Hallmark Financial Services (HALL) 10-K 10 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Mar. 10, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	HALLMARK FINANCIAL SERVICES INC
Entity Central Index Key	819,913
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	hall
Entity Common Stock, Shares Outstanding		19,007,727
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015
Entity Well-Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 151

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Debt securities, available-for-sale, at fair value (cost; $538,629 in 2015 and $450,770 in 2014)	$ 531,325	$ 450,785
Equity securities, available-for-sale, at fair value (cost; $24,951 in 2015 and $25,360 in 2014)	47,504	56,444
Total investments	578,829	507,229
Cash and cash equivalents	114,446	130,985
Restricted cash	8,522	11,914
Ceded unearned premiums	65,094	53,376
Premiums receivable	83,376	71,003
Accounts receivable	2,005	3,141
Receivable for securities	10,424	932
Reinsurance recoverable	114,287	109,719
Deferred policy acquisition costs	20,366	20,746
Goodwill	44,695	44,695
Intangible assets, net	14,959	17,427
Deferred federal income taxes, net	3,360
Federal income tax recoverable	1,779
Prepaid expenses	3,213	1,823
Other assets	11,245	7,879
Total assets	1,076,600	980,869
LIABILITIES AND STOCKHOLDERS' EQUITY
Revolving credit facility payable	30,000
Subordinated debt securities	56,702	56,702
Reserves for unpaid losses and loss adjustment expenses	450,878	415,135
Unearned premiums	216,407	196,826
Reinsurance balances payable	33,741	26,403
Pension liability	2,496	2,619
Payable for securities	1,097	1,321
Federal income tax payable		968
Deferred federal income taxes, net		3,092
Accounts payable and other accrued expenses	23,253	25,766
Total liabilities	814,574	728,832
Stockholders' equity:
Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2015 and 2014	3,757	3,757
Additional paid-in capital	123,480	123,194
Retained earnings	141,501	119,638
Accumulated other comprehensive income	7,418	17,801
Treasury stock (1,775,512 shares in 2015 and 1,655,306 in 2014), at cost	(14,130)	(12,353)
Total stockholders equity	262,026	252,037
Liabilities and equity, total	$ 1,076,600	$ 980,869

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Consolidated Balance Sheets Parenthetical [Abstract]
Debt securities, available-for-sale, cost (in dollars)	$ 538,629	$ 450,770
Equity securities, available for sale, cost (in dollars)	$ 24,951	$ 25,360
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	1,775,512	1,655,306

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements of Operations [Abstract]
Gross premiums written	$ 514,223	$ 473,218	$ 460,027
Ceded premiums written	(157,279)	(148,866)	(99,262)
Net premiums written	356,944	324,352	360,765
Change in unearned premiums	(7,863)	(3,135)	(224)
Net premiums earned	349,081	321,217	360,541
Investment income (loss), net of expenses	13,969	12,383	12,884
Net realized gains	2,503	134	10,540
Finance charges	5,952	5,279	5,830
Fees and Commissions	213	(1,694)	(487)
Other income	684	47	120
Total revenues	372,402	337,366	389,428
Losses and loss adjustment expenses	230,149	210,055	261,345
Operating expenses	103,993	101,427	109,289
Interest expense	3,906	4,576	4,599
Amortization of intangible assets	2,468	2,526	3,115
Total expenses	340,516	318,584	378,348
Income (loss) before equity in undistributed earnings (loss) of subsidiaries and income tax benefit	31,886	18,782	11,080
Income tax expense (benefit)	10,023	5,353	2,835
Net income (loss)	21,863	13,429	8,245
Net income (loss) attributable to Hallmark Financial Services, Inc.	$ 21,863	$ 13,429	$ 8,245
Net income (loss) per share attributable to Hallmark Financial Services, Inc. common stockholders:
Basic (in dollars per share)	$ 1.14	$ 0.70	$ 0.43
Diluted (in dollars per share)	$ 1.13	$ 0.69	$ 0.43

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net income (loss)	$ 21,863	$ 13,429	$ 8,245
Other comprehensive income:
Change in net actuarial gain (loss)	43	(1,723)	2,268
Tax effect on change in net actuarial gain (loss)	(15)	603	(794)
Unrealized holding (losses) gains arising during the period	(10,191)	3,543	22,094
Tax effect on unrealized holding (losses) gains arising during the period	3,567	(1,240)	(7,733)
Reclassification adjustment for gains included in net realized gains	(5,826)	(408)	(10,540)
Tax effect on reclassification adjustment for gains included in income tax expense	2,039	143	3,689
Other comprehensive income (loss), net of tax	(10,383)	918	8,984
Comprehensive income (loss)	$ 11,480	$ 14,347	$ 17,229

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Treasury Stock [Member]	Total
Beginning balance at Dec. 31, 2012	$ 3,757	$ 122,475	$ 97,964	$ 7,899	$ 11,558	$ 220,537
Beginning balance (in shares) at Dec. 31, 2012	20,873,000				1,609,000
Equity incentive plan activity		352				352
Net income (loss)			8,245			8,245
Other comprehensive income, 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	20,873,000				1,609,000
Acquisition of treasury shares					$ (1,805)	(1,805)
Acquisition of treasury shares (in shares)					181,000
Equity incentive plan activity		222				222
Stock options exercised		145			$ 1,010	1,155
Stock options, exercised (in shares)					(135,000)
Net income (loss)			13,429			13,429
Other comprehensive income, net of tax				918		918
Ending balance at Dec. 31, 2014	$ 3,757	123,194	119,638	17,801	$ (12,353)	252,037
Ending balance (in shares) at Dec. 31, 2014	20,873,000				1,655,000
Acquisition of treasury shares					$ (2,532)	(2,532)
Acquisition of treasury shares (in shares)					221,000
Equity incentive plan activity		383				383
Stock options exercised		(97)			$ 755	$ 658
Stock options, exercised (in shares)					(100,000)	(91,827)
Net income (loss)			21,863			$ 21,863
Other comprehensive income, net of tax				(10,383)		(10,383)
Ending balance at Dec. 31, 2015	$ 3,757	$ 123,480	$ 141,501	$ 7,418	$ (14,130)	$ 262,026
Ending balance (in shares) at Dec. 31, 2015	20,873,000				1,776,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income (loss)	$ 21,863	$ 13,429	$ 8,245
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization expense	3,516	3,224	4,300
Deferred federal income taxes	(1,030)	(393)	(257)
Net realized gains	(2,503)	(134)	(10,540)
Share-based payments expense	383	222	352
Change in ceded unearned premiums	(11,718)	(8,388)	(22,577)
Change in premiums receivable	(12,373)	154	(4,474)
Change in accounts receivable	1,136	(759)	728
Change in deferred policy acquisition costs	380	1,840	2,325
Change in unpaid losses and loss adjustment expenses	35,743	32,495	69,224
Change in unearned premiums	19,581	11,523	22,801
Change in reinsurance recoverable	(4,568)	(32,901)	(24,848)
Change in reinsurance balances payable	7,338	5,805	13,268
Change in current federal income tax (recoverable) payable	(2,747)	249	(799)
Change in all other liabilities	(1,420)	7,946	(6,551)
Change in all other assets	(645)	(628)	17,141
Net cash provided by operating activities	52,936	33,684	68,338
Cash flows from investing activities:
Purchases of property and equipment, net	(3,608)	(546)	(673)
Net transfers from (into) restricted cash	3,392	276	(3,483)
Purchases of investment securities	(265,482)	(188,749)	(222,399)
Maturities, sales and redemptions of investment securities	169,409	146,777	214,738
Net cash used in investing activities	(96,289)	(42,242)	(11,817)
Cash flows from financing activities:
Activity under revolving credit facility, net	30,000	(1,473)
Payment of debt issuance costs	(96)
Payment of contingent consideration	(1,216)
Proceeds from exercise of employee stock options	658	1,155
Purchase of treasury shares	(2,532)	(1,805)
Net cash provided by (used in) financing activities	26,814	(2,123)
(Decrease) Increase in cash and cash equivalents	(16,539)	(10,681)	56,521
Cash and cash equivalents at beginning of year	130,985	141,666	85,145
Cash and cash equivalents at end of year	114,446	130,985	141,666
Supplemental cash flow information:
Interest paid	3,906	4,576	4,599
Income taxes paid	13,800	5,497	3,891
Supplemental schedule of non-cash activities:
Change in receivable for securities related to investment disposals that settled after the balance sheet date	(9,492)	388	(1,317)
Change in payable for securities related to investment purchases that settled after the balance sheet date	$ (224)	$ 1,115	$ 206

Accounting Policies

Accounting Policies	12 Months Ended
	Dec. 31, 2015
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 market, distribute, underwrite and service our property/casualty insurance products primarily through subsidiaries whose operations are organized into product-specific operating units that are supported by our insurance company subsidiaries . Our Standard Commercial P&C operating 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 operating 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”). Effective July 1, 2015, this operating unit no longer markets or retains any risk on new or renewal policies. Our MGA Commercial Products operating 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 Specialty Commercial operating 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, (iv) satellite launch insurance products, and (v) primary/excess commercial property coverages for both catastrophe and non-catastrophe exposures. Our Specialty Commercial operating 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 Specialty Personal Lines operating unit handles personal insurance products and services and is comprised of American Hallmark General Agency, Inc. (“AHGA”) and Hallmark Claims Services, Inc. (“HCS”). Our insurance company subsidiaries supporting these operating 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 operating units are segregated into three reportable industry segments for financial accounting purposes. The Standard Commercial Segment includes our Standard Commercial P&C operating unit and our Workers Compensation operating unit. The Specialty Commercial Segment includes our MGA Commercial Products operating unit and our Specialty Commercial operating unit, as well as certain specialty risk programs (“Specialty Programs”) which are managed at the parent level. The Personal Segment consists solely of our Specialty Personal Lines operating 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 $45.3 million and $47.6 million, as of December 31, 2015 and 2014, 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, 2015 and 2014, 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 2015, 2014 and 2013, we deferred $32.3 million, $39.1 million and $55.0 million of policy acquisition costs and amortized $32.7 million, $40.9 million and $57.3 million of deferred policy acquisition costs, respectively. Therefore, the net (amortization) deferrals of policy acquisition costs were ($0.4) million, ($1.8) million and ($2.3) million for 2015, 2014 and 2013, 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 $17.9 million and $14.8 million, at December 31, 2015 and 2014, 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 2015, 2014 and 2013 was $1.0 million, $0.7 million and $1.2 million, respectively. Accumulated depreciation was $13.7 million and $13.2 million at December 31, 2015 and 2014, 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, 2015, 2014 and 2013. 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. 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 $11.2 million, $11.5 million and $13.2 million for the years ended December 31, 2015, 2014, and 2013, 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 operating unit marketed policies on behalf of Clarendon National Insurance Company (“Clarendon”), a third-party insurer. Through December 31, 2008, all business of our MGA Commercial Products operating 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 operating unit and Clarendon. Treaty Effective Dates 7/1/2001 7/1/2002 7/1/2003 7/1/2004 Provisional loss ratio 60.0% 59.0% 59.0% 64.2% Estimated ultimate loss ratio recorded at December 31, 2015 63.5% 64.5% 61.6% 66.1% As of December 31, 2015, we had a payable of $1.7 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 MGA Commercial Products operating unit and Republic. Treaty Effective Dates 1/1/2006 1/1/2007 1/1/2008 Provisional loss ratio 65.0% 65.0% 65.0% Estimated ultimate loss ratio recorded at December 31, 2015 58.8% 64.0% 59.7% As of December 31, 2015, we had a net payable of $0.3 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. 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 May 2014, the FASB issued guidance which revises the criteria for revenue recognition. Insurance contracts are excluded from the scope of the new guidance. Under the guidance, the transaction price is attributed to underlying performance obligations in the contract and revenue is recognized as the entity satisfies the performance obligations and transfers control of a good or service to the customer. Incremental costs of obtaining a contract may be capitalized to the extent the entity expects to recover those costs. The guidance is effective for reporting periods beginning after December 15, 2017 and is to be applied retrospectively. We are in the process of evaluating the impact of adoption, which is not expected to be material to our results of operations or financial position. In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis" (Topic 810). ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether entities should be consolidated if they are deemed variable interest entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. We have adopted this standard as of the effective date, and the adoption did not impact our financial statements. In May 2015, the FASB issued guidance which requires additional disclosures about short-duration contracts for products in effect for typically a year or less. The disclosures will focus on the liability for unpaid claims and claim adjustment expenses. This guidance is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2016. We are in the process of evaluating the impact of the adoption, which is not expected to be material to our results of operations or financial position .

Investments

Investments	12 Months Ended
	Dec. 31, 2015
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): As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. Government $ 76,323 $ 7 $ (61) $ 76,269 Corporate bonds 122,894 637 (1,822) 121,709 Collateralized corporate bank loans 83,434 44 (1,882) 81,596 Municipal bonds 196,446 1,888 (5,966) 192,368 Mortgage-backed 59,532 155 (304) 59,383 Total debt securities 538,629 2,731 (10,035) 531,325 Total equity securities 24,951 23,391 (838) 47,504 Total debt and equity securities $ 563,580 $ 26,122 $ (10,873) $ 578,829 As of December 31, 2014 U.S. Treasury securities and obligations of U.S. Government $ 93,280 $ 29 $ (4) $ 93,305 Corporate bonds 28,643 884 (85) 29,442 Collateralized corporate bank loans 115,358 206 (1,915) 113,649 Municipal bonds 161,546 2,384 (1,601) 162,329 Mortgage-backed 51,943 487 (370) 52,060 Total debt securities 450,770 3,990 (3,975) 450,785 Total equity securities 25,360 31,086 (2) 56,444 Total debt and equity securities $ 476,130 $ 35,076 $ (3,977) $ 507,229 Major categories of net investment income are summarized as follows (in thousands): Twelve Months Ended December 31 2015 2014 2013 U.S. Treasury securities and obligations of U.S. Government $ 670 $ 395 $ 143 Corporate bonds 1,435 1,378 2,341 Collateralized corporate bank loans 4,727 4,400 4,653 Municipal bonds 5,901 5,232 5,245 Mortgage-backed 1,288 995 737 Equity securities 673 509 484 Cash and cash equivalents 148 230 157 14,842 13,139 13,760 Investment expenses (873) (756) (876) Investment income, net of expenses $ 13,969 $ 12,383 $ 12,884 No investments in any entity or its affiliates exceeded 10% of stockholders’ equity at December 31, 2015 or 2014. Major categories of net realized gains on investments are summarized as follows (in thousands): Twelve Months Ended December 31 2015 2014 2013 U.S. Treasury securities and obligations of U.S. Government $ - $ - $ - Corporate bonds - 263 853 Collateralized corporate bank loans 126 109 373 Municipal bonds (83) (140) (156) Mortgage-backed 240 32 - Equity securities 5,543 144 9,470 Gain on investments 5,826 408 10,540 Other-than-temporary impairments (3,323) (274) - Net realized gains $ 2,503 $ 134 $ 10,540 We realized gross gains on investments of $6.7 million , $0.6 million, and $10.9 million during the years ended December 31, 2015, 2014 and 2013, respectively. We realized gross losses on investments of $0.9 million, $0.2 million and $0.4 million during the years ended December 31, 2015, 2014 and 2013, respectively. We recorded proceeds from the sale of investment securities of $51.7 million, $15.3 million and $33.4 million during the years ended December 31, 2015, 2014 and 2013, 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, 2015 and December 31, 2014 (in thousands): As of December 31, 2015 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 $ 41,428 $ (61) $ - $ - $ 41,428 $ (61) Corporate bonds 96,475 (1,822) - - 96,475 (1,822) Collateralized corporate bank loans 65,868 (1,758) 3,532 (124) 69,400 (1,882) Municipal bonds 44,525 (488) 25,310 (5,478) 69,835 (5,966) Mortgage-backed 36,251 (302) 48 (2) 36,299 (304) Total debt securities 284,547 (4,431) 28,890 (5,604) 313,437 (10,035) Total equity securities 6,584 (838) - - 6,584 (838) Total debt and equity securities $ 291,131 $ (5,269) $ 28,890 $ (5,604) $ 320,021 $ (10,873) As of December 31, 2014 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 $ 15,005 $ (4) $ - $ - $ 15,005 $ (4) Corporate bonds 7,552 (85) - - 7,552 (85) Collateralized corporate bank loans 64,712 (824) 8,898 (1,091) 73,610 (1,915) Municipal bonds 50,546 (945) 15,684 (656) 66,230 (1,601) Mortgage-backed 20,469 (365) 2,966 (5) 23,435 (370) Total debt securities 158,284 (2,223) 27,548 (1,752) 185,832 (3,975) Total equity securities 129 (2) - - 129 (2) Total debt and equity securities $ 158,413 $ (2,225) $ 27,548 $ (1,752) $ 185,961 $ (3,977) At December 31, 2015, the gross unrealized losses more than twelve months old were attributable to 39 debt security positions. At December 31, 2014, the gross unrealized losses more than twelve months old were attributable to 24 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 recognized other-than-temporary losses on our debt securities portfolio of $3.3 million during 2015. 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, 2015 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 Cost Fair Value (in thousands) Due in one year or less $ 76,739 $ 76,560 Due after one year through five years 236,507 234,213 Due after five years through ten years 106,046 101,387 Due after ten years 59,805 59,782 Mortgage-backed 59,532 59,383 $ 538,629 $ 531,325 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 $17.6 million at December 31, 2015 and a carrying value of $20.3 million at December 31, 2014.

