Allstate, California in settlement: report

(Reuters) - California's insurance commissioner has dropped an effort to seek refunds for Allstate Corp policyholders who might have paid too much for their homeowners' coverage in recent years, the Los Angeles Times reported on Tuesday.

Last month, California insurance commissioner Steve Poizner said Allstate will have to lower its rates on the state's homeowner policies by 28.5 percent, making an estimated $255 million in annual savings for consumers.

Allstate spokesman Peter DeMarco said at the time the company was disappointed in the order but planned to comply.

The LA Times, citing an unannounced July 31 legal settlement, said Allstate agreed not to contest Poizner's rate cut order, and that in return the commissioner agreed to not take any action over allegations that the insurer had previously charged excessively high rates.

Neither Allstate nor the office of California Department of Insurance immediately returned calls seeking comment.

Allstate is the largest publicly traded U.S. insurer of homes and autos.

(Reporting by Tenzin Pema in Bangalore; Editing by Paul Bolding)