Bermuda-based insurance stocks were pounded for a third consecutive day yesterday as it became clear that damage from Hurricane Katrina on the US Gulf Coast was worse than originally thought.

IPC Re slumped 3.5 percent to close at $39.13 while Arch Capital fell 3.04 percent to $43.35 in late afternoon trading.

PXRE was down 2.86 percent to $23.44, Axis dropped 2.39 percent to $28.19, Montpelier Re fell 2.07 percent to $32.71.

Other catastrophe and property and casualty reinsurers dropping by more than one percent were Aspen, Everest Re and Platinum.

Reinsurers are expected to take much more of the brunt of claims from Katrina than they did from the four smaller hurricanes that swamped Florida last year.

Bucking the trend was RenaissanceRe, up 0.27 percent to $45.02.

Insurance brokers, who might expect to benefit from higher insurance rates after Katrina, were all up.