AM Best Comments on Credit Ratings of Hallmark Financial Services, Inc. and Its Subsidiaries Following Leadership Change Announcement
AM Best has affirmed the Long-Term Issuer Credit Rating of “bbb-” and the Financial Strength Rating of A- (Excellent) for Hallmark Financial Services, Inc. (HALL), following the resignation of Naveen Anand as president and CEO. Mark E. Schwarz has been appointed to these roles effective February 27, 2021. Despite the management change, AM Best reports no immediate rating actions and maintains a negative outlook on the ratings.
Schwarz’s prior experience includes serving as CEO from 2003 to 2006. The financial results will be closely monitored during the transition.
- Mark E. Schwarz has extensive industry experience and a proven track record in the insurance sector.
- No immediate rating actions are expected from AM Best, indicating stability.
- The outlook of the Credit Ratings remains negative, suggesting potential future challenges.
- Management change may raise concerns regarding continuity and experience in the lead role.
AM Best has commented that the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” and the Long-Term Issue Credit Ratings (Long-Term IR) of Hallmark Financial Services, Inc. (Hallmark Financial) [NASDAQ: HALL] are unchanged by the recent announcement regarding the resignation of Naveen Anand as president and CEO and the appointment of current executive chairman, Mark E. Schwarz, to the additional positions of president and CEO, effective Feb. 27, 2021. Concurrently, the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term ICRs of “a-” of the members of Hallmark Insurance Group (Hallmark Group) also remain unchanged. The outlook of these Credit Ratings (ratings) remains negative. Operations are headquartered in Dallas, TX. (See below for a detailed listing of the companies and ratings).
AM Best acknowledges Schwarz’s extensive industry experience and track record in the insurance industry, having previously served as CEO of Hallmark Financial from January 2003 until August 2006, and as president from November 2003 through March 2006. AM Best does not foresee any immediate rating actions as a result of this change and will continue to closely monitor the financial results of Hallmark Financial, as the day-to-day management of the company begins to transition.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” remain unchanged for the following members of Hallmark Insurance Group:
- American Hallmark Insurance Company of Texas
- Hallmark Insurance Company
- Hallmark Specialty Insurance Company
- Hallmark County Mutual Insurance Company
- Hallmark National Insurance Company
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210118005327/en/
FAQ
What changes were announced in the leadership of Hallmark Financial Services (HALL)?
How did AM Best react to the management change at Hallmark Financial Services (HALL)?
What is the current outlook for Hallmark Financial Services (HALL) ratings?
What is Mark E. Schwarz's experience in the insurance industry?
