Reinsurers are expected to bear the brunt of Hurricane Nicole’s financial impact on Bermuda, even as primary insurers likely see claims for wind and downed trees, damaged roofs, car damage and some business interruptions.

That is the view of ratings service AM Best, which noted that “since primary domestic insurers are heavily reinsured with manageable retentions, it is anticipated that the brunt of the storm’s financial impact will once again fall on reinsurers”.

Nicole was a Category 3 hurricane, with wind gusting up to 136 miles per hour, when it passed directly over the island on Thursday.

It was the first hurricane to strike Bermuda since the double blow of Fay, a Category 1 hurricane, and Gonzalo, a Category 2, during the space of a week in October 2014. The estimated insured losses from those storms was between $200 million and $400 million.

The last Category 3 hurricane to hit Bermuda was Fabian in 2003, which caused insured losses estimated at $300 million, according to AM Best.

In a statement, AM Best said: “In Bermuda, residential dwellings and commercial buildings are well-built, with either limestone or concrete blocks, and roofs are mostly made of limestone tiles cemented together. Building codes on the island are very strict, allowing for safer structures that can withstand sustained winds of over 100mph.

“Nicole’s maximum sustained wind speed of 120mph was in excess of the island’s building codes, which put the island’s structures to the test.”

AM Best anticipates that domestic insurers will be insulated from any major financial impact resulting from Nicole, given their extensive use of property quota share reinsurance.

It added that Nicole does not represent a material financial impact for reinsurers and should be easily absorbed.

Meanwhile, Bradley Kading, executive director of the Association of Bermuda Insurers and Reinsurers, praised the island’s resilience to storms, noting its strong building codes and “culture of preparedness”.

He added: “Bermudians protect themselves, uniformly prepare for storms, and help their neighbours afterwards. Everyone uses insurance — which protects people and property and leads to a faster recovery with an economic stimulus. In this way, the island is a role model for other jurisdictions.”

Stephen Weinstein, general counsel of RenaissanceRe, thanked the Bermuda Government, Bermuda Police Service, Royal Bermuda Regiment and Belco who “prepared us for the storm, communicated about it effectively, and have led a rapid cleanup and recovery effort”.

He added: “The island’s resilient infrastructure and ethos of community preparation served us all very well, and that’s why Hurricane Nicole was not a human disaster.

“As we see the growing human toll from other recent hurricane landfalls, we hope Bermuda can provide an example so that other island and coastal residents can be equally safe from these kind of storms in the future.”

Ross Webber, CEO of the Bermuda Business Development Agency, said: “Bermuda has a fully robust infrastructure that caters to the modern needs of international business. We’re strong, united and very different to other offshore centres.”