Fair Value

Fair Value	12 Months Ended
	Dec. 31, 2015
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. 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, 2015 and December 31, 2014 (in thousands). As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ - $ 76,269 $ - $ 76,269 Corporate bonds - 121,709 - 121,709 Collateralized corporate bank loans - 81,596 - 81,596 Municipal bonds - 178,281 14,087 192,368 Mortgage-backed - 59,383 - 59,383 Total debt securities - 517,238 14,087 531,325 Total equity securities 47,504 - - 47,504 Total debt and equity securities $ 47,504 $ 517,238 $ 14,087 $ 578,829 As of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ - $ 93,305 $ - $ 93,305 Corporate bonds - 29,442 - 29,442 Collateralized corporate bank loans - 113,402 247 113,649 Municipal bonds - 147,978 14,351 162,329 Mortgage-backed - 52,060 - 52,060 Total debt securities - 436,187 14,598 450,785 Total equity securities 56,444 - - 56,444 Total debt and equity securities $ 56,444 $ 436,187 $ 14,598 $ 507,229 Due to significant unobservable inputs into the valuation model for certain municipal bonds 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. Significant changes in the unobservable inputs in the fair value measurement of our municipal bonds 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, 2015 and 2014 (in thousands). 2015 2014 Beginning balance as of January 1 $ 14,598 $ 17,517 Sales (370) (3,490) Settlements - - Purchases - - Issuances - - Total realized/unrealized gains included in net income - - Net (losses) gains included in other comprehensive income (141) 571 Transfers into Level 3 - - Transfers out of Level 3 - - Ending balance as of December 31 $ 14,087 $ 14,598

Acquisitions, Goodwill and Inta

Acquisitions, Goodwill and Intangible Assets	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets [Abstract]
Acquisitions, Goodwill and Intangible Assets	4. Acquisitions, Goodwill and Intangible Assets: On June 30, 2015, Redpoint Comp Holdings LLC (“Purchaser”) acquired exclusive renewal rights to our current in-force Texas workers compensation policies, together with certain physical assets associated with the administration of such in-force policies. In consideration for such renewal rights and physical assets, Purchaser assumed certain office lease obligations and offered employment to certain of our employees associated with the Workers Compensation operating unit. Purchaser also agreed to administer the run-off of all of our current workers compensation policies and claims for a period of three years. In connection with the transaction, we made a one-time payment to the Purchaser of $ 83,000 . We also agreed not to compete in the workers compensation line of insurance in the State of Texas (with certain exceptions) until after the assumed office lease obligations expire on October 31, 2017. We recorded a gain of $ 0.2 million in Other Income in the Consolidated Statements of Operations on the sale of the renewal rights. On September 15, 2015, we executed Amendment No. 1 to the sale agreement with the Purchaser. Pursuant to the Amendment, the Purchaser has agreed to pay us an additional $ 115,000 and administer the run-off of all of our workers compensation policies and claims in perpetuity or through final conclusion (rather than for three years as contemplated by the original agreement) in consideration of us assigning to Purchaser the commission on all unearned premiums on such policies as of July 1, 2015. We recorded an additional gain of $ 0.4 million in Other Income in the Consolidated Statements of Operations as a result of this Amendment No.1. 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 operating units except for the Specialty Commercial operating unit for which reporting units are at the component level (“one level below”). Our consolidated balance sheet as of December 31, 2015 includes goodwill of acquired businesses of $44.7 million that is assigned to our operating units as follows: Standard Commercial P&C operating unit - $2.1 million; MGA Commercial Products operating unit - $19.8 million; Specialty Commercial operating unit- $17.4 million (comprised of $7.7 million for the primary/excess & umbrella component and $9.7 million for the general aviation and satellite component); and Specialty Personal Lines operating unit - $5.4 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 2015 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 reflect an improved premium rate environment across most of our lines of business that continued throughout 2015. 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 operating 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 2015, 2014, and 2013, 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 2015 2014 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 (19,799) (17,561) Tradename (2,159) (1,929) Management agreement (3,232) (3,232) Non-compete & employment agreements (4,235) (4,235) Total accumulated amortization (29,425) (26,957) Total net carrying amount $ 14,959 $ 17,427 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): 2016 $ 2,468 2017 $ 2,468 2018 $ 2,468 2019 $ 2,468 2020 $ 2,468 The weighted average amortization period for definite-lived intangible assets by major class is as follows: Years Tradename 15 Customer/ agent 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, 2015
Other Assets [Abstract]
Other Assets	5. Other Assets: The following table details our other assets as of December 31, 2015 and 2014 (in thousands): 2015 2014 Profit sharing commission receivable $ 228 $ 274 Accrued investment income 3,876 2,974 Debt issuance costs 1,145 1,104 Investment in unconsolidated trust subsidiaries 1,702 1,702 Fixed assets 4,120 1,620 Other assets 174 205 $ 11,245 $ 7,879

Reserves for Unpaid Losses and

Reserves for Unpaid Losses and Loss Adjustment Expenses	12 Months Ended
	Dec. 31, 2015
Reserves for Unpaid Losses and Loss Adjustment Expenses [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): 2015 2014 2013 Balance at January 1 $ 415,135 $ 382,640 $ 313,416 Less reinsurance recoverable 91,943 70,172 49,584 Net Balance at January 1 323,192 312,468 263,832 Incurred related to: Current year 237,102 215,258 251,391 Prior years (6,953) (5,203) 9,954 Total incurred 230,149 210,055 261,345 Paid related to: Current year 83,132 76,231 101,897 Prior years 122,122 123,100 110,812 Total paid 205,254 199,331 212,709 Net Balance at December 31 348,087 323,192 312,468 Plus reinsurance recoverable 102,791 91,943 70,172 Balance at December 31 $ 450,878 $ 415,135 $ 382,640 The $7.0 million favorable development, $5.2 million favorable development and $10.0 million unfavorable development in prior accident years recognized in 2015, 2014 and 2013, respectively, represent normal changes in our loss reserve estimates. In 2015 and 2014, 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. In 2013, 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. 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 $7.0 million decrease in reserves for unpaid losses and LAE recognized in 2015 was attributable to $7.4 million favorable development on claims incurred in the 2014 accident year, $1.5 million unfavorable development on claims incurred in the 2013 accident year and $1.1 million favorable development on claims incurred in the 2012 and prior accident years. Our Standard Commercial P&C operating unit, Workers Compensation operating unit, Specialty Commercial operating unit and our MGA Commercial Products operating unit accounted for $5.4 million, $2.0 million, $2.0 million and $0.2 million, respectively, of the decrease in reserves recognized during 2015. The decrease in reserves for our Standard Commercial P&C operating unit was primarily related to our general liability lines of business. The decrease in reserves for our Workers Compensation operating unit was attributable to the 2014, 2013 and 2012 and prior accident years. The decrease in reserves for our Specialty Commercial operating unit was primarily related to $0.9 million favorable development in our general aviation line of business, $0.8 million favorable development in our medical professional liability products and $0.3 million favorable development in our commercial excess liability line of business. The decrease in reserves in our MGA Commercial Products operating unit primarily related to our commercial auto liability and general liability lines of business. These favorable developments were partially offset by unfavorable development of $2.6 million in our Specialty Personal Lines operating unit primarily attributable to the 2014 accident year. The $5.2 million decrease in reserves for unpaid losses and LAE recognized in 2014 was attributable to $7.2 million favorable development on claims incurred in the 2013 accident year, $4.4 million unfavorable development on claims incurred in the 2012 accident year and $2.4 million favorable development on claims incurred in the 2011 and prior accident years. Our Standard Commercial P&C operating unit, Specialty Personal Lines operating unit, Workers Compensation operating unit and Specialty Commercial operating unit accounted for $4.1 million, $2.9 million, $1.9 million and $1.0 million, respectively, of the decrease in reserves recognized during 2014. The decrease in reserves for our Standard Commercial P&C operating unit was primarily related to our commercial auto and general liability lines of business. The decrease in reserves for our Specialty Personal Lines operating unit was primarily attributable to the 2013 accident year. The decrease in reserves for our Workers Compensation operating unit was attributable to the 2013, 2012 and 2011 and prior accident years. The decrease in reserves for our Specialty Commercial operating unit was primarily related to $0.9 million favorable development in our commercial excess liability line of business and $0.4 million favorable development in our medical professional liability products, partially offset by a $0.3 million unfavorable development in our general aviation line of business. These favorable developments were partially offset by unfavorable development of $4.7 million in our MGA Commercial Products operating unit primarily related to our commercial auto liability and general liability lines of business. 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 MGA Commercial Products operating unit and Specialty Personal Lines operating unit accounted for $16.0 million and $1.8 million of the increase in reserves recognized during 2013. The increase in reserves for our MGA Commercial Products operating unit was primarily related to commercial auto liability line of business. The increase in reserves for our Specialty Personal Lines operating 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 operating unit, $2.6 million in our Specialty Commercial operating unit and $1.5 million in our Workers Compensation operating unit. The decrease in reserves for our Standard Commercial P&C operating unit was primarily related to commercial auto and general liability line s of business. The decrease in reserves for our Specialty Commercial operating 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 Specialty Commercial operating unit was $0.4 million of favorable claims development in our primary/ excess & umbrella lines of business. The decrease in reserves for our Workers Compensation operating unit was related to the 2012 and 2011 accident years.

Reinsurance

Reinsurance	12 Months Ended
	Dec. 31, 2015
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, 2015 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): Included in reinsurance recoverable on the consolidated balance sheets are paid loss recoverables of $ XX million and $ 17.0 million as of December 31, 2015 and 2014, respectively. 2015 2014 2013 Premium Written : Direct $ 514,223 $ 473,233 $ 458,020 Assumed - (15) 2,007 Ceded (157,279) (148,866) (99,262) $ 356,944 $ 324,352 $ 360,765 Premium Earned: Direct $ 494,643 $ 461,367 $ 434,022 Assumed - 327 3,204 Ceded (145,562) (140,477) (76,685) $ 349,081 $ 321,217 $ 360,541 Reinsurance recoveries $ 89,892 $ 99,911 $ 45,456 Included in reinsurance recoverable on the consolidated balance sheets are paid loss recoverables of $ 11.1 million and $17.0 million as of December 31, 2015 and 2014, respectively.

Revolving Credit Facility and N

Revolving Credit Facility and Notes Payable	12 Months Ended
	Dec. 31, 2015
Revolving Credit Facility and Notes Payable [Abstract]
Revolving Credit Facility and Notes Payable	8. Revolving Credit Facility and Notes Payable : Our Second Restated Credit Agreement with The Frost National Bank (“Frost”) dated June 30, 2015, reinstates the credit facility with Frost which expired by its terms on April 30, 2015. The Second Restated Credit Agreement also amends certain provisions of the credit facility and restates the agreement with Frost in its entirety. The Second Restated Credit Agreement provides a $15.0 million revolving credit facility, with a $5.0 million letter of credit sub-facility. The outstanding balance of the revolving credit facility bears interest at a rate equal to the prime rate or LIBOR plus 2.5% , at our election. We pay an annual fee of 0.25% of the average daily unused balance of the credit facility and letter of credit fees at the rate of 1.00% per annum. 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, 2015, we were in compliance with all of our covenants and had no outstanding borrowings under this revolving credit facility. On December 17, 2015, we entered into a First Amendment to Second Restated Credit Agreement (the “First Amendment”) and a Revolving Facility B Agreement (the “Facility B Agreement”) with Frost. The First Amendment amend ed the existing Second Restated Credit Agreement with Frost to incorporate the additional credit facility reflected by the Facility B Agreement. The Facility B Agreement provides a new $30.0 million revolving credit facility (“Facility B”), in addition to the existing $15.0 million revolving credit facility with Frost. We may use Facility B loan proceeds solely for the purpose of making capital contributions to AHIC and HIC. We may borrow, repay and reborrow under the Facility B until December 17, 2017, at which time all amounts outstanding under the Facility B are converted to a term loan. In connection with Facility B, we paid Frost a one-time commitment fee of $75,000 and will pay Frost an additional quarterly fee through December 17, 2017 of 0.25% per annum of the average daily unused balance of Facility B. Facility B bears interest at a rate equal to the prime rate or LIBOR plus 3.00% , at our election. Until December 17, 2017 , interest only on amounts from time to time outstanding under Facility B are payable quarterly. Any amounts outstanding on Facility B as of December 17, 2017 are converted to a term loan payable in quarterly installments over five years based on a seven year amortization of principal plus accrued interest. All remaining principal and accrued interest become due and payable on December 17, 2022. The obligations under Facility B are secured by the same collateral as the existing credit facility, being a security interest in the capital stock of AHIC and HIC. Facility B is subject to the same covenants as the existing credit facility . As of December 31 , 2015, we had $30.0 million outstanding under Facility B .

Subordinated Debt Securities

Subordinated Debt Securities	12 Months Ended
	Dec. 31, 2015
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. The initial interest rate on our Trust I subordinated debt securities was 7. 7 25% until June 15, 2015 , after which interest adjusts 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, 2015, the balance of our Trust I subordinated debt was $30.9 million and the interest rate was 3. 76 % per annum. 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, 2015, the balance of our Trust II subordinated debt was $25.8 million.

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2015
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 operating 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 operating unit and the workers compensation insurance products handled by our Workers Compensation operating unit. Effective July 1, 2015, the Workers Compensation operating unit no longer retains any risk on new or renewal policies. Our Standard Commercial P&C operating unit is comprised of our American Hallmark Insurance Services and ECM subsidiaries. Our Workers Compensation operating unit is comprised of our TBIC Holdings, TBIC and TBICRM subsidiaries.  Specialty Commercial Segment. Our Specialty Commercial Segment includes the excess and surplus lines commercial property/casualty insurance products and services handled by our MGA Commercial Products operating unit and the general aviation, satellite launch, commercial umbrella and primary/excess liability, medical professional liability and primary/excess commercial property insurance products and services handled by our Specialty Commercial operating unit, as well as the S pecialty P rograms managed at the parent level. Our MGA Commercial Products operating unit is comprised of our HSU, PAAC and TGASRI subsidiaries. Our Specialty Commercial operating unit is comprised of our Aerospace Insurance Managers, ASRI, ACMG, HXS and HDS subsidiaries.  Personal Segment. Our Personal Segment includes the non-standard personal automobile and renters insurance products and services handled by our Specialty Personal Lines operating unit. During the fourth quarter of 2014, our Specialty Personal Lines operating unit discontinued the low value dwelling/homeowners and manufactured homes insurance products it previously offered. Our Specialty Personal Lines operating unit is comprised of AHGA and HCS. 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 34% of the net premiums written by any of them, HIC retains 32% of the net premiums written by any of them, HSIC retains 24% of the net premiums written by any of them and HNIC retains 10% 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, 2015, 2014 and 2013 (in thousands): 2015 2014 2013 Revenues Standard Commercial Segment $ 76,864 $ 81,464 $ 83,306 Specialty Commercial Segment 249,910 241,920 229,734 Personal Segment 45,538 20,404 71,081 Corporate 90 (6,422) 5,307 Consolidated $ 372,402 $ 337,366 $ 389,428 Depreciation and Amortization Expense Standard Commercial Segment $ 136 $ 183 $ 201 Specialty Commercial Segment 2,537 2,503 2,896 Personal Segment 779 515 1,111 Corporate 64 23 92 Consolidated $ 3,516 $ 3,224 $ 4,300 Interest Expense Standard Commercial Segment $ - $ - $ - Specialty Commercial Segment - - - Personal Segment - - - Corporate 3,906 4,576 4,599 Consolidated $ 3,906 $ 4,576 $ 4,599 Tax Expense (Benefit) Standard Commercial Segment $ 1,436 $ 622 $ 312 Specialty Commercial Segment 11,609 9,690 3,613 Personal Segment (1,345) (574) (398) Corporate (1,677) (4,385) (692) Consolidated $ 10,023 $ 5,353 $ 2,835 Pre-tax Income (Loss) Standard Commercial Segment $ 6,687 $ 4,595 $ 1,980 Specialty Commercial Segment 40,277 34,237 19,527 Personal Segment (885) 1,226 (3,416) Corporate (14,193) (21,276) (7,011) Consolidated $ 31,886 $ 18,782 $ 11,080 The following is additional business segment information as of the following dates (in thousands): December 31 2015 2014 Assets Standard Commercial Segment $ 156,722 $ 145,355 Specialty Commercial Segment 660,263 590,852 Personal Segment 239,632 222,183 Corporate 19,983 22,479 Consolidated $ 1,076,600 $ 980,869

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2015
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): 2015 2014 2013 Numerator for both basic and diluted earnings per share: Net income $ 21,863 $ 13,429 $ 8,245 Denominator, basic shares 19,211 19,197 19,263 Effect of dilutive securities: Stock-based compensation awards 194 169 98 Denominator, diluted shares 19,405 19,366 19,361 Basic earnings per share: $ 1.14 $ 0.70 $ 0.43 Diluted earnings per share: $ 1.13 $ 0.69 $ 0.43 We had 267,500 shares, 544,999 shares and 779,999 shares of common stock potentially issuable upon exercise of employee stock options for years ended December 31, 201 5 , 201 4 and 201 3 , 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 Restrictions

Regulatory Capital Restrictions	12 Months Ended
	Dec. 31, 2015
Regulatory Capital Restrictions [Abstract]
Regulatory Capital Restrictions	12. Regulatory Capital Restrictions : 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 $68.3 million as of December 31, 2015. 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 and HNIC, both domiciled in Arizona, are 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. For all our insurance companies, dividends may only be paid from unassigned surplus funds. During 2016, the aggregate ordinary dividend capacity of these subsidiaries is $27.6 million, of which $18.5 million is available to Hallmark. As a county mutual, dividends from HCM are payable to policyholders. During the year ended December 31, 2015 and 2014, respectively, our insurance company subsidiaries paid $ 8.0 million in dividends to Hallmark. The total restricted net asset s of our insurance company subsidiaries as of December 31, 2015, was $193.7 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 $1.3 million, $1.1 million and $8.2 million during each of 2015, 2014 and 2013, 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, 2015 and 2014, our insurance company subsidiaries reported statutory capital and surplus of $247.2 million and $210.0 million, respectively, substantially greater than the minimum requirements for each state. For the years ended December 31, 2015, 2014, 2013, respectively, our insurance company subsidiaries reported statutory net income of $24.6 million, $22.3 million and $6.1 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, 2015, the adjusted capital under the risk-based capital calculation of each of our insurance company subsidiaries substantially exceeded the minimum requirements.

