Hallmark Financial Services (HALL) 10-K 12 Mar 14 2013 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
In Millions, except Share data, unless otherwise specified	Dec. 31, 2013	Mar. 12, 2014	Jun. 30, 2013
Document and Entity Information [Abstract]	'	'	'
Entity Registrant Name	'HALLMARK FINANCIAL SERVICES INC	'	'
Entity Central Index Key	'0000819913	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Filer Category	'Accelerated Filer	'	'
Trading Symbol	'hall	'	'
Entity Common Stock, Shares Outstanding	'	19,263,457	'
Document Type	'10-K	'	'
Amendment Flag	'false	'	'
Document Period End Date	31-Dec-13	'	'
Document Fiscal Period Focus	'FY	'	'
Document Fiscal Year Focus	'2013	'	'
Entity Well-Known Seasoned Issuer	'No	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Public Float	'	'	$129.90

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
ASSETS	'	'
Debt securities, available-for-sale, at fair value (cost; $408,627 in 2013 and $397,800 in 2012)	$410,095	$401,435
Equity securities, available-for-sale, at fair value (cost; $24,902 in 2013 and $31,502 in 2012)	51,230	43,925
Total investments	461,325	445,360
Cash and cash equivalents	141,666	85,145
Restricted cash	12,190	8,707
Ceded unearned premiums	44,988	22,411
Premiums receivable	71,157	66,683
Accounts receivable	2,382	3,110
Receivable for securities	1,320	3
Reinsurance recoverable	76,818	51,970
Deferred policy acquisition costs	22,586	24,911
Goodwill	44,695	44,695
Intangible assets, net	19,953	23,068
Deferred federal income taxes, net	'	1,940
Prepaid expenses	1,531	1,480
Other assets	8,412	10,985
Total assets	909,023	790,468
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Revolving credit facility payable	1,473	1,473
Subordinated debt securities	56,702	56,702
Reserves for unpaid losses and loss adjustment expenses	382,640	313,416
Unearned premiums	185,303	162,502
Reinsurance balances payable	20,598	7,330
Pension liability	1,433	3,685
Payable for securities	206	'
Federal income tax payable	719	1,518
Deferred federal income taxes, net	2,825	'
Accounts payable and other accrued expenses	19,006	23,305
Total liabilities	670,905	569,931
Stockholders' equity:	'	'
Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2013 and 2012	3,757	3,757
Additional paid-in capital	122,827	122,475
Retained earnings	106,209	97,964
Accumulated other comprehensive income	16,883	7,899
Treasury stock (1,609,374 shares in 2013 and 2012), at cost	-11,558	-11,558
Total stockholders equity	238,118	220,537
Liabilities and Equity, Total	$909,023	$790,468

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
Consolidated Balance Sheets Parenthetical [Abstract]	'	'
Debt securities, available-for-sale, cost (in dollars)	$408,627	$397,800
Equity securities, available for sale, cost (in dollars)	$24,902	$31,502
Common stock, par value (in dollars per share)	$0.18	$0.18
Common stock, authorized shares	33,333,333	33,333,333
Common stock, issued shares	20,872,831	20,872,831
Treasury stock, shares	1,609,374	1,609,374

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements of Operations [Abstract]	'	'	'
Gross premiums written	$460,027	$389,842	$354,881
Ceded premiums written	-99,262	-57,353	-51,005
Net premiums written	360,765	332,489	303,876
Change in unearned premiums	-224	-13,053	-10,835
Net premiums earned	360,541	319,436	293,041
Investment income, net of expenses	12,884	15,293	15,880
Net realized gains	10,540	1,943	3,633
Finance charges	5,830	5,957	6,826
Commission and fees	-487	-1,145	3,175
Other income	120	316	216
Total revenues	389,428	341,800	322,771
Losses and loss adjustment expenses	261,345	226,414	239,235
Operating expenses	109,289	103,792	95,106
Interest expense	4,599	4,634	4,631
Amortization of intangible assets	3,115	3,586	3,586
Total expenses	378,348	338,426	342,558
Income (loss) before tax	11,080	3,374	-19,787
Income tax expense (benefit)	2,835	-474	-8,954
Net income (loss)	8,245	3,848	-10,833
Less: Net income attributable to non-controlling interest	'	324	58
Net income (loss) attributable to Hallmark Financial Services, Inc.	$8,245	$3,524	($10,891)
Net income (loss) per share attributable to Hallmark Financial Services, Inc. common stockholders:	'	'	'
Basic (in dollars per share)	$0.43	$0.18	($0.55)
Diluted (in dollars per share)	$0.43	$0.18	($0.55)

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Loss) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements of Comprehensive Income (Loss) [Abstract]	'	'	'
Net income (loss)	$8,245	$3,848	($10,833)
Other comprehensive income (loss):	'	'	'
Change in net actuarial gain (loss)	2,268	37	-1,468
Tax effect on change in net actuarial gain (loss)	-794	-13	514
Unrealized holding gains arising during the period	22,094	4,388	191
Tax effect on unrealized holding gains arising during the period	-7,733	-1,536	-67
Reclassification adjustment for gains included in net income (loss)	-10,540	-2,189	-3,633
Tax effect on reclassification adjustment for gains included in net income (loss)	3,689	766	1,272
Other comprehensive income (loss), net of tax	8,984	1,453	-3,191
Comprehensive income (loss)	17,229	5,301	-14,024
Less: comprehensive income attributable to non-controlling interest	'	324	58
Comprehensive income (loss) attributable to Hallmark Financial Services, Inc.	$17,229	$4,977	($14,082)

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders' Equity (USD $)	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total
In Thousands
Beginning balance at Dec. 31, 2010	$20,873	$121,815	$105,331	$9,637	($5,262)	$235,278
Beginning balance (in shares) at Dec. 31, 2010	3,757	'	'	'	749	'
Acquisition of treasury shares	'	'	'	'	-6,401	-6,401
Acquisition of treasury shares (in shares)	'	'	'	'	875	'
Equity incentive plan activity	'	709	'	'	'	709
Stock options exercised	'	-6	'	'	105	99
Stock options, exercised (in shares)	'	'	'	'	-15	'
Accretion of redeemable non-controlling interest	'	-31	'	'	'	-31
Net income (loss)	'	'	-10,891	'	'	-10,891
Other comprehensive income (loss), net of tax	'	'	'	-3,191	'	-3,191
Ending balance at Dec. 31, 2011	3,757	122,487	94,440	6,446	-11,558	215,572
Ending balance (in shares) at Dec. 31, 2011	20,873	'	'	'	1,609	'
Equity incentive plan activity	'	380	'	'	'	380
Accretion of redeemable non-controlling interest	'	-392	'	'	'	-392
Net income (loss)	'	'	3,524	'	'	3,524
Other comprehensive income (loss), net of tax	'	'	'	1,453	'	1,453
Ending balance at Dec. 31, 2012	3,757	122,475	97,964	7,899	-11,558	220,537
Ending balance (in shares) at Dec. 31, 2012	20,873	'	'	'	1,609	'
Equity incentive plan activity	'	352	'	'	'	352
Stock options, exercised (in shares)	'	'	'	'	'	'
Net income (loss)	'	'	8,245	'	'	8,245
Other comprehensive income (loss), net of tax	'	'	'	8,984	'	8,984
Ending balance at Dec. 31, 2013	$3,757	$122,827	$106,209	$16,883	($11,558)	$238,118
Ending balance (in shares) at Dec. 31, 2013	20,873	'	'	'	1,609	'

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:	'	'	'
Net income (loss)	$8,245	$3,848	($10,833)
Adjustments to reconcile net income (loss) to cash provided by operating activities:	'	'	'
Depreciation and amortization expense	4,300	4,421	5,064
Deferred federal income taxes	-257	-2,851	-2,895
Net realized gains	-10,540	-1,943	-3,633
Share-based payments expense	352	380	709
Change in ceded unearned premiums	-22,577	-2,941	6,034
Change in premiums receivable	-4,474	-13,170	-3,842
Change in accounts receivable	728	836	2,347
Change in deferred policy acquisition costs	2,325	-2,357	-1,621
Change in unpaid losses and loss adjustment expenses	69,224	16,471	33,088
Change in unearned premiums	22,801	16,398	4,801
Change in reinsurance recoverable	-24,848	-9,236	227
Change in reinsurance balances payable	13,268	4,191	-246
Change in current federal income tax (recoverable) payable	-799	8,256	-2,470
Change in all other liabilities	-6,551	5,396	-5,707
Change in all other assets	17,141	5,983	3,587
Net cash provided by operating activities	68,338	33,682	24,610
Cash flows from investing activities:	'	'	'
Purchases of property and equipment, net	-673	-107	-1,586
Acquisitions of subsidiaries, net of cash received	'	'	-13,334
Net transfers (into) from restricted cash	-3,483	665	-4,095
Purchases of investment securities	-222,399	-167,626	-265,684
Maturities, sales and redemptions of investment securities	214,738	148,968	280,918
Net cash used in investing activities	-11,817	-18,100	-3,781
Cash flows from financing activities:	'	'	'
Activity under revolving credit facility, net	'	-2,577	1,250
Repayment of notes payable of acquired subsidiary	'	'	-1,660
Redemption of non-controlling interest	'	-1,700	'
Distribution to non-controlling interest	'	-281	-165
Payment of contingent consideration	'	-350	'
Proceeds from exercise of employee stock options	'	'	99
Purchase of treasury shares	'	'	-6,401
Net cash used in financing activities	'	-4,908	-6,877
Increase in cash and cash equivalents	56,521	10,674	13,952
Cash and cash equivalents at beginning of year	85,145	74,471	60,519
Cash and cash equivalents at end of year	141,666	85,145	74,471
Supplemental cash flow information:	'	'	'
Interest paid	-4,599	-4,656	-4,620
Income taxes (paid) recovered	-3,891	5,879	3,589
Supplemental schedule of non-cash activities:	'	'	'
Change in receivable for securities related to investment disposals that settled after the balance sheet date	-1,317	2,614	-402
Change in payable for securities related to investment purchases that settled after the balance sheet date	$206	($203)	($2,290)

Accounting_Policies

Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

'

Accounting Policies

'

1

Accounting Policies:

General

Hallmark Financial Services, Inc. (“Hallmark” and, together with subsidiaries, the “Company”, “we,” “us” or “our”) is an insurance holding company engaged in the sale of property/casualty insurance products to businesses and individuals. Our business involves marketing, distributing, underwriting and servicing our insurance products, as well as providing other insurance related services.

We pursue our business activities primarily through subsidiaries whose operations are organized into five business units that are supported by our insurance company subsidiaries. Our Standard Commercial P&C business unit handles commercial insurance products and services and is comprised of American Hallmark Insurance Services, Inc. (“American Hallmark Insurance Services”) and Effective Claims Management, Inc. (“ECM”). Our Workers Compensation business unit specializes in small and middle market workers compensation business and is comprised of TBIC Holding Corporation, Inc. (“TBIC Holding”), Texas Builders Insurance Company (“TBIC”) and TBIC Risk Management (“TBICRM”). The subsidiaries comprising our Workers Compensation business unit were acquired July 1, 2011. Our E&S Commercial business unit handles primarily commercial insurance products and services and is comprised of Hallmark Specialty Underwriters, Inc. (“HSU”), Pan American Acceptance Corporation (“PAAC”) and TGA Special Risk, Inc. (“TGASRI”). Our Hallmark Select business unit offers (i) general aviation insurance products and services, (ii) low and middle market commercial umbrella and excess liability insurance, (iii) medical professional liability insurance products and services, and (iv) satellite launch insurance products. Our Hallmark Select business unit is the combination of our operations previously known as our General Aviation business unit, our Excess & Umbrella business unit, the medical professional liability business previously handled by our E&S Commercial business unit and the satellite launch insurance products previously managed at the parent level. Our Hallmark Select business unit is comprised of Aerospace Insurance Managers, Inc. (“Aerospace Insurance Managers”), Aerospace Special Risk, Inc. (“ASRI”), Aerospace Claims Management Group, Inc. (“ACMG”), Heath XS, LLC (“HXS”) and Hardscrabble Data Solutions, LLC (“HDS”).  Our Personal Lines business unit handles personal insurance products and services and is comprised of American Hallmark General Agency, Inc. and Hallmark Claims Services, Inc. (both of which do business as Hallmark Insurance Company). Our insurance company subsidiaries supporting these business units are American Hallmark Insurance Company of Texas (“AHIC”), Hallmark Insurance Company (“HIC”), Hallmark Specialty Insurance Company (“HSIC”), Hallmark County Mutual Insurance Company (“HCM”), Hallmark National Insurance Company (“HNIC”) and TBIC.

These five business units are segregated into three reportable industry segments for financial accounting purposes. The Standard Commercial Segment includes our Standard Commercial P&C business unit and our Workers Compensation business unit. The Specialty Commercial Segment includes our E&S Commercial business unit and our Hallmark Select business unit, as well as certain specialty risk programs (“Specialty Programs”) which are managed by Hallmark. The Personal Segment presently consists solely of our Personal Lines business unit.

Basis of Presentation

The accompanying consolidated financial statements include the accounts and operations of Hallmark and its subsidiaries. Intercompany accounts and transactions have been eliminated. The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) which, as to our insurance company subsidiaries, differ from statutory accounting practices prescribed or permitted for insurance companies by insurance regulatory authorities.

Use of Estimates in the Preparation of Financial Statements

Our preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities at the dates of the financial statements and our reported amounts of revenues and expenses during the reporting periods. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. Since future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment may be reflected in the financial statements in future periods.

Fair Value of Financial Instruments

Fair value estimates are made at a point in time, based on relevant market data as well as the best information available about the financial instruments. Fair value estimates for financial instruments for which no or limited observable market data is available are based on judgments regarding current economic conditions, credit and interest rate risk. These estimates involve significant uncertainties and judgments and cannot be determined with precision. As a result, such calculated fair value estimates may not be realizable in a current sale or immediate settlement of the instrument. In addition, changes in the underlying assumptions used in the fair value measurement technique, including discount rate and estimates of future cash flows, could significantly affect these fair value estimates.

Cash and Cash Equivalents: The carrying amounts reported in the balance sheet for these instruments approximate their fair values.

Restricted Cash: The carrying amount for restricted cash reported in the balance sheet approximates the fair value.

Revolving Credit Facility Payable: The carrying value of our bank revolving credit facility approximates the fair value based on the current interest rate.

Subordinated debt securities: Our trust preferred securities are reported at carry value of $56.7 million and $56.7 million, and have a fair value of $53.2 million and $48.2 million, as of December 31, 2013 and 2012, respectively. The fair value of our trust preferred securities is based on discounted cash flows using current yields to maturity of 8.0% and 8.0% as of December 31, 2013 and 2012, respectively, which are based on similar issues to discount future cash flows and would be included in Level 3 of the fair value hierarchy if they were reported at fair value.

For reinsurance balances, premiums receivable, federal income tax payable, other assets and other liabilities, the carrying amounts approximate fair value because of the short maturity of such financial instruments.

Investments

Debt and equity securities available for sale are reported at fair value. Unrealized gains and losses are recorded as a component of stockholders’ equity, net of related tax effects. Equity securities that are determined to have other-than-temporary impairment are recognized as a loss on investments in the consolidated statements of operations. Debt securities that are determined to have other-than-temporary impairment are recognized as a loss on investments in the consolidated statements of operations for the portion that is related to credit deterioration with the remaining portion recognized in other comprehensive income. Debt security premiums and discounts are amortized into earnings using the effective interest method. Maturities of debt securities and sales of equity securities are recorded in receivable for securities until the cash is settled. Purchases of debt and equity securities are recorded in payable for securities until the cash is settled.

Realized investment gains and losses are recognized in operations on the specific identification method.

Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Restricted Cash

We collect premiums from customers and, after deducting authorized commissions, remit these premiums to the Company’s consolidated insurance subsidiaries. Unremitted insurance premiums are held in a fiduciary capacity until disbursed to the Company’s consolidated insurance subsidiaries.

Premiums Receivable

Premiums receivable represent amounts due from policyholders or independent agents for premiums written and uncollected. These balances are carried at net realizable value.

Reinsurance

We are routinely involved in reinsurance transactions with other companies. Reinsurance premiums, losses and loss adjustment expenses (“LAE”) are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. (See Note 7.)

Deferred Policy Acquisition Costs

Policy acquisition costs (mainly commission, underwriting and marketing expenses) that are directly related to the successful acquisition of new and renewal insurance contracts are deferred and charged to operations over periods in which the related premiums are earned. The method followed in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated realizable value. In determining estimated realizable value, the computation gives effect to the premium to be earned, expected investment income, losses and LAE and certain other costs expected to be incurred as the premiums are earned. If the computation results in an estimated net realizable value less than zero, a liability will be accrued for the premium deficiency. During 2013, 2012 and 2011, we deferred $55.0 million, $62.2 million and $49.4 million of policy acquisition costs and amortized $57.3 million, $59.8 million and $47.8 million of deferred policy acquisition costs, respectively. Therefore, the net (amortization) deferrals of policy acquisition costs were ($2.3) million, $2.4 million and $1.6 million for 2013, 2012 and 2011, respectively.

Business Combinations

We account for business combinations using the acquisition method of accounting pursuant to Accounting Standards Codification (“ASC”) 805, “Business Combinations.” The base cash purchase price plus the estimated fair value of any non-cash or contingent consideration given for an acquired business is allocated to the assets acquired (including identified intangible assets) and liabilities assumed based on the estimated fair values of such assets and liabilities. The excess of the fair value of the total consideration given for an acquired business over the aggregate net fair values assigned to the assets acquired and liabilities assumed is recorded as goodwill. Contingent consideration is recognized as a liability at fair value as of the acquisition date with subsequent fair value adjustments recorded in the consolidated statements of operations. The valuation of contingent consideration requires assumptions regarding anticipated cash flows, probabilities of cash flows, discount rates and other factors. Significant judgment is employed in determining the propriety of these assumptions as of the acquisition date and for each subsequent period. Accordingly, future business and economic conditions, as well as changes in any of the assumptions, can materially impact the amount of contingent consideration expense we record in any given period. Indirect and general expenses related to business combinations are expensed as incurred.

Goodwill and Intangible Assets, net

We account for our goodwill and intangible assets according to ASC 350, “Intangibles – Goodwill and Other.” ASC 350 (1) prohibits the amortization of goodwill and indefinite-lived intangible assets, (2) requires testing of goodwill and indefinite-lived intangible assets on an annual basis for impairment (and more frequently if the occurrence of an event or circumstance indicates an impairment), (3) requires testing of definite-lived intangible assets if the occurrence of an event or circumstances indicates an impairment, (4) requires that reporting units be identified for the purpose of assessing potential future impairments of goodwill, and (5) removes the forty-year limitation on the amortization period of intangible assets that have finite lives.  We have elected to perform our goodwill impairment test on the first day of the fourth quarter, October 1, of each year.

Leases

We have several leases, primarily for office facilities and computer equipment, which expire in various years through 2022. Some of these leases include rent escalation provisions throughout the term of the lease. We expense the average annual cost of the lease with the difference to the actual rent invoices recorded as deferred rent which is classified in accounts payable and other accrued expenses on our consolidated balance sheets.

Property and Equipment

Property and equipment (including leasehold improvements), aggregating $14.7 million and $13.6 million, at December 31, 2013 and 2012, respectively, which is included in other assets, is recorded at cost and is depreciated using the straight-line method over the estimated useful lives of the assets (three to ten years). Depreciation expense for 2013, 2012 and 2011 was $1.2 million, $1.2 million and $1.5 million, respectively. Accumulated depreciation was $12.6 million and $11.4 million at December 31, 2013 and 2012, respectively.

Variable Interest Entities

On June 21, 2005, we formed Hallmark Statutory Trust I (“Trust I”), an unconsolidated trust subsidiary, for the sole purpose of issuing $30.0 million in trust preferred securities. Trust I used the proceeds from the sale of these securities and our initial capital contribution to purchase $30.9 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust I, and the payments under the debt securities are the sole revenues of Trust I.

On August 23, 2007, we formed Hallmark Statutory Trust II (“Trust II”), an unconsolidated trust subsidiary, for the sole purpose of issuing $25.0 million in trust preferred securities. Trust II used the proceeds from the sale of these securities and our initial capital contribution to purchase $25.8 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust II, and the payments under the debt securities are the sole revenues of Trust II.

We evaluate on an ongoing basis our investments in Trust I and Trust II (collectively, (the “Trusts”)) and we do not have variable interests in the Trusts. Therefore, the Trusts are not consolidated in our consolidated financial statements.

We are also involved in the normal course of business with variable interest entities primarily as a passive investor in mortgage-backed securities and certain collateralized corporate bank loans issued by third party variable interest entities. The maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the consolidated balance sheets.

Losses and Loss Adjustment Expenses

Losses and LAE represent the estimated ultimate net cost of all reported and unreported losses incurred through December 31, 2013, 2012 and 2011. The reserves for unpaid losses and LAE are estimated using individual case-basis valuations and statistical analyses. These estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in such estimates, we believe that the reserves for unpaid losses and LAE are adequate. The estimates are continually reviewed and adjusted as experience develops or new information becomes known. Such adjustments are included in current operations.

Redeemable Non-Controlling Interest

We accreted the redeemable non-controlling interest to its redemption value from the date of issuance to the redemption date using the interest method. Changes in redemption value were considered a change in accounting estimate. We followed the two class method of computing earnings per share. We treated only the portion of the periodic adjustment to the redeemable non-controlling interest carrying amount that reflects a redemption in excess of fair value as being akin to an actual dividend. Effective September 30, 2012, we exercised our call option and acquired the remaining 20% membership interests in the subsidiaries for $1.7 million.

Activity related to non-controlling interest for the years ended December 31, 2013 and 2012 is as follows (in thousands):

2013

2012

Beginning balance

$

-

$

1,284

Accretion of redeemable non-controlling interest

-

392

Net income attributable to non-controlling interest

-

324

Distribution to non-controlling interest

-

(281

)

Redemption of non-controlling interest

-

(1,700

)

Other

-

(19

)

Ending balance

$

-

$

-

Recognition of Premium Revenues

Insurance premiums are earned pro rata over the terms of the policies. Insurance policy fees are earned as of the effective date of the policy. Upon cancellation, any unearned premium is refunded to the insured. Insurance premiums written include gross policy fees of $13.2 million, $11.8 million and $13.5 million for the years ended December 31, 2013, 2012, and 2011, respectively. Insurance premiums on monthly reporting workers’ compensation policies are earned on the conclusion of the monthly coverage period. Deposit premiums for workers’ compensation policies are earned upon the expiration of the policy.

Finance Charges

We receive premium installment fees for each direct bill payment from policyholders. Installment fee income is classified as finance charges on the consolidated statement of operations and is recognized as the fee is invoiced.

Relationship with Third Party Insurers

Through December 31, 2005, our Standard Commercial P&C business unit marketed policies on behalf of Clarendon National Insurance Company (“Clarendon”), a third-party insurer. Through December 31, 2008, all business of our E&S Commercial business unit was produced under a fronting agreement with member companies of the Republic Group (“Republic”), a third-party insurer. These insurance contracts on third party paper are accounted for under agency accounting. Ceding commissions and other fees received under these arrangements were classified as unearned commission revenue until earned pro rata over the terms of the policies.

Profit sharing commission is calculated and recognized when the loss ratio, as determined by a qualified actuary, deviates from contractual targets. We received a provisional commission as policies were produced as an advance against the later determination of the profit sharing commission actually earned. The profit sharing commission is an estimate that varies with the estimated loss ratio and is sensitive to changes in that estimate.  Profit share commission is classified as commissions and fees on the consolidated statement of operations

The following table details the profit sharing commission provisional loss ratio compared to the estimated ultimate loss ratio for each effective quota share treaty between the Standard Commercial P&C business unit and Clarendon.

Treaty Effective Dates

7/1/01

7/1/02

7/1/03

7/1/04

Provisional loss ratio

60.0

%

59.0

%

59.0

%

64.2

%

Estimated ultimate loss ratio recorded to at December 31, 2013

63.5

%

64.5

%

60.9

%

63.7

%

As of December 31, 2013, we had a net receivable of $0.1 million on these profit share treaties. The payable or receivable is the difference between the cash received to date and the recognized commission revenue based on the estimated ultimate loss ratio.

The following table details the profit sharing commission revenue provisional loss ratio compared to the estimated ultimate loss ratio for the effective quota share treaty between the E&S Commercial business unit and Republic.

Treaty Effective Dates

1/1/06

1/1/07

1/1/08

Provisional loss ratio

65.0

%

65.0

%

65.0

%

Estimated ultimate loss ratio recorded to at December 31, 2013

58.6

%

63.2

%

59.0

%

As of December 31, 2013, we had a net payable of $1.2 million on these profit share treaties.  The payable or receivable is the difference between the cash received to date and the recognized commission revenue based on the estimated ultimate loss ratio.

Agent Commissions

We pay monthly commissions to agents based on written premium produced, but generally recognize the expense pro rata over the term of the policy. If the policy is cancelled prior to its expiration, the unearned portion of the agent commission is refundable to us. The unearned portion of commissions paid to agents is included in deferred policy acquisition costs. Commission expenses related to the insurance policies issued by our Hallmark Select business unit for third party insurance carriers and not assumed by our insurance company subsidiaries are recognized as of the effective date of the policy.

We annually pay a profit sharing commission to our independent agency force based upon the results of the business produced by each agent. We estimate and accrue this liability to commission expense in the year the business is produced.

Commission expense is classified as other operating expenses in the consolidated statement of operations.

Income Taxes

We file a consolidated federal income tax return. Deferred federal income taxes reflect the future tax consequences of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end. Deferred taxes are recognized using the liability method, whereby tax rates are applied to cumulative temporary differences based on when and how they are expected to affect the tax return. Deferred tax assets and liabilities are adjusted for tax rate changes in effect for the year in which these temporary differences are expected to be recovered or settled.

Earnings Per Share

The computation of earnings per share is based upon the weighted average number of common shares outstanding during the period plus the effect of common shares potentially issuable (in periods in which they have a dilutive effect), primarily from stock options. (See Notes 11 and 13.)

Adoption of New Accounting Pronouncements

In January 2013, we adopted new guidance issued by the Financial Accounting Standards Board (“FASB”) related to reporting and disclosure requirements about changes in accumulated other comprehensive income balances and reclassifications out of accumulated other comprehensive income. The new guidance is effective prospectively for fiscal and interim periods beginning after December 15, 2012. The adoption of this guidance did not have a material impact on our financial position or results of operations but did require additional disclosures.

