Hallmark Financial

Aug 15, 2022

•

Jun 30, 2022

Hallmark Financial Q2 2022 Earnings Report

Hallmark Financial underperformed with a net loss driven by unfavorable loss reserve development and lower net premiums earned.

Key Takeaways

Hallmark Financial Services, Inc. reported a net loss of $69.4 million for the second quarter of 2022, compared to a net loss of $0.8 million for the same period in 2021. The net loss was impacted by a full valuation allowance of $23.9 million against net deferred tax assets and a $42.7 million after-tax impact from the exited contract binding business.

Net loss of $69.4 million, or $3.82 per share, in the second quarter of 2022, compared to a net loss of $0.8 million, or $0.05 per share, for the same period of 2021.

The net loss for the second quarter included a full valuation allowance of $23.9 million against net deferred tax assets primarily due to recent net losses.

The net loss for the second quarter included a $42.7 million after-tax impact from the previously announced exited contract binding business, driven by unfavorable prior year loss reserve development of $35.6 million.

Net combined ratio of 169.2% for the three months ended June 30, 2022, compared to 106.4% for the same period the prior year.

Gross Premiums Written

$182M

Net Combined Ratio