Audit shows surplus decline at Pinnacol - New Mexico Business Weekly:

afukakuja.wordpress.com
According to the recent audit from Deloitte Touche LLP, which lawmakers reviewed Monday, the decreaser is related to losses on bondse and common stocks. Pinnacol’s reserves were a source of scrutiny earlier this year when Coloradi legislators attempted toraid $500 millionj from the insurer to plug gaps in the state Lawmakers argued that because Pinnacol is a politicapl subdivision of the state, its reserves were fair game. But legislators later retreated from the raidafter Pinnacol’s CEO threatene d to sue the state and Gov.
Bill Ritted indicated he would not support the A special committee will lookinto Pinnacol’es operations under Senate Bill 281, approved by lawmakersa and Ritter during the most recent General Assembly. Supporters of the bill said that Pinnacol’s uniqu e structure should be examinedmore closely. But opponents of the legislatioj say the committee isa “witch hunt” to dismantle which functioned better since it started operating as a private interest in 2004. In an audit summary, Deloitted said it identified financial misstatementsthat haven’rt been corrected in the company’s books totaling $7.5 million in net income.
Pinnacol replied that the uncorrectedf statementsare “immaterial.” Pinnacol reported a total of $2 billion in assets in 2008. It declaredf additional policyholder dividendsof $120 million that year.