-----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, SECvUeKV6NiBheRri6CE8b1eEWDfr5qqu0YXmx1mvwbtW/SwXOmX6Wr7NMYydTMc cd3xcfCxVR+t1CrhGnujTg== 0000950137-05-003232.txt : 20050317 0000950137-05-003232.hdr.sgml : 20050317 20050317171826 ACCESSION NUMBER: 0000950137-05-003232 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20050317 DATE AS OF CHANGE: 20050317 EFFECTIVENESS DATE: 20050317 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: 1935 Act SEC FILE NUMBER: 070-08905 FILM NUMBER: 05689730 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 c93264e35vcert.htm INTERIM REPORT e35vcert
 

February 28, 2005

Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, NW
Washington, DC
USA 20549

Interim Report and Business Plan Amendment Under Rule 24 of the
Public Utility Holding Company Act of 1935

Columbia Energy Group
801 E. 86th Ave.
Merrillville, IN 46410

and its subsidiary company;

NiSource Insurance Corporation, Ltd.
801 E. 86th Ave.
Merrillville, IN 46410

File No. 70-8905
File No. 70-9371

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 NiSource Insurance Corporation, Ltd. (“NICL”) for the July 1, 2004 through December 31, 2004 period.

1.   Provide a general description of loss exposure/experience for automobile, “all-risk” property, and general liability insurance coverage.

Columbia Insurance Corporation, Ltd. was licensed in 1996 to reinsure certain of the “all risks” property, general and automobile liability risks of Columbia Energy Group (“CEG”), its subsidiaries and associates. NiSource, Inc. acquired CEG on November 1, 2000 and NiSource individual subsidiaries were added to the CEG insurance programs. In 2002, NiSource changed the name from Columbia Insurance Corporation, Ltd. (“CICL”) to NiSource Insurance Corporation, Ltd. (“NICL”). In 2002, NICL was given permission to underwrite risks on a direct insurance basis rather than on a pure reinsurance basis.

Therefore, NICL now underwrites programs on a direct as well as reinsurance basis depending upon risk and nature of the transaction. At July 1, 2004 the General and

 

 

Automobile Liability; and All Risks Property reinsurance agreement were renewed. At July 1, 2004 the reimbursement policy for workers compensation was also renewed to NICL on a reinsurance basis. At November 1, 2004, “T&D” (multi-peril property coverage for transmission and distribution lines) was insured to NICL and fully reinsured by a third party. The addition of the T&D coverage poses no loss or credit risk to NICL. Details of the coverage and limits reinsured, by line of business and underwriting year, are provided as Exhibit 1.

In 2004 the reinsurance renewals for the “TCO” (coverage for Columbia Gas Transmission Corporation) and the “COH” (coverage for Columbia Gas of Ohio) programs were not renewed.

As further discussed under point 2 below, NICL’s loss experience under each of the reinsurance agreements continues to fall within the “expected” range, based on the actuarial analysis of its losses. There have been $23,820,587 in paid claims since inception — $1,610,307 for the period under review.

2.   Provide an analysis by subsidiary or associate company of auto liability, general liability, property and expenses incurred during the six-month period as compared to premiums paid.

For the period under review NICL’s incurred loss to earned premium ratios for the policies for the period July 1, 2004 to December 31, 2004 were as follows:

                         
    Earned Premium     Incurred Loss        
Coverage Line   (7/1-12/31)     (Incl. IBNR)     Loss Ratio
 
All Risk Property
   $ 1,647,625     $ 3,429,971       208.18 %
TCO
   $ 83,333     $ 0       0.00 %
T&D
   $ 958,333     $ 0       0.00 %
General/ Auto Liability
   $ 1,449,998     $ 4,000,000       275.86 %
Excess Indemnity
   $ 3,282,376     $ 2,780,987       84.72 %
 
Totals
   $ 7,421,665     $ 10,210,958       137.58 %
 

The above ratios reflect a conservative reserving position, as is appropriate for a company the size of NiSource Insurance Corporation, Ltd.

3.   Provide an analysis by subsidiary or associate companies of claims paid by NICL on behalf of such subsidiary or associate company and include the lead-in reserve available to NICL and end-of-period reserve balance.

Reported beginning-of-period loss reserves and end-of-period loss reserves on NICL’s property and liability programs as at July 1, 2004 and December 31, 2004, were $23,515,372 and $28,892,712 respectively. Detail of incurred and paid losses, by line of business and underwriting year, is provided in Exhibit 2.

