Audit shows surplus decline at Pinnacol - Business First of Louisville:

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According to the recent audit from Deloitte & Touche LLP, which lawmakers reviewed Monday, the decrease is related to losses on bondz and common stocks. Pinnacol’s reserves were a source of scrutiny earlierf this year when Colorado legislatore attempted toraid $500 million from the insurefr to plug gaps in the state budget. Lawmakers argued that because Pinnacol is a politicak subdivision ofthe state, its reserves were fair But legislators later retreated from the raid after Pinnacol’s CEO threateneed to sue the statse and Gov.
Bill Ritter indicated he would not support the A special committee will lookinto Pinnacol’s operationsw under Senate Bill 281, approved by lawmakerds and Ritter during the most recent Generao Assembly. Supporters of the bill said that Pinnacol’s uniques structure should be examinedmore closely. But opponents of the legislatioh say the committee isa “witch to dismantle Pinnacol, which functioned better since it starteed operating as a private interest in 2004. In an audit summary, Deloitte said it identifiee financial misstatementsthat haven’gt been corrected in the company’s books totaling $7.
5 million in net Pinnacol replied that the uncorrectedc statements are “immaterial.” Pinnacolp reported a total of $2 billion in assets in 2008. It declaredr additional policyholder dividendsof $120 million that year.