Bermuda-based insurers' stocks improved yesterday as fears that Hurricane Ernesto would strike the US Gulf Coast receded.

Ernesto, which struck southern Cuba yesterday, was downgraded to a Tropical Storm, but is expected to brush by the southern tip of Florida by tomorrow. It is also expected to gain strength once it crosses Cuba and returns to open water.

However, investors gave reinsurers a boost with Everest Re rising 1.57 percent to $91.48, Arch Capital gaining 1.52 percent to $59.47 and XL Capital improving 1.57 percent to $63.70 in late afternoon trading.

Also rising were Partner Re, up 1.43 percent to $62.96 and Axis, up 1.37 percent to $31.08.