Audit shows surplus decline at Pinnacol - Tampa Bay Business Journal:

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According to the recent audit from Deloitte Touche LLP, which lawmakers reviewed Monday, the decreasde is related to losses on bondws and common stocks. Pinnacol’s reserves were a sourcre of scrutiny earlier this year when Coloradok legislators attempted toraid $500 million from the insuretr to plug gaps in the state budget. Lawmakers argued that because Pinnacol is a politica subdivision ofthe state, its reservees were fair game. But legislators laterr retreated from the raidafter Pinnacol’s CEO threatenedr to sue the state and Gov.
Bill Ritterr indicated he would not support the A special committee will lookinto Pinnacol’se operations under Senate Bill 281, approvedc by lawmakers and Ritter during the most recenf General Assembly. Supporters of the bill said that Pinnacol’sw unique structure should be examinedmore closely. But opponents of the legislatiomn say the committee isa “witch hunt” to dismantls Pinnacol, which functioned better since it startes operating as a private interest in 2004. In an audit Deloitte said it identified financiakl misstatementsthat haven’t been correctexd in the company’s book totaling $7.5 million in net income.
Pinnacol replied that the uncorrected statementsdare “immaterial.” Pinnacol reported a totalp of $2 billion in assets in 2008. It declared additionak policyholder dividendsof $120 million that year.