Tuesday, March 09, 2010
Pinnacol Worth $374,000,000?
The Denver Post is indicating that Pinnacol Assurance is worth $374,000,000. This follows last months effort by Pinnacol to pay $200,000,000 (some cash some over time)to the state of Colorado for greater autonomy. Pinnacol is the largest workers comp insurer in the state and is a hybrid of public-private insurance having been created by the state and yet is now seeking,in my opinion, to be as close to a private company as it can get. In tough times when the state budget is having its own problems Pinnacol is making the state think about getting some cash from it to ease the state's money woes. This seems to be an ongoing story that just keeps going so will the state try to cash out of Pinnacol or structure a cash settlement with it? Time will tell but I do know that any cash figure that is paid out over time is not valued by totaling the sum of the payments. When you buy a house and pay for it over time that is not the present value of the house if you had cash in hand.