%20SVG.svg)
October 7, 2022 - Core Specialty Insurance Holdings has acquired Heath XS, LLC - the excess and surplus lines operations of Hallmark Financial Services. The acquisition, with an estimated cost of about $40 million cash and a $19.9 million consideration for net unearned premium reserves, has drawn interest from the industry, as the move has made Core Specialty one of the top 20 E&S carriers with nearly $1 billion in annual premium. Core Specialty has drawn $130.0 million under its Unsecured Revolving Credit Facility to support future business to be underwritten by Hallmark E&S and to pay the $40.0 million cash purchase price.
As part of the acquisition of Hallmark’s E&S operations, Core Specialty is bringing over 176 Hallmark employees located in Dallas, Atlanta, and Jersey City, including chief underwriting officer Gerald A. Dupre. Hallmark E&S produced $436 million of wholesale distributed excess and surplus lines business in the 12-month period which ended June 30, 2022. The acquisition is limited in part in scope, as Core Specialty will not acquire any insurance company entities, and the transaction excludes loss reserves associated with the Hallmark E&S (which will be retained by Hallmark).
Like Hallmark E&S before, Core Specialty intends to continue serving customers through a wholesale-only distribution model.
Get the right coverage for your healthcare professional liability clients.
Book a 15-minute call with and Ethos healthcare professional liability expert to see how you can better serve your clients as soon as today.
Staying up to date on important industry matters will help you make the best possible decisions for your clients. Register for our mailing list to make sure you never miss essential industry news again.
TJ’s work spans marketing, operations, technology, and process development, all centered on improving the experience of retail insurance agents. Before joining Ethos in 2022, he held marketing roles at Western Washington University and Amazon, following nearly a decade in the service and hospitality industry. That background continues to shape his approach to communications, emphasizing clarity, responsiveness, and long-term relationship building over persuasion. TJ is especially drawn to solving complex brand and operational challenges, with a focus on strengthening Ethos’ position as a premier wholesale partner specializing in Healthcare Professional Liability (HPL) insurance. Outside of work, he trains in boxing and enjoys reading and writing, bringing the same patience, discipline, and attention to craft to every aspect of his work and life.