 

 

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 NICL and loss experience of each subsidiary as a result of operations of NICL.

NICL employs a premium allocation model based on exposure and experience of each subsidiary. Exhibit 3 highlights the model which uses an 80%/20% weighting for experience/exposure to derive premium. Premiums have remained virtually the same except for the property premium which decreased. The corporate reimbursement workers compensation policy results in an increase to reflect the new line of business being added to NICL.

5.   Provide a copy of NICL’s income statement and balance sheet, including any notes thereto.

NICL’s consolidated income statement and balance sheet including any notes are attached.

6.   Provide an exhibit reporting any increase or decrease in premiums paid during the reporting period.

                         
    Paid Premium     Increase/  
Coverage Line   1st half 2004     2nd half 2004     (Decrease)  
 
All Risk Property
     0       3,295,248       3,295,248  
General/Auto Liability
     0       2,900,000       2,900,000  
Workers Compensation
     0       6,564,752       6,564,752  
T&D
     0       750,000       750,000  
 
Totals
     0       13,510,000       13,510,000  
 

For the period July 1, 2004 - December 31, 2004 compared to January 1, 2004 - June 30, 2004 the exhibit below details out the movement in premium paid. Growth in Excess Indemnity premium is due to coverage expansion.

Please contact me with any questions or concerns regarding this filing.

Very truly yours,

NISOURCE INSURANCE CORPORATION, LTD.

     
By:
  /s/ J.W. GROSSMAN
   
  J. W. Grossman, President

 

 

NISOURCE INSURANCE CORPORATION, LTD.   EXHIBIT 1
INTERIM REPORT RULE 24     File No. 70-8905    
DESCRIPTION OF CURRENT BUSINESS WRITTEN FOR THE PERIOD 7/01/04 - 12/31/04    

All Risk Property

                 
PERIOD   PER OCC/ AGGREGATE   DEDUCTIBLE   FRONTING COMPANY
 
 
                
6/30/96-97
  $500,000-$650,000/$3MM   $ 100,000-250,000     Arkwright
 
                
6/30/97-98
  $500,000-$650,000/$3MM   $ 100,000-250,000     Arkwright
 
                
6/30/98-99
  $500,000-$650,000/$3MM   $ 100,000-250,000     Hartford Steam Boiler
 
                
6/30/99-7/1/00
  $500,000-$650,000/$3MM   $ 100,000-250,000     Hartford Steam Boiler
 
                
7/1/00-01
  $500,000-$650,000/$3MM   $ 100,000-250,000     Hartford Steam Boiler
 
                
7/1/01-02
  $500,000-$650,000/$3MM   $ 100,000-250,000     AEGIS
 
                
7/1/02-03
  Onshore Gas: $750,000/$2.25M   $250,000     AEGIS
  All Onshore Assets: $3MM/$6MM   $1MM,$1.5MM,$2MM   AEGIS
 
                
7/1/03-04
  $3MM/$6MM   $250,000 - $1MM   AEGIS
 
                
7/1/04-05
  $3MM/$6MM   $250,000 - $1MM   AEGIS
 
General/Auto Liability
 
PERIOD
  LAYER/PER OCC/AGG LIMIT   ATTACHMENT   FRONTING COMPANY
 
 
                
7/1/96-97
  Primary US$800,000/3,000,000   $200,000   AEGIS
 
                
  Excess US$1,000,000/1,000,000   $1,000,000   AEGIS
 
                
7/1/97-98
  Primary US$800,000/3,800,000*   $200,000   AEGIS
 
                
  Excess US$1,000,000/1,500,000*   $1,000,000   AEGIS
 
                
7/1/98-99
  Primary US$800,000/3,000,000   $200,000   AEGIS
 
                
  Excess US$1,000,000/1,000,000   $1,000,000   AEGIS
 
                
7/1/99-00
  Primary US$800,000/3,000,000   $200,000   AEGIS
 
                
  Excess US$1,000,000/1,000,000   $1,000,000   AEGIS
 
                
7/1/00-01
  Primary US$800,000/3,000,000   $200,000   AEGIS
 
                
  Excess US$1,000,000/1,000,000   $1,000,000   AEGIS
 
                
7/1/01-02
  Primary US$800,000/3,000,000   $200,000   AEGIS
 
                
  Excess US$1,000,000/1,000,000   $1,000,000   AEGIS
 
                
7/1/02-03
  Primary US$800,000/3,000,000   $200,000   AEGIS
 
                
  Excess US$1,000,000/1,000,000   $1,000,000   AEGIS

 

