State Farm Dropping 72K California Policies, Citing Wildfire Risks and Costs

• State Farm plans to not renew about 72,000 property and commercial apartment policies in California, starting this summer • About 30,000 affected policies are for homeowners, rentals, associations, and small businesses • Other 42,000 are commercial apartment policies - about 2% of State Farm's policies in CA • State Farm cites higher construction costs, growing wildfire risk, and outdated regulations as reasons • Actions raise questions about State Farm's finances; state insurance department confident in regulatory changes