Hallmark Financial Services (HALL) 10-Q 13 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 13, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2021
Entity File Number	001-11252
Entity Registrant Name	Hallmark Financial Services, Inc.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	87-0447375
Entity Address, Address Line One	5420 Lyndon B. Johnson Freeway, Suite 1100
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75240
City Area Code	817
Local Phone Number	348-1600
Title of 12(b) Security	Common Stock
Trading Symbol	HALL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,171,032
Entity Central Index Key	0000819913
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Investments:
Debt securities, available-for-sale, at fair value (amortized cost; $344,232 in 2021 and $502,167 in 2020)	$ 348,525	$ 507,279
Equity securities (cost; $46,847 in 2021 and $26,988 in 2020)	53,621	29,388
Total investments	402,146	536,667
Cash and cash equivalents	281,849	102,580
Restricted cash	5,434	5,728
Ceded unearned premiums	134,206	138,926
Premiums receivable	109,799	120,332
Accounts receivable	4,625	5,967
Receivable for securities	1,382	913
Reinsurance recoverable	494,815	490,231
Deferred policy acquisition costs	16,386	17,840
Intangible assets, net	1,196	1,322
Federal income tax recoverable	23,855	25,642
Deferred federal income taxes, net	8,319	8,724
Prepaid expenses	6,679	2,648
Other assets	26,852	28,013
Total assets	1,517,543	1,485,533
Liabilities:
Senior unsecured notes due 2029 (less unamortized debt issuance cost of $820 in 2021 and $844 in 2020)	49,180	49,156
Subordinated debt securities (less unamortized debt issuance cost of $782 in 2021 and $795 in 2020)	55,920	55,907
Reserves for unpaid losses and loss adjustment expenses	812,272	789,768
Unearned premiums	305,015	320,806
Reinsurance payable	51,673	46,700
Pension liability	1,749	1,859
Payable for securities	10,979
Accounts payable and other accrued expenses	51,003	50,415
Total liabilities	1,337,791	1,314,611
Commitments and contingencies (Note 18)
Stockholders' equity:
Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2021 and 2020	3,757	3,757
Additional paid-in capital	122,725	122,893
Retained earnings	78,260	68,915
Accumulated other comprehensive (loss) income	(229)	383
Treasury stock (2,701,799 shares in 2021 and 2,730,673 in 2020), at cost	(24,761)	(25,026)
Total stockholders' equity	179,752	170,922
Total liabilities and stockholders' equity	$ 1,517,543	$ 1,485,533

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt securities, available-for-sale, Amortized cost (in dollars)	$ 344,232	$ 502,167
Equity securities, available for sale, cost (in dollars)	$ 46,847	$ 26,988
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	2,701,799	2,730,673
Senior unsecured notes due 2029 [Member]
Unamortized debt issuance cost (in dollars)	$ 820	$ 844
Subordinated Debt [Member]
Unamortized debt issuance cost (in dollars)	$ 782	$ 795

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Consolidated Statements of Operations [Abstract]
Gross premiums written	$ 163,018	$ 201,589
Ceded premiums written	(69,871)	(75,084)
Net premiums written	93,147	126,505
Change in unearned premiums	11,071	(2,572)
Net premiums earned	104,218	123,933
Investment income, net of expenses	3,010	4,458
Investment gains (losses), net	5,779	(29,330)
Finance charges	1,133	1,644
Commission and fees	260	324
Other income	19	19
Total revenues	114,419	101,048
Losses and loss adjustment expenses	70,903	93,405
Operating expenses	30,441	29,148
Interest expense	1,249	1,468
Impairment of goodwill and other intangible assets		45,996
Amortization of intangible assets	126	617
Total expenses	102,719	170,634
Income (loss) before tax	11,700	(69,586)
Income tax expense (benefit)	2,355	(5,276)
Net income (loss)	$ 9,345	$ (64,310)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.52	$ (3.55)
Diluted (in dollars per share)	$ 0.52	$ (3.55)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net income (loss)	$ 9,345	$ (64,310)
Other comprehensive (loss) income:
Change in net actuarial gain	43	34
Tax effect on change in net actuarial gain	(9)	(7)
Unrealized holding gains (losses) arising during the period	585	(6,987)
Tax effect on unrealized holding (gains) losses arising during the period	(123)	1,467
Reclassification adjustment for gains included in net income (loss)	(1,403)	(5,636)
Tax effect on reclassification adjustment for gains included in net income (loss)	295	1,184
Other comprehensive loss, net of tax	(612)	(9,945)
Comprehensive income (loss)	$ 8,733	$ (74,255)

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
Balance at Dec. 31, 2019	$ 3,757	$ 123,468	$ 160,570	$ 688	$ (25,201)
Equity based compensation		(581)
Shares issued under employee benefit plans					169
Shares issued under employee benefit plans		(169)
Net income (loss)			(64,310)			$ (64,310)
Additional minimum pension liability, net of tax				27
Unrealized holding gains (losses) arising during period, net of tax				(5,520)
Reclassification adjustment for gains included in net income (loss), net of tax				(4,452)
Ending balance at Mar. 31, 2020	3,757	122,718	96,260	(9,257)	(25,032)	188,446
Balance at Dec. 31, 2020	3,757	122,893	68,915	383	(25,026)	170,922
Equity based compensation		97
Shares issued under employee benefit plans					265
Shares issued under employee benefit plans		(265)
Net income (loss)			9,345			9,345
Additional minimum pension liability, net of tax				34
Unrealized holding gains (losses) arising during period, net of tax				462
Reclassification adjustment for gains included in net income (loss), net of tax				(1,108)
Ending balance at Mar. 31, 2021	$ 3,757	$ 122,725	$ 78,260	$ (229)	$ (24,761)	$ 179,752

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net income (loss)	$ 9,345	$ (64,310)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization expense	830	1,377
Deferred federal income taxes expense (benefit)	568	(4,804)
Investment (gains) losses , net	(5,779)	29,330
Share-based payments expense (benefit)	97	(581)
Impairment of goodwill and other intangibles		45,996
Change in ceded unearned premiums	4,720	12,925
Change in premiums receivable	10,533	8,068
Change in accounts receivable	1,342	474
Change in deferred policy acquisition costs	1,454	(2,593)
Change in reserves for losses and loss adjustment expenses	22,504	33,135
Change in unearned premiums	(15,791)	(10,353)
Change in reinsurance recoverable	(4,584)	(49,004)
Change in reinsurance balances	4,973	(1,321)
Change in federal income tax payable (recoverable)	1,787	(472)
Change in all other liabilities	515	(7,185)
Change in all other assets	(3,038)	(524)
Net cash provided by (used in) operating activities	29,476	(9,842)
Cash flows from investing activities:
Purchases of property and equipment	(64)	(433)
Purchases of investment securities	(27,829)	(144,398)
Maturities, sales and redemptions of investment securities	177,392	168,622
Net cash provided by investing activities	149,499	23,791
Increase in cash and cash equivalents and restricted cash	178,975	13,949
Cash and cash equivalents and restricted cash at beginning of period	108,308	54,948
Cash and cash equivalents and restricted cash at end of period	$ 287,283	$ 68,897

