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

All hurricane warnings in Florida have been discontinued afterthe storm moved away from the state. Some 80,000 residents in theFlorida Keys were urged to evacuate their homes as Rita passedbetween the island chain and the northern coast of Cuba. Around230,000 people were evacuated in Cuba. However, no major damage hasbeen reported in either country. Although tens of thousands ofhouseholds lost power in northern Cuba and South Florida and therewere reports of localized flooding and wind damage, officials saidthe storm caused minimal damage.

Rita is currently moving through the Gulf of Mexico. Thehurricane strengthened to a category 4 storm this morning and isheading towards the Texas coast. The long-term forecast has Ritacoming ashore near Galveston in Texas on Saturday morning, althoughthe NHC has not ruled out possible landfall in Louisiana ornorthern Mexico.