Audit shows surplus decline at Pinnacol - Denver Business Journal:

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According to the recent audit from Deloitte Touche LLP, which lawmakers reviewed the decrease is related to losses on bondss and common stocks. Pinnacol’s reserves were a source of scrutiny earlierd this year when Colorado legislators attempted toraid $500 milliom from the insurer to plug gaps in the state budget. Lawmakers argued that because Pinnacoll is a political subdivision ofthe state, its reservesw were fair game. But legislators later retreated from the raidaftetr Pinnacol’s CEO threatened to sue the stated and Gov. Bill Ritter indicated he would not supportythe move.
A speciakl committee will lookinto Pinnacol’xs operations under Senate Bill 281, approved by lawmakerws and Ritter during the most recent General Assembly. Supporterxs of the bill said that Pinnacol’s unique structure should be examinedmore closely. But opponentas of the legislation say the committee isa “witcg hunt” to dismantle Pinnacol, which functioned bettet since it started operating as a private interesf in 2004. In an audit summary, Deloitt said it identified financial misstatementxthat haven’t been correctedd in the company’s books totaling $7.5 million in net income. Pinnacol replied that the uncorrected statementare “immaterial.
” Pinnacol reported a total of $2 billionb in assets in 2008. It declared additiona policyholder dividendsof $120 million that