Pinnacol Distributing $55 Million in General Dividends to Colorado Businesses

Strong Safety Records Benefit Policyholders


DENVER, May 6, 2008 - For the fourth year in a row, Pinnacol Assurance, Colorado’s assured and trusted source of workers’ compensation insurance, will issue a general dividend to its policyholders. In mid-May, eligible Colorado businesses will receive dividend checks totaling approximately $55 million.

With this year’s distribution, the company will have returned more than $227 million in general dividends to Colorado’s business community since 2005. Statewide, Pinnacol is issuing dividend checks to nearly 58,000 qualifying businesses in all 64 counties – about 92 percent of its policyholders.

“Issuing a general dividend for the fourth straight year is a continuing sign of our policyholders commitment to maintaining safe workplaces and to Pinnacol’s financial health and stability,” said Ken Ross, Pinnacol Assurance president and CEO. “We’re pleased to be in a position to return this money to our customers who fuel Colorado’s economy by reinvesting these funds in their businesses and their employees’ safety.

The dividend rewards Pinnacol policyholders who have good safety records and low claims costs. Dividend checks are calculated based on the size of a policyholder’s annual premium compared to claims costs. The average 2008 dividend check will be about $930.

"Pinnacol offers an excellent product that is accompanied by superior service," says Rick Reubelt, a Pinnacol customer and director of health and safety for Haselden Construction. "Their staff is knowledgeable concerning safety issues, responsive to our calls and the dividend is an additional benefit that we roll back into safety programs."

Pinnacol’s policyholders represent the full spectrum of Colorado’s industries, including construction, manufacturing, high-tech, transportation, and agriculture, and the company provides a variety of free resources to help ensure safe workplaces for policyholders. Safety consultants and return-to-work specialists are available at no cost to perform worksite inspections and develop customized injury-prevention and transitional work programs. In addition, Pinnacol hosts regular seminars on diverse issues ranging from back-injury prevention to safety for non-English speaking workers.

About Pinnacol
For more than 90 years, Pinnacol Assurance has been Colorado’s assured and trusted source of workers’ compensation insurance for Colorado employers. Through its affiliated agents, Pinnacol provides comprehensive, competitively priced coverage; immediate attention to claims; a highly qualified network of SelectNet medical providers; and proactive safety programs to approximately 60,000 Colorado businesses. Over the past four years, Pinnacol has returned $227 million in general dividends to its policyholders statewide – a mark of the company’s stability and strong financial health.

Contact:
Suzi Stolte
Associate Vice President of Communications and Public Relations
303.361.4777
suzi.stolte@pinnacol.com