Hallmark Financial Services, Inc. announced that it is exploring the separation of its Specialty Commercial business. Initial evaluations by Hallmark Financial’s Board of Directors indicate that separating the Specialty Commercial business may unlock significant value by segregating the operational structures of its segments. Each segment currently operates under a unique business model, utilizes its own distribution channels and has a different return profile. The Board believes that establishing two separate companies may achieve a more appropriate aggregate valuation and improve access to capital. Hallmark Financial’s Specialty Commercial segment represented 75% of the Company’s gross premium written, and 68% of its net premium written, through the first three quarters of 2020. This business has experienced substantial rate increases over the past 12 quarters, rising from approximately 7% to over 20% in Third Quarter 2020. The Specialty Commercial business is a diversified portfolio of products placed almost exclusively through wholesale brokers, with the vast majority written on an Excess & Surplus lines basis.