Hallmark Financial Services (HALL) 10-Q 9 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 09, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	HALLMARK FINANCIAL SERVICES INC
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,123,093
Entity Central Index Key	0000819913
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Debt securities, available-for-sale, at fair value (amortized cost; $530,516 in 2019 and $550,268 in 2018)	$ 533,148	$ 545,870
Equity securities (cost; $68,709 in 2019 and $68,709 in 2018)	94,012	80,896
Other investments (cost; $3,763 in 2019 and $3,763 in 2018)	2,585	1,148
Total investments	629,745	627,914
Cash and cash equivalents	67,670	35,594
Restricted cash	3,486	4,877
Ceded unearned premiums	150,883	133,031
Premiums receivable	144,674	119,778
Accounts receivable	1,332	1,619
Receivable for securities	2,581	3,369
Reinsurance recoverable	300,155	252,029
Deferred policy acquisition costs	20,308	14,291
Goodwill	44,695	44,695
Intangible assets, net	6,323	7,555
Deferred federal income taxes, net		4,983
Prepaid expenses	3,282	2,588
Other assets	30,634	12,571
Total assets	1,405,768	1,264,894
Liabilities:
Revolving credit facility payable	30,000	30,000
Subordinated debt securities (less unamortized debt issuance cost of $872 in 2019 and $898 in 2018)	55,830	55,804
Reserves for unpaid losses and loss adjustment expenses	551,543	527,247
Unearned premiums	351,630	298,061
Reinsurance balances payable	73,977	67,328
Pension liability	1,946	2,018
Payable for securities	3,167	698
Federal income tax payable	870	4
Deferred federal income taxes, net	143
Accounts payable and other accrued expenses	47,126	28,202
Total liabilities	1,116,232	1,009,362
Commitments and contingencies (Note 17)
Stockholders' equity:
Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2019 and 2018	3,757	3,757
Additional paid-in capital	122,778	123,168
Retained earnings	189,249	161,195
Accumulated other comprehensive loss	(1,047)	(6,660)
Treasury stock (2,749,738 shares in 2019 and 2,846,131 in 2018), at cost	(25,201)	(25,928)
Total stockholders' equity	289,536	255,532
Total liabilities and stockholders' equity	$ 1,405,768	$ 1,264,894

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets Parenthetical [Abstract]
Debt securities, available-for-sale, cost (in dollars)	$ 530,516	$ 550,268
Equity securities, available for sale, cost (in dollars)	68,709	68,709
Other investments, cost	3,763	3,763
Subordinated debt securities, unamortized debt issuance cost (in dollars)	$ 872	$ 898
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	2,749,738	2,846,131

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Operations [Abstract]
Gross premiums written	$ 218,236	$ 173,219	$ 405,552	$ 326,724
Ceded premiums written	(94,393)	(83,373)	(164,306)	(145,445)
Net premiums written	123,843	89,846	241,246	181,279
Change in unearned premiums	(17,344)	1,132	(35,717)	1,646
Net premiums earned	106,499	90,978	205,529	182,925
Investment income, net of expenses	5,412	4,406	10,523	8,846
Investment gains (losses), net	6,817	533	18,754	(4,302)
Finance charges	1,797	1,161	3,531	2,201
Commission and fees	364	1,032	657	1,735
Other income	14	15	30	61
Total revenues	120,903	98,125	239,024	191,466
Losses and loss adjustment expenses	73,226	63,648	143,313	127,323
Operating expenses	29,336	26,360	56,582	53,573
Interest expense	1,240	1,128	2,493	2,155
Amortization of intangible assets	617	617	1,234	1,234
Total expenses	104,419	91,753	203,622	184,285
Income before tax	16,484	6,372	35,402	7,181
Income tax expense	3,455	1,282	7,348	1,444
Net income	$ 13,029	$ 5,090	$ 28,054	$ 5,737
Net income per share:
Basic (in dollars per share)	$ 0.72	$ 0.28	$ 1.55	$ 0.32
Diluted (in dollars per share)	$ 0.71	$ 0.28	$ 1.54	$ 0.31

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 13,029	$ 5,090	$ 28,054	$ 5,737
Other comprehensive income:
Change in net actuarial gain	37	26	72	53
Tax effect on change in net actuarial gain	(8)	(5)	(15)	(11)
Unrealized holding gains arising during the period	3,460	2,321	11,233	1,926
Tax effect on unrealized holding gains arising during the period	(727)	(487)	(2,359)	(404)
Reclassification adjustment for gains included in net income	(60)	(381)	(4,201)	(366)
Tax effect on reclassification adjustment for gains included in net income	13	80	883	77
Other comprehensive income, net of tax	2,715	1,554	5,613	1,275
Comprehensive income	$ 15,744	$ 6,644	$ 33,667	$ 7,012

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 (Loss) [Member]	Treasury Stock [Member]	Total
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1,2018 | Accounting Standards Update 2016-01 [Member]			$ 16,993	$ (16,993)
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018			(2,619)	2,619
Balance at Dec. 31, 2017	$ 3,757	$ 123,180	136,474	12,234	$ (24,527)
Equity based compensation		1
Acquisition of treasury stock					(1,464)
Shares issued under employee benefit plans					406
Shares issued under employee benefit plans (value)		(164)
Net income			5,737			$ 5,737
Additional minimum pension liability, net of tax				42
Unrealized holding gains (losses) arising during period, net of tax				1,522
Reclassification adjustment for (gains) losses included in net income, net of tax				(289)
Balance at Jun. 30, 2018	3,757	123,017	156,585	(865)	(25,585)	256,909
Balance at Mar. 31, 2018	3,757	123,224	151,495	(2,419)	(24,904)
Equity based compensation		(43)
Acquisition of treasury stock					(1,087)
Shares issued under employee benefit plans					406
Shares issued under employee benefit plans (value)		(164)
Net income			5,090			5,090
Additional minimum pension liability, net of tax				21
Unrealized holding gains (losses) arising during period, net of tax				1,834
Reclassification adjustment for (gains) losses included in net income, net of tax				(301)
Balance at Jun. 30, 2018	3,757	123,017	156,585	(865)	(25,585)	256,909
Balance at Dec. 31, 2018	3,757	123,168	161,195	(6,660)	(25,928)	255,532
Equity based compensation		197
Acquisition of treasury stock					(1,380)
Shares issued under employee benefit plans					2,107
Shares issued under employee benefit plans (value)		(587)
Net income			28,054			28,054
Additional minimum pension liability, net of tax				57
Unrealized holding gains (losses) arising during period, net of tax				8,874
Reclassification adjustment for (gains) losses included in net income, net of tax				(3,318)
Balance at Jun. 30, 2019	3,757	122,778	189,249	(1,047)	(25,201)	289,536
Balance at Mar. 31, 2019	3,757	122,638	176,220	(3,762)	(25,201)
Equity based compensation		140
Net income			13,029			13,029
Additional minimum pension liability, net of tax				29
Unrealized holding gains (losses) arising during period, net of tax				2,733
Reclassification adjustment for (gains) losses included in net income, net of tax				(47)
Balance at Jun. 30, 2019	$ 3,757	$ 122,778	$ 189,249	$ (1,047)	$ (25,201)	$ 289,536

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 28,054	$ 5,737
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization expense	2,626	2,479
Deferred federal income taxes	3,634	(988)
Investment (gains) losses, net	(18,754)	4,302
Share-based payments expense	197	1
Change in ceded unearned premiums	(17,852)	(15,181)
Change in premiums receivable	(24,896)	(7,815)
Change in accounts receivable	287	(538)
Change in deferred policy acquisition costs	(6,017)	1,944
Change in unpaid losses and loss adjustment expenses	24,296	(6,548)
Change in unearned premiums	53,569	13,535
Change in reinsurance recoverable	(48,126)	(32,117)
Change in reinsurance balances payable	6,649	13,072
Change in current federal income tax payable	866	7,719
Change in all other liabilities	(2,708)	2,899
Change in all other assets	4,860	1,604
Net cash provided by (used in) operating activities	6,685	(9,895)
Cash flows from investing activities:
Purchases of property and equipment	(2,447)	(1,118)
Purchases of investment securities	(97,292)	(97,610)
Maturities, sales and redemptions of investment securities	123,599	124,873
Net cash provided by investing activities	23,860	26,145
Cash flows from financing activities:
Proceeds from exercise of employee stock options	1,520	242
Purchase of treasury shares	(1,380)	(1,464)
Net cash provided by (used in) financing activities	140	(1,222)
Increase in cash and cash equivalents and restricted cash	30,685	15,028
Cash and cash equivalents and restricted cash at beginning of period	40,471	67,633
Cash and cash equivalents and restricted cash at end of period	$ 71,156	$ 82,661