General

General	3 Months Ended
	Mar. 31, 2021
General [Abstract]
General	1. General Hallmark Financial Services, Inc. (“Hallmark” and, together with subsidiaries, the “Company”, “we,” “us” or “our”) is an insurance holding company that, through its subsidiaries, engages in the sale of property/casualty insurance products to businesses and individuals. Our business involves marketing, distributing, underwriting and servicing our insurance products, as well as providing other insurance related services. We market, distribute, underwrite and service our property/casualty insurance products primarily through business units organized by products and distribution channels. Our business units 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, E&S package and garage liability 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 , through 2020, senior care facilities; and our Aerospace & Programs business unit offers general aviation and, until exited during 2020, satellite launch property/casualty insurance products and services, as well as certain specialty programs. Our Commercial Accounts business unit offers package and monoline property/casualty and, until exited in 2016, occupational accident insurance products. Our Specialty Personal Lines business unit offers non-standard personal automobile and renters insurance products and services. Our former Workers Compensation operating unit specialized in small and middle market workers compensation business until discontinued during 2015. Our insurance company subsidiaries supporting these business units are American Hallmark Insurance Company of Texas (“AHIC”), Hallmark Insurance Company (“HIC”), Hallmark Specialty Insurance Company (“HSIC”), Hallmark County Mutual Insurance Company (“HCM”), Hallmark National Insurance Company (“HNIC”) and Texas Builders Insurance Company (“TBIC”). These business units are segregated into three reportable industry segments for financial accounting purposes. The Specialty Commercial Segment includes our Commercial Auto business unit, E&S Casualty business unit, E&S Property business unit, Professional Liability business unit and Aerospace & Programs business unit. The Standard Commercial Segment consists of the Commercial Accounts business unit and the runoff from our former Workers Compensation operating unit. The Personal Segment consists solely of our Specialty Personal Lines business unit.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2021
Basis of Presentation [Abstract]
Basis of Presentation	2. Basis of Presentation Our unaudited consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include our accounts and the accounts of our subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain 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, 2020 included in our Annual Report on Form 10-K filed with the SEC. The interim financial data as of March 31, 2021 and 2020 is unaudited. However, in the opinion of management, the interim financial 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 period ended March 31, 2021 are not necessarily indicative of the operating results to be expected for the full year. 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, 2020 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 Restricted Cash Senior Unsecured Notes Due 2029 Subordinated Debt Securities For reinsurance balances, premiums receivable, federal income tax recoverable, 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 primarily as a passive investor in mortgage-backed securities and certain collateralized corporate bank loans issued by third-party variable interest entities. The maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the consolidated balance sheets. 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. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued updated guidance for the accounting for income taxes. The updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in the existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The updated guidance is effective for the quarter ending March 31, 2021. The adoption of this guidance did not have a material effect on the Company’s results of operations, financials position or liquidity. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform ("ASU 2020-04"). ASU 2020-04 provides optional guidance for a limited period of time to ease potential accounting impact associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in ASU 2020-04 can be adopted as of March 12, 2020 and are effective through December 31, 2022. We do not currently have any contracts that have been changed to a new reference rate, but we will continue to evaluate our contracts and the effects of this standard on our condensed consolidated financial statements prior to adoption. 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. As a smaller reporting company, ASU 2016-13 is effective for fiscal years of the Company beginning after December 15, 2022, 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 will be material.

Acquisitions, Goodwill and Inta

Acquisitions, Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2021
Acquisitions, Goodwill and Intangible Assets [Abstract]
Acquisitions, Goodwill and Intangible Assets	3. Acquisitions, Goodwill and Intangible Assets In connection with its normal process for evaluating impairment triggering events, the Company determined that a significant decline in its market capitalization below its stockholders’ equity during the first quarter of 2020 indicated the impairment of the goodwill and indefinite-lived intangible assets included in its balance sheet. As a result, the Company took a $44.7 million charge to goodwill and a $1.3 million charge to indefinite-lived intangible assets during the first quarter of 2020. As of March 31, 2021 there was no goodwill or ​

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2021
Fair Value [Abstract]
Fair Value	4. 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 equity securities. 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 Level 2 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, assets that are measured at fair value on a recurring basis at March 31, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2021 ​ 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 ​ $ — ​ $ 45,407 ​ $ — ​ $ 45,407 Corporate bonds ​ — ​ 191,186 ​ 354 ​ 191,540 Corporate bank loans ​ — ​ 59,600 ​ — ​ 59,600 Municipal bonds ​ — ​ 48,588 ​ — ​ 48,588 Mortgage-backed ​ — ​ 3,390 ​ — ​ 3,390 Total debt securities ​ — ​ 348,171 ​ 354 ​ 348,525 Total equity securities ​ 53,621 ​ — ​ — ​ 53,621 Total investments ​ $ 53,621 ​ $ 348,171 ​ $ 354 ​ $ 402,146 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2020 ​ 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 ​ $ — ​ $ 179,746 ​ $ — ​ $ 179,746 Corporate bonds ​ — ​ 219,020 ​ 348 ​ 219,368 Corporate bank loans ​ — ​ 52,782 ​ — ​ 52,782 Municipal bonds ​ — ​ 50,539 ​ — ​ 50,539 Mortgage-backed ​ — ​ 4,844 ​ — ​ 4,844 Total debt securities ​ — ​ 506,931 ​ 348 ​ 507,279 Total equity securities ​ 29,388 ​ — ​ — ​ 29,388 Total investments ​ $ 29,388 ​ $ 506,931 ​ $ 348 ​ $ 536,667 ​ Due to significant unobservable inputs into the valuation model for one corporate bond as of March 31, 2021 and December 31, 2020, 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. 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 three months ended March 31, 2021 and 2020 (in thousands): ​ ​ ​ ​ Beginning balance as of January 1, 2021 $ 348 Sales ​ — Settlements ​ — Purchases ​ — Issuances ​ — Total realized/unrealized losses included in net income ​ 6 Net gain included in other comprehensive income ​ — Transfers into Level 3 ​ — Transfers out of Level 3 ​ — Ending balance as of March 31, 2021 ​ $ 354 ​ ​ ​ ​ ​ Beginning balance as of January 1, 2020 $ 339 Sales ​ — Settlements ​ — Purchases ​ — Issuances ​ — Total realized/unrealized gains included in net loss ​ (61) Net gains included in other comprehensive loss ​ — Transfers into Level 3 ​ — Transfers out of Level 3 ​ — Ending balance as of March 31, 2020 ​ $ 278 ​