Share-based Payment Arrangement

Share-based Payment Arrangements	12 Months Ended
	Dec. 31, 2015
Share-based Payment Arrangements [Abstract]
Share-based Payment Arrangements	13. Share-based Payment Arrangements : 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 and expired by its terms on May 27, 2015. As of December 31, 2015, there were outstanding incentive stock options to purchase 564,956 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 289,830 shares of our common stock. 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. A new equity compensation plan for our key employees and non-employee directors, the 2015 Long Term Incentive Plan (“2015 LTIP”), was approved by shareholders on May 29, 2015. There are 2,000,000 shares authorized for issuance under the 2015 LTIP. As of December 31, 2015, restricted stock units representing the right to receive up to 155,027 shares of our common stock were outstanding under the 2015 LTIP. There were no stock option awards granted under the 2015 LTIP as of December 31, 2015. 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 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 vests in equal annual increments on each of the first three anniversary dates and terminates 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, 2015 and changes during the year then ended is presented below: Number of Shares Weighted Average Exercise Price Average Remaining Contractual Term (Years) Aggregate Instrinsic Value ($000) Outstanding at January 1, 2015 1,062,134 $ 9.51 Granted - Exercised (91,827) $ 7.17 Forfeited or expired (101,194) $ 11.67 Outstanding at December 31, 2015 869,113 $ 9.51 2.5 $ 2,120 Exercisable at December 31, 2015 817,328 $ 9.69 2.5 $ 1,857 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): 2015 2014 2013 Intrinsic value of options exercised $ 393 $ 412 $ - Cost of share-based payments (non-cash) $ 157 $ 173 $ 207 Income tax benefit of share-based payments recognized in income $ 30 $ 30 $ 30 A s of December 31, 2015, there was $39 thousand of total unrecognized compensation cost related to non-vested stock options granted under our plans which is expected to be recognized in 2016. 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 201 5 , 201 4 or 201 3 . 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 awarded under the 2005 LTIP 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 of our employees 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. Subsequently on September 8, 2014, an aggregate of 175,983 restricted stock units were granted to certain employees. On May 29, 2015, an aggregate of 103,351 restricted stock units were granted to certain employees under the 2015 LTIP. The performance criteria for all restricted stock units require that we 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. Grantees of restricted stock units do not have any rights of a stockholder, and do not participate in any distributions to our common stockholders, until the award fully vests upon satisfaction of the vesting schedule, performance criteria and other conditions set forth in their award agreement. Therefore, unvested restricted stock units are not considered participating securities under ASC 260, “Earnings Per Share,” and are not included in the calculation of basic or diluted earnings per share. On April 1, 2015, 8,616 shares of common stock were issued with respect to 8,616 restricted stock units which were granted on July 27, 2012 and vested on March 31, 2015. If and to the extent specified performance criteria have been achieved, the restricted stock units granted on April 10, 2013 will vest on March 31, 2016, the restricted stock units granted on September 8, 2014 (except for one grant) will vest on March 31, 2017, one grant of restricted stock units granted on September 8, 2014 will vest on March 31, 2018 and the restricted stock units granted on May 29, 2015 under the 2015 LTIP will vest on March 31, 2018. Compensation cost is measured as an amount equal to the fair value of the restricted stock units on the date of grant 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 our best estimate of the ultimate achievement level. The grant date fair value of the restricted stock units granted in 2012 and 2013 is $9.20 per unit. The grant date fair value of the restricted stock units granted in 2014 is $9.66 per unit. The grant date fair value of the restricted stock units granted in 2015 is $11.10 per unit. We incurred compensation expense of $226 thousand, $49 thousand and $145 thousand related to restricted stock units during the year ended December 31, 2015, 2014 and 2013, respectively. We recorded an income tax benefit of $79 thousand, $17 thousand and $51 thousand related to restricted stock units during the year ended December 31, 2015, 2014 and 2013, respectively. A summary of the status of our restricted stock units as of December 31, 2015 and changes during the year then ended is presented below: Number of Restricted Stock Units Nonvested at January 1, 2015 285,216 Granted 103,351 Vested (8,616) Forfeited (83,380) Nonvested at December 31, 2015 296,571 As of December 31, 2015, there was $0.8 million of total unrecognized compensation cost related to unvested restricted stock units granted under our 2005 LTIP and 2015 LTIP, of which $0.4 million is expected to be recognized in 2016, $0.3 million is expected to be recognized in 2017 and $0.1 million is expected to be recognized in 2018.

Retirement Plans

Retirement Plans	12 Months Ended
	Dec. 31, 2015
Retirement Plans [Abstract]
Retirement Plans	14. Retirement Plans : 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, 2015, 2014 and 2013 (in thousands) using a measurement date of December 31. 2015 2014 2013 Assumptions (end of period): Discount rate used in determining benefit obligation 4.12% 3.86% 4.49% Rate of compensation increase N/A N/A N/A Reconciliation of funded status (end of period): Accumulated benefit obligation $ (12,915) $ (13,909) $ (12,284) Projected benefit obligation $ (12,915) $ (13,909) $ (12,284) Fair value of plan assets 10,419 11,290 10,851 Funded status $ (2,496) $ (2,619) $ (1,433) Net actuarial loss (3,957) (4,000) (2,277) Accumulated other comprehensive loss (3,957) (4,000) (2,277) Prepaid pension cost 1,461 1,381 844 Net amount recognized as of December 31 $ (2,496) $ (2,619) $ (1,433) Changes in projected benefit obligation: Benefit obligation as of beginning of period $ 13,909 $ 12,284 $ 13,439 Interest cost 518 532 505 Actuarial liability (gain)/loss (646) 1,947 (824) Benefits paid (866) (854) (836) Benefit obligation as of end of period $ 12,915 $ 13,909 $ 12,284 Change in plan assets: Fair value of plan assets as of beginning of period $ 11,290 $ 10,851 $ 9,754 Actual return on plan assets (net of expenses) (5) 760 1,565 Employer contributions - 533 368 Benefits paid (866) (854) (836) Fair value of plan assets as of end of period $ 10,419 $ 11,290 $ 10,851 Net periodic pension cost: Service cost - benefits earned during the period $ - $ - $ - Interest cost on projected benefit obligation 518 532 505 Expected return on plan assets (701) (698) (615) Recognized actuarial loss 103 162 495 Net periodic pension cost $ (80) $ (4) $ 385 Discount rate 3.86% 4.49% 3.89% Expected return on plan assets 6.50% 6.50% 6.50% Rate of compensation increase N/A N/A N/A Estimated future benefit payments by fiscal year (in thousands): 2016 $ 899 2017 $ 913 2018 $ 907 2019 $ 896 2020 $ 881 2021-2025 $ 4,205 As of December 31, 2015, the fair value of the plan assets was composed of cash and cash equivalents of $0.3 million, debt securities of $3.4 million and equity securities of $6.7 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. The expected return on plan assets uses the fair market value as of December 31, 2015. To develop the discount rate used in determining the benefit obligation we used the Wells Fargo AA Pension Discount Curve at the measurement date to match the timing and amounts of projected future benefits. A corridor approach is used to amortize actuarial gains and losses. We are applying the 10% threshold set forth in ASC 715. In addition, since all accrued benefits under the plan are frozen, we are amortizing the unrecognized gains and losses outside of the corridor by the average life expectancy of the plan participants. We are not required to make a contribution to the defined benefit cash balance plan during 2016. We expect our 2016 periodic pension cost to be $(21) thousand , the components of which are interest cost of $512 thousand , expected return on plan assets of ($645) thousand and amortization of actuarial loss of $112 thousand . The following table shows the weighted-average asset allocation for the defined benefit cash balance plan held as of December 31, 2015 and 2014. December 31 2015 2014 Asset Category: Debt securities 33% 33% Equity securities 64% 64% Other 3% 3% 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, 2015 and December 31, 2014 (in thousands). As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total Debt securities $ - $ 3,423 $ - $ 3,423 Equity securities 6,697 - - 6,697 Total $ 6,697 $ 3,423 $ - $ 10,120 As of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total Debt securities $ - $ 3,718 $ - $ 3,718 Equity securities 7,230 - - 7,230 Total $ 7,230 $ 3,718 $ - $ 10,948 Our plan assets also include cash and cash equivalents of $0.3 million and $0.4 million at December 31, 2015 and 2014, 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 for each of the years ended December 31, 2015, 2014 and 2013.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Taxes [Abstract]
Income Taxes	15. Income Taxes : The composition of deferred tax assets and liabilities and the related tax effects as of December 31, 2015 and 2014, are as follows (in thousands): 2015 2014 Deferred tax liabilities: Deferred policy acquisition costs $ (7,128) $ (7,261) Net unrealized holding gain on investments (5,339) (10,886) Agency relationship (66) (75) Intangible assets (5,118) (5,613) Goodwill (519) (479) Fixed assets (861) (432) Other (367) (133) Total deferred tax liabilities (19,398) (24,879) Deferred tax assets: Unearned premiums 10,592 10,042 Amortization of non-compete agreements 298 357 Pension liability 1,385 1,400 Net operating loss carry-forward 426 518 Unpaid loss and loss adjustment expense 6,920 6,871 Rent reserve 297 355 Reinsurance payable 421 387 Bonus accrual 759 809 Investment impairments 1,120 625 Other 540 423 Total deferred tax assets 22,758 21,787 Deferred federal income taxes, net $ 3,360 $ (3,092) We concluded that no valuation allowance was necessary to provide against our deferred tax assets as of December 31, 2015. 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, 2015, 2014 and 2013, is as follows (in thousands): 2015 2014 2013 Computed expected income tax expense at statutory regulatory tax rate $ 11,160 $ 6,574 $ 3,878 Meals and entertainment 32 27 25 Tax exempt interest (1,259) (1,276) (1,314) Dividends received deduction (141) (107) (101) State taxes (net of federal benefit) 176 259 276 Other 55 (124) 71 Income tax expense $ 10,023 $ 5,353 $ 2,835 Current income tax expense $ 11,053 $ 5,746 $ 3,092 Deferred tax benefit (1,030) (393) (257) Income tax expense $ 10,023 $ 5,353 $ 2,835 We have available, for federal income tax purposes, unused net operating loss of $1.2 million at December 31, 2015. 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 2022 $ 878 2028 2 2029 25 2031 45 2032 77 2033 73 2034 59 2035 57 $ 1,216 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 2012. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions at December 31, 2015.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	16. Commitments and Contingencies : 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 $2.2 million for the years ended December 31, 2015, 2014, and 2013, respectively. Future minimum lease payments under non-cancelable operating leases as of December 31, 2015 are as follows (in thousands): Year 2016 $ 2,065 2017 1,899 2018 1,563 2019 1,482 2020 1,442 2021 and thereafter 1,015 Total minimum lease payments (a) $ 9,466 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $0.6 million due in the future under noncancelable subleases. 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 did not receive an assessment during 2015 or 2014. During the third quarter of 2015 we paid $1.2 million in fulfillment of the contingent purchase price with the sellers of TBIC Holding. The sellers have disputed the calculation of the amount paid and assert that an additional $1.8 million is due. We disagree with this assertion and believe that our calculation of the contingent purchase price was substantially correct . Pursuant to the terms of the acquisition agreement, an independent actuary has been engaged to resolve this matter. In November 2015, HSU was informed by the Texas Comptroller of Public Accounts that a surplus lines tax audit covering the period January 1, 2010 through December 31, 2013 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. In addition, effective January 1, 2012 the Texas Legislators enacted House Bill 3410 (HB3410) which allows an MGU to contractually pass the collection, payment and administration of surplus lines taxes down to another Texas licensed surplus line agent. 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 January 1, 2010 through December 31, 2011, the period prior to the passage of HB3410, and that HSU therefore owes $2.5 million in premium taxes, as well as $0.7 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. 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, 2015 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 Co

Changes in Accumulated Other Comprehensive Income Balances	12 Months Ended
	Dec. 31, 2015
Changes in Accumulated Other Comprehensive Income Balances [Abstract]
Changes in Accumulated Other Comprehensive Income Balances	17. Changes in Accumulated Other Comprehensive Income Balances: The changes in accumulated other comprehensive income balances as of December 31, 2015, 2014, and 2013 were as follows (in thousands): Pension Liability Unrealized Gains (Loss) Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2013 $ (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 Other comprehensive income: Change in net actuarial loss (1,723) - (1,723) Tax effect on change in net actuarial loss 603 - 603 Unrealized holding gains arising during the period - 3,543 3,543 Tax effect on unrealized gains arising during the period - (1,240) (1,240) Reclassification adjustment for gains included in net realized gains - (408) (408) Tax effect on reclassification adjustment for gains included in income tax expense - 143 143 Other comprehensive income, net of tax (1,120) 2,038 918 Balance at December 31, 2014 $ (2,600) $ 20,401 $ 17,801 Other comprehensive loss: Change in net actuarial gain 43 - 43 Tax effect on change in net actuarial gain (15) - (15) Unrealized holding losses arising during the period - (10,191) (10,191) Tax effect on unrealized losses arising during the period - 3,567 3,567 Reclassification adjustment for gains included in net realized gains - (5,826) (5,826) Tax effect on reclassification adjustment for gains included in income tax expense - 2,039 2,039 Other comprehensive loss, net of tax 28 (10,411) (10,383) Balance at December 31, 2015 $ (2,572) $ 9,990 $ 7,418

Concentrations of Credit Risk

Concentrations of Credit Risk	12 Months Ended
	Dec. 31, 2015
Concentrations of Credit Risk [Abstract]
Concentrations of Credit Risk	18. Concentrations of Credit Risk : We maintain cash and cash equivalents in accounts with four 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, 2015. 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, 2015 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 Fi

Unaudited Selected Quarterly Financial Information	12 Months Ended
	Dec. 31, 2015
Unaudited Selected Quarterly Financial Information [Abstract]
Unaudited Selected Quarterly Financial Information	19. Unaudited Selected Financial Quarterly Information : Following is a summary of the unaudited interim results of operations for the years ended December 31, 2015 and 2014 (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. 2015 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total revenue $ 91,450 $ 97,197 $ 93,684 $ 90,071 $ 87,109 $ 80,836 $ 81,417 $ 88,004 Total expense 83,761 87,922 83,849 84,984 80,697 78,794 76,689 82,404 Income before tax 7,689 9,275 9,835 5,087 6,412 2,042 4,728 5,600 Income tax expense 2,346 2,899 3,137 1,641 1,864 391 1,265 1,833 Net income $ 5,343 6,376 $ 6,698 3,446 $ 4,548 1,651 $ 3,463 3,767 Basic earnings per share: $ 0.28 $ 0.33 $ 0.35 $ 0.18 $ 0.24 $ 0.09 $ 0.18 $ 0.20 Diluted earnings per share: $ 0.28 $ 0.33 $ 0.35 $ 0.17 $ 0.23 $ 0.09 $ 0.18 $ 0.19

