Hallmark Financial Services, Inc. (“Hallmark”) (NASDAQ: HALL) today
announced financial results for the fourth quarter and fiscal year
ended December 31, 2021.
Highlights:
- Pre-tax loss was ($3.1) million for
the three months ended December 31, 2021, as compared to pre-tax
loss of ($13.3) million reported during the same period in 2020.
Pre-tax income was $11.5 million for the fiscal year ended December
31, 2021, as compared to a pre-tax loss of ($115.8) million for
fiscal 2020.
- Net loss was ($2.5) million, or
($0.14) per diluted share, in the fourth quarter of 2021 as
compared to net loss of ($7.8) million, or ($0.43) per diluted
share, for the same period of 2020. Fiscal 2021 net income was $9.0
million, or $0.50 per diluted share, as compared to a net loss of
($94.4) million, or ($5.20) per diluted share, for fiscal
2020.
- Net combined ratio was 106.1% and
101.1% for the three months and fiscal year ended December 31,
2021, compared to 117.7% and 111.3% for the same periods the prior
year.
- Gross premiums written for fiscal
2021 decreased 12% compared to fiscal 2020. Excluding premiums from
the exited binding primary commercial auto business, gross premiums
written for fiscal 2021 would have decreased 9% compared to the
same period of the prior year. (See “Non-GAAP” Financial Measures
below).
- Net premiums written for fiscal
2021 decreased 21% compared to fiscal 2020. Excluding premiums from
the exited binding primary commercial auto business, gross premiums
written for fiscal 2021 would have decreased 16% compared to fiscal
2020. (See “Non-GAAP” Financial Measures below).
- Net catastrophe losses were $5.9
million in the fourth quarter of 2021, or 6.8 points of the net
combined ratio as compared to $0.8 million, or 0.8 points of the
net combined ratio for the same period the prior year. Net
catastrophe losses were $18.3 million for fiscal 2021, or 4.8
points of the net combined ratio as compared to $23.1 million, or
4.9 points of the net combined ratio for fiscal 2020.
- Net investment gain was $10.2
million for fiscal 2021, which included $4.2 million of unrealized
gains on equity securities, as compared to net investment loss of
$22.9 million, which included $23.3 million of unrealized losses on
equity and other investment securities, during fiscal 2020.
Fourth Quarter and Fiscal 2021 Financial
Review
|
Fourth Quarter |
|
Fiscal Year |
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
% Change |
|
|
2021 |
|
|
2020 |
|
% Change |
($ in
thousands) |
|
|
|
|
|
|
|
Gross premiums written |
$ |
151,915 |
|
$ |
161,671 |
|
-6 |
% |
|
$ |
653,754 |
|
$ |
743,368 |
|
-12 |
% |
Net premiums written |
$ |
69,975 |
|
$ |
85,903 |
|
-19 |
% |
|
$ |
339,924 |
|
$ |
428,332 |
|
-21 |
% |
Net premiums earned |
$ |
86,509 |
|
$ |
109,884 |
|
-21 |
% |
|
$ |
379,290 |
|
$ |
471,901 |
|
-20 |
% |
Investment income, net of expenses |
$ |
2,139 |
|
$ |
2,606 |
|
-18 |
% |
|
$ |
9,715 |
|
$ |
12,920 |
|
-25 |
% |
Investment (losses) gains, net |
$ |
1,100 |
|
$ |
5,005 |
|
-78 |
% |
|
$ |
10,222 |
|
$ |
(22,894 |
) |
145 |
% |
Net income (loss) |
$ |
(2,545 |
) |
$ |
(7,810 |
) |
67 |
% |
|
$ |
9,004 |
|
$ |
(94,351 |
) |
110 |
% |
Operating income (loss) (2) |
$ |
(3,436 |
) |
$ |
(11,764 |
) |
71 |
% |
|
$ |
929 |
|
$ |
(13,399 |
) |
107 |
% |
Net income (loss) per share - basic |
$ |
(0.14 |
) |
$ |
(0.43 |
) |
67 |
% |
|
$ |
0.50 |
|
$ |
(5.20 |
) |
110 |
% |
Net income (loss) per share - diluted |
$ |
(0.14 |
) |
$ |
(0.43 |
) |
67 |
% |
|
$ |
0.50 |
|
$ |
(5.20 |
) |
110 |
% |
Operating income (loss) per share - diluted (2) |
$ |
(0.19 |
) |
$ |
(0.65 |
) |
71 |
% |
|
$ |
0.05 |
|
$ |
(0.74 |
) |
107 |
% |
Book value per share |
$ |
9.66 |
|
$ |
9.24 |
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other-than-temporary impairment is included in
investment gains (losses), net
(2) See “Non-GAAP Financial Measures” below
Gross Premiums WrittenGross premiums written
were $151.9 million and $653.8 million during the three months
ended and fiscal year ended December 31, 2021, respectively,
representing a decrease of 6% and 12%, from the $161.7 million and
$743.4 million in gross premiums written for the same periods in
2020.
