Allstate insurance may bail on California

“Allstate Corp., which stopped covering homeowners in hurricane-prone U.S. states, may stop writing policies in California too, a state official says. “Their strategy is an exit strategy,” said Lt. Gov. John Garamendi, who oversaw Allstate rates for the last four years as insurance commissioner. “They’ve said they want to get out of the homeowners business in a market that is competitive, healthy and profitable.” He told The Los Angeles Times such a move was “stupid.” Allstate spokesman Mike Siemienas said the company would not “speculate on what future actions we’re going to take.” Citing California’s potential for natural disasters, Allstate has requested a 12 percent rate increase”.