Major Rating Factors:
A history of deficient reserves (1.6 on a scale of 0 to 10) that places pressure on both capital and profits. In four of the last five years reserves (two year development) were between 19% and 53% deficient. Weak profitability index (1.3) with operating losses during 2020 and 2022. Average return on equity over the last five years has been poor at -14.2%.
Other Rating Factors:
Vulnerable liquidity (0.6) as a spike in claims may stretch capacity. Weak overall results on stability tests (2.4) including weak results on operational trends and negative cash flow from operations for 2022. The largest net exposure for one risk is high at 4.2% of capital. Good overall long-term capitalization (6.3) based on good current risk adjusted capital (moderate loss scenario). However, capital levels have fluctuated during prior years.
Stability Factors:
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:
Personal/comm auto (49.7%), comm multi (40.6%), homeowners (1.4%), product liab. (0.3%), fire (0.2%), other (7.7%)
Licensed in:
All states except CA, NH, SD, PR
Principal Investments:
Common stock (46.6%), investment grade bonds (40.0%), non investment grade bonds (7.8%), preferred stock (1.1%), other (4.5%)
Corporate Info
Group Affiliation
Hallmark Financial Services Inc
Investment Rating
Company Address
5420 Lyndon B Johnson Freeway
Dallas, TX 75240
Dallas, TX 75240
Phone Number
(817) 348-1887
NAIC Number
43494
Website
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