-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QfyLRkWKKXCGx9RR9hGr/aEZIi5Up0STDINY6jt2DP0t6xueCJ21/7Iq5PZwnLXb KAhyH+JDdSoYyHxSdzFz9w== 0000893220-97-001318.txt : 19970731 0000893220-97-001318.hdr.sgml : 19970731 ACCESSION NUMBER: 0000893220-97-001318 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19970730 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA GAS SYSTEM INC CENTRAL INDEX KEY: 0000022099 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 131594808 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: 1935 Act SEC FILE NUMBER: 070-08905 FILM NUMBER: 97648430 BUSINESS ADDRESS: STREET 1: 12355 SUNRISE VALLEY DRIVE STREET 2: SUITE 300 CITY: RESTON STATE: VA ZIP: 20191-3458 BUSINESS PHONE: 7032950394 MAIL ADDRESS: STREET 1: 12355 SUNRISE VALLEY DRIVE STREET 2: SUITE 300 CITY: RESTON STATE: VA ZIP: 20191-3458 35-CERT 1 COLUMBIA INSURANCE CORPORATION, LTD 1 July 30, 1997 Securities and Exchange Commission Judiciary Plaza 450 Fifth Street, N.W. Washington, DC 20549 Interim Report Under Rule 24 of the Public Utility Holding Company Act of 1935 Columbia Insurance Corporation, Ltd 12355 Sunrise Valley Drive Suite 300 Reston, VA 20191-3458 File No. 70-8905 Gentlemen: In compliance with the terms and conditions of Rule 24 under the Public Utility Holding Company Act of 1935, and the Order of the Commission dated October 25, 1996 authorizing the financing transactions and business activities as more fully described in the Joint Application/Declaration, as amended (the "application"), the undersigned hereby submits the following information applicable to Columbia Insurance Corporation, Ltd ("CICL") for the January 1, 1997 through June 30, 1997 period. 1. Provide a general description of loss exposure / experience for automobile, "all-risk" property, and general liability insurance coverage. Effective June 30, 1997, CICL entered into a reinsurance agreement with a United States insurer with respect to All Risk coverage provided by that insurer to The Columbia Gas System Inc.("Columbia Gas"), its subsidiaries and associates. CICL's exposure under the All Risk reinsurance agreement is limited depending on the type of loss, to between US$500,000 and US$650,000 per occurrence excess of applicable deductibles and is also subject to an aggregate limit of exposure of US$3,000,000. In addition, in 1996 CICL entered into a reinsurance arrangements with two United States insurers with respect to All Risk and General Liability provided by those insurers to Columbia Gas, its subsidiaries and associates. CICL's exposure under the All Risk reinsurance agreement is limited depending on the type of loss, to between US$500.000 and US$650,000 per occurrence excess of applicable deductibles and is also subject to an aggregate limit of exposure of US$3,000,000. CICL's exposure under the General Liability reinsurance arrangement is limited to US$800,000 per occurrence excess of a Self Insured Retention of US$200,000 per occurrence and subject to an aggregate limit of exposure of US$3,000,000 and to a further US$1,000,000 per occurrence excess of US$800,000 per occurrence excess of a Self Insured Retention of US$200,000 per occurrence and subject to an aggregate limit of exposure of US$1,000,000. 2 As such, the combined aggregate exposure for all three coverages reinsured by CICL as of June 30, 1997 is US$10,000,000. Given the early stage of the coverages, only one loss reserve has been reported to CICL by the end of this reporting period. 2. Provide an analysis by subsidiary or associate company of auto liability, general liability, and property losses and expenses incurred during the six month period as compared to premiums paid. As noted above, CICL has had one loss reported to it but has paid no claims in the period under review. An analysis of premiums paid by subsidiary or associate company to insurance carriers and ceded by those carriers to CICL by line of coverage during the period under review and as at June 30, 1997 is appended. 3. Provide an analysis by subsidiary or associate company of claims paid by CICL on behalf of such subsidiary or associate company and include the lead-in reserve available to CICL and end-of-period reserve balance. As noted above, no claims have been paid in the period under review. 4. Provide a listing that illustrates the increases and decreases to premiums for each subsidiary or associate company as a result of the operations of CICL and loss experience of each subsidiary as a result of operations of CICL. At this very early stage in the development of each loss program reinsured, only one loss has been reported to CICL and it has paid no claims and therefore, premium payments have been unaffected by actual loss experience. 5. Provide a statement of actual savings achieved by Columbia as a result of the operations of CICL. At this stage, it is too early to estimate savings to Columbia arising from the operations of CICL. 6. Provide a copy of CICL's income statement and balance sheet, including any notes thereto. CICL's income statement and balance sheet including any notes are attached. Very truly yours, COLUMBIA INSURANCE CORPORATION, LTD By: //s//N. A. Parillo --------------------------------- N. A. Parillo, President 3 Page 1 of 2 Columbia Insurance Corporation, LTD Balance Sheet As of June 30, 1997 ($000)
