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

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According to the recent audit fromDeloittes & Touche LLP, which lawmakers reviewexd Monday, the decrease is related to losses on bondd and common stocks. Pinnacol’s reserves were a source of scruting earlier this year when Colorado legislators attemptex toraid $500 million from the insurer to plug gaps in the statee budget. Lawmakers argued that becauswe Pinnacol is a political subdivision of the its reserves werefair game. But legislatorsd later retreated from the raidafter Pinnacol’s CEO threatenes to sue the state and Gov. Bill Rittet indicated he would not supportthe move.
A speciao committee will look into Pinnacol’s operations under Senatde Bill 281, approved by lawmakers and Rittetr during the most recentGeneral Assembly. Supporterss of the bill said that Pinnacol’sz unique structure should be examined more But opponents of the legislation say the committer isa “witch hunt” to dismantlwe Pinnacol, which functioned better since it started operatinv as a private interest in 2004. In an audit summary, Deloitte said it identified financial misstatementsthat haven’t been corrected in the company’s books totalinyg $7.5 million in net income.
Pinnacoll replied that the uncorrected statements are Pinnacol reported a totalof $2 billionh in assets in 2008. It declarer additional policyholder dividendsof $120 million that year.