Reviewing the amount of capacity authorized in relation to the amount taken up over the last three years, there is a clear indication that in 2012, where reinsurers deemed pricing to be adequate, they were willing to authorize significant participations. This is a return to the behavior of most of the recent renewal periods where very small adjustments in price may bring in significant additional capacity, creating something of a feast or famine dynamic. Notably, for Florida programs there were more reinsurers willing to deploy capacity at lower layers than we have seen in the past. These lower layers have typically been more capacity constrained as there have been fewer reinsurers in the broader market willing to participate particularly below the Florida Hurricane Catastrophe Fund layer.
Reinsurers in 2011 were generally unwilling to provide larger line sizes amid heavy losses and uncertainty in addressing model version changes. This in turn led to a more restricted market. By contrast, at June 1, 2012, average utilization of authorized capacity based on preliminary analysis was 89 percent, returning to the levels of 2010, whereas April to June 2011 utilization rates were higher at 94 percent.