 

NISOURCE INSURANCE CORPORATION, LTD.   EXHIBIT 1
INTERIM REPORT RULE 24     File No. 70-8905    
DESCRIPTION OF CURRENT BUSINESS WRITTEN FOR THE PERIOD 7/01/04 - 12/31/04    
                 
PERIOD   PER OCC/ AGGREGATE   DEDUCTIBLE   FRONTING COMPANY
 
 
                
7/1/03-04
  Primary US$800,000/3,000,000   $200,000   AEGIS
 
                
  Excess US$1,000,000/1,000,000   $1,000,000   AEGIS
 
                
7/1/04-05
  Primary US$800,000/3,000,000   $200,000   AEGIS
 
                
  Excess US$1,000,000/1,000,000   $1,000,000   AEGIS

Transmission and Distribution

             
PERIOD   PER OCC/ AGGREGATE   ATTACHMENT   FRONTING COMPANY
 
 
            
11/1/01-02
  $4MM/$4MM   $5MM   AEGIS
 
            
11/1/02-03
  $5MM/$5MM   $5MM   Direct to NICL and Reinsured
 
            
11/1/03-04
  $5MM/$5MM   $5MM   Direct to NICL and Reinsured
 
            
11/1/04-05
  $6.5MM/$6.5MM   $5MM   Direct to NICL and Reinsured

Excess Indemnity—Workers Compensation

             
PERIOD   PER OCC/ AGGREGATE   ATTACHMENT   FRONTING COMPANY
 
 
            
7/1/02-03
  $450,000/$6,000,000   $50,000   Travelers (Bermuda)
 
            
7/1/03-04
  $450,000/$6,000,000   $50,000   Travelers (Bermuda)
 
            
7/1/04-05
  $500,000/$10,000,000   $0   AEGIS

Long-Term Disability

                 
PERIOD   PER OCC/ AGGREGATE   DEDUCTIBLE   FRONTING COMPANY
 
 
                
1/1/99-00
  Unlimited/$7.0MM   $0     Wausau
 
                
1/1/00-01
  Unlimited/$10.2MM   $0     Liberty Mutual
 
                
1/1/01-7/1/01
  Unlimited/$4.6MM   $0     Liberty Mutual
 
                
7/1/01-02
  Unlimited/$2.78MM   $0     UNUM/Provident
 
                
7/1/02-03
  Unlimited/$2.4MM   $0     UNUM/Provident
 
                
7/1/03-12/31/03
  Unlimited/$1.0MM   $0     UNUM/Provident
 
                
1/1/04-12/31/04
  Unlimited/$1.9MM   $0     Prudential

 

 

NISOURCE INSURANCE CORPORATION, LTD.    
INTERIM REPORT RULE 24      File No. 70-8905   EXHIBIT 2
INCURRED AND PAID LOSSES FOR THE PERIOD 7/01/04 - 12/31/04    
                                                             
        Lead-in loss     Paid losses in     OSLR at                             Movement from  
Policy Year   Coverage   reserves     period     12/31/04     IBNR at 12/31/04     Closing Reserve     Updated incurred     7/01/04  
 
 
                                                            