ASSETS Current Assets Cash and temporary cash investments .............. 5,617 Accounts receivable, net Customers ...................................... - Intercompany ................................... - Other .......................................... 6 Prepayments ...................................... 18 Other ............................................ - ------- Total Current Assets ............................... 5,641 ------- Deferred Charges ................................... 290 ------- TOTAL ASSETS ....................................... 5,931 =======
4 Page 2 of 2 Columbia Insurance Corporation, LTD Balance Sheet As of June 30, 1997 ($000)
CAPITALIZATION AND LIABILITIES Capitalization Common Stock Equity Common stock, $25 par value (4,800 shares outstanding) ................................... 120 Additional paid-in capital ..................... 880 Retained earnings .............................. 175 ----------- Total common stock equity ........................ 1,175 Long-term debt ................................... - Total Capitalization ............................... 1,175 ----------- Current Liabilities Accounts and drafts payable ...................... 15 Intercompany accounts payable .................... (2) Accrued taxes .................................... 384 Other ............................................ - ----------- Total Current Liabilities .......................... 397 ----------- Other Liabilities and Deferred Credits Income taxes, noncurrent ......................... - Other ............................................ 4,359 ----------- Total Other Liabilities and Deferred Credits ....... 4,359 ----------- TOTAL CAPITALIZATION AND LIABILITIES ............... 5,931 ===========
5 Columbia Insurance Corporation, LTD Income Statement Quarter Ending June 30, 1997 ($000) Operating Revenues ................................. 1,150 Operating Expenses Products purchased ............................... - Operation ........................................ 1,206 ----------- Total Operating Expenses ........................... 1,206 ----------- Operating Income (Loss) ............................ (56) ----------- Other Income (Deductions) Interest income and other, net ................... 87 Interest expense and related charges ............. - ----------- Total Other Income (Deductions) .................... 87 ----------- Income Before Income Taxes ......................... 31 Income Taxes ....................................... 11 ----------- Net Income ......................................... 20 ===========
6 COLUMBIA INSURANCE CORPORATION, LTD UNDERWRITING ANALYSIS AS AT JUNE 30 1997 Reinsured AEGIS ARKWRIGHT ARKWRIGHT TOTAL LIMITED MUTUAL MUTUAL Program period 7 1 96- 6 30 96- 6 30 97- 6 30 97 6 30 97 6 30 98 Coverage Liability All Risk All Risk $ $ $ $ Premium written 3,217,165 1,380,000 1,603,108 6,200,273 Movement in unearned premiums 0 0 (1,603,108) (1,603,108) --------- --------- --------- --------- Net earned premium 3,217,165 1,380,000 0 4,597,165 --------- --------- --------- --------- Losses paid 0 0 0 0 Movement in case reserves 0 15,000 0 15,000 Movement in IBNR reserves 3,059,143 1,285,000 0 4,344,143 --------- --------- --------- --------- 3,059,143 1,300,000 0 4,359,143 --------- --------- --------- --------- Underwriting income $ 158,022 $ 80,000 $ 0 $ 238,022 --------- --------- --------- ---------
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Movement Reinsured 6 months to Associated Electric & Gas insurance Serivices Limited 30-Jun-97 eff 7 1 96 $ Excess Liability premium written $3,217,165 NET EARNED PREMIUM allocated by DBS companies CKY $ 123,861 61,930 CKY CMD $ 30,885 15,442 CMD COH $1,161,075 580,538 COH CPA $ 366,757 183,378 CPA COS $ 160,858 80,429 COS TCO $ 792,304 396,152 TCO CGT $ 305,952 152,976 CGT CS $ 35,389 17,694 CS CG $ 2,895 1,448 CG other companies CNR $ 74,638 37,319 CNR CGC $ 3,217 1,609 CGC CES $ 44,719 22,359 CES CPI $ 89,521 44,760 CPI CPC $ 18,338 9,169 CPC CLG $ 3,861 1,930 CLG TVC $ 2,895 1,448 TVC ---------- --------- $3,217,166 1,608,583 ========== Arkwright Mutual Insurance Company eff 6 30 96 $1,380,000 ========== All Risk premium written Allocation CKY 0.00 4,400 2,200 CMD 0.00 754 377 COH 0.02 27,005 13,502 CPA 0.01 10,949 5,475 COS 0.00 4,433 2,217 TCO 0.47 642,602 321,301 CNR 0.04 52,405 26,202 CGT 0.38 531,024 265,512 CES 0.00 0 0 CPI 0.00 2,607 1,303 CPC 0.00 3,237 1,618 CGC 0.00 286 143 CLG 0.06 82,522 41,261 CGD 0.00 0 0 TVC 0.00 0 0 CAT 0.00 0 0 CS 0.01 14,965 7,483 AE 0.00 2,811 1,406 -------- -------- TOTAL ALL RISK UNEARNED PREMIUMS 0.00 $1,380,000 690,000 ========== Income statement re 1996/97 $2,298,583 ==========
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