General

General	6 Months Ended
	Jun. 30, 2019
General [Abstract]
General	1. General Hallmark Financial Services, Inc. (“Hallmark” and, together with subsidiaries, “we,” “us” or “our”) is an insurance holding company that offers commercial and personal insurance that serves businesses and individuals in specialty and niche markets. We focus on marketing, distributing, underwriting and servicing property and casualty insurance products that require specialized underwriting expertise or market knowledge. We believe this approach provides us the best opportunity to achieve favorable policy terms and pricing. The insurance policies we produce are written by our six insurance company subsidiaries as well as unaffiliated insurers. We pursue our business activities primarily through subsidiaries whose operations are organized into product-specific business units that are supported by our insurance company subsidiaries. Our Commercial Auto business unit offers primary and excess commercial vehicle insurance products and services; our E&S Casualty business unit offers primary and excess liability, excess public entity liability and E&S package insurance products and services; our E&S Property business unit offers primary and excess commercial property insurance for both catastrophe and non-catastrophe exposures; our Professional Liability business unit offers healthcare and financial lines professional liability insurance products and services primarily for businesses, medical professionals, medical facilities and senior care facilities; and our Aerospace & Programs business unit offers general aviation and satellite launch property/casualty insurance products and services, as well as certain specialty programs. These products and services were previously reported as the Contract Binding and Specialty Commercial operating units. Our Commercial Accounts business unit (f/k/a Standard Commercial P&C operating unit) offers package and monoline property/casualty and occupational accident insurance products. Effective June 1, 2016 we ceased marketing new or renewal occupational accident policies. Our former Workers Compensation operating unit specialized in small and middle market workers compensation business. Effective July 1, 2015, we no longer market or retain any risk on new or renewal workers compensation policies. Our Specialty Personal Lines business unit offers non-standard personal automobile and renters insurance products and services. Our insurance company subsidiaries supporting these business units are American Hallmark Insurance Company of Texas (“AHIC”), Hallmark Insurance Company (“HIC”), Hallmark Specialty Insurance Company (“HSIC”), Hallmark County Mutual Insurance Company, Hallmark National Insurance Company and Texas Builders Insurance Company. These business units are segregated into three reportable industry segments for financial accounting purposes. The Specialty Commercial Segment includes our Commercial Auto business unit, our E&S Casualty business unit, our E&S Property business unit, our Professional Liability business unit and our Aerospace & Programs business unit. The Standard Commercial Segment includes our Commercial Accounts business unit and the run-off from our former Workers Compensation operating unit. The Personal Segment consists solely of our Specialty Personal Lines business unit. The realignment of our business units did not affect the comparability of our reportable industry segments.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2019
Basis of Presentation [Abstract]
Basis of Presentation	2. Basis of Presentation Our unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include our accounts and the accounts of our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2018 included in our Annual Report on Form 10‑K filed with the SEC. The interim financial data as of June 30, 2019 and 2018 is unaudited. However, in the opinion of management, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The results of operations for the periods ended June 30, 2019 are not necessarily indicative of the operating results to be expected for the full year. 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. Reclassifications Certain prior year amounts have been reclassified to conform with current year presentation. Use of Estimates in the Preparation of the Financial Statements Our preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect our reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the date of our consolidated financial statements, as well as our reported amounts of revenues and expenses during the reporting period. Refer to “Critical Accounting Estimates and Judgments” under Item 7 of our Annual Report on Form 10‑K for the year ended December 31, 2018 for information on accounting policies that we consider critical in preparing our consolidated financial statements. Actual results could differ materially from those estimates. 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 : A revolving credit facility with Frost Bank had a carried value of $30.0 million and a fair value of $30.2 million as of June 30, 2019. This revolving credit facility would be included in Level 3 of the fair value hierarchy if it was reported at fair value. Subordinated Debt Securities : Our trust preferred securities have a carried value of $55.8 million and a fair value of $42.6 million as of June 30, 2019. The fair value of our trust preferred securities is based on discounted cash flows using a current yield to maturity of 8.0%, which is based on similar issues to discount future cash flows. Our trust preferred securities 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 recoverable/payable, other assets and other liabilities, the carrying amounts approximate fair value because of the short maturity of such financial instruments. 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 have determined that we do not have a variable interest in the Trusts. Therefore, the Trusts are not included in our consolidated financial statements. We are also involved in the normal course of business with variable interest entities (“VIE’s”) primarily as a passive investor in mortgage-backed securities and certain collateralized corporate bank loans issued by third party VIE’s. The maximum exposure to loss with respect to these investments is the investment carrying values included in the consolidated balance sheets. Adoption of New Accounting Pronouncements In February 2018, the FASB issued updated guidance that allows a reclassification of the stranded tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act of 2017 (TCJA). Current guidance requires the effect of a change in tax laws or rates on deferred tax balances to be reported in income from continuing operations in the accounting period that includes the period of enactment, even if the related income tax effects were originally charged or credited directly to AOCI. The amount of the reclassification would include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of the enactment of TCJA related to items in AOCI. The updated guidance was effective for reporting periods beginning after December 15, 2018 and is to be applied retrospectively to each period in which the effect of the TCJA related to items remaining in AOCI are recognized or at the beginning of the period of adoption. Early adoption is permitted. The Company adopted the updated guidance effective January 1, 2018 and elected to reclassify the income tax effects of the TCJA from AOCI to retained earnings as of January 1, 2018. This reclassification resulted in a decrease in retained earnings of $2.6 million as of January 1, 2018 and an increase in AOCI by the same amount. In March 2017, the FASB issued ASU 2017‑08, “Premium Amortization on Purchased Callable Securities” (Subtopic 310‑20). ASU 2017‑08 is intended to enhance the accounting for amortization of premiums for purchased callable debt securities. The guidance amends the amortization period for certain purchased callable debt securities held at a premium. Securities that contain explicit, noncontingent call features that are callable at fixed prices and on preset dates should shorten the amortization period for the premium to the earliest call date (and if the call option is not exercised, the effective yield is reset using the payment terms of the debt security). The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. The adoption of ASU 2017‑08 had no impact on our financial results and disclosures. In January 2017, the FASB issued ASU 2017‑01, “Clarifying the Definition of a Business (Topic 715)”. ASU 2017‑01 is intended to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017‑01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The adoption of this standard did not have a material impact on our financial condition or results of operations. In January 2016, the FASB issued ASU 2016‑01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825‑10). ASU 2016‑01 requires equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. ASU 2016‑01 also requires us to assess the ability to realize our deferred tax assets (“DTAs”) related to an available-for-sale debt security in combination with our other DTAs. ASU 2016‑01 was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance resulted in the recognition of $17.0 million of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that increased retained earnings as of January 1, 2018 and decreased AOCI by the same amount. The Company elected to report changes in the fair value of equity investments in investment gains (losses) in the Consolidated Statement of Operations. At December 31, 2017, equity investments were classified as available-for-sale on the Company’s balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments . In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, ASU 2016-02 modifies current guidance for lessors' accounting. ASU 2016-02 is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. During 2018, the FASB issued several amendments and targeted improvements to ease the application of the standard, including the addition of a transition approach that gives the Company the option of applying the standard at either the beginning of the earliest comparative period presented or the beginning of the period of adoption. We adopted the standard on its effective date of January 1, 2019. We also elected certain practical expedients that allow us not to reassess existing leases under the new guidance. As of June 30, 2019, $17.1 million of right-of-use assets and $17.6 million of lease liabilities for operating leases were added to the other assets and other liabilities line items of the balance sheet, respectively, as a result of the adoption of this update. In August 2016, the FASB issued ASU 2016‑15, “Classification of Certain Cash Receipts and Cash Payments” (Topic 230). ASU 2016‑15 will reduce diversity in practice on how eight specific cash receipts and payments are classified on the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The adoption of this new guidance did not have a material impact on our financial results or disclosures. In November 2016, the FASB issued ASU 2016‑18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The purpose of ASU 2016‑18 is to eliminate the diversity in classifying and presenting changes in restricted cash in the statement of cash flows. The new guidance requires restricted cash to be combined with cash and cash equivalents when reconciling the beginning and ending balances of cash on the statement of cash flows, thereby no longer requiring transactions such as transfers between restricted and unrestricted cash to be treated as a cash flow activity. Further, the new guidance requires the nature of the restrictions to be disclosed, as well as a reconciliation between the balance sheet and the statement of cash flows on how restricted and unrestricted cash are segregated. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within that fiscal year, with early adoption permitted. Effective January 1, 2018, we retrospectively adopted this new guidance which did not have a material impact on our financial results or disclosures. In May 2014, the FASB issued ASU 2014‑09, guidance which revises the criteria for revenue recognition. 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. Revenue from insurance contracts is excluded from the scope of this new guidance. While insurance contracts are excluded from this guidance, policy fee income, billing and other fees and fee income related to property business written as a cover-holder through a Lloyds Syndicate is subject to this updated guidance. The adoption of this new guidance did not have a material impact on our financial results or disclosures. Recently Issued Accounting Pronouncements On August 28, 2018, the FASB issued ASU 2018-13, “Fair Value Measurement: Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement” (Topic 820), which amends ASC 820 to add, remove, and modify fair value measurement disclosure requirements. The requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements have all been removed. However, the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period must be disclosed along with the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements (or other quantitative information if it is more reasonable). Finally, for investments measured at net asset value, the requirements have been modified so that the timing of liquidation and the date when restrictions from redemption might lapse are only disclosed if the investee has communicated the timing to the entity or announced the timing publicly. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. As the amendments are only disclosure related, our financial statements will not be materially impacted by this update. In January 2017, the FASB issued ASU 2017‑04, “Simplifying the Test for Goodwill Impairment” (Topic 350). ASU 2017‑04 requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). It eliminates Step 2 of the current two-step goodwill impairment test, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit’s goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are currently evaluating the impact that the adoption of ASU 2017‑04 will have on our financial results and disclosures. In June 2016, the FASB issued ASU 2016‑13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016‑13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and available-for-sale debt securities, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. ASU 2016‑13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. ASU 2016‑13 requires a modified retrospective transition method and early adoption is permitted. We are currently evaluating the impact that the adoption of this standard will have on our financial results and disclosures, but do not anticipate that any potential impact would be material.

Fair Value

Fair Value	6 Months Ended
	Jun. 30, 2019
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 and an equity warrant classified as Other Investments. 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 sources. 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 June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 48,422 $ - $ 48,422 Corporate bonds — 225,810 533 226,343 Collateralized corporate bank loans — 132,678 - 132,678 Municipal bonds — 115,849 - 115,849 Mortgage-backed — 9,856 - 9,856 Total debt securities — 532,615 533 533,148 Total equity securities 94,012 — — 94,012 Total other investments 2,585 — — 2,585 Total investments $ 96,597 $ 532,615 $ 533 $ 629,745 As of December 31, 2018 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 48,106 $ — $ 48,106 Corporate bonds — 241,861 291 242,152 Collateralized corporate bank loans — 126,528 — 126,528 Municipal bonds — 115,527 — 115,527 Mortgage-backed — 13,557 — 13,557 Total debt securities — 545,579 291 545,870 Total equity securities 80,896 — — 80,896 Total other investments 1,148 — — 1,148 Total investments $ 82,044 $ 545,579 $ 291 $ 627,914 Due to significant unobservable inputs into the valuation model for one corporate bond as of June 30, 2019 and December 31, 2018, we classified this investment as Level 3 in the fair value hierarchy. The corporate bond is a convertible senior note and its fair value was estimated by the sum of the bond value using an income approach discounting the scheduled interest and principal payments and the conversion feature utilizing a binomial lattice model. We also estimated the fair value of the corporate bond utilizing an as-if converted basis into the underlying securities. Significant changes in the unobservable inputs in the fair value measurement of this corporate bond 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 six months ended June 30, 2019 and 2018 (in thousands): Beginning balance as of January 1, 2019 $ 291 Sales — Settlements — Purchases — Issuances — Total realized/unrealized gains included in net income 242 Net gain included in other comprehensive income — Transfers into Level 3 — Transfers out of Level 3 — Ending balance as of June 30, 2019 $ 533 Beginning balance as of January 1, 2018 $ 3,757 Sales (2,925) Settlements — Purchases — Issuances — Total realized/unrealized gains included in net income 104 Net gains included in other comprehensive income — Transfers into Level 3 — Transfers out of Level 3 (621) Ending balance as of June 30, 2018 $ 315

