[Federal Register Volume 64, Number 127 (Friday, July 2, 1999)]
[Notices]
[Pages 36054-36055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16863]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 35-27042]
Filings Under the Public Utility Holding Company Act of 1935, as
Amended (``Act'')
June 25, 1999.
Notice is hereby given that the following filing(s) has/have been
made with the Commission pursuant to provisions of the Act and rules
promulgated under the Act. All interested persons are referred to the
application(s) and/or declaration(s) for complete statements of the
proposed transaction(s) summarized below. The application(s) and/or
declaration(s) and any amendments is/are available for public
inspection through the Commission's Office of Public Reference.
Interested persons wishing to comment or request a hearing on the
application(s) and/or declaration(s) should submit their views in
writing by July 20, 1999, to the Secretary, Securities and Exchange
Commission, Washington, DC 20549, and serve a copy on the relevant
applicant(s) and/or declarant(s) at the address(es) specified below.
Proof of service (by affidavit or, in case of an attorney at law, by
certificate) should be feild with the request. Any request for hearing
should identify specifically the issues of fact or law that are
disputed. A person who so requests will be notified of any hearing, if
ordered, and will receive a copy of any notice or order issued in the
matter. After July 20, 1999, the application(s) and/or declaration(s),
as filed or as amended, may be granted and/or permitted to become
effective.
Columbia Insurance Corporation, Ltd. (70-9371)
Columbia Insurance Corporation, Ltd. (``CICL''), a wholly owned
captive insurance subsidiary of Columbia Energy Group (``Columbia''), a
registered holding company, and Columbia, both located at 13880 Dulles
Corner Lane, Herndon, Virginia 20171-4600, have filed an application-
declaration under sections 6(a), 7, 9(a), 10, and 12(b) of the Act and
rules 45 and 54 under the Act.
By order dated October 25, 1996 (HCAR No. 26596), Columbia was
authorized to form and capitalize CICL to engage in the reinsurance of
predictable losses under the automobile and general liability and
``all-risk'' coverage.
CICL and Columbia now propose: (1) To expand their reinsurance
activities to
[[Page 36055]]
include all predictable risks \1\ related to the business of the
Columbia; (2) that Columbia establish one or more direct or indirect
subsidiaries to engage in the proposed re-insurance activities; and (3)
that Columbia provide additional support to CICL and the to-be-formed
subsidiaries in the form of equity, guarantees, letters of credit or
other credit support in an aggregate amount of up to $50 million at any
one time outstanding.
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\1\ CICL states that it will retain only that portion of the
risk assumed from the primary insurer, a direct commercial insurer,
that is relatively predictable on a basis of claim frequency and
severity. CICL proposes to reinsure the more volatile/less
predictable portion of the risk with other commercial insurers.
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CICL and Columbia state their proposal will be subject to certain
safeguards. Specifically, CICL, and any subsidiaries to be formed to
engage in the proposed reinsurance activities, propose to participate
as reinsurers only: (1) Where a direct commercial insurer underwrites
the risk; (2) for a permitted business activity engaged in by a member
of the Columbia holding company system; (3) where captive reinsurance
would be reasonably expected to save the Columbia member a portion of
the risk premium it would otherwise have paid; and (4) where the
captive reinsurer can obtain, as appropriate, excess or stop-loss
coverage.
For the Commission, by the Division of Investment Management,
under delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-16863 Filed 7-1-99; 8:45 am]
BILLING CODE 8010-01-M
