Hallmark Monetary Announces Intent to Pursue IPO of its Specialty Business Business

Hallmark Financial Companies, Inc.

Hallmark Financial Services, Inc.

Hallmark Financial Providers, Inc.

Hallmark Economical Expert services, Inc.

DALLAS, April 13, 2021 (World NEWSWIRE) — Hallmark Fiscal Expert services, Inc. (the “Company” or “Hallmark Financial”), a assets and casualty insurance policy enterprise comprised of three business segments (Specialty Professional, Conventional Professional, and Individual), right now introduced that, based on its previously introduced evaluation of the separation of the Specialty Professional organization segment, it designs to pursue an original general public offering (“IPO”) of a non-managing possession stake in the main enterprises inside of the Company’s Specialty Commercial company section, as a individual firm named Hallmark Specialty Group, Inc. (“Hallmark Specialty Group”).

When the range of shares of Hallmark Specialty Group to be supplied and the price variety for the featuring have not nevertheless been determined, the presented shares are expected to characterize an financial possession stake of somewhere around 50%. Hallmark Money intends to retain at minimum a bulk of the merged voting electric power of Hallmark Specialty Group’s shares by means of its possession of high-vote typical shares. Hallmark Fiscal expects to complete the IPO process all through the third quarter of 2021 however, execution of the IPO is dependent on, and topic to, a selection of components and uncertainties, which includes business and industry problems.

“Our Specialty Industrial business enterprise has developed considerably around the previous 15 several years. We have concluded that this transaction will permit Hallmark Money and Hallmark Specialty Group to concentrate on their respective companies and special alternatives for extended-expression progress and profitability and to allocate money and corporate methods in a fashion that focuses on accomplishing each individual company’s individual strategic priorities,” stated Mark Schwarz, Hallmark Financial’s Government Chairman, President and Chief Govt Officer.

Hallmark Money now has no intention of spinning off or otherwise divesting its ownership curiosity in Hallmark Specialty Team next the completion of the IPO. Hallmark Specialty Team will not include things like enterprise produced by the Aerospace & Plans enterprise device, the exited Binding Primary Automobile small business, or any company created by third-social gathering method supervisors (which contains a senior care and a business automobile plan), just about every of which will be retained by Hallmark Monetary.

This push release does not constitute an offer you to provide or the solicitation of an give to buy securities, and shall not represent an give, solicitation or sale in any jurisdiction in which such offer you, solicitation or sale would be illegal prior to registration or qualification underneath the securities legal guidelines of that jurisdiction.

About Hallmark Money
Hallmark Fiscal is a assets and casualty insurance enterprise with a diversified portfolio of insurance policies solutions created on a national platform. By its 6 insurance plan subsidiaries, Hallmark Financial marketplaces, underwrites and expert services industrial and personal coverage in decide on markets. Hallmark Monetary is headquartered in Dallas, Texas and its typical inventory is stated on NASDAQ below the image “HALL”.

This push release is made up of “forward-looking” statements within just the this means of the Non-public Securities Litigation Reform Act of 1995. The use of text this kind of as “anticipates,” “expects,” “intends,” “plans” and “believes,” amongst other people, typically identify forward-hunting statements. These forward-searching statements include statements relating to the potential IPO of Hallmark Specialty Team, including the timing and ownership construction of the probable IPO, as very well as Hallmark Financial’s intentions with respect to its ownership fascination. These ahead-searching statements are based on management’s present-day anticipations and assumptions about potential activities, which are inherently issue to quite a few hazards, uncertainties and changes in conditions that are complicated to predict and could lead to actual success to differ materially from anticipations, numerous of which are outside of the regulate of the Enterprise. Specific of these pitfalls and uncertainties are talked over in the Company’s filings with the Securities and Exchange Commission. Although the Business believes the assumptions fundamental these forward-wanting statements are fair as of the day of this push release, any of the assumptions could be inaccurate and, consequently, there can be no assurance that any ahead-wanting statements will verify to be right. In gentle of the important uncertainties inherent in these ahead-hunting statements, the inclusion of these information and facts ought to not be regarded as a representation that the objectives and ideas of the Corporation will be reached. You must not position undue reliance on these forward‑looking statements, which only replicate the views of the Company’s administration as of the date of this push release. The Business does not undertake to update these ahead-seeking statements, apart from as may well be essential by legislation.

Investor Speak to
David Webb
Senior Vice President, Corporate Progress & Approach
817.348.1600

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