Investments

Investments	6 Months Ended
	Jun. 30, 2019
Investments [Abstract]
Investments	4. Investments The amortized cost and estimated fair value of investments in debt and equity securities by category is as follows (in thousands): Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value As of June 30, 2019 U.S. Treasury securities and obligations of U.S. Government $ 48,369 $ 112 $ (59) $ 48,422 Corporate bonds 223,770 2,813 (240) 226,343 Collateralized corporate bank loans 133,840 59 (1,221) 132,678 Municipal bonds 114,638 1,304 (93) 115,849 Mortgage-backed 9,899 51 (94) 9,856 Total debt securities 530,516 4,339 (1,707) 533,148 Total equity securities 68,709 30,657 (5,354) 94,012 Total other investments 3,763 — (1,178) 2,585 Total investments $ 602,988 $ 34,996 $ (8,239) $ 629,745 As of December 31, 2018 U.S. Treasury securities and obligations of U.S. Government $ 48,609 $ 5 $ (508) $ 48,106 Corporate bonds 243,314 440 (1,602) 242,152 Collateralized corporate bank loans 131,779 19 (5,270) 126,528 Municipal bonds 112,574 3,791 (838) 115,527 Mortgage-backed 13,992 11 (446) 13,557 Total debt securities 550,268 4,266 (8,664) 545,870 Total equity securities 68,709 20,693 (8,506) 80,896 Total other investments 3,763 — (2,615) 1,148 Total investments $ 622,740 $ 24,959 $ (19,785) $ 627,914 Major categories of net investment gains (losses) on investments are summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 U.S. Treasury securities and obligations of U.S. Government $ — $ — $ — $ — Corporate bonds (6) (14) 17 (22) Collateralized corporate bank loans 21 35 38 47 Municipal bonds 46 2 4,147 (19) Mortgage-backed (1) (1) (1) 1 Equity securities — 359 — 359 Gain on investments 60 381 4,201 366 Unrealized gains (losses) on equity securities 5,356 553 13,116 (3,904) Unrealized gains (losses) on other investments 1,401 (401) 1,437 (764) Investment gains (losses), net $ 6,817 $ 533 $ 18,754 $ (4,302) We realized gross gains on investments of $0.2 million and $0.5 million during the three months ended June 30, 2019 and 2018, respectively and $4.4 million and $0.6 million for the six months ended June 30, 2019 and 2018, respectively. We realized gross losses on investments of $0.1 million and $ 0.1 million for the three months ended June 30, 2019 and 2018, respectively, and $0.2 million and $0.2 million for the six months ended June 30, 2019 and 2018, respectively. 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 June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ — $ — $ 23,216 $ (59) $ 23,216 $ (59) Corporate bonds 18,143 (144) 36,011 (96) 54,154 (240) Collateralized corporate bank loans 85,804 (871) 17,564 (350) 103,368 (1,221) Municipal bonds 10,898 (55) 5,735 (38) 16,633 (93) Mortgage-backed 3,518 (6) 3,911 (88) 7,429 (94) Total debt securities 118,363 (1,076) 86,437 (631) 204,800 (1,707) Total equity securities 7,952 (1,588) 4,524 (3,766) 12,476 (5,354) Total other investments 28 (10) 2,557 (1,168) 2,585 (1,178) Total investments $ 126,343 $ (2,674) $ 93,518 $ (5,565) $ 219,861 $ (8,239) As of December 31, 2018 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ 18,902 $ (181) $ 28,201 $ (327) $ 47,103 $ (508) Corporate bonds 117,450 (907) 100,060 (695) 217,510 (1,602) Collateralized corporate bank loans 120,410 (4,938) 4,931 (332) 125,341 (5,270) Municipal bonds 14,281 (96) 25,891 (742) 40,172 (838) Mortgage-backed 6,592 (60) 5,986 (386) 12,578 (446) Total debt securities 277,635 (6,182) 165,069 (2,482) 442,704 (8,664) Total equity securities 30,981 (3,699) 4,475 (4,807) 35,456 (8,506) Total other investments 1,148 (2,615) — — 1,148 (2,615) Total investments $ 309,764 $ (12,496) $ 169,544 $ (7,289) $ 479,308 $ (19,785) We had a total of 173 debt securities with an unrealized loss, of which 117 were in an unrealized loss position for less than one year and 56 were in an unrealized loss position for a period of one year or greater, as of June 30, 2019. We had a total of 328 debt securities with an unrealized loss, of which 221 were in an unrealized loss position for less than one year and 107 were in an unrealized loss position for a period of one year or greater, as of December 31, 2018. We consider these losses as a temporary decline in value as they are predominately on securities 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. We complete a detailed analysis each quarter to assess whether any decline in the fair value of any fixed maturity investment below cost is deemed other-than-temporary. All fixed maturity investments 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 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. Details regarding the carrying value of the other investments portfolio as of June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, December 31, 2019 2018 Investment Type Equity warrant $ 2,585 $ 1,148 Total other investments $ 2,585 $ 1,148 We acquired this warrant in an active market. The warrant entitles us to buy the underlying common stock of a publicly traded company at a fixed price until the expiration date of January 19, 2021. The amortized cost and estimated fair value of debt securities at June 30, 2019 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 $ 117,306 $ 117,293 Due after one year through five years 276,397 278,718 Due after five years through ten years 96,047 95,636 Due after ten years 30,867 31,645 Mortgage-backed 9,899 9,856 $ 530,516 $ 533,148

Pledged Investments

Pledged Investments	6 Months Ended
	Jun. 30, 2019
Pledged Investments [Abstract]
Pledged Investments	5. Pledged Investments We have pledged certain of our securities for the benefit of various state insurance departments and reinsurers. These securities are included with our available-for-sale debt securities because we have the ability to trade these securities. We retain the interest earned on these securities. These securities had a carrying value of $29.7 million and $29.5 million at June 30, 2019 and December 31, 2018, respectively.

Reserves for Unpaid Losses and

Reserves for Unpaid Losses and Loss Adjustment Expenses	6 Months Ended
	Jun. 30, 2019
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 consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands): June 30, June 30, 2019 2018 Balance at January 1 $ 527,247 527,100 Less reinsurance recoverable 221,716 154,612 Net balance at January 1 305,531 372,488 Incurred related to: Current year 141,909 122,870 Prior years 1,404 4,453 Total incurred 143,313 127,323 Paid related to: Current year 38,563 28,321 Prior years 107,899 140,339 Total paid 146,462 168,660 Net balance at June 30 302,382 331,151 Plus reinsurance recoverable 249,161 189,401 Balance at June 30 $ 551,543 $ 520,552 The impact from the unfavorable (favorable) net prior years’ loss development on each reporting segment is presented below: June 30, 2019 2018 Specialty Commercial Segment $ 5,203 $ 6,861 Standard Commercial Segment (3,583) (1,560) Personal Segment (216) (848) Corporate — — Total (favorable) net prior year development $ 1,404 $ 4,453 The following describes the primary factors behind each segment’s prior accident year reserve development for the six months ended June 30, 2019 and 2018: Six months ended June 30, 2019: · Specialty Commercial Segment. Our Commercial Auto business unit experienced net unfavorable development in the 2017 and prior accident years primarily in the primary commercial auto liability line of business, partially offset by net favorable development in the primary commercial auto line of business in the 2018 accident year. Our E&S Casualty business unit experienced net unfavorable development primarily in our E&S package insurance products in the 2017 and prior accident years, partially offset by net favorable development in the 2018 accident year. We experienced net favorable development in our E&S Property and Professional Liability business units, partially offset by net unfavorable development in our Aerospace & Programs business unit. · Standard Commercial Segment. Our Commercial Accounts business unit experienced net favorable development in the 2018, 2017, 2014 and 2012 and prior accident years primarily in the general liability line of business, partially offset by net unfavorable development primarily in the general liability line of business in the 2016 and 2015 accident years. Our Commercial Accounts business unit experienced net favorable development in the 2017 and 2015 accident years in the occupational accident line of business, partially offset by net unfavorable development in the 2016 accident year. The run-off from our former Workers Compensation operating unit experienced net favorable development in the 2015 and 2012 and prior accident years. · Personal Segment. Net favorable development in our Specialty Personal Lines business unit was mostly attributable to the 2018, 2017, 2015, 2013 and prior accident years, partially offset by unfavorable development in the 2016 and 2014 accident years . Six months ended June 30, 2018: · Specialty Commercial Segment. Our Commercial Auto business unit experienced net unfavorable development in the 2016 and prior accident years primarily in the commercial auto liability line of business, partially offset by favorable development primarily in the commercial auto liability line of business in the 2017 accident year. We experienced net unfavorable development in our E&S Property, Professional Liability, E&S Casualty and Aerospace& Programs business units. · Standard Commercial Segment. Our Commercial Accounts business unit experienced net favorable development in the 2016 and prior accident years primarily in the general liability line of business, partially offset by net unfavorable development primarily in the commercial property line of business in the 2017 accident year and net unfavorable development in the 2017 and prior accident years in the occupational accident line of business. · Personal Segment. Net favorable development in our Specialty Personal Lines operating unit was mostly attributable to the 2013 through 2017 accident years, partially offset by unfavorable development in the 2012 and prior accident years .

Share-based Payment Arrangement

Share-based Payment Arrangements	6 Months Ended
	Jun. 30, 2019
Share-Based Payment Arrangements [Abstract]
Share-Based Payment Arrangements	7. 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 June 30, 2019, there were no outstanding incentive stock options and outstanding non-qualified stock options to purchase 14,157 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. Our 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 June 30, 2019, restricted stock units representing the right to receive up to 383,530 shares of our common stock were outstanding under the 2015 LTIP. There were no stock option awards granted under the 2015 LTIP as of June 30, 2019. Stock Options: Incentive stock options granted under the 2005 LTIP prior to 2009 vested 10%, 20%, 30% and 40% on the first, second, third and fourth anniversary dates of the grant, respectively, and terminated 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. 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 vested in equal annual increments on each of the first seven anniversary dates and terminated ten years from the date of grant. A summary of the status of our stock options as of June 30, 2019 and changes during the six months then ended is presented below: Average Remaining Aggregate Number of Weighted Average Contractual Intrinsic Value Shares Exercise Price Term (Years) ($000) Outstanding at January 1, 2019 244,157 $ 6.63 Granted — — Exercised (230,000) $ 6.61 Forfeited or expired — $ — Outstanding at June 30, 2019 14,157 $ 6.99 2.5 $ 102 Exercisable at June 30, 2019 14,157 $ 6.99 2.5 $ 102 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): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Intrinsic value of options exercised $ — $ 122 $ 845 $ 122 Cost of share-based payments (non-cash) $ — $ — $ — $ — Income tax benefit of share-based payments recognized in income $ — $ — $ — $ — As of June 30, 2019, there was no unrecognized compensation cost related to non-vested stock options granted under our plans which is expected to be recognized in the future. 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 during the first six months of 2019 or 2018. Restricted Stock Units: Restricted stock units awarded under the 2015 LTIP represent the right to receive shares of common stock upon the satisfaction of vesting requirements, performance criteria and other terms and conditions. Restricted stock units vest and, if performance criteria have been satisfied, shares of common stock become issuable on March 31 of the third calendar year following the year of grant. The performance criteria for all restricted stock units require that we achieve certain compound average annual growth rates in book value per share as well as certain average combined ratio percentages 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. 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. 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 restricted stock units granted in 2015, 2016, 2017 and 2018 was $11.10, $11.41, $10.20 and $10.87 per unit, respectively. We incurred compensation expense of $140 thousand and $197 thousand related to restricted stock units during the three months and six months ended June 30, 2019, respectively. We incurred compensation (benefit) expense of ($43) thousand and $1 thousand related to restricted stock units during the three and six months ended June 30, 2018, respectively. We recorded income tax benefit of $29 thousand and $41 thousand related to restricted stock units during the three months and six months ended June 30, 2019, respectively. We recorded income tax expense of $9 thousand related to restricted stock units during the three months ended June 30, 2018. We recorded de-minimus income tax expense related to restricted stock units during the six months ended June 30, 2018. The following table details the status of our restricted stock units as of and for the six months ended June 30, 2019 and 2018: Number of Restricted Stock Units 2019 2018 Nonvested at January 1 338,897 385,779 Granted — — Vested — (8,198) Forfeited (83,210) (182,743) Nonvested at June 30 255,687 194,838 As of June 30, 2019, there was $1.4 million of unrecognized grant date compensation cost related to unvested restricted stock units. Based on the current performance estimate, we expect to recognize $ 0.9 million of compensation cost related to unvested restricted stock units, of which $0.3 million is expected to be recognized during the remainder of 2019, $0.5 million is expected to be recognized in 2020 and $0.1 million is expected to be recognized in 2021.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2019
Segment Information [Abstract]
Segment Information	8. Segment Information The following is business segment information for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenues Specialty Commercial Segment $ 73,592 $ 72,081 $ 141,559 $ 145,205 Standard Commercial Segment 17,310 19,247 35,683 38,122 Personal Segment 23,116 7,916 42,599 15,536 Corporate 6,885 (1,119) 19,183 (7,397) Consolidated $ 120,903 $ 98,125 $ 239,024 $ 191,466 Pre-tax income (loss) Specialty Commercial Segment $ 10,427 $ 8,770 $ 18,395 $ 18,528 Standard Commercial Segment 2,057 2,656 3,564 3,975 Personal Segment 2,441 (1) 4,014 (23) Corporate 1,559 (5,053) 9,429 (15,299) Consolidated $ 16,484 $ 6,372 $ 35,402 $ 7,181 The following is additional business segment information as of the dates indicated (in thousands): June 30, December 31, Assets: 2019 2018 Specialty Commercial Segment $ 1,005,810 $ 858,262 Standard Commercial Segment 184,101 158,881 Personal Segment 170,348 226,431 Corporate 45,509 21,320 Consolidated $ 1,405,768 $ 1,264,894

Reinsurance

Reinsurance	6 Months Ended
	Jun. 30, 2019
Reinsurance [Abstract]
Reinsurance	9. 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 June 30, 2019 was with reinsurers that had an A.M. Best rating of “A–” or better. The following table shows earned premiums ceded and reinsurance loss recoveries by period (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Ceded earned premiums $ 76,309 $ 68,635 $ 146,455 $ 130,264 Reinsurance recoveries $ 58,975 $ 43,989 $ 107,564 $ 93,427

Revolving Credit Facility

Revolving Credit Facility	6 Months Ended
	Jun. 30, 2019
Revolving Credit Facility [Abstract]
Revolving Credit Facility	10. Revolving Credit Facility Our Second Restated Credit Agreement with Frost Bank (“Frost”) dated June 30, 2015, as amended to date, provides a $15.0 million revolving credit facility (“Facility A”), with a $5.0 million letter of credit sub-facility. The outstanding balance of the Facility A 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 Facility A and letter of credit fees at the rate of 1.00% per annum. All principal and accrued interest on Facility A becomes due and payable on June 30, 2020. As of June 30, 2019, we had no outstanding borrowings under Facility A. The Second Restated Credit Agreement with Frost also provides a $30.0 million revolving credit facility (“Facility B”), in addition to Facility A. 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 Facility B until December 17, 2019, at which time all amounts outstanding under Facility B are converted to a term loan. Through December 17, 2019, we pay Frost a quarterly fee 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, 2019, 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, 2019 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 on Facility B become due and payable on December 17, 2024. As of June 30, 2019, we had $30.0 million outstanding under Facility B. The obligations under both Facility A and Facility B are secured by a security interest in the capital stock of AHIC and HIC. Both Facility A and Facility B contain covenants that, among other things, require us to maintain certain financial and operating ratios and restrict certain distributions, transactions and organizational changes. We are in compliance with all of these covenants.

