Aug. 27--As Tropical Storm Isaac threatens Louisiana, Northbrook-based Allstate Corp. has greatly reduced its homeowners' exposure in the state since 2005's Hurricane Katrina.
Allstate's sales of residential policies in Louisiana fell to $209 million last year, 19 percent less than in 2006, according to National Association of Insurance Commissioners data compiled by SNL Financial. State Farm, the nation's biggest home insurer, sold $460 million in coverage in the state in 2011, about 25 percent higher from five years earlier, SNL senior analyst Terry Leone said.
Isaac could hit New Orleans, which is still struggling to recover from Katrina. Since then, Allstate has been hiking rates and reducing exposure in vulnerable areas nationwide.
Allstate stock closed Monday at $37.64, down 0.3 percent. The nation's second-biggest home insurer started the year at about $27.
Hurricane Katrina, the costliest U.S. hurricane, caused a total of $46.6 billion in property damage covered by private insurers, as well as $16.1 billion in flood losses covered under the National Flood Insurance Program, according to the Insurance Information Institute.
Allstate's reduced exposure in Louisiana was first reported by Bloomberg News.
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