Slug of bad news backhands US motorists
Gasoline prices have never been higher this time of the year. And it looks like they’re only going to go up.
At $3.53 a gallon, prices are already up 25 cents since Jan. 1. And experts say they could reach a record $4.25 a gallon by late April.
“You’re going to see a lot more staycations this year,” predicts Michael Lynch, president of Strategic Energy & Economic Research. “When the price gets anywhere near $4, you really see people react.”
In the Wenatchee area, the average price was $3.43 a gallon as of last week. While that’s below the national average — an anomaly in North Central Washington — prices varied across the state, from as high as $3.77 in Bellingham to as low as $3.27 in Spokane, according to the AAA auto club report.
And regional prices could soon climb higher. Overall production at the BP Cherry Point refinery near Ferndale — which supplies about 20 percent of the state’s gasoline — could be cut at least in half in the coming days, and possibly for the coming months because of a dramatic fire in the refinery’s sole crude vacuum distillation unit.
AM Best Revises Outlook to Stable for Universal Insurance Company
OLDWICK, N.J., Feb 02, 2012 (BUSINESS WIRE) -- A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of Universal Insurance Company (Universal) (Winston-Salem, NC).
The affirmation of the ratings reflects Universal's prospects for improved risk-adjusted capitalization, as well as solid fee income through its participation in the North Carolina reinsurance facility, to which it cedes its auto liability book of business.
The revised outlook is based on the prospects of improved risk-adjusted capitalization for Universal following its recent sale to the Carolina Motor Club, Inc. (AAA Carolinas). The outlook was previously revised to negative following several consecutive years of poor underwriting performance, which steadily eroded its capital base. The recent sale will result in additional capital contributions from AAA Carolinas, which are expected to bolster Universal's capital base. The transaction also will result in a restructuring of Universal's book of business through an anticipated run off of the commercial property book of business. This book represents about a third of Universal's overall book and has been the primary source of its underwriting losses in recent years. This initiative to reduce underwriting exposure is further expected to improve the company's risk-adjusted capitalization and reduce underwriting leverage.
