Hallmark Financial Mulls Separation Of Specialty Commercial Business
Hallmark Financial Services has announced that it is exploring a separation of its specialty commercial business – a business responsible for most of its gross written premium.
The P&C insurance company is comprised of three business segments – specialty commercial, standard commercial, and personal. According to initial evaluations by the company’s board of directors, a separation of the specialty commercial business “may unlock significant value,” by segregating the operational structures of its segments.
Currently, the segments of Hallmark’s specialty commercial unit each operate under a unique business model, utilize their own distribution channels, and have a different return profile.
Hallmark’s board is of the belief that establishing two separate companies might “achieve a more appropriate aggregate valuation and improve access to capital,” a company release said.
The specialty commercial segment of Hallmark represents 75% of the company’s gross premium written, and 68% of its net premium written through the first three quarters of 2020. The business has also experienced considerable rate increases over the past 12 quarters, from about 7% to over 20% in Q3 2020.
No final decision has been made regarding the structure of the standalone specialty commercial company, Hallmark said. The transaction will also be subject to conditions and approvals of the board of directors, as well as regulatory approvals.
Insurance, Investments, And A Baccarat Hotel: Inside Sunshine's Diversified Empire
Founded in 2005 and headquartered in Beijing, Sunshine Insurance Group Co Ltd has grown into one of China’s most promi... Read more
Helping Hands: Missouri Insurance Experts Bridge The Gap For Tornado-Impacted Residents
On March 14, an EF-2 tornado swept through Phelps County, Missouri, causing significant damage to homes and businesses, ... Read more
Insuring The Uninsurable: Cyber Attacks Expose Fault Lines In UK's Risk Architecture
LONDON — The UK's traditional approach to insuring against large-scale threats is under increasing strain, as cyber at... Read more
Insurance In A Fragmenting World: How Protectionist Policies Are Reshaping The Market
Protectionism is on the rise across global markets, and its impact is being felt beyond trade and manufacturing. Accordi... Read more
Prudentials Profit Stumble: Can The Insurer Overcome China's Market Challenges?
Prudential, one of the largest life insurers in Asia, faced muted profit growth in 2024 as challenges in its core China ... Read more
Lower Insurance Premiums, Higher Approvals: The Power Of Accurate Property Valuations
For many borrowers, securing a mortgage is not just about income and credit scores—it’s also about managing costs li... Read more