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 the last five years, reserves (two year development) fluctuated between 21.9% and 66.7% deficient. Weak profitability index (2.9) with operating losses during 2022, 2024 and 2025. Vulnerable liquidity (0.8) as a spike in claims may stretch capacity.
Other Rating Factors:
Fair long-term capitalization index (3.2) based on fair current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2023. Good overall results on stability tests (4.9) including weak risk adjusted capital in prior years and negative cash flow from operations for 2025. The largest net exposure for one risk is high at 3.9% of capital.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
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:
Personal/comm auto (66.9%), comm multi (26.9%), homeowners (0.8%), product liab. (0.2%), other (5.1%)
Licensed in:
All states except CA, DC, NH, SD, VT
Principal Investments:
Investment grade bonds (48.5%), common stock (28.3%), cash (6.9%), preferred stock (1.5%), other (14.8%)
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) 348-1600
NAIC Number
43494
Website
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