Schedule II - Condensed Financi

Schedule II - Condensed Financial Information of Registrant (Parent Company Only)	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]
Condensed Financial Information of Parent Company Only Disclosure	HALLMARK FINANCIAL SERVICES, INC. BALANCE SHEETS December 31, 2015 and 2014 (In thousands) 2015 2014 ASSETS Cash and cash equivalents $ 8,014 $ 11,839 Investment in subsidiaries 361,769 325,608 Deferred federal income taxes 942 747 Other assets 4,488 4,061 Total assets $ 375,213 $ 342,255 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Revolving credit facility payable $ 30,000 $ - Subordinated debt securities 56,702 56,702 Current federal income tax payable 72 64 Accounts payable and other accrued expenses 26,413 33,452 Total liabilities 113,187 90,218 Stockholders’ equity: Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2015 and in 2014 3,757 3,757 Additional paid-in capital 123,480 123,194 Retained earnings 141,501 119,638 Accumulated other comprehensive income 7,418 17,801 Treasury stock (1,775,512 shares in 2015 and 1,655,306 in 2014), at cost (14,130) (12,353) Total stockholders’ equity 262,026 252,037 Total liabilities and stockholders’ equity $ 375,213 $ 342,255 See accompanying report of independent registered public accounting firm. HALLMARK FINANCIAL SERVICES, INC. STATEMENTS OF OPERATIONS For the years ended December 31, 2015, 2014 and 2013 (In thousands) 2015 2014 2013 Investment income (loss), net of expenses $ 120 $ 133 $ (190) Dividend income from subsidiaries 8,000 8,000 - Management fee income 10,053 9,614 8,518 Total revenues 18,173 17,747 8,328 Operating expenses 10,222 9,759 7,764 Interest expense 3,906 4,576 4,599 Total expenses 14,128 14,335 12,363 Income (loss) before equity in undistributed earnings (loss) of subsidiaries and income tax benefit 4,045 3,412 (4,035) Income tax benefit (1,273) (1,623) (1,227) Income (loss) before equity in undistributed earnings of subsidiaries 5,318 5,035 (2,808) Equity in undistributed share of earnings in subsidiaries 16,545 8,394 11,053 Net income $ 21,863 $ 13,429 $ 8,245 Comprehensive income $ 11,480 $ 14,347 $ 17,229 See accompanying report of independent registered public accounting firm. HALLMARK FINANCIAL SERVICES, INC. STATEMENTS OF CASH FLOWS For the years ended December 31, 2015, 2014 and 2013 (In thousands) 2015 2014 2013 Cash flows from operating activities: Net income $ 21,863 $ 13,429 $ 8,245 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization expense 65 68 92 Deferred income tax (benefit) expense (195) 183 1,182 Undistributed share of earnings of subsidiaries (16,545) (8,394) (11,053) Change in current federal income tax payable (recoverable) 8 (3,290) (3,694) Change in all other liabilities (7,039) 4,081 12,232 Change in all other assets 147 (131) 63 Net cash (used in) provided by operating activities (1,696) 5,946 7,067 Cash flows from investing activities: Purchases of property and equipment, net (159) (47) (116) Capital contribution to subsidiaries (30,000) - - Net cash used in investing activities (30,159) (47) (116) Cash flows from financing activities: Proceeds from exercise of employee stock options 658 1,155 - Purchase of treasury shares (2,532) (1,805) - Activity under revolving credit facility, net 30,000 (1,473) - Payment of debt issuance costs (96) - - Net cash provided by (used in) financing activities 28,030 (2,123) - (Decrease) increase in cash and cash equivalents (3,825) 3,776 6,951 Cash and cash equivalents at beginning of year 11,839 8,063 1,112 Cash and cash equivalents at end of year $ 8,014 $ 11,839 $ 8,063 Supplemental cash flow information: Interest paid $ 3,906 $ 4,576 $ 4,599 Income taxes (recovered) paid $ (1,086) $ 1,481 $ 1,285 See accompanying report of independent registered public accounting firm.

Schedule III -Supplementary Ins

Schedule III -Supplementary Insurance Information	12 Months Ended
	Dec. 31, 2015
Schedule III - 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 Policy Acquisition Costs Future Policy Benefits, Losses, Claims, and Loss Adjustment Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premium Revenue Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of Deferred Policy Acquisition Costs Other Operating Expenses Net Premiums Written 2015 Personal Segment $ 1,232 $ 29,932 $ 20,976 $ - $ 38,828 $ 1,235 $ 34,414 $ 5,066 $ 12,205 $ 44,072 Standard Commercial Segment 5,633 105,971 33,701 - 72,613 3,623 47,071 4,237 22,820 71,097 Specialty Commercial Segment 13,501 314,975 161,730 - 237,640 11,524 148,664 23,371 58,212 241,775 Corporate - - - - - (2,413) - - 10,377 - Consolidated $ 20,366 $ 450,878 $ 216,407 $ - $ 349,081 $ 13,969 $ 230,149 $ 32,674 $ 103,614 $ 356,944 2014 Personal Segment $ 729 $ 29,595 $ 15,483 $ - $ 14,083 $ 1,633 $ 8,964 $ 9,315 $ 9,977 $ 16,802 Standard Commercial Segment 5,892 109,672 34,822 - 78,311 4,663 51,130 3,389 25,479 76,912 Specialty Commercial Segment 14,125 275,868 146,521 - 228,823 12,643 149,961 28,186 53,851 230,638 Corporate - - - - - (6,556) - - 10,279 - Consolidated $ 20,746 $ 415,135 $ 196,826 $ - $ 321,217 $ 12,383 $ 210,055 $ 40,890 $ 99,586 $ 324,352 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 See accompanying report of independent registered public accounting firm.

Schedule IV -Reinsurance

Schedule IV -Reinsurance	12 Months Ended
	Dec. 31, 2015
Supplemental Schedule of Reinsurance Premiums For Insurance Companies [Abstract]
Reinsurance	Schedule IV – Reinsurance (In thousands) Year Ended December 31, 2015 Column B Gross Amount Column C Ceded to Other Companies Column D Assumed from Other Companies Column E Net Amount Column F Percentage of Amount Assumed to Net Life insurance in force $ - $ - $ - $ - Premiums Life insurance $ - $ - $ - $ - Accident and health insurance - - - - Property and liability insurance 494,643 145,562 - 349,081 0.00% Title Insurance - - - - Total premiums $ 494,643 $ 145,562 $ - $ 349,081 0.00% Year Ended December 31, 2014 Life insurance in force $ - $ - $ - $ - Premiums Life insurance $ - $ - $ - $ - Accident and health insurance - - - - Property and liability insurance 461,367 140,477 327 321,217 0.10% Title Insurance - - - - Total premiums $ 461,367 $ 140,477 $ 327 $ 321,217 0.10% Year Ended December 31, 2013 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% 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, 2015
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 With Registrant Deferred Policy Acquisition Costs Reserves for Unpaid Claims and Claim Adjustment Expenses Discount if any, Deducted In Column C Unearned Premiums Earned Premiums Net Investment Income Claims and Claim Adjustment Expenses Incurred Related to Amortization of Deferred Policy Acquisitions Costs Paid Claims and Claims Adjustment Expenses Net Premiums Written (1) Current Year (2) Prior Years (a) Consolidated property-casualty Entities 2015 $ 20,366 $ 450,878 $ - $ 216,407 $ 349,081 $ 13,969 $ 237,102 $ (6,953) $ 32,674 $ 205,254 $ 356,944 2014 $ 20,746 $ 415,135 $ - $ 196,826 $ 321,217 $ 12,383 $ 215,258 $ (5,203) $ 40,890 $ 199,331 $ 324,352 2013 $ 22,586 $ 382,640 $ - $ 185,303 $ 360,541 $ 12,884 $ 251,391 $ 9,954 $ 57,277 $ 212,709 $ 360,765 See accompanying report of independent registered public accounting firm.

Accounting Policies (Policies)

Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
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 market, distribute, underwrite and service our property/casualty insurance products primarily through subsidiaries whose operations are organized into product-specific operating units that are supported by our insurance company subsidiaries . Our Standard Commercial P&C operating 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 operating 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”). Effective July 1, 2015, this operating unit no longer markets or retains any risk on new or renewal policies. Our MGA Commercial Products operating 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 Specialty Commercial operating 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, (iv) satellite launch insurance products, and (v) primary/excess commercial property coverages for both catastrophe and non-catastrophe exposures. Our Specialty Commercial operating 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 Specialty Personal Lines operating unit handles personal insurance products and services and is comprised of American Hallmark General Agency, Inc. (“AHGA”) and Hallmark Claims Services, Inc. (“HCS”). Our insurance company subsidiaries supporting these operating 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 operating units are segregated into three reportable industry segments for financial accounting purposes. The Standard Commercial Segment includes our Standard Commercial P&C operating unit and our Workers Compensation operating unit. The Specialty Commercial Segment includes our MGA Commercial Products operating unit and our Specialty Commercial operating unit, as well as certain specialty risk programs (“Specialty Programs”) which are managed at the parent level. The Personal Segment consists solely of our Specialty Personal Lines operating 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 $45.3 million and $47.6 million, as of December 31, 2015 and 2014, 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, 2015 and 2014, 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 2015, 2014 and 2013, we deferred $32.3 million, $39.1 million and $55.0 million of policy acquisition costs and amortized $32.7 million, $40.9 million and $57.3 million of deferred policy acquisition costs, respectively. Therefore, the net (amortization) deferrals of policy acquisition costs were ($0.4) million, ($1.8) million and ($2.3) million for 2015, 2014 and 2013, 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 $17.9 million and $14.8 million, at December 31, 2015 and 2014, 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 2015, 2014 and 2013 was $1.0 million, $0.7 million and $1.2 million, respectively. Accumulated depreciation was $13.7 million and $13.2 million at December 31, 2015 and 2014, 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, 2015, 2014 and 2013. 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.
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 $11.2 million, $11.5 million and $13.2 million for the years ended December 31, 2015, 2014, and 2013, 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 operating unit marketed policies on behalf of Clarendon National Insurance Company (“Clarendon”), a third-party insurer. Through December 31, 2008, all business of our MGA Commercial Products operating 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 operating unit and Clarendon. Treaty Effective Dates 7/1/2001 7/1/2002 7/1/2003 7/1/2004 Provisional loss ratio 60.0% 59.0% 59.0% 64.2% Estimated ultimate loss ratio recorded at December 31, 2015 63.5% 64.5% 61.6% 66.1% As of December 31, 2015, we had a payable of $1.7 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 MGA Commercial Products operating unit and Republic. Treaty Effective Dates 1/1/2006 1/1/2007 1/1/2008 Provisional loss ratio 65.0% 65.0% 65.0% Estimated ultimate loss ratio recorded at December 31, 2015 58.8% 64.0% 59.7% As of December 31, 2015, we had a net payable of $0.3 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. 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 May 2014, the FASB issued guidance which revises the criteria for revenue recognition. Insurance contracts are excluded from the scope of the new guidance. Under the guidance, the transaction price is attributed to underlying performance obligations in the contract and revenue is recognized as the entity satisfies the performance obligations and transfers control of a good or service to the customer. Incremental costs of obtaining a contract may be capitalized to the extent the entity expects to recover those costs. The guidance is effective for reporting periods beginning after December 15, 2017 and is to be applied retrospectively. We are in the process of evaluating the impact of adoption, which is not expected to be material to our results of operations or financial position. In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis" (Topic 810). ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether entities should be consolidated if they are deemed variable interest entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. We have adopted this standard as of the effective date, and the adoption did not impact our financial statements. In May 2015, the FASB issued guidance which requires additional disclosures about short-duration contracts for products in effect for typically a year or less. The disclosures will focus on the liability for unpaid claims and claim adjustment expenses. This guidance is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2016. We are in the process of evaluating the impact of the adoption, which is not expected to be material to our results of operations or financial position .

Accounting Policies (Tables)

Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
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 operating unit and Clarendon. Treaty Effective Dates 7/1/2001 7/1/2002 7/1/2003 7/1/2004 Provisional loss ratio 60.0% 59.0% 59.0% 64.2% Estimated ultimate loss ratio recorded at December 31, 2015 63.5% 64.5% 61.6% 66.1% 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 MGA Commercial Products operating unit and Republic. Treaty Effective Dates 1/1/2006 1/1/2007 1/1/2008 Provisional loss ratio 65.0% 65.0% 65.0% Estimated ultimate loss ratio recorded at December 31, 2015 58.8% 64.0% 59.7%

Investments (Tables)

Investments (Tables)	12 Months Ended
	Dec. 31, 2015
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): As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. Government $ 76,323 $ 7 $ (61) $ 76,269 Corporate bonds 122,894 637 (1,822) 121,709 Collateralized corporate bank loans 83,434 44 (1,882) 81,596 Municipal bonds 196,446 1,888 (5,966) 192,368 Mortgage-backed 59,532 155 (304) 59,383 Total debt securities 538,629 2,731 (10,035) 531,325 Total equity securities 24,951 23,391 (838) 47,504 Total debt and equity securities $ 563,580 $ 26,122 $ (10,873) $ 578,829 As of December 31, 2014 U.S. Treasury securities and obligations of U.S. Government $ 93,280 $ 29 $ (4) $ 93,305 Corporate bonds 28,643 884 (85) 29,442 Collateralized corporate bank loans 115,358 206 (1,915) 113,649 Municipal bonds 161,546 2,384 (1,601) 162,329 Mortgage-backed 51,943 487 (370) 52,060 Total debt securities 450,770 3,990 (3,975) 450,785 Total equity securities 25,360 31,086 (2) 56,444 Total debt and equity securities $ 476,130 $ 35,076 $ (3,977) $ 507,229
Major Categories of Investment Income	Major categories of net investment income are summarized as follows (in thousands): Twelve Months Ended December 31 2015 2014 2013 U.S. Treasury securities and obligations of U.S. Government $ 670 $ 395 $ 143 Corporate bonds 1,435 1,378 2,341 Collateralized corporate bank loans 4,727 4,400 4,653 Municipal bonds 5,901 5,232 5,245 Mortgage-backed 1,288 995 737 Equity securities 673 509 484 Cash and cash equivalents 148 230 157 14,842 13,139 13,760 Investment expenses (873) (756) (876) Investment income, net of expenses $ 13,969 $ 12,383 $ 12,884
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 December 31 2015 2014 2013 U.S. Treasury securities and obligations of U.S. Government $ - $ - $ - Corporate bonds - 263 853 Collateralized corporate bank loans 126 109 373 Municipal bonds (83) (140) (156) Mortgage-backed 240 32 - Equity securities 5,543 144 9,470 Gain on investments 5,826 408 10,540 Other-than-temporary impairments (3,323) (274) - Net realized gains $ 2,503 $ 134 $ 10,540
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, 2015 and December 31, 2014 (in thousands): As of December 31, 2015 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 $ 41,428 $ (61) $ - $ - $ 41,428 $ (61) Corporate bonds 96,475 (1,822) - - 96,475 (1,822) Collateralized corporate bank loans 65,868 (1,758) 3,532 (124) 69,400 (1,882) Municipal bonds 44,525 (488) 25,310 (5,478) 69,835 (5,966) Mortgage-backed 36,251 (302) 48 (2) 36,299 (304) Total debt securities 284,547 (4,431) 28,890 (5,604) 313,437 (10,035) Total equity securities 6,584 (838) - - 6,584 (838) Total debt and equity securities $ 291,131 $ (5,269) $ 28,890 $ (5,604) $ 320,021 $ (10,873) As of December 31, 2014 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 $ 15,005 $ (4) $ - $ - $ 15,005 $ (4) Corporate bonds 7,552 (85) - - 7,552 (85) Collateralized corporate bank loans 64,712 (824) 8,898 (1,091) 73,610 (1,915) Municipal bonds 50,546 (945) 15,684 (656) 66,230 (1,601) Mortgage-backed 20,469 (365) 2,966 (5) 23,435 (370) Total debt securities 158,284 (2,223) 27,548 (1,752) 185,832 (3,975) Total equity securities 129 (2) - - 129 (2) Total debt and equity securities $ 158,413 $ (2,225) $ 27,548 $ (1,752) $ 185,961 $ (3,977)
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities	The amortized cost and estimated fair value of debt securities at December 31, 2015 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 Cost Fair Value (in thousands) Due in one year or less $ 76,739 $ 76,560 Due after one year through five years 236,507 234,213 Due after five years through ten years 106,046 101,387 Due after ten years 59,805 59,782 Mortgage-backed 59,532 59,383 $ 538,629 $ 531,325

