Benzinga | Dec 23, 2021 10:41AM EST

Hallmark Financial Reports Will Discontinue Pursuit Of IPO To Separate Specialty Commercial Unit

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 $14.6 million and 6% growth in book value per share for the nine months ended September 30, 2021), and A.M. Best's recent affirmation of Hallmark's Financial Strength Rating (FSR) of A- (Excellent).

"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.