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%. Vulnerable liquidity (0.1) as a spike in claims may stretch capacity.
Other Rating Factors:
Weak overall results on stability tests (2.8) including excessive premium growth, weak results on operational trends and negative cash flow from operations for 2024. 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.
L - Past results on our liquidity tests.
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