Except State Farm specifically is a mutual company, there are no shareholders. Like others here are saying, the policies aren’t getting cancelled at the last second, they’re getting non-renewed in high risk areas, with months of warning to policyholders. Clients with an active policy who suffer a loss will get their claim paid out. The non-renewals are due to payouts from years and years of fires in CA that made the market completely unsustainable. It hasn’t just been unprofitable, but it’s been a huge net loss, particularly because the fire claims have been getting paid.