Business Context and Reporting Period
This Form 8-K is a current report filed by Greenlight Capital Re, Ltd. on September 30, 2021. The registrant is a Cayman Islands company with Class A Ordinary Shares (GLRE) trading on the Nasdaq Global Select Market. The report specifically addresses a change in the company's certifying accountant.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This document is a disclosure of a corporate governance event rather than a financial performance report.
Material Changes
The primary material change disclosed is the appointment of a new independent registered public accounting firm:
- New Auditor: Deloitte Ltd. has been appointed as the independent registered public accounting firm for the fiscal year ending December 31, 2022.
- Outgoing Auditor: BDO USA, LLP, which served as the auditor since 2006, was dismissed effective immediately following the filing of the Annual Report on Form 10-K for the fiscal year ending December 31, 2021.
- Reasoning: The Audit Committee initiated an evaluation process earlier in the year as a matter of good governance to consider audit firm rotation.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future business performance. Regarding risks and contingencies related to the auditor change:
- Audit Opinions: BDO's reports for the fiscal years ended December 31, 2020, and 2019 did not contain adverse opinions, disclaimers, or qualifications.
- Disagreements: There were no disagreements between the registrant and BDO on accounting principles, financial statement disclosure, or auditing scope during the relevant periods.
- Consultations: The registrant did not consult with Deloitte regarding accounting principles or audit opinions prior to the appointment.
Key Facts for Investor Verification
- Verify the completion of Deloitte's standard client acceptance procedures and the execution of the engagement letter.
- Confirm the effective date of the transition, which is tied to the filing of the 2021 Form 10-K.
- Review the letter from BDO USA, LLP (Exhibit 16.1) to confirm their agreement with the statements regarding the lack of disagreements or reportable events.
- Note that BDO will continue to serve as the auditor for the fiscal year ending December 31, 2021.