Hallmark Financial Announces Third Quarter 2020 Results
Hallmark Financial Services reported a net loss of $28.0 million for Q3 2020, significantly down from net income of $5.3 million in Q3 2019. The loss was impacted by a $21.7 million charge from a loss portfolio transfer and adverse reserve developments totaling $13.9 million. Despite a 12% drop in gross premiums written year-over-year, the company achieved rate increases averaging 20% in its Specialty Commercial Segment. Additionally, net combined ratio stood at 108.9% for the year-to-date, up from 95.6% in 2019, indicating worsening profitability.
- None.
- Net loss of $28.0 million in Q3 2020 compared to net income of $5.3 million in Q3 2019.
- Operating loss per share of $0.57 versus earnings per share of $0.35 in Q3 2019.
- 12% decrease in gross premiums written year-over-year.
- Net combined ratio of 108.9% year-to-date compared to 95.6% in 2019.
DALLAS, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Hallmark Financial Services, Inc. (“Hallmark Financial”) (NASDAQ: HALL) today announced financial results for the third quarter and nine months ended September 30, 2020.
Third Quarter | Year-to-Date | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
$ in millions: | (unaudited) | (unaudited) | |||||||||||
Net Income | $ | (28.0 | ) | $ | 5.3 | $ | (85.6 | ) | $ | 33.3 | |||
Operating (Loss) Earnings (1) | $ | (10.4 | ) | $ | 6.3 | $ | (0.7 | ) | $ | 19.6 | |||
$ per diluted share: | |||||||||||||
Net Income | $ | (1.54 | ) | $ | 0.29 | $ | (4.72 | ) | $ | 1.82 | |||
Operating (Loss) Earnings (1) | $ | (0.57 | ) | $ | 0.35 | $ | (0.04 | ) | $ | 1.07 |
(1) See “Non-GAAP Financial Measures” below
Highlights:
- Net loss of
$28.0 million in the third quarter was driven by the cost of a loss portfolio transfer ($21.7 million pre-tax) and adverse prior year reserve development ($13.9 million pre-tax). The adverse prior year reserve development was driven by$11.5 million from our Specialty Commercial Segment which was comprised mostly of$8.3 million from our Commercial Auto business unit. - The loss portfolio transfer completed in the third quarter resulted in a net pre-tax charge of
$21.7 million . This charge negatively impacted the net combined ratio by 18.2 points in the quarter, and 5.9 points year-to-date. - Hallmark Financial continued to achieve substantial rate increases, particularly in the Specialty Commercial Segment, with increases for this business averaging
20% for the quarter and19% year-to-date. - Gross premiums written decreased
12% compared to the prior year quarter ended September 30, 2019 and8% on a comparative year-to-date basis. Excluding premiums from the exited binding primary commercial auto business, gross premiums written would have decreased1% in the quarter and increased3% year-to-date, relative to the same prior year periods. - There were
$9.6 million of net catastrophe losses in the third quarter, or 8.1 points of the net combined ratio, and$22.2 million year-to-date, or 6.0 points of the net combined ratio. The year-to-date amount includes net loss and LAE reserves of$5.0 million related to novel coronavirus (“COVID-19”) pandemic claims.
“With the completion of the loss portfolio transfer transaction in the third quarter, and the affirmation of our rating by A.M. Best, Hallmark Financial is beginning to emerge from what has been a difficult year for the Company,” explained Naveen Anand, President and Chief Executive Officer. “While the loss portfolio transfer impacted our results this quarter, it provides substantial reinsurance coverage for the binding primary commercial automobile business we exited earlier this year.”
