Hallmark Financial Services to Acquire Texas General Agency

Hallmark Financial Services Inc. announced it has executed a definitive agreement to acquire Texas General Agency Inc. and certain affiliates.

TGA is a managing general agency involved in the marketing and servicing of property and casualty insurance products, with a particular emphasis on commercial automobile and general liability risks. The acquisition will also include TGA’s wholly-owned 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 chief executive officer.

“This acquisition will significantly expand the scope of Hallmark’s insurance marketing operations and provide opportunities for increased underwriting by our commercial lines insurance carrier,” Schwarz continued.

Hallmark has filed with the Securities and Exchange Commission a Current Report on Form 8-K containing additional information concerning the TGA purchase agreement.

Fort Worth-based Hallmark Financial Services engages primarily in the sale of property and casualty insurance products. The company’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