Investments

Investments	3 Months Ended
	Mar. 31, 2021
Investments [Abstract]
Investments	5. Investments The amortized cost and estimated fair value of investments in debt and equity securities by category is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ ​ Amortized Cost/ ​ Unrealized ​ Unrealized ​ ​ ​ ​ Carrying Value Gains Losses Fair Value As of March 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury securities and obligations of U.S. Government ​ $ 45,088 ​ $ 320 ​ $ (1) ​ $ 45,407 Corporate bonds ​ 187,405 ​ 4,258 ​ (123) ​ 191,540 Corporate bank loans ​ 60,330 ​ 7 ​ (737) ​ 59,600 Municipal bonds ​ 48,027 ​ 607 ​ (46) ​ 48,588 Mortgage-backed ​ 3,382 ​ 70 ​ (62) ​ 3,390 Total debt securities ​ 344,232 ​ 5,262 ​ (969) ​ 348,525 Total equity securities ​ 46,847 ​ 8,974 ​ (2,200) ​ 53,621 Total investments ​ $ 391,079 ​ $ 14,236 ​ $ (3,169) ​ $ 402,146 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized Cost/ ​ ​ Unrealized ​ ​ Unrealized ​ ​ ​ As of December 31, 2020 ​ Carrying Value ​ Gains ​ Losses ​ Fair Value U.S. Treasury securities and obligations of U.S. Government ​ $ 179,259 ​ $ 487 ​ $ — ​ $ 179,746 Corporate bonds ​ 214,666 ​ 5,086 ​ (384) ​ 219,368 Corporate bank loans ​ 53,650 ​ 3 ​ (871) ​ 52,782 Municipal bonds ​ 49,833 ​ 756 ​ (50) ​ 50,539 Mortgage-backed ​ 4,759 ​ 114 ​ (29) ​ 4,844 Total debt securities ​ 502,167 ​ 6,446 ​ (1,334) ​ 507,279 Total equity securities ​ 26,988 ​ 5,648 ​ (3,248) ​ 29,388 Total investments ​ $ 529,155 ​ $ 12,094 ​ $ (4,582) ​ $ 536,667 ​ Major categories of net investment gains (losses) on investments are summarized as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2021 2020 Corporate bonds ​ $ 197 ​ $ 55 ​ Corporate bank loans ​ 51 ​ (148) ​ Municipal bonds ​ (9) ​ 1,420 ​ Equity securities ​ 1,164 ​ 4,309 ​ Gain on investments ​ 1,403 ​ 5,636 ​ Unrealized (losses) gains on other investments ​ — ​ (2,001) ​ Unrealized gain (losses) on equity investments ​ ​ 4,376 ​ ​ (32,965) ​ Investment gains (losses), net ​ $ 5,779 ​ $ (29,330) ​ ​ We realized gross gains on investments of $1.5 million and $20.4 million during the three months ended March 31, 2021 and 2020, respectively. We realized gross losses on investments of $0.1 million and $14.8 million for the three months ended March 31, 2021 and 2020, respectively. We recorded proceeds from the sale of investment securities of $1.2 million and $100.8 million during the three months ended March 31, 2021 and 2020 respectively. Realized investment gains and losses are recognized in operations on the first in-first out method. The following schedules summarize the gross unrealized losses showing the length of time that investments have been continuously in an unrealized loss position as of March 31, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2021 ​ ​ 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 ​ $ 2,950 ​ $ (1) ​ $ — ​ $ — ​ $ 2,950 ​ $ (1) Corporate bonds ​ 1,819 ​ (5) ​ 3,244 ​ (118) ​ 5,063 ​ (123) Corporate bank loans ​ 22,011 ​ (104) ​ 25,118 ​ (633) ​ 47,129 ​ (737) Municipal bonds ​ 2,720 ​ (27) ​ 1,464 ​ (19) ​ 4,184 ​ (46) Mortgage-backed ​ 368 ​ (57) ​ 13 ​ (5) ​ 381 ​ (62) Total debt securities ​ 29,868 ​ (194) ​ 29,839 ​ (775) ​ 59,707 ​ (969) Total equity securities ​ 8,118 ​ (635) ​ ​ 6,538 ​ ​ (1,565) ​ ​ 14,656 ​ (2,200) Total investments ​ $ 37,986 ​ $ (829) ​ $ 36,377 ​ $ (2,340) ​ $ 74,363 ​ $ (3,169) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2020 ​ ​ 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 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Corporate bonds ​ 7,801 ​ (186) ​ 3,556 ​ (198) ​ 11,357 ​ (384) Corporate bank loans ​ 45,233 ​ (559) ​ 4,144 ​ (312) ​ 49,377 ​ (871) Municipal bonds ​ 2,859 ​ (33) ​ 1,154 ​ (17) ​ 4,013 ​ (50) Mortgage-backed ​ 635 ​ (25) ​ 14 ​ (4) ​ 649 ​ (29) Total debt securities ​ 56,528 ​ (803) ​ 8,868 ​ (531) ​ 65,396 ​ (1,334) Total equity securities ​ 9,572 ​ (1,610) ​ 1,848 ​ (1,638) ​ 11,420 ​ (3,248) Total investments ​ $ 66,100 ​ $ (2,413) ​ $ 10,716 ​ $ (2,169) ​ $ 76,816 ​ $ (4,582) ​ We had a total of 90 debt securities with an unrealized loss, of which 49 were in an unrealized loss position for less than one year and 41 were in an unrealized loss position for a period of one year or greater, as of March 31, 2021. We held a total of 81 debt securities with an unrealized loss, of which 64 were in an unrealized loss position for less than one year and 17 were in an unrealized loss position for a period of one year or greater, as of December 31, 2020. 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. The gross unrealized losses on the debt security positions at March 31, 2021 and December 31, 2020 were due predominately to market and interest rate fluctuations and we see no other indications that the decline in values of these securities is other-than-temporary. Based on evidence gathered through our normal credit evaluation process, we presently expect that all debt securities held in our investment portfolio will be paid in accordance with their contractual terms. Nonetheless, it is at least reasonably possible that the performance of certain issuers of these debt securities will be worse than currently expected resulting in future write-downs within our portfolio of debt securities. We complete a detailed analysis each quarter to assess whether any decline in the fair value of any debt security below cost is deemed other-than-temporary. All debt securities with an unrealized loss are reviewed. We recognize an impairment loss when a debt security’s value declines below cost, adjusted for accretion, amortization and previous other-than-temporary impairments and it is determined that the decline is other-than-temporary. We did not recognize any impairment loss on debt securities during the three months ended March 31, 2021 or 2020. Debt Investments: We assess whether we intend to sell, or it is more likely than not that we will be required to sell, a fixed maturity investment before recovery of its amortized cost basis less any current period credit losses. For fixed maturity investments that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell, we separate the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the investment’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the investment’s fair value and the present value of future expected cash flows is recognized in other comprehensive income. During the three months ended March 31, 2021 or 2020 we did not dispose of any previously impaired securities. Equity Investments: Equity investments that are not consolidated or accounted for under the equity method of accounting with readily determinable fair values are not required to be evaluated for other-than-temporary-impairment. The amortized cost and estimated fair value of debt securities at March 31, 2021 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 ​ $ 150,383 ​ $ 151,762 Due after one year through five years ​ 140,739 ​ 143,504 Due after five years through ten years ​ 32,369 ​ 32,165 Due after ten years ​ 17,359 ​ 17,704 Mortgage-backed ​ 3,382 ​ 3,390 ​ ​ $ 344,232 ​ $ 348,525 ​

Pledged Investments

Pledged Investments	3 Months Ended
	Mar. 31, 2021
Pledged Investments [Abstract]
Pledged Investments	6. 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 $20.9 million and $29.7 million at March 31, 2021 and December 31, 2020, respectively.

