Bermuda-based insurer and reinsurer, Aspen Insurance Holdings, has confirmed that KPMG will no longer serve as its independent registered public accounting firm, after Aspen identified “material weaknesses” in internal controls over financial reporting.
With effect from July 6th, Aspen has appointed Ernst & Young (EY) to replace KPMG as its accounting firm for the 2022 fiscal year.
“The Audit Committee and Board of Directors of the Company discussed the subject matter of such material weaknesses and associated remediation plans with KPMG and has authorized KPMG to respond fully to the inquiries of EY concerning such matters,” Aspen stated in an official filing on the matter.
“There are no limitations placed on KPMG or EY concerning inquiry of any matter related to the Company’s financial reporting.”
Aspen first indicated that it had uncovered “deficiencies” in its internal controls during its results report for 2021, released in May this year.
These included an overstatement of underwriting premium due to an incorrect treatment of foreign exchange gains and losses, as well as false estimations of tax charge and investments, and insufficient resources and knowledge within its outwards reinsurance operations.
Aspen is working to fix these oversights with actions including new credit controles and additional layers of management review, the company says.
