In 1988,
Kemper Insurance Group announced its intentions to withdraw from the Massachusetts auto market. A key piece of legislation was needed to make the company solvent in the Massachusetts market, and within 30 days, the key piece of legislation needed to form Arbella was passed. In 2008, the Massachusetts Commissioner of Insurance decided to “discontinue the practice of state-set rates for private passenger auto insurance and allow insurers to propose rates.” A monumental occurrence for Massachusetts insurers, this decision came after the ill-fated 1977 attempt to allow full competition in the private passenger auto market. John Donohue, co-founder of Arbella, spoke about how his company would fare in this new climate of competition. He reported that Arbella was “not only ready to adapt, but also to succeed and prosper in this new business environment.” On June 1, 2025, Arbella appointed its Executive Vice President and Head of Claim, Paul Brady, as Chief Executive Officer, to succeed John Donohue. Donohue announced he would be stepping down in early 2025 and is continuing in his role as Chairman of the Board and CEO of the Arbella Insurance Foundation (“Foundation”). Donohue has served as Chairman of the Board of Directors since the company’s creation in 1988, and as CEO of the Arbella Insurance Group for the last 24 years. Donohue’s background in law, policy, claims, liability, and marketing positioned him as an industry-leading CEO and a charismatic leader known by agents and employees across New England. ==Current Operations==