Reserves for Unpaid Losses and

Reserves for Unpaid Losses and Loss Adjustment Expenses	3 Months Ended
	Mar. 31, 2021
Reserves for Unpaid Losses and Loss Adjustment Expenses
Reserves for Unpaid Losses and Loss Adjustment Expenses	7. Reserves for Unpaid Losses and Loss Adjustment Expenses Year to-date activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ March 31, ​ ​ ​ 2021 ​ 2020 ​ Balance at January 1 ​ $ 789,768 ​ $ 620,355 ​ Less reinsurance recoverable ​ 349,585 ​ 272,604 ​ Net balance at January 1 ​ 440,183 ​ 347,751 ​ ​ ​ ​ ​ ​ ​ ​ ​ Incurred related to: ​ ​ ​ Current year ​ 72,989 ​ 84,846 ​ Prior years ​ (2,086) ​ 8,559 ​ Total incurred ​ 70,903 ​ 93,405 ​ ​ ​ ​ ​ ​ ​ ​ ​ Paid related to: ​ ​ ​ Current year ​ 7,067 ​ 14,525 ​ Prior years ​ 52,360 ​ 80,888 ​ Total paid ​ 59,427 ​ 95,413 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net balance at March 31 ​ 451,659 ​ 345,743 ​ Plus reinsurance recoverable ​ 360,613 ​ 307,747 ​ Balance at March 31 ​ $ 812,272 ​ $ 653,490 ​ ​ The year to date impact from the (favorable) unfavorable net prior years’ loss development on each reporting segment is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ 2021 2020 Specialty Commercial Segment ​ $ (1,899) ​ $ 3,153 Standard Commercial Segment ​ (1,361) ​ 125 Personal Segment ​ 1,174 ​ 5,281 Corporate ​ — ​ — Total (favorable) unfavorable net prior year development ​ $ (2,086) ​ $ 8,559 ​ The following describes the primary factors behind each segment’s prior accident year reserve development for the three months ended March 31, 2021 and 2020: Three months ended March 31, 2021: ● Specialty Commercial Segment. Our Commercial Auto business unit experienced net favorable development in the 2020 and 2019 accident years both in the primary and excess commercial automobile liability lines of business, partially offset by net unfavorable development in the excess commercial automobile lines of business in the 2018, 2017 and 2016 accident years. Our E&S Casualty business unit experienced net unfavorable development primarily in our primary liability line of business in the 2018 and prior accident years, partially offset by net favorable development in the 2019 accident year. We experienced net favorable development in our E&S Property, Professional Liability and Aerospace & Programs business units. ● Standard Commercial Segment. Our Commercial Accounts business unit experienced net favorable development for all lines of business in total, primarily due to net favorable development in our commercial property lines of business in accident year 2020, partially offset by net unfavorable development in the general liability lines of business in accident years 2020 and 2017. The run-off from our former Workers Compensation operating unit experienced net favorable development in the 2014 and prior accident years. ● Personal Segment. Net unfavorable development in our Specialty Personal Lines business unit was attributable to the 2020 and prior accident years. The net development during the three months ended March 31, 2021 was driven predominately by unfavorable development attributable to the 2020, 2019 and 2017 accident years. Three months ended March 31, 2020: ● Specialty Commercial Segment. Our Commercial Auto business unit experienced net unfavorable development in the 2017 and prior accident years primarily in the primary commercial automobile liability line of business, partially offset by net favorable development in the primary and excess commercial automobile lines of business in the 2019 and 2018 accident years. Our E&S Casualty business unit experienced net unfavorable development primarily in our primary liability line of business and our E&S package insurance products in the 2017, 2016, 2015 and 2013 and prior accident years, partially offset by net favorable development in the 2019, 2018 and 2014 accident years. 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 unfavorable development primarily in the general liability line of business in the 2018, 2016, 2015 and 2013 and prior accident years, partially offset by net favorable development in the 2019, 2017 and 2014 accident years primarily in the general liability line of business. Our Commercial Accounts business unit experienced net favorable development in the 2015 accident year, partially offset by net unfavorable development in the 2014 accident year in the occupational accident line of business. The run-off from our former Workers Compensation operating unit experienced net favorable development in the 2013 and prior accident years. ● Personal Segment. Net unfavorable development in our Specialty Personal Lines business unit was mostly attributable to the 2019, 2018, 2017 and 2016 accident years, partially offset by favorable development in the 2015 and 2013 and prior accident years. The net development for the first quarter of 2020 was driven predominately by unfavorable development attributable to more recent treaty years where we retain a greater portion of the claims.

Share-based Payment Arrangement

Share-based Payment Arrangements	3 Months Ended
	Mar. 31, 2021
Share-Based Payment Arrangements [Abstract]
Share-Based Payment Arrangements	8. 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 March 31, 2021, 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 March 31, 2021, restricted stock units representing the right to receive up to 103,575 shares of our common stock were outstanding under the 2015 LTIP. There were no stock option awards granted under the 2015 LTIP as of March 31, 2021. ​ Stock Options: A summary of the status of our stock options as of March 31, 2021 and changes during the three 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, 2021 14,157 ​ $ 6.99 ​ Granted — ​ $ — ​ Exercised — ​ $ — ​ Forfeited or expired — ​ $ — ​ Outstanding at March 31, 2021 14,157 ​ $ 6.99 0.8 ​ $ — Exercisable at March 31, 2021 14,157 ​ $ 6.99 0.8 ​ $ — ​ 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 March 31, ​ ​ 2021 ​ 2020 Intrinsic value of options exercised ​ $ — ​ $ — Cost of share-based payments (non-cash) ​ $ — ​ $ — Income tax benefit of share-based payments recognized in income ​ $ — ​ $ — ​ As of March 31, 2021 and December 31, 2020, 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 three months of 2021 or 2020. 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 shares of common stock become issuable on March 31 of the third calendar year following the year of grant if performance criteria have been satisfied. 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” (Topic 260), 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 2017, 2018 and 2019 was $10.20, $10.87 and $18.10 per unit, respectively. We incurred compensation expense (benefit) of $97 thousand and ($581) thousand related to restricted stock units during the three months ended March 31, 2021 and 2020, respectively. We recorded income tax benefit (expense) of $20 thousand and ($122) thousand related to restricted stock units during the three months ended March 31, 2021 and 2020, respectively. ​ The following table details the status of our restricted stock units as of and for the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Restricted Stock Units ​ ​ 2021 2020 Nonvested at January 1 ​ 228,827 353,491 Granted ​ — — Vested ​ (28,874) (18,403) Forfeited ​ (130,903) (93,225) Nonvested at March 31 ​ 69,050 241,863 ​ As of March 31, 2021, there was $0.5 million of unrecognized grant date compensation cost related to unvested restricted stock units assuming compensation cost accrual at target achievement level. Based on the current performance estimate, we expect to recognize $0.2 million of compensation cost related to unvested restricted stock units, of which $0.1 million is expected to be recognized during the remainder of 2021 and $0.1 million is expected to be recognized in 2022. ​

