A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of Hallmark Insurance Group (Hallmark Group) of Fort Worth, Texas, and its operating members.
Additionally, A.M. Best affirmed the ICR of “bbb-” for the group’s holding company parent, Hallmark Financial Services Inc. (Hallmark Financial).
The outlook for all ratings is stable.
The affirmation of the ratings reflects Hallmark Group’s strong risk-adjusted capitalization, consistent operating performance and the financial flexibility afforded by Hallmark Financial. Furthermore, the ratings consider Hallmark Group’s organic surplus growth through profitable underwriting performance and solid investment income in recent years.
In addition, the acquisitions of various agency production sources by Hallmark Financial have resulted in a greater geographic and product spread of risk for Hallmark Group.
These rating factors are partially offset by Hallmark Group’s continued execution risk associated with the development of various parent company acquisitions, as well as geographic and product expansion initiatives.
Since more than half of Hallmark Group’s direct premiums written are concentrated in three key states, earnings remain susceptible to increased competition and changes in the regulatory, judicial and legislative environments.
Source: A.M. Best
Topics AM Best
Was this article valuable?
Here are more articles you may enjoy.
Robotaxi Riders Are Falling Asleep, Sparking Frantic 911 Calls 
US P/C Industry Books Best Result in a Decade but Not All Lines Enjoy Success 
Two Years in, Ortiz Steps Down as CEO of Florida Re 
Viewpoint: Is Your GL Policy Leaving You Exposed as Digital Risk Shifts? 
