Hallmark Financial Services, an insurance holding company, has reported a net loss of $11.2m, or $0.56 diluted earnings per share in the first quarter of 2011, compared to net income of $6.3m, or $0.31 diluted earnings per share in the same quarter last year.
Total revenues were $77.4m for the first quarter 2011, compared to $75.8m for the same period of 2010.
Net premiums written for the first quarter of 2011 was $76.2m, compared to $72.7m for the same quarter of last year.
Hallmark Financial Services president and CEO Mark Morrison said the disappointing results for the quarter are due primarily to the results of its personal lines business in Florida. Florida alone had adverse prior year reserve development of $9.7m and produced a loss ratio of 420.7% for the quarter.
"Our specialty commercial segment premium production increased $3.3m, or 9%, over the prior year first quarter with a combined ratio of 93.5%. Our standard commercial segment reported a combined ratio of 110.8% which included $3.0m in losses from the previously announced winter storms which impacted the combined ratio by 18.9%.
"Company-wide, the adverse prior year reserve development and losses from the winter storms contributed 25.8% to our 121.6% consolidated combined ratio for the quarter,"Morrison said.