CONTACT:
Timothy A. Bienek
President and COO
Hallmark Financial Services, Inc.
(972) 866-5708
DALLAS, Texas -- January 29,2003 - Hallmark Financial Services, Inc.
("Hallmark") today announced the completion of its previously announced
acquisition of Phoenix Indemnity Insurance Company ("Phoenix Indemnity"),
an Arizona based non-standard automobile insurance company, from Millers American
Group, Inc. ("Millers").
Hallmark will accept the stock of Phoenix Indemnity in exchange for a $7.0
million reduction in the balance of a promissory note owed to it by Millers.
The stock of Millers Insurance Company will continue to be held by Hallmark
as collateral for the remaining balance of the note while the parties evaluate
the recapitalization or reorganization of Millers Insurance Company.
Joseph G. Smith will continue as the President of Phoenix Indemnity and the
Company will continue to focus its operations on non-standard automobile insurance
in the states of Arizona and New Mexico. For the first nine months of 2002,
Phoenix Indemnity had direct written premium of $19.2 million. Policyholders'
surplus at September 30, 2002 was $10.9 million.
Hallmark Financial Services, Inc. is engaged primarily in underwriting, marketing
and financing non-standard automobile insurance in the Texas, Arizona and New
Mexico and in marketing commercial lines insurance in Texas, New Mexico, Idaho,
Oregon and Washington. The Company is headquartered in Dallas, Texas and its
common stock is listed on the American Stock Exchange under the symbol "HAF.EC".
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, consummation of contemplated transactions, 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.
For further information, please contact:
Timothy A. Bienek, President and COO at 972.866.5708
www.hallmarkgrp.com
###
Suite #1000