Grant Thornton issues negative verdict on Bermuda reinsurer | Insurance business America
It is said that the company did not consolidate the annual financial statements of a subsidiary
reinsurance
By Kenneth Araullo
Independent auditor Grant Thornton has issued an adverse opinion on the financial statements of Bermuda reinsurance company Annuity and Life Re (Holdings), an investment holding company.
The auditor found that the reinsurer did not consolidate the financial statements of its subsidiary Multivir Inc., a Houston-based cancer researcher and clinical-stage biotech company focused on gene therapy drugs for oncology patients. The Company is committed to developing immunotherapies that target the fundamental molecular defects of cancer and has multiple active and planned clinical trials.
The decision was made because the investment is fully impaired in the group’s consolidated financial statements and the group has documented plans to dispose of it.
According to the Royal Gazette, Holdings reported a net profit of $563,077 for 2023, compared to a net loss of $1,937,212 in 2022.
The financial statements include the accounts of Holdings and its wholly owned subsidiary, Annuity and Life Reassurance, Ltd, a Class C insurer in Bermuda. Annuity and Life Reassurance has not entered into any long-term business since December 31, 2005 and does not plan to resume such activities in the near future.
What led to the negative opinion?
It was believed that if Multivir Inc. had been consolidated, many elements of the financial statements would have been materially affected. What impact this omission would have on the consolidated financial statements has not yet been clarified, it said.
Because of the significance of these matters, the auditors concluded that the financial statements do not fairly present the financial position of Annuity and Life Re (Holdings), Ltd or the results of operations and cash flows in accordance with accounting principles generally accepted in the United States as of December 31 2023 and 2022.
The notes to the Company’s consolidated financial statements filed with the Bermuda Stock Exchange indicate that management considered the loans to Multivir Inc to be impaired.
A deduction of $100,000 for principal and $869,019 for interest was recorded in 2023, compared to $51,500 for principal and $864,299 for interest in 2022.
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2024-05-29 13:53:52
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