7/1/96-97
   AL/GL     174,560       —       —       92,690       92,690       92,690       (81,870 )
7/1/97-98
   AL/GL     1,106,359       —       241,489       393,928       635,417       635,417       (470,942 )
7/1/98-99
   AL/GL     377,275       —       945,547       50,841       996,388       996,388       619,113  
7/1/99-00
   AL/GL     1,241,446       —       1,223,230       18,216       1,241,446       1,241,446       —  
7/1/00-01
   AL/GL     1,594,984       —       400,000       1,036,000       1,436,000       1,436,000       (158,984 )
7/1/01-02
   AL/GL     2,761,913       1,361,914       1,126,534       273,465       1,399,999       2,761,913       —  
7/1/02-03
   AL/GL     3,394,256       —       570,826       1,635,243       2,206,069       2,206,069       (1,188,187 )
7/1/03-04
   AL/GL     4,000,000       —       1,087,426       2,410,538       3,497,964       3,497,964       (502,036 )
7/1/04-05
   AL/GL     —       —       2,355,000       1,645,000       4,000,000       4,000,000       4,000,000  
6/30/96-97
   All Risk     —       —       —       —       —       —       —  
6/30/97-98
   All Risk     —       —       —       —       —       —       —  
6/30/98-99
   All Risk     —       —       —       —       —       —       —  
6/30/99-7/1/00
   All Risk     —       —       —       —       —       —       —  
7/1/00-01
   All Risk     163,875       —       —       —       —       —       (163,875 )
7/1/01-02
   All Risk     160,336       —       —       53,891       53,891       53,891       (106,445 )
7/1/02-03
   All Risk     757,672       —       6,172       433,954       440,126       440,126       (317,546 )
7/1/03-04
   All Risk     1,000,000       —       —       158,172       158,172       158,172       (841,828 )
7/1/04-05
   All Risk     —       —       3,000,000       429,971       3,429,971       3,429,971       3,429,971  
7/1/02/03
   Excess Ind- WC     3,559,766       163,628       1,450,311       1,846,792       3,297,103       3,460,731       (99,035 )
7/1/03/04
   Excess Ind- WC     3,222,930       84,765       1,239,391       1,987,098       3,226,489       3,311,254       88,324  
7/1/04/05
   Excess Ind- WC     —       —       1,245,176       1,535,811       2,780,987       2,780,987       2,780,987  
 
Subtotal
         23,515,372       1,610,307       14,891,102       14,001,610       28,892,712       30,503,019       6,987,647  
 
 
         23,515,372       1,610,307       14,891,102       14,001,610       28,892,712       30,503,019       6,987,647  
 
        
 
INCEPTION TO DATE
 
Period
   Coverage Line   Paid losses                                                
 
7/1/96-97
   General Liability     726,613                                                  
7/1/97-98
   General Liability     2,198,577                                                  
7/1/98-99
   General Liability     1,411                                                  
7/1/99-00
   General Liability     2,758,556                                                  
7/1/00-01
   General Liability     2,405,015                                                  
7/1/01-02
   General Liability     2,600,000                                                  
7/1/02-03
   General Liability     —                                                  
7/1/03-04
   General Liability     —                                                  
6/30/96-97
   All Risk     —                                                  
6/30/97-98
   All Risk     1,423,776                                                  
6/30/98-99
   All Risk     2,004,479                                                  
6/30/99-7/1/00
   All Risk     2,168,952                                                  
7/1/00-01
   All Risk     1,176,926                                                  
7/1/01-02
   All Risk     2,085,136                                                  
7/1/02-03
   All Risk     4,011,058                                                  
7/1/03-04
   All Risk     —                                                  
7/1/02-03
   Excess Ind-WC     175,323                                                  
7/1/03-04
   Excess Ind-WC     84,765                                                  
 
                                                          
Total
         23,820,587                                                  
 
                                                          

 

 

NISOURCE INSURANCE CORPORATION, LTD.       EXHIBIT 3
INTERIM REPORT RULE 24   File No. 70-8905    
PREMIUM ALLOCATION MODEL FOR THE PERIOD   7/1/04-12/31/04    
Total NICL Premium Allocation        
                                         
Line of Business   GL/AL   Property   Exc Ind-WC   T&D     Totals
 
    
Premium Account
     2,900,000       3,295,248       6,564,752       750,000       13,510,000  
 
    
                                         
    Weighting   Weighting   Weighting   Weighting   Weighting
 
    
Exposure
     80.00 %     80.00 %     80.00 %     80.00 %     80.00 %
Loss
     20.00 %     20.00 %     20.00 %     20.00 %     20.00 %
                                               
        GL/AL     Property     Exc Ind-WC     T&D          
        Exposure/Loss     Exposure/Loss     Exposure/Loss     Exposure/Loss       Selected  
        Allocation     Allocation     Allocation     Allocation       W/AVG  
Code   Operating Company   Factor     Factor     Factor     Factor       Premium  
 
CKY
   Columbia Gas of Kentucky, Inc.     56,550       6,590       150,989       —         214,130  
CMD
   Columbia Gas of Maryland, Inc.     17,690       3,295       32,824       —         53,809  
COH
   Columbia Gas of Ohio, Inc.     524,030       72,495       1,050,360       —         1,646,886  
COS
   Columbia Gas of Virginia     108,460       16,476       177,248       —         302,185  
CPA
   Columbia Gas of Pennsylvania     272,890       19,771       571,133       —         863,795  
TCO
   Columbia Gas Transmission Corp     321,900       346,001       978,148       —         1,646,049  
CGT
   Columbia Gulf Transmission Co     89,320       642,573       190,378       —         922,271  
CNR
   Columbia Energy Resources, Inc.     —       —       —       —         —  
CTC
   Columbia Transmission Comm     —       —       —       —         —  
PLP
   Columbia Propane Corporation LP     —       —       —       —         —  
CPC
   Columbia Propane Corporation     —       —       —       —         —  
PET
   Columbia Petroleum Corporation     —       —       —       —         —  
CLG
   Columbia LNG Corporation     —       —       —       —         —  
CNS
   Columbia Network Services     —       —       —       —         —  
CAT
  
