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Humana in talks to buy health company Kindred; suit over ACA subsidies settled

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Humana in talks to buy health company Kindred; suit over ACA subsidies settled

Humana Inc. is in advanced discussions to acquire accute care services company Kindred Healthcare Inc., The Wall Street Journal reported. The managed care company is planning the acquisition in partnership with private equity companies Welsh Carson Anderson & Stowe and TPG. Under the deal, the two private equity firms would receive Kindred's facility-focused unit, while both Humana and the private equity companies would get Kindred's home- and hospice-care business.

Navigators Group Inc. has agreed to buy all shares of Belgium-based Assurances Continentales – Continentale Verzekeringen NV and Bracht, Deckers & Mackelbert NV for €35 million ($41.2 million) in cash.

President Donald Trump's administration, House Republicans and Democratic attorneys general have settled a lawsuit over Affordable Care Act subsidies that run into billions of dollars, according to a Bloomberg report, citing a "conditional" agreement filed in federal court. The pact could result in the eventual payment of cost-sharing reduction subsidies, the report said.

Centene Corp. unit Coordinated Care Corp. was allowed to resume sales of individual health plans in Washington state after it agreed to fix its provider network deficiencies. The Washington State Office of the Insurance Commissioner had penalized the firm $1.5 million, with $1 million suspended, pending no further violations for the next two years.

The Journal has a report on the lobbying efforts of a group of property and casualty insurers domiciled in the U.S. to push for ending what it says is a loophole that allowed rivals to set up offshore units at low-tax locations and make larger profits. The Coalition for American Insurance, which includes Berkshire Hathaway Inc., The Hartford Financial Services Group Inc., Liberty Mutual Insurance and Travelers Cos. Inc., has lobbied House Speaker Paul Ryan, R-Wis., for tax code changes that would make U.S. insurers more competitive.

MetLife Inc. expects its near-term results to be less sensitive to interest rates as it continues to position itself into less-volatile and fee-based businesses.

Featured news

US lawmakers scrutinize pharma industry practices; tax bill in jeopardy: Centers for Disease Control and Prevention Director Brenda Fitzgerald insisted her agency has not banned the use of certain terms, such as vulnerable and diversity, in response to criticism of her agency after the Washington Post reported that government policy analysts were directed not to use seven specific terms — "vulnerable," "entitlement," "diversity," "transgender," "fetus," "evidence-based" and "science-based" — in preparing budgetary documents and related materials and communications.

Financial news in other parts of the world

Asia-Pacific: ANZ to buy back up to A$1.5B of shares; ICICI Securities files for IPO

Europe: Fitch upgrades Portugal, Ireland; France eyes cap on banks' corporate exposures

Middle East & Africa: South Africa's ANC to have new leader; Arab Bank chair released from detention

Latin America: Chile, Honduras decide presidents; prosecutors look to replace Caixa VPs

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng was up 0.70% to 29050.41. The Nikkei 225 added 1.55% to 22,901.77.

In Europe as of midday, the FTSE 100 was up 0.45% to 7,524.25, and the Euronext 100 improved 1.11% to 1,049.76.

On the macro front

The National Association of Home Builders' housing market index is due out today.