DALLAS, Jan. 21, 2021 (Globe NEWSWIRE) — Hallmark Economical Services, Inc. (the “Company” or “Hallmark Financial”), a assets and casualty insurance plan firm comprised of a few business enterprise segments (Specialty Commercial, Standard Business, and Own), introduced that it is exploring the separation of its Specialty Industrial organization.
Preliminary evaluations by Hallmark Financial’s Board of Administrators reveal that separating the Specialty Professional business may possibly unlock sizeable benefit by segregating the operational buildings of its segments. Every single section now operates below a exclusive business design, makes use of its possess distribution channels and has a unique return profile. The Board thinks that establishing two different firms could achieve a a lot more suitable combination valuation and make improvements to access to cash.
Hallmark Financial’s Specialty Business phase represented 75% of the Company’s gross top quality published, and 68% of its net quality prepared, by the to start with a few quarters of 2020. This enterprise has skilled considerable amount increases over the earlier 12 quarters, growing from roughly 7% to around 20% in Q3 2020. The Specialty Industrial business is a diversified portfolio of products and solutions positioned just about exclusively by way of wholesale brokers, with the vast bulk written on an Excessive & Surplus strains basis.
Hallmark Financial’s Board of Directors and government management staff are performing with support from its financial, company and legal advisors Raymond James & Associates, Inc., Willis Re Inc., Olshan Frome Wolosky LLP and McGuire, Craddock & Strother, P.C. to appraise the Company’s present-day framework and the strategic, operational, funds and tax implications of the likely separation. Furthermore, the Board of Administrators has engaged the executive research agency Reilly Companions, Inc. of Chicago to recognize certified candidates to serve as the chief government officer of a stand-on your own Specialty Professional company.
No remaining choice has yet been produced with respect to the construction of the proposed institution of a stand-on your own Specialty Commercial organization. No assurance can be supplied irrespective of whether a separation transaction will get spot, the type of any these types of transaction or the timing of any transaction. Any separation of the Specialty Industrial company remains subject matter to several situations and approvals including, but not constrained to, the acceptance of the Board of Directors and needed regulatory approvals.
About Hallmark Financial
Hallmark Financial is a residence and casualty insurance policies corporation with a diversified portfolio of insurance policy merchandise prepared on a countrywide system. As a result of its 6 insurance policy subsidiaries, Hallmark Economical markets, underwrites and providers the two commercial and personalized lines insurance policy in decide on markets. Hallmark Economical is headquartered in Dallas, Texas and its frequent stock is outlined on NASDAQ underneath the symbol “HALL”.
Senior Vice President, Corporate Development & Technique
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