Released: July 31, 2006

Northbrook, Ill., July 31, 2006—Commissioner of Insurance Jim Donelon and Governor Kathleen Blanco had a forthright discussion with Allstate President Thomas J. Wilson regarding Louisiana’s homeowners market and Allstate’s presence in Louisiana.

“I’m glad that the president and top management of Allstate have confirmed that Allstate is not leaving the state,” Commissioner Jim Donelon said.

“I am pleased that we had this meeting today with the top Allstate officials so I could hear from the horse’s mouth where they stand. We will use this as a basis to go forward in our work and decisions to solve the problem that we face, which is to ensure that our people across the state have coverage at an affordable price. It’s going to take a great deal of work, and all the resources that we can bring to bear to solve this problem,” Donelon continued.

“I look forward to working with the industry, the Legislature, the Governor and business leaders around the state to help us reach our goal,” Donelon said.

“However we proceed, we have to keep in mind the obligations imposed by our consumer protection laws. I made our position clear to Allstate that we will vigorously resist any effort to cancel the wind and hail portions of homeowner’s policies in violation of state law,” Donelon said.