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Hallmark Financial Services said it has completed a $14 million deal to buy State Auto Financial Corp.’s nonstandard automobile insurance business.
Hallmark, of Fort Worth, Texas, said it funded the purchase of State Auto National Insurance Company with available working capital.
Mark J. Morrison, Hallmark’s president and chief executive officer, said the company looks forward to renewing and expanding the book of business bought from State Auto. In a statement he said the acquisition “provides a clean statutory entity for the continued expansion of our personal lines products into new states through an existing independent agency network.”
When the deal was announced in August, State Auto CEO Bob Restrepo said its nonstandard auto subsidiary was “no longer a good strategic fit” for the Ohio-domiciled insurer.
State Auto National writes about $37 million in nonstandard auto policies each year through agents in 21 states.
Based on direct written premiums, State Auto National writes most of its business in Tennessee, Kentucky, West Virginia, Ohio and Maryland, according to Highline Data, a part of Summit Business Media, which also owns National Underwriter.