FORT WORTH, Texas, March 28, 2011 (GLOBE NEWSWIRE) -- Hallmark Financial Services, Inc. (Nasdaq:HALL) announced today that its subsidiary, American Hallmark Insurance Company of Texas, has executed a purchase agreement to acquire all of the outstanding capital stock of TBIC Holding Corporation, including its wholly owned subsidiaries Texas Builders Insurance Company and TBIC Risk Management, Inc. (collectively referred to as "TBIC") for an estimated initial base purchase price of $1.7 million, net of approximately $0.4 million holdback payable four calendar quarters following closing, and up to $3.0 million contingent consideration payable four years after closing. The transaction will be funded from existing working capital.
TBIC is an Austin, Texas based insurance company writing small and middle market workers compensation business within the State of Texas. Formed in 1987, TBIC organized as a stock property casualty insurance company providing workers' compensation insurance to segments of the highway construction industry that could not obtain coverage in the standard market. In 1996, TBIC expanded its business plan and began to provide workers' compensation insurance to a broad range of risks competing with standard companies. Today TBIC writes annual premiums of approximately $5.0 million of low hazard business produced through independent agents throughout the state.
Mark J. Morrison, Chief Executive Officer and President of Hallmark, said, "We are pleased to add TBIC as an extension of our standard commercial segment product line offering. Hallmark has spent the past several years actively looking for the right vehicle to enter the workers' compensation market. TBIC brings a veteran management team that has a proven underwriting track record. We are confident the addition of this product line to our standard commercial business segment will produce synergies enhancing the competitiveness of both businesses. Over time, we expect to expand this product line into our other existing standard commercial lines markets outside of Texas."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV