Audit shows surplus decline at Pinnacol - Memphis Business Journal:

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According to the recent audit fromDeloittre & Touche LLP, which lawmakers reviewed Monday, the decrease is relatecd to losses on bonds and common Pinnacol’s reserves were a source of scrutiny earlier this year when Coloradoo legislators attempted to raid $500 million from the insuree to plug gaps in the statre budget. Lawmakers argued that because Pinnacool is a political subdivision of the its reserves werefair game. But legislators latefr retreated from the raidafter Pinnacol’as CEO threatened to sue the state and Gov. Bill Rittef indicated he would not supporytthe move.
A special committee will look into Pinnacol’ operations under Senate Bill 281, approved by lawmakers and Rittere during the most recentGenerakl Assembly. Supporters of the bill said that Pinnacol’s uniqur structure should be examined more But opponents of the legislation say the committeew isa “witch hunt” to dismantlee Pinnacol, which functioned better since it started operating as a private interestg in 2004. In an audit Deloitte said it identified financial misstatementsthat haven’t been correctes in the company’s books totaling $7.5 milliomn in net income. Pinnacol replied that the uncorrecterd statementsare “immaterial.
” Pinnacop reported a total of $2 billion in assets in 2008. It declaredc additional policyholder dividendsof $120 millionb that year.