A.M. Best said it has assigned a financial strength rating of "A-minus" and issuer credit rating of "A-minus" to the newly formed pool, Hallmark Insurance Group, Fort Worth, Texas.
The newly formed group consists of the following entities: American Hallmark Insurance Company of Texas, Phoenix Indemnity Insurance Company and Gulf States Insurance Company. Additionally, A.M. Best has affirmed the issuer credit rating of "triple-b-minus" for the group's holding company parent, Hallmark Financial Services Inc.
Hallmark Financial recently completed the acquisition of Texas General Agency Inc. (TGA) and certain affiliates, including Gulf States.
TGA is a property-casualty insurance managing general agency with an emphasis on commercial automobile and general liability risks.
Hallmark Financial has also acquired Aerospace Holdings, LLC, which markets and services general aviation p-c insurance products with an emphasis on private and small-commercial aircraft.
Best said these acquisitions by Hallmark Financial will provide a source of business for Hallmark Insurance Group, as the pool will begin to write a substantial portion of the business currently produced by the two agencies.
The ratings of Hallmark Group reflect its favorable risk-adjusted capital position enhanced by the continued financial support of Hallmark Financial, generally favorable operating performance and recent acquisitions, which should provide the pooled entities with improved geographical diversification, the rating agency said.
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