fund coverage for such policies either through the authorized insurer’s or Citizens’ reimbursement contract with the Cat Fund or by accepting an assignment of the unsound insurer’s contract with the Cat Fund.

Where can I find related OPPAGA reports?

A complete list of related OPPAGA reports is available on our website.

Where can I get more information?

Annual Report of Aggregate Net Probable Maximum Losses, Financing Options, and Potential Assessments, Florida Hurricane Catastrophe Fund, February 2022.
2020 Annual Report, Florida Hurricane Catastrophe Fund, 2020.
2021-2022 Annual Regulatory Plan, Florida Hurricane Catastrophe Fund, October 1, 2021.

Websites of Interest

State Board of Administration

What are the applicable statutes?

Sections 215.555 through 215.559, Florida Statutes.

Whom do I contact for help?

Gina Wilson, Chief Operating Officer, 850-488-4406