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2021
Segment Information [Abstract]
Segment Information	9. Segment Information The following is business segment information for the three months ended March 31, 2021 and 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ 2021 ​ 2020 ​ Revenues ​ ​ ​ Specialty Commercial Segment ​ $ 71,965 ​ $ 92,120 ​ Standard Commercial Segment ​ 17,688 ​ 17,636 ​ Personal Segment ​ 18,959 ​ 22,323 ​ Corporate ​ 5,807 ​ (31,031) ​ Consolidated ​ $ 114,419 ​ $ 101,048 ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income (loss) ​ ​ ​ Specialty Commercial Segment ​ $ 11,821 ​ $ 16,292 ​ Standard Commercial Segment ​ 366 ​ 716 ​ Personal Segment ​ (1,623) ​ (5,655) ​ Corporate ​ 1,136 ​ (80,939) ​ Consolidated ​ $ 11,700 ​ $ (69,586) ​ ​ The following is additional business segment information as of the dates indicated (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, Assets: ​ 2021 ​ 2020 Specialty Commercial Segment ​ $ 1,117,546 ​ $ 1,104,953 Standard Commercial Segment ​ 198,785 ​ 183,689 Personal Segment ​ 138,897 ​ 133,310 Corporate ​ 62,315 ​ 63,581 Consolidated ​ $ 1,517,543 ​ $ 1,485,533 ​

Reinsurance

Reinsurance	3 Months Ended
	Mar. 31, 2021
Reinsurance [Abstract]
Reinsurance	10. 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 March 31, 2021 was with reinsurers that had an A.M. Best rating of “A–” or better. We also mitigate our credit risk for the remaining reinsurance recoverable by obtaining letters of credit. The following table shows earned premiums ceded and reinsurance loss recoveries by period (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ March 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ Ceded earned premiums $ 74,591 $ 88,009 Reinsurance recoveries $ 60,475 $ 83,594 ​ Loss Portfolio Transfer ​ On July 16, 2020, AHIC, HIC, HSIC, HCM and HNIC (collectively, the “Hallmark Insurers”), entered into a Loss Portfolio Transfer Reinsurance Contract to be effective as of January 1, 2020 (the “LPT Contract”) with DARAG Bermuda Ltd. (“DARAG Bermuda”) and DARAG Insurance (Guernsey) Limited (“DARAG Guernsey” and, collectively, the “Reinsurers”). The LPT Contract was consummated on July 31, 2020. The Company recorded a $21.7 million pre-tax loss during the third quarter of 2020 attributable to the closing of the LPT Contract. ​ Pursuant to the LPT Contract, (a) the Hallmark Insurers ceded to the Reinsurers all existing and future claims for losses occurring on or prior to December 31, 2019 on the binding primary commercial automobile liability insurance policies and the brokerage primary commercial automobile liability insurance policies issued by the Hallmark Insurers (the “Subject Business”) up to an aggregate limit of $240.0 million, with (i) the first layer of $151.2 million in reinsurance provided by DARAG Bermuda, (ii) the Hallmark Insurers retaining a loss corridor of the next $24.9 million in losses on the Subject Business, (iii) DARAG Bermuda reinsuring a second layer of $27.8 million above the first layer and the Hallmark Insurers’ loss corridor, and (iv) DARAG Guernsey reinsuring the top layer of $36.1 million in losses on the Subject Business, in each case net of third-party reinsurance and other recoveries; (b) the Hallmark Insurers will continue to manage and retain the benefit of other third-party reinsurance on the Subject Business; and (c) the Hallmark Insurers paid the Reinsurers a net reinsurance premium of $92.6 million. In connection with the closing, the parties also entered into a Services Agreement and a Trust Agreement. Pursuant to the Services Agreement, DARAG Bermuda assumed responsibility for certain administrative services, including claims handling, for the Subject Business. Pursuant to the Trust Agreement, the Reinsurers made initial cash deposits in the aggregate amount of $96.7 million into collateral trust accounts with The Bank of New York Mellon, as trustee, to be held as security for the Reinsurers’ obligations to the Hallmark Insurers under the LPT Contract. ​ As of March 31, 2021, the ultimate incurred losses from the subject business were $182.8 million or $6.7 million in excess of the Hallmark Insurers’ loss corridor. Our reinsurance recoverables of $494.4 million include $54.7 million related to the LPT Contract as of March 31, 2021.

Subordinated Debt Securities

Subordinated Debt Securities	3 Months Ended
	Mar. 31, 2021
Subordinated Debt Securities [Abstract]
Subordinated Debt Securities	11. Subordinated Debt Securities We issued trust preferred securities through Trust I and Trust II. These Delaware statutory trusts are sponsored and wholly-owned by Hallmark and each was created solely for the purpose of issuing the trust preferred securities. Each trust pays dividends on its preferred securities at the same rate each quarter as interest is paid on the junior subordinated debt securities. Under the terms of the junior subordinated debt securities, we pay interest only each quarter and the principal of each note at maturity. The subordinated debt securities of each trust are uncollateralized and do not require maintenance of minimum financial covenants. The following table summarizes the nature and terms of the junior subordinated debt and trust preferred securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hallmark ​ ​ Hallmark ​ ​ Statutory ​ ​ Statutory ​ ​ ​ Trust I ​ ​ Trust II ​ ​ ​ ​ ​ ​ ​ Issue date ​ ​ June 21, 2005 ​ ​ August 23, 2007 Principal amount of trust preferred securities ​ $ 30,000 ​ $ 25,000 Principal amount of junior subordinated debt securities ​ $ 30,928 ​ $ 25,774 Maturity date of junior subordinated debt securities ​ ​ June 15, 2035 ​ ​ September 15, 2037 Trust common stock ​ $ 928 ​ $ 774 Interest rate, per annum ​ ​ Three Month LIBOR + 3.25% ​ ​ Three Month LIBOR + 2.90% Current interest rate at March 31, 2021 ​ ​ 3.43% ​ ​ 3.08% ​

Senior Unsecured Notes

Senior Unsecured Notes	3 Months Ended
	Mar. 31, 2021
Senior Unsecured Notes
Senior Unsecured Notes	12. Senior Unsecured Notes On August 19, 2019, Hallmark issued $50.0 million of senior unsecured notes (“Notes”) due August 15, 2029. Interest on the Notes accrues at the rate of 6.25% per annum and is payable semi-annually in arrears commencing February 15, 2020. The Notes are not obligations of or guaranteed by any of Hallmark’s subsidiaries and are not subject to any sinking fund requirements. At Hallmark’s option, the Notes are redeemable, in whole or in part, prior to the stated maturity subject to certain provisions intended to make the holders of the Notes whole on scheduled interest and principal payments. The indenture governing the Notes contains covenants which, among other things, restrict Hallmark’s ability to incur additional indebtedness, make certain payments, create liens on the stock of certain subsidiaries, dispose of certain assets, or merge or consolidate with other entities. The terms of the indenture prohibit payments or other distributions on any security of the Company that ranks junior to the Notes when the Company’s debt to capital ratio (as defined in the indenture) is greater than 35%. The Company’s debt to capital ratio was 37% as of March 31, 2021. ​ ​ ​

Deferred Policy Acquisition Cos

Deferred Policy Acquisition Costs	3 Months Ended
	Mar. 31, 2021
Deferred Policy Acquisition Costs [Abstract]
Deferred Policy Acquisition Costs	13. Deferred Policy Acquisition Costs The following table shows total deferred and amortized policy acquisition cost activity by period reported in operating expenses (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ March 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ Deferred $ (15,103) $ (15,981) Amortized ​ ​ 16,557 ​ ​ 13,388 Net $ 1,454 $ (2,593) ​