Net Premiums WrittenNet premiums written were
$70.0 million and $339.9 million during the three months ended and
fiscal year ended December 31, 2021, representing a decrease of 19%
and 21%, from the $85.9 million and $428.3 million in net premiums
written for the same periods in 2020.
Net Premiums EarnedNet premiums earned were
$86.5 million and $379.3 million for the three months ended and
fiscal year ended December 31, 2021, representing a decrease of 21%
and 20%, from the $109.9 million and $471.9 million in net premiums
earned for the same periods in 2020.
InvestmentsNet investment income was $2.1
million and $9.7 million during the three months ended and fiscal
year ended December 31, 2021, as compared to $2.6 million and $12.9
million during the same periods in 2020. The decline in net
investment income was primarily due to lower interest rates
compared to the same periods during 2020 and an increase in the
proportion of cash and short-term investments held relative to
longer maturity investments.
Net investment gain was $1.1 million for the
three months and $10.2 million for the fiscal year ended December
31, 2021, as compared to net investment gain of $5.0 million and
net investment losses of $22.9 million, for the same periods in
2020. Net investment losses for the fiscal year ended
December 31, 2020 included $1.7 million of other-than-temporary
impairments reported during the third quarter comprised solely of
secured obligations of American Airlines, Inc. maturing in 2022 and
2023 that have since recovered to market prices in excess of 90% of
par value. The remaining net investment losses in fiscal 2020
were primarily due to sales of long-held equity securities in the
first quarter of 2020 during the market decline associated with the
COVID-19 pandemic. These sales were a management decision to
reallocate capital supporting the investment portfolio to insurance
underwriting operations and were not reflective of investment views
regarding the future prospects for the securities.
Fixed-income securities were $290.0 million as
of December 31, 2021 as compared to $507.3 million as of December
31, 2020, with a tax equivalent book yield of 2.4% compared to 2.7%
as of December 31, 2020. As of December 31, 2021, the fixed-income
portfolio had an average modified duration of 0.6 years and
74% of the securities had remaining time to maturity of five years
or less. As of December 31, 2020, the fixed-income
portfolio had an average modified duration of 0.8 years and
91% of the securities had remaining time to maturity of five years
or less. As of December 31, 2021, 14% of the total investment
portfolio was invested in equity securities as compared to 5% as of
December 31, 2020.
Total investments were $338.8 million as of
December 31, 2021. Cash and cash equivalents, including restricted
cash were $356.7 million. Total investments, cash and cash
equivalents, and restricted cash were $695.5 million or $38.27 per
share.
Pre-Tax Income (Loss)Pre-tax loss was ($3.1)
million for the three months ended December 31, 2021, as compared
to pre-tax loss of ($13.3) million reported during the same period
in 2020. Pre-tax income was $11.5 million for fiscal
2021, as compared to a pre-tax loss of ($115.8) million for fiscal
2020. The improvement in pre-tax results for fiscal 2021 as
compared to the prior year was primarily due to the absence of
$46.0 million of impairment charges to goodwill and
indefinite-lived intangible assets taken during the first quarter
of 2020, a $131.7 million decrease in losses and LAE and a $11.5
million decrease in operating expenses and a $2.0 million decrease
in amortization of intangible assets, partially offset by decreased
revenue. The impairment charges during the first quarter of 2020
resulted from our determination that a significant decline in
market capitalization below stockholders’ equity indicated the
impairment of the goodwill and indefinite-lived intangible assets
included in our balance sheet.