“The quarter also witnessed an above average number of catastrophe events for the industry,” continued Mr. Anand. “There have been 28 named storms in the Atlantic this year, with 11 of those making landfall, which is a record number in recent history. Also, this year, there have been numerous wildfires in California, the Pacific Northwest, and Colorado which have had a small but still measurable impact on our results. Net catastrophe losses have added six points to our combined ratio, which is above our historical average of between two and four points per year. These losses tend to be driven by a higher than normal frequency of smaller events, rather than from larger events. The Company has property catastrophe reinsurance in place, which provides coverage in excess of
“Hallmark Financial undertook a journey many years ago to transition from a regional auto insurer to an E&S focused specialty insurance company. While change is never easy and has required us to make tough decisions along the way, I am encouraged and proud of the efforts and dedication of our employees in working tirelessly to effect this change. The current market environment has provided the opportunity for improved pricing through rates, better deployment of limits to mitigate the impact of claims severity, and removal of underpriced risks through policy terms and conditions. While we have recalibrated our top line growth this year to be more in line with our capital base, incorporating the rates we have been achieving over the past six to eight quarters, it is clear that our premium relative to exposure is increasing at a favorable rate,” concluded Mr. Anand.
Third Quarter and Year-to-Date 2020 Financial Review
Third Quarter | Year-to-Date | ||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||
($ in thousands, unaudited) | |||||||||||||||||
Gross premiums written | 196,464 | 224,178 | -12 | % | 581,697 | 629,730 | -8 | % | |||||||||
Net premiums written | 116,111 | 127,773 | -9 | % | 351,603 | 369,019 | -5 | % | |||||||||
Net premiums earned | 119,560 | 112,499 | 6 | % | 369,089 | 318,028 | 16 | % | |||||||||
Investment income, net of expenses | 2,660 | 5,050 | -47 | % | 10,314 | 15,573 | -34 | % | |||||||||
Investment gains (losses), net (1) | (627 | ) | (1,342 | ) | 53 | % | (27,899 | ) | 17,412 | -260 | % | ||||||
Other-than-temporary impairment (1) | (1,692 | ) | - | nm | (1,692 | ) | - | nm | |||||||||
Net income (loss) | (28,004 | ) | 5,287 | -630 | % | (85,613 | ) | 33,341 | -357 | % | |||||||
Operating earnings (loss)(2) | (10,366 | ) | 6,347 | -263 | % | (707 | ) | 19,586 | -104 | % | |||||||
Net income (loss) per share - basic | $ | (1.54 | ) | $ | 0.29 | -631 | % | $ | (4.72 | ) | $ | 1.84 | -357 | % | |||
Net income (loss) per share - diluted | $ | (1.54 | ) | $ | 0.29 | -631 | % | $ | (4.72 | ) | $ | 1.82 | -359 | % | |||
Operating earnings (loss) per share - diluted (2) | $ | (0.57 | ) | $ | 0.35 | -263 | % | $ | (0.04 | ) | $ | 1.07 | -104 | % |
(1) Other-than-temporary impairment is included in investment gains (losses), net
(2) See “Non-GAAP Financial Measures” below
Gross Premiums Written
During the three and nine months ended September 30, 2020, Hallmark Financial’s gross premiums written were
Net Premiums Written
During the three and nine months ended September 30, 2020, Hallmark Financial’s net premiums written were
Net Premiums Earned
Hallmark Financial’s net premiums earned were
Investments
During the three and nine months ended September 30, 2020, net investment income was
Net investment losses were
At September 30, 2020 fixed-income securities were
At September 30, 2020, total investments were
Pre-Tax Income
Hallmark Financial had a pre-tax loss of
The decline in pre-tax results for the three months ended September 30, 2020 was predominately driven by the
The decline in pre-tax results for the nine months ended September 30, 2020 was predominately driven by the impairment of goodwill and other intangible assets of
Loss and Loss Adjustment Expenses (“LAE”) and Net Combined Ratios
Hallmark Financial reported a net combined ratio of
Losses and LAE for the three and nine months ended September 30, 2020 increased
Hallmark Financial had a net loss ratio of
The expense ratio was
Goodwill & Intangibles
In connection with its normal process for evaluating impairment triggering events during the first quarter of 2020, the Company determined that a significant decline in its market capitalization below its stockholders’ equity indicated the impairment of the goodwill and indefinite-lived intangible assets included in its balance sheet. As a result, the Company took a
Net Income
Hallmark Financial reported a net loss of
On a diluted basis per share, the Company reported a net loss of
Book Value Per Share
Hallmark Financial reported book value of
Non-GAAP Financial Measures
The Company’s financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). However, the Company also presents and discusses certain non-GAAP financial measures that it believes are useful to investors as measures of operating performance. Management may also use such non-GAAP financial measures in evaluating the effectiveness of business strategies and for planning and budgeting purposes. However, these non-GAAP financial measures should not be viewed as an alternative or substitute for the results reflected in the Company’s GAAP financial statements. In addition, the Company’s definitions of these items may not be comparable to the definitions used by other companies.
