NEW ORLEANS (Bloomberg) — Allstate Corporation, State Farm Mutual Automobile Company and four other insurance companies have been sued by Louisiana officials and accused of illegally limiting payouts on claims from hurricanes Katrina and Rita.

The companies pursued a coordinated policy of "deny, delay and defend" to keep payments down and profits up, state Attorney General Charles Foti said yesterday in a state court complaint in New Orleans.

"Insurers coerced their policyholders into settling their claims of damages for less than their value by editing engineering reports, delaying payment and forcing policyholders to litigate claims to receive full value," according to the complaint.

The state asked for forfeiture of illegal profits, triple damages, attorneys' fees and a court order to bar practices that Louisiana officials said violate state antitrust law against price-fixing.

Hurricane Katrina devastated New Orleans in August 2005. Rita struck Louisiana and Texas a month later.

State Farm spokesman Fraser Engerman and Allstate spokesman Mike Siemienas declined to comment on the suit.

"We handle each claim individually," Engerman said. "We pay what we owe based on the contract with each policyholder."

State Farm, a policyholder-owned company based in Bloomington, Illinois, is the largest US home insurer. Allstate, based in Northbrook, Illinois, is the second-largest.

Louisiana says in the suit that the insurers were advised by the New York-based management consulting firm McKinsey & Co. to improve profits by undervaluing insurance claims. McKinsey is named as a defendant in the case.

The insurers also used similar claims-valuation software as part of a conspiracy to keep payments low, according to the complaint.

Mark Garrett, a McKinsey spokesman, didn't return a call seeking comment on the suit.

United Fire & Casualty Co.'s Lafayette Insurance unit, USAA Casualty Insurance, Farmers Insurance Exchange and Travelers Cos.' Standard Fire unit are also named in the suit.

Randy Ramlo, United Fire's chief executive officer, USAA spokesman Paul Berry, Farmers spokesman Jerry Davies and Travelers spokeswoman Sheila Trauernicht didn't return calls seeking comment on the suit.