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Dec. 31, 2015
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, 2015 and December 31, 2014 (in thousands). As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ - $ 76,269 $ - $ 76,269 Corporate bonds - 121,709 - 121,709 Collateralized corporate bank loans - 81,596 - 81,596 Municipal bonds - 178,281 14,087 192,368 Mortgage-backed - 59,383 - 59,383 Total debt securities - 517,238 14,087 531,325 Total equity securities 47,504 - - 47,504 Total debt and equity securities $ 47,504 $ 517,238 $ 14,087 $ 578,829 As of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ - $ 93,305 $ - $ 93,305 Corporate bonds - 29,442 - 29,442 Collateralized corporate bank loans - 113,402 247 113,649 Municipal bonds - 147,978 14,351 162,329 Mortgage-backed - 52,060 - 52,060 Total debt securities - 436,187 14,598 450,785 Total equity securities 56,444 - - 56,444 Total debt and equity securities $ 56,444 $ 436,187 $ 14,598 $ 507,229
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, 2015 and 2014 (in thousands). 2015 2014 Beginning balance as of January 1 $ 14,598 $ 17,517 Sales (370) (3,490) Settlements - - Purchases - - Issuances - - Total realized/unrealized gains included in net income - - Net (losses) gains included in other comprehensive income (141) 571 Transfers into Level 3 - - Transfers out of Level 3 - - Ending balance as of December 31 $ 14,087 $ 14,598

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
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 2015 2014 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 (19,799) (17,561) Tradename (2,159) (1,929) Management agreement (3,232) (3,232) Non-compete & employment agreements (4,235) (4,235) Total accumulated amortization (29,425) (26,957) Total net carrying amount $ 14,959 $ 17,427
Schedule of Estimated Aggregate Amortization Expense for Definite-Lived Intangible Assets	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): 2016 $ 2,468 2017 $ 2,468 2018 $ 2,468 2019 $ 2,468 2020 $ 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/ agent relationships 15 Management agreement 4 Non-compete agreements 5

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Other Assets [Abstract]
Schedule of Other Assets	The following table details our other assets as of December 31, 2015 and 2014 (in thousands): 2015 2014 Profit sharing commission receivable $ 228 $ 274 Accrued investment income 3,876 2,974 Debt issuance costs 1,145 1,104 Investment in unconsolidated trust subsidiaries 1,702 1,702 Fixed assets 4,120 1,620 Other assets 174 205 $ 11,245 $ 7,879

Reserves for Unpaid Losses an37

Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables)	12 Months Ended
	Dec. 31, 2015
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): 2015 2014 2013 Balance at January 1 $ 415,135 $ 382,640 $ 313,416 Less reinsurance recoverable 91,943 70,172 49,584 Net Balance at January 1 323,192 312,468 263,832 Incurred related to: Current year 237,102 215,258 251,391 Prior years (6,953) (5,203) 9,954 Total incurred 230,149 210,055 261,345 Paid related to: Current year 83,132 76,231 101,897 Prior years 122,122 123,100 110,812 Total paid 205,254 199,331 212,709 Net Balance at December 31 348,087 323,192 312,468 Plus reinsurance recoverable 102,791 91,943 70,172 Balance at December 31 $ 450,878 $ 415,135 $ 382,640

Reinsurance (Tables)

Reinsurance (Tables)	12 Months Ended
	Dec. 31, 2015
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): Included in reinsurance recoverable on the consolidated balance sheets are paid loss recoverables of $ XX million and $ 17.0 million as of December 31, 2015 and 2014, respectively. 2015 2014 2013 Premium Written : Direct $ 514,223 $ 473,233 $ 458,020 Assumed - (15) 2,007 Ceded (157,279) (148,866) (99,262) $ 356,944 $ 324,352 $ 360,765 Premium Earned: Direct $ 494,643 $ 461,367 $ 434,022 Assumed - 327 3,204 Ceded (145,562) (140,477) (76,685) $ 349,081 $ 321,217 $ 360,541 Reinsurance recoveries $ 89,892 $ 99,911 $ 45,456

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Information [Abstract]
Schedule of Segment Reporting, by Segment	The following is additional business segment information for the twelve months ended December 31, 2015, 2014 and 2013 (in thousands): 2015 2014 2013 Revenues Standard Commercial Segment $ 76,864 $ 81,464 $ 83,306 Specialty Commercial Segment 249,910 241,920 229,734 Personal Segment 45,538 20,404 71,081 Corporate 90 (6,422) 5,307 Consolidated $ 372,402 $ 337,366 $ 389,428 Depreciation and Amortization Expense Standard Commercial Segment $ 136 $ 183 $ 201 Specialty Commercial Segment 2,537 2,503 2,896 Personal Segment 779 515 1,111 Corporate 64 23 92 Consolidated $ 3,516 $ 3,224 $ 4,300 Interest Expense Standard Commercial Segment $ - $ - $ - Specialty Commercial Segment - - - Personal Segment - - - Corporate 3,906 4,576 4,599 Consolidated $ 3,906 $ 4,576 $ 4,599 Tax Expense (Benefit) Standard Commercial Segment $ 1,436 $ 622 $ 312 Specialty Commercial Segment 11,609 9,690 3,613 Personal Segment (1,345) (574) (398) Corporate (1,677) (4,385) (692) Consolidated $ 10,023 $ 5,353 $ 2,835 Pre-tax Income (Loss) Standard Commercial Segment $ 6,687 $ 4,595 $ 1,980 Specialty Commercial Segment 40,277 34,237 19,527 Personal Segment (885) 1,226 (3,416) Corporate (14,193) (21,276) (7,011) Consolidated $ 31,886 $ 18,782 $ 11,080
Schedule of Segment Reporting Additional Information by Segment	The following is additional business segment information as of the following dates (in thousands): December 31 2015 2014 Assets Standard Commercial Segment $ 156,722 $ 145,355 Specialty Commercial Segment 660,263 590,852 Personal Segment 239,632 222,183 Corporate 19,983 22,479 Consolidated $ 1,076,600 $ 980,869

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
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): 2015 2014 2013 Numerator for both basic and diluted earnings per share: Net income $ 21,863 $ 13,429 $ 8,245 Denominator, basic shares 19,211 19,197 19,263 Effect of dilutive securities: Stock-based compensation awards 194 169 98 Denominator, diluted shares 19,405 19,366 19,361 Basic earnings per share: $ 1.14 $ 0.70 $ 0.43 Diluted earnings per share: $ 1.13 $ 0.69 $ 0.43

Share-based Payment Arrangeme41

Share-based Payment Arrangements (Tables)	12 Months Ended
	Dec. 31, 2015
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, 2015 and changes during the year then ended is presented below: Number of Shares Weighted Average Exercise Price Average Remaining Contractual Term (Years) Aggregate Instrinsic Value ($000) Outstanding at January 1, 2015 1,062,134 $ 9.51 Granted - Exercised (91,827) $ 7.17 Forfeited or expired (101,194) $ 11.67 Outstanding at December 31, 2015 869,113 $ 9.51 2.5 $ 2,120 Exercisable at December 31, 2015 817,328 $ 9.69 2.5 $ 1,857
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): 2015 2014 2013 Intrinsic value of options exercised $ 393 $ 412 $ - Cost of share-based payments (non-cash) $ 157 $ 173 $ 207 Income tax benefit of share-based payments recognized in income $ 30 $ 30 $ 30
Schedule of Nonvested Restricted Stock Units Activity	A summary of the status of our restricted stock units as of December 31, 2015 and changes during the year then ended is presented below: Number of Restricted Stock Units Nonvested at January 1, 2015 285,216 Granted 103,351 Vested (8,616) Forfeited (83,380) Nonvested at December 31, 2015 296,571

Retirement Plans (Tables)

Retirement Plans (Tables)	12 Months Ended
	Dec. 31, 2015
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, 2015, 2014 and 2013 (in thousands) using a measurement date of December 31. 2015 2014 2013 Assumptions (end of period): Discount rate used in determining benefit obligation 4.12% 3.86% 4.49% Rate of compensation increase N/A N/A N/A Reconciliation of funded status (end of period): Accumulated benefit obligation $ (12,915) $ (13,909) $ (12,284) Projected benefit obligation $ (12,915) $ (13,909) $ (12,284) Fair value of plan assets 10,419 11,290 10,851 Funded status $ (2,496) $ (2,619) $ (1,433) Net actuarial loss (3,957) (4,000) (2,277) Accumulated other comprehensive loss (3,957) (4,000) (2,277) Prepaid pension cost 1,461 1,381 844 Net amount recognized as of December 31 $ (2,496) $ (2,619) $ (1,433) Changes in projected benefit obligation: Benefit obligation as of beginning of period $ 13,909 $ 12,284 $ 13,439 Interest cost 518 532 505 Actuarial liability (gain)/loss (646) 1,947 (824) Benefits paid (866) (854) (836) Benefit obligation as of end of period $ 12,915 $ 13,909 $ 12,284 Change in plan assets: Fair value of plan assets as of beginning of period $ 11,290 $ 10,851 $ 9,754 Actual return on plan assets (net of expenses) (5) 760 1,565 Employer contributions - 533 368 Benefits paid (866) (854) (836) Fair value of plan assets as of end of period $ 10,419 $ 11,290 $ 10,851 Net periodic pension cost: Service cost - benefits earned during the period $ - $ - $ - Interest cost on projected benefit obligation 518 532 505 Expected return on plan assets (701) (698) (615) Recognized actuarial loss 103 162 495 Net periodic pension cost $ (80) $ (4) $ 385 Discount rate 3.86% 4.49% 3.89% Expected return on plan assets 6.50% 6.50% 6.50% Rate of compensation increase N/A N/A N/A
Estimated Future Benefit Payments	Estimated future benefit payments by fiscal year (in thousands): 2016 $ 899 2017 $ 913 2018 $ 907 2019 $ 896 2020 $ 881 2021-2025 $ 4,205
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, 2015 and 2014. December 31 2015 2014 Asset Category: Debt securities 33% 33% Equity securities 64% 64% Other 3% 3% 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, 2015 and December 31, 2014 (in thousands). As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total Debt securities $ - $ 3,423 $ - $ 3,423 Equity securities 6,697 - - 6,697 Total $ 6,697 $ 3,423 $ - $ 10,120 As of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total Debt securities $ - $ 3,718 $ - $ 3,718 Equity securities 7,230 - - 7,230 Total $ 7,230 $ 3,718 $ - $ 10,948

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
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, 2015 and 2014, are as follows (in thousands): 2015 2014 Deferred tax liabilities: Deferred policy acquisition costs $ (7,128) $ (7,261) Net unrealized holding gain on investments (5,339) (10,886) Agency relationship (66) (75) Intangible assets (5,118) (5,613) Goodwill (519) (479) Fixed assets (861) (432) Other (367) (133) Total deferred tax liabilities (19,398) (24,879) Deferred tax assets: Unearned premiums 10,592 10,042 Amortization of non-compete agreements 298 357 Pension liability 1,385 1,400 Net operating loss carry-forward 426 518 Unpaid loss and loss adjustment expense 6,920 6,871 Rent reserve 297 355 Reinsurance payable 421 387 Bonus accrual 759 809 Investment impairments 1,120 625 Other 540 423 Total deferred tax assets 22,758 21,787 Deferred federal income taxes, net $ 3,360 $ (3,092)
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, 2015, 2014 and 2013, is as follows (in thousands): 2015 2014 2013 Computed expected income tax expense at statutory regulatory tax rate $ 11,160 $ 6,574 $ 3,878 Meals and entertainment 32 27 25 Tax exempt interest (1,259) (1,276) (1,314) Dividends received deduction (141) (107) (101) State taxes (net of federal benefit) 176 259 276 Other 55 (124) 71 Income tax expense $ 10,023 $ 5,353 $ 2,835 Current income tax expense $ 11,053 $ 5,746 $ 3,092 Deferred tax benefit (1,030) (393) (257) Income tax expense $ 10,023 $ 5,353 $ 2,835
Summary of Operating Loss Carryforwards	The net operating losses will expire if unused, as follows (in thousands): Year 2022 $ 878 2028 2 2029 25 2031 45 2032 77 2033 73 2034 59 2035 57 $ 1,216

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
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, 2015 are as follows (in thousands): Year 2016 $ 2,065 2017 1,899 2018 1,563 2019 1,482 2020 1,442 2021 and thereafter 1,015 Total minimum lease payments (a) $ 9,466 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $0.6 million due in the future under noncancelable subleases.

Changes in Accumulated Other 45

Changes in Accumulated Other Comprehensive Income Balances (Tables)	12 Months Ended
	Dec. 31, 2015
Changes in Accumulated Other Comprehensive Income Balances [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The changes in accumulated other comprehensive income balances as of December 31, 2015, 2014, and 2013 were as follows (in thousands): Pension Liability Unrealized Gains (Loss) Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2013 $ (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 Other comprehensive income: Change in net actuarial loss (1,723) - (1,723) Tax effect on change in net actuarial loss 603 - 603 Unrealized holding gains arising during the period - 3,543 3,543 Tax effect on unrealized gains arising during the period - (1,240) (1,240) Reclassification adjustment for gains included in net realized gains - (408) (408) Tax effect on reclassification adjustment for gains included in income tax expense - 143 143 Other comprehensive income, net of tax (1,120) 2,038 918 Balance at December 31, 2014 $ (2,600) $ 20,401 $ 17,801 Other comprehensive loss: Change in net actuarial gain 43 - 43 Tax effect on change in net actuarial gain (15) - (15) Unrealized holding losses arising during the period - (10,191) (10,191) Tax effect on unrealized losses arising during the period - 3,567 3,567 Reclassification adjustment for gains included in net realized gains - (5,826) (5,826) Tax effect on reclassification adjustment for gains included in income tax expense - 2,039 2,039 Other comprehensive loss, net of tax 28 (10,411) (10,383) Balance at December 31, 2015 $ (2,572) $ 9,990 $ 7,418

Unaudited Selected Quarterly 46

Unaudited Selected Quarterly Financial Information (Tables)	12 Months Ended
	Dec. 31, 2015
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, 2015 and 2014 (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. 2015 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total revenue $ 91,450 $ 97,197 $ 93,684 $ 90,071 $ 87,109 $ 80,836 $ 81,417 $ 88,004 Total expense 83,761 87,922 83,849 84,984 80,697 78,794 76,689 82,404 Income before tax 7,689 9,275 9,835 5,087 6,412 2,042 4,728 5,600 Income tax expense 2,346 2,899 3,137 1,641 1,864 391 1,265 1,833 Net income $ 5,343 6,376 $ 6,698 3,446 $ 4,548 1,651 $ 3,463 3,767 Basic earnings per share: $ 0.28 $ 0.33 $ 0.35 $ 0.18 $ 0.24 $ 0.09 $ 0.18 $ 0.20 Diluted earnings per share: $ 0.28 $ 0.33 $ 0.35 $ 0.17 $ 0.23 $ 0.09 $ 0.18 $ 0.19

Accounting Policies (Narrative)

Accounting Policies (Narrative) (Details) $ in Millions	Aug. 23, 2007USD ($)	Jun. 21, 2005USD ($)	Dec. 31, 2015USD ($)segment	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Number of reportable segments | segment			3
Deferred policy acquisition costs, additions			$ 32.3	$ 39.1	$ 55
Deferred policy acquisition costs, amortized			(32.7)	(40.9)	(57.3)
Deferred policy acquisition cost, (amortization) deferrals			(0.4)	(1.8)	(2.3)
Property and equipment, gross			$ 17.9	14.8
Property and equipment, depreciation method			straight-line method
Depreciation			$ 1	0.7	1.2
Property and equipment, accumulated depreciation			13.7	13.2
Policy fees			11.2	$ 11.5	$ 13.2
Hallmark Statutory Trust I [Member]
Long-term debt, gross		$ 30.9	$ 30.9
Proceeds from issuance of trust preferred securities		30
Minimum [Member]
Property and equipment, estimated useful lives			3 years	3 years
Maximum [Member]
Property and equipment, estimated useful lives			10 years	10 years
Subordinated Debt [Member]
Long-term debt, gross			$ 56.7	$ 56.7
Trust Preferred Securities, fair value			$ 45.3	$ 47.6
Current yield to maturity, percentage			8.00%	8.00%
Subordinated Debt [Member] | Hallmark Statutory Trust I [Member]
Long-term debt, gross		30.9
Proceeds from issuance of trust preferred securities		$ 30
Subordinated Debt [Member] | Hallmark Statutory Trust I I [Member]
Long-term debt, gross	$ 25.8		$ 25.8
Proceeds from issuance of trust preferred securities	$ 25
Standard Commercial P & C Business Unit [Member] | Quota Share Treaty Effective January 1, 2006 [Member]
Profit sharing payable			1.7
MGA Commercial Products [Member] | Quota Share Treaty Effective January 1, 2006 [Member]
Profit sharing payable			$ 0.3

