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.

Several oil companies have halted operations and evacuated rigs in the Gulf of Mexico as Rita moves toward major energy production areas. Authorities along the US Gulf Coast are preparing for the arrival of Rita. The Federal Emergency Management Agency (FEMA) announced it has aircraft and buses available to evacuate residents in areas threatened by the hurricane.

A state of emergency has been declared in Texas and Louisiana, and mandatory evacuations orders have been issued. Texas Governor Rick Perry advised residents in the state's coastal regions to begin plans for evacuation, while Mayor Lyda Ann Thomas in Galveston issued a state of emergency. In Louisiana, New Orleans is on high alert as the Army Corps of Engineers continue to repair the city's weakened levee system after Hurricane Katrina devastated the region in late August. The Army Corps of Engineers said the levees in New Orleans can currently only handle up to 6 inches of rain and a storm surge of 10 to 12 feet.

Sources: National Hurricane Center, Associated Press, BBC News, CNN News, Reuters News, Agence France Presse, The Fort-Worth Star-Telegram

This report was reprinted with written permission from Guy Carpenter. For more CAT-i reports and further information on the service, please click http://www.guycarp.com.

Special Reports /

Rita Grazes Cuba and Florida, Enters Gulf

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