The Legislative Audit Committee accepted the audit presentation of Pinnacle Assurance’s audited statutory financial statements for the year ended Dec. 31, 2023. Independent auditors Johnson Lambert issued an unmodified opinion on Pinnacle’s statutory basis financial statements but noted the statements are prepared on a statutory (regulatory) basis rather than U.S. generally accepted accounting principles (GAAP).

Pinnacle officials and the auditors described key financial results: admitted assets were reported at about $3.2 billion and total liabilities were reported at about $1.5 billion, with policyholder surplus increasing by approximately $997 million in 2024 (per the audit presentation), driven by net income and unrealized investment gains. Auditors called out that certain subsidiary and related‑party matters—principally Pinnacle’s 100% ownership of CAKE (a digital agent and technology company)—are carried on an equity basis under statutory accounting and would be consolidated under GAAP. Auditors characterized Pinnacle’s purchase of Attune software from CAKE as a significant, unusual transaction and said they identified no audit adjustments and no material weaknesses in internal control.

John O’Donnell, president and CEO of Pinnacle Assurance, thanked auditors and emphasized the company’s financial strength and role in Colorado’s workers’ compensation market. CFO Kathy Krantz told the committee Pinnacle targets capital adequacy (using an AM Best formula) in the 55–70 range and said the company’s surplus is intended to ensure claims payments and policyholder stability. The board declared a policyholder dividend in November 2024; under statutory accounting that dividend is recorded when declared.

The audit reported no findings or recommendations that required corrective action under government auditing standards. The committee released the audited financial statements. The report and the auditors’ management letter are part of the public record and will be available through the committee’s release.