Hallmark Financial Services Inc., headquartered in Fort Worth, Texas, announced that its subsidiary, American Hallmark Insurance Co. of Texas, is acquiring TBIC Holding Corp. and its wholly owned subsidiaries Texas Builders Insurance Co. and TBIC Risk Management Inc.
The estimated initial base purchase price is $1.7 million, net of approximately $0.4 million holdback payable four calendar quarters following closing, and up to $3 million contingent consideration payable four years after closing. The transaction will be funded from existing working capital.
TBIC is an Austin, Texas-based insurance company writing small and middle market workers’ compensation business in Texas.
Formed in 1987, TBIC organized as a stock property casualty insurance company providing workers’ compensation insurance to segments of the highway construction industry that could not obtain coverage in the standard market. In 1996, TBIC expanded its business plan and began to provide workers’ compensation insurance to a broad range of risks competing with standard companies.
TBIC writes annual premiums of approximately $5 million of low hazard business produced through independent agents.
Hallmark Chief Executive Officer and President Mark J. Morrison said the company has been seeking the right vehicle through which to enter the workers’ compensation market for several years. He said the company is adding TBIC as an extension of its standard commercial segment product line offering.
Source: Hallmark Financial Services Inc.
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