Bermuda insurers saw their market capitalisation plunge by hundreds of millions of dollars yesterday, as Wall Street suffered its steepest decline in more than two months.

The Dow Jones Industrial Average tumbled by 340 points, after government figures showed US unemployment rose last month, fuelling fears over the strength of the economy.

XL Capital Ltd. was the worst-hit Bermuda company, as its share price fell $1.20 (six percent) to close on $18.62.

Validus Re, White Mountains and Allied World all saw their stock prices tumble by more than three percent.

Few escaped the carnage, as Everest Re, Endurance Specialty Holdings, IPC Holdings, Max Capital, Montpelier Re and Primus Guaranty all fell by more than two percent.

Troubled US insurer American International Group, which has offices in Bermuda, also shed six percent.

Bond insurers bucked the trend, as RamRe soared 35 percent and Syncora Holdings (formerly known as Security Capital Assurance) shot up 12 percent.

Read more on page 25