Columbia Atlantic Trading Corporation
     —       —       —       —         —  
CPL
   Columbia Pipeline Corp     —       —       —       —         —  
CFC
   Columbia Finance Corp     —       —       —       —         —  
CEC
   Columbia Electric Corporation     —       —       —       —         —  
CSP
   Columbia Energy Group Service     10,150       —       —       —         10,150  
CG
   Columbia Energy Group — Parent     —       —       —       —         —  
TCC
   Columbia Energy Group Capital     —       —       —       —         —  
CTL
   Columbia Transcom     —       —       —       —         —  
NCS
   NiSource Corporate Services     90,190       3,295       1,043,796       —         1,137,281  
NSI
   NiSource Inc.     2,610       —       —       —         2,610  
NIP
   NIPSCO — Electric Merchant     —       —       —       —         —  
NIP
   NIPSCO — Electric Distribution     437,610       1,766,253       1,142,267       750,000         4,096,130  
NIP
   NIPSCO — Gas Distribution     542,880       49,429       590,828       —         1,183,136  
NDC
   NiSource Development     2,610       3,295       —       —         5,905  
NES
   NI Energy Services     —       —       —       —         —  
NET
   NiSource Energy Technologies     —       —       6,565       —         6,565  
KGF
   Kokomo Gas     19,720       3,295       32,824       —         55,839  
NIF
   NO. IN. Fuel & Light     25,810       3,295       26,259       —         55,364  
BSG
   Bay State Gas     190,530       32,952       485,792       —         709,274  
NPG
   NiSource Pipeline Group     —       —       —       —         —  
EUS
   Energy USA     127,600       3,295       —       —         130,895  
PEI
   Primary Energy     8,120       313,049       6,565       —         327,733  
GSG
   Granite State Gas Transmission     5,510       —       6,565       —         12,075  
NUM
   Northern Utilities — Maine     24,940       3,295       26,259       —         54,494  
NUN
   Northern Utilities — New Hampshire     20,880       3,295       39,389       —         63,564  
NFC
   NiSource Finance Company     —       —       —       —         —  
NCP
   Crossroads Pipeline Company     —       3,295       —       —         3,295  
IWC
   IWC Resources     —       —       —       —         —  
XXX71
   NiSource Retail Services     —       —       6,565       —         6,565  
 
TOTALS
         2,900,000       3,295,248       6,564,752       750,000         13,510,000  
 

 

 

NISOURCE INSURANCE CORPORATION LTD.       EXHIBIT 4
INTERIM REPORT RULE 24   File No. 70-8905    
PREMIUM ALLOCATION FOR THE PERIOD   7/1/04-12/31/04    
                                         
    GL/AL     Property     Exc Ind-WC     T&D     Totals  
 
    
Allocated Premium Amount:
     2,900,000       3,295,248       6,564,752       750,000       13,510,000  
 
    
Actual Premium Amount:
     2,900,000       3,295,248       6,564,752       750,000       13,510,000  
 
    
     
Weighting Factors
Exposure
  80.00%
Loss
  20.00%
                                               
        GL/AL   Property   Exc Ind-WC   T&D      
        Exposure/Loss   Exposure/Loss   Exposure/Loss   Exposure/Loss     Selected  
        Allocation   Allocation   Allocation   Allocation     W/AVG  
Code   Operating Company   Factor   Factor   Factor   Factor     Premium  
       
