[StBernard] AllState to cut back on Gulf Coast Coverage

[Westley Annis]

Allstate to cut back on Gulf Coast coverage

NORTHBROOK, Ill. (AP) — Allstate says the insurer will scale back its 
homeowners coverage in the Gulf Coast region.

CEO Edward Liddy today said Allstate made that decision after Hurricane 
Katrina caused it to take an ``unacceptable'' loss of $1.5 billion in 
the third quarter.

Liddy says Allstate will continue helping thousands of its customers in 
Louisiana and the surrounding area. But he says his company must reduce 
its exposure in the region because of the risk of additional heavy 
catastrophe losses.

Allstate is the nation's second-largest personal lines insurer after 
State Farm.

It similarly didn't renew coverage for 95-thousand homeowners in 
hurricane-battered Florida last year and also moved quickly to raise 
rates there.