Allstate gets OK to hike homeowner insurance 6.9% in California

Allstate gets OK for 6.9% rate increase

California Insurance Commissioner Steve Poizner has granted a request from Allstate Insurance for a 6.9% increase in its rates for homeowner coverage, according to the state Department of Insurance.

The hike followed by five months an agreement between Allstate, California's third-biggest home insurer, and the commissioner to cut average rates by 28.5%.

"Allstate's losses have increased from prior years, and a new rate was warranted," said department spokesman Darrel Ng.

The rate-increase proposal, which was not subject to a public hearing because it was below a 7% legal threshold, was approved after Poizner allegedly "weakened" rate-setting regulations last spring, charged Douglas Heller, executive director of Consumer Watchdog, a Santa Monica advocacy group.

HEALTHCARE

Cigna to cut about 1,100 jobs

Managed-care provider Cigna Corp. said the slumping economy had forced it to cut about 1,100 jobs as it deals with employer customers who also are making cuts and reducing the number of people covered by insurance.

The Philadelphia insurer will cut about 1,000 U.S. positions and 100 outside the country. The layoffs amount to about 4% of its workforce of about 28,000.

Cigna has said it expects about a 2% decline this year in membership, which stood at 11.9 million people at the end of last year's third quarter.

FOOD

Ex-CEO at Tyson to replace chief

Tyson Foods Inc. said its president and chief executive, Dick Bond, would step down immediately and be replaced by a former CEO as the world's largest meat processor continues to weather a downturn in the industry.

Bond, who had been CEO since 2006, will be replaced on an interim basis by former Chairman and Chief Executive Leland Tollett, the Springdale, Ark., company said. Tollett was CEO from 1995 until he retired in 1998 after nearly 40 years with the company.

AUTOS

Porsche boosts its stake in VW

Porsche bought additional shares in Volkswagen and will boost its stake in Europe's biggest carmaker to more than 50%, attaining indirect control over Swedish firm Scania.

Porsche said it would be required by Swedish law to launch a mandatory offer for the truck manufacturer.

Porsche, based in Stuttgart, Germany, said it doesn't have a strategic interest in Scania and is not interested in acquiring Scania shares.

THEME PARKS

Anheuser-Busch ends free samples

There are no free lunches in life, but one could always count on free beer at Anheuser-Busch theme parks. Until now.

The brewer has stopped giving free samples in hospitality centers at its SeaWorld theme parks in Orlando, Fla.; San Antonio; and San Diego and its Busch Gardens parks in Tampa, Fla.; and Williamsburg, Va.

An Anheuser-Busch Adventure Parks spokesman said the free samples had a narrow appeal among park customers.

ENTERTAINMENT

Amazon expands movie service

Amazon.com Inc. said it would start offering movies the day they are released on DVD.

The new service is for buyers of the $99 Roku Player and will be available in early 2009, Seattle-based Amazon.com said.

-- times staff and wire services