NATIONAL GENERAL HOLDINGS CORP. (NASDAQ:NGHC) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Item 4.02
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Non-Reliance on Previously Issued Financial Statements or a
Related Audit Report or Completed Interim Review. |
National General Holdings Corp. (the Company), after discussion
with BDO USA, LLP, the Companys independent registered public
accounting firm, determined that Managements Report on Internal
Control over Financial Reporting and the related Report of
Independent Registered Accounting Firm on internal control over
financial reporting included in the Companys Annual Report on Form
10-K for the fiscal year ended December 31, 2015 should no longer
be relied upon.
control over financial reporting for 2016, management determined
that there was a material weakness in its internal control over
financial reporting as of December 31, 2015 (the 2015 Material
Weakness) relating to the precision and sufficiency of formal
documentation, including determining the completeness and accuracy
of reports used in the operation of managements review procedures,
in particular as it relates to the following areas: (i) investment
accounting – the documentation of investment reconciliations and
the documentation of the procedures for review of securities for
other than temporary impairment and valuation of investments; (ii)
accounting for acquisitions – in particular the documentation
related to the opening balance sheet and the documentation related
to the development of assumptions used in the valuation of
intangibles; (iii) accounting for income taxes – the documentation
of the procedures for review of the income tax provision; and (iv)
completeness and accuracy of reports used in accounting for
premiums, investments and loss reserves and claims.
deficiencies, in internal control over financial reporting, such
that there is a reasonable possibility that a material misstatement
of the company’s annual or interim financial statements will not
be prevented or detected on a timely basis. Since December 31,
2015, the 2015 Material Weakness has been remediated, with the
assistance of qualified consultants, by the development and
implementation of additional documentation processes with enhanced
precision and formalized review procedures. Management has
concluded that the 2015 Material Weakness did not have any impact
on the Companys consolidated financial position and management has
concluded that the consolidated financial statements included in
our Annual Report on Form 10-K for the year ended December 31, 2015
present fairly, in all material respects, the financial position of
the Company as of December 31, 2015.
Amendment to its Form 10-K for the year ended December 31, 2015 on
Form 10-K/A solely to revise Managements Report on Internal Control
over Financial Reporting and its evaluation of disclosure controls
and procedures (included in its Annual Report on Form 10-K for the
fiscal year ended December 31, 2015) to reflect the conclusions by
the Companys management that internal control over financial
reporting and disclosure control and procedures were not effective
as of December 31, 2015 and to revise BDO USA, LLPs related
attestation report.
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Item 8.01
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Other Events.
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to the timing of the filing of its Annual Report on Form 10-K for
the period ended December 31, 2016 and with respect to the 2015
Material Weakness. A copy of the press release is attached hereto
as Exhibit 99.1 and is incorporated herein by reference. The press
release attached hereto as Exhibit 99.1 is furnished and not filed
to Instruction B.2 of Form 8-K.
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Item 9.01
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Financial Statements and Exhibits
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(d)
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Exhibits
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Exhibit Number
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Description
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99.1
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Press Release dated March 16, 2017
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About NATIONAL GENERAL HOLDINGS CORP. (NASDAQ:NGHC)
National General Holdings Corp. is a personal lines insurance holding company. Through its subsidiaries, the Company provides a range of insurance products, including personal and commercial automobile, homeowners, umbrella, recreational vehicle, supplemental health, lender-placed and other niche products. It operates through two segments: Property and Casualty (P&C) and Accident and Health (A&H). Its P&C segment offers its P&C insurance products through a network of agents, a number of affinity partners and through direct-response marketing programs. Its A&H segment provides accident and non-major medical health insurance products targeting its existing P&C policyholders and the anticipated market of employed persons who are uninsured or underinsured. Its automobile insurance products protect its customers against losses due to physical damage to their motor vehicles, bodily injury and liability to others for personal injury or property damage arising out of auto accidents. NATIONAL GENERAL HOLDINGS CORP. (NASDAQ:NGHC) Recent Trading Information
NATIONAL GENERAL HOLDINGS CORP. (NASDAQ:NGHC) closed its last trading session down -0.15 at 24.01 with 138,353 shares trading hands.
