Guy Carpenter, a risk and reinsurance intermediary, notes in a recent report that Hurricane Rita is located approximately 175 miles west of Key West in Florida and packs sustained winds of around 120 miles per hour, according to the National Hurricane Center. The storm is predicted to track west and strengthen over the next 24 hours. Hurricane-force winds extend 45 miles from the centre of the storm, while tropical storm-force winds extend 140 miles.

All hurricane warnings in Florida have been discontinued after the storm moved away from the state. Some 80,000 residents in the Florida Keys were urged to evacuate their homes as Rita passed between the island chain and the northern coast of Cuba. Around 230,000 people were evacuated in Cuba. However, no major damage has been reported in either country. Although tens of thousands of households lost power in northern Cuba and South Florida and there were reports of localized flooding and wind damage, officials said the storm caused minimal damage.

Rita is currently moving through the Gulf of Mexico. The hurricane strengthened to a category 4 storm this morning and is heading towards the Texas coast. The long-term forecast has Rita coming ashore near Galveston in Texas on Saturday morning, although the NHC has not ruled out possible landfall in Louisiana or northern Mexico.