Pinnacol Assurance distributes $70M in general dividends to Colorado companies
Funds will allow employers to reinvest in their businesses
Denver, March 18, 2019 — For the fourth consecutive year, Pinnacol Assurance, Colorado’s leading workers’ compensation insurer, is distributing general dividend checks to its customers. This year’s dividend totals $70 million. Also, for the fourth consecutive year, Pinnacol recently lowered its rates by 10 percent on average. The dividend and rate decrease are due in part to Pinnacol’s careful stewardship of premium dollars and its partnership with customers to build a culture of safety within Colorado workplaces.
More than 52,000 employers throughout the state — roughly 94 percent of the company’s customers — will receive a dividend. Check amounts are calculated based on the customer’s premium size and success with partnering with employees and Pinnacol to keep their workplace safe. The average 2019 dividend check will be $1,328 and will be sent in late March.
“As a customer-centric organization, it’s gratifying to return $70 million to our policyholders,” said Phil Kalin, Pinnacol’s president and CEO. “These funds represent Pinnacol’s effective claims management and handling of customers’ premiums, which is reflected in our historically high injured worker and policyholder satisfaction scores.”
The general dividend is a portion of a mutual insurance company’s surplus returned to its eligible customers. Many workers’ comp carriers in Colorado are publicly traded companies that pay dividends to their stockholders. But because Pinnacol is required by statute to operate as a mutual insurance company, it pays dividends to its customers that earn them through their commitment to workplace safety.
This dividend also equates to Pinnacol returning — on average — 11 percent of premium to its policyholders. Pinnacol has issued a dividend 11 times since 2005, returning more than half a billion dollars in total general dividends to Colorado businesses.