Subordinated Debt Securities

Subordinated Debt Securities	6 Months Ended
	Jun. 30, 2019
Subordinated Debt Securities [Abstract]
Subordinated Debt Securities	11. 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 interest rate on our Trust I subordinated debt securities was 7.725% 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 June 30, 2019, the principal balance of our Trust I subordinated debt was $30.9 million and the interest rate was 5.66% 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. The interest rate on our Trust II subordinated debt securities was 8.28% until September 15, 2017, after which interest adjusts 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 June 30, 2019, the principal balance of our Trust II subordinated debt was $25.8 million and the interest rate was 5.31% per annum.

Deferred Policy Acquisition Cos

Deferred Policy Acquisition Costs	6 Months Ended
	Jun. 30, 2019
Deferred Policy Acquisition Costs [Abstract]
Deferred Policy Acquisition Costs	12. Deferred Policy Acquisition Costs The following table shows total deferred and amortized policy acquisition cost activity by period (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Deferred $ (35,871) $ 6,306 $ (47,547) $ 16,671 Amortized 34,788 (8,242) 41,530 (18,615) Net $ (1,083) $ (1,936) $ (6,017) $ (1,944)

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2019
Earnings per Share [Abstract]
Earnings per Share	13. Earnings per Share The following table sets forth basic and diluted weighted average shares outstanding for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Weighted average shares - basic 18,123 18,067 18,090 18,116 Effect of dilutive securities 128 107 160 114 Weighted average shares - assuming dilution 18,251 18,174 18,250 18,230 For each of the three and six months ended June 30, 2019, no shares of common stock potentially issuable upon the exercise of employee stock options were excluded from the weighted average number of shares outstanding on a diluted basis. For each of the three and six months ended June 30, 2018, 62,500 shares of common stock potentially issuable upon the exercise of employee stock options were excluded from the weighted average number of shares outstanding on a diluted basis because the effect of such options would be anti-dilutive.

Net Periodic Pension Cost

Net Periodic Pension Cost	6 Months Ended
	Jun. 30, 2019
Net Periodic Pension Cost [Abstract]
Net Periodic Pension Cost	14. Net Periodic Pension Cost The following table details the net periodic pension cost incurred by period (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest cost $ 114 $ 106 $ 227 $ 212 Amortization of net loss 36 26 72 53 Expected return on plan assets (150) (174) (299) (347) Net periodic pension cost $ — $ (42) $ — $ (82) Contributed amount $ — $ — $ — $ — Refer to Note 14 to the consolidated financial statements in our Annual Report on Form 10‑K for the year ended December 31, 2018 for more discussion of our retirement plans.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Taxes [Abstract]
Income Taxes	15. Income Taxes Our effective income tax rate for the six months ended June 30, 2019 and 2018 was 20.8% and 20.1%, respectively. The effective tax rates for 2019 and 2018 were both favorably impacted by the lower statutory rate from the enactment of the Tax Cuts and Jobs Act in December 2017.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2019
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	16. Supplemental Cash Flow Information The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet to the total of the same such amounts shown in the statement of cash flows (in thousands): As of June 30, 2019 2018 Cash and cash equivalents $ 67,670 $ 79,583 Restricted cash 3,486 3,078 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 71,156 $ 82,661 Restricted cash represents amounts required to be set aside by a contractual agreement with a third-party insurer and amounts pledged for the benefit of various state insurance departments. The following table provides supplemental cash flow information for the six months ended June 30, 2019 and 2018: Six Months Ended June 30, 2019 2018 Interest paid $ 2,527 $ 2,145 Income taxes paid (recovered) $ 2,848 $ (5,287) Supplemental schedule of non-cash investing activities: Receivable for securities related to investment disposals $ 2,581 $ 3,780 Payable for securities related to investment purchases $ 3,167 $ 6,706

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies [Abstract]
Commitments and Contingencies	17. Commitments and Contingencies We are engaged in various 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	6 Months Ended
	Jun. 30, 2019
Changes in Accumulated Other Comprehensive Income Balances [Abstract]
Changes in Accumulated Other Comprehensive Income Balances	18. Changes in Accumulated Other Comprehensive Income Balances The changes in accumulated other comprehensive income balances as of June 30, 2019 and 2018 were as follows (in thousands): Accumulated Other Pension Unrealized Comprehensive Liability Gains (Loss) Income (Loss) Balance at December 31, 2017 $ (2,310) $ 14,544 $ 12,234 Other comprehensive income: Change in net actuarial gain 53 — 53 Tax effect on change in net actuarial gain (11) — (11) Unrealized holding gains arising during the period — 1,926 1,926 Tax effect on unrealized gains arising during the period — (404) (404) Reclassification adjustment for realized gains included in investment gains and losses — (366) (366) Tax effect on reclassification adjustment for gains included in income tax expense — 77 77 Other comprehensive income, net of tax 42 1,233 1,275 Reclassification of certain tax effects from accumulated other comprehensive income at January 1, 2018 (569) 3,188 2,619 Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018 — (16,993) (16,993) Balance at June 30, 2018 $ (2,837) $ 1,972 $ (865) Balance at December 31, 2018 $ (3,334) $ (3,326) $ (6,660) Other comprehensive income: Change in net actuarial gain 72 — 72 Tax effect on change in net actuarial gain (15) — (15) Unrealized holding gains arising during the period — 11,233 11,233 Tax effect on unrealized gains arising during the period — (2,359) (2,359) Reclassification adjustment for gains included in net realized gains — (4,201) (4,201) Tax effect on reclassification adjustment for gains included in income tax expense — 883 883 Other comprehensive income, net of tax 57 5,556 5,613 Balance at June 30, 2019 $ (3,277) $ 2,230 $ (1,047)

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	19. Leases We adopted ASU 2016-02, “Leases, (Topic 842)” on January 1, 2019, which resulted in the recognition of operating leases on the balance sheet in 2019 and going forward. See Note 2 for more information on the adoption of ASU 2016-02. Right-of-use assets are included in the other assets line item and lease liabilities are included in the other liabilities line item of the consolidated balance sheet. We also elected certain practical expedients that allow us not to reassess existing leases under the new guidance. We determine if a contract contains a lease at inception and recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments at the commencement date. Since our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Lease agreements have lease and non-lease components, which are accounted for as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. The Company’s operating lease obligations pertain to office leases utilized in the operation of our business. Our leases have remaining terms of 1 to 13 years, some of which include options to extend the leases. The components of lease expense and other lease information as of and during the three and six-month periods ended June 30, 2019 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2019 Operating lease cost $ 816 $ 1,356 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 552 $ 1,103 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — We incurred $16 thousand in short-term lease payments not included in our lease liability during the six months ended June 30, 2019. The components of lease expense and other lease information as of and during the six-month period ended June 30, 2019 are as follows (in thousands): June 30, 2019 Operating lease right-of-use assets $ 17,109 Operating lease liabilities $ 17,619 Weighted-average remaining lease term - operating leases Weighted-average discount rate - operating leases Future minimum lease payments under non-cancellable leases as of June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, December 31, 2019 2018 2019 $ 786 $ 1,889 2020 2,473 2,473 2021 2,172 2,172 2022 2,171 2,171 2023 1,885 1,885 Thereafter 15,266 15,266 Total future minimum lease payments $ 24,753 $ 25,856 Less imputed interest $ (7,134) $ N/A Total operating lease liability $ 17,619 $ N/A

Basis of Presentation (Policy)

