MetLife Auto & Home said it is cutting back on writing newhome insurance in New York City and surrounding counties, a movethat was greeted with concern by area insurance agents.

Ellen Kiehl, assistant executive director of the ProfessionalInsurance Agents of New York, said the MetLife move, coupled with asimilar announcement by Allstate two months ago, could createcapacity issues in the state, possibly forcing some policyholdersto look to the nonadmitted and ultimately the residual market forcoverage.

MetLife sent notices earlier this week to agents requiring priorunderwriting approval before any agent could bind coverage on LongIsland, New York City, Westchester, Putnam and Rocklandcounties.

Joe Madden, spokesman for the Cranston, R.I.-based company,said: “We must limit new-business homeowner sales to manage ourconcentration of business to ensure that we are not unduly impactedin a particular area should a large event, such as a hurricane,strike.”

Mr. Madden stressed that the company does not plan anycancellations and “our current policyholders will continue toreceive homeowner insurance from the company.”

The Allstate and MetLife moves have come in the wake ofcatastrophe modelers' projections concerning possible losses if amajor hurricane strikes the Northeast, which is viewed asstatistically probable in the near future.

The last Category 5 hurricane to hit the area with major impactstruck Long Island in 1938.

Ms. Kiehl said that while Allstate prohibited new policies, theMetLife guidelines merely require prior approval and some form ofpre-inspection before binding.

She also observed that she has heard that Allstate is startingnot to renew some policies.