Investments

Investments	12 Months Ended
	Dec. 31, 2013
Investments [Abstract]	'
Investments	'
	2	Investments:
	The amortized cost and estimated fair value of investments in debt and equity securities by category is as follows (in thousands):
						Gross			Gross
			Amortized			Unrealized			Unrealized			Fair
	As of December 31, 2013		Cost			Gains			Losses			Value
	U.S. Treasury securities and obligations of U.S. Government		$	78,894		$	24		$	(165	)	$	78,753
	Corporate bonds			42,946			1,379			(450	)		43,875
	Collateralized corporate bank loans			102,053			614			(489	)		102,178
	Municipal bonds			156,950			2,577			(1,975	)		157,552
	Mortgage-backed			27,784			460			(507	)		27,737
	Total debt securities			408,627			5,054			(3,586	)		410,095
	Total equity securities			24,902			26,642			(314	)		51,230
	Total debt and equity securities		$	433,529		$	31,696		$	(3,900	)	$	461,325
	As of December 31, 2012
	U.S. Treasury securities and obligations of U.S. Government		$	40,050		$	14		$	(3	)	$	40,061
	Corporate bonds			79,516			2,794			(763	)		81,547
	Collateralized corporate bank loans			106,093			1,021			(743	)		106,371
	Municipal bonds			162,479			4,023			(2,770	)		163,732
	Mortgage-backed			9,662			97			(35	)		9,724
	Total debt securities			397,800			7,949			(4,314	)		401,435
	Total equity securities			31,502			12,938			(515	)		43,925
	Total debt and equity securities		$	429,302		$	20,887		$	(4,829	)	$	445,360
	Major categories of net investment income are summarized as follows (in thousands):
			Twelve Months Ended
			31-Dec
			2013			2012			2011
	U.S. Treasury securities and obligations of U.S. Government		$	143		$	53		$	115
	Corporate bonds			2,341			4,218			3,851
	Collateralized corporate bank loans			4,653			5,261			5,284
	Municipal bonds			5,245			5,616			6,632
	Mortgage-backed			737			106			86
	Equity securities			484			534			484
	Cash and cash equivalents			157			246			163
				13,760			16,034			16,615
	Investment expenses			(876	)		(741	)		(735	)
	Investment income, net of expenses		$	12,884		$	15,293		$	15,880
	No investments in any entity or its affiliates exceeded 10% of stockholders’ equity at December 31, 2013 or 2012.
	Major categories of net realized gains on investments are summarized as follows (in thousands):
			Twelve Months Ended
			31-Dec
			2013			2012			2011
	U.S. Treasury securities and obligations of U.S. Government		$	-		$	-		$	35
	Corporate bonds			853			13			300
	Collateralized corporate bank loans			373			391			699
	Municipal bonds			(156	)		(441	)		(500	)
	Equity securities			9,470			2,226			3,099
	Net realized gain			10,540			2,189			3,633
	Other-than-temporary impairments			-			(246	)		-
	Gain on investments		$	10,540		$	1,943		$	3,633
	We realized gross gains on investments of $10.9 million, $2.9 million, and $4.6 million during the years ended December 31, 2013, 2012 and 2011, respectively. We realized gross losses on investments of $0.4 million, $0.7 million and $1.0 million during the years ended December 31, 2013, 2012 and 2011, respectively. We recorded proceeds from the sale of investment securities of $33.4 million, $12.4 million and $62.7 million during the years ended December 31, 2013, 2012 and 2011, respectively. Realized investment gains and losses are recognized in operations on the specific identification method.
	The following schedules summarize the gross unrealized losses showing the length of time that investments have been continuously in an unrealized loss position as of December 31, 2013 and December 31, 2012 (in thousands):
			As of December 31, 2013
			12 months or less						Longer than 12 months						Total
			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value		Unrealized Losses
	U.S. Treasury securities and
	obligations of U.S. Government		$	47,162		$	(165	)	$	-		$	-		$	47,162	$	(165	)
	Corporate bonds			5,649			(56	)		4,421			(394	)		10,070		(450	)
	Collateralized corporate bank loans			23,026			(422	)		6,968			(67	)		29,994		(489	)
	Municipal bonds			35,719			(413	)		34,684			(1,562	)		70,403		(1,975	)
	Mortgage-backed			1,383			(229	)		4,840			(278	)		6,223		(507	)
	Total debt securities			112,939			(1,285	)		50,913			(2,301	)		163,852		(3,586	)
	Total equity securities			316			(2	)		2,721			(312	)		3,037		(314	)
	Total debt and equity securities		$	113,255		$	(1,287	)	$	53,634		$	(2,613	)	$	166,889	$	(3,900	)
		As of December 31, 2012
		12 months or less						Longer than 12 months						Total
		Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities and
obligations of U.S. Government		$	23,998		$	(3	)	$	-		$	-		$	23,998	$	(3	)
Corporate bonds			10,802			(38	)		6,910			(725	)		17,712		(763	)
Collateralized corporate bank loans			6,273			(97	)		14,236			(646	)		20,509		(743	)
Municipal bonds			30,073			(362	)		28,809			(2,408	)		58,882		(2,770	)
Mortgage-backed			7,367			(32	)		84			(3	)		7,451		(35	)
Total debt securities			78,513			(532	)		50,039			(3,782	)		128,552		(4,314	)
Total equity securities			3,363			(515	)		-			-			3,363		(515	)
Total debt and equity securities		$	81,876		$	(1,047	)	$	50,039		$	(3,782	)	$	131,915	$	(4,829	)
At December 31, 2013, the gross unrealized losses more than twelve months old were attributable to 84 debt security positions. At December 31, 2012, the gross unrealized losses more than twelve months old were attributable to 56 debt security positions. We consider these losses as a temporary decline in value as they are predominately on bonds that we do not intend to sell and do not believe we will be required to sell prior to recovery of our amortized cost basis. We see no other indications that the decline in values of these securities is other-than-temporary.
Based on evidence gathered through our normal credit evaluation process, we presently expect that all debt securities held in our investment portfolio will be paid in accordance with their contractual terms. Nonetheless, it is at least reasonably possible that the performance of certain issuers of these debt securities will be worse than currently expected resulting in future write-downs within our portfolio of debt securities.
Also, as a result of the challenging market conditions, we expect the volatility in the valuation of our equity securities to continue in the foreseeable future. This volatility may lead to impairments on our equity securities portfolio or changes regarding retention strategies for certain equity securities.
We complete a detailed analysis each quarter to assess whether any decline in the fair value of any investment below cost is deemed other-than-temporary. All securities with an unrealized loss are reviewed. We recognize an impairment loss when an investment's value declines below cost, adjusted for accretion, amortization and previous other-than-temporary impairments and it is determined that the decline is other-than-temporary. We did not recognized other-than-temporary losses on our debt securities portfolio during 2013.
Debt Investments: We assess whether we intend to sell, or it is more likely than not that we will be required to sell, a fixed maturity investment before recovery of its amortized cost basis less any current period credit losses. For fixed maturity investments that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell, we separate the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the investment’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the investment’s fair value and the present value of future expected cash flows is recognized in other comprehensive income.
Equity Investments: Some of the factors considered in evaluating whether a decline in fair value for an equity investment is other-than-temporary include: (1) our ability and intent to retain the investment for a period of time sufficient to allow for an anticipated recovery in value; (2) the recoverability of cost; (3) the length of time and extent to which the fair value has been less than cost; and (4) the financial condition and near-term and long-term prospects for the issuer, including the relevant industry conditions and trends, and implications of rating agency actions and offering prices. When it is determined that an equity investment is other-than-temporarily impaired, the security is written down to fair value, and the amount of the impairment is included in earnings as a realized investment loss. The fair value then becomes the new cost basis of the investment, and any subsequent recoveries in fair value are recognized at disposition. We recognize a realized loss when impairment is deemed to be other-than-temporary even if a decision to sell an equity investment has not been made. When we decide to sell a temporarily impaired available-for-sale equity investment and we do not expect the fair value of the equity investment to fully recover prior to the expected time of sale, the investment is deemed to be other-than-temporarily impaired in the period in which the decision to sell is made.
The amortized cost and estimated fair value of debt securities at December 31, 2013 by contractual maturity are as follows. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties.
		Amortized			Fair
		Cost			Value
		(in thousands)
Due in one year or less		$	71,490		$	71,969
Due after one year through five years			162,203			163,006
Due after five years through ten years			107,915			108,761
Due after ten years			39,235			38,622
Mortgage-backed			27,784			27,737
		$	408,627		$	410,095
We have certain of our securities pledged for the benefit of various state insurance departments and reinsurers. These securities are included with our available-for-sale debt securities because we have the ability to trade these securities. We retain the interest earned on these securities. These securities had a carrying value of $29.1 million at December 31, 2013 and a carrying value of $24.3 million at December 31, 2012.

Fair_Value

Fair Value	12 Months Ended
	Dec. 31, 2013
Fair Value [Abstract]	'
Fair Value	'
	3. Fair Value:
	ASC 820 defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. ASC 820, among other things, requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In addition, ASC 820 precludes the use of block discounts when measuring the fair value of instruments traded in an active market, which were previously applied to large holdings of publicly traded equity securities.
	We determine the fair value of our financial instruments based on the fair value hierarchy established in ASC 820. In accordance with ASC 820, we utilize the following fair value hierarchy:
			Level 1: quoted prices in active markets for identical assets;
			Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, inputs of identical assets for less active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument; and
			Level 3: inputs to the valuation methodology that are unobservable for the asset or liability.
	This hierarchy requires the use of observable market data when available.
	Under ASC 820, we determine fair value based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy described above. Fair value measurements for assets and liabilities where there exists limited or no observable market data are calculated based upon our pricing policy, the economic and competitive environment, the characteristics of the asset or liability and other factors as appropriate. These estimated fair values may not be realized upon actual sale or immediate settlement of the asset or liability.
	Where quoted prices are available on active exchanges for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include common and preferred stock.
	Level 2 investment securities include corporate bonds, collateralized corporate bank loans, municipal bonds, U.S. Treasury securities, other obligations of the U.S. Government and mortgage-backed securities for which quoted prices are not available on active exchanges for identical instruments. We use third party pricing services to determine fair values for each Level 2 investment security in all asset classes. Since quoted prices in active markets for identical assets are not available, these prices are determined using observable market information such as quotes from less active markets and/or quoted prices of securities with similar characteristics, among other things. We have reviewed the processes used by the pricing services and have determined that they result in fair values consistent with the requirements of ASC 820 for Level 2 investment securities. In addition, using the prices received for the securities from the third party pricing services, we compare a sample of the prices against additional sources. We have not adjusted any prices received from third party pricing services. There were no transfers between Level 1 and Level 2 securities.
	In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy. Level 3 investments are valued based on the best available data in order to approximate fair value. This data may be internally developed and consider risk premiums that a market participant would require. Investment securities classified within Level 3 include other less liquid investment securities.
	The following table presents for each of the fair value hierarchy levels, our assets that are measured at fair value on a recurring basis at December 31, 2013 and December 31, 2012 (in thousands).
			As of December 31, 2013
			Quoted Prices in			Other
			Active Markets for			Observable			Unobservable
			Identical Assets			Inputs			Inputs
			(Level 1)			(Level 2)			(Level 3)		Total
	U.S. Treasury securities and obligations of U.S. Government		$	-		$	78,753		$	-	$	78,753
	Corporate bonds			-			43,875			-		43,875
	Collateralized corporate bank loans			-			101,585			593		102,178
	Municipal bonds			-			140,628			16,924		157,552
	Mortgage-backed			-			27,737			-		27,737
	Total debt securities			-			392,578			17,517		410,095
	Total equity securities			51,230			-			-		51,230
	Total debt and equity securities		$	51,230		$	392,578		$	17,517	$	461,325
			As of December 31, 2012
			Quoted Prices in			Other
			Active Markets for			Observable			Unobservable
			Identical Assets			Inputs			Inputs
			(Level 1)			(Level 2)			(Level 3)		Total
	U.S. Treasury securities and obligations of U.S. Government		$	-		$	40,061		$	-	$	40,061
	Corporate bonds			-			81,547			-		81,547
	Collateralized corporate bank loans			-			105,463			908		106,371
	Municipal bonds			-			144,972			18,760		163,732
	Mortgage-backed			-			9,724			-		9,724
	Total debt securities			-			381,767			19,668		401,435
	Total equity securities			43,925			-			-		43,925
	Total debt and equity securities		$	43,925		$	381,767		$	19,668	$	445,360
	Due to significant unobservable inputs into the valuation model for certain municipal bonds and a collateralized corporate bank loan in illiquid markets, we classified these as level 3 in the fair value hierarchy. We used an income approach in order to derive an estimated fair value of the municipal bonds classified as Level 3, which included inputs such as expected holding period, benchmark swap rate, benchmark discount rate and a discount rate premium for illiquidity. The fair value of the collateralized corporate bank loan classified as level 3 is based on discounted cash flows using current yield to maturity of 9.3%, which is based on the relevant spread over LIBOR for this particular loan to discount future cash flows. Significant changes in the unobservable inputs in the fair value measurement of our municipal bonds and collateralized corporate bank loan could result in a significant change in the fair value measurement.
	The following table summarizes the changes in fair value for all financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the year ended December 31, 2013 and 2012 (in thousands).
			2013			2012
	Beginning balance as of January 1		$	19,668		$	20,608
	Sales			(3,157	)		(429	)
	Settlements			-			-
	Purchases			-			-
	Issuances			-			-
	Total realized/unrealized gains included in net income			-			-
	Net gains (losses) included in other comprehensive income			1,006			(511	)
	Transfers into Level 3			-			-
	Transfers out of Level 3			-			-
	Ending balance as of December 31		$	17,517		$	19,668

Goodwill_and_Intangible_Assets

Goodwill and Intangible Assets	12 Months Ended
	Dec. 31, 2013
Goodwill and Intangible Assets [Abstract]	'
Goodwill and Intangible Assets	'
		4	Goodwill and Intangible Assets:
	Effective August 29, 2008, we acquired 80% of the issued and outstanding membership interests in Heath XS, LLC and Hardscrabble Data Solutions, LLC for consideration of $15.0 million. In connection with the acquisition, we executed an operating agreement for each subsidiary. The operating agreements granted us the right to purchase the remaining 20% membership interests in the subsidiaries and granted an affiliate of the seller the right to require us to purchase such remaining membership interests. Effective September 30, 2012, we exercised our call option and acquired the remaining 20% membership interests in the subsidiaries for $1.7 million.
	Effective July 1, 2011, we acquired all of the issued and outstanding capital stock of TBIC Holding for initial consideration of $1.6 million paid in cash on July 1, 2011. In addition, a holdback purchase price of $350 thousand was paid during the third quarter of 2012. A contingent purchase price of up to $3.0 million may become payable following 16 full calendar quarters after closing based upon a formula contained in the acquisition agreement. We recorded a bargain purchase gain of $165 thousand on the acquisition which is reported in other income. The gain resulted from the difference in the estimated purchase price and the fair value of the net assets acquired and liabilities assumed as of July 1, 2011. TBIC is a Texas domiciled insurance company that writes workers compensation insurance through independent agents in Texas only.
	Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis (October 1) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.  For purposes of evaluating goodwill for impairment, we have determined that our reporting units are the same as our business units except for the Hallmark Select business unit for which reporting units are at the component level (“one level below”). Our consolidated balance sheet as of December 31, 2013 includes goodwill of acquired businesses of $44.7 million that is assigned to our business units as follows: Standard Commercial P&C business unit - $2.1 million; E&S Commercial business unit - $19.9 million; Hallmark Select business unit- $17.4 million (comprised of $7.7 million for the excess & umbrella component and $9.7 million for the general aviation and satellite component); and Personal Lines business unit - $5.3 million. This amount has been recorded as a result of prior business acquisitions accounted for under the acquisition method of accounting. Under ASC 350, “Intangibles- Goodwill and Other,” goodwill is tested for impairment annually. We completed our last annual test for impairment on the first day of the fourth quarter of 2013 and determined that there was no impairment.
	The income approach to determining fair value computed the projections of the cash flows that the reporting unit was expected to generate converted into a present value equivalent through discounting. Significant assumptions in the income approach model included income projections, discount rates and terminal growth values. The income projections reflected an improved premium pricing environment across most of our lines of business that began in 2012 and continued throughout 2013. The income projections also included loss and LAE assumptions which reflected recent historical claim trends and the movement towards a more favorable pricing environment. The income projections also included assumptions for expense growth and investment yields which were based on business plans for each of our business units. The discount rate was based on a risk free rate plus a beta adjusted equity risk premium and specific company risk premium. The assumptions were based on historical experience, expectations of future performance, expected market conditions and other factors requiring judgment and estimates. While we believe the assumptions used in these models were reasonable, the inherent uncertainty in predicting future performance and market conditions may change over time and influence the outcome of future testing.
	During 2013, 2012, and 2011, we completed the first step prescribed by ASC 350 for testing for impairment and determined that there was no impairment.
	We have obtained various intangible assets from several acquisitions since 2002. The table below details the gross and net carrying amounts of these assets by major category (in thousands):
			December 31,
			2013			2012
	Gross Carrying Amount:
	Customer/agent relationships		$	32,177		$	32,177
	Tradename			3,440			3,440
	Management agreement			3,232			3,232
	Non-compete & employment agreements			4,235			4,235
	Insurance licenses			1,300			1,300
	Total gross carrying amount			44,384			44,384
	Accumulated Amortization:
	Customer/agent relationships			(15,322	)		(13,084	)
	Tradename			(1,700	)		(1,471	)
	Management agreement			(3,232	)		(2,895	)
	Non-compete & employment agreements			(4,177	)		(3,866	)
	Total accumulated amortization			(24,431	)		(21,316	)
	Total net carrying amount		$	19,953		$	23,068
	Insurance licenses are not amortized because they have an indefinite life. We amortize definite-lived intangible assets straight line over their respective lives. The estimated aggregate amortization expense for definite-lived intangible assets for the next five years is as follows (in thousands):
	2014		$	2,526
	2015		$	2,468
	2016		$	2,468
	2017		$	2,468
	2018		$	2,468
	The weighted average amortization period for definite-lived intangible assets by major class is as follows:
		Years
	Tradename	15
	Customer relationships	15
	Management agreement	4
	Non-compete agreements	5
	The aggregate weighted average period to amortize these assets is approximately 13 years.

Other_Assets

Other Assets	12 Months Ended
	Dec. 31, 2013
Other Assets [Abstract]	'
Other Assets	'
	5	Other Assets:
	The following table details our other assets as of December 31, 2013 and 2012 (in thousands):
			2013		2012
	Profit sharing commission receivable		$	641	$	2,083
	Accrued investment income			3,030		3,568
	Debt issuance costs			1,156		1,207
	Investment in unconsolidated trust subsidiaries			1,702		1,702
	Fixed assets			1,773		2,284
	Other assets			110		141
			$	8,412	$	10,985

Reserves_for_Unpaid_Losses_and

Reserves for Unpaid Losses and Loss Adjustment Expenses	12 Months Ended
	Dec. 31, 2013
Insurance Loss Reserves [Abstract]	'
Reserves for Unpaid Losses and Loss Adjustment Expenses	'
		6	Reserves for Unpaid Losses and Loss Adjustment Expenses:
	Activity in the reserves for unpaid losses and LAE is summarized as follows (in thousands):
			2013		2012			2011
	Balance at January 1		$	313,416	$	296,945		$	251,677
	Less reinsurance recoverable			49,584		42,044			37,954
	Net Balance at January 1			263,832		254,901			213,723
	Acquisition of subsidiaries effective July 1			-		-			8,816
	Incurred related to:
	Current year			251,391		230,089			222,869
	Prior years			9,954		(3,675	)		16,366
	Total incurred			261,345		226,414			239,235
	Paid related to:
	Current year			101,897		107,945			101,025
	Prior years			110,812		109,538			105,848
	Total paid			212,709		217,483			206,873
	Net Balance at December 31			312,468		263,832			254,901
	Plus reinsurance recoverable			70,172		49,584			42,044
	Balance at December 31		$	382,640	$	313,416		$	296,945
	The $10.0 million unfavorable development, $3.7 million favorable development and $16.4 million unfavorable development in prior accident years recognized in 2013, 2012 and 2011, respectively, represent normal changes in our loss reserve estimates. In 2013 and 2011, the aggregate loss reserve estimates for prior years were increased to reflect unfavorable loss development when the available information indicated a reasonable likelihood that the ultimate losses would be more than the previous estimates. In 2012, the aggregate loss reserve estimates for prior years were decreased to reflect favorable loss development when the available information indicated a reasonable likelihood that the ultimate losses would be less than the previous estimates. Generally, changes in reserves are caused by variations between actual experience and previous expectations and by reduced emphasis on the Bornhuetter-Ferguson method due to the aging of the accident years.
	The $10.0 million increase in reserves for unpaid losses and LAE recognized in 2013 was attributable to $5.0 million unfavorable development on claims incurred in the 2012 accident year, $1.7 million unfavorable development on claims incurred in the 2011 accident year and $3.3 million unfavorable development on claims incurred in the 2010 and prior accident years.  Our E&S Commercial business unit and Personal Lines business unit accounted for $16.0 million and $1.8 million of the increase in reserves recognized during 2013.  The increase in reserves for our E&S Commercial business unit was primarily related to commercial auto liability line of business.  The increase in reserves for our Personal Lines business unit was primarily related to personal auto in the 2012 accident year.  These unfavorable developments were partially offset by favorable prior years’ loss development of $3.7 million in our Standard Commercial P&C business unit, $2.6 million in our Hallmark Select business unit and $1.5 million in our Workers Compensation business unit.  The decrease in reserves for our Standard Commercial P&C business unit was primarily related to commercial auto and general liability line of business.  The decrease in reserves for our Hallmark Select business unit was driven by $2.3 million of favorable claims development in the 2011 and prior accident years related to our aircraft liability lines of business, partially offset by $0.1 million unfavorable claims development in the 2012 accident year related to our aircraft hull coverage.  Further contributing to the decrease in reserves for our Hallmark Select business unit was $0.4 million of favorable claims development in our excess & umbrella lines of business. The decrease in reserves for our Workers Compensation business unit was related to the 2012 and 2011 accident years.
	The $3.7 million decrease in reserves for unpaid losses and LAE recognized in 2012 was attributable to $0.4 million favorable development on claims incurred in the 2011 accident year, $0.8 million favorable development on claims incurred in the 2010 accident year and $2.5 million favorable development on claims incurred in the 2009 and prior accident years. Our Standard Commercial P&C business unit, Hallmark Select business unit and E&S Commercial business unit accounted for $3.7 million, $3.3 million and $0.3 million, respectively, of the decrease in reserves recognized during 2012. The decrease in reserves for our Standard Commercial P&C business unit was primarily related to commercial auto, commercial property and general liability lines of business. The decrease in reserves for our Hallmark Select business unit was primarily related to our aircraft liability lines of business. The decrease in reserves for our E&S Commercial business unit was primarily related to general liability. These favorable developments were partially offset by unfavorable prior years’ loss development of $3.6 million in our Personal Lines business unit related to auto liability claims spread throughout various states and our low value dwelling/homeowners line of business.
	The $16.4 million increase in reserves for unpaid losses and LAE recognized in 2011 was attributable to $15.0 million unfavorable development on claims incurred in the 2010 accident year, $3.6 million unfavorable development on claims incurred in the 2009 accident year and $2.2 million favorable development on claims incurred in the 2008 and prior accident years. Our Personal Lines business unit and E&S Commercial business unit accounted for $19.6 million and $3.7 million, respectively, of the increase in reserves recognized during 2011. The $19.6 million increase in reserves during 2011 for our Personal Lines business unit includes $10.3 million, which was attributable to Florida developing much worse than expected due primarily to rapid growth in the claim volume from Florida, the complexity related to Florida personal injury protection coverage claims and the high incidence of fraudulent claims in that market. The remaining unfavorable prior years’ loss development for our Personal Lines business unit was primarily due to rapid geographic expansion. The increase in reserves for our E&S Commercial business unit was primarily related to commercial auto and physical damage and general liability lines of business. These unfavorable developments were partially offset by favorable prior years’ loss development of $6.1 million in our Hallmark Select business unit related to our aircraft liability lines of business and $0.8 million in our Standard Commercial P&C business unit primarily related to our commercial property lines of business.

Reinsurance

Reinsurance	12 Months Ended
	Dec. 31, 2013
Reinsurance [Abstract]	'
Reinsurance	'
		7	Reinsurance:
	We reinsure a portion of the risk we underwrite in order to control the exposure to losses and to protect capital resources. We cede to reinsurers a portion of these risks and pay premiums based upon the risk and exposure of the policies subject to such reinsurance. Ceded reinsurance involves credit risk and is generally subject to aggregate loss limits. Although the reinsurer is liable to us to the extent of the reinsurance ceded, we are ultimately liable as the direct insurer on all risks reinsured. Reinsurance recoverables are reported after allowances for uncollectible amounts. We monitor the financial condition of
	reinsurers on an ongoing basis and review our reinsurance arrangements periodically. Reinsurers are selected based on their financial condition, business practices and the price of their product offerings. In order to mitigate credit risk to reinsurance companies, most of our reinsurance recoverable balance as of December 31, 2013 was with reinsurers that had an A.M. Best rating of “A-” or better. We also mitigate our credit risk for the remaining reinsurance recoverable by obtaining letters of credit.
	The following table presents our gross and net premiums written and earned and reinsurance recoveries for each of the last three years (in thousands):
			2013			2012			2011
	Premium Written :
	Direct		$	458,020		$	385,624		$	350,089
	Assumed			2,007			4,218			4,792
	Ceded			(99,262	)		(57,353	)		(51,005	)
			$	360,765		$	332,489		$	303,876
	Premium Earned:
	Direct		$	434,022		$	369,735		$	344,642
	Assumed			3,204			4,114			5,438
	Ceded			(76,685	)		(54,413	)		(57,039	)
			$	360,541		$	319,436		$	293,041
	Reinsurance recoveries		$	45,456		$	29,014		$	32,941
	Included in reinsurance recoverable on the consolidated balance sheets are paid loss recoverables of $6.1 million and $1.0 million as of December 31, 2013 and 2012, respectively.
	We currently reinsure the following exposures on business generated by our business units:
			Property catastrophe. Our property catastrophe reinsurance reduces the financial impact a catastrophe could have on our commercial and personal property insurance lines. Catastrophes might include multiple claims and policyholders. Catastrophes include hurricanes, windstorms, earthquakes, hailstorms, explosions, severe winter weather and fires. Our property catastrophe reinsurance is excess-of-loss reinsurance, which provides us reinsurance coverage for losses in excess of an agreed-upon amount. We utilize catastrophe models to assist in determining appropriate retention and limits to purchase. Effective July 1, 2013 the terms of our property catastrophe reinsurance are:
		and
		o	We retain the first $6.0 million of property catastrophe losses; and
		o	Our reinsurers reimburse us 100% for any loss occurrence in excess of our $6.0 million retention up to $29.0 million for each catastrophic occurrence, subject to an aggregate limit of $58.0 million.
			Commercial property. Our commercial property reinsurance is excess-of-loss coverage intended to reduce the financial impact a single-event or catastrophic loss may have on our results. Effective July 1, 2013 the terms of our commercial property reinsurance are:
		o	We retain the first $1.0 million of loss for each commercial property risk;
		o	Our reinsurers reimburse us for the next $5.0 million for each commercial property risk, and $10.0 million for all commercial property risk involved in any one occurrence, in all cases subject to an aggregate limit of $30.0 million for all commercial property losses occurring during the treaty period; and
		o	Individual risk facultative reinsurance is purchased on any commercial property with limits above $6.0 million.
			Commercial casualty. Our commercial casualty reinsurance is excess-of-loss coverage intended to reduce the financial impact a single-event loss may have on our results. Effective July 1, 2013 the terms of our commercial casualty reinsurance are:
		o	We retain the first $1.0 million of any commercial liability risk; and
		o	Our reinsurers reimburse us for the next $5.0 million for each commercial liability risk.
			Aviation. Effective July 1, 2013 we purchased proportional reinsurance where we cede 80% of the risk to reinsurers on the aviation risks produced in all states by our Hallmark Select business unit.
			Occupational Accident.  We purchase excess-of-loss reinsurance coverage for the occupational accident insurance product produced by our Standard Commercial P&C business unit.  The terms of occupational accident reinsurance are:
			o	We retain the first $1.0 million of any occupational accident risk; and
			o	Our reinsurers reimburse us for the next $5.0 million for each occupational accident risk up to $10.0 million for each occurrence.
			Workers Compensation. We purchase excess of loss reinsurance specific to the workers compensation risks underwritten by our Workers Compensation business unit. The terms of our workers compensation reinsurance are:
			o	We retain the first $1.0 million of each workers compensation loss; and
			o	Our reinsurers reimburse us 100% for the next $14.0 million for each workers compensation loss, subject to a maximum limit of $10.0 million for any one person and an aggregate limit of $28.0 million for all workers compensation losses.
			Personal Property.  Effective February 1, 2013 we purchased proportional reinsurance where we cede 60% of the risks to reinsurers on the low value dwelling/homeowners, renters and manufactured homes coverages produced in all states by our Personal Lines business unit.
			Personal Auto. Effective October 1, 2013 we purchased proportional reinsurance where we cede 90% of the risks to reinsurers on the nonstandard automobile risks produced in certain states by our Personal Lines business unit.
			Standard Commercial P&C. We purchase proportional reinsurance where we cede 100% of the risks to reinsurers on the equipment breakdown coverage on our commercial multi-peril property and business owners risks and on the employment practices liability coverage on certain commercial multi-peril, general liability and business owners risks.
			Excess & Umbrella. We purchase proportional reinsurance where we retain 20% of each risk and cede the remaining 80% to reinsurers on the commercial umbrella and excess liability insurance produced by our Hallmark Select business unit. In states where we are not yet licensed to offer a non-admitted product, we utilize a fronting arrangement pursuant to which we assume all of the risk and then retrocede a portion of that risk under the same proportional reinsurance treaty.
		Professional Liability.  Effective June 1, 2013, we purchased proportional reinsurance on our medical professional liability risks produced by our Hallmark Select business unit where we retain 60% of each risk and cede the remaining 40% to reinsurers. In states where we are not yet licensed to offer a non-admitted product, we utilize a fronting arrangement pursuant to which we assume all of the risk and then retrocede a portion of that risk under the same proportional reinsurance treaty.
	·
			E&S Commercial. We purchase facultative reinsurance on our commercial umbrella and excess liability risks produced by our E&S Commercial business unit where we retain 10% of the first $1.0 million of risk and cede the remaining 90% to reinsurers. We cede 100% of our commercial umbrella and excess liability risks in excess of $1.0 million.
			Hallmark County Mutual. HCM is used to front certain lines of business in our Specialty Commercial and Personal Segments in Texas where we previously produced policies for third party county mutual insurance companies and reinsured 100% for a fronting fee. In addition, HCM is used to front business produced by unaffiliated third parties. HCM does not retain any business.
			Hallmark National Insurance Company. Simultaneous with the December 31, 2010 closing of our acquisition of HNIC, HNIC entered into reinsurance contracts with an affiliate of the seller pursuant to which such affiliate of the seller handles all claims and assumes all liabilities arising under policies issued by HNIC prior to closing or during a transition period following the closing.

