Pinnacol Assurance requests privatization.

Yesterday, Pinnacol Assurance submitted a proposal to Governor John Hickenlooper to become a privately held company.  In its proposal, Pinnacol Assurance would give the state an ownership stake of $340 million that would pay a $13.6 million annual dividend which would be used for business-development and education. Eventually, Pinnacol would offer its stock for public sale. Governor Hickenlooper has appointed a 19-member task force responsible for investigating the proposal and making recommendations regarding potential acceptance of the proposal.  In addition, if the proposal is approved, Pinnacol would be able to sell its workers’ compensation insurance outside of Colorado. Other changes that will occur include separation from PERA, the Colorado Public Employees’ Retirement Association plan for Pinnacol employees, loss of tax-exempt status and an agreement to keep its headquarters in Colorado for 100 years. Pinnacol also agrees to be the workers’ compensation last resort insurer for the next 50 years.