Major Rating Factors:
Weak profitability index (1.9 on a scale of 0 to 10) with operating losses during 2022. Vulnerable liquidity (0.0) as a spike in claims may stretch capacity. Weak overall results on stability tests (0.0) 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 36.9% of capital.
Other Rating Factors:
Fair reserve development (3.8) as the level of reserves has at times been insufficient to cover claims. In 2021 and 2020 the two year reserve development was 25.1% and 36.3% deficient respectively. Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2023.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
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:
--
Licensed in:
AL, AR, AZ, CO, GA, IA, IL, IN, KS, KY, MD, MN, MO, MS, NC, ND, OH, PA, SC, SD, TN, UT, WI, WV
Principal Investments:
Cash (56.1%), investment grade bonds (0.3%), other (43.6%)
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
19530
Website
Largest Affiliates