The Real Deal Miami

Allstate agrees to rate cut

August 18, 2008 04:52PM

State insurance regulators scored a big win over Allstate, which on Friday agreed to a $5 million fine, and said it would write 100,000 new homeowner policies in Florida over the next three years and lower the premium on each of its nearly 250,000 existing Florida policies by 5.6 percent. The Illinois insurer said it wouldn’t seek a rate increase in Florida for one year. This brings a close to the lengthy legal tussle with the state over the practices of the fourth-largest insurer in Florida. Allstate, which recorded profits of $4.6 billion last year, has dropped close to 500,000 Florida homeowners policies over the past five years.