CONTACT:
Mark J. Morrison
Chief Operating Officer
Hallmark Financial Services, Inc.
(817) 348-1600
http://www.hallmarkgrp.com
FORT WORTH, Texas -- November 14, 2005 -- Hallmark Financial Services, Inc. (Amex: HAF) today announced that it has executed a definitive agreement to acquire Texas General Agency, Inc. and certain affiliates. TGA is a managing general agency involved in the marketing and servicing of property and casualty insurance products, with a particular emphasis on commercial automobile and general liability risks. The acquisition will also include TGA's wholly-owned insurance subsidiary, Gulf States Insurance Company, which reinsures a portion of the business written by TGA, as well as TGA Special Risk, Inc., which brokers mobile home insurance. Closing conditions include, among other things, execution of employment agreements between TGA and the three individual sellers, obtaining consent to the transaction from the Oklahoma Commissioner of Insurance, and Hallmark's prior or contemporaneous acquisition of an affiliated entity, Pan American Acceptance Corporation. The transaction is expected to be effective as of January 1, 2006. Philo Smith & Co. served as advisor to TGA on the transaction.
"We believe that TGA's experienced management team and established network of general and retail agents will be complementary to Hallmark's existing Commercial Lines Group," stated Mark E. Schwarz, Hallmark's President and Chief Executive Officer. "This acquisition will significantly expand the scope of Hallmark's insurance marketing operations and provide opportunities for increased underwriting by our commercial lines insurance carrier," Mr. Schwarz continued.
Hallmark has filed with the Securities and Exchange Commission a Current Report on Form 8-K containing additional information concerning the TGA purchase agreement.
Hallmark Financial Services, Inc. engages primarily in the sale of property and casualty insurance products. The Company's business involves marketing and underwriting of non-standard personal automobile insurance primarily in Texas, Arizona and New Mexico; marketing and underwriting commercial insurance primarily in Texas, New Mexico, Idaho, Oregon, Montana and Washington; third party claims administration; and other insurance related services. The Company is headquartered in Fort Worth, Texas and its common stock is listed on the American Stock Exchange under the symbol "HAF".
Forward-looking statements in this Release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, interest rate trends, the availability of financing, underwriting loss experience and other risks detailed from time to time in the Company's periodic report filings with the Securities and Exchange Commission.
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