Basis of Presentation (Policy)	6 Months Ended
	Jun. 30, 2019
Basis of Presentation [Abstract]
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.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to conform with current year presentation.
Use of Estimates in the Preparation of the Financial Statements	Use of Estimates in the Preparation of the Financial Statements Our preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect our reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the date of our consolidated financial statements, as well as our reported amounts of revenues and expenses during the reporting period. Refer to “Critical Accounting Estimates and Judgments” under Item 7 of our Annual Report on Form 10‑K for the year ended December 31, 2018 for information on accounting policies that we consider critical in preparing our consolidated financial statements. Actual results could differ materially from those estimates.
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 : A revolving credit facility with Frost Bank had a carried value of $30.0 million and a fair value of $30.2 million as of June 30, 2019. This revolving credit facility would be included in Level 3 of the fair value hierarchy if it was reported at fair value. Subordinated Debt Securities : Our trust preferred securities have a carried value of $55.8 million and a fair value of $42.6 million as of June 30, 2019. The fair value of our trust preferred securities is based on discounted cash flows using a current yield to maturity of 8.0%, which is based on similar issues to discount future cash flows. Our trust preferred securities 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 recoverable/payable, other assets and other liabilities, the carrying amounts approximate fair value because of the short maturity of such financial instruments.
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 have determined that we do not have a variable interest in the Trusts. Therefore, the Trusts are not included in our consolidated financial statements. We are also involved in the normal course of business with variable interest entities (“VIE’s”) primarily as a passive investor in mortgage-backed securities and certain collateralized corporate bank loans issued by third party VIE’s. The maximum exposure to loss with respect to these investments is the investment carrying values included in the consolidated balance sheets.
Adoption of New Accounting Pronouncements	Adoption of New Accounting Pronouncements In February 2018, the FASB issued updated guidance that allows a reclassification of the stranded tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act of 2017 (TCJA). Current guidance requires the effect of a change in tax laws or rates on deferred tax balances to be reported in income from continuing operations in the accounting period that includes the period of enactment, even if the related income tax effects were originally charged or credited directly to AOCI. The amount of the reclassification would include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of the enactment of TCJA related to items in AOCI. The updated guidance was effective for reporting periods beginning after December 15, 2018 and is to be applied retrospectively to each period in which the effect of the TCJA related to items remaining in AOCI are recognized or at the beginning of the period of adoption. Early adoption is permitted. The Company adopted the updated guidance effective January 1, 2018 and elected to reclassify the income tax effects of the TCJA from AOCI to retained earnings as of January 1, 2018. This reclassification resulted in a decrease in retained earnings of $2.6 million as of January 1, 2018 and an increase in AOCI by the same amount. In March 2017, the FASB issued ASU 2017‑08, “Premium Amortization on Purchased Callable Securities” (Subtopic 310‑20). ASU 2017‑08 is intended to enhance the accounting for amortization of premiums for purchased callable debt securities. The guidance amends the amortization period for certain purchased callable debt securities held at a premium. Securities that contain explicit, noncontingent call features that are callable at fixed prices and on preset dates should shorten the amortization period for the premium to the earliest call date (and if the call option is not exercised, the effective yield is reset using the payment terms of the debt security). The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. The adoption of ASU 2017‑08 had no impact on our financial results and disclosures. In January 2017, the FASB issued ASU 2017‑01, “Clarifying the Definition of a Business (Topic 715)”. ASU 2017‑01 is intended to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017‑01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The adoption of this standard did not have a material impact on our financial condition or results of operations. In January 2016, the FASB issued ASU 2016‑01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825‑10). ASU 2016‑01 requires equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. ASU 2016‑01 also requires us to assess the ability to realize our deferred tax assets (“DTAs”) related to an available-for-sale debt security in combination with our other DTAs. ASU 2016‑01 was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance resulted in the recognition of $17.0 million of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that increased retained earnings as of January 1, 2018 and decreased AOCI by the same amount. The Company elected to report changes in the fair value of equity investments in investment gains (losses) in the Consolidated Statement of Operations. At December 31, 2017, equity investments were classified as available-for-sale on the Company’s balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments . In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, ASU 2016-02 modifies current guidance for lessors' accounting. ASU 2016-02 is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. During 2018, the FASB issued several amendments and targeted improvements to ease the application of the standard, including the addition of a transition approach that gives the Company the option of applying the standard at either the beginning of the earliest comparative period presented or the beginning of the period of adoption. We adopted the standard on its effective date of January 1, 2019. We also elected certain practical expedients that allow us not to reassess existing leases under the new guidance. As of June 30, 2019, $17.1 million of right-of-use assets and $17.6 million of lease liabilities for operating leases were added to the other assets and other liabilities line items of the balance sheet, respectively, as a result of the adoption of this update. In August 2016, the FASB issued ASU 2016‑15, “Classification of Certain Cash Receipts and Cash Payments” (Topic 230). ASU 2016‑15 will reduce diversity in practice on how eight specific cash receipts and payments are classified on the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The adoption of this new guidance did not have a material impact on our financial results or disclosures. In November 2016, the FASB issued ASU 2016‑18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The purpose of ASU 2016‑18 is to eliminate the diversity in classifying and presenting changes in restricted cash in the statement of cash flows. The new guidance requires restricted cash to be combined with cash and cash equivalents when reconciling the beginning and ending balances of cash on the statement of cash flows, thereby no longer requiring transactions such as transfers between restricted and unrestricted cash to be treated as a cash flow activity. Further, the new guidance requires the nature of the restrictions to be disclosed, as well as a reconciliation between the balance sheet and the statement of cash flows on how restricted and unrestricted cash are segregated. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within that fiscal year, with early adoption permitted. Effective January 1, 2018, we retrospectively adopted this new guidance which did not have a material impact on our financial results or disclosures. In May 2014, the FASB issued ASU 2014‑09, guidance which revises the criteria for revenue recognition. 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. Revenue from insurance contracts is excluded from the scope of this new guidance. While insurance contracts are excluded from this guidance, policy fee income, billing and other fees and fee income related to property business written as a cover-holder through a Lloyds Syndicate is subject to this updated guidance. The adoption of this new guidance did not have a material impact on our financial results or disclosures. Recently Issued Accounting Pronouncements On August 28, 2018, the FASB issued ASU 2018-13, “Fair Value Measurement: Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement” (Topic 820), which amends ASC 820 to add, remove, and modify fair value measurement disclosure requirements. The requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements have all been removed. However, the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period must be disclosed along with the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements (or other quantitative information if it is more reasonable). Finally, for investments measured at net asset value, the requirements have been modified so that the timing of liquidation and the date when restrictions from redemption might lapse are only disclosed if the investee has communicated the timing to the entity or announced the timing publicly. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. As the amendments are only disclosure related, our financial statements will not be materially impacted by this update. In January 2017, the FASB issued ASU 2017‑04, “Simplifying the Test for Goodwill Impairment” (Topic 350). ASU 2017‑04 requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). It eliminates Step 2 of the current two-step goodwill impairment test, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit’s goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are currently evaluating the impact that the adoption of ASU 2017‑04 will have on our financial results and disclosures. In June 2016, the FASB issued ASU 2016‑13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016‑13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and available-for-sale debt securities, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. ASU 2016‑13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. ASU 2016‑13 requires a modified retrospective transition method and early adoption is permitted. We are currently evaluating the impact that the adoption of this standard will have on our financial results and disclosures, but do not anticipate that any potential impact would be material.

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value [Abstract]
Fair Value, Assets Measured on 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 June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 48,422 $ - $ 48,422 Corporate bonds — 225,810 533 226,343 Collateralized corporate bank loans — 132,678 - 132,678 Municipal bonds — 115,849 - 115,849 Mortgage-backed — 9,856 - 9,856 Total debt securities — 532,615 533 533,148 Total equity securities 94,012 — — 94,012 Total other investments 2,585 — — 2,585 Total investments $ 96,597 $ 532,615 $ 533 $ 629,745 As of December 31, 2018 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 48,106 $ — $ 48,106 Corporate bonds — 241,861 291 242,152 Collateralized corporate bank loans — 126,528 — 126,528 Municipal bonds — 115,527 — 115,527 Mortgage-backed — 13,557 — 13,557 Total debt securities — 545,579 291 545,870 Total equity securities 80,896 — — 80,896 Total other investments 1,148 — — 1,148 Total investments $ 82,044 $ 545,579 $ 291 $ 627,914
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation	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 six months ended June 30, 2019 and 2018 (in thousands): Beginning balance as of January 1, 2019 $ 291 Sales — Settlements — Purchases — Issuances — Total realized/unrealized gains included in net income 242 Net gain included in other comprehensive income — Transfers into Level 3 — Transfers out of Level 3 — Ending balance as of June 30, 2019 $ 533 Beginning balance as of January 1, 2018 $ 3,757 Sales (2,925) Settlements — Purchases — Issuances — Total realized/unrealized gains included in net income 104 Net gains included in other comprehensive income — Transfers into Level 3 — Transfers out of Level 3 (621) Ending balance as of June 30, 2018 $ 315

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2019
Investments [Abstract]
Amortized Cost and Estimated Fair Value of Investments in Debt and Equity Securities by Category	The amortized cost and estimated fair value of investments in debt and equity securities by category is as follows (in thousands): Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value As of June 30, 2019 U.S. Treasury securities and obligations of U.S. Government $ 48,369 $ 112 $ (59) $ 48,422 Corporate bonds 223,770 2,813 (240) 226,343 Collateralized corporate bank loans 133,840 59 (1,221) 132,678 Municipal bonds 114,638 1,304 (93) 115,849 Mortgage-backed 9,899 51 (94) 9,856 Total debt securities 530,516 4,339 (1,707) 533,148 Total equity securities 68,709 30,657 (5,354) 94,012 Total other investments 3,763 — (1,178) 2,585 Total investments $ 602,988 $ 34,996 $ (8,239) $ 629,745 As of December 31, 2018 U.S. Treasury securities and obligations of U.S. Government $ 48,609 $ 5 $ (508) $ 48,106 Corporate bonds 243,314 440 (1,602) 242,152 Collateralized corporate bank loans 131,779 19 (5,270) 126,528 Municipal bonds 112,574 3,791 (838) 115,527 Mortgage-backed 13,992 11 (446) 13,557 Total debt securities 550,268 4,266 (8,664) 545,870 Total equity securities 68,709 20,693 (8,506) 80,896 Total other investments 3,763 — (2,615) 1,148 Total investments $ 622,740 $ 24,959 $ (19,785) $ 627,914
Major Categories of Net Investment Gains (Losses) on Investments	Major categories of net investment gains (losses) on investments are summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 U.S. Treasury securities and obligations of U.S. Government $ — $ — $ — $ — Corporate bonds (6) (14) 17 (22) Collateralized corporate bank loans 21 35 38 47 Municipal bonds 46 2 4,147 (19) Mortgage-backed (1) (1) (1) 1 Equity securities — 359 — 359 Gain on investments 60 381 4,201 366 Unrealized gains (losses) on equity securities 5,356 553 13,116 (3,904) Unrealized gains (losses) on other investments 1,401 (401) 1,437 (764) Investment gains (losses), net $ 6,817 $ 533 $ 18,754 $ (4,302)
Summary of Gross Unrealized Gain (Loss) on Investments	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 June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ — $ — $ 23,216 $ (59) $ 23,216 $ (59) Corporate bonds 18,143 (144) 36,011 (96) 54,154 (240) Collateralized corporate bank loans 85,804 (871) 17,564 (350) 103,368 (1,221) Municipal bonds 10,898 (55) 5,735 (38) 16,633 (93) Mortgage-backed 3,518 (6) 3,911 (88) 7,429 (94) Total debt securities 118,363 (1,076) 86,437 (631) 204,800 (1,707) Total equity securities 7,952 (1,588) 4,524 (3,766) 12,476 (5,354) Total other investments 28 (10) 2,557 (1,168) 2,585 (1,178) Total investments $ 126,343 $ (2,674) $ 93,518 $ (5,565) $ 219,861 $ (8,239) As of December 31, 2018 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ 18,902 $ (181) $ 28,201 $ (327) $ 47,103 $ (508) Corporate bonds 117,450 (907) 100,060 (695) 217,510 (1,602) Collateralized corporate bank loans 120,410 (4,938) 4,931 (332) 125,341 (5,270) Municipal bonds 14,281 (96) 25,891 (742) 40,172 (838) Mortgage-backed 6,592 (60) 5,986 (386) 12,578 (446) Total debt securities 277,635 (6,182) 165,069 (2,482) 442,704 (8,664) Total equity securities 30,981 (3,699) 4,475 (4,807) 35,456 (8,506) Total other investments 1,148 (2,615) — — 1,148 (2,615) Total investments $ 309,764 $ (12,496) $ 169,544 $ (7,289) $ 479,308 $ (19,785)
Carrying Value of Other Invested Assets Portfolio	Details regarding the carrying value of the other investments portfolio as of June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, December 31, 2019 2018 Investment Type Equity warrant $ 2,585 $ 1,148 Total other investments $ 2,585 $ 1,148
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturities	Amortized Cost Fair Value (in thousands) Due in one year or less $ 117,306 $ 117,293 Due after one year through five years 276,397 278,718 Due after five years through ten years 96,047 95,636 Due after ten years 30,867 31,645 Mortgage-backed 9,899 9,856 $ 530,516 $ 533,148

Reserves for Unpaid Losses an_2

Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables)	6 Months Ended
	Jun. 30, 2019
Reserves for Unpaid Losses and Loss Adjustment Expenses [Abstract]
Summary of Activity in Reserves for Unpaid Losses and LAE	Activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands): June 30, June 30, 2019 2018 Balance at January 1 $ 527,247 527,100 Less reinsurance recoverable 221,716 154,612 Net balance at January 1 305,531 372,488 Incurred related to: Current year 141,909 122,870 Prior years 1,404 4,453 Total incurred 143,313 127,323 Paid related to: Current year 38,563 28,321 Prior years 107,899 140,339 Total paid 146,462 168,660 Net balance at June 30 302,382 331,151 Plus reinsurance recoverable 249,161 189,401 Balance at June 30 $ 551,543 $ 520,552
Impact of Net Prior Years Loss Development by Segment	June 30, 2019 2018 Specialty Commercial Segment $ 5,203 $ 6,861 Standard Commercial Segment (3,583) (1,560) Personal Segment (216) (848) Corporate — — Total (favorable) net prior year development $ 1,404 $ 4,453

Share-Based Payment Arrangeme_2

Share-Based Payment Arrangements (Tables)	6 Months Ended
	Jun. 30, 2019
Share-Based Payment Arrangements [Abstract]
Summary of the Status of Stock Options	Average Remaining Aggregate Number of Weighted Average Contractual Intrinsic Value Shares Exercise Price Term (Years) ($000) Outstanding at January 1, 2019 244,157 $ 6.63 Granted — — Exercised (230,000) $ 6.61 Forfeited or expired — $ — Outstanding at June 30, 2019 14,157 $ 6.99 2.5 $ 102 Exercisable at June 30, 2019 14,157 $ 6.99 2.5 $ 102
Schedule of Options, Grants in Period and 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): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Intrinsic value of options exercised $ — $ 122 $ 845 $ 122 Cost of share-based payments (non-cash) $ — $ — $ — $ — Income tax benefit of share-based payments recognized in income $ — $ — $ — $ —
Summary of the Status of Restricted Stock Units	Number of Restricted Stock Units 2019 2018 Nonvested at January 1 338,897 385,779 Granted — — Vested — (8,198) Forfeited (83,210) (182,743) Nonvested at June 30 255,687 194,838

