EY Replaces KPMG as Auditor of Beazley
FTSE 250 firm Beazley has decided to appoint EY as its auditor replacing KPMG for the financial year ending December 31, 2019. The global insurer firm has taken the decision after conducting a competitive tender process.
The big four firm KPMG has been auditor of the company since it got listed in the year 2002. Although, KPMG was requested to be part of a non-competitive tender process in the year 2016, the Beazley’s audit services have not been a subject of a formal tender process since that date. in Beazley’s auditor since the company listed in 2002, and while the firm was requested to submit a non-competitive tender in 2016, the provision of external audit services has not been subject to a formal tender process since that date.
The insurer firm has now announced that after conducting a competitive tender process the company has decided that EY will be its new auditor for the fiscal year commencing January 1, 2019. The big four firm EY will conduct audit of the firm’s financial statements for the fiscal year ending December 31, 2019.
The insurer firm has said that KPMG will resign from its position as company’s auditor following the completion of the audit of the financial year ending December 31, 2018. KPMG was not able to participate in the recently conducted tender process mainly due to rules and regulations relating to mandatory requirement of rotating auditor.
According to Beazley’s 2017 annual report, the firm paid KPMG £684,540 as audit fee while fee paid for non-audit assignments and assurance services were £1.06m meaning that the firm in total received £1.75m.