UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: June 1, 1999
SYMONS INTERNATIONAL GROUP, INC.
State of Incorporation:
Indiana
Commission File Number IRS Employer Id. Number
No. 1-12369 No. 35-1707115
Address of Principal Executive Offices:
4720 Kingsway Drive
Indianapolis, Indiana 46205
Telephone No.
(317) 259-6400
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ITEM 4. CHANGE IN REGISTRANTS CERTIFYING ACCOUNTANTS
Symons International Group, Inc. ("Company") today announces that its Audit
Committee and Board of Directors has approved the appointment, effective
immediately, of Arthur Andersen LLP ("Andersen") as the Company's independent
auditor to replace PricewaterhouseCoopers LLP ("PWC"), whose resignation was
accepted effective June 1, 1999.
The independent accountants reports of PWC on the consolidated financial
statements of the Company for the past two years ended December 31, 1998 and
December 31, 1997 contained no adverse opinion or disclaimer of opinion, and
were not qualified or modified as to uncertainty, audit scope or accounting
principle.
During the Company's two most recent fiscal years and the subsequent interim
period through June 1, 1999 there were no disagreements with PWC on any matter
of accounting principle or practice, financial statement disclosure, or audit
scope or procedure, which disagreements if not resolved to the satisfaction of
PWC would have caused them to make reference thereto in their report on the
consolidated financial statements for such years.
During the two most recent fiscal years and through June 1, 1999, there were the
following reportable events as the term is defined in Item 304(a)(1)(v)(A) of
Regulation S-K related to the Company's crop division subsidiary, IGF Insurance
Company, each of which arose during the year ended December 31, 1998:
a) The crop division subsidiary did not monitor loss development on a
timely basis for the Multi-Peril Crop Insurance (MPCI) product
subsequent to the initial calculation of an underwriting gain, a
significant portion of which was ultimately reversed.
b) The crop division subsidiary did not actively reconcile
differences between the general ledger and a subsidiary ledger
relating to certain premium receivable balances, necessitating the
establishment of significant reserves for the unreconciled
difference.
c) The crop division subsidiary did not utilize centralized processes
to monitor either the extent or authorization of special
commission agreements. As a result, a significant interim
commission expense adjustment was required in the third quarter of
1998.
The reportable events as described herein were reported to and discussed with
the Audit Committee of the Company's Board of Directors. The Company has
authorized PWC to respond fully to the inquiries of Andersen concerning each of
these reportable events.
There were no other reportable events as the term is defined in Item
304(a)(1)(v) other than that described herein.
During the two most recent fiscal years and through June 1, 1999 prior to
engaging Andersen, neither the Company nor anyone on its behalf consulted
Andersen regarding either:
a) 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, and neither a
written report nor oral advice was provided to the Company that
Andersen concluded was an important factor considered by the Company in
reaching a decision as to accounting, auditing or financial reporting
issues; or
b) Any matter that was the subject of either a disagreement or any
other event described above.
The Company has requested that PWC furnish it with a letter addressed to the SEC
stating whether or not PWC agrees with the statements contained herein that
relate to PWC's engagement as the Company's independent accountant.
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Symons International Group, Inc.
By: /s/ Alan G. Symons
Alan G. Symons
Chief Executive Officer
Date: June 8, 1999
