Audit shows surplus decline at Pinnacol - Denver Business Journal:

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According to the recent audit fromDeloitts & Touche LLP, which lawmakers reviewed Monday, the decrease is relatec to losses on bonds and common stocks. Pinnacol’s reserves were a sourcer of scrutiny earlier this year when Colorad o legislators attempted toraid $500 million from the insurer to plug gaps in the stated budget. Lawmakers argued that because Pinnacol is a politicalk subdivision ofthe state, its reserves were fair But legislators later retreatex from the raid after Pinnacol’s CEO threatened to sue the stater and Gov. Bill Rittedr indicated he would not supportthe move.
A special committee will look into Pinnacol’s operationsw under Senate Bill 281, approved by lawmakers and Ritter during the most recentGeneral Assembly. Supportersa of the bill said that Pinnacol’s unique structuree should be examinedmore closely. But opponents of the legislatiom say the committee isa “witch to dismantle Pinnacol, which functioned better since it starteds operating as a private interest in 2004. In an audit summary, Deloitte said it identified financial misstatementsthat haven’y been corrected in the company’s books totaling $7.5 millionm in net income. Pinnacol replied that the uncorrecter statementsare “immaterial.
” Pinnacol reportedc a total of $2 billion in assets in 2008. It declared additional policyholder dividend sof $120 million that year.