Fairfax to sell pet insurance businesses; Progressive net income falls

Managed care

Molina Healthcare Inc. and its previously owned subsidiary, Pathways of Massachusetts, have agreed to pay $4.6 million to resolve allegations of violating both the False Claims Act by submitting reimbursement claims and several regulations related to the licensure and supervision of staff, according to the U.S. Justice Department.

The U.S. Supreme Court has ruled against an appeal by UnitedHealthcare Insurance Co. and other petitioners, leaving in place a Centers for Medicare and Medicaid Services rule that allows the government to recoup overpayments from Medicare Advantage insurers.

Property and casualty

Fairfax Financial Holdings Ltd. agreed to sell all of its interests in Crum & Forster Pet Insurance Group and Pethealth Inc., including their worldwide operations, to Jab Holding Co. SARL's pet insurance business for $1.4 billion. The transaction is expected to close in the second half of 2022.

The Progressive Corp.'s May net income fell 73% year over year to $92.1 million, or 15 cents per share, from $341.1 million, or 58 cents per share. The auto insurer's combined ratio deteriorated year over year to 96.5% from 93.1%.

Progressive and The Allstate Corp. are terminating their relationships with Millinocket, Maine-based Harry E. Reed Insurance Agency after the insurance agency displayed an allegedly racist sign during the Juneteenth holiday, NPR reported, citing statements from representatives of Progressive and Allstate.

Argo Group International Holdings Ltd. named Thomas Bradley CEO.

Duane Hercules succeeded Mark Wilhelm as CEO of Safety National Casualty Corp.

Michael Brashears is stepping down as CEO and president of Brethren Mutual Insurance Co. on Dec. 31, InsuranceNewsNet reported.

Omaha National Group Inc. appointed Bryan Connolly COO.

Insurers and the U.S. government's terrorism risk insurance may not be able to cover cyberattacks that target critical infrastructure, the U.S. Government Accountability Office warned in a new report.

The policy cancellation date for failed insurer Lighthouse Excalibur Insurance Co. has been extended to June 30 from June 22 after the Louisiana Department of Insurance secured additional reinsurance for the affected policyholders through the end of the month.

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