Hallmark Financial Services Inc. reported a net loss of $10.6 million, or a loss of 59 cents per share, in the fourth quarter of 2017, compared to a loss of $3.7 million, or a loss of 20 cents per share, in the year-ago period.
The company recorded higher unfavorable prior-year net loss reserve development of $19.9 million in the fourth quarter of 2017, compared to $8.4 million in the year-ago period. It also incurred catastrophe losses, net of reinsurance, of $1.4 million during the quarter, up from $600,000 in the prior-year quarter.
For full year 2017, the insurer posted a net loss of $11.6 million, or a loss of 63 cents per share, down from net income of $6.5 million, or 34 cents per share, in 2016.
Hallmark Financial was hit by unfavorable prior-year net loss reserve development of $40.1 million in 2017, compared to $7.6 million in the prior year. Catastrophe losses, net of reinsurance, came in at $7.8 million for the year, compared to $11.0 million in 2016.
Reserve development from prior years on commercial and personal auto lines affected the company's results, President and CEO Naveen Anand said.