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2021
Earnings per Share [Abstract]
Earnings per Share	14. Earnings per Share The following table sets forth basic and diluted weighted average shares outstanding for the periods indicated (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ March 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ Weighted average shares - basic ​ 18,142 ​ ​ 18,123 Effect of dilutive securities ​ — ​ ​ — Weighted average shares - assuming dilution ​ 18,142 ​ ​ 18,123 ​

Net Periodic Pension Cost

Net Periodic Pension Cost	3 Months Ended
	Mar. 31, 2021
Retirement Plans
Net Periodic Pension Cost	15. Net Periodic Pension Cost The following table details the net periodic pension cost incurred by period (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ March 31, ​ 2021 2020 Interest cost $ 68 $ 89 Amortization of net loss ​ ​ 43 ​ ​ 35 Expected return on plan assets ​ ​ (177) ​ ​ (171) Net periodic pension cost $ (66) $ (47) Contributed amount $ — $ — ​ Refer to Note 15 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020 for more discussion of our retirement plans.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Taxes [Abstract]
Income Taxes	16. Income Taxes Our effective income tax rate for the three months ended March 31, 2021 and 2020 was 20.1% and 7.6%, respectively. The effective rate for the three months ended March 31, 2021 varied from the statutory tax rates primarily due to tax exempt interest income. The effective tax rate for the three months ended March 31, 2020 varied from the statutory tax rates primarily due to the non-deductible impairment of goodwill. We concluded that no valuation allowance was necessary against our deferred tax assets as of March 31, 2021 and December 31, 2020. ​

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2021
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	17. 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 March 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents $ 281,849 $ 67,165 Restricted cash ​ ​ 5,434 ​ ​ 1,732 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 287,283 $ 68,897 ​ 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 three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest paid $ 1,576 $ 2,241 ​ ​ ​ ​ ​ ​ ​ Supplemental schedule of non-cash investing activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Receivable for securities related to investment disposals $ 1,382 $ 16,282 ​ ​ ​ ​ ​ ​ ​ Payable for securities related to investment purchases $ 10,979 $ 104 ​

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies [Abstract]
Commitments and Contingencies	18. Commitments and Contingencies ​ On May 5, 2020, a lawsuit styled Schulze v. Hallmark Financial Services, Inc., et al. (Case No. 3:20-cv-01130) was filed in the U.S. District Court for the Northern District of Texas, Dallas Division (the “Schulze Matter”). The Company, its former Chief Executive Officer and its former Chief Financial Officer are named defendants in the lawsuit brought on behalf of a putative class of shareholders who acquired Hallmark securities between March 5, 2019 and March 17, 2020. In general, the complaint alleges that the defendants violated the Securities Exchange Act of 1934 by failing to disclose that (a) the Company lacked effective internal controls over financial reporting related to its reserves for unpaid losses, (b) the Company improperly accounted for reserves for unpaid losses, (c) the Company would be forced to report $63.8 million of prior year net adverse loss development, (d) the Company would exit the contract binding line of its commercial automobile primary insurance business, and by making positive statements about the Company’s business, operations and prospects that were allegedly materially misleading and/or lacked a reasonable basis. On July 21, 2020, the court appointed Rajeev Yalamanchili as Lead Plaintiff. Lead Plaintiff filed an Amended Complaint on September 30, 2020. The litigation is in its initial stages. The Company’s current policy is to expense legal costs as incurred. Historically, the Company has not carried director and officer liability insurance and does not currently hold such a policy. ​ As of March 31, 2021, we were engaged in various other 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 other legal proceedings to which we were a party are routine in nature and incidental to our business. From time to time, assessments are levied on us by the guaranty association of the states where we offer our insurance products. Such assessments are made primarily to cover the losses of policyholders of insolvent or rehabilitated insurers. Since these assessments can generally be recovered through a reduction in future premium taxes paid, we capitalize the assessments that can be recovered as they are paid and amortize the capitalized balance against our premium tax expense. We did no t pay an assessment during the first three months of 2021 or 2020. ​

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive (Loss) Income Balances	3 Months Ended
	Mar. 31, 2021
Changes in Accumulated Other Comprehensive (Loss) Income Balances [Abstract]
Changes in Accumulated Other Comprehensive (Loss) Income Balances	19. Changes in Accumulated Other Comprehensive (Loss) Income Balances The changes in accumulated other comprehensive (loss) income balances as of March 31, 2021 and 2020 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated Other ​ ​ Pension ​ Unrealized ​ Comprehensive ​ Liability Gains (Loss) Income (Loss) Balance at January 1, 2020 ​ $ (3,239) ​ $ 3,927 ​ $ 688 Other comprehensive loss: ​ ​ ​ ​ ​ ​ ​ ​ Change in net actuarial gain ​ 34 ​ — ​ 34 Tax effect on change in net actuarial gain ​ (7) ​ — ​ (7) Unrealized holding losses arising during the period ​ — ​ (6,987) ​ (6,987) Tax effect on unrealized holdings losses arising during the period ​ — ​ 1,467 ​ 1,467 Reclassification adjustment for gains included in net income ​ — ​ (5,636) ​ (5,636) Tax effect on reclassification adjustment for gains included in net income ​ — ​ 1,184 ​ 1,184 Other comprehensive loss, net of tax ​ 27 ​ (9,972) ​ (9,945) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at March 31, 2020 ​ $ (3,212) ​ $ (6,045) ​ $ (9,257) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at January 1, 2021 ​ $ (3,762) ​ $ 4,145 ​ $ 383 Other comprehensive income: ​ ​ ​ Change in net actuarial gain ​ 43 ​ — ​ 43 Tax effect on change in net actuarial gain ​ (9) ​ — ​ (9) Unrealized holding gains arising during the period ​ — ​ 585 ​ 585 Tax effect on unrealized holding gains arising during the period ​ — ​ (123) ​ (123) Reclassification adjustment for gains included in net income ​ — ​ (1,403) ​ (1,403) Tax effect on reclassification adjustment for gains included in net income ​ — ​ 295 ​ 295 Other comprehensive loss, net of tax ​ 34 ​ (646) ​ (612) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at March 31, 2021 ​ $ (3,728) ​ $ 3,499 ​ $ (229) ​

