File No.
70-9813
CERTIFICATE
OF NOTIFICATION
(RULE
24)
SECURITIES
AND EXCHANGE COMMISSION
BY
AGL
Resources Inc.
By order
dated April 13, 2001, Holding Co. Act Release No. 27378, AGL Resources Inc.
(“AGLR”) was authorized to acquire a captive insurance company subsidiary. AGLR
subsequently formed and acquired Global Energy Resource Insurance Company Inc.
(“GERIC”) and it became operational on May 1, 2001. Under the Commission’s
order, AGLR is required to file a certificate of notification on a semi-annual
basis that provides the information described below. This certificate of
notification reports on the period from June 1, 2003 to December 31, 2003 (the
“Reporting Period”).
Reporting
Requirement (“RR”) 1.
Provide a
summary of each associated customer’s premium payments to the Captive
[hereinafter referred to as GERIC] as compared to aggregate loss experience and
expenses, organized by line of insurance provided by GERIC.
Response
1.
During
the Reporting Period GERIC has provided excess liability, property, executive
risk coverage and an aggregate retention basket to associate companies. In
addition, a blended finite insurance program was introduced effective
12/01/03.(See Exhibits A1 A2 A3 and A4). Excess liability coverage insures an
associate against general liability, automobile and employment practices claims.
Property insures physical assets such as buildings and equipment on an all risk
basis. Executive risk liability insures against directors & officers and
fiduciary liability claims. The aggregate basket provides stop loss protection
by capping the combination of all retention amounts. The finite program provides
all lines integrated coverage. A summary of each associate customer’s premium
payments to GERIC (column 2) and the associate’s aggregate losses and expenses
(column 3) is listed in Exhibits A1, A2, A3 and A4 hereto, for the coverage
provided.
RR
2.
Provide
an analysis by associate company of claims paid by GERIC during the period on
behalf of the associate company to include lead-in and end-of-period insurance
reserve balances.
Response
2.
Exhibits
A1, A2, A3 and A4 show, by associate company, the claims paid by GERIC (column
5) and the beginning (column 4) and ending (column 6) reserve balances for the
Reporting Period.
RR
3.
Provide a
listing of increases and decreases to premiums paid by each associate company to
GERIC during the period.
Response
3.
Exhibits
A1, A2, A3 and A4 column 7, lists the increases and decreases to premiums paid
by each associate company to GERIC during the Reporting Period as compared to
premiums paid by the associate company for the same reporting period of the base
year prior to the establishment of captive coverage.
RR
4.
Provide,
for the first three years of GERIC’s operations, a statement of actual savings
achieved by the System as a result of GERIC’s operations during the
period.
Response
4.
The
September 11, 2001 event and the various high profile corporate scandals have
had an enormous impact on the insurance market. The substantial increase in
premiums and the restrictions on available coverage and limits that were
prevalent in the market generally, obscured the effectiveness of the Captive in
managing the AGLR System’s insurance costs.
Nevertheless,
as shown on Exhibits A1, A2, and A3, GERIC’s operations have resulted in premium
savings for the System as compared to the baseline period:
Year 2001
(7 months) $182,165
Year
2002 $339,285
Year
2003 $220,191
Total $741,641
The
savings diminished at the 10/01/02 renewal due to general market conditions as
cited above.
In
addition, reported savings have been impacted by the addition of new associate
companies during the captive’s operative period.
RR
5.
Provide a
copy of GERIC’s income statement and balance sheet, including any accompanying
notes.
Response
5.
GERIC’s
audited financial statements for the period ending 12/31/03 are attached as
Exhibit B.
SIGNATURE
Pursuant
to the requirements of the Public Utility Holding Company Act of 1935, the
undersigned company has duly caused this Certificate of Notification to be
signed on its behalf by the undersigned thereunto duly authorized.
AGL
Resources Inc.
By:
/s/ Paul R. Shlanta
Paul R.
Shlanta
Senior
Vice President & General Counsel
Date: March 10,
2005
EXHIBIT
INDEX
|
Exhibit
A
|
GERIC
Schedule of Premiums, Losses, and Changes by Associate Company and Line of
Coverage is submitted pursuant to request for confidential
treatment. |
| Exhibit
B |
Audited
GERIC Balance Sheet and Income Statement, including notes, as of and for
the Period Ending December 31, 2003. |