<PAGE> 1
March 6, 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 Energy Services Corporation
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 ("Captive") for the November
1, 1996 through December 31, 1996 period.
1. Provide a general description of loss exposure / experience for automobile,
"all-risk" property, and general liability insurance coverage.
During the period, Captive entered into reinsurance arrangements with
respect to All Risk property insurance. Captive's exposure under this program
would be limited to $750,000 per occurrence, with an annual aggregate limit of
$3 million.
During the period, Captive entered into reinsurance arrangements with
respect to General and Auto Liability insurance. Captive's exposure for this
program would be limited to $2 million per occurrenence with an annual aggregate
limit of $4 million.
During the period, the Captive experienced no known losses in the above
lines of coverages.
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.
No losses have been reported as of the end of this reporting period.
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3. Provide an analysis by subsidiary or associate company of claims paid by
the Captive on behalf of such subsidiary or associate company and include
the lead-in reserve available to Captive and end-of-period reserve balance.
No claims have been paid during this period.
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
the Captive and loss experience of each subsidiary as a result of
operations of the Captive.
Premiums have been unaffected during this period since there is no
loss experience so far.
5. Provide a statement of actual savings achieved by Columbia as a result
of the operations of the Captive.
Actual savings achieved by Columbia during this period were approximately
$250,000.
6. Provide a copy of Captive's income statement and balance sheet, including
any notes thereto.
Captives income statement and balance sheet including any notes are
attached.
Very truly yours,
COLUMBIA INSURANCE COMPANY, LTD
By: //s//N. A. Parillo
-------------------------------
N. A. Parillo, President
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COLUMBIA INSURANCE CORPORATION, LTD.
BALANCE SHEET
<TABLE>
<CAPTION>
December 31, 1996
-----------------
<S> <C>
ASSETS
- ------
Cash 765
Cash equivalents - time deposits 5,545,799
Accrued interest receivable 6,639
Premiums receivable 0
Prepaid expenses 33,334
Loss escrow 0
----------
Total Assets $5,586,537
- ------------ ==========
SHAREHOLDERS EQUITY
- -------------------
Issued Capital - intercompany 120,000
Contributed surplus - intercompany 880,000
Retained earnings 136,557
----------
Total Shareholders Equity $1,136,557
- ------------------------- ==========
LIABILITIES
- -----------
Accounts payable 23,127
Accounts payable - Service Corporation 6,270
Dividends payable to Parent 0
Reinsurance payable 0
Unearned premiums - intercompany 2,298,583
Outstanding loss reserves 2,122,000
----------
Total Liabilities $4,449,980
- ----------------- ==========
Total Liabilities & Shareholders Equity $5,586,537
- --------------------------------------- ==========
</TABLE>
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COLUMBIA INSURANCE CORPORATION, LTD.
INCOME STATEMENT
<TABLE>
<CAPTION>
December 31, 1996
-----------------
<S> <C>
REVENUE
- -------
Premium written - General Liability 3,217,165
Premium written - All Risk 1,380,000
---------
4,597,165
---------
Movement in unearned premiums (2,298,583)
---------
Net earned premiums 2,298,582
- ------------------- =========
EXPENSES
- --------
Gross incurred Claims 2,122,000
Reinsurance thereon 0
---------
Net claims 2,122,000
---------
Administrative Expenses:
Management fees 6,666
Bank charges 13
Corporate Secretarial fees 834
Audit fees 10,000
Service Corporation expenses 6,270
Bermuda Government fees 0
Incorporation expenses 29,493
Miscellaneous expenses 0
---------
Total Administration expenses 53,276
---------
Total Expenses 2,175,276
- -------------- ---------
Operating Income 123,306
-------
INTEREST INCOME AND RELATED CHARGES
- -----------------------------------
Net interest income 13,251
Gain or (loss) on Sale of Investments 0
---------
Total Interest Income and Related Charges 13,251
---------
INCOME BEFORE TAXES $ 136,557
- ------------------- ---------
</TABLE>
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COLUMBIA INSURANCE CORPORATION, LTD.
ANALYSIS OF UNEARNED PREMIUM AT DECEMBER 31, 1996
<TABLE>
<CAPTION>
Operating General All Unearned Unearned Balance
or Subsidiary Library Risk Total Premium Premium Sheet
Company Premium Premium Premium General All Unearned
Code Written Written Written Liability Risk Premium
- ---------- --------- --------- --------- ------------ --------- -----------
$ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C>
CG 2,895 0 2,895 1,448 0 1,448
CGT 305,952 531,024 836,976 152,976 265,512 418,488
CKY 123,861 4,400 128,261 61,930 2,200 64,131
CMD 30,885 754 31,639 15,442 377 15,819
COH 1,161,075 27,005 1,188,080 580,538 13,502 594,040
COS 160,858 4,433 165,291 80,429 2,217 82,646
CPA 366,757 10,949 377,706 183,378 5,475 188,853
CS 35,389 14,965 50,354 17,694 7,483 25,177
TCO 792,304 642,602 1,434,907 396,152 321,301 717,453
CES 44,719 0 44,719 22,359 0 22,359
CGC 3,217 286 3,503 1,609 143 1,751
CLG 3,861 82,522 86,383 1,930 41,261 43,191
CNR 74,638 52,405 127,043 37,319 26,202 63,521
CPC 18,338 3,237 21,575 9,169 1,618 10,787
CPI 89,521 2,607 92,128 44,760 1,303 46,064
TVC 2,895 0 2,895 1,448 0 1,448
AE 0 2,811 2,811 0 $1,405.53 1,406
---------- ---------- ---------- ---------- --------- ----------
Totals $3,217,166 $1,380,000 $4,597,166 $1,608,583 $690,000 $2,298,583
---------- ---------- ---------- ---------- --------- ----------
</TABLE>
