A statement said the business acquired from Hallmark represents the portion of Hallmark’s specialty business segment that is distributed through the wholesale insurance brokerage channel, Hallmark E&S. Hallmark E&S generated $436 million of surplus and excess wholesale distributed line business in the 12 months ended June 30, 2022.
Hallmark previously revealed that it plans to sell its specialty retail business as early as January 2021.
Read more: Hallmark Financial considers separation of specialty business operations
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. Management and 176 employees of the Hallmark E&S business in Dallas, Atlanta and Jersey City will transition to Core Specialty.
In addition to acquiring the Hallmark E&S team, Hallmark Specialty Commercial Segment President and Chief Underwriting Officer Gerald A. Dupre, Jr. will join Core Specialty in a leadership role within the combined lines business. overstock and surplus, according to a statement.
“Core Specialty’s vision is to become the leading specialty insurer and the acquisition of Hallmark E&S 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 management team and a track record to get things done quickly.”