Core Specialty Insurance Holdings has completed its acquisition of the excess & surplus lines operations of Hallmark Financial Services.
The E&S operations acquisition has been valued at around $40 million in cash; the deal is effective as of September 30, 2022.
A release noted that the business acquired from Hallmark represents that portion of Hallmark’s Specialty Commercial Segment which is distributed through the wholesale insurance brokerage channel, Hallmark E&S. Hallmark E&S produced $436 million of wholesale distributed excess & surplus lines business in the 12-month period ended June 30, 2022.
Hallmark previously revealed that it is exploring a sale of its specialty commercial business as early as January 2021.
Core Specialty clarified that it would not acquire any insurance company entities as part of the transaction, and that the transaction excludes loss reserves associated with the Hallmark E&S business, which Hallmark will retain. The management and 176 employees of the Hallmark E&S business in Dallas, Atlanta, and Jersey City will transition to Core Specialty.
In addition to the Hallmark E&S team’s acquisition, Hallmark Specialty Commercial Segment president and chief underwriting officer Gerald A. Dupre, Jr. will join Core Specialty in a leadership role within the combined excess & surplus lines business, a release said.
“Core Specialty’s vision is to become the leading specialty insurer and the Hallmark E&S acquisition continues our very strong progress in our mission,” said Core Specialty founder, president, and CEO Jeff Consolino. “Core Specialty has the capital to take on risk, the underwriting talent in place, a proven and decisive leadership team and a track record of making things happen fast.”