Leases

Leases	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Leases	​ 20. Leases The Company’s operating lease obligations predominately 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-month period ended March 31, 2021 and 2020 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ March 31, ​ March 31, ​ 2021 ​ 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ $ 719 ​ ​ $ 790 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 545 ​ ​ $ 436 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ $ — ​ ​ $ — ​ ​ Other lease information as of March 31, 2021 and December 31, 2020 are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ Operating lease right-of-use assets ​ $ 13,666 ​ $ 13,986 ​ ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ $ 15,547 ​ $ 15,862 ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term - operating leases ​ ​ 10.0 ​ ​ 10.2 ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate - operating leases ​ ​ 5.87% ​ ​ 5.88% ​ ​ ​ ​ ​ We incurred $0.1 million in short-term lease payments not included in our lease liability during the three months ended March 31, 2021. ​ Future minimum lease payments under non-cancellable leases as of March 31, 2021 and December 31, 2020 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, ​ 2021 ​ ​ 2020 ​ ​ ​ ​ ​ ​ ​ 2021 ​ $ 1,626 ​ $ 2,172 2022 ​ ​ 2,171 ​ ​ 2,171 2023 ​ ​ 1,885 ​ ​ 1,885 2024 ​ ​ 1,941 ​ ​ 1,941 2025 ​ ​ 1,975 ​ ​ 1,975 Thereafter ​ ​ 11,350 ​ ​ 11,350 Total future minimum lease payments ​ $ 20,948 ​ $ 21,494 ​ ​ ​ ​ ​ ​ ​ Less imputed interest ​ $ (5,401) ​ $ (5,632) Total operating lease liability ​ $ 15,547 ​ $ 15,862 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2021
Basis of Presentation [Abstract]
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, 2020 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 Restricted Cash Senior Unsecured Notes Due 2029 Subordinated Debt Securities For reinsurance balances, premiums receivable, federal income tax recoverable, 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 primarily as a passive investor in mortgage-backed securities and certain collateralized corporate bank loans issued by third-party variable interest entities. The maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the consolidated balance sheets.
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.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In December 2019, the FASB issued updated guidance for the accounting for income taxes. The updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in the existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The updated guidance is effective for the quarter ending March 31, 2021. The adoption of this guidance did not have a material effect on the Company’s results of operations, financials position or liquidity. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform ("ASU 2020-04"). ASU 2020-04 provides optional guidance for a limited period of time to ease potential accounting impact associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in ASU 2020-04 can be adopted as of March 12, 2020 and are effective through December 31, 2022. We do not currently have any contracts that have been changed to a new reference rate, but we will continue to evaluate our contracts and the effects of this standard on our condensed consolidated financial statements prior to adoption. 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. As a smaller reporting company, ASU 2016-13 is effective for fiscal years of the Company beginning after December 15, 2022, 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 will be material.

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2021
Fair Value [Abstract]
Fair Value, Assets Measured on Recurring Basis	The following table presents, for each of the fair value hierarchy levels, assets that are measured at fair value on a recurring basis at March 31, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2021 ​ 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 ​ $ — ​ $ 45,407 ​ $ — ​ $ 45,407 Corporate bonds ​ — ​ 191,186 ​ 354 ​ 191,540 Corporate bank loans ​ — ​ 59,600 ​ — ​ 59,600 Municipal bonds ​ — ​ 48,588 ​ — ​ 48,588 Mortgage-backed ​ — ​ 3,390 ​ — ​ 3,390 Total debt securities ​ — ​ 348,171 ​ 354 ​ 348,525 Total equity securities ​ 53,621 ​ — ​ — ​ 53,621 Total investments ​ $ 53,621 ​ $ 348,171 ​ $ 354 ​ $ 402,146 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2020 ​ 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 ​ $ — ​ $ 179,746 ​ $ — ​ $ 179,746 Corporate bonds ​ — ​ 219,020 ​ 348 ​ 219,368 Corporate bank loans ​ — ​ 52,782 ​ — ​ 52,782 Municipal bonds ​ — ​ 50,539 ​ — ​ 50,539 Mortgage-backed ​ — ​ 4,844 ​ — ​ 4,844 Total debt securities ​ — ​ 506,931 ​ 348 ​ 507,279 Total equity securities ​ 29,388 ​ — ​ — ​ 29,388 Total investments ​ $ 29,388 ​ $ 506,931 ​ $ 348 ​ $ 536,667
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 three months ended March 31, 2021 and 2020 (in thousands): ​ ​ ​ ​ Beginning balance as of January 1, 2021 $ 348 Sales ​ — Settlements ​ — Purchases ​ — Issuances ​ — Total realized/unrealized losses included in net income ​ 6 Net gain included in other comprehensive income ​ — Transfers into Level 3 ​ — Transfers out of Level 3 ​ — Ending balance as of March 31, 2021 ​ $ 354 ​ ​ ​ ​ ​ Beginning balance as of January 1, 2020 $ 339 Sales ​ — Settlements ​ — Purchases ​ — Issuances ​ — Total realized/unrealized gains included in net loss ​ (61) Net gains included in other comprehensive loss ​ — Transfers into Level 3 ​ — Transfers out of Level 3 ​ — Ending balance as of March 31, 2020 ​ $ 278

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2021
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 ​ ​ ​ ​ ​ Amortized Cost/ ​ Unrealized ​ Unrealized ​ ​ ​ ​ Carrying Value Gains Losses Fair Value As of March 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury securities and obligations of U.S. Government ​ $ 45,088 ​ $ 320 ​ $ (1) ​ $ 45,407 Corporate bonds ​ 187,405 ​ 4,258 ​ (123) ​ 191,540 Corporate bank loans ​ 60,330 ​ 7 ​ (737) ​ 59,600 Municipal bonds ​ 48,027 ​ 607 ​ (46) ​ 48,588 Mortgage-backed ​ 3,382 ​ 70 ​ (62) ​ 3,390 Total debt securities ​ 344,232 ​ 5,262 ​ (969) ​ 348,525 Total equity securities ​ 46,847 ​ 8,974 ​ (2,200) ​ 53,621 Total investments ​ $ 391,079 ​ $ 14,236 ​ $ (3,169) ​ $ 402,146 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized Cost/ ​ ​ Unrealized ​ ​ Unrealized ​ ​ ​ As of December 31, 2020 ​ Carrying Value ​ Gains ​ Losses ​ Fair Value U.S. Treasury securities and obligations of U.S. Government ​ $ 179,259 ​ $ 487 ​ $ — ​ $ 179,746 Corporate bonds ​ 214,666 ​ 5,086 ​ (384) ​ 219,368 Corporate bank loans ​ 53,650 ​ 3 ​ (871) ​ 52,782 Municipal bonds ​ 49,833 ​ 756 ​ (50) ​ 50,539 Mortgage-backed ​ 4,759 ​ 114 ​ (29) ​ 4,844 Total debt securities ​ 502,167 ​ 6,446 ​ (1,334) ​ 507,279 Total equity securities ​ 26,988 ​ 5,648 ​ (3,248) ​ 29,388 Total investments ​ $ 529,155 ​ $ 12,094 ​ $ (4,582) ​ $ 536,667
Major Categories of Net Investment (Losses) Gains on Investments	Major categories of net investment gains (losses) on investments are summarized as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2021 2020 Corporate bonds ​ $ 197 ​ $ 55 ​ Corporate bank loans ​ 51 ​ (148) ​ Municipal bonds ​ (9) ​ 1,420 ​ Equity securities ​ 1,164 ​ 4,309 ​ Gain on investments ​ 1,403 ​ 5,636 ​ Unrealized (losses) gains on other investments ​ — ​ (2,001) ​ Unrealized gain (losses) on equity investments ​ ​ 4,376 ​ ​ (32,965) ​ Investment gains (losses), net ​ $ 5,779 ​ $ (29,330) ​
Summary of Gross Unrealized Loss Position	The following schedules summarize the gross unrealized losses showing the length of time that investments have been continuously in an unrealized loss position as of March 31, 2021 and December 31, 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2021 ​ ​ 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 ​ $ 2,950 ​ $ (1) ​ $ — ​ $ — ​ $ 2,950 ​ $ (1) Corporate bonds ​ 1,819 ​ (5) ​ 3,244 ​ (118) ​ 5,063 ​ (123) Corporate bank loans ​ 22,011 ​ (104) ​ 25,118 ​ (633) ​ 47,129 ​ (737) Municipal bonds ​ 2,720 ​ (27) ​ 1,464 ​ (19) ​ 4,184 ​ (46) Mortgage-backed ​ 368 ​ (57) ​ 13 ​ (5) ​ 381 ​ (62) Total debt securities ​ 29,868 ​ (194) ​ 29,839 ​ (775) ​ 59,707 ​ (969) Total equity securities ​ 8,118 ​ (635) ​ ​ 6,538 ​ ​ (1,565) ​ ​ 14,656 ​ (2,200) Total investments ​ $ 37,986 ​ $ (829) ​ $ 36,377 ​ $ (2,340) ​ $ 74,363 ​ $ (3,169) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2020 ​ ​ 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 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Corporate bonds ​ 7,801 ​ (186) ​ 3,556 ​ (198) ​ 11,357 ​ (384) Corporate bank loans ​ 45,233 ​ (559) ​ 4,144 ​ (312) ​ 49,377 ​ (871) Municipal bonds ​ 2,859 ​ (33) ​ 1,154 ​ (17) ​ 4,013 ​ (50) Mortgage-backed ​ 635 ​ (25) ​ 14 ​ (4) ​ 649 ​ (29) Total debt securities ​ 56,528 ​ (803) ​ 8,868 ​ (531) ​ 65,396 ​ (1,334) Total equity securities ​ 9,572 ​ (1,610) ​ 1,848 ​ (1,638) ​ 11,420 ​ (3,248) Total investments ​ $ 66,100 ​ $ (2,413) ​ $ 10,716 ​ $ (2,169) ​ $ 76,816 ​ $ (4,582)
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 ​ $ 150,383 ​ $ 151,762 Due after one year through five years ​ 140,739 ​ 143,504 Due after five years through ten years ​ 32,369 ​ 32,165 Due after ten years ​ 17,359 ​ 17,704 Mortgage-backed ​ 3,382 ​ 3,390 ​ ​ $ 344,232 ​ $ 348,525

