Financial stewardship

Our commitment to Colorado businesses

Additional savings with Pinnacol

As Colorado’s largest workers’ compensation carrier, we have ample opportunities to live that mission. We’re focused on saving Colorado employers money through careful rate setting, by issuing general dividends and through our award-winning safety programs.

Colorado employers trust us

Colorado employers trust us to keep rates reasonably low and manage their premium dollars wisely. That's why we are committed to maintaining financial stability, which guarantees the payment of benefits that may span years or even decades to injured workers and their dependents. To do so, we manage our expenses, keep careful stewardship over our financial resources and apply disciplined underwriting practices.

Our combined ratio, a metric that measures our underwriting profitability, shows how we performed compared with our peers and competitors. A combined ratio of below 100% (lower is better) indicates that we are bringing in enough revenue to cover our claims costs and other expenses. At 99% in 2021, we are performing at the property and casualty industry average and around 15% better than other state workers’ compensation funds, according to published industry data.

Rates and dividends

When Pinnacol is financially sound, our customers benefit. In fact, our recent financial performance allowed us to give back to Colorado employers in two ways in 2021:

  • Reduced rates by an average of 7%.
  • Issued a general dividend of $50 million to policyholders.

We’re also pleased to share that we’ve reduced rates by 32% and returned $320 million in total dividends to Colorado’s business community since 2016. The dividends returned equal approximately 10% of the premium.

Audit controls

Pinnacol has both internal and external audits in place to ensure our financial practices meet the highest standards of efficiency, risk management and statutory compliance:

  • The Colorado Office of the State Auditor contracted KPMG to perform the annual financial audit. They did not find any financial adjustments or deficiencies in our internal controls.
  • Internal audits conducted 2-3 times per quarter by EY ensure that Pinnacol's processes in financial reporting, expenses and compliance with laws and regulations are working.

Community investments

While good stewardship of our customers' premiums is paramount to Pinnacol, we also feel a responsibility to give back to the community in which we work and live. As a workers' comp insurer, we focus our community investments in three key areas:

  • Rehabilitative health services
  • Employee safety and health
  • Economic vitality and workforce development

In 2021, we awarded $507,000 in grants to nonprofits that protect the health and safety of workers on the job, help injured Coloradans get back to work and promote a robust business climate and a prepared workforce statewide. We place particular importance on supporting organizations that serve underrepresented groups.

Commitment to diversity, equity and inclusion

With a commitment to fighting systemic racism and expanding opportunities for all, our Diversity, Equity and Inclusion Advisory Council and our board of directors have made us accountable for achieving hiring, retention, compensation and advancement equity by year-end 2025. As charter members of Colorado Companies Uniting Against Racism, Colorado Inclusive Economy, and Prosper Colorado, we publicly report our data on key hiring, promotion and supplier indicators.

Pinnacol Foundation

We know how a serious workplace injury or death can devastate a family, which is why we created the Pinnacol Foundation in 2000. The foundation awards scholarships to the children of Colorado workers injured or killed on the job — regardless of the insurance carrier. Since its creation, the foundation has awarded nearly $7 million in scholarships to more than 70 students.

Stability for the future

The business practices, controls and investments detailed above result in a stable and dependable Pinnacol that Colorado employers can count on. That has been our mission since our first day of operation in 1915, and it will continue for the next 100 years.

Learn more about how Pinnacol is a force for good in our state.