Hurricane Dorian has hit the Bahamas as one of the strongest Atlantic storms on record and will threaten Florida and other eastern US states as it tracks up the coastline this week.

The maximum-category five hurricane is bringing winds of around 295 kmh, along with stronger gusts, while tide levels in parts of the Bahamas may rise up to seven metres.

Dorian will continue to pound the Bahamas today before moving “dangerously close” to Florida over the next 36 hours, the National Hurricane Centre forecasts.

“Life-threatening storm surge and dangerous hurricane-force winds are expected along portions of the Florida east coast through mid-week,” it says.

“Only a slight deviation to the left of the official forecast would bring the core of Dorian near or over the Florida east coast.”

AM Best says the first significant Atlantic storm of this year’s season has the potential to become an extraordinary event for Florida-focused insurers, depending on its path.

Many of the local Florida-only property insurers significantly exposed to catastrophes are not rated by AM Best, while those that are purchase significant reinsurance.

“For reinsurers, there remains too much uncertainty to reasonably estimate the financial impact to rated insurers at this time,” it says.

“The impact will greatly depend on the ultimate track and characteristics of the storm, cedents’ retention levels, as well as the amount of losses absorbed by third-party capital.”

President Donald Trump warned yesterday that Dorian threatens to be an “absolute monster”.

Mandatory evacuations and states of emergency have been announced in states at risk from the hurricane.