State Farm car rates to fall by an average of 4.2 percent
Greeley – State Farm Mutual Automobile Insurance Co., the largest insurer of autos in Colorado, is lowering its overall auto-insurance rates in Colorado by an average of 4.2 percent beginning Monday. The reduction represents an annual savings of $23.2 million to the company’s Colorado customers. One in every five cars insured in Colorado is insured by the company.
Since the July 2003 repeal of Colorado’s no-fault auto-insurance law and return to a tort, or fault-based, system, State Farm has had five consecutive rate decreases. The rate changes have added up to a 31.6 percent overall reduction in premiums, equating to an annual premium savings for State Farm policyholders of nearly $238 million.
“We’re pleased our rates have continued to go down since the transition from the costly no-fault system to the tort system,” said State Farm spokeswoman Joy Keyser Pickar. “Our most recent rate decrease is in sharp contrast to the escalation of rate increases prior to the change in the law.”
This represents the fifth consecutive rate decrease for State Farm customers since the July 1, 2003 repeal of Colorado’s no-fault auto insurance law and return to a tort, or fault-based, system. Those decreases, including the reduction that accompanied no-fault repeal, have added up to a 31.6 percent overall reduction in premium, which equates to an annual premium savings for State Farm policyholders of nearly $238 million.
“We’re pleased our rates have continued to go down since the transition from the costly no-fault system to the tort system,” said State Farm spokesperson Joy Keyser Pickar. “Our most recent rate decrease is in sharp contrast to the escalation of rate increases prior to the change in the law. Under no-fault, we were in a cost crisis from which there was no relief in sight. The reversal of that trend is a positive sign that the market continues to stabilize and our customers are reaping the benefits of having more personal choices about the coverage they buy and the ability to save a significant amount on their car insurance.”
Premiums for the comprehensive and collision coverages are decreasing the most. The comprehensive coverage pays for losses from such perils as theft, storm damage, fire, vandalism and glass breakage. The price of the liability coverage will go down for some and up for others. The cost of the medical payments coverage is going up for most customers.
DENVER
S&P downgrades Janus’ debt rating
Janus Capital Group Inc., manager of about $130 billion in mutual funds and institutional accounts, had its debt rating lowered by Standard & Poor’s for the first time in three years because of a decline in assets and earnings.
Janus’ bond rating was downgraded to BBB/A-3 from BBB+/A-2, Standard & Poor’s credit analyst Helene De Luca wrote Tuesday in a report. The outlook for the Denver-based company was changed to “stable” from “negative,” as the company probably won’t have “significant further deterioration” in its asset base, she said.
COLORADO SPRINGS
Ramtron buys Canada semiconductor maker
Ramtron International Corp., a Colorado Springs-based maker of ferroelectric random-access memory products, on Tuesday said it acquired Goal Semiconductor Inc., a privately held semiconductor manufacturer based in Montreal, for $7.6 million in cash and stock.
Ramtron says the acquisition will enable the company to accelerate its product-development plans for analog and mixed-signal integrated circuits and an expanded portfolio of FRAM devices.
FORT COLLINS
Blue Sun touts tests of its biodiesel emissions
Blue Sun, a supplier of biodiesel in Colorado, New Mexico, Utah and Idaho, on Tuesday said results from a federal study indicate Blue Sun B20 produced decreased emissions in four major air-pollutant categories, compared with other B20 blends.
Blue Sun said tests from the National Renewable Energy Laboratory found that nitrogen oxide was reduced by 4 percent compared with conventional diesel; carbon monoxide by 32 percent; hydrocarbons by 40 percent; and particulate matter by 24 percent.
WASHINGTON
Consumer confidence up, but it may not last
An abundance of jobs helped push consumer confidence higher this month, but the optimism could be short-lived as pain at the gasoline pump becomes more acute. The Conference Board’s index rose to 105.6, up from a revised 103.6 in July.
Soaring energy prices may also be starting to harm manufacturers as the Commerce Department reported Tuesday that factory orders in July fell by the largest amount in 15 months.
NEW YORK
Icahn may seek 10% of Time Warner
Billionaire financier Carl Icahn may make a tender offer for as much as 10 percent of Time Warner Inc., adding pressure on the media company to buy back shares and spin off its cable television unit, according to a person familiar with the matter.
Icahn has a 2.6 percent stake in Time Warner with hedge-fund partners. He would include other investors in his plan, the source said.
WASHINGTON
Morgan Stanley may face $10 million fine
Federal regulators are looking to fine Wall Street powerhouse Morgan Stanley about $10 million for allegedly violating record-keeping rules by failing to preserve e-mail messages, a person with direct knowledge of the government investigation said Tuesday.
The person, who spoke on condition of anonymity, confirmed a report Tuesday in The Wall Street Journal that said the e-mail in question may have been relevant to several big cases that the Securities and Exchange Commission has brought against Morgan Stanley.
NEW ORLEANS
McDermott shares up on asbestos pact
McDermott International Inc. shares rose as much as 27 percent after the company agreed to a settlement of up to $2.06 billion to resolve asbestos claims in the bankruptcy case of its Babcock & Wilcox unit.
McDermott, which provides services to energy companies, agreed to make a $350 million cash payment as part of the settlement. It plans to start a $1.1 billion fund for asbestos claims, and may make other contributions totaling $605 million.
WILMINGTON, Del.
KB Toys plan ends bankruptcy case
KB Toys Inc., the largest closely held U.S. toy retailer, ended its bankruptcy case two weeks after winning approval of a plan to give a 90 percent stake to Prentice Capital Management LP.
U.S. Bankruptcy Judge Walter Shapero in Delaware confirmed the plan to repay creditors Aug. 18. It became effective Tuesday.
SEATTLE
Boeing boosts pension offer in union talks
Boeing Co. on Tuesday presented what it called its final contract offer to more than 18,000 machinists, whose leaders promptly urged the workers to reject the proposal and strike.
Union members will vote on the three-year offer Thursday, with the current contract set to expire Friday.
Boeing offered union members a 10 percent increase in pension payouts but otherwise changed little from its previous offer.
Seattle-based Machinists Lodge 751 called the pension offer “insulting.”
WASHINGTON
GM recalls SUVs; Hyundai recalls sedan
General Motors said Tuesday it is recalling about 800,000 sport utility vehicles and pickups in 14 Northern states because corrosion was affecting the anti- lock brake system, leading to more than 200 low-speed crashes.
GM said the recall involved the 1999-2002 model years of the Chevrolet Avalanche, Chevrolet Silverado, Chevrolet Tahoe, GMC Sierra, GMC Yukon and GMC Yukon XL.
Also, Hyundai Motor Corp. issued a recall of the 2006 Sonata sedan, and the government announced an investigation of the 2002 Jeep Liberty.
