[StBernard] Allstate to stop insuring Calif. homes

[Westley Annis]

Allstate to stop insuring Calif. homes 
Insurer seeks to limit exposure to natural catastrophes
The Associated Press
Updated: 9:15 a.m. CT May 11, 2007
CHICAGO - Allstate Corp. will stop writing new homeowners policies in
California beginning in July, the company said Thursday.

An Allstate spokesman said the move was to help control its catastrophe
exposure in the state, which is prone to wildfires and earthquakes.

Allstate has also trimmed coastal exposure in other states that are prone to
natural catastrophes. Allstate has also stopped writing new homeowners
policies in Connecticut, Delaware, Florida and New Jersey as well as in
eight coastal New York counties.

The move in California will not affect current customers, nor will it affect
auto insurance. Allstate agents in the state will continue to work with
customers, but will offer new homeowners customers insurance through partner
Pacific Specialty Insurance Co.

Northbrook, Ill.-based Allstate and other homeowners insurers have had a
contentious relationship with insurance regulators in the state over
homeowners insurance prices.

Though several large insurers cut prices in the state lately, Allstate in
September asked for an average 12 percent increase. The request is still
pending.

The spokesman said the move to stop writing new policies in California was
not driven by insurance rates, but was purely a move to limit its exposure
to catastrophe.

Allstate has already tightened its standards for writing coverage in the
state, one of its largest in terms of customers, and has already stopped
offering earthquake insurance.


In the first quarter of 2007, Allstate said it wrote 11,000 new homeowners
policies in California, a drop from the 16,000 it wrote in the first quarter
of 2006, the spokesman said.

C 2007 The Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed.Copyright 2007 The
Associated Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
URL: http://www.msnbc.msn.com/id/18608791/


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