Hallmark Financial Services (NASDAQ: HALL) announced that Nasdaq has granted an exception for the Company to regain compliance with its Listing Rule 5250(c)(1) by September 14, 2020. The Company plans to file its first and second quarter 2020 Form 10-Qs soon to meet compliance requirements. However, there is uncertainty about whether Hallmark will regain compliance in the specified timeframe, which could lead to potential delisting from the Nasdaq Global Market. Hallmark Financial specializes in property and casualty insurance, managing over $750 million in annual premiums.
Hallmark Financial Services (NASDAQ: HALL) reported significant losses for Q4 and FY 2019. The Q4 net loss reached $34.0 million or $1.87 per diluted share, compared to a loss of $5.1 million in Q4 2018. Fiscal year losses were $0.6 million or $0.03 per diluted share, down from a profit of $10.3 million in 2018. Gross premiums written increased by 28% to $214.1 million in Q4 2019 and 27% to $843.8 million for the year. However, the net combined ratio deteriorated to 141.4% in Q4 due to unfavorable prior loss reserve development of $53.1 million.
On May 13, 2020, Hallmark Financial (NASDAQ: HALL) received notice from Nasdaq for failing to timely file its Form 10-Q for Q1 2020 and being delinquent on its Form 10-K for 2019. This non-compliance with Nasdaq's Listing Rule 5250(c)(1) requires the Company to submit a plan to regain compliance by May 28, 2020. Although the notice does not immediately affect Hallmark's stock listing, failure to comply could lead to delisting. The Company aims to file the necessary reports by June 2020, though COVID-19 may cause delays.