Major Rating Factors:
A history of deficient reserves (1.8 on a scale of 0 to 10). Underreserving can have an adverse impact on capital and profits. In four of the last five years reserves (two year development) were between 38.0% and 75.3% deficient. Weak profitability index (1.6) with operating losses during 2022 and 2023. Average return on equity over the last five years has been poor at -6.8%. Weak overall results on stability tests (0.9) including excessive premium growth, weak results on operational trends and negative cash flow from operations for 2024. The largest net exposure for one risk is excessive at 21.1% of capital.
Other Rating Factors:
Fair liquidity (3.5) as cash resources may not be adequate to cover a spike in claims. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2020.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
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Licensed in:
OK
Principal Investments:
Investment grade bonds (50.4%), other (49.6%)
Corporate Info
Group Affiliation
Hallmark Financial Services Inc
Investment Rating
Company Address
Two Lincoln Centre
Dallas, TX 75240
Dallas, TX 75240
Phone Number
(817) 348-1600
NAIC Number
26808
Website
Largest Affiliates