Operating earnings and operating earnings per share are calculated by excluding net investment gains and losses, impairment of goodwill and other intangible assets (“Impairments”) and the cost of the loss portfolio transfer transaction (“LPT”) entered into during the third quarter of 2020 from GAAP net income. The Impairments and LPT are unusual and infrequent charges for the Company. Management believes that operating earnings and operating earnings per share provide useful information to investors about the performance of and underlying trends in the Company’s core insurance operations. Net income and net income per share are the GAAP measures that are most directly comparable to operating earnings and operating earnings per share. A reconciliation of operating earnings and operating earnings per share to the most comparable GAAP financial measures is presented below.
Weighted | ||||||||||||||
Income (Loss) | Less Tax | Net | Average | Diluted | ||||||||||
($ in thousands) | Before Tax | Effect | After Tax | Shares Diluted | Per Share | |||||||||
Third Quarter 2020 | ||||||||||||||
Reported GAAP measures | $ | (37,306 | ) | $ | (9,302 | ) | $ | (28,004 | ) | 18,142 | $ | (1.54 | ) | |
Excluded loss portfolio transfer cost | ||||||||||||||
included in Losses and LAE | $ | 21,700 | $ | 4,557 | $ | 17,143 | 18,142 | $ | 0.94 | |||||
Excluded investment (gains)/losses | $ | 627 | $ | 132 | $ | 495 | 18,142 | $ | 0.03 | |||||
Operating earnings | $ | (14,979 | ) | $ | (4,613 | ) | $ | (10,366 | ) | 18,142 | $ | (0.57 | ) | |
Third Quarter 2019 | ||||||||||||||
Reported GAAP measures | $ | 6,660 | $ | 1,373 | $ | 5,287 | 18,295 | $ | 0.29 | |||||
Excluded investment (gains)/losses | $ | 1,342 | $ | 282 | $ | 1,060 | 18,295 | $ | 0.06 | |||||
Operating earnings | $ | 8,002 | $ | 1,655 | $ | 6,347 | 18,295 | $ | 0.35 | |||||
Year-to-Date 2020 | ||||||||||||||
Reported GAAP measures | $ | (101,309 | ) | $ | (15,696 | ) | $ | (85,613 | ) | 18,136 | $ | (4.72 | ) | |
Excluded impairment of goodwill | ||||||||||||||
and other intangible assets | $ | 45,996 | $ | 273 | $ | 45,723 | 18,136 | $ | 2.52 | |||||
Excluded loss portfolio transfer cost | ||||||||||||||
included in Losses and LAE | $ | 21,700 | $ | 4,557 | $ | 17,143 | 18,136 | $ | 0.95 | |||||
Excluded investment (gains)/losses | $ | 27,899 | $ | 5,859 | $ | 22,040 | 18,136 | $ | 1.21 | |||||
Operating earnings | $ | (5,714 | ) | $ | (5,007 | ) | $ | (707 | ) | 18,136 | $ | (0.04 | ) | |
Year-to-Date 2019 | ||||||||||||||
Reported GAAP measures | $ | 42,062 | $ | 8,721 | $ | 33,341 | 18,283 | $ | 1.82 | |||||
Excluded investment (gains)/losses | $ | (17,412 | ) | $ | (3,657 | ) | $ | (13,755 | ) | 18,283 | $ | (0.75 | ) | |
Operating earnings | $ | 24,650 | $ | 5,064 | $ | 19,586 | 18,283 | $ | 1.07 | |||||
About Hallmark Financial
Hallmark Financial is a specialty property and casualty insurance holding company with a diversified portfolio of insurance products written on a national platform. With six insurance subsidiaries, Hallmark Financial markets, underwrites and services commercial and personal insurance in select markets. Hallmark Financial is headquartered in Dallas, Texas and its common stock is listed on NASDAQ under the symbol "HALL."
