Hallmark Financial Services (HALL) Stock: Why The Price Increased Today

By Amit Chowdhry ● Nov 16, 2021
  • The stock price of Hallmark Financial Services, Inc. (NASDAQ: HALL) increased by over 14% during intraday trading today. This is why it happened.

The stock price of Hallmark Financial Services, Inc. (NASDAQ: HALL) increased by over 14% during intraday trading today. Investors are responding positively to the company’s third quarter results.

These are the highlights:

— Pre-tax income was $4.4 million for the three months ended September 30, 2021, as compared to pre-tax loss of $37.8 million reported during the same period in 2020. Pre-tax income was $14.6 million for the nine months ended September 30, 2021, as compared to a pre-tax loss of $102.5 million for the same period the prior year.

— Net income was $3.4 million, or $0.19 per diluted share, in the third quarter of 2021 as compared to net loss of $28.4 million, or $1.56 per diluted share, for the same period of 2020. Year-to-date net income was $11.6 million, or $0.64 per diluted share, as compared to a net loss of $86.5 million, or $4.77 per diluted share, for the same period of 2020.

— Net combined ratio was 95.9% and 99.6% for the three and nine months ended September 30, 2021, compared to 132.7% and 109.4% for the same periods the prior year.

— Gross premiums written for the nine months ended September 30, 2021, decreased 14% compared to the same period of the prior year. Excluding premiums from the exited binding primary commercial auto business, gross premiums written for the nine months ended September 30, 2021, would have decreased 10% compared to the same period of the prior year.

— Net premiums written for the nine months ended September 30, 2021, decreased 21% compared to the same period of the prior year. Excluding premiums from the exited binding primary commercial auto business, gross premiums written for the nine months ended September 30, 2021, would have decreased 15% compared to the same period of the prior year.

— Net catastrophe losses were $2.8 million in the third quarter of 2021 or 3.0 points of the net combined ratio as compared to $9.6 million, or 8.2 points of the net combined ratio for the same period the prior year. Net catastrophe losses were $12.4 million for the first nine months of 2021 or 4.2 points of the net combined ratio as compared to $22.2 million, or 6.1 points of the net combined ratio for the same period the prior year.

— Net investment gain was $9.1 million for the year to date 2021, which included $3.8 million of unrealized gains on equity securities, as compared to net investment loss of $27.9 million, which included $31.8 million of unrealized losses on equity and other investment securities, during the same period the prior year.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.