Allstate dropping appeal of Calif. auto rate cuts

NEW YORK, June 19 (Reuters) - Insurer Allstate Corp (ALL.N: Quote, Profile, Research, Stock Buzz) on Thursday said it has dropped its bid to fight a reduction on auto policy rates imposed earlier this year by California's insurance regulator.

An Allstate spokesman, in an e-mailed statement, said the insurer had filed a motion to dismiss the appeal, citing the "best interest of all parties."

Allstate said it has been complying with California Insurance Commissioner Steve Poizner's order to cut rates by 15.9 percent since April.

Allstate, the largest publicly traded U.S. car and home insurer, is the third largest provider of automobile coverage in California with about 2 million customers. The rate cuts are seen saving the state's drivers about $250 million a year, according to earlier calculations by Poizner's office. (Reporting by Lilla Zuill; editing by Carol Bishopric)