HALLMARK FINANCIAL SERVICES, INC. (NASDAQ:HALL) Files An 8-K Changes in Registrant’s Certifying AccountantItem 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 Company’s independent registered public accounting firm. The decision to change accountants was approved by the Audit Committee of the Company’s 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 EY’s 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.
EY’s audit reports on the Company’s 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 EY’s 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 Company’s 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 Company’s 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).
| Item 9.01 | Financial Statements and Exhibits |
| 16.1 | Ernst & Young LLP letter dated August 21, 2017. |
HALLMARK FINANCIAL SERVICES INC ExhibitEX-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.
