The insurer aggressively grew in Los Angeles, despite getting overweight on fire risk, but decided to cut thousands of policies last year, adding to the state’s home-insurance crisis.

State Farm wrote in a letter on Monday that the recent fires in Los Angeles threaten its finances and are “the costliest in the history of the company.”

State Farm has nudged California to immediately approve a 22% rate increase for homeowners in the wake of the devastating Los Angeles County wildfires.