NOTICE IS HEREBY GIVEN by the State Board of Administration of Florida (the Board) of the estimated borrowing capacity, estimated claims-paying capacity, and projected balance of the Florida Hurricane Catastrophe Fund (the Fund) as of December 31, 2011, in compliance with the requirements of Section 215.555(4)(c)2., Florida Statutes. These estimates relate to the 2011-2012 Contract Year. The Fund’s projected post-event borrowing capacity estimate is $12 billion. Given the current state of the financial markets, the range of potential borrowing capacity estimates is dependent on many factors, such as: the size of the event, the markets accessed, the time necessary to access such markets, and the interest rates utilized. The estimated borrowing capacity and projected available year-end cash balance, together with other liquid resources, provide the Fund with a total estimated claims-paying capacity of $18.551 billion over the next twelve months. Greater detail can be obtained in the “May 2011 Estimated Claims Paying Capacity Report,” which can be found on the Fund’s website at www.sbafla.com/fhcf/ under “Bonding Program.” The obligation of the Board for the payment of reimbursable losses is limited in Section 215.555(4)(c)2., Florida Statutes, and shall not exceed the actual claims-paying capacity of the Fund. The projected year-end balance on December 31, 2011, is estimated to be $7.25 billion, which represents the amount of assets available to pay claims, not including any bond proceeds, resulting from Covered Events which may occur during the June 1, 2011 through May 31, 2012 Contract Year. The Board recognizes that its good faith estimate is being made while highly volatile global financial market conditions exist; therefore, changing market conditions can dramatically impact the Fund’s actual claims-paying capacity either positively or negatively. Current conditions may or may not be the same if and when the Board determines that it is necessary to seek the issuance of revenue bonds.