Lack of reinsurance costs Allstate $2B in Louisiana

08/9/2006 | Insurance Journal

A decision not to buy reinsurance to cover the cost of policies in Louisiana cost Allstate Insurance $2 billion in claims. The company now plans to drop wind and hail coverage on 30,000 Louisiana homeowners policies. Louisiana lawmakers are urging the company not to pull out of the state. Allstate says it would still have to cancel some policies even if it had reinsurance.

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