PROVIDENCE – The R.I. Department of Business Regulation is working out a deal with The Beacon Mutual Insurance Co. to approve a new rate plan – with an expected average premium decrease of 27.7 percent – even while investigations of the company are pending.
In the last year and a half, the DBR has approved two updates to the National Council on Compensation Insurance’s rate guidelines that, combined, would cut premiums by 23.6 percent. Beacon has refused to adopt those guidelines, but in January, it filed its own rate plan, with a 27.7-percent rate cut and several changes said to benefit small businesses.
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Within days, however, Beacon was immersed in controversy over alleged improprieties in its rate setting. An audit commissioned by the company confirmed some of the allegations, and Beacon last month fired its CEO and vice president of underwriting. The DBR still has a probe pending, and a state grand jury is involved.
Nevertheless, because of the expected rate cut, DBR is moving ahead, Director A. Michael Marques said. “It’s in the best interest of everybody in this state for us to reach an agreement before the examination is done,” he said.
Hotel housekeeping jobs dangerous, study says
NEW YORK – A national study released last week by UNITE HERE, the union that represents workers at The Westin Providence and the Biltmore Hotel, says hotel housekeepers are at high risk of workplace injuries, and 91 percent report enduring persistent pain.
The study also links luxury amenities such as heavier beds and linens, in-room coffee makers and treadmills to increased injury rates among housekeepers.
Researchers analyzed 1999-2005 injury records from more than 60 hotels employing about 40,000 people and found an average 10.4-percent injury rate among housekeepers, compared with 5.6 percent for other hotel staff. They also surveyed more than 600 housekeepers.
The report is available at www.hotelworkersrising.org.
Webster to buy rival for $173M, gain 20 branches
WATERBURY, Conn. – Webster Financial Corp. last week announced it will buy NewMil Bancorp, of New Milford, Conn., for $173 million in stock to expand in its home region.
NewMil shareholders will get Webster stock valued at $41 a share, the companies said, a premium of about 42 percent. Depending on the price of its stock at the time of the exchange, Webster will swap 0.82 to 0.91 of a share for each NewMil share.
Webster, of Waterbury, Conn., has been buying rivals in Connecticut, Massachusetts and Rhode Island, where it has 158 branches. NewMil will give Webster 20 more branches and add $873 million to Webster’s $17.9 billion in assets.
Hasbro’s 1Q loss widens as ‘Star Wars’ sales slow
PAWTUCKET – Hasbro Inc., the world’s second-largest toymaker, reported a wider first-quarter loss on higher expenses and said a slowdown in sales of “Star Wars” toys may make the second quarter “challenging.”
Hasbro said it lost $4.9 million in the period ending April 2, compared with a $3.71 million loss a year earlier. Revenue for the quarter was $468.2 million, up 2.9 percent from last year.
Hasbro increased spending on new product development by 23 percent. Sales rose on demand for board games such as Monopoly and Candy Land, but CEO Al Verrecchia said future gains from the “Star Wars” franchise may be limited.
Chief Financial Officer David Hargreaves said on a conference call with investors and analysts that revenue will probably decline this year, while earnings per share may rise.(Bloomberg News)
ICOA signs Calif. deal, posts $9.24M loss for ’05
WARWICK – ICOA Inc., a provider of wireless Internet networks and managed services in public locations, said recently that its iDockUSA division has signed a deal with the city of Long Beach, Calif., to provide wireless Internet access service to the city-owned marina.
ICOA also issued financial results for the fourth quarter of 2005 that show revenue of $771,038, a 97-percent increase from the same period in 2004.
ICOA showed a $20,339 gross margin profit for fiscal 2005, versus a $30,667 loss in fiscal 2004. However, due primarily to one-time interest and finance expenses as well as selling, general and administrative expenses, ICOA posted a net loss of $9.24 million for 2005.
Quaker Fabric loses $4M with 1Q net sales decline
FALL RIVER – Quaker Fabric Corp., an upholstery manufacturer, says it lost $4.1 million in the first quarter of 2006 as net sales declined to $46.3 million for the period. That’s a 22-percent drop in sales from the first quarter of 2005, when the company lost $3.1 million.
The first quarter 2006 results include after-tax restructuring and related charges of $500,000 and $100,000 of plant relocation expenses. Excluding these charges and expenses, net loss for the first fiscal quarter of 2006 was $3.5 million, the company said.
In a statement, President and CEO Larry A. Liebenow said the results were “still a long way away” from Quaker’s long-term goals, but he’s “encouraged” by the gradual improvements. “Our biggest problem continues to be sales volume,” he added.
R.I. Housing announces new 40-year mortgages
PROVIDENCE – The R.I. Housing & Mortgage Finance Corporation announced Monday that it’s expanding the term of its below-market, fixed-rate loans to 40 years, an initiative that enhances its “First Homes” programs.
Home buyers can now choose a 30- or 40-year term on conventional mortgages, and they can choose between 35- or 40-year terms for the “Buy More” program, which includes five years of interest-only payments to help increase borrowers’ purchasing ability.
Loans are available for houses costing up to $330,000 and are subject to income guidelines.
Cathleen Paniccia, director of homeownership at R.I. Housing, said the new loans offer an affordable, safer alternative to adjustable-rate mortgages, so homeowners “do not get into trouble down the road when interest rates rise.”
