Fort Worth-based Hallmark Financial Services Inc., reported operating results for the second quarter 2003, noting that net income for the quarter ended June 30, 2003 was $0.4 million or $0.03 per diluted share, as compared to net income of $0.1 million or $0.01 per diluted share for the same period in 2002.
For the six months ended June 30, 2003, the company reported net income of $9.0 million, or $0.77 per diluted share, as compared to a net loss of $1.4 million, or $0.12 per diluted share, for the six months ended June 30, 2002. Excluding the extraordinary gain related to the Phoenix acquisition in the first quarter of 2003 and the cumulative effect of a change in accounting principle recorded in 2002, net income for the six months ended June 30, 2003 was $0.8 million, as compared to net income of $0.3 million for the same period in 2002.
Total revenues were $18.0 million and $36.8 million for the second quarter and six months ended June 30, 2003, respectively, as compared to $5.9 million and $11.0 million for the corresponding 2002 periods.
Hallmark Financial’s improvement in second quarter 2003 earnings over 2002 were due to the acquisitions of Phoenix Indemnity Insurance Company in January 2003 and the Commercial Lines Group in December 2002. The improvement in operating earnings also reflects improved loss ratios at the American Hallmark Insurance Group primarily as a result of increases in premium rates.
“The Commercial Lines and Personal Lines Groups both performed well in the quarter benefiting from favorable market conditions as well as expense reduction efforts that are starting to be reflected in the financial results,” stated Timothy A. Bienek, president and COO. He added, “The completion of our rights offering will provide the Company with a strong foundation as we look for additional growth opportunities.”
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