She noted that a major hurricane is up to 100 miles in radius, and in a state that is 75 miles at its widest point, plus having the highest population concentration per square mile, the risk of loss is enormous.

In addition to the homeowners policies, the company is withdrawing from the commercial property market in eight coastal counties, amounting to 300 customers.

Jim Gardner, a spokesman for the New Jersey Department of Banking and Insurance, said a number of companies have expressed concern over their portions of coastal risks. The department is working with them to mitigate those risks. However, he said there is ample market available through other carriers, including the nonadmitted market.

He said the department has not received complaints about unavailability of insurance. If worse came to worse, the state has a residual market available, but there has been no need to utilize it, he added.

Ms. Breeding said Allstate still plans to aggressively grow in New Jersey through its auto and financial services offerings. Customers who walk through the doors of an Allstate agency will be able to fulfill all of their insurance needs, including homeowners coverage, she said. The company's exclusive agents have access to a third-party carrier for personal lines property offerings.

Amy Kyhos, a company spokeswoman, said New Jersey is not alone in Allstate's plans to reduce its risk exposure to catastrophe. In addition to New Jersey, she said the company will cease writing new homeowners policies in Delaware on Jan. 15, and Connecticut on Feb. 12.

According to National Underwriter's Highline Data Service, Allstate is the second largest insurer of homeowners after State Farm, with 13 percent of the market in New Jersey. In Delaware, it is ranked third, with close to 10 percent of the market. In Connecticut, Allstate is number one, with 13 percent of the market.

Previously, the company said it would stop writing new homeowners policies in portions of New York, Texas, Louisiana, Mississippi, North Carolina, South Carolina and Georgia, primarily along the coast.

In Florida, Allstate Floridian, a company subsidiary, has contracted with Royal Palm Insurance Company to insure 120,000 nonrenewal customers. Agents in the state have access to up to 12 different carriers to place business. The company said it still insures hundreds of thousands in the state.