Revolving_Credit_Facility_and_

Revolving Credit Facility and Notes Payable	12 Months Ended
	Dec. 31, 2013
Revolving Credit Facility Payable And Notes Payable [Abstract]	'
Revolving Credit Facility and Notes Payable	'
		8	Revolving Credit Facility and Notes Payable:
	Our First Restated Credit Agreement with The Frost National Bank dated January 27, 2006, as amended to date, provides a revolving credit facility of $15.0 million. We pay interest on the outstanding balance at our election at a rate of the prime rate or LIBOR plus 2.5%. We pay an annual fee of 0.25% of the average daily unused balance of the credit facility. We pay letter of credit fees at the rate of 1.00% per annum. Our obligations under the revolving credit facility are secured by a security interest in the capital stock of all of our subsidiaries, guarantees of all of our subsidiaries and the pledge of all of our non-insurance company assets. The revolving credit facility contains covenants that, among other things, require us to maintain certain financial and operating ratios and restrict certain distributions, transactions and organizational changes. As of December 31, 2013, we were in compliance with all of our covenants. As of December 31, 2013 and 2012, the balance on the revolving note was $1.5 million and $1.5 million, respectively. The revolving note currently bears interest at 2.75% per annum.

Subordinated_Debt_Securities

Subordinated Debt Securities	12 Months Ended
	Dec. 31, 2013
Subordinated Debt Securities [Abstract]	'
Subordinated Debt Securities	'
		9	Subordinated Debt Securities:
	On June 21, 2005, we entered into a trust preferred securities transaction pursuant to which we issued $30.9 million aggregate principal amount of subordinated debt securities due in 2035. To effect the transaction, we formed Trust I as a Delaware statutory trust. Trust I issued $30.0 million of preferred securities to investors and $0.9 million of common securities to us. Trust I used the proceeds from these issuances to purchase the subordinated debt securities. Our Trust I subordinated debt securities bear an initial interest rate of 7.725% until June 15, 2015, at which time interest will adjust quarterly to the three-month LIBOR rate plus 3.25 percentage points. Trust I pays dividends on its preferred securities at the same rate. Under the terms of our Trust I subordinated debt securities, we pay interest only each quarter and the principal of the note at maturity. The subordinated debt securities are uncollaterized and do not require maintenance of minimum financial covenants. As of December 31, 2013, the balance of our Trust I subordinated debt was $30.9 million.
	On August 23, 2007, we entered into a trust preferred securities transaction pursuant to which we issued $25.8 million aggregate principal amount of subordinated debt securities due in 2037. To effect the transaction, we formed Trust II as a Delaware statutory trust. Trust II issued $25.0 million of preferred securities to investors and $0.8 million of common securities to us. Trust II used the proceeds from these issuances to purchase the subordinated debt securities. Our Trust II subordinated debt securities bear an initial interest rate of 8.28% until September 15, 2017, at which time interest will adjust quarterly to the three-month LIBOR rate plus 2.90 percentage points. Trust II pays dividends on its preferred
	securities at the same rate. Under the terms of our Trust II subordinated debt securities, we pay interest only each quarter and the principal of the note at maturity. The subordinated debt securities are uncollaterized and do not require maintenance of minimum financial covenants. As of December 31, 2013, the balance of our Trust II subordinated debt was $25.8 million.

Segment_Information

Segment Information	12 Months Ended
	Dec. 31, 2013
Segment Information [Abstract]	'
Segment Information	'
		10	Segment Information:
	We pursue our business activities primarily through subsidiaries whose operations are organized into producing units and are supported by our insurance carrier subsidiaries. Our non-carrier insurance activities are organized by business units into the following reportable segments:
			Standard Commercial Segment. The Standard Commercial Segment includes the standard lines commercial property/casualty and occupational accident insurance products and services handled by our Standard Commercial P&C business unit and the workers compensation insurance products handled by our Workers Compensation business unit. Our Standard Commercial P&C business unit is comprised of our American Hallmark Insurance Services and ECM subsidiaries. Our Workers Compensation business unit is comprised of our TBIC Holdings, TBIC and TBICRM subsidiaries. The Workers Compensation business unit was acquired July 1, 2011.
			Specialty Commercial Segment. The Specialty Commercial Segment includes the excess and surplus lines commercial property/casualty insurance products and services handled by our E&S Commercial business unit and the general aviation, commercial umbrella and excess liability, medical professional liability and satellite launch insurance products and services handled by our Hallmark Select business unit, as well as certain Specialty Programs which are managed at the parent level. Our E&S Commercial business unit is comprised of our HSU, PAAC and TGASRI subsidiaries. Our Hallmark Select business unit is comprised of our Aerospace Insurance Managers, ASRI, ACMG, HXS and HDS subsidiaries.
			Personal Segment. The Personal Segment includes the non-standard personal automobile, low value dwelling/homeowners, renters and motorcycle insurance products and services handled by our Personal Lines business unit which is comprised of American Hallmark General Agency, Inc. and Hallmark Claims Services, Inc., both of which do business as Hallmark Insurance Company.
	The retained premium produced by these reportable segments is supported by our AHIC, HSIC, HIC, HNIC and TBIC insurance company subsidiaries. In addition, control and management of HCM is maintained through our wholly owned subsidiary, CYR Insurance Management Company (“CYR”). CYR has as its primary asset a management agreement with HCM which provides for CYR to have management and control of HCM. HCM is used to front certain lines of business in our Specialty Commercial and Personal Segments in Texas. HCM does not retain any business.
	AHIC, HIC, HSIC and HNIC have entered into a pooling arrangement, pursuant to which AHIC retains 30% of the net premiums written by any of them, HIC retains 27% of the net premiums written by any of them, HSIC retains 30% of the net premiums written by any of them and HNIC retains 13% of the net premiums written by any of them. Neither HCM nor TBIC is a party to the intercompany pooling arrangement.
	The following is additional business segment information for the twelve months ended December 31, 2013, 2012 and 2011 (in thousands):
			2013			2012			2011
	Revenues
	Standard Commercial Segment		$	83,306		$	73,119		$	72,830
	Specialty Commercial Segment			229,734			178,917			142,838
	Personal Segment			71,081			89,149			101,351
	Corporate			5,307			615			5,752
	Consolidated		$	389,428		$	341,800		$	322,771
	Depreciation and Amortization Expense
	Standard Commercial Segment		$	201		$	186		$	174
	Specialty Commercial Segment			2,896			2,892			3,293
	Personal Segment			1,111			1,230			1,431
	Corporate			92			113			166
	Consolidated		$	4,300		$	4,421		$	5,064
	Interest Expense
	Standard Commercial Segment		$	-		$	-		$	-
	Specialty Commercial Segment			-			-			-
	Personal Segment			-			-			-
	Corporate			4,599			4,634			4,631
	Consolidated		$	4,599		$	4,634		$	4,631
	Tax Expense (Benefit)
	Standard Commercial Segment		$	312		$	372		$	(376	)
	Specialty Commercial Segment			3,613			1,875			4,454
	Personal Segment			(398	)		(968	)		(13,991	)
	Corporate			(692	)		(1,753	)		959
	Consolidated		$	2,835		$	(474	)	$	(8,954	)
	Pre-tax Income (Loss), net of non-controlling interest
	Standard Commercial Segment		$	1,980		$	(2,486	)	$	1,335
	Specialty Commercial Segment			19,527			25,932			14,348
	Personal Segment			(3,416	)		(8,535	)		(29,647	)
	Corporate			(7,011	)		(11,861	)		(5,881	)
	Consolidated		$	11,080		$	3,050		$	(19,845	)
	The following is additional business segment information as of the following dates (in thousands):
			December 31,
			2013			2012
	Assets
	Standard Commercial Segment		$	142,143		$	145,162
	Specialty Commercial Segment			536,894			432,208
	Personal Segment			210,825			200,356
	Corporate			19,161			12,742
	Consolidated		$	909,023		$	790,468

Earnings_Per_Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2013
Earnings Per Share [Abstract]	'
Earnings Per Share	'
		11	Earnings Per Share:
	We have adopted the provisions of ASC 260, “Earnings Per Share,” requiring presentation of both basic and diluted earnings per share. A reconciliation of the numerators and denominators of the basic and diluted per share calculations is presented below (in thousands, except per share amounts):
	)
			2013		2012			2011
	Numerator for both basic and diluted earnings per share:
	Net income (loss) attributable to Hallmark Financial Services, Inc.		$	8,245		$	3,524		$	(10,891	)
	Denominator, basic shares			19,263			19,263			19,673
	Effect of dilutive securities:
	Stock-based compensation awards			98			6			-
	Denominator, diluted shares			19,361			19,269			19,673
	Basic earnings per share:		$	0.43		$	0.18		$	(0.55	)
	Diluted earnings per share:		$	0.43		$	0.18		$	(0.55	)
	We had 779,999 shares, 794,999 shares and 809,999 shares of common stock potentially issuable upon exercise of employee stock options for years ended December 31, 2013, 2012 and 2011, respectively, that were excluded from the weighted average number of shares outstanding on a diluted basis because the effect of such options would be anti-dilutive. These instruments expire at varying times from 2016 to 2021.

Regulatory_Capital_Restriction

Regulatory Capital Restrictions	12 Months Ended
	Dec. 31, 2013
Regulatory Capital Restrictions [Abstract]	'
Regulatory Capital Restrictions	'
		Regulatory Capital Restrictions:
	12
	Hallmark, as a holding company, is dependent on dividend payments and management fees from its subsidiaries to fund its operating expenses, debt obligations and capital needs, including the ability to pay dividends to its stockholders. Hallmark has never paid dividends on its common stock. Hallmark intends to continue this policy for the foreseeable future in order to retain earnings for development of its business. There are no regulatory or contractual restrictions on the ability of Hallmark to pay dividends other than customary default provisions and the impact of any dividend payment on financial ratio covenants in certain credit agreements. However there are restrictions on the ability of Hallmark’s insurance carrier subsidiaries to transfer funds to the holding company. The amount of retained earnings that is unrestricted for the payment of dividends by Hallmark to its shareholders was $29.8 million as of December 31, 2013.
	AHIC and TBIC, domiciled in Texas, are limited in the payment of dividends to their stockholders in any 12-month period, without the prior written consent of the Texas Department of Insurance, to the greater of statutory net income for the prior calendar year or 10% of statutory policyholders’ surplus as of the prior year end. HIC, domiciled in Arizona, is limited in the payment of dividends to the lesser of 10% of prior year policyholders’ surplus or prior year’s net investment income, without prior written approval from the Arizona Department of Insurance. HSIC, domiciled in Oklahoma, is limited in the payment of dividends to the greater of 10% of prior year policyholders’ surplus or prior year’s statutory net income, not including realized capital gains, without prior written approval from the Oklahoma Insurance Department. HNIC, domiciled in Ohio, is limited in the payment of dividends to the greater of 10% of statutory policyholders’ surplus as of the prior December 31 or statutory net income as of the prior December 31 without prior written approval from the Ohio Insurance Department. For all our insurance companies, dividends may only be paid from unassigned surplus funds. During 2014, the aggregate ordinary dividend capacity of these subsidiaries is $22.5 million, of which $15.6 million is available to Hallmark. As a county mutual, dividends from HCM are payable to policyholders. None of our insurance company subsidiaries paid a dividend during the years ended December 31, 2013 or 2012. The total restricted net assets of our insurance company subsidiaries as of December 31, 2013, was approximately $208.3 million.
	The state insurance departments also regulate financial transactions between our insurance subsidiaries and their affiliated companies. Applicable regulations require approval of management fees, expense sharing contracts and similar transactions. The net amount paid in management fees by our insurance subsidiaries to Hallmark and our non-insurance company subsidiaries was $8.2 million, $9.0 million and $6.0 million during each of 2013, 2012 and 2011, respectively.
	Statutory capital and surplus is calculated as statutory assets less statutory liabilities. The various state insurance departments that regulate our insurance company subsidiaries require us to maintain a minimum statutory capital and surplus. As of December 31, 2013 and 2012, our insurance company subsidiaries reported statutory capital and surplus of $196.3 million and $176.5 million, respectively, substantially greater than the minimum requirements for each state. For the years ended December 31, 2013, 2012, 2011, respectively, our insurance company subsidiaries reported statutory net income of $6.1 million, statutory net income of $3.1 million and statutory net loss of $17.2 million, respectively.
	The National Association of Insurance Commissioners requires property/casualty insurers to file a risk-based capital calculation according to a specified formula. The purpose of the formula is twofold: (1) to assess the adequacy of an insurer’s statutory capital and surplus based upon a variety of factors such as potential risks related to investment portfolio, ceded reinsurance and product mix; and (2) to assist state regulators under the RBC for Insurers Model Act by providing thresholds at which a state commissioner is authorized and expected to take regulatory action. As of December 31, 2013, the adjusted capital under the risk-based capital calculation of each of our insurance company subsidiaries substantially exceeded the minimum requirements.

Sharebased_Payment_Arrangement

Share-based Payment Arrangements	12 Months Ended
	Dec. 31, 2013
Share-based Payment Arrangements [Abstract]	'
Share-based Payment Arrangements	'
		Share-based Payment Arrangements:
	13
	Our 2005 Long Term Incentive Plan (“2005 LTIP”) is a stock compensation plan for key employees and non-employee directors that was initially approved by the shareholders on May 26, 2005.  There are 2,000,000 shares authorized for issuance under the 2005 LTIP.  As of December 31, 2013, there were outstanding incentive stock options to purchase 1,083,332 shares of our common stock, non-qualified stock options to purchase 304,157 shares of our common stock and restricted stock units representing the right to receive up to 355,277 shares of our common stock. There are 241,401 shares reserved for future issuance under the 2005 LTIP.  The exercise price of all such outstanding stock options is equal to the fair market value of our common stock on the date of grant.
	Stock Options:
	Incentive stock options granted under the 2005 LTIP prior to 2009 vest 10%,  20%,  30% and 40% on the first, second, third and fourth anniversary dates of the grant, respectively, and terminate five to ten years from the date of grant.  Incentive stock options granted in 2009 and one grant of 5,000 incentive stock options in 2011 vest in equal annual increments on each of the first seven anniversary dates and terminate ten years from the date of grant.  One grant of 25,000 incentive stock options in 2010 and one grant of 10,000 incentive stock options in 2011 vest in equal annual increments on each of the first three anniversary dates and terminate ten years from the date of grant.  Non-qualified stock options granted under the 2005 LTIP generally vest 100% six months after the date of grant and terminate ten years from the date of grant.  One grant of 200,000 non-qualified stock options in 2009 vests in equal annual increments on each of the first seven anniversary dates and terminates ten years from the date of grant.
	A summary of the status of our stock options as of December 31, 2013 and changes during the year then ended is presented below:
						Weighted		Remaining		Aggregate
						Average		Contractual		Intrinsic
			Number of			Exercise		Term		Value
			Shares			Price		(Years)		$0
	Outstanding at January 1, 2013			1,404,989		$	9.63
	Granted			-
	Exercised			-
	Forfeited or expired			(17,500	)	$	7.58
	Outstanding at December 31, 2013			1,387,489		$	9.66		4.2	$	1,329
	Exercisable at December 31, 2013			1,181,417		$	10.19		4	$	866
	The following table details the intrinsic value of options exercised, total cost of share-based payments charged against income before income tax benefit and the amount of related income tax benefit recognized in income for the periods indicated (in thousands):
			2013			2012		2011
	Intrinsic value of options exercised		$	-		$	-	$	4
	Cost of share-based payments (non-cash)		$	207		$	380	$	709
	Income tax benefit of share-based payments recognized in income		$	30		$	38	$	30
	As of December 31, 2013, there was $0.5 million of total unrecognized compensation cost related to non-vested stock options granted under our plans, of which $0.2 million is expected to be recognized each year in 2014 and 2015,  $54 thousand is expected to be recognized in 2016 and $3 thousand is expected to be recognized in 2017.
	The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of Hallmark’s and similar companies’ common stock for a period equal to the expected
	term. The risk-free interest rates for periods within the contractual term of the options are based on rates for U.S. Treasury Notes with maturity dates corresponding to the options’ expected lives on the dates of grant. Expected term is determined based on the simplified method as we do not have sufficient historical exercise data to provide a basis for estimating the expected term.
	There were no stock options granted in 2013 or 2012.  Stock options granted in 2011 had a weighted average grant date fair value of $2.52, expected term of 5.8 years, expected volatility of 30.9% and risk free interest rate of 1.4%.
	Restricted Stock Units:
	The 2005 LTIP was amended by the stockholders on May 30, 2013 to authorize the grant of restricted stock units, in addition to the other types of awards available thereunder.  Restricted stock units represent the right to receive shares of common stock upon the satisfaction of vesting requirements, performance criteria and other terms and conditions.  On July 27, 2012 and April 10, 2013, an aggregate of 129,463 and 122,823 restricted stock units, respectively, were conditionally granted to certain employees of the Company subject to shareholder approval of the amendments to the 2005 LTIP at the May 30, 2013 shareholder meeting. One conditional grant of 9,280 restricted stock units was forfeited prior to approval at the shareholder meeting.
	The performance criteria for all restricted stock units require that the Company achieve certain compound average annual growth rates in book value per share over the vesting period in order to receive shares of common stock in amounts ranging from 50% to 150% of the number of restricted stock units granted.  In addition, certain restricted stock units contain an additional performance criteria related to the attainment of an average combined ratio percentage over the vesting period.   If and to the extent specified performance criteria have been achieved, the restricted stock units granted on July 27, 2012 will vest on March 31, 2015, and the restricted stock units granted on April 10, 2013 will vest on March 31, 2016.
	Compensation cost is measured as an amount equal to the fair value of the restricted stock units and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on the Company’s best estimate of the ultimate achievement level.  The grant date fair value of the restricted stock units is $9.20 per unit.  The Company incurred $145 thousand of compensation expense related to the restricted stock units during the year ended December 31, 2013.
	A summary of the status of our restricted stock units as of December 31, 2013 and changes during the year then ended is presented below:
		Number of
		Restricted
		Stock Units
	Nonvested at January 1, 2013	-
	Granted	243,006
	Vested	-
	Forfeited	-6,155
	Nonvested at December 31, 2013	236,851
	As of December 31, 2013, there was $0.5 million of total unrecognized compensation cost related to non-vested restricted stock units granted under our 2005 LTIP, of which $0.2 million is expected to be recognized in 2014, $0.2 million is expected to be recognized in 2015 and $49 thousand is expected to be recognized in 2016.

Retirement_Plans

Retirement Plans	12 Months Ended
	Dec. 31, 2013
Retirement Plans [Abstract]	'
Retirement Plans	'
		Retirement Plans:
	14
	Certain employees of the Standard Commercial Segment were participants in a defined cash balance plan covering all full-time employees who had completed at least 1,000 hours of service. This plan was frozen in March 2001 in anticipation of distribution of plan assets to members upon plan termination. All participants were vested when the plan was frozen.
	The following tables provide detail of the changes in benefit obligations, components of benefit costs, weighted-average assumptions, and plan assets for the retirement plan as of and for the twelve months ending December 31, 2013, 2012 and 2011 (in thousands) using a measurement date of December 31.
	4
			2013			2012			2011
	Assumptions (end of period):
	Discount rate used in determining benefit obligation			4.49	%		3.89	%		4.5	%
	Rate of compensation increase			N/A			N/A			N/A
	Reconciliation of funded status (end of period):
	Accumulated benefit obligation		$	(12,284	)	$	(13,439	)	$	(12,990	)
	Projected benefit obligation		$	(12,284	)	$	(13,439	)	$	(12,990	)
	Fair value of plan assets			10,851			9,754			9,019
	Funded status		$	(1,433	)	$	(3,685	)	$	(3,971	)
	Net actuarial loss			(2,277	)		(4,545	)		(4,582	)
	Accumulated other comprehensive loss			(2,277	)		(4,545	)		(4,582	)
	Prepaid pension cost			844			860			611
	Net amount recognized as of December 31		$	(1,433	)	$	(3,685	)	$	(3,971	)
	Changes in projected benefit obligation:
	Benefit obligation as of beginning of period		$	13,439		$	12,990		$	12,050
	Interest cost			505			564			609
	Actuarial liability (gain)/loss			(824	)		700			1,160
	Benefits paid			(836	)		(815	)		(829	)
	Benefit obligation as of end of period		$	12,284		$	13,439		$	12,990
	Change in plan assets:
	Fair value of plan assets as of beginning of period		$	9,754		$	9,019		$	9,217
	Actual return on plan assets (net of expenses)			1,565			839			(4	)
	Employer contributions			368			711			635
	Benefits paid			(836	)		(815	)		(829	)
	Fair value of plan assets as of end of period		$	10,851		$	9,754		$	9,019
	Net periodic pension cost:
	Service cost - benefits earned during the period		$	-		$	-		$	-
	Interest cost on projected benefit obligation			505			564			609
	Expected return on plan assets			(615	)		(584	)		(590	)
	Recognized actuarial loss			495			482			287
	Net periodic pension cost		$	385		$	462		$	306
	Discount rate			3.89	%		4.5	%		5.25	%
	Expected return on plan assets			6.5	%		6.5	%		6.5	%
	Rate of compensation increase			N/A			N/A			N/A
	Estimated future benefit payments by fiscal year (in thousands):
	4
	2014		$	889
	2015		$	897
	2016		$	885
	2017		$	884
	2018		$	878
	2019-2023		$	4,170
	As of December 31, 2013, the fair value of the plan assets was composed of cash and cash equivalents of $0.3 million, bonds and notes of $3.5 million and equity securities of $7.1 million.
	Our investment objectives are to preserve capital and to achieve long-term growth through a favorable rate of return equal to or greater than 5% over the long-term (60 year) average inflation rate as measured by the consumer price index. The objective of the equity portion of the portfolio is to achieve a return in excess of the Standard & Poor’s 500 index. The objective of the fixed income portion of the portfolio is to add stability, consistency, safety and total return to the total fund portfolio.
	We prohibit investments in options, futures, precious metals, short sales and purchase on margin. We also restrict the investment in fixed income securities to “A” rated or better by Moody’s or Standard & Poor’s rating services and restrict investments in common stocks to only those that are listed and actively traded on one or more of the major United States stock exchanges, including NASDAQ. We manage to an asset allocation of 45% to 75% in equity securities. An investment in any single stock issue is restricted to 5% of the total portfolio value and 90% of the securities held in mutual or commingled funds must meet the criteria for common stocks.
	To develop the expected long-term rate of return on assets assumption, we consider the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. This resulted in the selection of the 6.5% long-term rate of return on assets assumption. To develop the discount rate used in determining the benefit obligation we used the Mercer Yield Curve at the measurement date to match the timing and amounts of projected future benefits.
	We estimate contributing $0.7 million to the defined benefit cash balance plan during 2014. We expect our 2014 periodic pension cost to be $(4) thousand, the components of which are interest cost of $0.5 million, expected return on plan assets of ($0.7) million and amortization of actuarial loss of $0.2 million.
	The following table shows the weighted-average asset allocation for the defined benefit cash balance plan held as of December 31, 2013 and 2012.
			12/31/13			12/31/12
	Asset Category:
	Fixed income securities			32	%		33	%
	Equity securities			65	%		63	%
	Other			3	%		4	%
	Total			100	%		100	%
	Effective January 1, 2008, we determine the fair value of our financial instruments based on the fair value hierarchy established in ASC 820. (See Note 3.)
	The following table presents, for each of the fair value hierarchy levels, our plan assets that are measured at fair value on a recurring basis at December 31, 2013 and December 31, 2012 (in thousands).
			As of December 31, 2013
			Quoted Prices in			Other
		Active Markets for			Observable			Unobservable
		Identical Assets			Inputs			Inputs
		(Level 1)			(Level 2)			(Level 3)			Total
Debt securities		$	-		$	3,448		$	-		$	3,448
Equity securities			7,080			-			-			7,080
Total		$	7,080		$	3,448		$	-		$	10,528
		As of December 31, 2012
		Quoted Prices in			Other
		Active Markets for			Observable			Unobservable
		Identical Assets			Inputs			Inputs
		(Level 1)			(Level 2)			(Level 3)			Total
Debt securities		$	-		$	3,188		$	-		$	3,188
Equity securities			6,153			-			-			6,153
Total		$	6,153		$	3,188		$	-		$	9,341
Our plan assets also include cash and cash equivalents of $0.3 million and $0.4 million at December 31, 2013 and 2012, respectively, and are carried at cost which approximates fair value.
We sponsor two defined contribution plans. Under these plans, employees may contribute a portion of their compensation on a tax-deferred basis, and we may contribute a discretionary amount each year. We contributed $0.3 million, $0.1 million and $0.2 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Income_Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2013
Income Taxes [Abstract]	'
Income Taxes	'
		Income Taxes:
	15
	The composition of deferred tax assets and liabilities and the related tax effects as of December 31, 2013 and 2012, are as follows (in thousands):
			2013			2012
	Deferred tax liabilities:
	Deferred policy acquisition costs		$	(7,905	)	$	(8,719	)
	Net unrealized holding gain on investments			(9,730	)		(5,622	)
	Agency relationship			(85	)		(94	)
	Intangible assets			(6,129	)		(6,852	)
	Goodwill			(325	)		(116	)
	Fixed assets			(499	)		(685	)
	Other			(263	)		(275	)
	Total deferred tax liabilities			(24,936	)		(22,363	)
	Deferred tax assets:
	Unearned premiums			9,822			9,806
	Alternative minimum tax			442			1,651
	Amortization of non-compete agreements			417			476
	Pension liability			797			1,591
	Net operating loss carry-forward			611			702
	Unpaid loss and loss adjustment expense			8,173			7,549
	Rent reserve			366			363
	Investment impairments			660			1,256
	Other			823			909
	Total deferred tax assets			22,111			24,303
	Deferred federal income taxes, net		$	(2,825	)	$	1,940
	A reconciliation of the income tax provisions based on the statutory tax rate to the provision reflected in the consolidated financial statements for the years ended December 31, 2013, 2012 and 2011, is as follows (in thousands):
			2013			2012			2011
	Computed expected income tax expense (benefit) at statutory regulatory tax rate		$	3,878		$	1,181		$	(6,926	)
	Meals and entertainment			25			28			44
	Tax exempt interest			(1,314	)		(1,631	)		(1,835	)
	Dividends received deduction			(101	)		(111	)		(99	)
	State taxes (net of federal benefit)			276			298			84
	Other			71			(239	)		(222	)
	Income tax expense (benefit)		$	2,835		$	(474	)	$	(8,954	)
	Current income tax expense (benefit)		$	3,092		$	2,377		$	(6,059	)
	Deferred tax benefit			(257	)		(2,851	)		(2,895	)
	Income tax expense (benefit)		$	2,835		$	(474	)	$	(8,954	)
	We have available, for federal income tax purposes, unused net operating loss of approximately $1.7 million at December 31, 2013. The losses were acquired as part of the HIC and HCM acquisitions and may be used to offset future taxable income. Utilization of the losses is limited under Internal Revenue Code Section 382. The Internal Revenue Code provides that effective with tax years beginning September 1997, the carry-back and carry-forward periods are 2 years and 20 years, respectively, with respect to newly generated operating losses. The net operating losses will expire if unused, as follows (in thousands):
	Year
	2021		$	650
	2022			878
	2028			2
	2030			25
	2031			45
	2032			77
	2033			70
			$	1,747
	We are no longer subject to U.S. federal, state, local or non-U.S. income tax examinations by tax authorities for years prior to 2010. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions at December 31, 2013.

