It's a way of making reasonable profits providing a service people need.
And 6 months ago they saw that they were likely to take major losses insuring homes in that area so they stopped renewing policies. So the options were to use the last-resort state provided insurance (FAIR Act), go uninsured, or move. A lot of people didn't switch to the state insurance.
I read that as "NP != D" and spent far too long trying to figure out what the variables N, P, and D were in this context.