NU Online News Service, May 19, 6:11 p.m.EDT--Allstate Corp., declaring that last year's hurricaneshad "obliterated" profits, said yesterday it will not renew thepolicies of 95,000 Florida homeowners' insurance customers.

The company said it was making arrangements for policyholders totransition to another firm. Another 16,000 commercial policies willalso be discontinued, Allstate announced.

The move, the company said follows a strategic assessment of theFlorida insurance market after the damage caused by HurricanesCharley, Frances, Ivan, and Jeanne last year.

The hurricanes caused an insured loss of $20.5 billion forcarriers according to estimates by Property Claims Services.

Allstate said the non-renewals are intended to reduce exposureto risk of hurricane losses. Edward Liddy, Allstate chiefexecutive, said the hurricanes "wiped out all the profits" thecompany's Allstate Floridian unit had earned since 1992 whenHurricane Andrew affected the area.

Bill Mellander, a spokesperson for Allstate, said that thecompany lost $2 billion as a result of the 2004 hurricanes. Headded, "In the wake of these events there was a 'new reality'Allstate had to face in the Florida market in order to bestaccommodate customers."

Policyholders will have alternative options for insurance asalmost 95,000 members will be eligible to buy coverage via theirAllstate agent from Universal Insurance Company of North America, asubsidiary of Universal Insurance Group, Allstate said.

Universal Insurance Group is well established in the Floridaarea, which was important to Allstate, as they wanted to make thetransition process as seamless as possible for customers, accordingto Mr. Mellander.

Mr. Mellander stressed that the changes in policy were necessaryfor the benefit of policyholders so that they would be able toreceive the same level of quality care that they had in the past.Customers will be able to transfer their same level of service,such as auto insurance discounts, under Allstate to their newcarrier. Allstate will begin notifying customers of the newdevelopments by mail today.