Forward-looking statements in this release are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, interest rate trends, general economic conditions, the availability of financing, underwriting loss experience and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission.
For further information, please contact:
David Webb
Senior Vice President, Corporate Development and Strategy
817.348.1600
www.hallmarkgrp.com
Hallmark Financial Services, Inc. and Subsidiaries | ||||||
Consolidated Balance Sheets | ||||||
($ in thousands, except par value) | Sept. 30 | Dec. 31 | ||||
ASSETS | 2020 | 2019 | ||||
Investments: | (unaudited) | |||||
Debt securities, available-for-sale, at fair value (amortized cost: | $ | 417,569 | $ | 574,279 | ||
Equity securities (cost: | 23,372 | 99,215 | ||||
Other investment (cost: | 34 | 2,169 | ||||
Total investments | 440,975 | 675,663 | ||||
Cash and cash equivalents | 186,683 | 53,336 | ||||
Restricted cash | 17,671 | 1,612 | ||||
Ceded unearned premiums | 144,075 | 164,221 | ||||
Premiums receivable | 112,367 | 148,288 | ||||
Accounts receivable | 5,194 | 4,286 | ||||
Receivable for securities | 1,568 | 12,581 | ||||
Reinsurance recoverable | 504,472 | 315,466 | ||||
Deferred policy acquisition costs | 22,365 | 22,994 | ||||
Goodwill | - | 44,695 | ||||
Intangible assets, net | 1,938 | 5,087 | ||||
Federal income tax recoverable | 19,748 | 8,995 | ||||
Deferred federal income taxes, net | 8,012 | 2,185 | ||||
Prepaid expenses | 3,634 | 2,603 | ||||
Other assets | 28,805 | 33,262 | ||||
Total Assets | $ | 1,497,507 | $ | 1,495,274 | ||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||
Liabilities: | ||||||
Senior unsecured notes due 2029 (less unamortized debt issuance cost of | $ | 49,132 | $ | 49,058 | ||
Subordinated debt securities (less unamortized debt issuance cost of | 55,894 | 55,856 | ||||
Reserves for unpaid losses and loss adjustment expenses | 755,891 | 620,355 | ||||
Unearned premiums | 351,294 | 388,926 | ||||
Reinsurance balances payable | 67,346 | 59,274 | ||||
Pension liability | 1,141 | 1,388 | ||||
Payable for securities | 507 | 1,648 | ||||
Accounts payable and other accrued expenses | 40,123 | 55,487 | ||||
Total Liabilities | 1,321,328 | 1,231,992 | ||||
Commitments and contingencies | ||||||
Stockholders equity: | ||||||
Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2020 and 2019 | 3,757 | 3,757 | ||||
Additional paid-in capital | 122,877 | 123,468 | ||||
Retained earnings | 74,957 | 160,570 | ||||
Accumulated other comprehensive (loss) income | (386 | ) | 688 | |||
Treasury stock (2,730,673 shares in 2020 and 2,749,738 shares in 2019), at cost | (25,026 | ) | (25,201 | ) | ||
Total Stockholders Equity | 176,179 | 263,282 | ||||
Total Liabilities & Stockholders' Equity | $ | 1,497,507 | $ | 1,495,274 | ||
Hallmark Financial Services, Inc. and Subsidiaries | |||||||||||||
Consolidated Statements of Operations | Three Months Ended | Nine Months Ended | |||||||||||
($ in thousands, except per share amounts, unaudited) | September 30, | September 30, | |||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
Gross premiums written | $ | 196,464 | $ | 224,178 | $ | 581,697 | $ | 629,730 | |||||
Ceded premiums written | (80,353 | ) | (96,405 | ) | (230,094 | ) | (260,711 | ) | |||||
Net premiums written | 116,111 | 127,773 | 351,603 | 369,019 | |||||||||
Change in unearned premiums | 3,449 | (15,274 | ) | 17,486 | (50,991 | ) | |||||||
Net premiums earned | 119,560 | 112,499 | 369,089 | 318,028 | |||||||||
Investment income, net of expenses | 2,660 | 5,050 | 10,314 | 15,573 | |||||||||
