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Allstate Reduces New York Auto Rates

HAUPPAUGE, N.Y.--May 2, 2005--Allstate Insurance Company and Allstate Indemnity Company, with New York State's Acting Superintendent of Insurance Howard Mills, announced today that they will save New York policyholders an estimated $50 million by reducing auto premiums an average of 3% to 5%. The rate reduction will be effective July 4, 2005.

"Allstate is proud to announce that we will be saving our customers nearly $50 million on their auto insurance in New York State," said Allstate Field Vice President Vince Fusco. "We remain committed to growing our leading presence in New York State and, with our hundreds of local agents statewide, vow to continue to provide our customers with valuable product and service-related benefits at competitive prices."

In addition, Allstate informed the New York State Insurance Department that it is preparing to release an innovative auto insurance product that will offer consumers a broader choice of options and features. The product is planned for introduction to the New York market in August 2005.

Allstate has kept its auto insurance rates steady in New York since December 2002. Allstate insures about 1.5 million private passenger vehicles in New York State, representing a 16.7% market share, the largest in the state.

"We applaud the leadership of the legislature, Governor and Superintendent of Insurance in continuing to attack fraud and abuse that heavily contribute to the cost of insurance protection," said Fusco. "We look forward to working in concert with the New York State Insurance Department on our continued efforts to secure legislative and regulatory reforms that will help alleviate the problem of fraud in the state."

The Allstate Corporation is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate(R)" slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 13,600 exclusive agencies and financial professionals in the U.S. and Canada. Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate(R). Encompass(R) and Deerbrook(R) Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group provides life and supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.