Loss and Loss Adjustment Expenses (“LAE”) and
Net Combined RatiosLosses and LAE for the three months and fiscal
year ended December 31, 2021 decreased $33.1 million and $131.7
million, as compared to the same periods during 2020, primarily due
to improved prior year net loss reserve development, lower fiscal
year net catastrophe losses and lower net premiums earned. There
was $4.2 million and $6.0 million of net unfavorable prior year
loss reserve development during the three months and fiscal year
ended December 31, 2021 as compared to net unfavorable prior year
loss reserve development of $25.0 million and $58.3 million during
the same periods in 2020. Net catastrophe losses were
$5.9 million and $18.3 million during the three months and fiscal
year ended December 31, 2021 as compared to $0.8 million and $23.1
million, during the same periods of 2020.
The net loss ratio was 75.8% and 72.6% for the
three months and fiscal year ended December 31, 2021, as compared
to 89.8% and 86.2% reported during the same periods in 2020.
Catastrophe losses contributed 6.8 points and 4.8 points to the net
loss ratio for the three months and fiscal year ended December 31,
2021, as compared to 0.8 points and 4.9 points for the same periods
during 2020. Net unfavorable prior year loss reserve
development contributed 4.9 points and 1.6 points to the net
loss ratio for the three months and fiscal year ended December 31,
2021, as compared to 22.8 points and 12.4 points for the same
periods during 2020.
The net expense ratio was 30.3% and 28.5% for
the three months and fiscal year ended December 31, 2021, as
compared to 27.9% and 25.1% during the same periods in 2020. The
Company reported net combined ratios of 106.1% and 101.1% for the
three months and fiscal year ended December 31, 2021, as compared
to 117.7% and 111.3% for the same periods during 2020. The increase
in the expense ratio during the quarter includes $1.6 million of
previously capitalized expenses related to the decision to
discontinue pursuit of an initial public offering of a
non-controlling ownership stake in the core business of its
Specialty Commercial business segment. This expense added 1.8
points and 0.4 points to the expense ratio during the three months
and fiscal year ended December 31, 2021, respectively.
Net Income (Loss)Net loss was ($2.5) million for
the three months ended December 31, 2021 and net income was $9.0
million for the fiscal year ended December 31, 2021, as compared to
net losses of ($7.8) million and ($94.4) million for the same
periods during 2020.
On a diluted basis per share, net loss was
($0.14) per share for the three months ended December 31, 2021 and
net income was $0.50 per share for the fiscal year ended December
31, 2021, as compared to net loss of ($0.43) per share and ($5.20)
per share for the same periods in 2020.
Book Value Per ShareBook value per share
increased 5% to $9.66 per share as of December 31, 2021 as compared
to $9.24 per share as of December 31, 2020.
Non-GAAP Financial Measures
The Company’s financial statements are prepared
in accordance with United States generally accepted accounting
principles (“GAAP”). However, the Company also presents and
discusses certain non-GAAP financial measures that it believes are
useful to investors as measures of operating performance.
Management may also use such non-GAAP financial measures in
evaluating the effectiveness of business strategies and for
planning and budgeting purposes. However, these non-GAAP financial
measures should not be viewed as an alternative or substitute for
the results reflected in the Company’s GAAP financial statements.
In addition, the Company’s definitions of these items may not be
comparable to the definitions used by other companies.
Operating loss and operating loss per share are
calculated by excluding net investment gains and losses and
impairment of goodwill and other intangible assets (collectively,
“Impairments”) from GAAP net income. The Impairments are unusual
and infrequent charges for the Company. Management believes that
operating earnings and operating earnings per share provide useful
information to investors about the performance of and underlying
trends in the Company’s core insurance operations. Net income and
net income per share are the GAAP measures that are most directly
comparable to operating earnings and operating earnings per share.
