Major Rating Factors:
A history of deficient reserves (1.4 on a scale of 0 to 10) that places pressure on both capital and profits. In the last five years, reserves (two year development) fluctuated between 41% and 27% deficeint. Weak profitability index (2.3) with operating losses during 2019 and the first six months of 2022. Average return on equity over the last five years has been poor at -2.8%.
Other Rating Factors:
Vulnerable liquidity (0.2) as a spike in claims may stretch capacity. Weak overall results on stability tests (1.6). The largest net exposure for one risk is excessive at 7.5% of capital. Good overall long-term capitalization (5.3) based on good current risk adjusted capital (moderate loss scenario). However, capital levels have fluctuated during prior years.
Stability Factors:
L - Past results on our liquidity tests.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fire (20.0%), med mal (8.1%), personal/comm auto (7.1%), other (64.8%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (28.5%), non investment grade bonds (10.5%), common stock (8.5%), preferred stock (0.2%), other (52.4%)
Corporate Info
Group Affiliation
Hallmark Financial Services Inc
Investment Rating
Company Address
201 Robert S Kerr Ave Suite 60
Oklahoma City, OK 73102
Oklahoma City, OK 73102
Phone Number
(817) 348-1600
NAIC Number
26808
Website
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