CKY  
Columbia Gas of Kentucky, Inc.
     1.95 %     0.20 %     2.30 %     0.00 %       214,130  
CMD  
Columbia Gas of Maryland, Inc.
     0.61 %     0.10 %     0.50 %     0.00 %       53,809  
COH  
Columbia Gas of Ohio, Inc.
     18.07 %     2.20 %     16.00 %     0.00 %       1,646,886  
COS  
Columbia Gas of Virginia
     3.74 %     0.50 %     2.70 %     0.00 %       302,185  
CPA  
Columbia Gas of Pennsylvania
     9.41 %     0.60 %     8.70 %     0.00 %       863,795  
TCO  
Columbia Gas Transmission Corp
     11.10 %     10.50 %     14.90 %     0.00 %       1,646,049  
CGT  
Columbia Gulf Transmission Co
     3.08 %     19.50 %     2.90 %     0.00 %       922,271  
CNR  
Columbia Natural Resources, Inc.
     0.00 %     0.00 %     0.00 %     0.00 %       —  
CTC  
Columbia Transmission Comm
     0.00 %     0.00 %     0.00 %     0.00 %       —  
PLP  
Columbia Propane Corporation LP
     0.00 %     0.00 %     0.00 %     0.00 %       —  
CPC  
Columbia Propane Corporation
     0.00 %     0.00 %     0.00 %     0.00 %       —  
PET  
Columbia Petroleum Corporation
     0.00 %     0.00 %     0.00 %     0.00 %       —  
CLG  
Columbia LNG Corporation
     0.00 %     0.00 %     0.00 %     0.00 %       —  
CNS  
Columbia Network Services
     0.00 %     0.00 %     0.00 %     0.00 %       —  
CAT  
Columbia Atlantic Trading Corporation
     0.00 %     0.00 %     0.00 %     0.00 %       —  
CPL  
Columbia Pipeline Corp
     0.00 %     0.00 %     0.00 %     0.00 %       —  
CFC  
Columbia Finance Corp
     0.00 %     0.00 %     0.00 %     0.00 %       —  
CEC  
Columbia Electric Corporation
     0.00 %     0.00 %     0.00 %     0.00 %       —  
CSP  
Columbia Energy Group Service
     0.35 %     0.00 %     0.00 %     0.00 %       10,150  
CG  
Columbia Energy Group — Parent
     0.00 %     0.00 %     0.00 %     0.00 %       —  
TCC  
Columbia Energy Group Capital
     0.00 %     0.00 %     0.00 %     0.00 %       —  
CTL  
Columbia Transcom
     0.00 %     0.00 %     0.00 %     0.00 %       —  
NCS  
NiSource Corporate Services
     3.11 %     0.10 %     15.90 %     0.00 %       1,137,281  
NSI  
NiSource Inc.
     0.09 %     0.00 %     0.00 %     0.00 %       2,610  
NIP  
NIPSCO — Electric Merchant
     0.00 %     0.00 %     0.00 %     0.00 %       —  
NIP  
NIPSCO — Electric Distribution
     15.09 %     53.60 %     17.40 %     100.00 %       4,096,130  
NIP  
NIPSCO — Gas Distribution
     18.72 %     1.50 %     9.00 %     0.00 %       1,183,136  
NDC  
NiSource Development
     0.09 %     0.10 %     0.00 %     0.00 %       5,905  
NES  
NI Energy Services
     0.00 %     0.00 %     0.00 %     0.00 %       —  
NET  
NiSource Energy Technologies
     0.00 %     0.00 %     0.10 %     0.00 %       6,565  
KGF  
Kokomo Gas
     0.68 %     0.10 %     0.50 %     0.00 %       55,839  
NIF  
NO. IN. Fuel & Light
     0.89 %     0.10 %     0.40 %     0.00 %       55,364  
BSG  
Bay State Gas
     6.57 %     1.00 %     7.40 %     0.00 %       709,274  
NPG  
NiSource Pipeline Group
     0.00 %     0.00 %     0.00 %     0.00 %       —  
EUS  
Energy USA
     4.40 %     0.10 %     0.00 %     0.00 %       130,895  
PEI  
Primary Energy
     0.28 %     9.50 %     0.10 %     0.00 %       327,733  
GSG  
Granite State Gas Transmission
     0.19 %     0.00 %     0.10 %     0.00 %       12,075  
NUM  
Northern Utilities — Maine
     0.86 %     0.10 %     0.40 %     0.00 %       54,494  
NUN  
Northern Utilities — New Hampshire
     0.72 %     0.10 %     0.60 %     0.00 %       63,564  
NFC  
NiSource Finance Company
     0.00 %     0.00 %     0.00 %     0.00 %       —  
NCP  
Crossroads Pipeline Company
     0.00 %     0.10 %     0.00 %     0.00 %       3,295  
IWC  
IWC Resources
     0.00 %     0.00 %     0.00 %     0.00 %       —  
   