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Information [Abstract]
Schedule of Business Segment Information	The following is business segment information for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenues Specialty Commercial Segment $ 73,592 $ 72,081 $ 141,559 $ 145,205 Standard Commercial Segment 17,310 19,247 35,683 38,122 Personal Segment 23,116 7,916 42,599 15,536 Corporate 6,885 (1,119) 19,183 (7,397) Consolidated $ 120,903 $ 98,125 $ 239,024 $ 191,466 Pre-tax income (loss) Specialty Commercial Segment $ 10,427 $ 8,770 $ 18,395 $ 18,528 Standard Commercial Segment 2,057 2,656 3,564 3,975 Personal Segment 2,441 (1) 4,014 (23) Corporate 1,559 (5,053) 9,429 (15,299) Consolidated $ 16,484 $ 6,372 $ 35,402 $ 7,181
Schedule of Additional Business Segment Information	The following is additional business segment information as of the dates indicated (in thousands): June 30, December 31, Assets: 2019 2018 Specialty Commercial Segment $ 1,005,810 $ 858,262 Standard Commercial Segment 184,101 158,881 Personal Segment 170,348 226,431 Corporate 45,509 21,320 Consolidated $ 1,405,768 $ 1,264,894

Reinsurance (Tables)

Reinsurance (Tables)	6 Months Ended
	Jun. 30, 2019
Reinsurance [Abstract]
Schedule of Reinsurance Ceded and Recoveries	The following table shows earned premiums ceded and reinsurance loss recoveries by period (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Ceded earned premiums $ 76,309 $ 68,635 $ 146,455 $ 130,264 Reinsurance recoveries $ 58,975 $ 43,989 $ 107,564 $ 93,427

Deferred Policy Acquisition C_2

Deferred Policy Acquisition Costs (Tables)	6 Months Ended
	Jun. 30, 2019
Deferred Policy Acquisition Costs [Abstract]
Deferred Amortized Policy Acquisition Costs	The following table shows total deferred and amortized policy acquisition cost activity by period (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Deferred $ (35,871) $ 6,306 $ (47,547) $ 16,671 Amortized 34,788 (8,242) 41,530 (18,615) Net $ (1,083) $ (1,936) $ (6,017) $ (1,944)

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings per Share [Abstract]
Schedule of Weighted Average Number of Shares Outstanding	The following table sets forth basic and diluted weighted average shares outstanding for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Weighted average shares - basic 18,123 18,067 18,090 18,116 Effect of dilutive securities 128 107 160 114 Weighted average shares - assuming dilution 18,251 18,174 18,250 18,230

Net Periodic Pension Cost (Tabl

Net Periodic Pension Cost (Tables)	6 Months Ended
	Jun. 30, 2019
Net Periodic Pension Cost [Abstract]
Schedule of Net Benefit Costs	The following table details the net periodic pension cost incurred by period (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest cost $ 114 $ 106 $ 227 $ 212 Amortization of net loss 36 26 72 53 Expected return on plan assets (150) (174) (299) (347) Net periodic pension cost $ — $ (42) $ — $ (82) Contributed amount $ — $ — $ — $ —

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2019
Supplemental Cash Flow Information [Abstract]
Reconciliation of Cash, Cash Equivalents and Restricted Cash in Balance Sheet to Cash Flows	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet to the total of the same such amounts shown in the statement of cash flows (in thousands): As of June 30, 2019 2018 Cash and cash equivalents $ 67,670 $ 79,583 Restricted cash 3,486 3,078 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 71,156 $ 82,661
Supplemental Cash Flow Information	The following table provides supplemental cash flow information for the six months ended June 30, 2019 and 2018: Six Months Ended June 30, 2019 2018 Interest paid $ 2,527 $ 2,145 Income taxes paid (recovered) $ 2,848 $ (5,287) Supplemental schedule of non-cash investing activities: Receivable for securities related to investment disposals $ 2,581 $ 3,780 Payable for securities related to investment purchases $ 3,167 $ 6,706

Changes in Accumulated Other _2

Changes in Accumulated Other Comprehensive Income Balances (Tables)	6 Months Ended
	Jun. 30, 2019
Changes in Accumulated Other Comprehensive Income Balances [Abstract]
Schedule of Changes in Accumulated Other Comprehensive Income	The changes in accumulated other comprehensive income balances as of June 30, 2019 and 2018 were as follows (in thousands): Accumulated Other Pension Unrealized Comprehensive Liability Gains (Loss) Income (Loss) Balance at December 31, 2017 $ (2,310) $ 14,544 $ 12,234 Other comprehensive income: Change in net actuarial gain 53 — 53 Tax effect on change in net actuarial gain (11) — (11) Unrealized holding gains arising during the period — 1,926 1,926 Tax effect on unrealized gains arising during the period — (404) (404) Reclassification adjustment for realized gains included in investment gains and losses — (366) (366) Tax effect on reclassification adjustment for gains included in income tax expense — 77 77 Other comprehensive income, net of tax 42 1,233 1,275 Reclassification of certain tax effects from accumulated other comprehensive income at January 1, 2018 (569) 3,188 2,619 Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018 — (16,993) (16,993) Balance at June 30, 2018 $ (2,837) $ 1,972 $ (865) Balance at December 31, 2018 $ (3,334) $ (3,326) $ (6,660) Other comprehensive income: Change in net actuarial gain 72 — 72 Tax effect on change in net actuarial gain (15) — (15) Unrealized holding gains arising during the period — 11,233 11,233 Tax effect on unrealized gains arising during the period — (2,359) (2,359) Reclassification adjustment for gains included in net realized gains — (4,201) (4,201) Tax effect on reclassification adjustment for gains included in income tax expense — 883 883 Other comprehensive income, net of tax 57 5,556 5,613 Balance at June 30, 2019 $ (3,277) $ 2,230 $ (1,047)

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Summary of components of lease expense and other lease information	The components of lease expense and other lease information as of and during the three and six-month periods ended June 30, 2019 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2019 Operating lease cost $ 816 $ 1,356 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 552 $ 1,103 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ —
Summary of balance sheet components	The components of lease expense and other lease information as of and during the six-month period ended June 30, 2019 are as follows (in thousands): June 30, 2019 Operating lease right-of-use assets $ 17,109 Operating lease liabilities $ 17,619 Weighted-average remaining lease term - operating leases Weighted-average discount rate - operating leases
Summary of future minimum lease payments under non-cancellable leases as of March 31, 2019	June 30, December 31, 2019 2018 2019 $ 786 $ 1,889 2020 2,473 2,473 2021 2,172 2,172 2022 2,171 2,171 2023 1,885 1,885 Thereafter 15,266 15,266 Total future minimum lease payments $ 24,753 $ 25,856 Less imputed interest $ (7,134) $ N/A Total operating lease liability $ 17,619 $ N/A

General (Narrative) (Details)

General (Narrative) (Details)	6 Months Ended
	Jun. 30, 2019segmentsubsidiary
General [Abstract]
Number of subsidiaries | subsidiary	6
Number of reportable segments | segment	3

Basis of Presentation (Narrativ

Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Aug. 23, 2007	Jun. 21, 2005	Jun. 30, 2019	Dec. 31, 2017
Variable Interest Entity [Line Items]
Equity Securities, FV-NI, Unrealized Gain	$ 17,000
Reclassification out of AOCI as a result of Tax Act	$ (2,600)
Right-of-use assets				$ 17,109
Lease liabilities				17,619
Accumulated Other Comprehensive Income (Loss) [Member]
Variable Interest Entity [Line Items]
Reclassification out of AOCI as a result of Tax Act					$ 2,619
Retained Earnings [Member]
Variable Interest Entity [Line Items]
Reclassification out of AOCI as a result of Tax Act					(2,619)
Accounting Standards Update 2016-01 [Member] | Accumulated Other Comprehensive Income (Loss) [Member]
Variable Interest Entity [Line Items]
Cumulative effect of new accounting principle in period of adoption					(16,993)
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member]
Variable Interest Entity [Line Items]
Cumulative effect of new accounting principle in period of adoption					$ 16,993
Revolving Credit Facility B [Member]
Variable Interest Entity [Line Items]
Credit facility, amount outstanding				30,000
Credit facility, fair value				30,200
Hallmark Statutory Trust I [Member]
Variable Interest Entity [Line Items]
Proceeds from issuance of trust preferred securities			$ 30,000
Hallmark Statutory Trust II [Member]
Variable Interest Entity [Line Items]
Proceeds from issuance of trust preferred securities		$ 25,000
Subordinated Debt [Member]
Variable Interest Entity [Line Items]
Trust preferred securities, carrying value				55,800
Trust preferred securities, fair value				$ 42,600
Current yield to maturity percentage				8.00%
Subordinated Debt [Member] | Hallmark Statutory Trust I [Member]
Variable Interest Entity [Line Items]
Payments to acquire trust preferred investments			$ 30,900
Subordinated Debt [Member] | Hallmark Statutory Trust II [Member]
Variable Interest Entity [Line Items]
Payments to acquire trust preferred investments		$ 25,800

Fair Value (Narrative) (Details

Fair Value (Narrative) (Details) $ in Thousands	Jun. 30, 2019USD ($)
Fair Value [Abstract]
Transfer of assets from level 1 to level 2	$ 0
Transfer of assets from level 2 to level 1	0
Transfer of liabilities from level 1 to level 2	0
Transfer of liabilities from level 2 to level 1	$ 0

Fair Value (Fair Value of Asset

Fair Value (Fair Value of Assets Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	$ 533,148	$ 545,870
Total equity securities	94,012	80,896
Total investments	629,745	627,914
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	94,012	80,896
Other Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	2,585	1,148
Mortgage Backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	9,856
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	533,148	545,870
Total investments	629,745	627,914
Fair Value, Recurring [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	94,012	80,896
Fair Value, Recurring [Member] | Other Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	2,585	1,148
Fair Value, Recurring [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]
Total debt securities	48,422	48,106
Fair Value, Recurring [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	226,343	242,152
Fair Value, Recurring [Member] | Collateralized Corporate Bank Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	132,678	126,528
Fair Value, Recurring [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	115,849	115,527
Fair Value, Recurring [Member] | Mortgage Backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	9,856	13,557
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investments	96,597	82,044
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	94,012	80,896
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Fair Value, Recurring [Member] | Other Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	2,585	1,148
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	532,615	545,579
Total investments	532,615	545,579
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [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]
Total debt securities	48,422	48,106
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	225,810	241,861
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Collateralized Corporate Bank Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	132,678	126,528
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	115,849	115,527
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Mortgage Backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	9,856	13,557
Unobservable Inputs, Level 3 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	533	291
Total investments	533	291
Unobservable Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities	$ 533	$ 291

Fair Value (Fair Value, Assets

Fair Value (Fair Value, Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 291	$ 3,757
Sales		2,925
Settlements
Purchases
Issuances
Total realized/unrealized gains included in net income	242	104
Net gains included in other comprehensive income
Transfers into Level 3
Transfers out of Level 3		(621)
Ending balance	$ 533	$ 315

