Stocks of Bermuda-based insurance companies were battered yesterday after some warned analysts that their investment income would decline in the third quarter.

The warnings came at the annual Bermuda Angle conference, where Bermuda-registered insurers meet with influential stock analysts to give their forecasts and discuss the outlook for the year.

XL Capital warned yesterday that the weak investing environment this quarter would affect earnings.

Its stock dropped 4.73 percent or $3.70 to close at $74.46 after Salomon Smith Barney revised its earnings estimate for the quarter as a result.

Also hard hit was ACE, which gives its presentation today, down 5.92 percent or $1.92 to $30.49.

Partner Re, which also gave its presentation yesterday, fell $1.32 or 2.69 percent to $47.68.

Max Re bucked the trend when its stock rose 2.5 percent or 25 cents to close at $10.26.

The company, which expected to announce a loss for the third quarter, announced last week that it was refocusing on traditional insurance underwriting after its portfolio of hedge fund led investments had performed poorly.

Other losers included: IPC Re, down 2.48 percent to $29.49, Everest Re, down 0.73 percent to $57.44, Trenwick, down 6.52 percent to $4.30 and White Mountains, down 2.56 percent to $305.