Investment (losses) gains, net | (627 | ) | (1,342 | ) | (27,899 | ) | 17,412 | ||||||
Finance charges | 1,316 | 1,778 | 4,488 | 5,309 | |||||||||
Commission and fees | 209 | 287 | 793 | 944 | |||||||||
Other income | 15 | 13 | 48 | 43 | |||||||||
Total revenues | 123,133 | 118,285 | 356,833 | 357,309 | |||||||||
Losses and loss adjustment expenses | 124,253 | 78,548 | 312,531 | 221,861 | |||||||||
Operating expenses | 34,296 | 31,074 | 93,703 | 87,656 | |||||||||
Interest expense | 1,273 | 1,386 | 4,061 | 3,879 | |||||||||
Impairment of goodwill and other intangible assets | - | - | 45,996 | - | |||||||||
Amortization of intangible assets | 617 | 617 | 1,851 | 1,851 | |||||||||
Total expenses | 160,439 | 111,625 | 458,142 | 315,247 | |||||||||
(Loss) income before tax | (37,306 | ) | 6,660 | (101,309 | ) | 42,062 | |||||||
Income tax (benefit) expense | (9,302 | ) | 1,373 | (15,696 | ) | 8,721 | |||||||
Net (loss) income | $ | (28,004 | ) | $ | 5,287 | $ | (85,613 | ) | $ | 33,341 | |||
Net (loss) income per share: | |||||||||||||
Basic | $ | (1.54 | ) | $ | 0.29 | $ | (4.72 | ) | $ | 1.84 | |||
Diluted | $ | (1.54 | ) | $ | 0.29 | $ | (4.72 | ) | $ | 1.82 | |||
Hallmark Financial Services, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||
Consolidated Segment Data | ||||||||||||||||||||||||||||||
Three Months Ended Sept. 30 | ||||||||||||||||||||||||||||||
Specialty Commercial Segment | Standard Commercial Segment | Personal Segment | Corporate | Consolidated | ||||||||||||||||||||||||||
($ in thousands, unaudited) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Gross premiums written | $ | 150,016 | $ | 174,695 | $ | 24,726 | $ | 23,563 | $ | 21,722 | $ | 25,920 | $ | - | $ | - | $ | 196,464 | $ | 224,178 | ||||||||||
Ceded premiums written | (69,922 | ) | (84,369 | ) | (7,270 | ) | (7,814 | ) | (3,161 | ) | (4,222 | ) | - | - | (80,353 | ) | (96,405 | ) | ||||||||||||
Net premiums written | 80,094 | 90,326 | 17,456 | 15,749 | 18,561 | 21,698 | - | - | 116,111 | 127,773 | ||||||||||||||||||||
Change in unearned premiums | 3,764 | (14,043 | ) | (744 | ) | (590 | ) | 429 | (641 | ) | - | - | 3,449 | (15,274 | ) | |||||||||||||||
Net premiums earned | 83,858 | 76,283 | 16,712 | 15,159 | 18,990 | 21,057 | - | - | 119,560 | 112,499 | ||||||||||||||||||||
Total revenues | 86,589 | 81,341 | 17,398 | 16,344 | 20,513 | 22,943 | (1,367 | ) | (2,343 | ) | 123,133 | 118,285 | ||||||||||||||||||
Losses and loss adjustment expenses | 94,323 | 50,107 | 14,683 | 11,433 | 15,247 | 17,008 | - | - | 124,253 | 78,548 | ||||||||||||||||||||
Pre-tax income (loss) | (26,751 | ) | 14,766 | (1,672 | ) | 62 | (2,065 | ) | (740 | ) | (6,818 | ) | (7,428 | ) | (37,306 | ) | 6,660 | |||||||||||||
Net loss ratio (1) | 112.5 | % | 65.7 | % | 87.9 | % | 75.4 | % | 80.3 | % | 80.8 | % | 103.9 | % | 69.8 | % | ||||||||||||||
Net expense ratio (1) | 22.2 | % | 22.0 | % | 26.1 | % | 32.1 | % | 32.0 | % | 24.1 | % | 27.6 | % | 26.0 | % | ||||||||||||||
Net combined ratio (1) | 134.7 | % | 87.7 | % | 114.0 | % | 107.5 | % | 112.3 | % | 104.9 | % | 131.5 | % | 95.8 | % | ||||||||||||||
Favorable (Unfavorable) Prior Year Development | (11,493 | ) | (6,029 | ) | (1,431 | ) | (75 | ) | (987 | ) | (273 | ) | - | - | (13,911 | ) | (6,377 | ) |
(1) The net loss ratio is calculated as incurred losses and loss adjustment expenses divided by net premiums earned, each determined in accordance with GAAP. The net expense ratio is calculated as total underwriting expenses offset by agency fee income divided by net premiums earned, each determined in accordance with GAAP. The net combined ratio is calculated as the sum of the net loss ratio and the net expense ratio.
