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Allstate to Halt New Homeowners Policy Sales in California

On May 10 Allstate, California's third-largest home insurer, said that it would stop selling new home insurance policies in the state and would continue to...
May 15, 2007

On May 10 Allstate, California's third-largest home insurer, said that it would stop selling new home insurance policies in the state and would continue to seek a 12 percent increase in the rates charged to its 900,000 current policyholders. Allstate explained that it needed to improve the management of the risks of potential losses from wildfires and fires caused by earthquakes in California. Robert Barge III, Allstate's vice president for California, said that the company's action reflected its responsibility to remain in a strong position to protect customers in California and across the U.S.  Steve Poizner, California's insurance commissioner, said that Allstate's actions in the state reflected its retreat in other markets such as Florida and New York and characterized the company's decision as shortsighted, but acknowledged the company's right to make decisions about where it does business.

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