Commitments_and_Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2013
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'
		Commitments and Contingencies:
	16
	We have several leases, primarily for office facilities and computer equipment, which expire in various years through 2022. Certain of these leases contain renewal options. Rental expense amounted to $2.2 million, $2.3 million and $2.0 million for the years ended December 31, 2013, 2012, and 2011, respectively.
	Future minimum lease payments under non-cancelable operating leases as of December 31, 2013 are as follows (in thousands):
	4
	Year
	2014		$	1,987
	2015			1,969
	2016			1,641
	2017			1,484
	2018			1,193
	2019 and thereafter			3,166
	Total minimum lease payments		$	11,440
	From time to time, assessments are levied on us by the guaranty association of the states where we offer our insurance products. Such assessments are made primarily to cover the losses of policyholders of insolvent or rehabilitated insurers. Since these assessments can generally be recovered through a reduction in future premium taxes paid, we capitalize the assessments that can be recovered as they are paid and amortize the capitalized balance against our premium tax expense. We paid an assessment of $29 thousand in 2013. We paid an assessment of $0.1 million in 2012 that was expensed. There were no assessments during 2011.
	In December 2010, HSU was informed by the Texas Comptroller of Public Accounts that a surplus lines tax audit covering the period January 1, 2007 through December 31, 2009 was complete. HSU frequently acts as a managing general underwriter (“MGU”) authorized to underwrite policies on behalf of Republic Vanguard Insurance Company and HSIC, both Texas eligible surplus lines insurance carriers. In its role as the MGU, HSU underwrites policies on behalf of these carriers while other agencies located in Texas generally referred to as “producing agents” deliver the policies to the insureds and collect all premiums due from the insureds. During the period under audit, the producing agents also collected the surplus lines premium taxes due on the policies from the insureds, held them in trust, and timely remitted those taxes to the Comptroller. We believe this system for collecting and paying the required surplus lines premium taxes complies in all respects with the Texas Insurance Code and other regulations, which clearly require that the same party who delivers the policies and collects the premiums will also collect premium taxes, hold premium taxes in trust, and pay premium taxes to the Comptroller. It also complies with long standing industry practice. The Comptroller asserts that HSU is liable for the surplus lines premium taxes related to policy transactions and premiums collected from surplus lines insureds during the audit period and that HSU therefore owes $4.5 million in premium taxes, as well as $0.9 million in penalties and interest for the audit period.
	We disagree with the Comptroller and intend to vigorously fight their assertion that HSU is liable for the surplus lines premium taxes. During the past year we have been engaged in conversations with the Comptroller’s counsel. We are currently in negotiations with the Comptroller to settle the matter.  However, we are presently unable to reasonably estimate the possible loss or legal costs that are likely to arise out of the surplus lines tax audit or any future proceedings relating to this matter. Therefore we have not accrued any amount as of December 31, 2013 related to this matter.
	We are engaged in legal proceedings in the ordinary course of business, none of which, either individually or in the aggregate, are believed likely to have a material adverse effect on our consolidated financial position or results of operations, in the opinion of management. The various legal proceedings to which we are a party are routine in nature and incidental to our business.

Changes_in_Accumulated_Other_C

Changes in Accumulated Other Comprehensive Income Balances	12 Months Ended
	Dec. 31, 2013
Changes in Accumulated Other Comprehensive Income Balances [Abstract]	'
Changes in Accumulated Other Comprehensive Income Balances	'
		Changes in Accumulated Other Comprehensive Income Balances:
	17
	The changes in accumulated other comprehensive income balances as of December 31, 2013, 2012, and 2011 were as follows (in thousands):
									Accumulated Other
			Pension			Unrealized			Comprehensive
			Liability			Gains (Loss)			Income (Loss)
	Balance at January 1, 2011		$	(2,024	)	$	11,661		$	9,637
	Other comprehensive loss:
	Change in net actuarial loss			(1,468	)		-			(1,468	)
	Tax effect on change in net actuarial loss			514			-			514
	Unrealized holding gains arising during the period			-			191			191
	Tax effect on unrealized gains arising during the period			-			(67	)		(67	)
	Reclassification adjustment for gains included in net realized gains			-			(3,633	)		(3,633	)
	Tax effect on reclassification adjustment for gains included in income tax expense			-			1,272			1,272
	Other comprehensive loss, net of tax			(954	)		(2,237	)		(3,191	)
	Balance at December 31, 2011		$	(2,978	)	$	9,424		$	6,446
	Other comprehensive income:
	Change in net actuarial gain			37			-			37
	Tax effect on change in net actuarial gain			(13	)		-			(13	)
	Unrealized holding gains arising during the period			-			4,388			4,388
	Tax effect on unrealized gains arising during the period			-			(1,536	)		(1,536	)
	Reclassification adjustment for gains included in net realized gains			-			(2,189	)		(2,189	)
	Tax effect on reclassification adjustment for gains included in income tax expense			-			766			766
	Other comprehensive income, net of tax			24			1,429			1,453
	Balance at December 31, 2012		$	(2,954	)	$	10,853		$	7,899
	Other comprehensive income:
	Change in net actuarial gain			2,268			-			2,268
	Tax effect on change in net actuarial gain			(794	)		-			(794	)
	Unrealized holding gains arising during the period			-			22,094			22,094
	Tax effect on unrealized gains arising during the period			-			(7,733	)		(7,733	)
	Reclassification adjustment for gains included in net realized gains			-			(10,540	)		(10,540	)
	Tax effect on reclassification adjustment for gains included in income tax expense			-			3,689			3,689
	Other comprehensive income, net of tax			1,474			7,510			8,984
	Balance at December 31, 2013		$	(1,480	)	$	18,363		$	16,883

Concentrations_of_Credit_Risk

Concentrations of Credit Risk	12 Months Ended
	Dec. 31, 2013
Concentrations of Credit Risk [Abstract]	'
Concentrations of Credit Risk	'
		18	Concentrations of Credit Risk:
	We maintain cash and cash equivalents in accounts with seven financial institutions in excess of the amount insured by the Federal Deposit Insurance Corporation. We monitor the financial stability of the depository institutions regularly and do not believe excessive risk of depository institution failure existed at December 31, 2013.
	We are also subject to credit risk with respect to reinsurers to whom we have ceded underwriting risk. Although a reinsurer is liable for losses to the extent of the coverage it assumes, we remain obligated to our policyholders in the event that the reinsurers do not meet their obligations under the reinsurance agreements. In order to mitigate credit risk to reinsurance companies, we monitor the financial condition of reinsurers on an ongoing basis and review our reinsurance arrangements periodically. Most of our reinsurance recoverable balances as of December 31, 2013 were with reinsurers that had an A.M. Best rating of “A-” or better. We also mitigate our credit risk for the remaining reinsurance recoverable by obtaining letters of credit.

Unaudited_Selected_Quarterly_F

Unaudited Selected Quarterly Financial Information	12 Months Ended
	Dec. 31, 2013
Unaudited Selected Quarterly Financial Information [Abstract]	'
Unaudited Selected Quarterly Financial Information	'
		Unaudited Selected Quarterly Financial Information:
	19
	Following is a summary of the unaudited interim results of operations for the years ended December 31, 2013 and 2012 (in thousands, except per share data). In the opinion of management, all adjustments necessary to present fairly the results of operations for such periods have been made.
			2013									2012
			Q1		Q2			Q3		Q4		Q1		Q2			Q3		Q4
	Total revenue		$	93,141	$	99,299		$	108,613	$	88,375	$	82,986	$	84,571		$	85,620	$	88,623
	Total expense			90,978		104,616			99,141		83,613		82,769		88,722			80,599		86,336
	Income (loss) before tax			2,163		(5,317	)		9,472		4,762		217		(4,151	)		5,021		2,287
	Income tax expense (benefit)			469		(2,166	)		3,198		1,334		23		(2,351	)		1,350		504
	Net income (loss)			1,694		(3,151	)		6,274		3,428		194		(1,800	)		3,671		1,783
	Net income attributable to non-controlling interest			-		-			-		-		23		43			258		-
	Net income (loss) attributable to Hallmark Financial Services, Inc.		$	1,694		(3,151	)	$	6,274	$	3,428	$	171	$	(1,843	)	$	3,413	$	1,783
	Basic earnings (loss) per share:		$	0.09	$	(0.16	)	$	0.33	$	0.18	$	0.01	$	(0.10	)	$	0.18	$	0.09
	Diluted earnings (loss) per share:		$	0.09	$	(0.16	)	$	0.32	$	0.18	$	0.01	$	(0.10	)	$	0.18	$	0.09

Schedule_II_Condensed_Financia

Schedule II - Condensed Financial Information of Registrant (Parent Company Only)	12 Months Ended
	Dec. 31, 2013
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]	'
Condensed Financial Information of Parent Company Only Disclosure	'
	Schedule II – Condensed Financial Information of Registrant (Parent Company Only)
	HALLMARK FINANCIAL SERVICES, INC.
	BALANCE SHEETS
	December 31, 2013 and 2012
	(In thousands)
		2013			2012
	ASSETS
	Cash and cash equivalents	$	8,063		$	1,112
	Investment in subsidiaries		316,295			296,258
	Deferred federal income taxes		930			2,112
	Other assets		3,729			3,416
		$	329,017		$	302,898
	LIABILITIES AND STOCKHOLDERS’ EQUITY
	Liabilities:
	Revolving credit facility payable	$	1,473		$	1,473
	Subordinated debt securities		56,702			56,702
	Current federal income tax payable		3,353			7,047
	Accounts payable and other accrued expenses		29,371			17,139
			90,899			82,361
	Stockholders’ equity:
	Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2013 and in 2012		3,757			3,757
	Capital in excess of par value		122,827			122,475
	Retained earnings		106,209			97,964
	Accumulated other comprehensive income		16,883			7,899
	Treasury stock (1,609,374 shares in 2013 and 2012), at cost		(11,558	)		(11,558	)
	Total stockholders’ equity		238,118			220,537
	Total liabilities and stockholders’ equity	$	329,017		$	302,898
	See accompanying report of independent registered public accounting firm.
	HALLMARK FINANCIAL SERVICES, INC.
	STATEMENTS OF OPERATIONS
	For the years ended December 31, 2013, 2012 and 2011
	(In thousands)
		2013			2012			2011
	Investment loss, net of expenses	$	(190	)	$	(181	)	$	(194	)
	Management fee income		8,518			8,485			7,288
			8,328			8,304			7,094
	Operating expenses		7,764			8,079			7,851
	Interest expense		4,599			4,634			4,631
	Amortization of intangible assets		-			17			42
			12,363			12,730			12,524
	Loss before equity in undistributed earnings (loss) of subsidiaries and income tax benefit		(4,035	)		(4,426	)		(5,430	)
	Income tax benefit		(1,227	)		(1,627	)		(1,669	)
	Loss before equity in undistributed earnings (loss) of subsidiaries		(2,808	)		(2,799	)		(3,761	)
	Equity in undistributed share of earnings (loss) in subsidiaries		11,053			6,323			(7,130	)
	Net income (loss)	$	8,245		$	3,524		$	(10,891	)
	Comprehensive income (loss)	$	17,229		$	4,977		$	(14,082	)
	See accompanying report of independent registered public accounting firm.
	FINANCIAL STATEMENT SCHEDULES
	HALLMARK FINANCIAL SERVICES, INC.
	STATEMENTS OF CASH FLOWS
	For the years ended December 31, 2013, 2012 and 2011
	(In thousands)
		2013			2012			2011
	Cash flows from operating activities:
	Net income (loss)	$	8,245		$	3,524		$	(10,891	)
	Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
	Depreciation and amortization expense		92			113			168
	Deferred income tax expense (benefit)		1,182			(1,725	)		(215	) )	)
	Undistributed share of (earnings) loss of subsidiaries		(11,053	)		(6,323	)		7,130		)
	Change in current federal income tax (recoverable)payable		(3,694	)		4,030			(4,838	) )	)
	Change in all other liabilities		12,232			357			5,155		)
	Change in all other assets		63			450			1,074
	Net cash provided by (used in) operating activities		7,067			426			(2,417	) )
Cash flows from investing activities:
Purchases of property and equipment, net		(116	)		(46	)		(205	) )	)
Net cash used in investing activities		(116	)		(46	)		(205	) )
Cash flows from financing activities:
Proceeds from exercise of employee stock options		-			-			99
Purchase of treasury shares		-			-			(6,401	) )
Activity under revolving credit facility, net		-			(2,577	)		1,250
Net cash used in financing activities		-			(2,577	)		(5,052	) )
Increase (decrease) in cash and cash equivalents		6,951			(2,197	)		(7,674	) )
Cash and cash equivalents at beginning of year		1,112			3,309			10,983
Cash and cash equivalents at end of year	$	8,063		$	1,112		$	3,309
Supplemental cash flow information:
Interest paid	$	(4,599	)	$	(4,656	)	$	(4,620	) )	)
Income taxes (paid) recovered	$	(1,285	)	$	3,932		$	(3,383	) )
See accompanying report of independent registered public accounting firm.

Schedule_III_Supplementary_Ins

Schedule III -Supplementary Insurance Information	12 Months Ended
	Dec. 31, 2013
Supplementary Insurance Information [Abstract]	'
Supplementary Insurance Information	'
	Schedule III - Supplementary Insurance Information
	(In thousands)
	Column A	Column B		Column C		Column D		Column E		Column F		Column G			Column H		Column I		Column J		Column K
	Segment	Deferred		Future		Unearned		Other		Premium		Net			Benefits,		Amortization		Other		Net
		Policy		Policy		Premiums		Policy		Revenue		Investment			Claims, Losses		of Deferred		Operating		Premiums
		Acquisition		Benefits,				Claims				Income			and Settlement		Policy		Expenses		Written
		Costs		Losses,				and Benefits							Expenses		Acquisition
				Claims and				Payable									Costs
				Loss
				Adjustment
				Expenses
	2013
	Personal Segment	$	660	$	38,294	$	17,989	$	-	$	63,800	$	2,065		$	52,656	$	17,759	$	16,957	$	45,644
	Standard Commercial Segment		6,124		111,473		36,309		-		78,176		5,031			56,143		8,254		25,313		79,466
	Specialty Commercial Segment		15,802		232,873		131,005		-		218,565		11,021			152,546		31,264		56,974		235,655
	Corporate		-		-		-		-		-		(5,233	)		-		-		7,720		-
	Consolidated	$	22,586	$	382,640	$	185,303	$	-	$	360,541	$	12,884		$	261,345	$	57,277	$	106,964	$	360,765
	2012
	Personal Segment	$	4,952	$	40,387	$	21,125	$	-	$	81,451	$	2,449		$	69,606	$	17,250	$	26,413	$	76,345
	Standard Commercial Segment		5,968		103,610		35,073		-		69,155		4,925			52,828		10,825		22,742		70,091
	Specialty Commercial Segment		13,991		169,419		106,304		-		168,830		9,435			103,980		31,730		49,170		186,053
	Corporate		-		-		-		-		-		(1,516	)		-		-		7,825		-
	Consolidated	$	24,911	$	313,416	$	162,502	$	-	$	319,436	$	15,293		$	226,414	$	59,805	$	106,150	$	332,489
	2011
	Personal Segment	$	6,020	$	53,280	$	26,307	$	-	$	92,962	$	2,470		$	101,030	$	13,865	$	29,706	$	95,655
	Standard Commercial Segment		5,976		100,487		32,854		-		64,586		4,061			50,940		12,721		20,589		63,944
	Specialty Commercial Segment		10,558		143,178		86,943		-		135,493		7,416			87,265		21,189		39,471		144,277
	Corporate		-		-		-		-		-		1,933			-		-		6,962		-
	Consolidated	$	22,554	$	296,945	$	146,104	$	-	$	293,041	$	15,880		$	239,235	$	47,775	$	96,728	$	303,876
	See accompanying report of independent registered public accounting firm.

Schedule_IV_Reinsurance

Schedule IV -Reinsurance	12 Months Ended
	Dec. 31, 2013
Supplemental Schedule of Reinsurance Premiums For Insurance Companies [Abstract]	'
Reinsurance	'
	Schedule IV – Reinsurance
	(In thousands)
	Column A	Column B				Column C			Column D			Column E		Column F
		Gross				Ceded to			Assumed			Net		Percentage
		Amount				Other			From Other			Amount		of Amount
	Year Ended December 31, 2013					Companies			Companies					Assumed to Net
	Life insurance in force	$	-	$	-		$	-		$	-
	Premiums
	Life insurance	$	-	$	-		$	-		$	-
	Accident and health insurance		-		-			-			-
	Property and liability insurance		434,022		76,685			3,204			360,541		0.89		%
	Title Insurance		-		-			-			-
	Total premiums	$	434,022	$	76,685		$	3,204		$	360,541		0.89		%
	Year Ended December 31, 2012
	Life insurance in force	$	-	$	-		$	-		$	-
	Premiums
	Life insurance	$	-	$	-		$	-		$	-
	Accident and health insurance		-		-			-			-
	Property and liability insurance		369,735		54,413			4,114			319,436		1.29		%
	Title Insurance		-		-			-			-
	Total premiums	$	369,735	$	54,413		$	4,114		$	319,436		1.29		%
	Year Ended December 31, 2011
	Life insurance in force	$	-	$	-		$	-		$	-
	Premiums
	Life insurance	$	-	$	-		$	-		$	-
	Accident and health insurance		-		-			-			-
	Property and liability insurance		344,642		57,039			5,438			293,041		1.86		%
	Title Insurance		-		-			-			-
	Total premiums	$	344,642	$	57,039		$	5,438		$	293,041		1.86		%
	See accompanying report of independent registered public accounting firm.

Schedule_VI_Supplemental_Infor

Schedule VI -Supplemental Information Concerning Property-Casualty Insurance Operations	12 Months Ended
	Dec. 31, 2013
Supplemental Information For Property, Casualty Insurance Underwriters [Abstract]	'
Supplemental Information Concerning Property-Casualty Insurance Operations	'
	FINANCIAL STATEMENT SCHEDULES
	Schedule VI - Supplemental Information Concerning Property-Casualty Insurance Operations
	(In thousands)
	Column A	Column B		Column C		Column D		Column E		Column F		Column G		Column H					Column I		Column J		Column K
	Affiliation	Deferred		Reserves		Discount		Unearned		Earned		Net		Claims and Claim					Amortization		Paid		Net Premiums
														Adjustment
	With	Policy		for Unpaid		if any,		Premiums		Premiums		Investment		Expenses Incurred Related to					of Deferred		Claims and		Written
	Registrant	Acquisition		Claims and		Deducted						Income		-1		-2			Policy		Claims
		Costs		Claim Adjustment		In Column C								Current		Prior			Acquisition		Adjustment
				Expenses										Year		Years			Costs		Expenses
	(a) Consolidated
	property-casualty
	Entities
	2013	$	22,586	$	382,640	$	-	$	185,303	$	360,541	$	12,884	$	251,391	$	9,954		$	57,277	$	212,709	$	360,765
	2012	$	24,911	$	313,416	$	-	$	162,502	$	319,436	$	15,293	$	230,089	$	(3,675	)	$	59,805	$	217,483	$	332,489
	2011	$	22,554	$	296,945	$	-	$	146,104	$	293,041	$	15,880	$	222,869	$	16,366		$	47,775	$	206,873	$	303,876
	See accompanying report of independent registered public accounting firm.

Accounting_Policies_Policies

Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

'

General

'

General

Hallmark Financial Services, Inc. (“Hallmark” and, together with subsidiaries, the “Company”, “we,” “us” or “our”) is an insurance holding company engaged in the sale of property/casualty insurance products to businesses and individuals. Our business involves marketing, distributing, underwriting and servicing our insurance products, as well as providing other insurance related services.

We pursue our business activities primarily through subsidiaries whose operations are organized into five business units that are supported by our insurance company subsidiaries. Our Standard Commercial P&C business unit handles commercial insurance products and services and is comprised of American Hallmark Insurance Services, Inc. (“American Hallmark Insurance Services”) and Effective Claims Management, Inc. (“ECM”). Our Workers Compensation business unit specializes in small and middle market workers compensation business and is comprised of TBIC Holding Corporation, Inc. (“TBIC Holding”), Texas Builders Insurance Company (“TBIC”) and TBIC Risk Management (“TBICRM”). The subsidiaries comprising our Workers Compensation business unit were acquired July 1, 2011. Our E&S Commercial business unit handles primarily commercial insurance products and services and is comprised of Hallmark Specialty Underwriters, Inc. (“HSU”), Pan American Acceptance Corporation (“PAAC”) and TGA Special Risk, Inc. (“TGASRI”). Our Hallmark Select business unit offers (i) general aviation insurance products and services, (ii) low and middle market commercial umbrella and excess liability insurance, (iii) medical professional liability insurance products and services, and (iv) satellite launch insurance products. Our Hallmark Select business unit is the combination of our operations previously known as our General Aviation business unit, our Excess & Umbrella business unit, the medical professional liability business previously handled by our E&S Commercial business unit and the satellite launch insurance products previously managed at the parent level. Our Hallmark Select business unit is comprised of Aerospace Insurance Managers, Inc. (“Aerospace Insurance Managers”), Aerospace Special Risk, Inc. (“ASRI”), Aerospace Claims Management Group, Inc. (“ACMG”), Heath XS, LLC (“HXS”) and Hardscrabble Data Solutions, LLC (“HDS”).  Our Personal Lines business unit handles personal insurance products and services and is comprised of American Hallmark General Agency, Inc. and Hallmark Claims Services, Inc. (both of which do business as Hallmark Insurance Company). Our insurance company subsidiaries supporting these business units are American Hallmark Insurance Company of Texas (“AHIC”), Hallmark Insurance Company (“HIC”), Hallmark Specialty Insurance Company (“HSIC”), Hallmark County Mutual Insurance Company (“HCM”), Hallmark National Insurance Company (“HNIC”) and TBIC.

These five business units are segregated into three reportable industry segments for financial accounting purposes. The Standard Commercial Segment includes our Standard Commercial P&C business unit and our Workers Compensation business unit. The Specialty Commercial Segment includes our E&S Commercial business unit and our Hallmark Select business unit, as well as certain specialty risk programs (“Specialty Programs”) which are managed by Hallmark. The Personal Segment presently consists solely of our Personal Lines business unit.

Basis of Presentation

'

Basis of Presentation

The accompanying consolidated financial statements include the accounts and operations of Hallmark and its subsidiaries. Intercompany accounts and transactions have been eliminated. The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) which, as to our insurance company subsidiaries, differ from statutory accounting practices prescribed or permitted for insurance companies by insurance regulatory authorities.

Use of Estimates in the Preparation of Financial Statements

'

Use of Estimates in the Preparation of Financial Statements

Our preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities at the dates of the financial statements and our reported amounts of revenues and expenses during the reporting periods. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. Since future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment may be reflected in the financial statements in future periods.

Fair Value of Financial Instruments

'

Fair Value of Financial Instruments

Fair value estimates are made at a point in time, based on relevant market data as well as the best information available about the financial instruments. Fair value estimates for financial instruments for which no or limited observable market data is available are based on judgments regarding current economic conditions, credit and interest rate risk. These estimates involve significant uncertainties and judgments and cannot be determined with precision. As a result, such calculated fair value estimates may not be realizable in a current sale or immediate settlement of the instrument. In addition, changes in the underlying assumptions used in the fair value measurement technique, including discount rate and estimates of future cash flows, could significantly affect these fair value estimates.

Cash and Cash Equivalents: The carrying amounts reported in the balance sheet for these instruments approximate their fair values.

Restricted Cash: The carrying amount for restricted cash reported in the balance sheet approximates the fair value.

Revolving Credit Facility Payable: The carrying value of our bank revolving credit facility approximates the fair value based on the current interest rate.

Subordinated debt securities: Our trust preferred securities are reported at carry value of $56.7 million and $56.7 million, and have a fair value of $53.2 million and $48.2 million, as of December 31, 2013 and 2012, respectively. The fair value of our trust preferred securities is based on discounted cash flows using current yields to maturity of 8.0% and 8.0% as of December 31, 2013 and 2012, respectively, which are based on similar issues to discount future cash flows and would be included in Level 3 of the fair value hierarchy if they were reported at fair value.

For reinsurance balances, premiums receivable, federal income tax payable, other assets and other liabilities, the carrying amounts approximate fair value because of the short maturity of such financial instruments.

Investments

'

Investments

Debt and equity securities available for sale are reported at fair value. Unrealized gains and losses are recorded as a component of stockholders’ equity, net of related tax effects. Equity securities that are determined to have other-than-temporary impairment are recognized as a loss on investments in the consolidated statements of operations. Debt securities that are determined to have other-than-temporary impairment are recognized as a loss on investments in the consolidated statements of operations for the portion that is related to credit deterioration with the remaining portion recognized in other comprehensive income. Debt security premiums and discounts are amortized into earnings using the effective interest method. Maturities of debt securities and sales of equity securities are recorded in receivable for securities until the cash is settled. Purchases of debt and equity securities are recorded in payable for securities until the cash is settled.

Realized investment gains and losses are recognized in operations on the specific identification method.

Cash and Cash Equivalents

'

Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Restricted Cash

'

Restricted Cash

We collect premiums from customers and, after deducting authorized commissions, remit these premiums to the Company’s consolidated insurance subsidiaries. Unremitted insurance premiums are held in a fiduciary capacity until disbursed to the Company’s consolidated insurance subsidiaries.

Premiums Receivable

'

Premiums Receivable

Premiums receivable represent amounts due from policyholders or independent agents for premiums written and uncollected. These balances are carried at net realizable value.