Accounting Policies (Schedule o

Accounting Policies (Schedule of Profit Sharing Commission) (Details)	Jan. 01, 2008	Jan. 01, 2007	Jan. 01, 2006	Jul. 01, 2004	Jul. 01, 2003	Jul. 01, 2002	Jul. 01, 2001
Standard Commercial P & C Business Unit [Member]
Provisional loss ratio				64.20%	59.00%	59.00%	60.00%
Estimated ultimate loss ratio recorded to at December 31, 2015				66.10%	61.60%	64.50%	63.50%
MGA Commercial Products [Member]
Provisional loss ratio	65.00%	65.00%	65.00%
Estimated ultimate loss ratio recorded to at December 31, 2015	59.70%	64.00%	58.80%

Investments (Narrative) (Detail

Investments (Narrative) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)security	Dec. 31, 2014USD ($)security	Dec. 31, 2013USD ($)
Investments [Abstract]
Maximum restricted level of investment upon stockholders equity	10.00%	10.00%
Gross realized gains on investments	$ 6.7	$ 0.6	$ 10.9
Gross realized losses on investments	0.9	0.2	0.4
Proceeds from sale of available-for-sale securities	$ 51.7	$ 15.3	$ 33.4
Number of debt security positions | security	39	24
Recognized other-than-temporary losses on our debt securities portfolio	$ 3.3
Securities pledged for the benefit of various state insurance departments and reinsurers	$ 17.6	$ 20.3

Investments (Amortized Cost and

Investments (Amortized Cost and Estimated Fair Value of Investments in Debt and Equity Securities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Investments, Amortized Cost	$ 563,580	$ 476,130
Investments, Gross Unrealized Gains	26,122	35,076
Investments, Gross Unrealized Losses	(10,873)	(3,977)
Total investments	578,829	507,229
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Amortized Cost	24,951	25,360
Investments, Gross Unrealized Gains	23,391	31,086
Investments, Gross Unrealized Losses	(838)	(2)
Total investments	47,504	56,444
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Amortized Cost	538,629	450,770
Investments, Gross Unrealized Gains	2,731	3,990
Investments, Gross Unrealized Losses	(10,035)	(3,975)
Total investments	531,325	450,785
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	76,323	93,280
Investments, Gross Unrealized Gains	7	29
Investments, Gross Unrealized Losses	(61)	(4)
Total investments	76,269	93,305
Corporate Bonds [Member] | Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Amortized Cost	122,894	28,643
Investments, Gross Unrealized Gains	637	884
Investments, Gross Unrealized Losses	(1,822)	(85)
Total investments	121,709	29,442
Collateralized Corporate Bank Loans [Member] | Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Amortized Cost	83,434	115,358
Investments, Gross Unrealized Gains	44	206
Investments, Gross Unrealized Losses	(1,882)	(1,915)
Total investments	81,596	113,649
Municipal Bonds [Member] | Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Amortized Cost	196,446	161,546
Investments, Gross Unrealized Gains	1,888	2,384
Investments, Gross Unrealized Losses	(5,966)	(1,601)
Total investments	192,368	162,329
Collateralized Mortgage Backed Securities [Member] | Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Amortized Cost	59,532	51,943
Investments, Gross Unrealized Gains	155	487
Investments, Gross Unrealized Losses	(304)	(370)
Total investments	$ 59,383	$ 52,060

Investments (Major Categories o

Investments (Major Categories of Investment Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Investment income	$ 14,842	$ 13,139	$ 13,760
Investment expenses	(873)	(756)	(876)
Investment income (loss), net of expenses	13,969	12,383	12,884
U.S. Treasury securities and obligations of U.S. Government [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment income	670	395	143
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment income	1,435	1,378	2,341
Collateralized Corporate Bank Loans [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment income	4,727	4,400	4,653
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment income	5,901	5,232	5,245
Collateralized Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment income	1,288	995	737
Cash and Cash Equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment income	148	230	157
Parent Company [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment income (loss), net of expenses	120	133	(190)
Equity Securities [Member] | Equity Securities All Others [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment income	$ 673	$ 509	$ 484

Investments (Major Categories52

Investments (Major Categories of Net Realized Gains on Investments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Gain on investments	$ 5,826	$ 408	$ 10,540
Other-than-temporary impairments	(3,323)	(274)
Net realized gain	2,503	134	10,540
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Gain on investments		263	853
Collateralized Corporate Bank Loans [Member]
Schedule of Available-for-sale Securities [Line Items]
Gain on investments	126	109	373
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Gain on investments	(83)	(140)	(156)
Collateralized Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gain on investments	240	32
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gain on investments	$ 5,543	$ 144	$ 9,470

Investments (Summary of Gross U

Investments (Summary of Gross Unrealized Loss Position) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 months or less	$ 291,131	$ 158,413
Unrealized Losses 12 months or less	(5,269)	(2,225)
Fair Value Longer than 12 months	28,890	27,548
Unrealized Losses Longer than 12 months	(5,604)	(1,752)
Fair Value Total	320,021	185,961
Unrealized Losses Total	(10,873)	(3,977)
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 months or less	284,547	158,284
Unrealized Losses 12 months or less	(4,431)	(2,223)
Fair Value Longer than 12 months	28,890	27,548
Unrealized Losses Longer than 12 months	(5,604)	(1,752)
Fair Value Total	313,437	185,832
Unrealized Losses Total	(10,035)	(3,975)
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 months or less	6,584	129
Unrealized Losses 12 months or less	(838)	(2)
Fair Value Total	6,584	129
Unrealized Losses Total	(838)	(2)
U.S. Treasury securities and obligations of U.S. Government [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 months or less	41,428	15,005
Unrealized Losses 12 months or less	(61)	(4)
Fair Value Total	41,428	15,005
Unrealized Losses Total	(61)	(4)
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 months or less	96,475	7,552
Unrealized Losses 12 months or less	(1,822)	(85)
Fair Value Total	96,475	7,552
Unrealized Losses Total	(1,822)	(85)
Collateralized Corporate Bank Loans [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 months or less	65,868	64,712
Unrealized Losses 12 months or less	(1,758)	(824)
Fair Value Longer than 12 months	3,532	8,898
Unrealized Losses Longer than 12 months	(124)	(1,091)
Fair Value Total	69,400	73,610
Unrealized Losses Total	(1,882)	(1,915)
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 months or less	44,525	50,546
Unrealized Losses 12 months or less	(488)	(945)
Fair Value Longer than 12 months	25,310	15,684
Unrealized Losses Longer than 12 months	(5,478)	(656)
Fair Value Total	69,835	66,230
Unrealized Losses Total	(5,966)	(1,601)
Collateralized Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 months or less	36,251	20,469
Unrealized Losses 12 months or less	(302)	(365)
Fair Value Longer than 12 months	48	2,966
Unrealized Losses Longer than 12 months	(2)	(5)
Fair Value Total	36,299	23,435
Unrealized Losses Total	$ (304)	$ (370)

Investments (Schedule of Amorti

Investments (Schedule of Amortized Cost and Estimated Fair Value of Debt Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Due in one year or less	$ 76,739
Amortized Cost, Due after one year through five years	236,507
Amortized Cost, Due after five years through ten years	106,046
Amortized Cost, Amortized Cost Due after ten years	59,805
Debt Maturities, Amortized Cost	538,629	$ 450,770
Fair Value, Due in one year or less	76,560
Fair Value, Due after one year through five years	234,213
Fair Value, Due after five years through ten years	101,387
Fair Value, Due after ten years	59,782
Debt securities	531,325	450,785
Collateralized Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Debt Maturities, Amortized Cost	59,532
Debt securities	$ 59,383	$ 52,060

Fair Value (Fair Value of Asset

Fair Value (Fair Value of Assets Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	$ 531,325	$ 450,785
Equity securities	47,504	56,444
Debt and equity securities	578,829	507,229
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	76,269	93,305
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	121,709	29,442
Collateralized Corporate Bank Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	81,596	113,649
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	192,368	162,329
Collateralized Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	59,383	52,060
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	47,504	56,444
Debt and equity securities	47,504	56,444
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	517,238	436,187
Debt and equity securities	517,238	436,187
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	76,269	93,305
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	121,709	29,442
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	81,596	113,402
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	178,281	147,978
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	59,383	52,060
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	14,087	14,598
Debt and equity securities	14,087	14,598
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		247
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities	$ 14,087	$ 14,351

Fair Value (Fair Value, Assets

Fair Value (Fair Value, Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value [Abstract]
Beginning balance as of January 1	$ 14,598	$ 17,517
Sales	$ (370)	$ (3,490)
Settlements
Purchases
Issuances
Total realized/unrealized gains included in net income
Net gains included in other comprehensive income	$ (141)	$ 571
Transfers into Level 3
Transfers out of Level 3
Ending balance as of December 31	$ 14,087	$ 14,598

Goodwill and Intangible Asset57

Goodwill and Intangible Assets (Narrative) (Details) - USD ($)	Sep. 15, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill				$ 44,695,000	$ 44,695,000
Impairment of goodwill				$ 0	$ 0	$ 0
Weighted average period to amortize acquired intangible assets				13 years
Standard Commercial P & C Business Unit [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill				$ 2,100,000
Workers Compensation Business Unit [Member] | Renewal Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
One-time payment related to divestiture of renewal rights			$ 83,000
Gain (loss) on disposition of property, plant and equipment	$ 400,000		$ 200,000
Proceeds from sale of finite-lived assets	$ 115,000
TBIC Holding Corporation Inc [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Contingent consideration paid		$ 1,200,000
Potential remaining contingent purchase price, maximum				1,800,000
MGA Commercial Products [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill				19,800,000
Hallmark Select Business Unit [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill				17,400,000
Excess and Umbrella Business Unit [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill				7,700,000
General Aviation and Satellite Component [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill				9,700,000
Personal Lines Business Unit [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill				$ 5,400,000

Goodwill and Intangible Asset58

Goodwill and Intangible Assets (Schedule of Acquired Intangible Assets by Major Category) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Acquired Finite-Lived Intangible Assets [Line Items]
Total gross carrying amount	$ 44,384	$ 44,384
Total accumulated amortization	(29,425)	(26,957)
Total net carrying amount	14,959	17,427
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total gross carrying amount	32,177	32,177
Total accumulated amortization	(19,799)	(17,561)
Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total gross carrying amount	3,440	3,440
Total accumulated amortization	(2,159)	(1,929)
Management Agreement [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total gross carrying amount	3,232	3,232
Total accumulated amortization	(3,232)	(3,232)
Non-compete & Employment Agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total gross carrying amount	4,235	4,235
Total accumulated amortization	(4,235)	(4,235)
Insurance Licenses [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total gross carrying amount	$ 1,300	$ 1,300

Goodwill and Intangible Asset59

Goodwill and Intangible Assets (Schedule of Estimated Aggregate Amortization Expense for Finite-Lived Intangible Assets) (Details) $ in Thousands	Dec. 31, 2015USD ($)
Goodwill and Intangible Assets [Abstract]
2,016	$ 2,468
2,017	2,468
2,018	2,468
2,019	2,468
2,020	$ 2,468

Goodwill and Intangible Asset60

Goodwill and Intangible Assets (Schedule of Weighted Average Amortization Period for Definite Lived Intangible Assets by Major Class) (Details)	12 Months Ended
	Dec. 31, 2015
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 ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Other Assets [Abstract]
Profit sharing commission receivable	$ 228	$ 274
Accrued investment income	3,876	2,974
Debt issuance costs	1,145	1,104
Investment in unconsolidated trust subsidiaries	1,702	1,702
Fixed assets	4,120	1,620
Other assets	174	205
Other Assets, Total	$ 11,245	$ 7,879

Reserves for Unpaid Losses an62

Reserves for Unpaid Losses and Loss Adjustment Expenses (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
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	$ 7,000	$ 5,200
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense			$ 10,000
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	(6,953)	(5,203)	9,954
Loss Adjustment Expenses Recognized In 2010 [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			3,300
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		2,400
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense			1,700
Loss Adjustment Expenses Recognized In 2012 [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	1,100
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense		4,400	5,000
Loss Adjustment Expenses Recognized In 2013 [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		7,200
Unfavorable adjustment to prior years liability for unpaid claims and claims adjustment expense	1,500
Claims and Claim Adjustment Expenses Incurred Related to Prior Years			10,000
Loss Adjustment Expenses Recognized In 2014 [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	7,400
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			3,700
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	(5,400)	(4,100)
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			1,500
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	(2,000)	(1,900)
Specialty Commercial Segment [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			2,600
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	(2,000)
MGA Commercial Products [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		4,700
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	(200)
MGA Commercial Products [Member] | Loss Adjustment Expenses Recognized In 2013 [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Claims and Claim Adjustment Expenses Incurred Related to Prior Years			16,000
Hallmark Select Business Unit [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Claims and Claim Adjustment Expenses Incurred Related to Prior Years		(1,000)
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			2,300
Commerical Excess Liability [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		900
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	300
Medical Professional Liability Products [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		400
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	800
General Aviation [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		300
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	900
Personal Lines Business Unit [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Claims and Claim Adjustment Expenses Incurred Related to Prior Years		$ (2,900)
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]
Claims and Claim Adjustment Expenses Incurred Related to Prior Years			1,800
Personal Lines Business Unit [Member] | Loss Adjustment Expenses Recognized In 2014 [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	$ 2,600
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			400
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			$ 100

Reserves for Unpaid Losses an63

Reserves for Unpaid Losses and Loss Adjustment Expenses (Activity in the Reserves for Unpaid Losses and Loss Adjustment Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reserves for Unpaid Losses and Loss Adjustment Expenses [Abstract]
Balance at January 1	$ 415,135	$ 382,640	$ 313,416
Less reinsurance recoverable	91,943	70,172	49,584
Net Balance at January 1	323,192	312,468	263,832
Incurred related to:
Claims and Claim Adjustment Expenses Incurred Related to Current Year	237,102	215,258	251,391
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	(6,953)	(5,203)	9,954
Total incurred	230,149	210,055	261,345
Paid related to:
Current year	83,132	76,231	101,897
Prior years	122,122	123,100	110,812
Total paid	205,254	199,331	212,709
Net Balance at December 31	348,087	323,192	312,468
Plus reinsurance recoverable	102,791	91,943	70,172
Balance at December 31	$ 450,878	$ 415,135	$ 382,640

Reinsurance (Narrative) (Detail

Reinsurance (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Reinsurance [Abstract]
Paid loss recoverable	$ 11.1	$ 17

Reinsurance (Schedule of Reinsu

Reinsurance (Schedule of Reinsurance Ceded and Recoveries) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Premium Written :
Direct	$ 514,223	$ 473,233	$ 458,020
Assumed		(15)	2,007
Ceded premiums written	(157,279)	(148,866)	(99,262)
Net premiums written	356,944	324,352	360,765
Premium Earned:
Direct	494,643	461,367	434,022
Assumed		327	3,204
Ceded	(145,562)	(140,477)	(76,685)
Premiums Earned, Net, Property and Casualty	349,081	321,217	360,541
Reinsurance recoveries	$ 89,892	$ 99,911	$ 45,456

Revolving Credit Facility and66

Revolving Credit Facility and Notes Payable (Narrative) (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 15,000,000
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	$ 0
Facility B Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 30,000,000
Debt instrument, description of variable rate basis	prime rate or LIBOR plus 3.00%
Line of credit facility, unused capacity, commitment fee percentage	0.25%
Line of credit facility, commitment fee amount	$ 75,000
Line of credit facility, amount outstanding	$ 30,000,000
Line of credit facility, expiration date	Dec. 17, 2017
Letters of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 5,000,000
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%
London Interbank Offered Rate (LIBOR) [Member] | Facility B Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	3.00%

Subordinated Debt Securities (N

Subordinated Debt Securities (Narrative) (Details) - USD ($) $ in Millions	Aug. 23, 2007	Jun. 21, 2005	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Subordinated Debt [Member]
Subordinated Borrowing [Line Items]
Long-term debt, gross			$ 56.7		$ 56.7
Hallmark Statutory Trust I [Member]
Subordinated Borrowing [Line Items]
Long-term debt, gross		$ 30.9	$ 30.9
Debt instrument, maturity date		Jun. 15, 2035
Proceeds from issuance of trust preferred securities		$ 30
Proceeds from issuance of common stock		$ 0.9
Subordinated borrowing, interest rate			3.76%	7.725%
Debt instrument interest rate fixed to floating date		Jun. 15, 2015
Debt instrument, description of variable rate basis			interest adjusts quarterly to the three-month LIBOR rate plus 3.25 percentage points
Hallmark Statutory Trust I [Member] | Subordinated Debt [Member]
Subordinated Borrowing [Line Items]
Long-term debt, gross		$ 30.9
Proceeds from issuance of trust preferred securities		$ 30
Hallmark Statutory Trust I I [Member] | Subordinated Debt [Member]
Subordinated Borrowing [Line Items]
Long-term debt, gross	$ 25.8		$ 25.8
Debt instrument, maturity date			Sep. 15, 2037
Proceeds from issuance of trust preferred securities	25
Proceeds from issuance of common stock	$ 0.8
Subordinated borrowing, interest rate			8.28%
Debt instrument interest rate fixed to floating date			Sep. 15, 2017
Debt instrument, description of variable rate basis			three-month LIBOR rate plus 2.90 percentage points
London Interbank Offered Rate (LIBOR) [Member] | Hallmark Statutory Trust I [Member]
Subordinated Borrowing [Line Items]
Debt instrument, basis spread on variable rate			3.25%
London Interbank Offered Rate (LIBOR) [Member] | Hallmark Statutory Trust I I [Member] | Subordinated Debt [Member]
Subordinated Borrowing [Line Items]
Debt instrument, basis spread on variable rate			2.90%

