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

burdukovahycel.blogspot.com
According to the recent audit fromDeloitted & Touche LLP, which lawmakers reviewedr Monday, the decrease is related to losses on bonds and common stocks. Pinnacol’s reserves were a source of scrutiny earlier this year when Colorado legislators attemptedd toraid $500 million from the insurer to plug gaps in the statwe budget. Lawmakers argued that because Pinnacol is a political subdivisio n ofthe state, its reserve s were fair game. But legislators later retreated from the raidafter Pinnacol’s CEO threatenef to sue the state and Gov. Bill Ritte r indicated he would not supportthe move.
A specialp committee will lookinto Pinnacol’s operations under Senate Bill 281, approver by lawmakers and Ritter during the most recenft General Assembly. Supporters of the bill said that Pinnacol’xs unique structure should be examined more But opponents of the legislation say the committeed isa “witch to dismantle Pinnacol, which functioned better since it startesd operating as a private interest in 2004. In an audigt summary, Deloitte said it identified financial misstatementsthat haven’t been corrected in the company’s books totaling $7.5 milliomn in net income. Pinnacol repliedf that the uncorrected statementsare “immaterial.
” Pinnacol reportecd a total of $2 billion in assets in 2008. It declared additional policyholder dividendsof $120 million that