Investments (Narrative) (Detail

Investments (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)security	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)security	Jun. 30, 2018USD ($)	Dec. 31, 2018security
Schedule of Available-for-sale Securities [Line Items]
Gross gains on investments	$ 200	$ 500	$ 4,400	$ 600
Gross losses on investments	100	100	200	200
Proceeds from sale of investment securities	$ 100	$ 14,200	7,000	$ 14,200
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract]
Other-than-temporary impairment			$ 0
Debt Securities [Member]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract]
Number of debt securities with unrealized loss | security	173		173		328
Number of debt securities with unrealized loss, less than 12 months | security	117		117		221
Number of debt securities with unrealized loss, greater than 12 months | security	56		56		107

Investments (Amortized Cost and

Investments (Amortized Cost and Estimated Fair Value of Investments in Debt and Equity Securities by Category) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Debt securities, Amortized Cost	$ 530,516	$ 550,268
Total debt securities	533,148	545,870
Equity Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Equity securities, Amortized Cost	68,709	68,709
Total equity securities	94,012	80,896
Investments, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Investments, Amortized cost	602,988	622,740
Investments, Gross Unrealized Gains	34,996	24,959
Investments, Gross Unrealized Losses	(8,239)	(19,785)
Investments, Fair value	629,745	627,914
Mortgage Backed [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Debt securities, Amortized Cost	9,899
Total debt securities	9,856
Debt Securities [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Debt securities, Amortized Cost	530,516	550,268
Debt securities, Gross Unrealized Gain	4,339	4,266
Debt securities, Gross Unrealized Loss	(1,707)	(8,664)
Total debt securities	533,148	545,870
Debt Securities [Member] | U.S. Treasury Securities and Obligations of U.S. Government [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Debt securities, Amortized Cost	48,369	48,609
Debt securities, Gross Unrealized Gain	112	5
Debt securities, Gross Unrealized Loss	(59)	(508)
Total debt securities	48,422	48,106
Debt Securities [Member] | Corporate Bonds [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Debt securities, Amortized Cost	223,770	243,314
Debt securities, Gross Unrealized Gain	2,813	440
Debt securities, Gross Unrealized Loss	(240)	(1,602)
Total debt securities	226,343	242,152
Debt Securities [Member] | Collateralized Corporate Bank Loans [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Debt securities, Amortized Cost	133,840	131,779
Debt securities, Gross Unrealized Gain	59	19
Debt securities, Gross Unrealized Loss	(1,221)	(5,270)
Total debt securities	132,678	126,528
Debt Securities [Member] | Municipal Bonds [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Debt securities, Amortized Cost	114,638	112,574
Debt securities, Gross Unrealized Gain	1,304	3,791
Debt securities, Gross Unrealized Loss	(93)	(838)
Total debt securities	115,849	115,527
Debt Securities [Member] | Mortgage Backed [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Debt securities, Amortized Cost	9,899	13,992
Debt securities, Gross Unrealized Gain	51	11
Debt securities, Gross Unrealized Loss	(94)	(446)
Total debt securities	9,856	13,557
Equity Securities [Member]
Equity Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Equity securities, Amortized Cost	68,709	68,709
Equity Securities, Gross Unrealized Gains	30,657	20,693
Equity Securities, Gross Unrealized Losses	(5,354)	(8,506)
Total equity securities	94,012	80,896
Other Investments [Member]
Equity Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Equity securities, Amortized Cost	3,763	3,763
Equity Securities, Gross Unrealized Losses	(1,178)	(2,615)
Total equity securities	$ 2,585	$ 1,148

Investments (Major Categories o

Investments (Major Categories of Net Investment Gains (Losses) on Investments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Gain (Loss) on Securities [Line Items]
Investment gains (losses), net	$ 6,817	$ 533	$ 18,754	$ (4,302)
Debt Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on investments	60	381	4,201	366
Equity Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on equity securities		359		359
Unrealized gains (losses) on equity securities	5,356	553	13,116	(3,904)
Other Investments [Member]
Gain (Loss) on Securities [Line Items]
Unrealized gains (losses) on equity securities	1,401	(401)	1,437	(764)
U.S. Treasury Securities and Obligations of U.S. Government [Member] | Debt Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on investments
Corporate Bonds [Member] | Debt Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on investments	(6)	(14)	17	(22)
Collateralized Corporate Bank Loans [Member] | Debt Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on investments	21	35	38	47
Municipal Bonds [Member] | Debt Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on investments	46	2	4,147	(19)
Mortgage Backed [Member] | Debt Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on investments	$ (1)	$ (1)	$ (1)	$ 1

Investments (Summary of Gross U

Investments (Summary of Gross Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Investments, Unrealized Loss Position, Fair Value
Investments, Fair Value 12 months or less	$ 126,343	$ 309,764
Investments, Fair Value Longer than 12 months	93,518	169,544
Investments, Total Fair Value	219,861	479,308
Investments, Unrealized Losses
Investments, Unrealized Losses 12 months or less	(2,674)	(12,496)
Investments, Unrealized Losses Longer than 12 months	(5,565)	(7,289)
Investments, Total Unrealized Losses	(8,239)	(19,785)
Debt Securities [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less	118,363	277,635
Debt securities, Fair Value Longer than 12 months	86,437	165,069
Debt securities, Total Fair Value	204,800	442,704
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(1,076)	(6,182)
Debt securities, Unrealized Losses Longer than 12 months	(631)	(2,482)
Debt securities, Total Unrealized Losses	1,707	8,664
Debt Securities [Member] | U.S. Treasury Securities and Obligations of U.S. Government [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less		18,902
Debt securities, Fair Value Longer than 12 months	23,216	28,201
Debt securities, Total Fair Value	23,216	47,103
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less		(181)
Debt securities, Unrealized Losses Longer than 12 months	(59)	(327)
Debt securities, Total Unrealized Losses	59	508
Debt Securities [Member] | Corporate Bonds [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less	18,143	117,450
Debt securities, Fair Value Longer than 12 months	36,011	100,060
Debt securities, Total Fair Value	54,154	217,510
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(144)	(907)
Debt securities, Unrealized Losses Longer than 12 months	(96)	(695)
Debt securities, Total Unrealized Losses	240	1,602
Debt Securities [Member] | Collateralized Corporate Bank Loans [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less	85,804	120,410
Debt securities, Fair Value Longer than 12 months	17,564	4,931
Debt securities, Total Fair Value	103,368	125,341
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(871)	(4,938)
Debt securities, Unrealized Losses Longer than 12 months	(350)	(332)
Debt securities, Total Unrealized Losses	1,221	5,270
Debt Securities [Member] | Municipal Bonds [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less	10,898	14,281
Debt securities, Fair Value Longer than 12 months	5,735	25,891
Debt securities, Total Fair Value	16,633	40,172
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(55)	(96)
Debt securities, Unrealized Losses Longer than 12 months	(38)	(742)
Debt securities, Total Unrealized Losses	93	838
Debt Securities [Member] | Mortgage Backed [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less	3,518	6,592
Debt securities, Fair Value Longer than 12 months	3,911	5,986
Debt securities, Total Fair Value	7,429	12,578
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(6)	(60)
Debt securities, Unrealized Losses Longer than 12 months	(88)	(386)
Debt securities, Total Unrealized Losses	94	446
Equity Securities [Member]
Equity Securities, Unrealized Loss Position, Fair Value
Equity securities, Fair Value 12 months or less	7,952	30,981
Equity securities, Fair Value Longer than 12 months	4,524	4,475
Equity securities, Total Fair Value	12,476	35,456
Equity Securities, Unrealized Loss
Equity securities, Unrealized Losses 12 months or less	(1,588)	(3,699)
Equity securities, Unrealized Losses Longer than 12 months	(3,766)	(4,807)
Equity securities, Total Unrealized Losses	(5,354)	(8,506)
Other Investments [Member]
Equity Securities, Unrealized Loss Position, Fair Value
Equity securities, Fair Value 12 months or less	28	1,148
Equity securities, Fair Value Longer than 12 months	2,557
Equity securities, Total Fair Value	2,585	1,148
Equity Securities, Unrealized Loss
Equity securities, Unrealized Losses 12 months or less	(10)
Equity securities, Unrealized Losses Longer than 12 months	(1,168)	(2,615)
Equity securities, Total Unrealized Losses	$ (1,178)	$ (2,615)

Investments (Carrying Value of

Investments (Carrying Value of Other Invested Assets Portfolio) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Investments [Abstract]
Equity warrant	$ 2,585	$ 1,148
Total other investments	$ 2,585	$ 1,148

Investments (Schedule of Amorti

Investments (Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Due in one year or less	$ 117,306
Amortized Cost, Due after one year through five years	276,397
Amortized Cost, Due after five years through ten years	96,047
Amortized Cost, Amortized Cost Due after ten years	30,867
Debt Maturities, Amortized Cost	530,516	$ 550,268
Fair Value, Due in one year or less	117,293
Fair Value, Due after one year through five years	278,718
Fair Value, Due after five years through ten years	95,636
Fair Value, Due after ten years	31,645
Total debt securities	533,148	$ 545,870
Mortgage Backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Debt Maturities, Amortized Cost	9,899
Total debt securities	$ 9,856

Pledged Investments (Narrative)

Pledged Investments (Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Pledged Investments [Abstract]
Securities available-for-sale pledged, carrying value	$ 29.7	$ 29.5

Reserves for Unpaid Losses an_3

Reserves for Unpaid Losses and Loss Adjustment Expenses (Activity in the Reserves for Unpaid Losses and Loss Adjustment Expense) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Reserves for Unpaid Losses and Loss Adjustment Expenses [Abstract]
Balance at January 1	$ 527,247	$ 527,100
Less reinsurance recoverable	221,716	154,612
Net balance at January 1	305,531	372,488
Incurred related to:
Current year	141,909	122,870
Prior years	1,404	4,453
Total incurred	143,313	127,323
Paid related to:
Current year	38,563	28,321
Prior years	107,899	140,339
Total paid	146,462	168,660
Net balance at June 30	302,382	331,151
Plus reinsurance recoverable	249,161	189,401
Balance at June 30	$ 551,543	$ 520,552

Reserves for Unpaid Losses an_4

Reserves for Unpaid Losses and Loss Adjustment Expenses (Causes for Prior Accident Year Reserve Development by Segment) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Total (favorable) net prior year development	$ 1,404	$ 4,453
Specialty Commercial Segment [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Total (favorable) net prior year development	5,203	6,861
Standard Commercial Segment [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Total (favorable) net prior year development	(3,583)	(1,560)
Personal Segment [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Total (favorable) net prior year development	$ (216)	$ (848)

Share-Based Payment Arrangeme_3

Share-Based Payment Arrangements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, Granted			0	0
Long Term Incentive Plan 2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of incentive stock options outstanding			0
Share-based compensation arrangement by share-based payment award, non-qualified stock options to purchase number of shares			14,157
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		2,000,000
Share-based compensation arrangement by share-based payment award, restricted stock options to purchase number of shares			383,530
Stock options, Granted			0
Long Term Incentive Plan 2005 and 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested share-based compensation arrangements	$ 0		$ 0
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [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%		10.00%
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [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%		20.00%
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [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%		30.00%
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [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%		40.00%
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [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] | Long Term Incentive Plan 2005 [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
Incentive Stock Options 2010 [Member] | Long Term Incentive Plan 2005 [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
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 rights, percentage			100.00%
Stock-based compensation incentive stock options grant under incentive plan termination period			10 years
Share-based payment, award vesting period			6 months
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]
Stock-based compensation incentive stock options grant under incentive plan termination period			10 years
Number of options vested or expected to vest	200,000		200,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested share-based compensation arrangements	$ 1,400		$ 1,400
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected To Recognize During Remainder Of Year			300
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognize During Remainder of Year Two			500
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognize During Year Three			100
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognized			$ 900
Other than options, forfeited			83,210	182,743
Vested				8,198
Allocated share-based compensation expense	140	$ (43)	$ 197	$ 1
Income tax benefit of share-based payments recognized in income	$ 29	$ 9	$ 41
Restricted Stock Units (RSUs) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of restricted stock units granted as result of meeting growth rates	50.00%		50.00%
Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of restricted stock units granted as result of meeting growth rates	150.00%		150.00%
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other than options, grant date fair value					$ 10.87	$ 10.20	$ 11.41	$ 11.10