Segment Information (Narrative)

Segment Information (Narrative) (Details)	12 Months Ended
	Dec. 31, 2015
American Hallmark Insurance Company [Member]
Net premiums written, percentage	34.00%
Hallmark Insurance Company (Payer) [Member]
Net premiums written, percentage	32.00%
Hallmark Specialty Insurance Company [Member]
Net premiums written, percentage	24.00%
Hallmark National Insurance Company [Member]
Net premiums written, percentage	10.00%

Segment Information (Schedule o

Segment Information (Schedule of Segment Reporting, by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues
Revenues	$ 90,071	$ 93,684	$ 97,197	$ 91,450	$ 88,004	$ 81,417	$ 80,836	$ 87,109	$ 372,402	$ 337,366	$ 389,428
Depreciation and Amortization Expense
Depreciation and Amortization Expense									3,516	3,224	4,300
Interest Expense
Interest Expense									3,906	4,576	4,599
Tax Expense (Benefit)
Income tax expense (benefit)	$ 1,641	$ 3,137	$ 2,899	$ 2,346	$ 1,833	$ 1,265	$ 391	$ 1,864	10,023	5,353	2,835
Pre-tax income (loss), net of non-controlling interest:
Consolidated pre-tax income (loss), net of non-controlling interest									31,886	18,782	11,080
Standard Commercial Segment [Member]
Revenues
Revenues									76,864	81,464	83,306
Depreciation and Amortization Expense
Depreciation and Amortization Expense									136	183	201
Tax Expense (Benefit)
Income tax expense (benefit)									1,436	622	312
Pre-tax income (loss), net of non-controlling interest:
Consolidated pre-tax income (loss), net of non-controlling interest									6,687	4,595	1,980
Specialty Commercial Segment [Member]
Revenues
Revenues									249,910	241,920	229,734
Depreciation and Amortization Expense
Depreciation and Amortization Expense									2,537	2,503	2,896
Tax Expense (Benefit)
Income tax expense (benefit)									11,609	9,690	3,613
Pre-tax income (loss), net of non-controlling interest:
Consolidated pre-tax income (loss), net of non-controlling interest									40,277	34,237	19,527
Personal Segment [Member]
Revenues
Revenues									45,538	20,404	71,081
Depreciation and Amortization Expense
Depreciation and Amortization Expense									779	515	1,111
Tax Expense (Benefit)
Income tax expense (benefit)									(1,345)	(574)	(398)
Pre-tax income (loss), net of non-controlling interest:
Consolidated pre-tax income (loss), net of non-controlling interest									(885)	1,226	(3,416)
Corporate [Member]
Revenues
Revenues									90	(6,422)	5,307
Depreciation and Amortization Expense
Depreciation and Amortization Expense									64	23	92
Interest Expense
Interest Expense									3,906	4,576	4,599
Tax Expense (Benefit)
Income tax expense (benefit)									(1,677)	(4,385)	(692)
Pre-tax income (loss), net of non-controlling interest:
Consolidated pre-tax income (loss), net of non-controlling interest									(14,193)	(21,276)	(7,011)
Parent Company [Member]
Revenues
Revenues									18,173	17,747	8,328
Depreciation and Amortization Expense
Depreciation and Amortization Expense									65	68	92
Interest Expense
Interest Expense									3,906	4,576	4,599
Tax Expense (Benefit)
Income tax expense (benefit)									$ (1,273)	$ (1,623)	$ (1,227)

Segment Information (Schedule70

Segment Information (Schedule of Segment Reporting Additional Information by Segment) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets	$ 1,076,600	$ 980,869
Standard Commercial Segment [Member]
Assets	156,722	145,355
Specialty Commercial Segment [Member]
Assets	660,263	590,852
Personal Segment [Member]
Assets	239,632	222,183
Corporate [Member]
Assets	19,983	22,479
Parent Company [Member]
Assets	$ 375,213	$ 342,255

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	267,500	544,999	779,999

Earnings Per Share (Schedule of

Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Numerator for both basic and diluted earnings per share:
Net income (loss) attributable to Hallmark Financial Services, Inc.									$ 21,863	$ 13,429	$ 8,245
Denominator, basic shares									19,211	19,197	19,263
Effect of dilutive securities:
Stock-based compensation awards									194	169	98
Denominator, diluted shares									19,405	19,366	19,361
Basic earnings per share: (in dollars per share)	$ 0.18	$ 0.35	$ 0.33	$ 0.28	$ 0.20	$ 0.18	$ 0.09	$ 0.24	$ 1.14	$ 0.70	$ 0.43
Diluted earnings per share: (in dollars per share)	$ 0.17	$ 0.35	$ 0.33	$ 0.28	$ 0.19	$ 0.18	$ 0.09	$ 0.23	$ 1.13	$ 0.69	$ 0.43

Regulatory Capital Restrictio73

Regulatory Capital Restrictions (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Regulatory Capital Restrictions [Line Items]
Retained earnings, unappropriated	$ 68.3
Aggregate amount of shareholder dividends, maximum available next current fiscal year	18.5
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital	8	$ 8
Hallmark Insurance Company (Payer) [Member] | Hallmark (Payee) [Member]
Regulatory Capital Restrictions [Line Items]
Insurance agency management fee	$ 1.3	1.1	$ 8.2
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	$ 27.6
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 Specialty Insurance Company [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	$ 193.7
Statutory accounting practices, statutory capital and surplus, balance	247.2	210
Statutory accounting practices, statutory net income amount	$ 24.6	$ 22.3	$ 6.1

Share-based Payment Arrangeme74

Share-based Payment Arrangements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	May. 29, 2015	Apr. 02, 2015	Sep. 08, 2014	Apr. 10, 2013	Jul. 27, 2012	Jun. 30, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Not Yet Recognized Next Twelve Months							$ 39
Stock options, Granted								0	0	0
Options contractual term							2 years 6 months
Other than options, granted		8,616
Long Term Incentive Plan 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, incentive stock options to purchase number of shares							564,956
Share-based compensation arrangement by share-based payment award, non-qualified stock options to purchase number of shares							304,157
Share-based compensation arrangement by share-based payment award, restricted stock options to purchase number of shares							289,830
Long Term Incentive Plan 2005 [Member] | Option Issued Prior To 2009 [Member] | First Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Percentage							10.00%
Long Term Incentive Plan 2005 [Member] | Option Issued Prior To 2009 [Member] | Second Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Percentage							20.00%
Long Term Incentive Plan 2005 [Member] | Option Issued Prior To 2009 [Member] | Third Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Percentage							30.00%
Long Term Incentive Plan 2005 [Member] | Option Issued Prior To 2009 [Member] | Fourth Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Percentage							40.00%
Long Term Incentive Plan 2015 [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, restricted stock options to purchase number of shares							155,027
Stock options, Granted							0
Prior to 2009 Incentive Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights							terminate five to ten years from the date of grant
Prior to 2009 Incentive Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Based Compensation Incentive Stock Options Grant Under Incentive Plan Termination Period							5 years
Prior to 2009 Incentive Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Based Compensation Incentive Stock Options Grant Under Incentive Plan Termination Period							10 years
2009 Incentive Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Based Compensation Incentive Stock Options Grant Under Incentive Plan Termination Period							10 years
Share-based compensation arrangement by share-based payment award, award vesting rights							vest in equal annual increments on each of the first seven anniversary dates
Incentive Stock Options 2010 [Member] | Long Term Incentive Plan 2005 [Member] | 25,000 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share based payment award options vested and expected to vest number							25,000
Share-based compensation arrangement by share-based payment award, award vesting period							3 years
Stock Based Compensation Incentive Stock Options Grant Under Incentive Plan Termination Period							10 years
Non Qualified Stock Options [Member] | Long Term Incentive Plan 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period							6 months
Non qualified stock options termination period							10 years
Non Qualified Stock Options [Member] | Long Term Incentive Plan 2005 [Member] | 200,000 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, non-qualified stock options to purchase number of shares							200,000
Share-based compensation arrangement by share-based payment award, award vesting period							7 years
Non qualified stock options termination period							10 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost							$ 800
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Not Yet Recognized Next Twelve Months							400
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognize During Remainder of Year Two							300
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognize During Remainder of Year Three							100
Allocated share-based compensation expense							226	$ 49	$ 145
Income tax benefit of share-based payments recognized in income							$ 79	$ 17	$ 51
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options, granted	103,351		175,983	122,823	129,463		103,351
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		8,616					8,616
Other than options granted, weighted average grant date fair value							$ 11.10	$ 9.66			$ 9.20
Other than options, forfeited						9,280	83,380

Share-based Payment Arrangeme75

Share-based Payment Arrangements (Summary of the Status of Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Payment Arrangements [Abstract]
Stock options, Outstanding at January 1, 2015	1,062,134
Stock options, Granted		0	0	0
Stock options, exercised (in shares)	(91,827)
Stock options, forfeited or expired	(101,194)
Stock options, Outstanding at December 31, 2015	869,113	1,062,134
Stock options, Exercisable at December 31, 2015	817,328
Weighted Average Exercise Price, Outstanding at January 1, 2015	$ 9.51
Weighted Average Exercise Price, Exercised	7.17
Weighted Average Exercise Price, Forfeited or expired	11.67
Weighted Average Exercise Price, Outstanding at December 31, 2015	9.51	$ 9.51
Weighted Average Exercise Price, Exercisable at December 31, 2015	$ 9.69
Average Remaining Contractual Term, Outstanding at December 31, 2015 (in years)	2 years 6 months
Average Remaining Contractual Term, Exercisable at December 31, 2015 (in years)	2 years 6 months
Aggregate Intrinsic Value, Outstanding at December 31, 2015	$ 2,120
Aggregate Intrinsic Value, Exercisable at December 31, 2015	$ 1,857

Share-based Payment Arrangeme76

Share-based Payment Arrangements (Schedule of Options, Grants in Period, Grant Date Intrinsic Value) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost of share-based payments (non-cash)	$ 383	$ 222	$ 352
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised	393	412
Cost of share-based payments (non-cash)	157	173	207
Income tax benefit of share-based payments recognized in income	$ 30	$ 30	$ 30

Share-based Payment Arrangeme77

Share-based Payment Arrangements (Schedule of Nonvested Restricted Stock Units Activity) (Details) - shares	May. 29, 2015	Apr. 02, 2015	Sep. 08, 2014	Apr. 10, 2013	Jul. 27, 2012	Jun. 30, 2013	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		8,616
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, 2015							285,216
Granted	103,351		175,983	122,823	129,463		103,351
Vested		(8,616)					(8,616)
Forfeited						(9,280)	(83,380)
Nonvested at December 31, 2015							296,571

Retirement Plans (Narrative) (D

Retirement Plans (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2012USD ($)
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets		$ 10,419	$ 11,290	$ 10,851	$ 9,754
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents		$ 10,120	$ 10,948
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%
Net periodic pension cost		$ (80)	$ (4)	$ 385
Interest cost on projected benefit obligation		518	532	505
Defined benefit plan, expected return on plan assets		$ (701)	(698)	(615)
Defined contribution plan, number of separate plans | item		2
Defined contribution plan, employer discretionary contribution amount		$ 300	300	$ 300
Scenario, Forecast for 2016 [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic pension cost	$ (21)
Interest cost on projected benefit obligation	512
Defined benefit plan, expected return on plan assets	(645)
Defined benefit plan, amortization of losses (gains)	$ 112
Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets		300	400
Bonds and Notes [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets		3,400
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets		6,700
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents		$ 6,697	$ 7,230
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 ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Assumptions (end of period):
Discount rate used in determining benefit obligation	4.12%	3.86%	4.49%
Reconciliation of funded status (end of period):
Accumulated benefit obligation	$ (12,915)	$ (13,909)	$ (12,284)
Projected benefit obligation	(12,915)	(13,909)	(12,284)
Fair value of plan assets	10,419	11,290	10,851
Defined benefit plan, funded status of plan, total	(2,496)	(2,619)	(1,433)
Net actuarial loss	(3,957)	(4,000)	(2,277)
Accumulated other comprehensive loss	(3,957)	(4,000)	(2,277)
Prepaid pension cost	1,461	1,381	844
Net amount recognized as of December 31	(2,496)	(2,619)	(1,433)
Changes in projected benefit obligation:
Benefit obligation as of beginning of period	13,909	12,284	13,439
Interest cost	518	532	505
Actuarial liability loss	(646)	1,947	(824)
Benefits paid	(866)	(854)	(836)
Benefit obligation as of end of period	12,915	13,909	12,284
Change in plan assets:
Fair value of plan assets as of beginning of period	11,290	10,851	9,754
Actual return on plan assets (net of expenses)	(5)	760	1,565
Employer contributions		533	368
Benefits paid	866	854	836
Fair value of plan assets as of end of period	$ 10,419	$ 11,290	$ 10,851
Net periodic pension cost:
Service cost - benefits earned during the period
Interest cost on projected benefit obligation	$ 518	$ 532	$ 505
Expected return on plan assets	(701)	(698)	(615)
Recognized actuarial loss	103	162	495
Net periodic pension cost	$ (80)	$ (4)	$ 385
Discount rate	3.86%	4.49%	3.89%
Expected return on plan assets	6.50%	6.50%	6.50%

Retirement Plans (Estimated Fut

Retirement Plans (Estimated Future Benefit Payments) (Details) $ in Thousands	Dec. 31, 2015USD ($)
Retirement Plans [Abstract]
2,016	$ 899
2,017	913
2,018	907
2,019	896
2,020	881
2021-2025	$ 4,205

Retirement Plans (Weighted-Aver

Retirement Plans (Weighted-Average Asset Allocation for the Defined Benefit Cash Balance Plan) (Details)	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations	100.00%	100.00%
Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations	33.00%	33.00%
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations	64.00%	64.00%
Other Liabilities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, actual plan asset allocations	3.00%	3.00%

Retirement Plans (Schedule of F

Retirement Plans (Schedule of Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	$ 10,120	$ 10,948
Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	3,423	3,718
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets, excluding cash and cash equivalents	6,697	7,230
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	6,697	7,230
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	6,697	7,230
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	3,423	3,718
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	$ 3,423	$ 3,718

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Income Taxes [Abstract]
Operating loss carryforwards	$ 1,216
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 ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax liabilities:
Deferred policy acquisition costs	$ (7,128)	$ (7,261)
Net unrealized holding gain on investments	(5,339)	(10,886)
Agency relationship	(66)	(75)
Intangible assets	(5,118)	(5,613)
Goodwill	(519)	(479)
Fixed assets	(861)	(432)
Other	(367)	(133)
Total deferred tax liabilities	(19,398)	(24,879)
Deferred tax assets:
Unearned premiums	10,592	10,042
Amortization of non-compete agreements	298	357
Pension liability	1,385	1,400
Net operating loss carry-forward	426	518
Unpaid loss and loss adjustment expense	6,920	6,871
Rent reserve	297	355
Reinsurance payable	421	387
Bonus accrual	759	809
Investment impairments	1,120	625
Other	540	423
Total deferred tax assets	22,758	21,787
Deferred federal income taxes, net	$ 3,360	$ (3,092)

Income Taxes (Schedule of Effec

Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Abstract]
Computed expected income tax expense (benefit) at statutory regulatory tax rate									$ 11,160	$ 6,574	$ 3,878
Meals and entertainment									32	27	25
Tax exempt interest									(1,259)	(1,276)	(1,314)
Dividends received deduction									(141)	(107)	(101)
State taxes (net of federal benefit)									176	259	276
Other									55	(124)	71
Income tax expense (benefit)	$ 1,641	$ 3,137	$ 2,899	$ 2,346	$ 1,833	$ 1,265	$ 391	$ 1,864	10,023	5,353	2,835
Current income tax (benefit) expense									11,053	5,746	3,092
Deferred income tax expense (benefit)									(1,030)	(393)	(257)
Income tax (benefit) expense	$ 1,641	$ 3,137	$ 2,899	$ 2,346	$ 1,833	$ 1,265	$ 391	$ 1,864	$ 10,023	$ 5,353	$ 2,835

Income Taxes (Summary of Operat

Income Taxes (Summary of Operating Loss Carryforwards) (Details) $ in Thousands	Dec. 31, 2015USD ($)
Net Operating Loss	$ 1,216
Operating Loss Expires In 2022 [Member]
Net Operating Loss	878
Operating Loss Expires In 2028 [Member]
Net Operating Loss	2
Operating Loss Expires in 2029 [Member]
Net Operating Loss	25
Operating Loss Expires In 2031 [Member]
Net Operating Loss	45
Operating Loss Expires In 2032 [Member]
Net Operating Loss	77
Operating Loss Expires In 2033 [Member]
Net Operating Loss	73
Operating Loss Expires In 2034 [Member]
Net Operating Loss	59
Operating Loss Expires in 2035 [Member]
Net Operating Loss	$ 57

Commitments and Contingencies87

Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating leases, rent expense, net		$ 2.2	$ 2.3	$ 2.2
Contingent liability premium taxes		2.5
Contingent liability penalties and interest		0.7
TBIC Holding Corporation Inc [Member]
Contingent consideration paid	$ 1.2
Potential remaining contingent purchase price, maximum		$ 1.8

Commitments and Contingencies88

Commitments and Contingencies (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands	Dec. 31, 2015USD ($)
Commitments and Contingencies [Abstract]
2,016	$ 2,065
2,017	1,899
2,018	1,563
2,019	1,482
2,020	1,442
2021 and thereafter	1,015
Total minimum lease payments	9,466	[1]
Minimum sublease rentals due under noncancelable subleases	$ 600
[1]	Minimum lease payments have not been reduced by minimum sublease rentals of $0.6 million due in the future under noncancelable subleases.

