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Statement from CFO Tom Gallagher Re: Allstate Insurance Company’s Move to Raise Rates without Approval

6/23/2005

CONTACT:
Tami Torres or Bob Lotane
(850) 413-2842

 TALLAHASSEE – "It has become apparent that Allstate Insurance Company plans to file a 28 percent statewide average rate hike in July, but has already begun sending the bills to Florida homeowners.  Allstate's move to implement a rate hike and then file for approval blatantly ignores a new law that requires a public hearing for any rate request exceeding 15 percent. This is unconscionable.
 
 "Just one month ago, Allstate announced the non-renewal of 95,000 Floridians. Now they are hitting their remaining policyholders with a rate hike that they are afraid to hold up to public scrutiny. 

  "With these actions, Allstate has broken faith with their policyholders and the people of Florida.  This conduct is even more reprehensible considering just four months ago Allstate's chairman Edward Liddy characterized the company's 2004 financial performance as a 'great year for Allstate' and ‘We're growing and generating solid returns for our shareholders.' 
 
 "This is a company that says one thing to analysts and investors and something else to its policyholders when it sticks them with the bill. 
 
 "I am urging Insurance Commissioner Kevin McCarty to do everything in his power under Florida law to stop Allstate from circumventing the law and to tell Allstate to cease and desist billing this unapproved rate increase to Florida homeowners. 
 
 "Allstate's policyholders and the people of Florida deserve straight answers from the company and we intend to hold Allstate accountable."