HALLMARK FINANCIAL TO ACQUIRE TGA

Hallmark Financial Services Inc. recently reported that it plans to acquire Texas General Agency Inc. and certain affiliates.

TGA is a managing general agency that markets and services property and casualty insurance products, with an emphasis on commercial automobile and general liability risks. The acquisition includes TGA’s insurance subsidiary, Gulf States Insurance Company, which reinsures a portion of the business written by TGA, as well as TGA Special Risk Inc., which brokers mobile home insurance.

Closing conditions include, among other things, execution of employment agreements between TGA and the three individual sellers, obtaining consent to the transaction from the Oklahoma Commissioner of Insurance, and Hallmark’s prior or contemporaneous acquisition of an affiliated entity, Pan American Acceptance Corporation. The transaction is expected to be effective as of Jan. 1, 2006. Philo Smith & Co. served as advisor to TGA on the transaction.

“We believe that TGA’s experienced management team and established network of general and retail agents will be complementary to Hallmark’s existing Commercial Lines Group,” stated Mark E. Schwarz, Hallmark’s president and CEO.

Based in Fort Worth, Hallmark Financial’s business involves marketing and underwriting of non-standard personal automobile insurance primarily in Texas, Arizona and New Mexico; marketing and underwriting commercial insurance primarily in Texas, New Mexico, Idaho, Oregon, Montana and Washington; third party claims administration; and other insurance related services.

Topics Mergers & Acquisitions Texas