NiSource Retail Services
     0.00 %     0.00 %     0.10 %     0.00 %       6,565  
       
TOTALS  
 
     100.00 %     100.00 %     100.00 %     100.00 %       13,510,000  
       

 

 

NISOURCE INSURANCE CORPORATION, LTD.   EXHIBIT 5
INTERIM REPORT RULE 24   File No. 70-8905
Estimated savings — captive compared to commercial insurance   1/1/04-12/31/04
                                                                                 
NICL Option                                                            
Policy Period   1996-97     1997-98     1998-99     1999-00     2000-01     2001-02     2002-03     2003-04     2004-05     Cum Premium  
 
 
                                                                                
GL/AL
     3,250,672       3,949,662       3,190,770       3,041,000       2,812,000       2,800,000       2,700,000       2,800,000       2,900,000          
All-Risk
     1,397,203       1,618,057       1,960,760       2,400,000       2,646,000       2,580,000       4,330,000       3,950,417       3,295,248          
LTD
     —       —       —       4,588,000       7,627,823       2,297,484       1,595,784       432,365       903,612          
WC
     —       —       —       —       —       —       3,050,000       3,144,583       6,564,752          
 
    
Total
     4,647,875       5,567,719       5,151,530       10,029,000       13,085,823       7,677,484       11,675,784       10,327,365       13,663,612       46,159,431  
Investment Income
                                                                           o/s    
Pre-tax saving
     602,125       179,511       79,149       1,242,900       1,538,582       1,089,748       1,464,216       926,618       1,785,181       4,732,016  
                                                                                 
Total Cost
                                                                             41,427,415  
                                                                                 
Guaranteed Cost Option                                                      
Policy Period   1996-97     1997-98     1998-99     1999-00     2000-01     2001-02     2002-03     2003-04     2004-05        
 
 
                                                                                
GL/AL
     2,750,000       3,159,730       2,552,616       3,345,100       3,233,800       3,240,000       3,240,000       3,000,000       3,000,000          
All-risk
     2,500,000       2,587,500       2,678,063       2,880,000       3,000,000       3,000,000       5,000,000       4,500,000       4,500,000          
LTD
     —       —       —       5,046,800       8,390,605       2,527,232       1,650,000       453,983       948,792          
WC
     —       —       —       —       —       —       3,250,000       3,300,000       7,000,000          
 
    
Total
     5,250,000       5,747,230       5,230,679       11,271,900       14,624,405       8,767,232       13,140,000       11,253,983       15,448,792       50,891,447  
 
                                                                                
ANNUAL SAVINGS
     11.47 %     3.12 %     1.51 %     11.03 %     10.52 %     12.43 %     11.14 %     8.23 %     11.56 %        
CUMULATIVE INVESTMENT INCOME (EST.)
                                       5,500,000  
CUMULATIVE SAVINGS
                                             20.11 %

 

 

NiSource Insurance Corporation, Limited

Management Accounts — consolidated
for the period ending December 31, 2004

 

 

NiSource Insurance Corporation, Ltd.

Consolidated Income Statement

                           
      12 months to       12 months to       Company
      31-Dec-03       31-Dec-04       Code
REVENUE
                          
Premium written — General Liability
       2,800,000         2,900,000       See sch
Premium written — All Risk
       3,950,417         3,295,248       See sch
Premium written — Long term
       1,230,257         317,976        
Premium written — WC
       3,144,583         6,564,752        
Premium written — T&D
       1,000,000         750,000        
Premium ceded — T&D
       (990,000 )       (742,500 )      
Premium written — COH
       250,000         —        
Premium ceded — COH
       (247,500 )       —        
Premium written — TCO
       250,000         —        
Premium ceded — TCO
       (247,500 )       —        
Claims servicing fees
       —         —        
 
            
 
       11,140,257         13,085,476        
Movement in unearned premiums
       91,664         (1,429,582 )     See sch
 
            
Net earned premium
       11,231,921         11,655,894        
 
            
 
                          
 
 
                          
EXPENSES
                          
Gross Incurred Claims
       10,436,451         10,986,323        
 
            
Net Claims
     $ 10,436,451       $ 10,986,323        
 
            
 
                          
Underwriting expenses
                          
Deferred acquisition costs incurred
       236,045         173,484        
 
            
 
