SACRAMENTO, Calif.--(BUSINESS WIRE)--On May 10, 2007, Allstate Corporation announced that, as of July 1, 2007, it will stop offering new Allstate homeowners insurance and landlord-package insurance policies in California while continuing to provide coverage to and renew existing California homeowners and landlord property insurance customers. Allstate will continue to offer new renters and condominium policies in California.

Allstate is a participating insurance company of the California Earthquake Authority (CEA). Approximately 20 percent of the CEA's current earthquake insurance policies were sold or renewed by Allstate. Taking the past 12 months as an example, about 10 percent of the CEA policies attributable to Allstate's sales activities are for new (as opposed to renewal) homeowners and landlord business. If that level of sales activity continues on and after July 1, 2007, and Allstate continues to renew its own existing homeowners and landlord policies--and therefore existing Allstate-sourced CEA homeowners and landlord earthquake policies also remain in effect and are renewed--the CEA estimates its gross written premium could be reduced by approximately $10 million for the subsequent 12-month period.

Future estimates of the effects on the CEA of Allstate's decision to stop offering new homeowners policies and landlord-package policies in California would depend on the duration and breadth of Allstate's actions, any increase or decrease in Allstate residential property insurance rates and in CEA earthquake insurance rates, other conditions that may develop in California's insurance market, and California regulatory or legislative activity.

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Source: California Earthquake Authority