A reconciliation of operating earnings and operating earnings per
share to the most comparable GAAP financial measures is presented
below.
|
|
|
|
Weighted |
|
|
Income
(Loss) |
Less
Tax |
Net |
Average |
Diluted |
($ in
thousands) |
Before
Tax |
Effect |
After Tax |
Shares Diluted |
Per
Share |
Fourth Quarter 2021 |
|
|
|
|
|
Reported GAAP measures |
$ |
(3,113 |
) |
$ |
(546 |
) |
$ |
(2,567 |
) |
18,172 |
$ |
(0.14 |
) |
Excluded investment (gains)/losses |
$ |
(1,100 |
) |
$ |
(231 |
) |
$ |
(869 |
) |
18,172 |
$ |
(0.05 |
) |
Operating income |
$ |
(4,213 |
) |
$ |
(777 |
) |
$ |
(3,436 |
) |
18,172 |
$ |
(0.19 |
) |
|
|
|
|
|
|
Fourth Quarter 2020 |
|
|
|
|
|
Reported GAAP measures |
$ |
(13,284 |
) |
$ |
(5,474 |
) |
$ |
(7,810 |
) |
18,142 |
$ |
(0.43 |
) |
Excluded investment (gains)/losses |
$ |
(5,005 |
) |
$ |
(1,051 |
) |
$ |
(3,954 |
) |
18,142 |
$ |
(0.22 |
) |
Operating loss |
$ |
(18,289 |
) |
$ |
(6,525 |
) |
$ |
(11,764 |
) |
18,142 |
$ |
(0.65 |
) |
|
|
|
|
|
|
Fiscal 2021 |
|
|
|
|
|
Reported GAAP measures |
$ |
11,495 |
|
$ |
2,491 |
|
$ |
9,004 |
|
18,165 |
$ |
0.50 |
|
Excluded investment (gains)/losses |
$ |
(10,222 |
) |
$ |
(2,147 |
) |
$ |
(8,075 |
) |
18,165 |
$ |
(0.44 |
) |
Operating income |
$ |
1,273 |
|
$ |
344 |
|
$ |
929 |
|
18,165 |
$ |
0.05 |
|
|
|
|
|
|
|
Fiscal 2020 |
|
|
|
|
|
Reported GAAP measures |
$ |
(115,768 |
) |
$ |
(21,417 |
) |
$ |
(94,351 |
) |
18,137 |
$ |
(5.20 |
) |
Excluded impairment of goodwill and other intangibles |
$ |
45,996 |
|
$ |
273 |
|
$ |
45,723 |
|
18,137 |
$ |
2.52 |
|
Excluded loss portfolio transfer cost included in Losses and
LAE |
$ |
21,700 |
|
$ |
4,557 |
|
$ |
17,143 |
|
18,137 |
$ |
0.95 |
|
Excluded investment (gains)/losses |
$ |
22,894 |
|
$ |
4,808 |
|
$ |
18,086 |
|
18,137 |
$ |
1.00 |
|
Operating loss |
$ |
(25,178 |
) |
$ |
(11,779 |
) |
$ |
(13,399 |
) |
18,137 |
$ |
(0.74 |
) |
|
|
|
|
|
|
In February 2020, Hallmark made the strategic
decision to exit the contract binding line of the primary
automobile business as a result of increasing claim severity and
limited opportunity for meaningful rate increases. At that time,
the Company began the process of non-renewing policies and placing
in-force policies in runoff in accordance with state regulatory
guidelines. Management believes that presenting gross and net
premiums written excluding the contract binding line of the primary
automobile business provides useful information to investors about
the impact of this decision. A reconciliation of year-to-date GAAP
gross and net premiums written to gross and net premiums written
excluding the contract binding line of the primary automobile
business is presented below.
