Business Context and Reporting Period
This Form 8-K is a current report filed by United Insurance Holdings Corp. (not American Coastal Insurance Corp.) on June 1, 2018. The filing discloses a change in the company's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the auditor transition and historical audit opinions.
Material Changes
- Accountant Change: The Audit Committee dismissed RSM US LLP and engaged Deloitte & Touche LLP as the independent registered public accounting firm for the year ending December 31, 2018.
- Historical Audit Opinions: RSM's audit reports for the years ended December 31, 2017, and 2016 contained an adverse opinion regarding the effectiveness of internal control over financial reporting, though the consolidated financial statements themselves were not qualified or modified.
- Disagreements: There were no disagreements between the company and RSM on accounting principles, practices, or auditing scope during the relevant periods.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future performance. The primary risk disclosed is the historical adverse opinion on internal controls over financial reporting issued by the former auditor.
Investor Verification Checklist
- Verify the reason for the adverse opinion on internal controls issued by RSM for 2016 and 2017.
- Confirm the status of remediation efforts regarding internal control weaknesses prior to the 2018 audit by Deloitte.
- Review the attached letter from RSM US LLP (Exhibit 16.1) for any additional disclosures regarding the dismissal.
- Clarify the relationship between United Insurance Holdings Corp. and American Coastal Insurance Corp., as the filing name differs from the requested company name.