AM Best Comments on Credit Ratings of Hallmark Financial Services, Inc. and Its Subsidiaries Following Leadership Change Announcement

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” and the Long-Term Issue Credit Ratings (Long-Term IR) of Hallmark Financial Services, Inc. (Hallmark Financial) [NASDAQ: HALL] are unchanged by the recent announcement regarding the resignation of Naveen Anand as president and CEO and the appointment of current executive chairman, Mark E. Schwarz, to the additional positions of president and CEO, effective Feb. 27, 2021. Concurrently, the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term ICRs of “a-” of the members of Hallmark Insurance Group (Hallmark Group) also remain unchanged. The outlook of these Credit Ratings (ratings) remains negative. Operations are headquartered in Dallas, TX. (See below for a detailed listing of the companies and ratings).

AM Best acknowledges Schwarz’s extensive industry experience and track record in the insurance industry, having previously served as CEO of Hallmark Financial from January 2003 until August 2006, and as president from November 2003 through March 2006. AM Best does not foresee any immediate rating actions as a result of this change and will continue to closely monitor the financial results of Hallmark Financial, as the day-to-day management of the company begins to transition.

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” remain unchanged for the following members of Hallmark Insurance Group:

• 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 AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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