|
Gross Written Premium |
|
Net Written Premium |
|
2021 |
2020 |
% Change |
|
2021 |
2020 |
% Change |
($ in thousands) |
|
|
|
|
|
|
|
Reported written premium |
$ |
653,754 |
|
$ |
743,368 |
-12 |
% |
|
$ |
339,924 |
|
$ |
428,332 |
|
-21 |
% |
Less primary binding commercial auto |
$ |
218 |
|
$ |
25,420 |
-99 |
% |
|
$ |
48 |
|
$ |
23,694 |
|
-100 |
% |
Written premium excluding primary binding commercial auto |
$ |
653,536 |
|
$ |
717,948 |
-9 |
% |
|
$ |
339,876 |
|
$ |
404,638 |
|
-16 |
% |
|
|
|
|
|
|
|
|
About Hallmark
Hallmark is a specialty property and casualty
insurance holding company with a diversified portfolio of insurance
products written on a national platform. With six insurance
subsidiaries, Hallmark markets, underwrites and services commercial
and personal insurance in select markets. Hallmark is headquartered
in Dallas, Texas and its common stock is listed on NASDAQ under the
symbol "HALL."
Forward-looking statements in this release are
made pursuant to the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned
that actual results may differ materially from such forward-looking
statements. Forward-looking statements involve risks and
uncertainties including, but not limited to, continued acceptance
of the Company’s products and services in the marketplace,
competitive factors, interest rate trends, general economic
conditions, the availability of financing, underwriting loss
experience and other risks detailed from time to time in the
Company’s filings with the Securities and Exchange
Commission.
For further information, please contact:
Chris KenneyPresidentChief Financial Officer
817.348.1600www.hallmarkgrp.com
Hallmark Financial Services, Inc. and
Subsidiaries |
Consolidated Balance Sheets |
|
|
|
|
($ in thousands, except par value) |
|
Dec. 31 |
|
Dec. 31 |
ASSETS |
|
2021 |
|
2020 |
Investments: |
|
|
|
Debt securities, available-for-sale, at fair value (amortized cost:
$288,175 in 2021 and $502,167 in 2020) |
$ |
290,073 |
|
$ |
507,279 |
|
Equity securities (cost: $42,120 in 2021 and $26,988 in 2020) |
|
48,695 |
|
|
29,388 |
|
Total investments |
|
338,768 |
|
|
536,667 |
|
Cash and cash equivalents |
|
352,867 |
|
|
102,580 |
|
Restricted cash |
|
3,810 |
|
|
5,728 |
|
Ceded unearned premiums |
|
146,433 |
|
|
143,446 |
|
Premiums receivable |
|
90,621 |
|
|
120,332 |
|
Accounts receivable |
|
6,914 |
|
|
5,967 |
|
Receivable for securities |
|
1,326 |
|
|
913 |
|
Reinsurance recoverable |
|
549,964 |
|
|
497,846 |
|
Deferred policy acquisition costs |
|
6,811 |
|
|
17,840 |
|
Intangible assets, net |
|
819 |
|
|
1,322 |
|
Federal income tax recoverable |
|
18,217 |
|
|
24,691 |
|
Deferred federal income taxes, net |
|
8,906 |
|
|
8,724 |
|
Prepaid expenses |
|
2,389 |
|
|
2,648 |
|
Other assets |
|
25,753 |
|
|
28,013 |
|
Total Assets |
$ |
1,553,598 |
|
$ |
1,496,717 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Liabilities: |
|
|
|
|
Senior unsecured notes due 2029 (less unamortized debt issuance
costs of $746 in 2021 and $844 in 2020) |
$ |
49,254 |
|
$ |
49,156 |
|
