After taking heavy losses in Hurricane Ian, the Florida Hurricane Catastrophe Fund enters the 2023 hurricane season with an estimated $12.3 billion in claims-paying capacity, according to a new report.

The so-called CAT Fund plays a vital role in Florida’s property-insurance system as it provides relatively low-cost reinsurance, which is backup coverage needed by carriers. Under state law, the fund’s maximum potential liability for claims is $17 billion.

It is projected to have about $3.7 billion to pay claims during the upcoming year and also has an estimated bonding capacity of $8.6 billion, according to the report.

The fund is estimated to have a $10 billion loss from Hurricane Ian, which made landfall in September in Southwest Florida and caused widespread damage across the state.

The 2023 hurricane season starts June 1.