[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