Subordinated debt securities (less unamortized debt issuance costs
of $744. in 2021 and $795 in 2020) |
|
55,959 |
|
|
55,907 |
|
Reserves for unpaid losses and loss adjustment expenses |
|
816,681 |
|
|
789,768 |
|
Unearned premiums |
|
284,427 |
|
|
320,806 |
|
Reinsurance payable |
|
117,908 |
|
|
61,100 |
|
Pension liability |
|
174 |
|
|
1,859 |
|
Payable for securities |
|
3,280 |
|
|
- |
|
Accounts payable and other accrued expenses |
|
50,394 |
|
|
50,415 |
|
Total Liabilities |
|
1,378,077 |
|
|
1,329,011 |
|
Commitments and contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Common stock, $.18 par value, authorized 33,333,333 shares; issued
20,872,831 shares in 2021 and 2020 |
3,757 |
|
|
3,757 |
|
Additional paid-in capital |
|
122,844 |
|
|
122,893 |
|
Retained earnings |
|
74,703 |
|
|
65,699 |
|
Accumulated other comprehensive income |
|
(1,035 |
) |
|
383 |
|
Treasury stock (2,700,364 shares in 2021 and 2,730,673 shares in
2020), at cost |
|
(24,748 |
) |
|
(25,026 |
) |
Total Stockholders Equity |
|
175,521 |
|
|
167,706 |
|
Total Liabilities & Stockholders Equity |
$ |
1,553,598 |
|
$ |
1,496,717 |
|
|
Hallmark Financial Services, Inc. and
Subsidiaries |
|
|
|
|
Consolidated Statements of Operations |
Three Months Ended |
|
Fiscal Year Ended |
($ in thousands, except per share amounts) |
December 31, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
2021 |
2020 |
|
2021 |
2020 |
Gross premiums written |
$ |
151,916 |
|
$ |
161,671 |
|
|
$ |
653,754 |
|
$ |
743,368 |
|
Ceded premiums written |
|
(81,939 |
) |
|
(75,768 |
) |
|
|
(313,830 |
) |
|
(315,036 |
) |
Net premiums written |
|
69,977 |
|
|
85,903 |
|
|
|
339,924 |
|
|
428,332 |
|
Change in unearned premiums |
|
16,530 |
|
|
23,981 |
|
|
|
39,366 |
|
|
43,569 |
|
Net premiums earned |
|
86,507 |
|
|
109,884 |
|
|
|
379,290 |
|
|
471,901 |
|
|
|
|
|
|
|
|
|
|
|
Investment income, net of expenses |
|
2,139 |
|
|
2,606 |
|
|
|
9,715 |
|
|
12,920 |
|
Investment (losses) gains, net |
|
1,100 |
|
|
5,005 |
|
|
|
10,222 |
|
|
(22,894 |
) |
Finance charges |
|
1,026 |
|
|
1,217 |
|
|
|
4,344 |
|
|
5,705 |
|
Commission and fees |
|
327 |
|
|
363 |
|
|
|
1,069 |
|
|
1,156 |
|
Other income |
|
13 |
|
|
12 |
|
|
|
63 |
|
|
60 |
|
Total revenues |
|
91,112 |
|
|
119,087 |
|
|
|
404,703 |
|
|
468,848 |
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
65,570 |
|
|
98,629 |
|
|
|
275,244 |
|
|
406,907 |
|
Operating expenses |
|
27,279 |
|
|
31,860 |
|
|
|
112,467 |
|
|
123,919 |
|
Interest expense |
|
1,250 |
|
|
1,265 |
|
|
|
4,993 |
|
|
5,326 |
|
Impairment of goodwill and other intangible assets |
|
0 |
|
|
0 |
|
|
|
0 |
|
|
45,996 |
|
Amortization of intangible assets |
|
126 |
|
|
617 |
|
|
|
504 |
|
|
2,468 |
|
Total expenses |
|
94,225 |
|
|
132,371 |
|
|
|
393,208 |
|
|
584,616 |
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before tax |
|
(3,113 |
) |
|
(13,284 |
) |
|
|
11,495 |
|
|
(115,768 |
) |
Income tax (benefit) expense |
|
(546 |
) |
|
(5,474 |
) |
|
|
2,491 |
|
|
(21,417 |
) |
Net (loss) income |
$ |
(2,567 |
) |
$ |
(7,810 |