                          
Administration expenses
                          
Management fees
       137,500         150,000        
Bank charges
       15,440         18,568        
Corporate secretarial fees
       5,783         5,641        
Audit fees
       41,816         42,355        
Government fees
       9,661         11,242        
Letter of credit costs
       47,517         20,351        
Legal costs — reinsurance security
       —         —        
Underwriting consultancy fees
       267,803         256,739        
Service Corporation expenses
       39,938         75,938       CG
Fees for set-up of Vermont branch
       51,711         104,311        
Federal excise tax
       62,623         10,417        
Miscellaneous expenses
       7,408         9,149        
 
            
Total Administration expenses
       687,200         704,711        
 
            
Total Expenses
     $ 11,359,696       $ 11,864,518        
 
            
 
                          
 
 
                          
Operating Income (Loss)
       (127,775 )       (208,624 )      
 
            
 
                          
INTEREST INCOME & RELATED CHARGES
                          
Net interest income — excluding Money Pool
       1,361,710         1,534,954        
Money Pool interest income — Non-Affiliated
       4         3        
Money Pool interest income — Affiliated
       996         364        
Gain (loss) on sale of Investments
       157,817         79,395        
 
            
Total Interest Income and Related Charges
       1,520,527         1,614,716        
 
            
 
                          
INCOME (LOSS) BEFORE TAXES
     $ 1,392,752       $ 1,406,092        
 
            
 
                          
 
 
                          
Income taxes
       (459,610 )       (991,724 )      
Deferred taxes
       (28,152 )       499,592        
 
            
Tax (charge) / recovery
       (487,762 )       (492,132 )      
 
            
INCOME (LOSS) AFTER TAXES
       904,990         913,960        
 
            
Dividends declared
       —         —       CG
 
            
INCOME (LOSS) AFTER TAXES AND DIVIDEND
     $ 904,990       $ 913,960        
 
            

 

 

NiSource Insurance Corporation, Ltd.

Consolidated Balance Sheet

                           
                          Company
      31-Dec-03       31-Dec-04       Code
ASSETS
                          
Cash
       3,725         83,300        
Cash equivalents — time deposits & Money Market Funds
       4,765,641         11,529,787        
Money Pool — Non-Affiliated
       10         6        
Money Pool — Affiliated
       14,816         21,036        
Premiums receivable
       —         —       CG
Accrued interest receivable
       472,704         533,522        
Money Pool accrued interest receivable — Non-Affiliated
       —         2        
Money Pool accrued interest receivable — Affiliated
       31         52       CG
Prepaid reinsurance premiums
       907,500         618,750        
Prepaid expenses
       319,113         259,694        
OSLR Recoverable
       1,725,000         —        
Funds withheld (UNUM)
       3,662,803         3,185,800        
Fixed income investments at market value
       34,145,151         37,427,468        
Deferred tax asset (general and long-term)
       1,673,198         2,275,410       CG
 
            
 
                          
Total Assets
     $ 47,689,692       $ 55,934,827        
 
            
 
                          
 
 
                          
SHAREHOLDER’S EQUITY
                          
Issued Capital — intercompany
       370,000         370,000       CG
Contributed Surplus — intercompany
       789,059         789,059       CG
Additional Paid in Capital
       583,132         622,030        
Unrealized gain/(loss) on investments
       435,982         245,406        
Retained Earnings/(Deficit)
       6,871,096         7,785,056        
 
            
Total Shareholders’ Equity
     $ 9,049,269       $ 9,811,551        
 
            
 
                          
 
 
                          
LIABILITIES
                          
Accounts payable
       135,192         116,102        
Accounts payable — System Inc
       —         —       CG
Accounts payable — Service Corporation
       —         —       CS
Dividends payable to Parent
       —         —        
Income taxes payable by Shareholder — prior years
       —         —       CG
Income taxes payable — Prior years
       —         —       CG
Income taxes payable — Current year
       174,549         707,516       CG
Unearned premiums — intercompany
       5,864,168         7,005,000       See sch
Premiums Paid in Advance — intercompany
       —         —        
Deferred income — intercompany
       —         —       CG
Unearned premiums — nonaffiliated
       —         —       See sch
Reinsurance balance payable
       28,780         793,947        
Outstanding loss reserves
       32,437,734         37,500,711        
 
            
Total Liabilities
     $ 38,640,423       $ 46,123,276        
 
            
 
                          
Total Liabilities and Shareholders’ Equity
     $ 47,689,692       $ 55,934,827        
 
            

 

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