Hallmark scraps plans to spin-off specialty commercial unit on back of harder rates

P&C insurance group  Hallmark Financial Services has scrapped previously announced plans to spin-off and float its specialty commercial business. It will now instead develop and grow the revitalized unit on the back of improving rates.

Management hailed "significant progress" in the division over the past 18 months, which has turned its performance around. Key developments included a loss portfolio transfer reinsurance deal, improved underlying operating results and the confirmation of its financial strength rating of A- by AM Best.

“ Hallmark and its subsidiaries are well positioned to benefit from current conditions in the insurance market, including a continuing favorable pricing environment," Mark Schwarz, executive chairman and CEO, said.

"Exacting focus on underwriting discipline and the long-term growth and profitability of each of our business segments represents the greatest opportunity to enhance and realize the significant inherent value in each of them,” Schwarz added.

Hallmark Financial said in April 2021 that it had completed a strategic asset review and would push a roughly 50% non-controlling stake in its specialty commercial business to an IPO.

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