Bermuda's insurance industry bounced back yesterday after a tough day's trading on Wednesday in the wake of the American International Group (AIG) bailout by the US government.

Stocks were up across the board, with AIG climbing 31.22 percent (64 cents) to close up at $2.69, while Ram Holdings Ltd. arrested its slide with a 39.42 percent (54 cents) increase and Castlepoint Holdings advancing 11.96 percent ($1.20).

Other companies to benefit were XL, which rose 11.9 percent ($1.93) to finish on $18.15, and Syncora, which closed the day up 13.64 percent (27 cents) on $2.25.

Firms were also remaining tight-lipped about their exposure to investments in AIG and Lehman Brothers or whether they were seeking to pick up business and clients in the fall-out from AIG.

Renaissance Re declined to comment on the matter, while XL Capital Ltd. said it would not speculate on how customers would respond to the current market uncertainty, but was in the business of meeting the needs of its existing and new clients and would respond wherever possible.