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FOR IMMEDIATE RELEASE
HALLMARK FINANCIAL SERVICES, INC.
ANNOUNCES SECOND QUARTER 2017 RESULTS
FORT WORTH, Texas, (August 7, 2017) - Hallmark Financial Services, Inc. (NASDAQ: HALL) today announced results for its second fiscal quarter ended June 30, 2017, including the following highlights:
|·||2nd quarter 2017 net loss of $3.4 million, or $0.18 per diluted share|
|·||Year to date 2017 net income of $0.6 million, or $0.03 per diluted share|
|·||Net combined ratio of 105.1% for 2nd quarter 2017 and 101.9% for year to date 2017|
|·||2nd quarter 2017 unfavorable prior year reserve development of $10.2 million versus $1.0 million favorable development for prior year|
|·||2nd quarter 2017 total revenues of $93.5 million, increased 3% over prior year|
|·||Year to date 2017 total revenues of $190.4 million, increased 5% over prior year|
“Overall, I’m disappointed in our results as our progress was over-shadowed by prior year loss development from older accident years. This prior year loss development added 11.2 points to the quarter and 5.4 points to the year to date net combined ratio results. Excluding the adverse prior year reserve development, the net combined ratios would have been 93.9% for the second quarter of 2017 and 96.5% for year to date 2017. Our strategy to develop into a diversified specialty insurer is taking hold and we are bringing our commercial and personal auto product lines in balance with the rest of the portfolio.” said Naveen Anand, President and Chief Executive Officer.
“The Specialty Commercial Segment now represents over 75% of our written premium and it is well positioned for sustained growth and profitability particularly as many of our specialty lines products continue to gain traction. Gross premiums written within the Specialty Commercial Segment increased by 23% for the quarter and 17% for year to date 2017 as we continue to optimize our product mix and overall portfolio. The unfavorable prior year reserve development - primarily from commercial auto - added 12.4 points in the quarter and 6.6 points for year to date 2017 to the net combined ratio for the Specialty Commercial Segment,” continued Mr. Anand.
“Results for the Standard Commercial Segment, were adversely impacted by run-off programs, but were nonetheless profitable for the first half of 2017. Losses from severe weather events were down considerably despite a sharp increase in the number of events in our territory. In our Personal Lines Segment, year to date gross premiums written decreased by 17%. We are seeing some improvement in this segment as our underwriting actions and improved claims management processes are beginning to have the expected positive impact,” concluded Mr. Anand.
Mark E. Schwarz, Executive Chairman of Hallmark, stated, “We reported book value per share of $14.57 as of June 30, 2017, which is an increase of 2% during the first six months of 2017. Our total cash and investments increased by $8.8 million during the first six months of 2017 to $749.9 million, or $41.12 per share. Our balance sheet remains liquid with a very short duration in our investment portfolio and cash balances (including restricted cash) of $80.9 million as of June 30, 2017, ready to be deployed as we see opportunity.”
The following information was filed by Hallmark Financial Services Inc (HALL) on Tuesday, August 8, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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