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 (1.4) 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 15.6% of capital.
Other Rating Factors:
Fair reserve development (4.0) as the level of reserves has at times been insufficient to cover claims. Deficiencies in the two year reserve development occurred in three of the previous five years and ranged between 16.7% and 30.2%. Strong long-term capitalization index (9.4) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting significant 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:
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Licensed in:
All states except CO, CT, DC, ME, VA, VT
Principal Investments:
Cash (28.5%), common stock (19.1%), investment grade bonds (5.4%), other (47.0%)
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
34037
Website
Largest Affiliates