State Farm has announced it is no longer accepting accept new applications for property and casualty coverage in California, citing growing "catastrophe exposure" in the Golden State, which has averaged 7,000 wildfires encompassing more than 2M acres in each of the past five years.

"State Farm General Insurance Co. made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market," the Bloomington, IN-based insurance giant said, in a statement posted on its website.

State Farm said stopped accepting new applications for all business and personal lines property and casualty insurance, effective May 27. Personal auto insurance policies in California– are not impacted, the company said.