OPPAGA text logo with graphic of FL historic capitol
OPPAGA text logo with graphic of FL historic capitol

State Board of Administration of Florida

Florida Hurricane Catastrophe Fund

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. Through its reimbursement program, it helps ensure that companies are willing to write policies with relatively low and stable rates.

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

The Florida Hurricane Catastrophe Fund 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.

As of February 29, 2020, the fund's assets had a market value of $13.3 billion.

Who oversees and advises the program?

The State Board of Administration (SBA) oversees the fund. As of February 29, 2020, the board had $206.9 billion under management, of which the hurricane catastrophe fund comprised 6.5%.

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 2019-20 total operating budget is $8,778,138.44.


Fund Reserves. From 2006 to 2016, Florida experienced minimal storm activity. As a result, the Florida Hurricane Catastrophe Fund accumulated sufficient reserves to prepare for future storms. The FHCF’s available liquid resources have since declined due to $7.45 billion of projected ultimate losses for Hurricane Irma and Hurricane Michael.  As of December 31, 2019, the FHCF had an estimated fund balance of approximately $10.3 billion. Regardless of this fund balance, the FHCF might still need to rely on post-event bonding and emergency assessments to pay claims if a storm or storms of sufficient magnitude impacted Florida.

The FHCF collected approximately $1.2 billion in reimbursement premiums and interest earnings, net of expenses and debt service, for the 2019-2020 contract year and additional loss reserves from Hurricane Irma of $1.0 billion for a total preliminary fund balance as of December 31, 2019 of $10.3 billion. The FHCF is projected to collect approximately $1.4 billion in reimbursement premium and interest earnings, net of expenses and debt service, for the 2020-2021 contract year, which results in a total projected fund balance of $11.7 billion as of December 31, 2020. 

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 2020.
2018 Annual Report, Florida Hurricane Catastrophe Fund, 2018.
2019-2020 Annual Regulatory Plan, Florida Hurricane Catastrophe Fund, October 1, 2019.

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?

Anne Bert, Chief Operating Officer, 850-488-4406