US stocks completed their worst two-day slide since October 1987 — and Bermuda's international companies did not escape the sell-off.

Disappointing corporate outlook and poor sales figures from major retailers fuelled fears of a major slowdown, as the Dow Jones Industrial Average shed 440 points, or nearly five percent.

Added to the five-percent drop on Wednesday, it means US stocks lost nearly 10 percent of their value in the space of two days.

Worst hit among local insurers yesterday was XL Capital, which saw its market capitalisation plunge 21 percent, as its share price fell $2.12 to close on $7.95.

The Island's publicly-traded bond insurers also saw double-digit declines. Primus Guaranty fell 15 percent and Assured Guaranty 11 percent, while Ram Holdings and Syncora Holdings were both off 14 percent.

Aspen fell seven percent, while Arch Capital, RenaissanceRe and White Mountains all saw falls of around five percent.

One company to emerge strongly from the carnage was CastlePoint Holdings, which rose $1.18 (14 percent) to close on $9.45, after declaring a $13.2 million net loss yesterday.

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