Reinsurance

'

Reinsurance

We are routinely involved in reinsurance transactions with other companies. Reinsurance premiums, losses and loss adjustment expenses (“LAE”) are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. (See Note 7.)

Deferred Policy Acquisition Costs

'

Deferred Policy Acquisition Costs

Policy acquisition costs (mainly commission, underwriting and marketing expenses) that are directly related to the successful acquisition of new and renewal insurance contracts are deferred and charged to operations over periods in which the related premiums are earned. The method followed in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated realizable value. In determining estimated realizable value, the computation gives effect to the premium to be earned, expected investment income, losses and LAE and certain other costs expected to be incurred as the premiums are earned. If the computation results in an estimated net realizable value less than zero, a liability will be accrued for the premium deficiency. During 2013, 2012 and 2011, we deferred $55.0 million, $62.2 million and $49.4 million of policy acquisition costs and amortized $57.3 million, $59.8 million and $47.8 million of deferred policy acquisition costs, respectively. Therefore, the net (amortization) deferrals of policy acquisition costs were ($2.3) million, $2.4 million and $1.6 million for 2013, 2012 and 2011, respectively.

Business Combinations

'

Business Combinations

We account for business combinations using the acquisition method of accounting pursuant to Accounting Standards Codification (“ASC”) 805, “Business Combinations.” The base cash purchase price plus the estimated fair value of any non-cash or contingent consideration given for an acquired business is allocated to the assets acquired (including identified intangible assets) and liabilities assumed based on the estimated fair values of such assets and liabilities. The excess of the fair value of the total consideration given for an acquired business over the aggregate net fair values assigned to the assets acquired and liabilities assumed is recorded as goodwill. Contingent consideration is recognized as a liability at fair value as of the acquisition date with subsequent fair value adjustments recorded in the consolidated statements of operations. The valuation of contingent consideration requires assumptions regarding anticipated cash flows, probabilities of cash flows, discount rates and other factors. Significant judgment is employed in determining the propriety of these assumptions as of the acquisition date and for each subsequent period. Accordingly, future business and economic conditions, as well as changes in any of the assumptions, can materially impact the amount of contingent consideration expense we record in any given period. Indirect and general expenses related to business combinations are expensed as incurred.

Goodwill and Intangible Assets, net

'

Goodwill and Intangible Assets, net

We account for our goodwill and intangible assets according to ASC 350, “Intangibles – Goodwill and Other.” ASC 350 (1) prohibits the amortization of goodwill and indefinite-lived intangible assets, (2) requires testing of goodwill and indefinite-lived intangible assets on an annual basis for impairment (and more frequently if the occurrence of an event or circumstance indicates an impairment), (3) requires testing of definite-lived intangible assets if the occurrence of an event or circumstances indicates an impairment, (4) requires that reporting units be identified for the purpose of assessing potential future impairments of goodwill, and (5) removes the forty-year limitation on the amortization period of intangible assets that have finite lives.  We have elected to perform our goodwill impairment test on the first day of the fourth quarter, October 1, of each year.

Leases

'

Leases

We have several leases, primarily for office facilities and computer equipment, which expire in various years through 2022. Some of these leases include rent escalation provisions throughout the term of the lease. We expense the average annual cost of the lease with the difference to the actual rent invoices recorded as deferred rent which is classified in accounts payable and other accrued expenses on our consolidated balance sheets.

Property and Equipment

'

Property and Equipment

Property and equipment (including leasehold improvements), aggregating $14.7 million and $13.6 million, at December 31, 2013 and 2012, respectively, which is included in other assets, is recorded at cost and is depreciated using the straight-line method over the estimated useful lives of the assets (three to ten years). Depreciation expense for 2013, 2012 and 2011 was $1.2 million, $1.2 million and $1.5 million, respectively. Accumulated depreciation was $12.6 million and $11.4 million at December 31, 2013 and 2012, respectively.

Variable Interest Entities

'

Variable Interest Entities

On June 21, 2005, we formed Hallmark Statutory Trust I (“Trust I”), an unconsolidated trust subsidiary, for the sole purpose of issuing $30.0 million in trust preferred securities. Trust I used the proceeds from the sale of these securities and our initial capital contribution to purchase $30.9 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust I, and the payments under the debt securities are the sole revenues of Trust I.

On August 23, 2007, we formed Hallmark Statutory Trust II (“Trust II”), an unconsolidated trust subsidiary, for the sole purpose of issuing $25.0 million in trust preferred securities. Trust II used the proceeds from the sale of these securities and our initial capital contribution to purchase $25.8 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust II, and the payments under the debt securities are the sole revenues of Trust II.

We evaluate on an ongoing basis our investments in Trust I and Trust II (collectively, (the “Trusts”)) and we do not have variable interests in the Trusts. Therefore, the Trusts are not consolidated in our consolidated financial statements.

We are also involved in the normal course of business with variable interest entities primarily as a passive investor in mortgage-backed securities and certain collateralized corporate bank loans issued by third party variable interest entities. The maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the consolidated balance sheets.

Losses and Loss Adjustment Expenses

'

Losses and Loss Adjustment Expenses

Losses and LAE represent the estimated ultimate net cost of all reported and unreported losses incurred through December 31, 2013, 2012 and 2011. The reserves for unpaid losses and LAE are estimated using individual case-basis valuations and statistical analyses. These estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in such estimates, we believe that the reserves for unpaid losses and LAE are adequate. The estimates are continually reviewed and adjusted as experience develops or new information becomes known. Such adjustments are included in current operations.

Redeemable Non-Controlling Interest

'

Redeemable Non-Controlling Interest

We accreted the redeemable non-controlling interest to its redemption value from the date of issuance to the redemption date using the interest method. Changes in redemption value were considered a change in accounting estimate. We followed the two class method of computing earnings per share. We treated only the portion of the periodic adjustment to the redeemable non-controlling interest carrying amount that reflects a redemption in excess of fair value as being akin to an actual dividend. Effective September 30, 2012, we exercised our call option and acquired the remaining 20% membership interests in the subsidiaries for $1.7 million.

Activity related to non-controlling interest for the years ended December 31, 2013 and 2012 is as follows (in thousands):

2013

2012

Beginning balance

$

-

$

1,284

Accretion of redeemable non-controlling interest

-

392

Net income attributable to non-controlling interest

-

324

Distribution to non-controlling interest

-

(281

)

Redemption of non-controlling interest

-

(1,700

)

Other

-

(19

)

Ending balance

$

-

$

-

Recognition of Premium Revenues

'

Recognition of Premium Revenues

Insurance premiums are earned pro rata over the terms of the policies. Insurance policy fees are earned as of the effective date of the policy. Upon cancellation, any unearned premium is refunded to the insured. Insurance premiums written include gross policy fees of $13.2 million, $11.8 million and $13.5 million for the years ended December 31, 2013, 2012, and 2011, respectively. Insurance premiums on monthly reporting workers’ compensation policies are earned on the conclusion of the monthly coverage period. Deposit premiums for workers’ compensation policies are earned upon the expiration of the policy.

Finance Charges

'

Finance Charges

We receive premium installment fees for each direct bill payment from policyholders. Installment fee income is classified as finance charges on the consolidated statement of operations and is recognized as the fee is invoiced.

Relationship with Third Party Insurers

'

Relationship with Third Party Insurers

Through December 31, 2005, our Standard Commercial P&C business unit marketed policies on behalf of Clarendon National Insurance Company (“Clarendon”), a third-party insurer. Through December 31, 2008, all business of our E&S Commercial business unit was produced under a fronting agreement with member companies of the Republic Group (“Republic”), a third-party insurer. These insurance contracts on third party paper are accounted for under agency accounting. Ceding commissions and other fees received under these arrangements were classified as unearned commission revenue until earned pro rata over the terms of the policies.

Recognition of Commission Revenues of Our Standard and Specialty Commercial Segments

'

Profit sharing commission is calculated and recognized when the loss ratio, as determined by a qualified actuary, deviates from contractual targets. We received a provisional commission as policies were produced as an advance against the later determination of the profit sharing commission actually earned. The profit sharing commission is an estimate that varies with the estimated loss ratio and is sensitive to changes in that estimate.  Profit share commission is classified as commissions and fees on the consolidated statement of operations

The following table details the profit sharing commission provisional loss ratio compared to the estimated ultimate loss ratio for each effective quota share treaty between the Standard Commercial P&C business unit and Clarendon.

Treaty Effective Dates

7/1/01

7/1/02

7/1/03

7/1/04

Provisional loss ratio

60.0

%

59.0

%

59.0

%

64.2

%

Estimated ultimate loss ratio recorded to at December 31, 2013

63.5

%

64.5

%

60.9

%

63.7

%

As of December 31, 2013, we had a net receivable of $0.1 million on these profit share treaties. The payable or receivable is the difference between the cash received to date and the recognized commission revenue based on the estimated ultimate loss ratio.

The following table details the profit sharing commission revenue provisional loss ratio compared to the estimated ultimate loss ratio for the effective quota share treaty between the E&S Commercial business unit and Republic.

Treaty Effective Dates

1/1/06

1/1/07

1/1/08

Provisional loss ratio

65.0

%

65.0

%

65.0

%

Estimated ultimate loss ratio recorded to at December 31, 2013

58.6

%

63.2

%

59.0

%

As of December 31, 2013, we had a net payable of $1.2 million on these profit share treaties.  The payable or receivable is the difference between the cash received to date and the recognized commission revenue based on the estimated ultimate loss ratio.

Agent Commissions

'

Agent Commissions

We pay monthly commissions to agents based on written premium produced, but generally recognize the expense pro rata over the term of the policy. If the policy is cancelled prior to its expiration, the unearned portion of the agent commission is refundable to us. The unearned portion of commissions paid to agents is included in deferred policy acquisition costs. Commission expenses related to the insurance policies issued by our Hallmark Select business unit for third party insurance carriers and not assumed by our insurance company subsidiaries are recognized as of the effective date of the policy.

We annually pay a profit sharing commission to our independent agency force based upon the results of the business produced by each agent. We estimate and accrue this liability to commission expense in the year the business is produced.

Commission expense is classified as other operating expenses in the consolidated statement of operations.

Income Taxes

'

Income Taxes

We file a consolidated federal income tax return. Deferred federal income taxes reflect the future tax consequences of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end. Deferred taxes are recognized using the liability method, whereby tax rates are applied to cumulative temporary differences based on when and how they are expected to affect the tax return. Deferred tax assets and liabilities are adjusted for tax rate changes in effect for the year in which these temporary differences are expected to be recovered or settled.

Earnings Per Share

'

Earnings Per Share

The computation of earnings per share is based upon the weighted average number of common shares outstanding during the period plus the effect of common shares potentially issuable (in periods in which they have a dilutive effect), primarily from stock options. (See Notes 11 and 13.)

Adoption of New Accounting Pronouncements

'

Adoption of New Accounting Pronouncements

In January 2013, we adopted new guidance issued by the Financial Accounting Standards Board (“FASB”) related to reporting and disclosure requirements about changes in accumulated other comprehensive income balances and reclassifications out of accumulated other comprehensive income. The new guidance is effective prospectively for fiscal and interim periods beginning after December 15, 2012. The adoption of this guidance did not have a material impact on our financial position or results of operations but did require additional disclosures.

Accounting_Policies_Tables

Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
Activity Related to Non-Controlling Interest	'
	Activity related to non-controlling interest for the years ended December 31, 2013 and 2012 is as follows (in thousands):
		2013				2012
	Beginning balance	$	-			$	1,284
	Accretion of redeemable non-controlling interest		-				392
	Net income attributable to non-controlling interest		-				324
	Distribution to non-controlling interest		-				(281	)
	Redemption of non-controlling interest		-				(1,700	)
	Other		-				(19	)
	Ending balance	$	-			$	-
Schedule of Profit Sharing Commission	'
	The following table details the profit sharing commission provisional loss ratio compared to the estimated ultimate loss ratio for each effective quota share treaty between the Standard Commercial P&C business unit and Clarendon.
		Treaty Effective Dates
		7/1/01			7/1/02				7/1/03			7/1/04
	Provisional loss ratio	60.0	%		59.0	%			59.0	%		64.2	%
	Estimated ultimate loss ratio recorded to at December 31, 2013	63.5	%		64.5	%			60.9	%		63.7	%
	The following table details the profit sharing commission revenue provisional loss ratio compared to the estimated ultimate loss ratio for the effective quota share treaty between the E&S Commercial business unit and Republic.
		Treaty Effective Dates
		1/1/06				1/1/07				1/1/08
	Provisional loss ratio		65.0	%			65.0	%			65.0	%
	Estimated ultimate loss ratio recorded to at December 31, 2013		58.6	%			63.2	%			59.0	%

Investments_Tables

Investments (Tables)	12 Months Ended
	Dec. 31, 2013
Investments [Abstract]	'
Amortized Cost and Estimated Fair Value of Investments in Debt and Equity Securities	'
	The amortized cost and estimated fair value of investments in debt and equity securities by category is as follows (in thousands):
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	As of December 31, 2013	Cost			Gains			Losses			Value
	U.S. Treasury securities and obligations of U.S. Government	$	78,894		$	24		$	(165	)	$	78,753
	Corporate bonds		42,946			1,379			(450	)		43,875
	Collateralized corporate bank loans		102,053			614			(489	)		102,178
	Municipal bonds		156,950			2,577			(1,975	)		157,552
	Mortgage-backed		27,784			460			(507	)		27,737
	Total debt securities		408,627			5,054			(3,586	)		410,095
	Total equity securities		24,902			26,642			(314	)		51,230
	Total debt and equity securities	$	433,529		$	31,696		$	(3,900	)	$	461,325
	As of December 31, 2012
	U.S. Treasury securities and obligations of U.S. Government	$	40,050		$	14		$	(3	)	$	40,061
	Corporate bonds		79,516			2,794			(763	)		81,547
	Collateralized corporate bank loans		106,093			1,021			(743	)		106,371
	Municipal bonds		162,479			4,023			(2,770	)		163,732
	Mortgage-backed		9,662			97			(35	)		9,724
	Total debt securities		397,800			7,949			(4,314	)		401,435
	Total equity securities		31,502			12,938			(515	)		43,925
	Total debt and equity securities	$	429,302		$	20,887		$	(4,829	)	$	445,360
Major Categories of Investment Income	'
	Major categories of net investment income are summarized as follows (in thousands):
		Twelve Months Ended
		31-Dec
		2013			2012			2011
	U.S. Treasury securities and obligations of U.S. Government	$	143		$	53		$	115
	Corporate bonds		2,341			4,218			3,851
	Collateralized corporate bank loans		4,653			5,261			5,284
	Municipal bonds		5,245			5,616			6,632
	Mortgage-backed		737			106			86
	Equity securities		484			534			484
	Cash and cash equivalents		157			246			163
			13,760			16,034			16,615
	Investment expenses		(876	)		(741	)		(735	)
	Investment income, net of expenses	$	12,884		$	15,293		$	15,880
Major Categories of Net Realized Gains on Investments	'
	Major categories of net realized gains on investments are summarized as follows (in thousands):
		Twelve Months Ended
		31-Dec
		2013			2012			2011
	U.S. Treasury securities and obligations of U.S. Government	$	-		$	-		$	35
	Corporate bonds		853			13			300
	Collateralized corporate bank loans		373			391			699
	Municipal bonds		(156	)		(441	)		(500	)
	Equity securities		9,470			2,226			3,099
	Net realized gain		10,540			2,189			3,633
	Other-than-temporary impairments		-			(246	)		-
	Gain on investments	$	10,540		$	1,943		$	3,633
Summary of Gross Unrealized Loss Position	'
	The following schedules summarize the gross unrealized losses showing the length of time that investments have been continuously in an unrealized loss position as of December 31, 2013 and December 31, 2012 (in thousands):
		As of December 31, 2013
		12 months or less						Longer than 12 months						Total
		Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value		Unrealized Losses
	U.S. Treasury securities and
	obligations of U.S. Government	$	47,162		$	(165	)	$	-		$	-		$	47,162	$	(165	)
	Corporate bonds		5,649			(56	)		4,421			(394	)		10,070		(450	)
	Collateralized corporate bank loans		23,026			(422	)		6,968			(67	)		29,994		(489	)
	Municipal bonds		35,719			(413	)		34,684			(1,562	)		70,403		(1,975	)
	Mortgage-backed		1,383			(229	)		4,840			(278	)		6,223		(507	)
	Total debt securities		112,939			(1,285	)		50,913			(2,301	)		163,852		(3,586	)
	Total equity securities		316			(2	)		2,721			(312	)		3,037		(314	)
	Total debt and equity securities	$	113,255		$	(1,287	)	$	53,634		$	(2,613	)	$	166,889	$	(3,900	)
		As of December 31, 2012
		12 months or less						Longer than 12 months						Total
		Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value		Unrealized Losses
	U.S. Treasury securities and
	obligations of U.S. Government	$	23,998		$	(3	)	$	-		$	-		$	23,998	$	(3	)
	Corporate bonds		10,802			(38	)		6,910			(725	)		17,712		(763	)
	Collateralized corporate bank loans		6,273			(97	)		14,236			(646	)		20,509		(743	)
	Municipal bonds		30,073			(362	)		28,809			(2,408	)		58,882		(2,770	)
	Mortgage-backed		7,367			(32	)		84			(3	)		7,451		(35	)
	Total debt securities		78,513			(532	)		50,039			(3,782	)		128,552		(4,314	)
	Total equity securities		3,363			(515	)		-			-			3,363		(515	)
	Total debt and equity securities	$	81,876		$	(1,047	)	$	50,039		$	(3,782	)	$	131,915	$	(4,829	)
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities	'
	The amortized cost and estimated fair value of debt securities at December 31, 2013 by contractual maturity are as follows. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties.
		Amortized			Fair
		Cost			Value
		(in thousands)
	Due in one year or less	$	71,490		$	71,969
	Due after one year through five years		162,203			163,006
	Due after five years through ten years		107,915			108,761
	Due after ten years		39,235			38,622
	Mortgage-backed		27,784			27,737
		$	408,627		$	410,095

Fair_Value_Tables

Fair Value (Tables)	12 Months Ended
	Dec. 31, 2013
Fair Value [Abstract]	'
Fair Value of Assets Measured on a Recurring Basis	'
	The following table presents for each of the fair value hierarchy levels, our assets that are measured at fair value on a recurring basis at December 31, 2013 and December 31, 2012 (in thousands).
		As of December 31, 2013
		Quoted Prices in			Other
		Active Markets for			Observable			Unobservable
		Identical Assets			Inputs			Inputs
		(Level 1)			(Level 2)			(Level 3)		Total
	U.S. Treasury securities and obligations of U.S. Government	$	-		$	78,753		$	-	$	78,753
	Corporate bonds		-			43,875			-		43,875
	Collateralized corporate bank loans		-			101,585			593		102,178
	Municipal bonds		-			140,628			16,924		157,552
	Mortgage-backed		-			27,737			-		27,737
	Total debt securities		-			392,578			17,517		410,095
	Total equity securities		51,230			-			-		51,230
	Total debt and equity securities	$	51,230		$	392,578		$	17,517	$	461,325
		As of December 31, 2012
		Quoted Prices in			Other
		Active Markets for			Observable			Unobservable
		Identical Assets			Inputs			Inputs
		(Level 1)			(Level 2)			(Level 3)		Total
	U.S. Treasury securities and obligations of U.S. Government	$	-		$	40,061		$	-	$	40,061
	Corporate bonds		-			81,547			-		81,547
	Collateralized corporate bank loans		-			105,463			908		106,371
	Municipal bonds		-			144,972			18,760		163,732
	Mortgage-backed		-			9,724			-		9,724
	Total debt securities		-			381,767			19,668		401,435
	Total equity securities		43,925			-			-		43,925
	Total debt and equity securities	$	43,925		$	381,767		$	19,668	$	445,360
Fair Value, Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3)	'
	The following table summarizes the changes in fair value for all financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the year ended December 31, 2013 and 2012 (in thousands).
		2013			2012
	Beginning balance as of January 1	$	19,668		$	20,608
	Sales		(3,157	)		(429	)
	Settlements		-			-
	Purchases		-			-
	Issuances		-			-
	Total realized/unrealized gains included in net income		-			-
	Net gains (losses) included in other comprehensive income		1,006			(511	)
	Transfers into Level 3		-			-
	Transfers out of Level 3		-			-
	Ending balance as of December 31	$	17,517		$	19,668

Goodwill_and_Intangible_Assets1

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2013
Goodwill and Intangible Assets [Abstract]	'
Schedule of Acquired Intangible Assets by Major Category	'
	We have obtained various intangible assets from several acquisitions since 2002. The table below details the gross and net carrying amounts of these assets by major category (in thousands):
			December 31,
			2013			2012
	Gross Carrying Amount:
	Customer/agent relationships		$	32,177		$	32,177
	Tradename			3,440			3,440
	Management agreement			3,232			3,232
	Non-compete & employment agreements			4,235			4,235
	Insurance licenses			1,300			1,300
	Total gross carrying amount			44,384			44,384
	Accumulated Amortization:
	Customer/agent relationships			(15,322	)		(13,084	)
	Tradename			(1,700	)		(1,471	)
	Management agreement			(3,232	)		(2,895	)
	Non-compete & employment agreements			(4,177	)		(3,866	)
	Total accumulated amortization			(24,431	)		(21,316	)
	Total net carrying amount		$	19,953		$	23,068
Schedule of Estimated Aggregate Amortization Expense for Definite-Lived Intangible Assets	'
	The estimated aggregate amortization expense for definite-lived intangible assets for the next five years is as follows (in thousands):
	2014		$	2,526
	2015		$	2,468
	2016		$	2,468
	2017		$	2,468
	2018		$	2,468
Schedule of Weighted Average Amortization Period for Definite Lived Intangible Assets by Major Cass	'
	The weighted average amortization period for definite-lived intangible assets by major class is as follows:
		Years
	Tradename	15
	Customer relationships	15
	Management agreement	4
	Non-compete agreements	5

Other_Assets_Tables

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2013
Other Assets [Abstract]	'
Schedule of Other Assets	'
	The following table details our other assets as of December 31, 2013 and 2012 (in thousands):
		2013		2012
	Profit sharing commission receivable	$	641	$	2,083
	Accrued investment income		3,030		3,568
	Debt issuance costs		1,156		1,207
	Investment in unconsolidated trust subsidiaries		1,702		1,702
	Fixed assets		1,773		2,284
	Other assets		110		141
		$	8,412	$	10,985

Reserves_for_Unpaid_Losses_and1

Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables)	12 Months Ended
	Dec. 31, 2013
Reserves for Unpaid Losses and Loss Adjustment Expenses [Abstract]	'
Activity in the Reserves for Unpaid Losses and Loss Adjustment Expense	'
	Activity in the reserves for unpaid losses and LAE is summarized as follows (in thousands):
		2013		2012			2011
	Balance at January 1	$	313,416	$	296,945		$	251,677
	Less reinsurance recoverable		49,584		42,044			37,954
	Net Balance at January 1		263,832		254,901			213,723
	Acquisition of subsidiaries effective July 1		-		-			8,816
	Incurred related to:
	Current year		251,391		230,089			222,869
	Prior years		9,954		(3,675	)		16,366
	Total incurred		261,345		226,414			239,235
	Paid related to:
	Current year		101,897		107,945			101,025
	Prior years		110,812		109,538			105,848
	Total paid		212,709		217,483			206,873
	Net Balance at December 31		312,468		263,832			254,901
	Plus reinsurance recoverable		70,172		49,584			42,044
	Balance at December 31	$	382,640	$	313,416		$	296,945

Reinsurance_Tables

Reinsurance (Tables)	12 Months Ended
	Dec. 31, 2013
Reinsurance [Abstract]	'
Schedule of Reinsurance Ceded and Recoveries	'
	The following table presents our gross and net premiums written and earned and reinsurance recoveries for each of the last three years (in thousands):
		2013			2012			2011
	Premium Written :
	Direct	$	458,020		$	385,624		$	350,089
	Assumed		2,007			4,218			4,792
	Ceded		(99,262	)		(57,353	)		(51,005	)
		$	360,765		$	332,489		$	303,876
	Premium Earned:
	Direct	$	434,022		$	369,735		$	344,642
	Assumed		3,204			4,114			5,438
	Ceded		(76,685	)		(54,413	)		(57,039	)
		$	360,541		$	319,436		$	293,041
	Reinsurance recoveries	$	45,456		$	29,014		$	32,941

Segment_Information_Tables

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2013
Segment Information [Abstract]	'
Schedule of Segment Reporting, by Segment	'
	The following is additional business segment information for the twelve months ended December 31, 2013, 2012 and 2011 (in thousands):
		2013			2012			2011
	Revenues
	Standard Commercial Segment	$	83,306		$	73,119		$	72,830
	Specialty Commercial Segment		229,734			178,917			142,838
	Personal Segment		71,081			89,149			101,351
	Corporate		5,307			615			5,752
	Consolidated	$	389,428		$	341,800		$	322,771
	Depreciation and Amortization Expense
	Standard Commercial Segment	$	201		$	186		$	174
	Specialty Commercial Segment		2,896			2,892			3,293
	Personal Segment		1,111			1,230			1,431
	Corporate		92			113			166
	Consolidated	$	4,300		$	4,421		$	5,064
	Interest Expense
	Standard Commercial Segment	$	-		$	-		$	-
	Specialty Commercial Segment		-			-			-
	Personal Segment		-			-			-
	Corporate		4,599			4,634			4,631
	Consolidated	$	4,599		$	4,634		$	4,631
	Tax Expense (Benefit)
	Standard Commercial Segment	$	312		$	372		$	(376	)
	Specialty Commercial Segment		3,613			1,875			4,454
	Personal Segment		(398	)		(968	)		(13,991	)
	Corporate		(692	)		(1,753	)		959
	Consolidated	$	2,835		$	(474	)	$	(8,954	)
	Pre-tax Income (Loss), net of non-controlling interest
	Standard Commercial Segment	$	1,980		$	(2,486	)	$	1,335
	Specialty Commercial Segment		19,527			25,932			14,348
	Personal Segment		(3,416	)		(8,535	)		(29,647	)
	Corporate		(7,011	)		(11,861	)		(5,881	)
	Consolidated	$	11,080		$	3,050		$	(19,845	)
Schedule of Segment Reporting Additional Information by Segment	'
	The following is additional business segment information as of the following dates (in thousands):
		December 31,
		2013			2012
	Assets
	Standard Commercial Segment	$	142,143		$	145,162
	Specialty Commercial Segment		536,894			432,208
	Personal Segment		210,825			200,356
	Corporate		19,161			12,742
	Consolidated	$	909,023		$	790,468

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2013
Earnings Per Share [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted	'
	A reconciliation of the numerators and denominators of the basic and diluted per share calculations is presented below (in thousands, except per share amounts):
	)
		2013		2012			2011
	Numerator for both basic and diluted earnings per share:
	Net income (loss) attributable to Hallmark Financial Services, Inc.	$	8,245		$	3,524		$	(10,891	)
	Denominator, basic shares		19,263			19,263			19,673
	Effect of dilutive securities:
	Stock-based compensation awards		98			6			-
	Denominator, diluted shares		19,361			19,269			19,673
	Basic earnings per share:	$	0.43		$	0.18		$	(0.55	)
	Diluted earnings per share:	$	0.43		$	0.18		$	(0.55	)

