Exempt companies in Bermuda have urged their staff not to travel unless absolutely necessary as the threat of retaliation from Iraq and its allies looms over the US.

A number of companies released warnings to their employees yesterday only after the US launched missiles on Baghdad in a bid to target Saddam Hussein.

A spokesman for ACE Group of Companies said: "As a result of the military action in Iraq, ACE has asked its employees to undertake only essential business travel.

"We are encouraging video and tele-conferencing as alternatives to travel."

Vice-president of the Information Technology department for AON Bermuda Laurence Noble said the company's head office in Chicago had issued a tiered warning to it thousands of staff around the globe, including on the Island.

He said: "The advisory is actually saying the company does not want any one travelling for businesses purposes, but it's up to the employees' own discretion.

"But the advisory then goes through four tiers, with the first one being a complete travel ban to certain countries. The next level is travel restrictions, where it states that business travel is highly discouraged and should be deferred. Any travel needs to be pre-approved by senior management; The third tier is that non-essential business travel should be deferred."

The Aon warning advises that staff can travel to safe locations, but it offered some safety tips on what to look out for and what to consider.

And Mr. Noble said destinations in the US and the UK were considered safe, although Aon's offices in the US have undergone greater security measures.

However, Montpelier Re-Insurance said, while it was trying to be cautious, it was attempting to operate as per usual.

Media spokeswoman Keil Gunther said: "We are definitely monitoring the situation. We actually have people flying out tonight (Thurs) and I'm flying out tomorrow (Fri) to New York.

"We are being cautious, but life and business has to go on."