Share-Based Payment Arrangeme_4

Share-Based Payment Arrangements (Summary of the Status of Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Share-Based Payment Arrangements [Abstract]
Stock Options, Outstanding at January 1, 2019	244,157
Stock options, Granted	0	0
Stock Options, Exercised	(230,000)
Stock Options, Forfeited or Expired
Stock Options, Outstanding at June 30,2019	14,157
Stock Options, Exercisable at June 30, 2019	14,157
Weighted Average Exercise Price, Outstanding at January 1, 2019	$ 6.63
Weighted Average Exercise Price, Exercised	6.61
Weighted Average Exercise Price, Forfeited or Expired
Weighted Average Exercise Price, Outstanding at June 30, 2019	6.99
Weighted Average Exercise Price, Exercisable at June 30, 2019	$ 6.99
Average Remaining Contractual Term, Outstanding at June 30, 2019	2 years 6 months
Average Remaining Contractual Term, Exercisable at June 30, 2019	2 years 6 months
Aggregate Intrinsic Value, Outstanding at June 30, 2019	$ 102
Aggregate Intrinsic Value, Exercisable at June 30, 2019	$ 102

Share-Based Payment Arrangeme_5

Share-Based Payment Arrangements (Schedule of Options, Grants in Period and Grant Date Intrinsic Value) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost of share-based payments (non-cash)			$ 197	$ 1
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised		$ 122	845	122
Cost of share-based payments (non-cash)
Income tax benefit of share-based payments recognized in income

Share-Based Payment Arrangeme_6

Share-Based Payment Arrangements (Summary of the Status of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested at January 1	338,897	385,779
Vested		(8,198)
Forfeited	(83,210)	(182,743)
Nonvested at June 30	255,687	194,838

Segment Information (Schedule o

Segment Information (Schedule of Business Segment Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues [Abstract]
Revenues	$ 120,903	$ 98,125	$ 239,024	$ 191,466
Pre-Tax Income (Loss) [Abstract]
Pre-tax income (loss)	16,484	6,372	35,402	7,181
Specialty Commercial Segment [Member]
Revenues [Abstract]
Revenues	73,592	72,081	141,559	145,205
Pre-Tax Income (Loss) [Abstract]
Pre-tax income (loss)	10,427	8,770	18,395	18,528
Standard Commercial Segment [Member]
Revenues [Abstract]
Revenues	17,310	19,247	35,683	38,122
Pre-Tax Income (Loss) [Abstract]
Pre-tax income (loss)	2,057	2,656	3,564	3,975
Personal Segment [Member]
Revenues [Abstract]
Revenues	23,116	7,916	42,599	15,536
Pre-Tax Income (Loss) [Abstract]
Pre-tax income (loss)	2,441	(1)	4,014	(23)
Corporate [Member]
Revenues [Abstract]
Revenues	6,885	(1,119)	19,183	(7,397)
Pre-Tax Income (Loss) [Abstract]
Pre-tax income (loss)	$ 1,559	$ (5,053)	$ 9,429	$ (15,299)

Segment Information (Schedule_2

Segment Information (Schedule of Additional Business Segment Information) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Assets	$ 1,405,768	$ 1,264,894
Specialty Commercial Segment [Member]
Segment Reporting Information [Line Items]
Assets	1,005,810	858,262
Standard Commercial Segment [Member]
Segment Reporting Information [Line Items]
Assets	184,101	158,881
Personal Segment [Member]
Segment Reporting Information [Line Items]
Assets	170,348	226,431
Corporate [Member]
Segment Reporting Information [Line Items]
Assets	$ 45,509	$ 21,320

Reinsurance (Schedule of Reinsu

Reinsurance (Schedule of Reinsurance Ceded and Recoveries) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Reinsurance [Abstract]
Ceded earned premiums	$ 76,309	$ 68,635	$ 146,455	$ 130,264
Reinsurance recoveries	$ 58,975	$ 43,989	$ 107,564	$ 93,427

Revolving Credit Facility (Narr

Revolving Credit Facility (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019USD ($)
Facility A Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 15
Line of credit facility, unused capacity, commitment fee percentage	0.25%
Line of credit facility, amount outstanding	$ 0
Facility A Revolving Credit Sub-Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 5
Line of credit facility, unused capacity, commitment fee percentage	1.00%
Facility B Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 30
Line of credit facility, unused capacity, commitment fee percentage	0.25%
Line of credit facility, amount outstanding	$ 30
London Interbank Offered Rate (LIBOR) [Member] | Facility A Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, interest rate during period	2.50%
London Interbank Offered Rate (LIBOR) [Member] | Facility B Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, unused capacity, commitment fee percentage	3.00%

Subordinated Debt Securities (N

Subordinated Debt Securities (Narrative) (Details) - USD ($) $ in Millions	Aug. 23, 2007	Jun. 21, 2005	Jun. 30, 2019
Hallmark Statutory Trust I [Member] | Subordinated Debt Due In 2035 [Member]
Subordinated Borrowing [Line Items]
Long-term debt, gross		$ 30.9	$ 30.9
Proceeds from issuance of trust preferred securities		30
Proceeds from issuance of common stock		$ 0.9
Subordinated borrowing, interest rate		7.725%	5.66%
Debt instrument, interest rate fixed to floating date		Jun. 15, 2015
Debt instrument, maturity 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 II [Member] | Subordinated Debt Due In 2037 [Member]
Subordinated Borrowing [Line Items]
Long-term debt, gross	$ 25.8		$ 25.8
Proceeds from issuance of trust preferred securities	25
Proceeds from issuance of common stock	$ 0.8
Subordinated borrowing, interest rate	8.28%		5.31%
Debt instrument, interest rate fixed to floating date	Sep. 15, 2017
Debt instrument, maturity 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 Debt Due In 2035 [Member]
Subordinated Borrowing [Line Items]
Debt instrument, basis spread on variable rate			3.25%
London Interbank Offered Rate (LIBOR) [Member] | Hallmark Statutory Trust II [Member] | Subordinated Debt Due In 2037 [Member]
Subordinated Borrowing [Line Items]
Subordinated borrowing, interest rate			2.90%

Deferred Policy Acquisition C_3

Deferred Policy Acquisition Costs (Deferred Amortized Policy Acquisition Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Document and Entity Information [Abstract]
Deferred, additions		$ 6,306		$ 16,671
Deferred, disposition	$ (35,871)		$ (47,547)
Amortized	34,788	(8,242)	41,530	(18,615)
Net	$ (1,083)	$ (1,936)	$ (6,017)	$ (1,944)

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	0	62,500	0	62,500

Earnings Per Share (Schedule of

Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings per Share [Abstract]
Weighted average shares - basic	18,123	18,067	18,090	18,116
Effect of dilutive securities	128	107	160	114
Weighted average shares - assuming dilution	18,251	18,174	18,250	18,230

Net Periodic Pension Cost (Sche

Net Periodic Pension Cost (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net Periodic Pension Cost [Abstract]
Interest cost	$ 114	$ 106	$ 227	$ 212
Amortization of net loss	36	26	72	53
Expected return on plan assets	(150)	(174)	(299)	(347)
Net periodic pension cost		(42)		(82)
Contributed amount

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income Taxes [Abstract]
Effective income tax rate, continuing operations	20.80%	20.10%

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Reconciliation of Cash, Cash Equivalents and Restricted Cash to Statement of Cash Flows) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	$ 67,670	$ 35,594	$ 79,583
Restricted cash	3,486	4,877	3,078
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 71,156	$ 40,471	$ 82,661	$ 67,633

Supplemental Cash Flow Inform_4

Supplemental Cash Flow Information (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Supplemental Cash Flow Information [Abstract]
Interest paid	$ 2,527	$ 2,145
Income taxes paid (recovered)	2,848	(5,287)
Receivable for securities related to investment disposals	2,581	3,780
Payable for securities related to investment purchases	$ 3,167	$ 6,706

Changes in Accumulated Other _3

Changes in Accumulated Other Comprehensive Income Balances (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			$ (6,660)
Other comprehensive income:
Change in net actuarial gain	$ 37	$ 26	72	$ 53
Tax effect on change in net actuarial gain	(8)	(5)	(15)	(11)
Unrealized holding gains (losses) arising during the period	3,460	2,321	11,233	1,926
Tax effect on unrealized gains arising during the period	(727)	(487)	(2,359)	(404)
Reclassification adjustment for realized (gain) losses included in investment gains and losses	(60)	(381)	(4,201)	(366)
Tax effect on reclassification adjustment for gains (losses) included in income tax expense	13	80	883	77
Other comprehensive income, net of tax	2,715	1,554	5,613	1,275
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018					$ (2,600)
Ending Balance	(1,047)		(1,047)
Pension Liability [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(3,334)	(2,310)
Other comprehensive income:
Change in net actuarial gain			72	53
Tax effect on change in net actuarial gain			(15)	(11)
Other comprehensive income, net of tax			57	42
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018						$ (569)
Ending Balance	(3,277)	(2,837)	(3,277)	(2,837)
Unrealized Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(3,326)	14,544
Other comprehensive income:
Unrealized holding gains (losses) arising during the period			11,233	1,926
Tax effect on unrealized gains arising during the period			(2,359)	(404)
Reclassification adjustment for realized (gain) losses included in investment gains and losses			(4,201)	(366)
Tax effect on reclassification adjustment for gains (losses) included in income tax expense			883	77
Other comprehensive income, net of tax			5,556	1,233
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018						3,188
Ending Balance	2,230	1,972	2,230	1,972
Unrealized Gain (Loss) [Member] | Accounting Standards Update 2016-01 [Member]
Other comprehensive income:
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1,2018						(16,993)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(6,660)	12,234
Other comprehensive income:
Change in net actuarial gain			72	53
Tax effect on change in net actuarial gain			(15)	(11)
Unrealized holding gains (losses) arising during the period			11,233	1,926
Tax effect on unrealized gains arising during the period			(2,359)	(404)
Reclassification adjustment for realized (gain) losses included in investment gains and losses			(4,201)	(366)
Tax effect on reclassification adjustment for gains (losses) included in income tax expense			883	77
Other comprehensive income, net of tax			5,613	1,275
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018						2,619
Ending Balance	$ (1,047)	$ (865)	$ (1,047)	$ (865)
Accumulated Other Comprehensive Income (Loss) [Member] | Accounting Standards Update 2016-01 [Member]
Other comprehensive income:
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1,2018						$ (16,993)

Leases (Narrative) (Details)

Leases (Narrative) (Details)	6 Months Ended
	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Lease, Practical Expedients	true
Options to extend	true
Minimum [Member]
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Remaining lease term	13 years

Leases (Components of Lease Exp

Leases (Components of Lease Expense and Other Lease Information) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating Lease Cost	$ 816	$ 1,356
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases	552	1,103
Right-of-use assets obtained in exchange for new operating lease liabilities
Short-term lease payments		$ 16

Leases (Component of Lease and

Leases (Component of Lease and Other Information) (Details) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
Operating lease right-of-use assets	$ 17,109
Operating lease liabilities	$ 17,619
Weighted-average remaining lease term - operating leases	10 years 8 months 12 days
Weighted-average discount rate - operating leases	5.88%

Leases (Maturities) (Details)

Leases (Maturities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Future minimum lease payments under non-cancellable leases as of June30, 2019
2019	$ 786
2020	2,473
2021	2,172
2022	2,171
2023	1,885
Thereafter	15,266
Total future minimum lease payments	24,753
Less imputed interest	(7,134)
Operating lease liabilities	$ 17,619
Future minimum lease payments under non-cancellable leases as of December 31, 2018
2019		$ 1,889
2020		2,473
2021		2,172
2022		2,171
2023		1,885
Thereafter		15,266
Total future minimum lease payments		$ 25,856