) |
|
$ |
9,004 |
|
$ |
(94,351 |
) |
|
|
|
|
|
|
|
|
|
|
Net (loss) income per share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.14 |
) |
$ |
(0.43 |
) |
|
$ |
0.50 |
|
$ |
(5.20 |
) |
Diluted |
$ |
(0.14 |
) |
$ |
(0.43 |
) |
|
$ |
0.50 |
|
$ |
(5.20 |
) |
|
|
|
|
|
|
Hallmark Financial Services, Inc. and
Subsidiaries |
Consolidated Segment Data |
|
|
|
|
Three Months Ended Dec. 31 |
|
|
|
|
|
|
|
|
|
|
|
Specialty Commercial Segment |
Standard Commercial Segment |
Personal Segment |
Corporate |
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
($ in thousands, unaudited) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Gross premiums written |
$ |
114,086 |
|
$ |
122,188 |
|
$ |
23,178 |
|
$ |
23,104 |
|
$ |
14,652 |
|
$ |
16,379 |
|
$ |
- |
|
$ |
- |
|
$ |
151,916 |
|
$ |
161,671 |
|
Ceded premiums written |
|
(73,242 |
) |
|
(68,069 |
) |
|
(8,627 |
) |
|
(7,882 |
) |
|
(70 |
) |
|
183 |
|
|
- |
|
|
- |
|
|
(81,939 |
) |
|
(75,768 |
) |
Net premiums written |
|
40,844 |
|
|
54,119 |
|
|
14,551 |
|
|
15,222 |
|
|
14,582 |
|
|
16,562 |
|
|
- |
|
|
- |
|
|
69,977 |
|
|
85,903 |
|
Change in unearned premiums |
|
11,883 |
|
|
20,809 |
|
|
2,951 |
|
|
1,801 |
|
|
1,696 |
|
|
1,371 |
|
|
- |
|
|
- |
|
|
16,530 |
|
|
23,981 |
|
Net premiums earned |
|
52,727 |
|
|
74,928 |
|
|
17,502 |
|
|
17,023 |
|
|
16,278 |
|
|
17,933 |
|
|
- |
|
|
- |
|
|
86,507 |
|
|
109,884 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
55,386 |
|
|
77,754 |
|
|
18,211 |
|
|
17,689 |
|
|
17,578 |
|
|
19,430 |
|
|
(63 |
) |
|
4,214 |
|
|
91,112 |
|
|
119,087 |
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
39,074 |
|
|
65,779 |
|
|
12,512 |
|
|
15,165 |
|
|
13,984 |
|
|
17,685 |
|
|
- |
|
|
- |
|
|
65,570 |
|
|
98,629 |
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income (loss) |
|
4,098 |
|
|
(2,000 |
) |
|
(377 |
) |
|
(2,885 |
) |
|
(1,679 |
) |
|
(4,502 |
) |
|
(5,155 |
) |
|
(3,897 |
) |
|
(3,113 |
) |
|
(13,284 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss ratio (1) |
|
74.1 |
% |
|
87.8 |
% |
|
71.5 |
% |
|
69.3 |
% |
|
85.9 |
% |
|
98.6 |
% |
|
|
|
75.8 |
% |
|
89.8 |
% |
Net expense ratio (1) |
|
24.9 |
% |
|
19.2 |
% |
|
35.6 |
% |
|
33.0 |
% |
|
27.9 |
% |
|
29.2 |
% |
|
|
|
30.3 |
% |
|
27.9 |
% |
Net combined ratio (1) |
|
99.0 |
% |
|
107.0 |
% |
|
107.1 |
% |
|
102.3 |
% |
|
113.8 |
% |
|
127.8 |
% |
|
|
|
106.1 |
% |
|
117.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net (Unfavorable) Favorable Prior Year Development |
|
(2,881 |
) |
|
(21,847 |
) |
|
(815 |
) |
|
(1,007 |
) |
|
(535 |
) |
|
(2,175 |
) |
|
|
|
(4,231 |
) |
|
(25,029 |
) |
|
|
|
|
|
|
|
|
|
|
|
(1) The net loss ratio is calculated as
incurred losses and loss adjustment expenses divided by net
premiums earned, each determined in accordance with GAAP. The net
expense ratio is calculated as total underwriting expenses offset
by agency fee income divided by net premiums earned, each
determined in accordance with GAAP. The net combined ratio is
calculated as the sum of the net loss ratio and the net expense
ratio.
