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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 27, 2019 08:28 AM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of the members of Hallmark Insurance Group (Hallmark Group). Additionally, AM Best has affirmed the Long-Term ICR of “bbb-” of the group’s holding company parent, Hallmark Financial Services, Inc. (Hallmark Financial) [NASDAQ: HALL], as well as Hallmark Financial’s Long-Term Issue Credit Rating (Long-Term IR) and indicative Long-Term IRs. Operations are headquartered in Dallas, TX. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings.)
The ratings reflect Hallmark Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The group’s balance sheet strength assessment is based on its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and its heavy reliance on reinsurance. The assessment of the group’s adequate operating performance considers its results as it continues to expand its profitable specialty product lines, while the assessment of the group’s ERM recognizes its strong risk management framework with its conservative risk appetite.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-”, each with a stable outlook, have been affirmed for the members of Hallmark Insurance Group:
The following Long-Term IR was affirmed with a stable outlook:
—“bbb-” on $50 million 6.25% senior unsecured notes, due 2029
The following indicative Long-Term IRs were affirmed with stable outlooks:
—“bbb-” on senior unsecured debt
—“bb+” on subordinated debt
—“bb” on preferred stock
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 Understanding 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 rating agency and information provider with a unique focus on the insurance industry.