Sharebased_Payment_Arrangement1

Share-based Payment Arrangements (Tables)	12 Months Ended
	Dec. 31, 2013
Share-based Payment Arrangements [Abstract]	'
Summary of the Status of Stock Options	'
	A summary of the status of our stock options as of December 31, 2013 and changes during the year then ended is presented below:
						Weighted		Remaining		Aggregate
						Average		Contractual		Intrinsic
			Number of			Exercise		Term		Value
			Shares			Price		(Years)		$0
	Outstanding at January 1, 2013			1,404,989		$	9.63
	Granted			-
	Exercised			-
	Forfeited or expired			(17,500	)	$	7.58
	Outstanding at December 31, 2013			1,387,489		$	9.66		4.2	$	1,329
	Exercisable at December 31, 2013			1,181,417		$	10.19		4	$	866
Schedule of Options, Grants in Period, Grant Date Intrinsic Value	'
	The following table details the intrinsic value of options exercised, total cost of share-based payments charged against income before income tax benefit and the amount of related income tax benefit recognized in income for the periods indicated (in thousands):
			2013			2012		2011
	Intrinsic value of options exercised		$	-		$	-	$	4
	Cost of share-based payments (non-cash)		$	207		$	380	$	709
	Income tax benefit of share-based payments recognized in income		$	30		$	38	$	30
Schedule of Nonvested Restricted Stock Units Activity	'
	A summary of the status of our restricted stock units as of December 31, 2013 and changes during the year then ended is presented below:
		Number of
		Restricted
		Stock Units
	Nonvested at January 1, 2013	-
	Granted	243,006
	Vested	-
	Forfeited	-6,155
	Nonvested at December 31, 2013	236,851

Retirement_Plans_Tables

Retirement Plans (Tables)	12 Months Ended
	Dec. 31, 2013
Retirement Plans [Abstract]	'
Changes in Benefit Obligations, Components of Benefit Costs, Weighted-Average Assumptions, and Plan Assets	'
	The following tables provide detail of the changes in benefit obligations, components of benefit costs, weighted-average assumptions, and plan assets for the retirement plan as of and for the twelve months ending December 31, 2013, 2012 and 2011 (in thousands) using a measurement date of December 31.
	4
		2013			2012			2011
	Assumptions (end of period):
	Discount rate used in determining benefit obligation		4.49	%		3.89	%		4.5	%
	Rate of compensation increase		N/A			N/A			N/A
	Reconciliation of funded status (end of period):
	Accumulated benefit obligation	$	(12,284	)	$	(13,439	)	$	(12,990	)
	Projected benefit obligation	$	(12,284	)	$	(13,439	)	$	(12,990	)
	Fair value of plan assets		10,851			9,754			9,019
	Funded status	$	(1,433	)	$	(3,685	)	$	(3,971	)
	Net actuarial loss		(2,277	)		(4,545	)		(4,582	)
	Accumulated other comprehensive loss		(2,277	)		(4,545	)		(4,582	)
	Prepaid pension cost		844			860			611
	Net amount recognized as of December 31	$	(1,433	)	$	(3,685	)	$	(3,971	)
	Changes in projected benefit obligation:
	Benefit obligation as of beginning of period	$	13,439		$	12,990		$	12,050
	Interest cost		505			564			609
	Actuarial liability (gain)/loss		(824	)		700			1,160
	Benefits paid		(836	)		(815	)		(829	)
	Benefit obligation as of end of period	$	12,284		$	13,439		$	12,990
	Change in plan assets:
	Fair value of plan assets as of beginning of period	$	9,754		$	9,019		$	9,217
	Actual return on plan assets (net of expenses)		1,565			839			(4	)
	Employer contributions		368			711			635
	Benefits paid		(836	)		(815	)		(829	)
	Fair value of plan assets as of end of period	$	10,851		$	9,754		$	9,019
	Net periodic pension cost:
	Service cost - benefits earned during the period	$	-		$	-		$	-
	Interest cost on projected benefit obligation		505			564			609
	Expected return on plan assets		(615	)		(584	)		(590	)
	Recognized actuarial loss		495			482			287
	Net periodic pension cost	$	385		$	462		$	306
	Discount rate		3.89	%		4.5	%		5.25	%
	Expected return on plan assets		6.5	%		6.5	%		6.5	%
	Rate of compensation increase		N/A			N/A			N/A
Estimated Future Benefit Payments	'
	Estimated future benefit payments by fiscal year (in thousands):
	4
	2014	$	889
	2015	$	897
	2016	$	885
	2017	$	884
	2018	$	878
	2019-2023	$	4,170
Weighted-Average Asset Allocation for the Defined Benefit Cash Balance Plan	'
	The following table shows the weighted-average asset allocation for the defined benefit cash balance plan held as of December 31, 2013 and 2012.
		12/31/13			12/31/12
	Asset Category:
	Fixed income securities		32	%		33	%
	Equity securities		65	%		63	%
	Other		3	%		4	%
	Total		100	%		100	%
Schedule of Fair Value, Assets Measured on Recurring Basis	'
	The following table presents, for each of the fair value hierarchy levels, our plan assets that are measured at fair value on a recurring basis at December 31, 2013 and December 31, 2012 (in thousands).
		As of December 31, 2013
		Quoted Prices in			Other
		Active Markets for			Observable			Unobservable
		Identical Assets			Inputs			Inputs
		(Level 1)			(Level 2)			(Level 3)			Total
	Debt securities	$	-		$	3,448		$	-		$	3,448
	Equity securities		7,080			-			-			7,080
	Total	$	7,080		$	3,448		$	-		$	10,528
		As of December 31, 2012
		Quoted Prices in			Other
		Active Markets for			Observable			Unobservable
		Identical Assets			Inputs			Inputs
		(Level 1)			(Level 2)			(Level 3)			Total
	Debt securities	$	-		$	3,188		$	-		$	3,188
	Equity securities		6,153			-			-			6,153
	Total	$	6,153		$	3,188		$	-		$	9,341

Income_Taxes_Tables

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2013
Income Taxes [Abstract]	'
Schedule of Deferred Tax Assets and Liabilities	'
	The composition of deferred tax assets and liabilities and the related tax effects as of December 31, 2013 and 2012, are as follows (in thousands):
		2013			2012
	Deferred tax liabilities:
	Deferred policy acquisition costs	$	(7,905	)	$	(8,719	)
	Net unrealized holding gain on investments		(9,730	)		(5,622	)
	Agency relationship		(85	)		(94	)
	Intangible assets		(6,129	)		(6,852	)
	Goodwill		(325	)		(116	)
	Fixed assets		(499	)		(685	)
	Other		(263	)		(275	)
	Total deferred tax liabilities		(24,936	)		(22,363	)
	Deferred tax assets:
	Unearned premiums		9,822			9,806
	Alternative minimum tax		442			1,651
	Amortization of non-compete agreements		417			476
	Pension liability		797			1,591
	Net operating loss carry-forward		611			702
	Unpaid loss and loss adjustment expense		8,173			7,549
	Rent reserve		366			363
	Investment impairments		660			1,256
	Other		823			909
	Total deferred tax assets		22,111			24,303
	Deferred federal income taxes, net	$	(2,825	)	$	1,940
Schedule of Effective Income Tax Rate Reconciliation	'
	A reconciliation of the income tax provisions based on the statutory tax rate to the provision reflected in the consolidated financial statements for the years ended December 31, 2013, 2012 and 2011, is as follows (in thousands):
		2013			2012			2011
	Computed expected income tax expense (benefit) at statutory regulatory tax rate	$	3,878		$	1,181		$	(6,926	)
	Meals and entertainment		25			28			44
	Tax exempt interest		(1,314	)		(1,631	)		(1,835	)
	Dividends received deduction		(101	)		(111	)		(99	)
	State taxes (net of federal benefit)		276			298			84
	Other		71			(239	)		(222	)
	Income tax expense (benefit)	$	2,835		$	(474	)	$	(8,954	)
	Current income tax expense (benefit)	$	3,092		$	2,377		$	(6,059	)
	Deferred tax benefit		(257	)		(2,851	)		(2,895	)
	Income tax expense (benefit)	$	2,835		$	(474	)	$	(8,954	)
Summary of Operating Loss Carryforwards	'
	The net operating losses will expire if unused, as follows (in thousands):
	Year
	2021	$	650
	2022		878
	2028		2
	2030		25
	2031		45
	2032		77
	2033		70
		$	1,747

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2013
Commitments and Contingencies [Abstract]	'
Schedule of Future Minimum Rental Payments for Operating Leases	'
	Future minimum lease payments under non-cancelable operating leases as of December 31, 2013 are as follows (in thousands):
	4
	Year
	2014	$	1,987
	2015		1,969
	2016		1,641
	2017		1,484
	2018		1,193
	2019 and thereafter		3,166
	Total minimum lease payments	$	11,440

Changes_in_Accumulated_Other_C1

Changes in Accumulated Other Comprehensive Income Balances (Tables)	12 Months Ended
	Dec. 31, 2013
Comprehensive Income (Loss) Note [Abstract]	'
Schedule of Accumulated Other Comprehensive Income (Loss)	'
	The changes in accumulated other comprehensive income balances as of December 31, 2013, 2012, and 2011 were as follows (in thousands):
								Accumulated Other
		Pension			Unrealized			Comprehensive
		Liability			Gains (Loss)			Income (Loss)
	Balance at January 1, 2011	$	(2,024	)	$	11,661		$	9,637
	Other comprehensive loss:
	Change in net actuarial loss		(1,468	)		-			(1,468	)
	Tax effect on change in net actuarial loss		514			-			514
	Unrealized holding gains arising during the period		-			191			191
	Tax effect on unrealized gains arising during the period		-			(67	)		(67	)
	Reclassification adjustment for gains included in net realized gains		-			(3,633	)		(3,633	)
	Tax effect on reclassification adjustment for gains included in income tax expense		-			1,272			1,272
	Other comprehensive loss, net of tax		(954	)		(2,237	)		(3,191	)
	Balance at December 31, 2011	$	(2,978	)	$	9,424		$	6,446
	Other comprehensive income:
	Change in net actuarial gain		37			-			37
	Tax effect on change in net actuarial gain		(13	)		-			(13	)
	Unrealized holding gains arising during the period		-			4,388			4,388
	Tax effect on unrealized gains arising during the period		-			(1,536	)		(1,536	)
	Reclassification adjustment for gains included in net realized gains		-			(2,189	)		(2,189	)
	Tax effect on reclassification adjustment for gains included in income tax expense		-			766			766
	Other comprehensive income, net of tax		24			1,429			1,453
	Balance at December 31, 2012	$	(2,954	)	$	10,853		$	7,899
	Other comprehensive income:
	Change in net actuarial gain		2,268			-			2,268
	Tax effect on change in net actuarial gain		(794	)		-			(794	)
	Unrealized holding gains arising during the period		-			22,094			22,094
	Tax effect on unrealized gains arising during the period		-			(7,733	)		(7,733	)
	Reclassification adjustment for gains included in net realized gains		-			(10,540	)		(10,540	)
	Tax effect on reclassification adjustment for gains included in income tax expense		-			3,689			3,689
	Other comprehensive income, net of tax		1,474			7,510			8,984
	Balance at December 31, 2013	$	(1,480	)	$	18,363		$	16,883

Unaudited_Selected_Quarterly_F1

Unaudited Selected Quarterly Financial Information (Tables)	12 Months Ended
	Dec. 31, 2013
Unaudited Selected Quarterly Financial Information [Abstract]	'
Schedule of Quarterly Financial Information	'
	Following is a summary of the unaudited interim results of operations for the years ended December 31, 2013 and 2012 (in thousands, except per share data). In the opinion of management, all adjustments necessary to present fairly the results of operations for such periods have been made.
		2013									2012
		Q1		Q2			Q3		Q4		Q1		Q2			Q3		Q4
	Total revenue	$	93,141	$	99,299		$	108,613	$	88,375	$	82,986	$	84,571		$	85,620	$	88,623
	Total expense		90,978		104,616			99,141		83,613		82,769		88,722			80,599		86,336
	Income (loss) before tax		2,163		(5,317	)		9,472		4,762		217		(4,151	)		5,021		2,287
	Income tax expense (benefit)		469		(2,166	)		3,198		1,334		23		(2,351	)		1,350		504
	Net income (loss)		1,694		(3,151	)		6,274		3,428		194		(1,800	)		3,671		1,783
	Net income attributable to non-controlling interest		-		-			-		-		23		43			258		-
	Net income (loss) attributable to Hallmark Financial Services, Inc.	$	1,694		(3,151	)	$	6,274	$	3,428	$	171	$	(1,843	)	$	3,413	$	1,783
	Basic earnings (loss) per share:	$	0.09	$	(0.16	)	$	0.33	$	0.18	$	0.01	$	(0.10	)	$	0.18	$	0.09
	Diluted earnings (loss) per share:	$	0.09	$	(0.16	)	$	0.32	$	0.18	$	0.01	$	(0.10	)	$	0.18	$	0.09

Accounting_Policies_Narrative_

Accounting Policies (Narrative) (Details) (USD $)

12 Months Ended

12 Months Ended

12 Months Ended

0 Months Ended

0 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Sep. 30, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Dec. 31, 2013

Dec. 31, 2012

Jun. 21, 2005

Dec. 31, 2013

Aug. 23, 2007

Dec. 31, 2013

Dec. 31, 2013

Jul. 01, 2004

Jul. 01, 2003

Jul. 01, 2002

Jul. 01, 2001

Jan. 01, 2008

Jan. 01, 2007

Jan. 01, 2006

Aug. 29, 2008

segment

Minimum [Member]

Minimum [Member]

Maximum [Member]

Maximum [Member]

Remaining Interest [Member]

Subordinated Debt [Member]

Subordinated Debt [Member]

Subordinated Debt [Member]

Subordinated Debt [Member]

Subordinated Debt [Member]

Subordinated Debt [Member]

Quota Share Treaty Effective January 1, 2006 [Member]

Standard Commercial P & C Business Unit [Member]

Standard Commercial P & C Business Unit [Member]

Standard Commercial P & C Business Unit [Member]

Standard Commercial P & C Business Unit [Member]

E & S Commercial Business Unit [Member]

E & S Commercial Business Unit [Member]

E & S Commercial Business Unit [Member]

Excess and Umbrella Business Unit [Member]

Hallmark Statutory Trust I [Member]

Hallmark Statutory Trust I [Member]

Hallmark Statutory Trust I I [Member]

Hallmark Statutory Trust I I [Member]

Number of reportable segments

3

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Long-term debt, gross

'

'

'

'

'

'

'

'

'

$56,700,000

$56,700,000

$30,900,000

$30,900,000

$25,800,000

$25,800,000

'

'

'

'

'

'

'

'

'

Proceeds from issuance of trust preferred securities

'

'

'

'

'

'

'

'

'

'

'

30,000,000

'

25,000,000

'

'

'

'

'

'

'

'

'

'

Trust Preferred Securities, fair value

'

'

'

'

'

'

'

'

'

53,200,000

48,200,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Current yield to maturity, percentage

9.30%

'

'

'

'

'

'

'

'

8.00%

8.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

Deferred policy acquisition costs, additions

55,000,000

62,200,000

49,400,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Deferred policy acquisition costs, amortized

-57,300,000

-59,800,000

-47,800,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Deferred policy acquisition cost, amortization expense

-2,300,000

2,400,000

1,600,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Property and equipment, gross

14,700,000

13,600,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Property and equipment, estimated useful lives

'

'

'

'

'3 years

'3 years

'10 years

'10 years

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Property and equipment, depreciation method

'straight-line method

'straight-line method

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Depreciation

1,200,000

1,200,000

1,500,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Property and equipment, accumulated depreciation

12,600,000

11,400,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Business acquisition, percentage of voting interests acquired

'

'

'

'

'

'

'

'

20.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

80.00%

Business acquisition, purchase price of voting interests acquired

'

'

'

1,700,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Premiums earned, net, other insurance

13,200,000

11,800,000

13,500,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Profit sharing payable

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,200,000

'

'

'

'

'

'

'

'

Profit sharing receivable

100,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Provisional loss ratio

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

64.20%

59.00%

59.00%

60.00%

65.00%

65.00%

65.00%

'

Estimated ultimate loss ratio

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

63.70%

60.90%

64.50%

63.50%

59.00%

63.20%

58.60%

'

Retained earnings

106,209,000

97,964,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Decrease in deferred policy acquisition costs

($2,325,000)

$2,357,000

$1,621,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Accounting_Policies_Activity_R

Accounting Policies (Activity Related to Non-Controlling Interest) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]	'	'
Beginning balance	'	$1,284
Accretion of redeemable non-controlling interest	'	392
Net income attributable to non-controlling interest	'	324
Distribution to non-controlling interest	'	-281
Redemption of non-controlling interest	'	-1,700
Other	'	-19
Ending balance	'	'

Accounting_Policies_Schedule_o

Accounting Policies (Schedule of Profit Sharing Commission) (Details)	Jul. 01, 2004	Jul. 01, 2003	Jul. 01, 2002	Jul. 01, 2001	Jan. 01, 2008	Jan. 01, 2007	Jan. 01, 2006
	Standard Commercial P & C Business Unit [Member]	Standard Commercial P & C Business Unit [Member]	Standard Commercial P & C Business Unit [Member]	Standard Commercial P & C Business Unit [Member]	E & S Commercial Business Unit [Member]	E & S Commercial Business Unit [Member]	E & S Commercial Business Unit [Member]
Provisional loss ratio	64.20%	59.00%	59.00%	60.00%	65.00%	65.00%	65.00%
Estimated ultimate loss ratio recorded to at December 31, 2013	63.70%	60.90%	64.50%	63.50%	59.00%	63.20%	58.60%

Investments_Narrative_Details

Investments (Narrative) (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
	security	security
Investments [Abstract]	'	'	'
Maximum restricted level of investment upon stockholders equity	10.00%	10.00%	'
Gross realized gains on investments	$10.90	$2.90	$4.60
Gross realized losses on investments	0.4	0.7	1
Proceeds from sale of available-for-sale securities	33.4	12.4	62.7
Number of debt security positions	84	56	'
Securities pledged for the benefit of various state insurance departments and reinsurers	$29.10	$24.30	'

Investments_Amortized_Cost_and

Investments (Amortized Cost and Estimated Fair Value of Investments in Debt and Equity Securities) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'	'
Investments, Amortized Cost	$433,529	$429,302
Investments, Gross Unrealized Gains	31,696	20,887
Investments, Gross Unrealized Losses	-3,900	-4,829
Total investments	461,325	445,360
Equity Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Investments, Amortized Cost	24,902	31,502
Investments, Gross Unrealized Gains	26,642	12,938
Investments, Gross Unrealized Losses	-314	-515
Total investments	51,230	43,925
Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Investments, Amortized Cost	408,627	397,800
Investments, Gross Unrealized Gains	5,054	7,949
Investments, Gross Unrealized Losses	-3,586	-4,314
Total investments	410,095	401,435
U.S. Treasury securities and obligations of U.S. Government [Member] | Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Investments, Amortized Cost	78,894	40,050
Investments, Gross Unrealized Gains	24	14
Investments, Gross Unrealized Losses	-165	-3
Total investments	78,753	40,061
Corporate Bonds [Member] | Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Investments, Amortized Cost	42,946	79,516
Investments, Gross Unrealized Gains	1,379	2,794
Investments, Gross Unrealized Losses	-450	-763
Total investments	43,875	81,547
Collateralized Corporate Bank Loans [Member] | Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Investments, Amortized Cost	102,053	106,093
Investments, Gross Unrealized Gains	614	1,021
Investments, Gross Unrealized Losses	-489	-743
Total investments	102,178	106,371
Municipal Bonds [Member] | Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Investments, Amortized Cost	156,950	162,479
Investments, Gross Unrealized Gains	2,577	4,023
Investments, Gross Unrealized Losses	-1,975	-2,770
Total investments	157,552	163,732
Collateralized Mortgage Backed Securities [Member] | Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Investments, Amortized Cost	27,784	9,662
Investments, Gross Unrealized Gains	460	97
Investments, Gross Unrealized Losses	-507	-35
Total investments	$27,737	$9,724

Investments_Major_Categories_o

Investments (Major Categories of Investment Income) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Investment income	$13,760	$16,034	$16,615
Investment expenses	-876	-741	-735
Investment income, net of expenses	12,884	15,293	15,880
U.S. Treasury securities and obligations of U.S. Government [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Investment income	143	53	115
Corporate Bonds [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Investment income	2,341	4,218	3,851
Collateralized Corporate Bank Loans [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Investment income	4,653	5,261	5,284
Municipal Bonds [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Investment income	5,245	5,616	6,632
Collateralized Mortgage Backed Securities [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Investment income	737	106	86
Cash and Cash Equivalents [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Investment income	157	246	163
Parent Company [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Investment income, net of expenses	-190	-181	-194
Equity Securities [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Investment income	$484	$534	$484

Investments_Major_Categories_o1

Investments (Major Categories of Net Realized Gains on Investments) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Net realized gain	$10,540	$2,189	$3,633
Other-than-temporary impairments	'	-246	'
Gain on investments	10,540	1,943	3,633
U.S. Treasury securities and obligations of U.S. Government [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Net realized gain	'	'	35
Corporate Bonds [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Net realized gain	853	13	300
Collateralized Corporate Bank Loans [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Net realized gain	373	391	699
Municipal Bonds [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Net realized gain	-156	-441	-500
Equity Securities [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Net realized gain	$9,470	$2,226	$3,099

Investments_Summary_of_Gross_U

Investments (Summary of Gross Unrealized Loss Position) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'	'
Fair Value 12 months or less	$113,255	$81,876
Unrealized Losses 12 months or less	-1,287	-1,047
Fair Value Longer than 12 months	53,634	50,039
Unrealized Losses Longer than 12 months	-2,613	-3,782
Fair Value Total	166,889	131,915
Unrealized Losses Total	-3,900	-4,829
Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Fair Value 12 months or less	112,939	78,513
Unrealized Losses 12 months or less	-1,285	-532
Fair Value Longer than 12 months	50,913	50,039
Unrealized Losses Longer than 12 months	-2,301	-3,782
Fair Value Total	163,852	128,552
Unrealized Losses Total	-3,586	-4,314
Equity Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Fair Value 12 months or less	316	3,363
Unrealized Losses 12 months or less	-2	-515
Fair Value Longer than 12 months	2,721	'
Unrealized Losses Longer than 12 months	-312	'
Fair Value Total	3,037	3,363
Unrealized Losses Total	-314	-515
U.S. Treasury securities and obligations of U.S. Government [Member] | Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Fair Value 12 months or less	47,162	23,998
Unrealized Losses 12 months or less	-165	-3
Fair Value Total	47,162	23,998
Unrealized Losses Total	-165	-3
Corporate Bonds [Member] | Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Fair Value 12 months or less	5,649	10,802
Unrealized Losses 12 months or less	-56	-38
Fair Value Longer than 12 months	4,421	6,910
Unrealized Losses Longer than 12 months	-394	-725
Fair Value Total	10,070	17,712
Unrealized Losses Total	-450	-763
Collateralized Corporate Bank Loans [Member] | Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Fair Value 12 months or less	23,026	6,273
Unrealized Losses 12 months or less	-422	-97
Fair Value Longer than 12 months	6,968	14,236
Unrealized Losses Longer than 12 months	-67	-646
Fair Value Total	29,994	20,509
Unrealized Losses Total	-489	-743
Municipal Bonds [Member] | Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Fair Value 12 months or less	35,719	30,073
Unrealized Losses 12 months or less	-413	-362
Fair Value Longer than 12 months	34,684	28,809
Unrealized Losses Longer than 12 months	-1,562	-2,408
Fair Value Total	70,403	58,882
Unrealized Losses Total	-1,975	-2,770
Collateralized Mortgage Backed Securities [Member] | Debt Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Fair Value 12 months or less	1,383	7,367
Unrealized Losses 12 months or less	-229	-32
Fair Value Longer than 12 months	4,840	84
Unrealized Losses Longer than 12 months	-278	-3
Fair Value Total	6,223	7,451
Unrealized Losses Total	($507)	($35)

Investments_Schedule_of_Amorti

Investments (Schedule of Amortized Cost and Estimated Fair Value of Debt Securities) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost, Due in one year or less	$71,490	'
Amortized Cost, Due after one year through five years	162,203	'
Amortized Cost, Due after five years through ten years	107,915	'
Amortized Cost, Amortized Cost Due after ten years	39,235	'
Debt Maturities, Amortized Cost	408,627	'
Fair Value, Due in one year or less	71,969	'
Fair Value, Due after one year through five years	163,006	'
Fair Value, Due after five years through ten years	108,761	'
Fair Value, Due after ten years	38,622	'
Debt securities	410,095	401,435
Collateralized Mortgage Backed Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Debt Maturities, Amortized Cost	27,784	'
Debt securities	$27,737	$9,724

Fair_Value_Narrative_Details

Fair Value (Narrative) (Details)	12 Months Ended
	Dec. 31, 2013
Fair Value [Abstract]	'
Current yield to maturity, percentage	9.30%

Fair_Value_Fair_Value_of_Asset

Fair Value (Fair Value of Assets Measured on a Recurring Basis) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	$410,095	$401,435
Equity securities	51,230	43,925
Debt and equity securities	461,325	445,360
U.S. Treasury securities and obligations of U.S. Government [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	78,753	40,061
Corporate Bonds [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	43,875	81,547
Collateralized Corporate Bank Loans [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	102,178	106,371
Municipal Bonds [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	157,552	163,732
Collateralized Mortgage Backed Securities [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	27,737	9,724
Fair Value, Inputs, Level 1 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Equity securities	51,230	43,925
Debt and equity securities	51,230	43,925
Fair Value, Inputs, Level 2 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	392,578	381,767
Debt and equity securities	392,578	381,767
Fair Value, Inputs, Level 2 [Member] | U.S. Treasury securities and obligations of U.S. Government [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	78,753	40,061
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	43,875	81,547
Fair Value, Inputs, Level 2 [Member] | Collateralized Corporate Bank Loans [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	101,585	105,463
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	140,628	144,972
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	27,737	9,724
Fair Value, Inputs, Level 3 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	17,517	19,668
Debt and equity securities	17,517	19,668
Fair Value, Inputs, Level 3 [Member] | Collateralized Corporate Bank Loans [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	593	908
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Debt securities	$16,924	$18,760

Fair_Value_Fair_Value_Assets_M

Fair Value (Fair Value, Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value [Abstract]	'	'
Beginning balance as of January 1	$19,668	$20,608
Sales	-3,157	-429
Net losses included in other comprehensive income	1,006	-511
Ending balance as of December 31	$17,517	$19,668

Goodwill_and_Intangible_Assets2

Goodwill and Intangible Assets (Narrative) (Details) (USD $)

12 Months Ended

0 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Jul. 01, 2011

Sep. 30, 2012

Jul. 01, 2011

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Aug. 29, 2008

Sep. 30, 2012

Dec. 31, 2013

Dec. 31, 2013

Standard Commercial P & C Business Unit [Member]

TBIC Holding Corporation Inc [Member]

TBIC Holding Corporation Inc [Member]

TBIC Holding Corporation Inc [Member]

E & S Commercial Business Unit [Member]

Hallmark Select Business Unit [Member]

Excess and Umbrella Business Unit [Member]

Excess and Umbrella Business Unit [Member]

Excess and Umbrella Business Unit [Member]

General Aviation and Satellite Component [Member]

Personal Lines Business Unit [Member]

Maximum [Member]

Put or Call Option [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Business acquisition, percentage of voting interests acquired

'

'

'

'

'

'

'

'

'

'

80.00%

20.00%

'

'

Business acquisition, total consideration

'

'

'

'

'

'

'

'

'

'

$15,000,000

$1,700,000

'

'

Business acquisition, cash paid

'

'

'

'

1,600,000

350,000

'

'

'

'

'

'

'

'

Potential cash payment following 16 full calendar quarters

'

'

'

'

'

'

3,000,000

'

'

'

'

'

'

'

Business acquisition, bargain purchase gain recorded

'

'

'

'

165,000

'

'

'

'

'

'

'

'

'

Goodwill

44,695,000

44,695,000

'

