Market Overview

Hallmark Financial Announces Third Quarter 2019 Earnings Results

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DALLAS, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Hallmark Financial Services, Inc. ("Hallmark Financial") (NASDAQ:HALL) today announced financial results for the third quarter and nine months ended September 30, 2019.

               
  (Unaudited) Third Quarter   Year-to-Date  
      2019     2018     2019   2018  
  $ in millions:              
    Net Income $ 5.3   $ 9.7   $ 33.3 $ 15.4  
    Operating Earnings (1) $ 6.3   $ 4.2   $ 19.6 $ 13.3  
               
  $ per diluted share:                
    Net Income $ 0.29   $ 0.53   $ 1.82 $ 0.85  
    Operating Earnings (1) $ 0.35   $ 0.23   $ 1.07 $ 0.73  
                         
      (1) See "Non-GAAP Financial Measures" below 

Third Quarter 2019 Highlights (all comparisons to same prior year period):

  • Gross premiums written increased 33% to $224.2 million
     
  • Net premiums written increased 45% to $127.8 million
     
  • Net combined ratio improved to 95.8% compared to 98.1%
     
  • Net income of $5.3 million, or $0.29 per diluted share, compared to $9.7 million, or $0.53 per diluted share
     
  • Operating earnings of $6.3 million, or $0.35 per diluted share, compared to $4.2 million, or $0.23 per diluted share (see "Non-GAAP Financial Measures" below)
     
  • Net investment losses of $1.3 million, including $0.2 million in net realized gains and a $1.5 million decrease in net unrealized gains, compared to net investment gains of $7.0 million 

Year-to-Date September 30, 2019 Highlights (all comparisons to same prior year period):

  • Gross premiums written increased 27% to $629.7 million
     
  • Net premiums written increased 37% to $369.0 million
     
  • Net combined ratio improved to 95.6% compared to 97.5%
     
  • Net income of $33.3 million, or $1.82 per diluted share, compared to $15.4 million, or $0.85 per diluted share
     
  • Operating earnings of $19.6 million, or $1.07 per diluted share, compared to $13.3 million, or $0.73 per diluted share (see "Non-GAAP Financial Measures" below)
     
  • Net investment gains of $17.4 million, including $4.4 million in net realized gains and a $13.0 million increase in net unrealized gains, compared to net investment gains of $2.7 million 
     
  • Annualized return on beginning stockholders' equity of 17.4%
     
  • Annualized operating return on beginning stockholder's equity of 10.2%, driven by strong underwriting results (see "non-GAAP Financial Measures" below)
     
  • Book value per share grew 11% over prior year and 15% year-to-date to $16.36
                 
  Third Quarter   Year-to-Date  
    2019     2018   % Change     2019     2018   % Change  
($ in thousands, unaudited)            
Gross premiums written   224,178     169,112   33 %     629,730     495,836   27 %  
Net premiums written   127,773     88,012   45 %     369,019     269,291   37 %  
Net premiums earned   112,499     88,862   27 %     318,028     271,787
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