Hallmark Fiscal Checking out the Separation of its Specialty Commercial Organization

DALLAS, Jan. 21, 2021 (Globe NEWSWIRE) — Hallmark Economic Solutions, Inc. (the “Company” or “Hallmark Financial”), a assets and casualty insurance policies firm comprised of a few enterprise segments (Specialty Business, Common Business, and Personalized), announced that it is discovering the separation of its Specialty Professional organization.

First evaluations by Hallmark Financial’s Board of Directors show that separating the Specialty Industrial business enterprise may possibly unlock major value by segregating the operational buildings of its segments. Just about every section currently operates underneath a exclusive small business product, utilizes its individual distribution channels and has a various return profile. The Board thinks that developing two different companies may possibly attain a far more proper combination valuation and increase obtain to cash.

Hallmark Financial’s Specialty Commercial segment represented 75{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0} of the Company’s gross quality written, and 68{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0} of its net high quality composed, by way of the initial 3 quarters of 2020. This enterprise has skilled sizeable level will increase around the previous 12 quarters, mounting from approximately 7{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0} to about 20{23996c8f5258275f450f40d5a867c22ad72c04895f28059581bc525cc6cb4bd0} in Q3 2020. The Specialty Professional organization is a diversified portfolio of products positioned just about completely through wholesale brokers, with the large majority prepared on an Excessive & Surplus strains foundation.

Hallmark Financial’s Board of Directors and government administration workforce are functioning with guidance from its financial, organization and legal advisors Raymond James & Associates, Inc., Willis Re Inc., Olshan Frome Wolosky LLP and McGuire, Craddock & Strother, P.C. to evaluate the Company’s latest composition and the strategic, operational, cash and tax implications of the prospective separation.   In addition, the Board of Directors has engaged the govt look for organization Reilly Associates, Inc. of Chicago to discover qualified candidates to provide as the chief government officer of a stand-on your own Specialty Professional corporation.

No last conclusion has nonetheless been made with respect to the structure of the proposed establishment of a stand-alone Specialty Business business. No assurance can be presented whether a separation transaction will just take place, the form of any such transaction or the timing of any transaction. Any separation of the Specialty Commercial enterprise stays issue to numerous circumstances and approvals which include, but not minimal to, the approval of the Board of Directors and demanded regulatory approvals.&#13

About Hallmark Financial
Hallmark Money is a property and casualty insurance firm with a diversified portfolio of insurance policy solutions created on a countrywide system. By way of its six insurance policies subsidiaries, Hallmark Fiscal marketplaces, underwrites and solutions both business and personal lines coverage in pick out markets. Hallmark Fiscal is headquartered in Dallas, Texas and its common stock is listed on NASDAQ under the symbol “Corridor”.   

Investor Contact
David Webb
Senior Vice President, Corporate Improvement & Method

A photo accompanying this announcement is out there at https://www.globenewswire.com/NewsRoom/AttachmentNg/e4cb3bfe-2211-41c7-85dc-eead5518cbc3

Rachel C. Carpenter

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