Allstate said the non-renewals are intended to reduce exposure to risk of hurricane losses. Edward Liddy, Allstate chief executive, said the hurricanes "wiped out all the profits" the company's Allstate Floridian unit had earned since 1992 when Hurricane Andrew affected the area.

Bill Mellander, a spokesperson for Allstate, said that the company lost $2 billion as a result of the 2004 hurricanes. He added, "In the wake of these events there was a 'new reality' Allstate had to face in the Florida market in order to best accommodate customers."

Policyholders will have alternative options for insurance as almost 95,000 members will be eligible to buy coverage via their Allstate agent from Universal Insurance Company of North America, a subsidiary of Universal Insurance Group, Allstate said.

Universal Insurance Group is well established in the Florida area, which was important to Allstate, as they wanted to make the transition process as seamless as possible for customers, according to Mr. Mellander.

Mr. Mellander stressed that the changes in policy were necessary for the benefit of policyholders so that they would be able to receive the same level of quality care that they had in the past. Customers will be able to transfer their same level of service, such as auto insurance discounts, under Allstate to their new carrier. Allstate will begin notifying customers of the new developments by mail today.