PORTLAND, Oregon (AP) ? Allstate Insurance Co. says it is dropping earthquake insurance to most of its 407,000 quake customers nationwide as a part of a larger move to reduce exposure to catastrophic losses.

Allstate spokesman Mike Siemienas in Chicago said four states require the company to offer earthquake coverage, but the company is in various stages of talks with regulators there.

He said the states are Kentucky, Connecticut, Rhode Island and Florida. Additionally, the company will continue to renew earthquake coverage in New Hampshire, New York and Pennsylvania.

Allstate regional spokeswoman Caitlin Gorand, in Bothell, Washington, said the company has not written new earthquake insurance since March 6 and announced on Friday that existing earthquake policies will not be renewed.

Siemienas said the company has declined storm renewals in some parts of Florida and New York and has taken a hard look at coastal coverage from Texas to Florida beginning with Hurricane Andrew in 1992.

He said some policies in those areas for wind and hail coverage are being put into state wind pools.

He said the company recently purchased $2 billion in reinsurance to help cover future losses from named storms, earthquakes and fires-after-earthquakes.

Allstate lost $1.55 billion in the third quarter last year largely because of Hurricane Katrina, its largest quarterly loss since it was publicly traded.

John Piper, spokesman for the insurance division of Oregon Business and Consumer Services, said his office has checked with other major companies and found none that said they plan to take similar action.

Allstate has earthquake policies for about 22,000 of the 120,000 structures it insures in Oregon. Aside from quake-prone California, the institute lists Seattle, Portland, Ore., New York City and Salt Lake City as among cities with high loss potential.

Piper said existing policies will be valid until they lapse. ?It?s not like one day they have it and the next day they don?t,? he said. ?They can?t do that, and they?re not planning to do that.?

He said Allstate indicated in January that it was considering changing its earthquake coverage practices.

Gorand said Allstate has found other companies willing to take over coverage in some states and is seeking those willing to take it over in others, including Oregon.

The Insurance Information Institute says earthquakes have caused damage in all 50 states since 1900.

The costliest was the 1994 Northridge quake in California, which caused an estimated $20 billion in damage, $12.5 billion of it insured.