DALLAS, Texas, Oct. 07, 2022 (GLOBE NEWSWIRE) — Hallmark Financial Services, Inc. (the “Company” or “Hallmark”; NASDAQ: HALL), a property and casualty insurance firm, right now introduced the sale of its extra and surplus (“E&S”) strains operations to Core Specialty Insurance Holdings, Inc. (“Core Specialty”), a specialty property and casualty insurer, for $40.0 million money consideration, plus an estimated $19.9 million consideration for the acquisition prices related to sure internet unearned premium reserves. The transaction is comprised of 9 business models throughout the Company’s Specialty Commercial business section, sure associated belongings and liabilities, and the quick transition to Core Specialty of roughly 200 staff who produce and help these E&S strains companies. Core Specialty’s acquisition and assumption of the E&S companies and the associated belongings and liabilities shall be efficient as of September 30, 2022.
Certain key phrases of the transaction embrace:
- Hallmark insurance subsidiaries will enter right into a quota share reinsurance settlement with a Core Specialty insurance subsidiary to imagine 100% of Hallmark’s unearned premium reserves related to the acquired E&S companies, internet of inuring third occasion reinsurance.
- The transaction contains the acquisition of Hallmark’s company subsidiary Heath XS, LLC, which does business as Hallmark E&S, and all information, company relationships, mental property, lease preparations and personnel associated to the acquired E&S companies.
- Core Specialty is not going to purchase any insurance firm entities as half of the transaction, and the transaction excludes loss reserves related to the acquired E&S companies, which shall be retained by Hallmark.
The transaction doesn’t embrace Hallmark’s Standard Commercial business section, Personal business section, Aerospace & Programs business unit, the exited Binding Primary Auto business, or any business produced by third-party program managers (which features a senior care and a business auto program), every of which shall be retained by Hallmark.
Hallmark expects the approximate $59.9 million enhance in statutory capital (much less transaction and different bills), acquire on sale, and related capital reduction to strengthen its steadiness sheet and lead to a extra disciplined and streamlined firm, higher positioned to concentrate on the execution of its business methods.
Raymond James & Associates, Inc. (“Raymond James”) rendered monetary advisory providers to the Company in reference to the transaction. The Board of Directors of the Company additionally engaged Raymond James to supply an opinion as as to if the transaction consideration acquired by the Company is honest, from a monetary level of view, to Hallmark. Olshan Frome Wolosky LLP served as authorized counsel to Hallmark in reference to the transaction.
Hallmark will file with the Securities and Exchange Commission a Current Report on Form 8-Okay containing extra info in regards to the Core Specialty transaction.
About Hallmark Financial
Hallmark Financial is a property and casualty insurance firm with a diversified portfolio of insurance merchandise written on a nationwide platform. Through its six insurance subsidiaries, Hallmark Financial markets, underwrites and providers business and private insurance in choose markets. Hallmark Financial is headquartered in Dallas, Texas and its frequent inventory is listed on NASDAQ underneath the image “HALL”.
This press launch incorporates “forward-looking” statements throughout the that means of the Private Securities Litigation Reform Act of 1995. The use of phrases reminiscent of “anticipates,” “expects,” “intends,” “plans” and “believes,” amongst others, typically determine forward-looking statements. These forward-looking statements are primarily based on administration’s present expectations and assumptions about future occasions, that are inherently topic to quite a few dangers, uncertainties and adjustments in circumstances which can be tough to foretell and might trigger precise outcomes to vary materially from expectations, many of that are past the management of the Company. Certain of these dangers and uncertainties are mentioned within the Company’s filings with the Securities and Exchange Commission. Although the Company believes the assumptions underlying these forward-looking statements are cheap as of the date of this press launch, any of the assumptions might be inaccurate and, due to this fact, there may be no assurance that any forward-looking statements will show to be right. In gentle of the numerous uncertainties inherent in these forward-looking statements, the inclusion of such info shouldn’t be considered a illustration that the targets and plans of the Company shall be achieved. You mustn’t place undue reliance on these ahead‑trying statements, which solely replicate the views of the Company’s administration as of the date of this press launch. The Company doesn’t undertake to replace these forward-looking statements, besides as could also be required by regulation.
Investor Contact
Chris Kenney
President & CFO
817.348.1600
www.hallmarkgrp.com
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