Hallmark Financial Announces Intent to Pursue IPO of its Specialty Commercial Business
DALLAS, April 13, 2021 (GLOBE NEWSWIRE) -- Hallmark Financial Services, Inc. (the “Company” or “Hallmark Financial”), a property and casualty insurance company comprised of three business segments
(Specialty Commercial, Standard Commercial, and Personal), today announced that, based on its previously announced evaluation of the separation of the Specialty Commercial business segment, it
plans to pursue an initial public offering (“IPO”) of a non-controlling ownership stake in the core businesses within the Company’s Specialty Commercial business segment, as a separate company
named Hallmark Specialty Group, Inc. (“Hallmark Specialty Group”).
While the number of shares of Hallmark Specialty Group to be offered and the price range for the offering have not yet been determined, the offered shares are expected to represent an economic ownership stake of approximately 50%. Hallmark Financial intends to retain at least a majority of the combined voting power of Hallmark Specialty Group’s shares through its ownership of high-vote common shares. Hallmark Financial expects to complete the IPO process during the third quarter of 2021; however, execution of the IPO is dependent upon, and subject to, a number of factors and uncertainties, including business and market conditions.
“Our Specialty Commercial business has grown significantly over the past 15 years. We have concluded that this transaction will allow Hallmark Financial and Hallmark Specialty Group to focus on their respective businesses and unique opportunities for long-term growth and profitability and to allocate capital and corporate resources in a manner that focuses on achieving each company’s own strategic priorities,” said Mark Schwarz, Hallmark Financial’s Executive Chairman, President and Chief Executive Officer.
Hallmark Financial currently has no intention of spinning off or otherwise divesting its ownership interest in Hallmark Specialty Group following the completion of the IPO. Hallmark Specialty Group will not include business produced by the Aerospace & Programs business unit, the exited Binding Primary Auto business, or any business produced by third-party program managers (which includes a senior care and a commercial auto program), each of which will be retained by Hallmark Financial.
Hallmark Financial Services Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de