Hallmark Financial Announces Decision to Discontinue Pursuit of IPO to Separate Specialty Commercial Business
Hallmark Financial Services announced it will not pursue the separation of its Specialty Commercial business segment, thereby canceling its planned IPO. The company reported strong underlying operating results, including a pre-tax income of $14.6 million and a 6% growth in book value per share for the nine months ending September 30, 2021. Hallmark's Financial Strength Rating was reaffirmed at A- by A.M. Best. CEO Mark Schwarz highlighted the company's position to benefit from favorable insurance market conditions, emphasizing underwriting discipline for long-term profitability.
- Pre-tax income of $14.6 million for nine months ended September 30, 2021.
- 6% growth in book value per share for the same period.
- A.M. Best affirmed Hallmark's Financial Strength Rating at A-.
- Cancellation of IPO for Specialty Commercial business may limit options for investors.
DALLAS, Dec. 23, 2021 (GLOBE NEWSWIRE) -- Hallmark Financial Services, Inc. (the “Company” or “Hallmark”), a property and casualty insurance company comprised of three business segments (Specialty Commercial, Standard Commercial, and Personal), today announced that it is no longer actively pursuing the previously announced separation of its Specialty Commercial business segment. As a result, the Company does not intend to proceed with the previously announced initial public offering of the specialty commercial business.
Current evaluations by Hallmark’s board of directors note the significant progress achieved over the past 18 months, including the successful completion of a loss portfolio transfer transaction, improved underlying operating results (including pre-tax income of
“Hallmark and its subsidiaries are well positioned to benefit from current conditions in the insurance market, including a continuing favorable pricing environment. Exacting focus on underwriting discipline and the long-term growth and profitability of each of our business segments represents the greatest opportunity to enhance and realize the significant inherent value in each of them,” said Mark Schwarz, Hallmark’s Executive Chairman, President and Chief Executive Officer.
The Hallmark Board will continue to evaluate all actions that may enhance shareholder returns. The results of future analysis could differ materially from the present indications for a variety of reasons including potential fluctuations in operating results, management of growth and surplus, market conditions, competition, new business opportunities and the timing of related investments.
About Hallmark
Hallmark is a property and casualty insurance company with a diversified portfolio of insurance products written on a national platform. Through its six insurance subsidiaries, Hallmark markets, underwrites and services commercial and personal insurance in select markets. Hallmark is headquartered in Dallas, Texas and its common stock is listed on NASDAQ under the symbol “HALL”.
This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as “anticipates,” “expects,” “intends,” “plans” and “believes,” among others, generally identify forward-looking statements. These forward-looking statements are based on management’s current expectations and assumptions about future events, which are inherently subject to numerous risks, uncertainties and changes in circumstances that are difficult to predict and could cause actual results to differ materially from expectations, many of which are beyond the control of the Company. Certain of these risks and uncertainties are discussed in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the assumptions underlying these forward-looking statements are reasonable as of the date of this press release, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be correct. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that the objectives and plans of the Company will be achieved. You should not place undue reliance on these forward‑looking statements, which only reflect the views of the Company’s management as of the date of this press release. The Company does not undertake to update these forward-looking statements, except as may be required by law.
Investor Contact
Chris Kenney
Chief Financial Officer
817.348.1600
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FAQ
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