AM Best Withdraws Credit Ratings of Hallmark Financial Services, Inc. and Its Subsidiaries

AM Best has withdrawn the Long-Term Issuer Credit Rating (Long-Term ICR) of “ccc-” (Weak) and associated Long-Term Issue Ratings (Long-Term IR) of Hallmark Financial Services, Inc. (Hallmark Financial) [NASDAQ: HALL]. Concurrently, AM Best has withdrawn the Financial Strength Rating (FSR) of C++ (Marginal) and the Long-Term ICRs of “b+” (Marginal) of the members of Hallmark Insurance Group. At the time of the withdrawal, all Credit Ratings (ratings) were under review with negative implications. These companies are headquartered in Dallas, TX, and collectively referred to as Hallmark. (See below for a detailed listing of the companies and ratings.)

AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process. These ratings were downgraded on May 9, 2023, which serves as AM Best’s final ratings update, and the company has now requested to withdraw its ratings.

The FSR of C++ (Marginal) and the Long-Term ICRs of “b+” (Marginal) have been withdrawn for the following members of Hallmark Insurance Group:

• American Hallmark Insurance Company of Texas
• Hallmark Insurance Company
• Hallmark Specialty Insurance Company
• Hallmark County Mutual Insurance Company
• Hallmark National Insurance Company

The following Long-Term IR has been withdrawn:

Hallmark Financial Services, Inc.—

-- “ccc-” (Weak) on $50 million 6.25% senior unsecured notes, due 2029

The following indicative Long-Term IRs for securities available under the shelf registration have been withdrawn:

Hallmark Financial Services, Inc.—

-- “ccc-” (Weak) on senior unsecured debt

-- “cc” (Very Weak) on subordinated debt

-- “c” (Poor) on preferred stock

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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