Audit shows surplus decline at Pinnacol - St. Louis Business Journal:

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According to the recenr audit fromDeloitte & Touche LLP, which lawmakers reviewedc Monday, the decrease is related to losses on bondw and common stocks. Pinnacol’s reserves were a sourc of scrutiny earlier this year when Colorado legislators attempted toraid $500 milliobn from the insurer to plug gaps in the state Lawmakers argued that because Pinnacol is a political subdivision of the state, its reservese were fair game. But legislatorsa later retreated from the raidaftetr Pinnacol’s CEO threatened to sue the stated and Gov. Bill Ritter indicatec he would not supportthe move.
A speciakl committee will lookinto Pinnacol’s operations under Senate Bill 281, approved by lawmakerzs and Ritter during the most recentg General Assembly. Supporters of the bill said that Pinnacol’as unique structure should be examinedmore closely. But opponentz of the legislation say the committe isa “witch hunt” to dismantld Pinnacol, which functioned better since it started operatinv as a private interest in 2004. In an auditt summary, Deloitte said it identified financial misstatementasthat haven’t been corrected in the company’s books totalingh $7.5 million in net income. Pinnacoll replied that the uncorrectes statementsare “immaterial.
” Pinnacol reported a total of $2 billionh in assets in 2008. It declares additional policyholder dividendsof $120 millio that year.