Changes in Accumulated Other 89

Changes in Accumulated Other Comprehensive Income Balances (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 17,801
Other comprehensive income:
Change in net actuarial gain (loss)	43	$ (1,723)	$ 2,268
Tax effect on change in net actuarial gain (loss)	(15)	603	(794)
Unrealized holding (losses) gains arising during the period	(10,191)	3,543	22,094
Tax effect on unrealized gains (losses) arising during the period	3,567	(1,240)	(7,733)
Reclassification adjustment for gains included in net realized gains	(5,826)	(408)	(10,540)
Tax effect on reclassification adjustment for gains included in income tax expense	2,039	143	3,689
Other comprehensive income, net of tax	(10,383)	918	8,984
Ending Balance	7,418	17,801
Pension Liability [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(2,600)	(1,480)	(2,954)
Other comprehensive income:
Change in net actuarial gain (loss)	43	(1,723)	2,268
Tax effect on change in net actuarial gain (loss)	(15)	603	(794)
Other comprehensive income, net of tax	28	(1,120)	1,474
Ending Balance	(2,572)	(2,600)	(1,480)
Unrealized Gains (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	20,401	18,363	10,853
Other comprehensive income:
Unrealized holding (losses) gains arising during the period	(10,191)	3,543	22,094
Tax effect on unrealized gains (losses) arising during the period	3,567	(1,240)	(7,733)
Reclassification adjustment for gains included in net realized gains	(5,826)	(408)	(10,540)
Tax effect on reclassification adjustment for gains included in income tax expense	2,039	143	3,689
Other comprehensive income, net of tax	(10,411)	2,038	7,510
Ending Balance	9,990	20,401	18,363
Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	17,801	16,883	7,899
Other comprehensive income:
Change in net actuarial gain (loss)	43	(1,723)	2,268
Tax effect on change in net actuarial gain (loss)	(15)	603	(794)
Unrealized holding (losses) gains arising during the period	(10,191)	3,543	22,094
Tax effect on unrealized gains (losses) arising during the period	3,567	(1,240)	(7,733)
Reclassification adjustment for gains included in net realized gains	(5,826)	(408)	(10,540)
Tax effect on reclassification adjustment for gains included in income tax expense	2,039	143	3,689
Other comprehensive income, net of tax	(10,383)	918	8,984
Ending Balance	7,418	17,801	$ 16,883
Parent Company [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	17,801
Other comprehensive income:
Ending Balance	$ 7,418	$ 17,801

Unaudited Selected Quarterly 90

Unaudited Selected Quarterly Financial Information (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Unaudited Selected Quarterly Financial Information [Abstract]
Total revenue	$ 90,071	$ 93,684	$ 97,197	$ 91,450	$ 88,004	$ 81,417	$ 80,836	$ 87,109	$ 372,402	$ 337,366	$ 389,428
Total expense	84,984	83,849	87,922	83,761	82,404	76,689	78,794	80,697	340,516	318,584	378,348
Income (loss) before tax	5,087	9,835	9,275	7,689	5,600	4,728	2,042	6,412	31,886	18,782	11,080
Income tax expense (benefit)	1,641	3,137	2,899	2,346	1,833	1,265	391	1,864	10,023	5,353	2,835
Net income (loss)	$ 3,446	$ 6,698	$ 6,376	$ 5,343	$ 3,767	$ 3,463	$ 1,651	$ 4,548	21,863	13,429	8,245
Net income (loss) attributable to Hallmark Financial Services, Inc.									$ 21,863	$ 13,429	$ 8,245
Basic earnings (loss) per share:	$ 0.18	$ 0.35	$ 0.33	$ 0.28	$ 0.20	$ 0.18	$ 0.09	$ 0.24	$ 1.14	$ 0.70	$ 0.43
Diluted earnings (loss) per share:	$ 0.17	$ 0.35	$ 0.33	$ 0.28	$ 0.19	$ 0.18	$ 0.09	$ 0.23	$ 1.13	$ 0.69	$ 0.43

Schedule II - Condensed Finan91

Schedule II - Condensed Financial Information of Registrant (Parent Company Only) (Balance Sheet) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and cash equivalents	$ 114,446	$ 130,985	$ 141,666	$ 85,145
Investment in subsidiaries	1,702	1,702
Deferred federal income taxes	1,779
Other assets	11,245	7,879
Total assets	1,076,600	980,869
LIABILITIES AND STOCKHOLDERS' EQUITY
Revolving credit facility payable	30,000
Subordinated debt securities	56,702	56,702
Accrued Income Taxes		968
Accounts payable and other accrued expenses	23,253	25,766
Total liabilities	814,574	728,832
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	123,480	123,194
Retained earnings	141,501	119,638
Accumulated other comprehensive income	7,418	17,801
Treasury stock (1,775,512 shares in 2015 and 1,655,306 in 2014), at cost	(14,130)	(12,353)
Total stockholders equity	262,026	252,037	238,118	220,537
Total liabilities and stockholders' equity	1,076,600	980,869
Parent Company [Member]
ASSETS
Cash and cash equivalents	8,014	11,839	$ 8,063	$ 1,112
Investment in subsidiaries	361,769	325,608
Deferred federal income taxes	942	747
Other assets	4,488	4,061
Total assets	375,213	342,255
LIABILITIES AND STOCKHOLDERS' EQUITY
Revolving credit facility payable	30,000
Subordinated debt securities	56,702	56,702
Current federal income tax payable	72	64
Accounts payable and other accrued expenses	26,413	33,452
Total liabilities	113,187	90,218
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	123,480	123,194
Retained earnings	141,501	119,638
Accumulated other comprehensive income	7,418	17,801
Treasury stock (1,775,512 shares in 2015 and 1,655,306 in 2014), at cost	(14,130)	(12,353)
Total stockholders equity	262,026	252,037
Total liabilities and stockholders' equity	$ 375,213	$ 342,255

Schedule II - Condensed Finan92

Schedule II - Condensed Financial Information of Registrant (Parent Company Only) (Balance Sheet Extra) (Details) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
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	1,775,512	1,655,306
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	1,775,512	1,655,306

Schedule II - Condensed Finan93

Schedule II - Condensed Financial Information of Registrant (Parent Company Only) (Comprehensive (loss) Income) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Investment loss, net of expenses									$ 13,969	$ 12,383	$ 12,884
Management fee income									5,952	5,279	5,830
Total revenues	$ 90,071	$ 93,684	$ 97,197	$ 91,450	$ 88,004	$ 81,417	$ 80,836	$ 87,109	372,402	337,366	389,428
Interest expense									3,906	4,576	4,599
Amortization of intangible assets									2,468	2,526	3,115
Loss before equity in undistributed earnings (loss) of subsidiaries and income tax benefit	5,087	9,835	9,275	7,689	5,600	4,728	2,042	6,412	31,886	18,782	11,080
Income tax benefit	$ 1,641	$ 3,137	$ 2,899	$ 2,346	$ 1,833	$ 1,265	$ 391	$ 1,864	10,023	5,353	2,835
Net income (loss) attributable to Hallmark Financial Services, Inc.									21,863	13,429	8,245
Parent Company [Member]
Investment loss, net of expenses									120	133	(190)
Dividend income from subsidiaries									8,000	8,000
Management fee income									10,053	9,614	8,518
Total revenues									18,173	17,747	8,328
Operating expenses									10,222	9,759	7,764
Interest expense									3,906	4,576	4,599
Operating Costs and Expenses									14,128	14,335	12,363
Loss before equity in undistributed earnings (loss) of subsidiaries and income tax benefit									4,045	3,412	(4,035)
Income tax benefit									(1,273)	(1,623)	(1,227)
Income (loss) before equity in undistributed earnings of subsidiaries									5,318	5,035	(2,808)
Equity in undistributed share of earnings (loss) in subsidiaries									16,545	8,394	11,053
Net income (loss) attributable to Hallmark Financial Services, Inc.									21,863	13,429	8,245
Comprehensive income (loss)									$ 11,480	$ 14,347	$ 17,229

Schedule II - Condensed Finan94

Schedule II - Condensed Financial Information of Registrant (Parent Company Only) (Cash Flows) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income (loss)	$ 3,446	$ 6,698	$ 6,376	$ 5,343	$ 3,767	$ 3,463	$ 1,651	$ 4,548	$ 21,863	$ 13,429	$ 8,245
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization expense									3,516	3,224	4,300
Deferred income tax expense (benefit)									(1,030)	(393)	(257)
Realized loss									(2,503)	(134)	(10,540)
Change in current federal income tax (recoverable) payable									(2,747)	249	(799)
Change in all other liabilities									(1,420)	7,946	(6,551)
Change in all other assets									(645)	(628)	17,141
Net cash provided by operating activities									52,936	33,684	68,338
Cash flows from investing activities:
Purchases of property and equipment, net									(3,608)	(546)	(673)
Purchase of fixed maturity and equity securities									(265,482)	(188,749)	(222,399)
Maturities and redemptions of investment securities									169,409	146,777	214,738
Net cash used in investing activities									(96,289)	(42,242)	(11,817)
Cash flows from financing activities:
Proceeds from exercise of employee stock options									658	1,155
Purchase of treasury shares									(2,532)	(1,805)
Activity under revolving credit facility, net									30,000	(1,473)
Payment of debt issuance costs									(96)
Net cash provided by (used in) financing activities									26,814	(2,123)
(Decrease) Increase in cash and cash equivalents									(16,539)	(10,681)	56,521
Cash and cash equivalents at beginning of year				130,985				141,666	130,985	141,666	85,145
Cash and cash equivalents at end of year	114,446				130,985				114,446	130,985	141,666
Supplemental cash flow information:
Interest paid									3,906	4,576	4,599
Income taxes (recovered) paid									13,800	5,497	3,891
Parent Company [Member]
Cash flows from operating activities:
Net income (loss)									21,863	13,429	8,245
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization expense									65	68	92
Deferred income tax expense (benefit)									(195)	183	1,182
Undistributed share of (earnings) loss of subsidiaries									(16,545)	(8,394)	(11,053)
Change in current federal income tax (recoverable) payable									8	(3,290)	(3,694)
Change in all other liabilities									(7,039)	4,081	12,232
Change in all other assets									147	(131)	63
Net cash provided by operating activities									(1,696)	5,946	7,067
Cash flows from investing activities:
Purchases of property and equipment, net									(159)	(47)	(116)
Capital contribution to subsidiaries									(30,000)
Net cash used in investing activities									(30,159)	(47)	(116)
Cash flows from financing activities:
Proceeds from exercise of employee stock options									658	1,155
Purchase of treasury shares									(2,532)	(1,805)
Activity under revolving credit facility, net									30,000	(1,473)
Payment of debt issuance costs									(96)
Net cash provided by (used in) financing activities									28,030	(2,123)
(Decrease) Increase in cash and cash equivalents									(3,825)	3,776	6,951
Cash and cash equivalents at beginning of year				$ 11,839				$ 8,063	11,839	8,063	1,112
Cash and cash equivalents at end of year	$ 8,014				$ 11,839				8,014	11,839	8,063
Supplemental cash flow information:
Interest paid									3,906	4,576	4,599
Income taxes (recovered) paid									$ (1,086)	$ 1,481	$ 1,285

Schedule III - Supplementary In

Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	$ 20,366	$ 20,746	$ 22,586
Future Policy Benefits, Losses, Claims and Loss Adjustment Expenses	450,878	415,135	382,640
Unearned Premiums	216,407	196,826	185,303
Premium Revenue	349,081	321,217	360,541
Net Investment Income	13,969	12,383	12,884
Benefits Claims, Losses and Settlement Expenses	230,149	210,055	261,345
Amortization of Deferred Policy Acquisition Costs	32,674	40,890	57,277
Other Operating Expenses	103,614	99,586	106,964
Net Premiums Written	356,944	324,352	360,765
Personal Segment [Member]
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	1,232	729	660
Future Policy Benefits, Losses, Claims and Loss Adjustment Expenses	29,932	29,595	38,294
Unearned Premiums	20,976	15,483	17,989
Premium Revenue	38,828	14,083	63,800
Net Investment Income	1,235	1,633	2,065
Benefits Claims, Losses and Settlement Expenses	34,414	8,964	52,656
Amortization of Deferred Policy Acquisition Costs	5,066	9,315	17,759
Other Operating Expenses	12,205	9,977	16,957
Net Premiums Written	44,072	16,802	45,644
Standard Commercial Segment [Member]
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	5,633	5,892	6,124
Future Policy Benefits, Losses, Claims and Loss Adjustment Expenses	105,971	109,672	111,473
Unearned Premiums	33,701	34,822	36,309
Premium Revenue	72,613	78,311	78,176
Net Investment Income	3,623	4,663	5,031
Benefits Claims, Losses and Settlement Expenses	47,071	51,130	56,143
Amortization of Deferred Policy Acquisition Costs	4,237	3,389	8,254
Other Operating Expenses	22,820	25,479	25,313
Net Premiums Written	71,097	76,912	79,466
Specialty Commercial Segment [Member]
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	13,501	14,125	15,802
Future Policy Benefits, Losses, Claims and Loss Adjustment Expenses	314,975	275,868	232,873
Unearned Premiums	161,730	146,521	131,005
Premium Revenue	237,640	228,823	218,565
Net Investment Income	11,524	12,643	11,021
Benefits Claims, Losses and Settlement Expenses	148,664	149,961	152,546
Amortization of Deferred Policy Acquisition Costs	23,371	28,186	31,264
Other Operating Expenses	58,212	53,851	56,974
Net Premiums Written	241,775	230,638	235,655
Corporate [Member]
Supplementary Insurance Information, by Segment [Line Items]
Net Investment Income, Corporate	(2,413)	(6,556)	(5,233)
Other Operating Expenses	$ 10,377	$ 10,279	$ 7,720

Schedule IV - Reinsurance (Deta

Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Premium Earned:
Gross amount	$ 494,643	$ 461,367	$ 434,022
Ceded to other companies	145,562	140,477	76,685
Assumed from other companies		327	3,204
Net premiums earned	$ 349,081	$ 321,217	$ 360,541
Percentage of amount assumed to net	0.00%	0.10%	0.89%
Property, Liability and Casualty Insurance Segment [Member]
Premium Earned:
Gross amount	$ 494,643	$ 461,367	$ 434,022
Ceded to other companies	145,562	140,477	76,685
Assumed from other companies		327	3,204
Net premiums earned	$ 349,081	$ 321,217	$ 360,541
Percentage of amount assumed to net	0.00%	0.10%	0.89%

Schedule VI - Supplemental Info

Schedule VI - Supplemental Information Concerning Property-Casualty Insurance Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplemental Information For Property, Casualty Insurance Underwriters [Abstract]
Deferred Policy Acquisition Costs	$ 20,366	$ 20,746	$ 22,586
Reserves for Unpaid Claims and Claim Adjustment Expenses	450,878	415,135	382,640
Unearned Premiums	216,407	196,826	185,303
Earned Premiums	349,081	321,217	360,541
Net Investment Income	13,969	12,383	12,884
Claims and Claim Adjustment Expenses Incurred Related to Current Year	237,102	215,258	251,391
Claims and Claim Adjustment Expenses Incurred Related to Prior Years	(6,953)	(5,203)	9,954
Amortization of Deferred Policy Acquisition Costs	32,674	40,890	57,277
Paid Claims and Claims Adjustment Expenses	205,254	199,331	212,709
Premiums Written	$ 356,944	$ 324,352	$ 360,765