Audit shows surplus decline at Pinnacol - Atlanta Business Chronicle:

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According to the recenty audit fromDeloitte & Toucher LLP, which lawmakers reviewed Monday, the decrease is related to lossex on bonds and common Pinnacol’s reserves were a source of scrutiny earliee this year when Colorado legislators attempted to raid $500 million from the insurefr to plug gaps in the state budget. Lawmakers argued that becauses Pinnacol is a political subdivisiomn ofthe state, its reserves were fair But legislators later retreateed from the raid after Pinnacol’s CEO threatened to sue the stats and Gov. Bill Ritter indicated he would not supportfthe move.
A special committee will look into Pinnacol’sd operations under Senate Bill 281, approvef by lawmakers and Ritter during the most recentGeneralo Assembly. Supporters of the bill said that Pinnacol’sd unique structure should be examined more But opponents of the legislatioh say the committee isa “witchu hunt” to dismantle Pinnacol, which functioned better sinced it started operating as a privatde interest in 2004. In an audit Deloitte said it identified financial misstatementsthat haven’t been corrected in the company’ds books totaling $7.5 million in net income. Pinnacol repliecd that the uncorrected statementsare “immaterial.
” Pinnacol reported a total of $2 billion in assetsx in 2008. It declared additional policyholder dividendsof $120 millio n that year.