American Hallmark Insurance Company of Texas has acquired all of the outstanding capital stock of TBIC Holding, including its wholly owned subsidiaries Texas Builders Insurance and TBIC Risk Management.
Hallmark acquired TBIC, for an estimated initial base purchase price of $1.7m, net of approximately $0.4m holdback payable four calendar quarters following closing, and up to $3m contingent consideration payable four years after closing.
Hallmark said that the transaction will be funded from existing working capital.
Texas-based TBIC insurance company writes small and middle market workers compensation business.
Currenty, TBIC writes annual premiums of approximately $5m of low hazard business produced through independent agents throughout the state.
Hallmark CEO and president Mark Morrison said that the the company is pleased to add TBIC as an extension of its standard commercial segment product line offering.
"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," Morrison said.
TBIC president Robert Siddons said the financial strength Hallmark brings to this relationship greatly enhances TBIC’s ability to effectively compete in the market.
American Hallmark Insurance Company of Texas is a subsidiary of Hallmark Financial Services.
Hallmark is an insurance holding company which, through its subsidiaries, engages in the sale of property/casualty insurance products to businesses and individuals.