In an attempt to limit future losses from hurricanes, AllstateInsurance will not renew 95,000 residential homeowner policies inFlorida due, in large part, to the $2 billion in claims it paidafter Hurricanes Charley, Frances, Ivan, and Jeanne.

“The hurricane season of 2004 was an unprecedented event, but itillustrated to us the reality of hurricane risk in the state ofFlorida,” Allstate spokesman Bill Mellander said. “It altered theworld of doing business in Florida.”

Allstate Floridian, an independent branch of Allstate Corp.,will keep about 663,000 homeowner policies in the state, andUniversal Insurance Co. of North America has agreed to sellpolicies to any Allstate customers who are not renewed, accordingto an Allstate press release.

The decision not to renew was based on geography and exposurerisk, said Ryan Priest, spokesman for the company. When asked aboutthe reactions of those not having their policies renewed, he said,“The first non-renewal letters just went out. Some are going totheir agents wanting to find out more about the situation, butthose not being renewed will be guaranteed coverage throughUniversal Insurance.”

Allstate also will not renew its 16,000 commercial policies, andno longer will write new commercial policies.