Hallmark Financial Services, Inc. and
Subsidiaries |
Consolidated Segment Data |
|
|
|
|
Fiscal Year Ended Dec. 31 |
|
|
|
|
|
|
|
|
|
|
|
Specialty Commercial Segment |
Standard Commercial Segment |
Personal Segment |
Corporate |
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
($ in thousands, unaudited) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Gross premiums written |
$ |
480,981 |
|
$ |
560,301 |
|
$ |
105,560 |
|
$ |
98,048 |
|
$ |
67,213 |
|
$ |
85,019 |
|
$ |
- |
|
$ |
- |
|
$ |
653,754 |
|
$ |
743,368 |
|
Ceded premiums written |
|
(275,677 |
) |
|
(275,769 |
) |
|
(37,850 |
) |
|
(29,652 |
) |
|
(303 |
) |
|
(9,615 |
) |
|
- |
|
|
- |
|
|
(313,830 |
) |
|
(315,036 |
) |
Net premiums written |
|
205,304 |
|
|
284,532 |
|
|
67,710 |
|
|
68,396 |
|
|
66,910 |
|
|
75,404 |
|
|
- |
|
|
- |
|
|
339,924 |
|
|
428,332 |
|
Change in unearned premiums |
|
36,868 |
|
|
42,491 |
|
|
874 |
|
|
(1,842 |
) |
|
1,624 |
|
|
2,920 |
|
|
- |
|
|
- |
|
|
39,366 |
|
|
43,569 |
|
Net premiums earned |
|
242,172 |
|
|
327,023 |
|
|
68,584 |
|
|
66,554 |
|
|
68,534 |
|
|
78,324 |
|
|
- |
|
|
- |
|
|
379,290 |
|
|
471,901 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
252,368 |
|
|
340,515 |
|
|
71,295 |
|
|
69,819 |
|
|
73,969 |
|
|
84,730 |
|
|
7,071 |
|
|
(26,216 |
) |
|
404,703 |
|
|
468,848 |
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
164,729 |
|
|
285,994 |
|
|
49,152 |
|
|
52,478 |
|
|
61,363 |
|
|
68,435 |
|
|
- |
|
|
- |
|
|
275,244 |
|
|
406,907 |
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income (loss) |
|
32,915 |
|
|
(7,752 |
) |
|
(30 |
) |
|
(3,039 |
) |
|
(9,955 |
) |
|
(10,338 |
) |
|
(11,435 |
) |
|
(94,639 |
) |
|
11,495 |
|
|
(115,768 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss ratio (1) |
|
68.0 |
% |
|
87.5 |
% |
|
71.7 |
% |
|
78.9 |
% |
|
89.5 |
% |
|
87.4 |
% |
|
|
|
72.6 |
% |
|
86.2 |
% |
Net expense ratio (1) |
|
23.7 |
% |
|
19.3 |
% |
|
33.0 |
% |
|
31.1 |
% |
|
27.9 |
% |
|
27.5 |
% |
|
|
|
28.5 |
% |
|
25.1 |
% |
Net combined ratio (1) |
|
91.7 |
% |
|
106.8 |
% |
|
104.7 |
% |
|
110.0 |
% |
|
117.4 |
% |
|
114.9 |
% |
|
|
|
101.1 |
% |
|
111.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net (Unfavorable) Favorable Prior Year Development |
|
(2,670 |
) |
|
(45,808 |
) |
|
1,521 |
|
|
(3,357 |
) |
|
(4,891 |
) |
|
(9,123 |
) |
|
|
|
(6,040 |
) |
|
(58,288 |
) |
|
|
|
|
|
|
|
|
|
|
|
(1) The net loss ratio is calculated as
incurred losses and loss adjustment expenses divided by net
premiums earned, each determined in accordance with GAAP. The net
expense ratio is calculated as total underwriting expenses offset
by agency fee income divided by net premiums earned, each
determined in accordance with GAAP. The net combined ratio is
calculated as the sum of the net loss ratio and the net expense
ratio.
A photo accompanying this announcement is
available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/91031801-8d9a-498c-aa90-8e5be6b3a0c6
Hallmark Financial Servi... (NASDAQ:HALL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Hallmark Financial Servi... (NASDAQ:HALL)
Historical Stock Chart
From Sep 2023 to Sep 2024