Hallmark Financial Services, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||
Consolidated Segment Data | ||||||||||||||||||||||||||||||
Nine Months Ended Sept. 30 | ||||||||||||||||||||||||||||||
Specialty Commercial Segment | Standard Commercial Segment | Personal Segment | Corporate | Consolidated | ||||||||||||||||||||||||||
($ in thousands, unaudited) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Gross premiums written | $ | 438,113 | $ | 482,034 | $ | 74,944 | $ | 70,926 | $ | 68,640 | $ | 76,770 | $ | - | $ | - | $ | 581,697 | $ | 629,730 | ||||||||||
Ceded premiums written | (198,526 | ) | (225,100 | ) | (21,770 | ) | (23,087 | ) | (9,798 | ) | (12,524 | ) | - | - | (230,094 | ) | (260,711 | ) | ||||||||||||
Net premiums written | 239,587 | 256,934 | 53,174 | 47,839 | 58,842 | 64,246 | - | - | 351,603 | 369,019 | ||||||||||||||||||||
Change in unearned premiums | 19,580 | (47,109 | ) | (3,643 | ) | 970 | 1,549 | (4,852 | ) | - | - | 17,486 | (50,991 | ) | ||||||||||||||||
Net premiums earned | 259,167 | 209,825 | 49,531 | 48,809 | 60,391 | 59,394 | - | - | 369,089 | 318,028 | ||||||||||||||||||||
Total revenues | 269,833 | 222,900 | 52,130 | 52,027 | 65,300 | 65,542 | (30,430 | ) | 16,840 | 356,833 | 357,309 | |||||||||||||||||||
Losses and loss adjustment expenses | 224,468 | 144,430 | 37,313 | 33,697 | 50,750 | 43,734 | - | - | 312,531 | 221,861 | ||||||||||||||||||||
Pre-tax income (loss) | (4,577 | ) | 33,161 | (154 | ) | 3,626 | (5,836 | ) | 3,274 | (90,742 | ) | 2,001 | (101,309 | ) | 42,062 | |||||||||||||||
Net loss ratio (1) | 86.6 | % | 68.8 | % | 75.3 | % | 69.0 | % | 84.0 | % | 73.6 | % | 84.7 | % | 69.8 | % | ||||||||||||||
Net expense ratio (1) | 19.4 | % | 22.1 | % | 30.6 | % | 30.4 | % | 27.0 | % | 23.3 | % | 24.2 | % | 25.8 | % | ||||||||||||||
Net combined ratio (1) | 106.0 | % | 90.9 | % | 105.9 | % | 99.4 | % | 111.0 | % | 96.9 | % | 108.9 | % | 95.6 | % | ||||||||||||||
Net Favorable (Unfavorable) Prior Year Development | (23,961 | ) | (11,232 | ) | (2,350 | ) | 3,508 | (6,948 | ) | (57 | ) | (33,259 | ) | (7,781 | ) |
(1) The net loss ratio is calculated as incurred losses and loss adjustment expenses divided by net premiums earned, each determined in accordance with GAAP. The net expense ratio is calculated as total underwriting expenses offset by agency fee income divided by net premiums earned, each determined in accordance with GAAP. The net combined ratio is calculated as the sum of the net loss ratio and the net expense ratio.
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FAQ
What were the financial results for Hallmark Financial (HALL) in Q3 2020?
How did Hallmark Financial's gross premiums perform in the third quarter of 2020?
What is the net combined ratio reported by Hallmark Financial for 2020?