2,100,000

'

'

'

19,900,000

17,400,000

7,700,000

'

'

9,700,000

5,300,000

Impairment of goodwill

$0

$0

$0

'

'

'

'

'

'

'

'

'

'

'

Weighted average period to amortize acquired intangible assets

'13 years

'

'

'

'

'

'

'

'

'

'

'

'

'

Goodwill_and_Intangible_Assets3

Goodwill and Intangible Assets (Schedule of Acquired Intangible Assets by Major Category) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Acquired Finite-Lived Intangible Assets [Line Items]	'	'
Total gross carrying amount	$44,384	$44,384
Total accumulated amortization	-24,431	-21,316
Total net carrying amount	19,953	23,068
Customer Relationships [Member]	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'
Total gross carrying amount	32,177	32,177
Total accumulated amortization	-15,322	-13,084
Trade Names [Member]	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'
Total gross carrying amount	3,440	3,440
Total accumulated amortization	-1,700	-1,471
Management Agreement [Member]	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'
Total gross carrying amount	3,232	3,232
Total accumulated amortization	-3,232	-2,895
Non-compete & Employment Agreements [Member]	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'
Total gross carrying amount	4,235	4,235
Total accumulated amortization	-4,177	-3,866
Insurance Licenses [Member]	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'
Total gross carrying amount	$1,300	$1,300

Goodwill_and_Intangible_Assets4

Goodwill and Intangible Assets (Schedule of Estimated Aggregate Amortization Expense for Finite-Lived Intangible Assets) (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Goodwill and Intangible Assets [Abstract]	'
2014	$2,526
2015	2,468
2016	2,468
2017	2,468
2018	$2,468

Goodwill_and_Intangible_Assets5

Goodwill and Intangible Assets (Schedule of Weighted Average Amortization Period for Definite Lived Intangible Assets by Major Cass) (Details)	12 Months Ended
	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]	'
Weighted average period to amortize acquired intangible assets	'13 years
Trade Names [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Weighted average period to amortize acquired intangible assets	'15 years
Customer Relationships [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Weighted average period to amortize acquired intangible assets	'15 years
Management Agreement [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Weighted average period to amortize acquired intangible assets	'4 years
Non-compete & Employment Agreements [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Weighted average period to amortize acquired intangible assets	'5 years

Other_Assets_Schedule_of_Other

Other Assets (Schedule of Other Assets) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Other Assets [Abstract]	'	'
Profit sharing commission receivable	$641	$2,083
Accrued investment income	3,030	3,568
Debt issuance costs	1,156	1,207
Investment in unconsolidated trust subsidiaries	1,702	1,702
Fixed assets	1,773	2,284
Other assets	110	141
Other Assets, Total	$8,412	$10,985

Reserves_for_Unpaid_Losses_and2

Reserves for Unpaid Losses and Loss Adjustment Expenses (Narrative) (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	'	$3.70	'
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense	10	'	16.4
Loss Adjustment Expenses Recognized In 2008 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	'	'	2.2
Loss Adjustment Expenses Recognized In 2009 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	'	2.5	'
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense	'	'	3.6
Loss Adjustment Expenses Recognized In 2010 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	'	0.8	'
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense	3.3	'	15
Loss Adjustment Expenses Recognized In 2011 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	'	0.4	'
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense	1.7	'	'
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	'	'	16.4
Loss Adjustment Expenses Recognized In 2012 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense	5	'	'
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	'	-3.7	'
Loss Adjustment Expenses Recognized In 2013 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	10	'	'
Florida Personal Lines Claims [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	'	'	10.3
Standard Commercial P & C Business Unit [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	3.7	'	0.8
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	'	-3.7	'
Workers Compensation Business Unit [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	1.5	'	'
E & S Commercial Business Unit [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	'	-0.3	3.7
E & S Commercial Business Unit [Member] | Loss Adjustment Expenses Recognized In 2013 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	16	'	'
Hallmark Select Business Unit [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	2.6	'	'
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	'	-3.3	'
Hallmark Select Business Unit [Member] | Loss Adjustment Expenses Recognized In 2011 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	2.3	'	'
Aerospace Insurance Managers Inc [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	'	'	6.1
Personal Lines Business Unit [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense	'	3.6	'
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	'	'	19.6
Personal Lines Business Unit [Member] | Loss Adjustment Expenses Recognized In 2011 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	'	'	19.6
Personal Lines Business Unit [Member] | Loss Adjustment Expenses Recognized In 2013 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Causes of increase (decrease) in liability for unpaid claims and claims adjustment expense, amount	1.8	'	'
Excess and Umbrella Business Unit [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Favorable adjustment to prior years liability for unpaid claims and claims adjustment expense	0.4	'	'
Aircraft Hull [Member] | Loss Adjustment Expenses Recognized In 2012 [Member]	'	'	'
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]	'	'	'
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense	$0.10	'	'

Reserves_for_Unpaid_Losses_and3

Reserves for Unpaid Losses and Loss Adjustment Expenses (Activity in the Reserves for Unpaid Losses and Loss Adjustment Expense) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reserves for Unpaid Losses and Loss Adjustment Expenses [Abstract]	'	'	'
Balance at January 1	$313,416	$296,945	$251,677
Less reinsurance recoverable	49,584	42,044	37,954
Net Balance at January 1	263,832	254,901	213,723
Acquisition of subsidiaries effective July 1	'	'	8,816
Incurred related to:	'	'	'
Current year	251,391	230,089	222,869
Prior years	9,954	-3,675	16,366
Total incurred	261,345	226,414	239,235
Paid related to:	'	'	'
Current year	101,897	107,945	101,025
Prior years	110,812	109,538	105,848
Total paid	212,709	217,483	206,873
Net Balance at December 31	312,468	263,832	254,901
Plus reinsurance recoverable	70,172	49,584	42,044
Balance at December 31	$382,640	$313,416	$296,945

Reinsurance_Narrative_Details

Reinsurance (Narrative) (Details) (USD $)

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Jun. 01, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

In Millions, unless otherwise specified

Hallmark County Mutual Insurance Company [Member]

Catastrophe [Member]

Commercial Property Risk [Member]

Professional Liability [Member]

Personal Property [Member]

Workers Compensation Loss [Member]

Commercial Liability Risk [Member]

Occupational Accident [Member]

Personal Auto [Member]

Standard Commercial P & C Business Unit [Member]

Excess and Umbrella [Member]

E & S Commercial Business Unit [Member]

E & S Commercial Business Unit [Member]

Hallmark Select Business Unit [Member]

Commercial Umbrella and Excess Liability Risks [Member]

Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Reinsurance receivables

$6.10

$1

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Retention for reinsurance losses

'

'

'

6

1

'

'

1

1

1

'

'

'

1

1

'

Reinsurers reimbursement percentage

'

'

'

100.00%

'

'

'

100.00%

'

'

'

'

'

'

'

'

Reinsurers reimbursement retention maximum limit

'

'

'

29

'

'

'

10

5

5

'

'

'

'

'

'

Commerical property risk retention

'

'

'

'

6

'

'

'

'

'

'

'

'

'

'

'

Reinsurers reimbursement retention aggregate limit

'

'

'

58

30

'

'

28

'

'

'

'

'

'

'

'

Reinsurers reimbursement retention for each disaster occurrence

'

'

'

'

5

'

'

14

'

'

'

'

'

'

'

'

Reinsurers reimbursement retention for any one disaster occurrence

'

'

'

'

$10

'

'

'

'

$10

'

'

'

'

'

'

Proportional reinsurance cede risk percentage

'

'

'

'

'

40.00%

60.00%

'

'

'

90.00%

100.00%

80.00%

'

'

'

Proportional reinsurance retention percentage

'

'

100.00%

'

'

60.00%

'

'

'

'

'

'

20.00%

10.00%

'

'

Concentration of ceded credit risk percentage

'

'

'

'

'

'

'

'

'

'

'

'

'

90.00%

100.00%

80.00%

Reinsurance_Schedule_of_Reinsu

Reinsurance (Schedule of Reinsurance Ceded and Recoveries) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Premium Written :	'	'	'
Direct	$458,020	$385,624	$350,089
Assumed	2,007	4,218	4,792
Ceded	-99,262	-57,353	-51,005
Premiums Written, Net, Property and Casualty	360,765	332,489	303,876
Premium Earned:	'	'	'
Direct	434,022	369,735	344,642
Assumed	3,204	4,114	5,438
Ceded	-76,685	-54,413	-57,039
Premiums Earned, Net, Property and Casualty	360,541	319,436	293,041
Reinsurance recoveries	$45,456	$29,014	$32,941

Revolving_Credit_Facility_and_1

Revolving Credit Facility and Notes Payable (Narrative) (Details) (USD $)	0 Months Ended	12 Months Ended
In Millions, unless otherwise specified	Jan. 27, 2006	Dec. 31, 2013	Dec. 31, 2012
Revolving Credit Facility [Member]	'	'	'
Line of Credit Facility [Line Items]	'	'	'
Line of credit facility, maximum borrowing capacity	$15	'	'
Debt instrument, description of variable rate basis	'prime rate or LIBOR plus 2.5%	'	'
Line of credit facility, unused capacity, commitment fee percentage	0.25%	'	'
Line of credit facility, amount outstanding	'	$1.50	$1.50
Line of credit facility, interest rate during period	'	2.75%	'
Letters of Credit [Member]	'	'	'
Line of Credit Facility [Line Items]	'	'	'
Line of credit facility, commitment fee percentage	1.00%	'	'
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member]	'	'	'
Line of Credit Facility [Line Items]	'	'	'
Debt instrument, basis spread on variable rate	2.50%	'	'

Subordinated_Debt_Securities_N

Subordinated Debt Securities (Narrative) (Details) (Subordinated Debt [Member], USD $)	Dec. 31, 2013	Dec. 31, 2012	Jun. 21, 2005	Dec. 31, 2013	Aug. 23, 2007	Dec. 31, 2013	Jun. 21, 2005	Aug. 23, 2007
In Millions, unless otherwise specified			Hallmark Statutory Trust I [Member]	Hallmark Statutory Trust I [Member]	Hallmark Statutory Trust I I [Member]	Hallmark Statutory Trust I I [Member]	London Interbank Offered Rate (LIBOR) [Member]	London Interbank Offered Rate (LIBOR) [Member]
							Hallmark Statutory Trust I [Member]	Hallmark Statutory Trust I I [Member]
Subordinated Borrowing [Line Items]	'	'	'	'	'	'	'	'
Long-term debt, gross	$56.70	$56.70	$30.90	$30.90	$25.80	$25.80	'	'
Debt instrument, maturity date	'	'	15-Jun-35	'	15-Sep-37	'	'	'
Proceeds from issuance of trust preferred securities	'	'	30	'	25	'	'	'
Proceeds from issuance of common stock	'	'	$0.90	'	$0.80	'	'	'
Subordinated borrowing, interest rate	'	'	7.73%	'	8.28%	'	'	'
Debt instrument interest rate fixed to floating date	'	'	15-Jun-15	'	15-Sep-17	'	'	'
Debt instrument, description of variable rate basis	'	'	'interest will adjust quarterly to the three-month LIBOR rate plus 3.25 percentage points	'	'three-month LIBOR rate plus 2.90 percentage points	'	'	'
Debt instrument, basis spread on variable rate	'	'	'	'	'	'	3.25%	2.90%

Segment_Information_Narrative_

Segment Information (Narrative) (Details)	12 Months Ended
	Dec. 31, 2013
American Hallmark Insurance Company [Member]	'
Net premiums written, percentage	30.00%
Hallmark Insurance Company (Payer) [Member]	'
Net premiums written, percentage	27.00%
Hallmark Specialty Insurance Company [Member]	'
Net premiums written, percentage	30.00%
Hallmark National Insurance Company [Member]	'
Net premiums written, percentage	13.00%

Segment_Information_Schedule_o

Segment Information (Schedule of Segment Reporting, by Segment) (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenues	'	'	'	'	'	'	'	'	'	'	'
Revenues	$88,375	$108,613	$99,299	$93,141	$88,623	$85,620	$84,571	$82,986	$389,428	$341,800	$322,771
Depreciation and Amortization Expense	'	'	'	'	'	'	'	'	'	'	'
Depreciation and Amortization Expense	'	'	'	'	'	'	'	'	4,300	4,421	5,064
Interest Expense	'	'	'	'	'	'	'	'	'	'	'
Interest Expense	'	'	'	'	'	'	'	'	4,599	4,634	4,631
Tax Expense (Benefit)	'	'	'	'	'	'	'	'	'	'	'
Income tax expense (benefit)	1,334	3,198	-2,166	469	504	1,350	-2,351	23	2,835	-474	-8,954
Pre-tax income (loss), net of non-controlling interest:	'	'	'	'	'	'	'	'	'	'	'
Consolidated pre-tax income (loss), net of non-controlling interest	'	'	'	'	'	'	'	'	11,080	3,050	-19,845
Standard Commercial Segment [Member]	'	'	'	'	'	'	'	'	'	'	'
Revenues	'	'	'	'	'	'	'	'	'	'	'
Revenues	'	'	'	'	'	'	'	'	83,306	73,119	72,830
Depreciation and Amortization Expense	'	'	'	'	'	'	'	'	'	'	'
Depreciation and Amortization Expense	'	'	'	'	'	'	'	'	201	186	174
Tax Expense (Benefit)	'	'	'	'	'	'	'	'	'	'	'
Income tax expense (benefit)	'	'	'	'	'	'	'	'	312	372	-376
Pre-tax income (loss), net of non-controlling interest:	'	'	'	'	'	'	'	'	'	'	'
Consolidated pre-tax income (loss), net of non-controlling interest	'	'	'	'	'	'	'	'	1,980	-2,486	1,335
Specialty Commercial Segment [Member]	'	'	'	'	'	'	'	'	'	'	'
Revenues	'	'	'	'	'	'	'	'	'	'	'
Revenues	'	'	'	'	'	'	'	'	229,734	178,917	142,838
Depreciation and Amortization Expense	'	'	'	'	'	'	'	'	'	'	'
Depreciation and Amortization Expense	'	'	'	'	'	'	'	'	2,896	2,892	3,293
Tax Expense (Benefit)	'	'	'	'	'	'	'	'	'	'	'
Income tax expense (benefit)	'	'	'	'	'	'	'	'	3,613	1,875	4,454
Pre-tax income (loss), net of non-controlling interest:	'	'	'	'	'	'	'	'	'	'	'
Consolidated pre-tax income (loss), net of non-controlling interest	'	'	'	'	'	'	'	'	19,527	25,932	14,348
Personal Segment [Member]	'	'	'	'	'	'	'	'	'	'	'
Revenues	'	'	'	'	'	'	'	'	'	'	'
Revenues	'	'	'	'	'	'	'	'	71,081	89,149	101,351
Depreciation and Amortization Expense	'	'	'	'	'	'	'	'	'	'	'
Depreciation and Amortization Expense	'	'	'	'	'	'	'	'	1,111	1,230	1,431
Tax Expense (Benefit)	'	'	'	'	'	'	'	'	'	'	'
Income tax expense (benefit)	'	'	'	'	'	'	'	'	-398	-968	-13,991
Pre-tax income (loss), net of non-controlling interest:	'	'	'	'	'	'	'	'	'	'	'
Consolidated pre-tax income (loss), net of non-controlling interest	'	'	'	'	'	'	'	'	-3,416	-8,535	-29,647
Corporate [Member]	'	'	'	'	'	'	'	'	'	'	'
Revenues	'	'	'	'	'	'	'	'	'	'	'
Revenues	'	'	'	'	'	'	'	'	5,307	615	5,752
Depreciation and Amortization Expense	'	'	'	'	'	'	'	'	'	'	'
Depreciation and Amortization Expense	'	'	'	'	'	'	'	'	92	113	166
Interest Expense	'	'	'	'	'	'	'	'	'	'	'
Interest Expense	'	'	'	'	'	'	'	'	4,599	4,634	4,631
Tax Expense (Benefit)	'	'	'	'	'	'	'	'	'	'	'
Income tax expense (benefit)	'	'	'	'	'	'	'	'	-692	-1,753	959
Pre-tax income (loss), net of non-controlling interest:	'	'	'	'	'	'	'	'	'	'	'
Consolidated pre-tax income (loss), net of non-controlling interest	'	'	'	'	'	'	'	'	($7,011)	($11,861)	($5,881)

Segment_Information_Schedule_o1

Segment Information (Schedule of Segment Reporting Additional Information by Segment) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets	$909,023	$790,468
Standard Commercial Segment [Member]	'	'
Assets	142,143	145,162
Specialty Commercial Segment [Member]	'	'
Assets	536,894	432,208
Personal Segment [Member]	'	'
Assets	210,825	200,356
Corporate [Member]	'	'
Assets	$19,161	$12,742

Earnings_Per_Share_NarrativeDe

Earnings Per Share (Narrative)(Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share [Abstract]	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	779,999	794,999	809,999

Earnings_Per_Share_Schedule_of

Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Numerator for both basic and diluted earnings per share:	'	'	'	'	'	'	'	'	'	'	'
Net income (loss) attributable to Hallmark Financial Services, Inc.	$3,428	$6,274	($3,151)	$1,694	$1,783	$3,413	($1,843)	$171	$8,245	$3,524	($10,891)
Denominator, basic shares	'	'	'	'	'	'	'	'	19,263	19,263	19,673
Effect of dilutive securities:	'	'	'	'	'	'	'	'	'	'	'
Stock-based compensation awards	'	'	'	'	'	'	'	'	98	6	'
Denominator, diluted shares	'	'	'	'	'	'	'	'	19,361	19,269	19,673
Basic earnings per share: (in dollars per share)	$0.18	$0.33	($0.16)	$0.09	$0.09	$0.18	($0.10)	$0.01	$0.43	$0.18	($0.55)
Diluted earnings per share: (in dollars per share)	$0.18	$0.32	($0.16)	$0.09	$0.09	$0.18	($0.10)	$0.01	$0.43	$0.18	($0.55)

Regulatory_Capital_Restriction1

Regulatory Capital Restrictions (Narrative) (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Regulatory Capital Restrictions [Line Items]	'	'	'
Retained earnings, unappropriated	$29.80	'	'
Aggregate amount of shareholder dividends, maximum available next current fiscal year	15.6	'	'
Hallmark Insurance Company (Payer) [Member] | Hallmark (Payee) [Member]	'	'	'
Regulatory Capital Restrictions [Line Items]	'	'	'
Insurance agency management fee	8.2	9	6
Subsidiaries [Member]	'	'	'
Regulatory Capital Restrictions [Line Items]	'	'	'
Statutory Accounting Practices, Future Dividend Payments Restrictions	'lesser of 10% of prior year policyholders' surplus or prior year's net investment income	'	'
Aggregate amount of shareholder dividends, maximum available next current fiscal year	22.5	'	'
American Hallmark Insurance Company and Texas Builders Insurance Company [Member]	'	'	'
Regulatory Capital Restrictions [Line Items]	'	'	'
Statutory Accounting Practices, Future Dividend Payments Restrictions	'greater of statutory net income for the prior calendar year or 10% of statutory policyholders' surplus as of the prior year end	'	'
Hallmark National Insurance Company [Member]	'	'	'
Regulatory Capital Restrictions [Line Items]	'	'	'
Statutory Accounting Practices, Future Dividend Payments Restrictions	'greater of 10% of statutory policyholders' surplus as of the prior December 31 or statutory net income as of the prior December 31	'	'
Hallmark Specialty Insurance Com [Member]	'	'	'
Regulatory Capital Restrictions [Line Items]	'	'	'
Statutory Accounting Practices, Future Dividend Payments Restrictions	'greater of 10% of prior year policyholders' surplus or prior year's statutory net income, not including realized capital gains	'	'
Hallmark Insurance Company Subsidiaries [Member]	'	'	'
Regulatory Capital Restrictions [Line Items]	'	'	'
Amount of restricted net assets for consolidated and unconsolidated subsidiaries	208.3	'	'
Statutory accounting practices, statutory capital and surplus, balance	196.3	176.5	'
Statutory accounting practices, statutory net income amount	6.1	3.1	'
Statutory accounting practices statutory net loss amount	'	'	$17.20

Sharebased_Payment_Arrangement2

Share-based Payment Arrangements (Narrative) (Details) (USD $)

12 Months Ended

12 Months Ended

12 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

26-May-05

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

30-May-13

Apr. 10, 2013

Jul. 27, 2012

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Minimum [Member]

Maximum [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Incentive Stock Options 2011 [Member]

Incentive Stock Options 2011 [Member]

Incentive Stock Options 2011 [Member]

Non Qualified Stock Options [Member]

Restricted Stock Units (RSUs) [Member]

Restricted Stock Units (RSUs) [Member]

Restricted Stock Units (RSUs) [Member]

Restricted Stock Units (RSUs) [Member]

Restricted Stock Units (RSUs) [Member]

Vesting Percentage First Anniversary [Member]

Vesting Percentage Second Anniversary [Member]

Vesting Percentage Third Anniversary [Member]

Vesting Percentage Fourth Anniversary [Member]

Vesting Equal Increments on Each Anniversary First Through the Seventh [Member]

Vesting Equal Increments on Each Anniversary First Through the Seventh [Member]

Minimum [Member]

Maximum [Member]

Option Issued Prior To 2009 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

Incentive Stock Options 2011 [Member]

Non Qualified Stock Options [Member]

Option Issued Prior To 2009 [Member]

5,000 Grant [Member]

10,000 Grant [Member]

Option Issued Prior To 2009 [Member]

Option Issued Prior To 2009 [Member]

Option Issued Prior To 2009 [Member]

Option Issued Prior To 2009 [Member]

Long Term Incentive Plan 2005 [Member]

Long Term Incentive Plan 2005 [Member]

5,000 Grant [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Share-based compensation arrangement by share-based payment award, number of shares authorized

'

'

'

'

'

'

2,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Share-based compensation arrangement by share-based payment award, incentive stock options to purchase number of shares

'

'

'

'

'

1,083,332

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Share-based compensation arrangement by share-based payment award, non-qualified stock options to purchase number of shares

'

'

'

'

'

304,157

'

'

'

'

'

'

200,000

'

'

'

'

'

'

'

'

'

'

'

Share-based compensation arrangement by share-based payment award, restricted stock options to purchase number of shares

'

'

'

'

'

355,277

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Share-based compensation by share-based payment award, remaining available shares for issuance

'

'

'

'

'

241,401

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Share-based compensation arrangement by share-based payment award, award vesting rights, percentage

'

'

'

'

'

'

'

'

'

'

'

'

100.00%

'

'

'

'

'

10.00%

20.00%

30.00%

40.00%

'

'

Stock-based compensation incentive stock options grant under incentive plan termination period

'

'

'

'

'

'

'

'5 years

'10 years

'

'

'10 years

'10 years

'

'

'

'

'

'

'

'

'

'10 years

'

Share-based compensation arrangement by share based payment award options vested and expected to vest number

'

'

'

'

'

'

'

'

'

5,000

25,000

10,000

'

'

'

'

'

'

'

'

'

'

'

'

Share-based compensation arrangement by share-based payment award, award vesting period

'

'

'

'

'

'

'

'

'

'

'

'3 years

'6 months

'

'

'

'

'

'

'

'

'

'7 years

'7 years

Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized

$500,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$500,000

'

'

'

'

'

'

Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognize During Remainder of Year Two

200,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

200,000

'

'

'

'

'

'

Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognize During Remainder of Year Three

200,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

200,000

'

'

'

'

'

'

Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognize During Remainder of Year Four

54,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

49,000

'

'

'

'

'

'

Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognize During Remainder of Year Five

3,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Stock options, Granted

0

0

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Options granted, weighted average grant date fair value

'

'

$2.52

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Options contractual term

'4 years 2 months 12 days

'

'5 years 9 months 18 days

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Expected volatility

'

'

30.90%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Risk free interest rate

'

'

1.40%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Other than options, granted

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

122,823

129,463

243,006

'

'

'

'

'

'

Other than options granted, weighted average grant date fair value

'

'

'

'

'

'

'

'

'

'

'

'

'

$9.20

'

'

'

'

'

'

'

'

'

'

Other than options, forfeited

'

'

'

'

'

'

'

'

'

'

'

'

'

'

9,280

'

'

6,155

'

'

'

'

'

'

Percentage of restricted stock units granted as result of meeting growth rates

'

'

'

50.00%

150.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Allocated share-based compensation expense

'

'

'

'

'

'

'

'

'

'

'

'

'

$145,000

'

'

'

'

'

'

'

'

'

'

Sharebased_Payment_Arrangement3

Share-based Payment Arrangements (Summary of the Status of Stock Options) (Details) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Payment Arrangements [Abstract]	'	'	'
Stock options, Outstanding at January 1, 2013	1,404,989	'	'
Stock options, Granted	0	0	'
Stock options, exercised (in shares)	'	'	'
Stock options, forfeited or expired	-17,500	'	'
Stock options, Outstanding at December 31, 2013	1,387,489	1,404,989	'
Stock options, Exercisable at December 31, 2013	1,181,417	'	'
Weighted Average Exercise Price, Outstanding at January 1, 2013	$9.63	'	'
Weighted Average Exercise Price, Forfeited or expired	$7.58	'	'
Weighted Average Exercise Price, Outstanding at December 31, 2013	$9.66	$9.63	'
Weighted Average Exercise Price, Exercisable at December 31, 2013	$10.19	'	'
Average Remaining Contractual Term, Outstanding at December 31, 2013 (in years)	'4 years 2 months 12 days	'	'5 years 9 months 18 days
Average Remaining Contractual Term, Exercisable at December 31, 2013 (in years)	'4 years	'	'
Aggregate Intrinsic Value, Outstanding at December 31, 2013	$1,329	'	'
Aggregate Intrinsic Value, Exercisable at December 31, 2013	$866	'	'

Sharebased_Payment_Arrangement4

Share-based Payment Arrangements (Schedule of Options, Grants in Period, Grant Date Intrinsic Value) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Cost of share-based payments (non-cash)	$352	$380	$709
Employee Stock Option [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Intrinsic value of options exercised	'	'	4
Cost of share-based payments (non-cash)	207	380	709
Income tax benefit of share-based payments recognized in income	$30	$38	$30

Sharebased_Payment_Arrangement5

Share-based Payment Arrangements (Schedule of Nonvested Restricted Stock Units Activity) (Details) (Long Term Incentive Plan 2005 [Member], Restricted Stock Units (RSUs) [Member])	0 Months Ended			12 Months Ended
	30-May-13	Apr. 10, 2013	Jul. 27, 2012	Dec. 31, 2013
Long Term Incentive Plan 2005 [Member] | Restricted Stock Units (RSUs) [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Nonvested at January 1, 2013	'	'	'	'
Granted	'	122,823	129,463	243,006
Forfeited	-9,280	'	'	-6,155
Nonvested at December 31, 2013	'	'	'	236,851

