HALLMARK FINANCIAL SERVICES, INC. (NASDAQ:HALL) Files An 8-K Changes in Registrant’s Certifying Accountant

Item 4.01

(a)Ernst Young LLP (EY) was previously the independent registered
public accounting firm for Hallmark Financial Services, Inc. (the
Company). Effective August 18, 2017, EY was dismissed as the
Companys independent registered public accounting firm. The
decision to change accountants was approved by the Audit
Committee of the Companys board of directors (the Audit
Committee).

During the two fiscal years ended December 31, 2016, and the
subsequent interim periods preceding August 18, 2017, there were
no (i) disagreements with EY on any matter of accounting
principles or practices, financial statement disclosure, or
auditing scope or procedures, which disagreements if not resolved
to EYs satisfaction would have caused EY to make reference in
connection with their opinion to the subject matter of the
disagreement, or (ii) reportable events within the meaning of
Item 304(a)(1)(v) of Regulation S-K.

EYs audit reports on the Companys consolidated financial
statements as of and for the years ended December 31, 2016 and
2015 did not contain any adverse opinion or disclaimer of
opinion, and were not qualified or modified as to uncertainty,
audit scope or accounting principles.

The Company has provided EY with a copy of the disclosures
contained in this Form 8-K and has requested that EY furnish to
the Company a letter addressed to the Securities and Exchange
Commission stating whether EY agrees with the statements
contained herein and, if not, stating the respects in which it
does not agree. A copy of EYs letter concurring with the
statements contained herein is attached as Exhibit 16.1 to this
Form 8-K.

(b) On August 18, 2017, the Audit Committee appointed BDO USA,
LLP (BDO) as the Companys independent registered public
accounting firm for the fiscal year ending December 31, 2017.
During the two most recent fiscal years ended December 31, 2016
and 2015, and through the subsequent interim periods preceding
such appointment, the Company did not consult with BDO regarding
either (i) the application of accounting principles to a
specified transaction, either completed or proposed, or the type
of audit opinion that might be rendered on the Companys financial
statements, or (ii) any matter that was either the subject of a
disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K
and the related instructions to Item 304 of Regulation S-K), or a
reportable event (as defined in Item 304(a)(1)(v) of Regulation
S-K).

HALLMARK FINANCIAL SERVICES INC Exhibit
EX-16.1 2 v473816_ex16-1.htm EXHIBIT 16.1   Exhibit 16.1       August 21,…
To view the full exhibit click here

About HALLMARK FINANCIAL SERVICES, INC. (NASDAQ:HALL)

Hallmark Financial Services, Inc. is an insurance holding company. The Company markets, distributes, underwrites and services its property/casualty insurance products to businesses and individuals. Its business involves marketing, distributing, underwriting and servicing insurance products, as well as providing other insurance related services. Its segments include Standard Commercial Segment, Specialty Commercial Segment and Personal Segment. The Company’s Standard Commercial P&C operating unit primarily underwrites low-severity, short-tailed commercial property/casualty insurance products in the standard market. The Company reinsures a portion of the risk it underwrites in order to control the exposure to losses and to protect capital resources. Its Workers Compensation operating unit specializes in small and middle market workers compensation business. Its Specialty Commercial operating unit offers general aviation and satellite launch insurance products and services.