Mr. Blumenthal said his office has issued subpoenas to Allstate for "information about restrictions and premium increases by this company and others, reflecting possible anticompetitive patterns in the industry."

He said the investigation has included subpoenas and interviews involving carriers, reinsurers, modelers and rating agencies to determine if any of them have violated state antitrust statutes.

"Allstate's good hands are dropping Connecticut," Mr. Blumenthal said. "The company seems to put more trust in computer models and myths than human faces and facts. Its apparent reliance on rising reinsurance costs highlights a significant reason for our investigation insofar as reinsurance rates have doubled or tripled in the United States, but barely increased elsewhere in the world."

"Despite its 'good hands' mantra, the underlying reason for this decision is about profits, not people," he continued. "Even if Allstate may be within its legal rights to cease doing business in Connecticut, its decision may be the result of other anticompetitive or antitrust practices."

Brett Ludwig, a spokesman for Allstate, said the company received a subpoena in August from the attorney general and the company has complied fully with it. He said the company formally informed the state of its decision to cease writing new homeowners policies last Thursday.

As for the attorney general's allegations, he said, "Any allegations regarding antitrust are unfounded and without merit."

As in New Jersey (see NU Online Dec. 8), Allstate agents will have access to other homeowner insurers to fulfill their customers' needs, Mr. Ludwig said. He added that the decision has no impact on current customers.

The company plans to stop writing new homeowners policies in Connecticut on Feb. 12, 2007. It also plans to stop writing new homeowners policies in New Jersey and Delaware next year.

After losing more than $5 billion from hurricanes in 2005, Allstate has been reducing its catastrophe risks along the East Coast and the Gulf coast.

In addition to the three states it is no longer writing new policies in, it has stopped 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 up to 12 different carriers to place business. The company said it still insures hundreds of thousands in the state.