Auto insurance (which I know is heavily restricted) but also home insurance? Are you sure?
Every word, comma, font size, font color, coverage provided, exclusion, form number, page number, definition, and rate charged on a homeowners insurance policy is dictated by the government.
In the PRM, anyone writing insurance had to offer auto insurance on terms dictated by state regulators. All State said adios around 1990, because they were losing too much money on auto insurance and they've never come back. I remember video of two All State execs marching up the Statehouse steps to surrender the company's insurance license. (The commissioner of Insurance was still making empty threats...)
Every state regulates insurance, at a minimum to assure the financial integrity of insurers. It's unlikely that anyone is "buying in" to the New Jersey homeowners market by taking a loss to drive out competitors, so I assume that All State decided, for whatever reason, that they could not make money there. Occam makes me suspect regulators.