Hallmark Announces Final Arbitration Award

DALLAS, June 05, 2023 (GLOBE NEWSWIRE) — Hallmark Financial Services, Inc. (“Hallmark”) (NASDAQ:HALL) received the final determination in an arbitration proceeding relating to a Loss Portfolio Transfer Reinsurance Contract with DARAG Bermuda Ltd. and DARAG Insurance Limited and certain of Hallmark’s subsidiaries. On June 2, 2023, a final definitive binding award was declared by the arbitration panel which will result in a write-off to Hallmark of $4.0 million during the second quarter of 2023 in addition to a write-off of $32.9 million recognized during the first quarter of 2023 as a result of the interim binding arbitration award, yielding a total aggregate write-off of $36.9 million. Hallmark had previously included this $4.0 million amount as an account receivable in its consolidated balance sheet as of March 31, 2023 and had estimated a write-off in the range of $25 to $35 million.

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