Major Rating Factors:
Poor long-term capitalization index (2.1 on a scale of 0 to 10) based on weak current risk adjusted capital (severe loss scenarios), although results have slipped from the good range over the last two years. A history of deficient reserves (1.3) that places pressure on both capital and profits. In the last five years, reserves (two year development) fluctuated between 21.9% and 66.7% deficient. Vulnerable liquidity (0.0) as a spike in claims may stretch capacity.
Other Rating Factors:
Weak overall results on stability tests (2.9) including excessive premium growth, weak results on operational trends and weak risk adjusted capital in prior years. The largest net exposure for one risk is high at 4.2% of capital. Fair profitability index (2.9) with operating losses during 2020, 2022 and 2024.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
G - Fast asset or premium growth.
L - Past results on our liquidity tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (60.9%), comm multi (29.3%), fire (0.9%), homeowners (0.8%), product liab. (0.2%), other (7.9%)
Licensed in:
All states except CA, DC, NH, SD, VT
Principal Investments:
Investment grade bonds (44.8%), common stock (23.0%), cash (12.9%), preferred stock (2.8%), other (16.6%)
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
43494
Website
Largest Affiliates