Market Overview

A.M. Best Affirms Credit Ratings of Hallmark Financial Services, Inc. and Its Subsidiaries


A.M. Best has affirmed the Financial Strength Rating (FSR) of A-
(Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
"a-" of the members of Hallmark Insurance Group (Hallmark Group).
Additionally, A.M. Best has affirmed the Long-Term ICR of "bbb-" of the
group's holding company parent, Hallmark Financial Services, Inc.
(Hallmark Financial) (NASDAQ:HALL). Operations are headquartered in
Fort Worth, TX. The outlook of these Credit Ratings (ratings) is stable.
(See below for a detailed listing of the companies.)

The ratings reflect Hallmark Group's balance sheet strength, which A.M.
Best categorizes as very strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise risk

Hallmark Group's net loss reserves developed adversely in 2017 by about
$38 million, with the majority of that development stemming from the
commercial automobile liability line. A.M. Best expects that remedial
actions taken by management, including improvement in the claims
handling process, to mitigate future net reserve deficiencies.

The FSR of A- (Excellent) and the Long-Term ICRs of "a-", each with a
stable outlook, have been affirmed for the members of Hallmark Insurance

  • American Hallmark Insurance Company of Texas
  • Hallmark Insurance Company
  • Hallmark Specialty Insurance Company
  • Hallmark County Mutual Insurance Company
  • Hallmark National Insurance Company

This press release relates to Credit Ratings that have been published
on A.M. Best's website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
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