Retirement_Plans_Narrative_Det

Retirement Plans (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2014	Dec. 31, 2010
	item
Defined Benefit Plan Disclosure [Line Items]	'	'	'	'	'
Defined benefit plan, fair value of plan assets	$10,851,000	$9,754,000	$9,019,000	'	$9,217,000
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	10,528,000	9,341,000	'	'	'
Favorable rate of return equal to or greater than average inflation rate	5.00%	'	'	'	'
Investment objective achievement period	'60 years	'	'	'	'
Single stock issue restricted among total portfolio value	5.00%	'	'	'	'
Securities held in mutual or commingled funds	90.00%	'	'	'	'
Expected return on plan assets	6.50%	6.50%	6.50%	'	'
Defined benefit plan, estimated future employer contributions in next fiscal year	'	'	'	700,000	'
Net periodic pension cost	385,000	462,000	306,000	'	'
Interest cost on projected benefit obligation	505,000	564,000	609,000	'	'
Defined benefit plan, expected return on plan assets	-615,000	-584,000	-590,000	'	'
Defined contribution plan, number of separate plans	2	'	'	'	'
Defined contribution plan, employer discretionary contribution amount	300,000	100,000	200,000	'	'
Scenario, Forecast for 2014 [Member]	'	'	'	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'	'	'	'
Net periodic pension cost	-4,000	'	'	'	'
Interest cost on projected benefit obligation	500,000	'	'	'	'
Defined benefit plan, expected return on plan assets	-700,000	'	'	'	'
Defined benefit plan, amortization of gains (losses)	200,000	'	'	'	'
Cash and Cash Equivalents [Member]	'	'	'	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'	'	'	'
Defined benefit plan, fair value of plan assets	300,000	400,000	'	'	'
Bonds and Notes [Member]	'	'	'	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'	'	'	'
Defined benefit plan, fair value of plan assets	3,500,000	'	'	'	'
Equity Securities [Member]	'	'	'	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'	'	'	'
Defined benefit plan, fair value of plan assets	7,100,000	'	'	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	$7,080,000	$6,153,000	'	'	'
Defined benefit plan, target plan asset allocations range, minimum	45.00%	'	'	'	'
Defined benefit plan, target plan asset allocations range, maximum	75.00%	'	'	'	'
Standard Commercial P & C Business Unit [Member]	'	'	'	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'	'	'	'
Minimum hours of service to participate within defined benefit plan	'1000 hours	'	'	'	'

Retirement_Plans_Changes_in_Be

Retirement Plans (Changes in Benefit Obligations, Components of Benefit Costs, Weighted-Average Assumptions, and Plan Assets) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Assumptions (end of period):	'	'	'
Discount rate used in determining benefit obligation	4.49%	3.89%	4.50%
Rate of compensation increase	0.00%	0.00%	0.00%
Reconciliation of funded status (end of period):	'	'	'
Accumulated benefit obligation	($12,284)	($13,439)	($12,990)
Projected benefit obligation	-12,284	-13,439	-12,990
Fair value of plan assets	10,851	9,754	9,019
Defined Benefit Plan, Funded Status of Plan, Total	-1,433	-3,685	-3,971
Net actuarial loss	-2,277	-4,545	-4,582
Accumulated other comprehensive loss	-2,277	-4,545	-4,582
Prepaid pension cost	844	860	611
Net amount recognized as of December 31	-1,433	-3,685	-3,971
Changes in projected benefit obligation:	'	'	'
Benefit obligation as of beginning of period	13,439	12,990	12,050
Interest cost	505	564	609
Actuarial liability loss	-824	700	1,160
Benefits paid	-836	-815	-829
Benefit obligation as of end of period	12,284	13,439	12,990
Change in plan assets:	'	'	'
Fair value of plan assets as of beginning of period	9,754	9,019	9,217
Actual return on plan assets (net of expenses)	1,565	839	-4
Employer contributions	368	711	635
Benefits paid	836	815	829
Fair value of plan assets as of end of period	10,851	9,754	9,019
Net periodic pension cost:	'	'	'
Interest cost on projected benefit obligation	505	564	609
Expected return on plan assets	-615	-584	-590
Recognized actuarial loss	495	482	287
Net periodic pension cost	$385	$462	$306
Discount rate	3.89%	4.50%	5.25%
Expected return on plan assets	6.50%	6.50%	6.50%
Rate of compensation increase	0.00%	0.00%	0.00%

Retirement_Plans_Estimated_Fut

Retirement Plans (Estimated Future Benefit Payments) (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Retirement Plans [Abstract]	'
2014	$889
2015	897
2016	885
2017	884
2018	878
2019-2023	$4,170

Retirement_Plans_WeightedAvera

Retirement Plans (Weighted-Average Asset Allocation for the Defined Benefit Cash Balance Plan) (Details)	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, actual plan asset allocations	100.00%	100.00%
Fixed Income Securities [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, actual plan asset allocations	32.00%	33.00%
Equity Securities [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, actual plan asset allocations	65.00%	63.00%
Other Liabilities [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, actual plan asset allocations	3.00%	4.00%

Retirement_Plans_Schedule_of_F

Retirement Plans (Schedule of Fair Value, Assets Measured on Recurring Basis) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	$10,528	$9,341
Debt Securities [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	3,448	3,188
Equity Securities [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	7,080	6,153
Fair Value, Inputs, Level 1 [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	7,080	6,153
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	7,080	6,153
Fair Value, Inputs, Level 2 [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	3,448	3,188
Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	3,448	3,188
Fair Value, Inputs, Level 3 [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	'	'
Fair Value, Inputs, Level 3 [Member] | Debt Securities [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	'	'
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member]	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	'	'

Income_Taxes_Narrative_Details

Income Taxes (Narrative) (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013
Income Taxes [Abstract]	'
Operating loss carryforwards	$1.70
Income tax carryback period	'2 years
Income tax carryforward period	'20 years
Uncertain tax positions	$0

Income_Taxes_Schedule_of_Defer

Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Deferred tax liabilities:	'	'
Deferred policy acquisition costs	($7,905)	($8,719)
Net unrealized holding gain on investments	-9,730	-5,622
Agency relationship	-85	-94
Intangible assets	-6,129	-6,852
Goodwill	-325	-116
Fixed assets	-499	-685
Other	-263	-275
Total deferred tax liabilities	-24,936	-22,363
Deferred tax assets:	'	'
Unearned premiums	9,822	9,806
Alternative minimum tax	442	1,651
Amortization of non-compete agreements	417	476
Pension liability	797	1,591
Net operating loss carry-forward	611	702
Unpaid loss and loss adjustment expense	8,173	7,549
Rent reserve	366	363
Investment impairments	660	1,256
Other	823	909
Total deferred tax assets	22,111	24,303
Deferred federal income taxes, net	($2,825)	$1,940

Income_Taxes_Schedule_of_Effec

Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Taxes [Abstract]	'	'	'	'	'	'	'	'	'	'	'
Computed expected income tax expense (benefit) at statutory regulatory tax rate	'	'	'	'	'	'	'	'	$3,878	$1,181	($6,926)
Meals and entertainment	'	'	'	'	'	'	'	'	25	28	44
Tax exempt interest	'	'	'	'	'	'	'	'	-1,314	-1,631	-1,835
Dividends received deduction	'	'	'	'	'	'	'	'	-101	-111	-99
State taxes (net of federal benefit)	'	'	'	'	'	'	'	'	276	298	84
Other	'	'	'	'	'	'	'	'	71	-239	-222
Income tax expense (benefit)	1,334	3,198	-2,166	469	504	1,350	-2,351	23	2,835	-474	-8,954
Current income tax (benefit) expense	'	'	'	'	'	'	'	'	3,092	2,377	-6,059
Deferred income tax expense (benefit)	'	'	'	'	'	'	'	'	-257	-2,851	-2,895
Income tax (benefit) expense	$1,334	$3,198	($2,166)	$469	$504	$1,350	($2,351)	$23	$2,835	($474)	($8,954)

Income_Taxes_Summary_of_Operat

Income Taxes (Summary of Operating Loss Carryforwards) (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward	$1,747
Operating Loss Expires In 2021 [Member]	'
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward	650
Operating Loss Expires In 2022 [Member]	'
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward	878
Operating Loss Expires In 2028 [Member]	'
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward	2
Operating Loss Expires In 2030 [Member]	'
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward	25
Operating Loss Expires In 2031 [Member]	'
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward	45
Operating Loss Expires In 2032 [Member]	'
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward	$70

Commitments_and_Contingencies_1

Commitments and Contingencies (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Commitments and Contingencies [Abstract]	'	'	'
Operating leases, rent expense, net	$2,200,000	$2,300,000	$2,000,000
Payments of assessment	29,000	100,000	0
Contingent liability premium taxes	4,500,000	'	'
Contingent liability penalties and interest	$900,000	'	'

Commitments_and_Contingencies_2

Commitments and Contingencies (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Commitments and Contingencies [Abstract]	'
2014	$1,987
2015	1,969
2016	1,641
2017	1,484
2018	1,193
2019 and thereafter	3,166
Total minimum lease payments	$11,440

Changes_in_Accumulated_Other_C2

Changes in Accumulated Other Comprehensive Income Balances (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accumulated Other Comprehensive Income Loss [Line Items]	'	'	'
Beginning Balance	$7,899	'	'
Other comprehensive income (loss):	'	'	'
Change in net actuarial loss	2,268	37	-1,468
Tax effect on change in net actuarial loss	-794	-13	514
Unrealized holding gains arising during the period	22,094	4,388	191
Tax effect on unrealized gains arising during the period	-7,733	-1,536	-67
Reclassification adjustment for gains included in net income (loss)	-10,540	-2,189	-3,633
Tax effect on reclassification adjustment for gains included in net income (loss)	3,689	766	1,272
Other comprehensive income (loss), net of tax	8,984	1,453	-3,191
Ending Balance	16,883	7,899	'
Pension Liability [Member]	'	'	'
Accumulated Other Comprehensive Income Loss [Line Items]	'	'	'
Beginning Balance	-2,954	-2,978	-2,024
Other comprehensive income (loss):	'	'	'
Change in net actuarial loss	2,268	37	-1,468
Tax effect on change in net actuarial loss	-794	-13	514
Other comprehensive income (loss), net of tax	1,474	24	-954
Ending Balance	-1,480	-2,954	-2,978
Unrealized Gains (Loss) [Member]	'	'	'
Accumulated Other Comprehensive Income Loss [Line Items]	'	'	'
Beginning Balance	10,853	9,424	11,661
Other comprehensive income (loss):	'	'	'
Unrealized holding gains arising during the period	22,094	4,388	191
Tax effect on unrealized gains arising during the period	-7,733	-1,536	-67
Reclassification adjustment for gains included in net income (loss)	-10,540	-2,189	-3,633
Tax effect on reclassification adjustment for gains included in net income (loss)	3,689	766	1,272
Other comprehensive income (loss), net of tax	7,510	1,429	-2,237
Ending Balance	18,363	10,853	9,424
Accumulated Other Comprehensive Income (Loss) [Member]	'	'	'
Accumulated Other Comprehensive Income Loss [Line Items]	'	'	'
Beginning Balance	7,899	6,446	9,637
Other comprehensive income (loss):	'	'	'
Change in net actuarial loss	2,268	37	-1,468
Tax effect on change in net actuarial loss	-794	-13	514
Unrealized holding gains arising during the period	22,094	4,388	191
Tax effect on unrealized gains arising during the period	-7,733	-1,536	-67
Reclassification adjustment for gains included in net income (loss)	-10,540	-2,189	-3,633
Tax effect on reclassification adjustment for gains included in net income (loss)	3,689	766	1,272
Other comprehensive income (loss), net of tax	8,984	1,453	-3,191
Ending Balance	16,883	7,899	6,446
Parent Company [Member]	'	'	'
Other comprehensive income (loss):	'	'	'
Ending Balance	$16,883	$7,899	'

Unaudited_Selected_Quarterly_F2

Unaudited Selected Quarterly Financial Information (Schedule of Quarterly Financial Information) (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Unaudited Selected Quarterly Financial Information [Abstract]	'	'	'	'	'	'	'	'	'	'	'
Total revenue	$88,375	$108,613	$99,299	$93,141	$88,623	$85,620	$84,571	$82,986	$389,428	$341,800	$322,771
Total expense	83,613	99,141	104,616	90,978	86,336	80,599	88,722	82,769	378,348	338,426	342,558
Income (loss) before tax	4,762	9,472	-5,317	2,163	2,287	5,021	-4,151	217	11,080	3,374	-19,787
Income tax expense (benefit)	1,334	3,198	-2,166	469	504	1,350	-2,351	23	2,835	-474	-8,954
Net income (loss)	3,428	6,274	-3,151	1,694	1,783	3,671	-1,800	194	8,245	3,848	-10,833
Net income attributable to non-controlling interest	'	'	'	'	'	258	43	23	'	324	58
Net income (loss) attributable to Hallmark Financial Services, Inc.	$3,428	$6,274	($3,151)	$1,694	$1,783	$3,413	($1,843)	$171	$8,245	$3,524	($10,891)
Basic earnings (loss) per share:	$0.18	$0.33	($0.16)	$0.09	$0.09	$0.18	($0.10)	$0.01	$0.43	$0.18	($0.55)
Diluted earnings (loss) per share:	$0.18	$0.32	($0.16)	$0.09	$0.09	$0.18	($0.10)	$0.01	$0.43	$0.18	($0.55)

Schedule_II_Condensed_Financia1

Schedule II - Condensed Financial Information of Registrant (Parent Company Only) (Balance Sheet) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
In Thousands, unless otherwise specified
ASSETS	'	'	'	'
Cash and cash equivalents	$141,666	$85,145	$74,471	$60,519
Investment in subsidiaries	1,702	1,702	'	'
Other assets	8,412	10,985	'	'
Total assets	909,023	790,468	'	'
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'	'	'
Revolving credit facility payable	1,473	1,473	'	'
Subordinated debt securities	56,702	56,702	'	'
Accrued Income Taxes	719	1,518	'	'
Accounts payable and other accrued expenses	19,006	23,305	'	'
Total liabilities	670,905	569,931	'	'
Stockholders' equity:	'	'	'	'
Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2013 and in 2012	3,757	3,757	'	'
Capital in excess of par value	122,827	122,475	'	'
Retained earnings	106,209	97,964	'	'
Accumulated other comprehensive income	16,883	7,899	'	'
Treasury stock (1,609,374 shares in 2013 and 2012), at cost	-11,558	-11,558	'	'
Total stockholders equity	238,118	220,537	215,572	235,278
Total liabilities and stockholders' equity	909,023	790,468	'	'
Parent Company [Member]	'	'	'	'
ASSETS	'	'	'	'
Cash and cash equivalents	8,063	1,112	3,309	10,983
Investment in subsidiaries	316,295	296,258	'	'
Deferred federal income taxes	930	2,112	'	'
Other assets	3,729	3,416	'	'
Total assets	329,017	302,898	'	'
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'	'	'
Revolving credit facility payable	1,473	1,473	'	'
Subordinated debt securities	56,702	56,702	'	'
Accrued Income Taxes	3,353	7,047	'	'
Accounts payable and other accrued expenses	29,371	17,139	'	'
Total liabilities	90,899	82,361	'	'
Stockholders' equity:	'	'	'	'
Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2013 and in 2012	3,757	3,757	'	'
Capital in excess of par value	122,827	122,475	'	'
Retained earnings	106,209	97,964	'	'
Accumulated other comprehensive income	16,883	7,899	'	'
Treasury stock (1,609,374 shares in 2013 and 2012), at cost	-11,558	-11,558	'	'
Total stockholders equity	238,118	220,537	'	'
Total liabilities and stockholders' equity	$329,017	$302,898	'	'

Schedule_II_Condensed_Financia2

Schedule II - Condensed Financial Information of Registrant (Parent Company Only) (Balance Sheet Extra) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Common stock, par value (in dollars per share)	$0.18	$0.18
Common stock, authorized shares	33,333,333	33,333,333
Common stock, issued shares	20,872,831	20,872,831
Treasury stock, shares	1,609,374	1,609,374
Parent Company [Member]	'	'
Common stock, par value (in dollars per share)	$0.18	$0.18
Common stock, authorized shares	33,333,333	33,333,333
Common stock, issued shares	20,872,831	20,872,831
Treasury stock, shares	1,609,374	1,609,374

Schedule_II_Condensed_Financia3

Schedule II - Condensed Financial Information of Registrant (Parent Company Only) (Comprehensive (loss) Income) (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Investment loss, net of expenses	'	'	'	'	'	'	'	'	$12,884	$15,293	$15,880
Management fee income	'	'	'	'	'	'	'	'	5,830	5,957	6,826
Total revenues	88,375	108,613	99,299	93,141	88,623	85,620	84,571	82,986	389,428	341,800	322,771
Interest expense	'	'	'	'	'	'	'	'	4,599	4,634	4,631
Amortization of intangible assets	'	'	'	'	'	'	'	'	3,115	3,586	3,586
Loss before equity in undistributed earnings (loss) of subsidiaries and income tax benefit	4,762	9,472	-5,317	2,163	2,287	5,021	-4,151	217	11,080	3,374	-19,787
Income tax benefit	1,334	3,198	-2,166	469	504	1,350	-2,351	23	2,835	-474	-8,954
Net income (loss) attributable to Hallmark Financial Services, Inc.	3,428	6,274	-3,151	1,694	1,783	3,413	-1,843	171	8,245	3,524	-10,891
Comprehensive income (loss)	'	'	'	'	'	'	'	'	17,229	4,977	-14,082
Parent Company [Member]	'	'	'	'	'	'	'	'	'	'	'
Investment loss, net of expenses	'	'	'	'	'	'	'	'	-190	-181	-194
Management fee income	'	'	'	'	'	'	'	'	8,518	8,485	7,288
Total revenues	'	'	'	'	'	'	'	'	8,328	8,304	7,094
Operating expenses	'	'	'	'	'	'	'	'	7,764	8,079	7,851
Interest expense	'	'	'	'	'	'	'	'	4,599	4,634	4,631
Amortization of intangible assets	'	'	'	'	'	'	'	'	'	17	42
Operating Costs and Expenses	'	'	'	'	'	'	'	'	12,363	12,730	12,524
Loss before equity in undistributed earnings (loss) of subsidiaries and income tax benefit	'	'	'	'	'	'	'	'	-4,035	-4,426	-5,430
Income tax benefit	'	'	'	'	'	'	'	'	-1,227	-1,627	-1,669
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest, Total	'	'	'	'	'	'	'	'	-2,808	-2,799	-3,761
Equity in undistributed share of earnings (loss) in subsidiaries	'	'	'	'	'	'	'	'	11,053	6,323	-7,130
Net income (loss) attributable to Hallmark Financial Services, Inc.	'	'	'	'	'	'	'	'	8,245	3,524	-10,891
Comprehensive income (loss)	'	'	'	'	'	'	'	'	$17,229	$4,977	($14,082)

Schedule_II_Condensed_Financia4

Schedule II - Condensed Financial Information of Registrant (Parent Company Only) (Cash Flows) (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:	'	'	'	'	'	'	'	'	'	'	'
Net income (loss)	$3,428	$6,274	($3,151)	$1,694	$1,783	$3,671	($1,800)	$194	$8,245	$3,848	($10,833)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:	'	'	'	'	'	'	'	'	'	'	'
Depreciation and amortization expense	'	'	'	'	'	'	'	'	4,300	4,421	5,064
Deferred income tax expense (benefit)	'	'	'	'	'	'	'	'	-257	-2,851	-2,895
Realized loss	'	'	'	'	'	'	'	'	-10,540	-1,943	-3,633
Change in current federal income tax (recoverable) payable	'	'	'	'	'	'	'	'	-799	8,256	-2,470
Change in all other liabilities	'	'	'	'	'	'	'	'	-6,551	5,396	-5,707
Change in all other assets	'	'	'	'	'	'	'	'	17,141	5,983	3,587
Net cash provided by operating activities	'	'	'	'	'	'	'	'	68,338	33,682	24,610
Cash flows from investing activities:	'	'	'	'	'	'	'	'	'	'	'
Purchases of property and equipment, net	'	'	'	'	'	'	'	'	-673	-107	-1,586
Purchase of fixed maturity and equity securities	'	'	'	'	'	'	'	'	-222,399	-167,626	-265,684
Maturities and redemptions of investment securities	'	'	'	'	'	'	'	'	214,738	148,968	280,918
Net cash used in investing activities	'	'	'	'	'	'	'	'	-11,817	-18,100	-3,781
Cash flows from financing activities:	'	'	'	'	'	'	'	'	'	'	'
Proceeds from exercise of employee stock options	'	'	'	'	'	'	'	'	'	'	99
Purchase of treasury shares	'	'	'	'	'	'	'	'	'	'	-6,401
Activity under revolving credit facility, net	'	'	'	'	'	'	'	'	'	-2,577	1,250
Net cash used in financing activities	'	'	'	'	'	'	'	'	'	-4,908	-6,877
Increase in cash and cash equivalents	'	'	'	'	'	'	'	'	56,521	10,674	13,952
Cash and cash equivalents at beginning of year	'	'	'	85,145	'	'	'	74,471	85,145	74,471	60,519
Cash and cash equivalents at end of year	141,666	'	'	'	85,145	'	'	'	141,666	85,145	74,471
Supplemental cash flow information:	'	'	'	'	'	'	'	'	'	'	'
Interest paid	'	'	'	'	'	'	'	'	-4,599	-4,656	-4,620
Income taxes (paid) recovered	'	'	'	'	'	'	'	'	-3,891	5,879	3,589
Parent Company [Member]	'	'	'	'	'	'	'	'	'	'	'
Cash flows from operating activities:	'	'	'	'	'	'	'	'	'	'	'
Net income (loss)	'	'	'	'	'	'	'	'	8,245	3,524	-10,891
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:	'	'	'	'	'	'	'	'	'	'	'
Depreciation and amortization expense	'	'	'	'	'	'	'	'	92	113	168
Deferred income tax expense (benefit)	'	'	'	'	'	'	'	'	1,182	-1,725	-215
Undistributed share of (earnings) loss of subsidiaries	'	'	'	'	'	'	'	'	-11,053	-6,323	7,130
Change in current federal income tax (recoverable) payable	'	'	'	'	'	'	'	'	-3,694	4,030	-4,838
Change in all other liabilities	'	'	'	'	'	'	'	'	12,232	357	5,155
Change in all other assets	'	'	'	'	'	'	'	'	63	450	1,074
Net cash provided by operating activities	'	'	'	'	'	'	'	'	7,067	426	-2,417
Cash flows from investing activities:	'	'	'	'	'	'	'	'	'	'	'
Purchases of property and equipment, net	'	'	'	'	'	'	'	'	-116	-46	-205
Net cash used in investing activities	'	'	'	'	'	'	'	'	-116	-46	-205
Cash flows from financing activities:	'	'	'	'	'	'	'	'	'	'	'
Proceeds from exercise of employee stock options	'	'	'	'	'	'	'	'	'	'	99
Purchase of treasury shares	'	'	'	'	'	'	'	'	'	'	-6,401
Activity under revolving credit facility, net	'	'	'	'	'	'	'	'	'	-2,577	1,250
Net cash used in financing activities	'	'	'	'	'	'	'	'	'	-2,577	-5,052
Increase in cash and cash equivalents	'	'	'	'	'	'	'	'	6,951	-2,197	-7,674
Cash and cash equivalents at beginning of year	'	'	'	1,112	'	'	'	3,309	1,112	3,309	10,983
Cash and cash equivalents at end of year	8,063	'	'	'	1,112	'	'	'	8,063	1,112	3,309
Supplemental cash flow information:	'	'	'	'	'	'	'	'	'	'	'
Interest paid	'	'	'	'	'	'	'	'	-4,599	-4,656	-4,620
Income taxes (paid) recovered	'	'	'	'	'	'	'	'	($1,285)	$3,932	($3,383)

Schedule_III_Supplementary_Ins1

Schedule III - Supplementary Insurance Information (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Supplementary Insurance Information, by Segment [Line Items]	'	'	'
Deferred Policy Acquisition Costs	$22,586	$24,911	$22,554
Future Policy Benefits, Losses, Claims and Loss Adjustment Expenses	382,640	313,416	296,945
Unearned Premiums	185,303	162,502	146,104
Premium Revenue	360,541	319,436	293,041
Net Investment Income	12,884	15,293	15,880
Benefits Claims, Losses and Settlement Expenses	261,345	226,414	239,235
Amortization of Deferred Policy Acquisition Costs	57,277	59,805	47,775
Other Operating Expenses	106,964	106,150	96,728
Net Premiums Written	360,765	332,489	303,876
Personal Segment [Member]	'	'	'
Supplementary Insurance Information, by Segment [Line Items]	'	'	'
Deferred Policy Acquisition Costs	660	4,952	6,020
Future Policy Benefits, Losses, Claims and Loss Adjustment Expenses	38,294	40,387	53,280
Unearned Premiums	17,989	21,125	26,307
Premium Revenue	63,800	81,451	92,962
Net Investment Income	2,065	2,449	2,470
Benefits Claims, Losses and Settlement Expenses	52,656	69,606	101,030
Amortization of Deferred Policy Acquisition Costs	17,759	17,250	13,865
Other Operating Expenses	16,957	26,413	29,706
Net Premiums Written	45,644	76,345	95,655
Standard Commercial Segment [Member]	'	'	'
Supplementary Insurance Information, by Segment [Line Items]	'	'	'
Deferred Policy Acquisition Costs	6,124	5,968	5,976
Future Policy Benefits, Losses, Claims and Loss Adjustment Expenses	111,473	103,610	100,487
Unearned Premiums	36,309	35,073	32,854
Premium Revenue	78,176	69,155	64,586
Net Investment Income	5,031	4,925	4,061
Benefits Claims, Losses and Settlement Expenses	56,143	52,828	50,940
Amortization of Deferred Policy Acquisition Costs	8,254	10,825	12,721
Other Operating Expenses	25,313	22,742	20,589
Net Premiums Written	79,466	70,091	63,944
Specialty Commercial Segment [Member]	'	'	'
Supplementary Insurance Information, by Segment [Line Items]	'	'	'
Deferred Policy Acquisition Costs	15,802	13,991	10,558
Future Policy Benefits, Losses, Claims and Loss Adjustment Expenses	232,873	169,419	143,178
Unearned Premiums	131,005	106,304	86,943
Premium Revenue	218,565	168,830	135,493
Net Investment Income	11,021	9,435	7,416
Benefits Claims, Losses and Settlement Expenses	152,546	103,980	87,265
Amortization of Deferred Policy Acquisition Costs	31,264	31,730	21,189
Other Operating Expenses	56,974	49,170	39,471
Net Premiums Written	235,655	186,053	144,277
Corporate [Member]	'	'	'
Supplementary Insurance Information, by Segment [Line Items]	'	'	'
Net Investment Income	-5,233	-1,516	1,933
Other Operating Expenses	$7,720	$7,825	$6,962

Schedule_IV_Reinsurance_Detail

Schedule IV - Reinsurance (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]	'	'	'
Gross Amount	$434,022	$369,735	$344,642
Ceded to Other Companies	76,685	54,413	57,039
Assumed From Other Companies	3,204	4,114	5,438
Net Amount	360,541	319,436	293,041
Percentage of Amount Assumed to Net	0.89%	1.29%	1.86%
Property, Liability and Casualty Insurance Segment [Member]	'	'	'
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]	'	'	'
Gross Amount	434,022	369,735	344,642
Ceded to Other Companies	76,685	54,413	57,039
Assumed From Other Companies	3,204	4,114	5,438
Net Amount	$360,541	$319,436	$293,041
Percentage of Amount Assumed to Net	0.89%	1.29%	1.86%

Schedule_VI_Supplemental_Infor1

Schedule VI - Supplemental Information Concerning Property-Casualty Insurance Operations (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Supplemental Information For Property, Casualty Insurance Underwriters [Abstract]	'	'	'
Deferred Policy Acquisition Costs	$22,586	$24,911	$22,554
Reserves for Unpaid Claims and Claim Adjustment Expenses	382,640	313,416	296,945
Unearned Premiums	185,303	162,502	146,104
Earned Premiums	360,541	319,436	293,041
Net Investment Income	12,884	15,293	15,880
Claims and Claim Adjustment Expenses Incurred Related to Current Year	251,391	230,089	222,869
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	9,954	-3,675	16,366
Amortization of Deferred Policy Acquisition Costs	57,277	59,805	47,775
Paid Claims and Claims Adjustment Expenses	212,709	217,483	206,873
Premiums Written	$360,765	$332,489	$303,876