Dear Valued Pinnacol Stakeholders:

2013 was a year of successes, a year of changes and, as always, a year of appreciation for our valued customers who select Pinnacol as their workers' compensation provider.

When I joined Pinnacol in late 2013, it quickly became evident that the company had a firmly rooted culture of providing service and delivering value for our stakeholders. From underwriting and safety services to return-to-work programs and online tools, our nearly 600 employees are dedicated to providing the workers' comp services you need to successfully run your business. It has been a privilege to assume a leadership position with a company that has such a long history – nearly 100 years – of supporting Colorado's employers, employees and the community at large.

Pinnacol is proud to be headquartered in Colorado, and we conservatively estimate that the company drives $364 million of economic impact annually across the state. And that doesn't include the actual necessary product we provide to more than 55,000 of Colorado's companies.

In 2013, we improved our financial performance. Earned premium increased by 13 percent, to $478 million. With year-end assets of $2 billion and a surplus of $626 million, we have created the stability required to fulfill our commitment to policyholders and injured workers.

Why is that stability important to you? Because our stability plays a key role in keeping workers' comp rates stable while helping attract new employers to the state. New companies help drive a robust economy that benefits all Colorado citizens.

In 2013 we are proud that, in 2013, we:

While we are proud of these accomplishments and our long-standing commitment to Pinnacol's fundamental mission of serving employers and their employees, we recognize that the business landscape and the workers' comp market are changing rapidly. In this fast-paced environment, windows of opportunity are opening fast and closing even faster. Customer wants, needs and expectations are shifting; technology is changing the face of how people interact with business; and the availability of data is reshaping how businesses interact with their customers.

Against this backdrop we are carefully considering how Pinnacol can meet your needs today, and position ourselves to serve you in the coming years. Preparing for that future requires us to be strategic and nimble while asking:

Keeping Pinnacol strong and healthy for Colorado and for you and your employees means that we cannot and will not stand still. Identifying new and innovative ways to serve and bring value to our stakeholders is an exciting prospect, and at the core of that work will always be our commitment to making Colorado a great place to live, work and grow a business.

Philip B. Kalin
President and CEO

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