-----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, F5Vb/hB6MaIuLk9sIyp/tAIyp62m7xEb1zynsM5gK4QVqkP0STb/olvNIri+ugzj z6e6X9Rzpgwdoicf9af8pw== 0000893220-99-000864.txt : 19990802 0000893220-99-000864.hdr.sgml : 19990802 ACCESSION NUMBER: 0000893220-99-000864 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA ENERGY GROUP 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: SEC FILE NUMBER: 070-08905 FILM NUMBER: 99673654 BUSINESS ADDRESS: STREET 1: 13880 DULLES CORNER LANE STREET 2: SUITE 300 CITY: HENDERON STATE: VA ZIP: 20171-4600 BUSINESS PHONE: 7035616000 MAIL ADDRESS: STREET 1: 13880 DULLES CORNER LANE STREET 2: SUITE 300 CITY: HERNDON STATE: VA ZIP: 20171-4600 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA GAS SYSTEM INC DATE OF NAME CHANGE: 19920703 35-CERT 1 COLUMBIA INSURANCE CORPORATION, LTD. RULE 24 1 July 30, 1999 Securities and Exchange Commission Judiciary Plaza 450 Fifth Street, NW Washington, DC 20549 Interim Report Under Rule 24 of the Public Utility Holding Company Act of 1935 Columbia Insurance Corporation, Ltd 13880 Dulles Corner Lane Herndon, VA 20171-4600 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, 1999 through June 30, 1999 period. 1. Provide a general description of loss exposure / experience for automobile, "all-risk" property, and general liability insurance coverage. Effective July 1, 1998, CICL entered into a new reinsurance arrangement with a United States insurer with respect to General Liability coverage provided by that insurer to Columbia Energy Group ("Columbia"), its subsidiaries and associates. 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$3,800,000 and to a further US$1,500,000 per occurrence excess of US$800,000 per occurrence excess of a Self Insured Retention of US$200,000 per occurrence and subject to a separate aggregate limit of exposure of US$1,500,000. Effective June 30, 1998, CICL entered into a new reinsurance agreement with a United States insurer with respect to All Risk coverage provided by that insurer to Columbia, 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 total, CICL has entered into six such reinsurance agreements since 1996. As such, the combined aggregate exposure for all 6 coverages reinsured by CICL as of June 30, 1999 is US$15,300,000 and 11 loss reserves had been reported to CIGL by the end of this reporting period, of which 4 had been fully paid and closed, leaving 7 still outstanding. 2 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. CICL has had 11 losses reported to it and has paid $2,213,578 in claims in the period under review. 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. CICL has paid $2,213.578 in claims in the period under review. Reported lead-in loss reserves and end-of-period loss reserves on CICL's programs as at December 31, 1998 and June 30, 1999, were $12,015,678 and $9,557,620, respectively. 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, with only four losses paid and 7 outstanding losses reported to CICL, 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. A comparison of the estimated cost of purchasing guaranteed cost coverage for the layers of insurance reinsured to CICL for 1996/97, 1997/98 and 1998/99 to the actual costs of CICL for the period from its incorporation to June 30, 1999 reveals that Columbia has realized pre-tax savings of $3,427,883 by reinsuring certain of the risks to CICL in the period from incorporation to June 30, 1999, including $170,548 for the six months ended June 30,1999. 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 Columbia Insurance Corporation, LTD Income Statement Year-to-Date, June 30, 1999 ($000) Operating Revenues 3,276 Operating Expenses Products purchased -- Operation & maintenance 3,584 Other taxes -- ----- Total Operating Expenses 3,584 ----- Operating Income (Loss) (308) ----- Other Income (Deductions) Interest income and other, net 331 Interest expense and related charges -- ----- Total Other Income (Deductions) 331 ----- Income Before Income Taxes 23 Income Taxes 8 ----- Net Income 15 ===== 4 Columbia Insurance Corporation, LTD Balance Sheet As of June 30, 1999 ($000) ASSETS Investment and other assets 9,916 ------ Current Assets Cash and temporary cash investments 2,765 Accounts receivable, net Customers -- Intercompany 257 Other 798 Prepayments 40 Other -- ------ Total Current Assets 3,860 ------ Deferred Charges 902 ------ TOTAL ASSETS 14,678 ====== 5 Columbia Insurance Corporation, LTD Balance Sheet As of June 30, 1999 ($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 141 ------ Total common stock equity 1,141 Long-term debt -- Total Capitalization 1,141 ------ Current Liabilities Accounts and drafts payable 29 Intercompany accounts payable (59) Accrued taxes 264 Other 142 ------ Total Current Liabilities 376 ------ Other Liabilities and Deferred Credits Income taxes, noncurrent -- Other 13,161 ------ Total Other Liabilities and Deferred Credits 13,161 ------ TOTAL CAPITALIZATION AND LIABILITIES 14,678 ====== -----END PRIVACY-ENHANCED MESSAGE-----