Reserves for Unpaid Losses an_2

Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables)	3 Months Ended
	Mar. 31, 2021
Reserves for Unpaid Losses and Loss Adjustment Expenses
Summary of Activity in the Reserves for Unpaid Losses and Loss Adjustment Expense	Year to-date activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ March 31, ​ ​ ​ 2021 ​ 2020 ​ Balance at January 1 ​ $ 789,768 ​ $ 620,355 ​ Less reinsurance recoverable ​ 349,585 ​ 272,604 ​ Net balance at January 1 ​ 440,183 ​ 347,751 ​ ​ ​ ​ ​ ​ ​ ​ ​ Incurred related to: ​ ​ ​ Current year ​ 72,989 ​ 84,846 ​ Prior years ​ (2,086) ​ 8,559 ​ Total incurred ​ 70,903 ​ 93,405 ​ ​ ​ ​ ​ ​ ​ ​ ​ Paid related to: ​ ​ ​ Current year ​ 7,067 ​ 14,525 ​ Prior years ​ 52,360 ​ 80,888 ​ Total paid ​ 59,427 ​ 95,413 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net balance at March 31 ​ 451,659 ​ 345,743 ​ Plus reinsurance recoverable ​ 360,613 ​ 307,747 ​ Balance at March 31 ​ $ 812,272 ​ $ 653,490 ​
Impact of Net Prior Years Loss Development On Each Reporting Segment	The year to date impact from the (favorable) unfavorable net prior years’ loss development on each reporting segment is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ 2021 2020 Specialty Commercial Segment ​ $ (1,899) ​ $ 3,153 Standard Commercial Segment ​ (1,361) ​ 125 Personal Segment ​ 1,174 ​ 5,281 Corporate ​ — ​ — Total (favorable) unfavorable net prior year development ​ $ (2,086) ​ $ 8,559

Share-Based Payment Arrangeme_2

Share-Based Payment Arrangements (Tables)	3 Months Ended
	Mar. 31, 2021
Share-Based Payment Arrangements [Abstract]
Summary of the Status of Stock Options	A summary of the status of our stock options as of March 31, 2021 and changes during the three 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, 2021 14,157 ​ $ 6.99 ​ Granted — ​ $ — ​ Exercised — ​ $ — ​ Forfeited or expired — ​ $ — ​ Outstanding at March 31, 2021 14,157 ​ $ 6.99 0.8 ​ $ — Exercisable at March 31, 2021 14,157 ​ $ 6.99 0.8 ​ $ —
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 March 31, ​ ​ 2021 ​ 2020 Intrinsic value of options exercised ​ $ — ​ $ — 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	The following table details the status of our restricted stock units as of and for the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Restricted Stock Units ​ ​ 2021 2020 Nonvested at January 1 ​ 228,827 353,491 Granted ​ — — Vested ​ (28,874) (18,403) Forfeited ​ (130,903) (93,225) Nonvested at March 31 ​ 69,050 241,863

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2021
Segment Information [Abstract]
Schedule of Business Segment Information	The following is business segment information for the three months ended March 31, 2021 and 2020 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ 2021 ​ 2020 ​ Revenues ​ ​ ​ Specialty Commercial Segment ​ $ 71,965 ​ $ 92,120 ​ Standard Commercial Segment ​ 17,688 ​ 17,636 ​ Personal Segment ​ 18,959 ​ 22,323 ​ Corporate ​ 5,807 ​ (31,031) ​ Consolidated ​ $ 114,419 ​ $ 101,048 ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-tax income (loss) ​ ​ ​ Specialty Commercial Segment ​ $ 11,821 ​ $ 16,292 ​ Standard Commercial Segment ​ 366 ​ 716 ​ Personal Segment ​ (1,623) ​ (5,655) ​ Corporate ​ 1,136 ​ (80,939) ​ Consolidated ​ $ 11,700 ​ $ (69,586) ​
Schedule of Additional Business Segment Information	The following is additional business segment information as of the dates indicated (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, Assets: ​ 2021 ​ 2020 Specialty Commercial Segment ​ $ 1,117,546 ​ $ 1,104,953 Standard Commercial Segment ​ 198,785 ​ 183,689 Personal Segment ​ 138,897 ​ 133,310 Corporate ​ 62,315 ​ 63,581 Consolidated ​ $ 1,517,543 ​ $ 1,485,533

Reinsurance (Tables)

Reinsurance (Tables)	3 Months Ended
	Mar. 31, 2021
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 ​ March 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ Ceded earned premiums $ 74,591 $ 88,009 Reinsurance recoveries $ 60,475 $ 83,594

Subordinated Debt Securities (T

Subordinated Debt Securities (Tables)	3 Months Ended
	Mar. 31, 2021
Subordinated Debt Securities [Abstract]
Summary of the nature and terms of the junior subordinated debt and trust preferred securities	The following table summarizes the nature and terms of the junior subordinated debt and trust preferred securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hallmark ​ ​ Hallmark ​ ​ Statutory ​ ​ Statutory ​ ​ ​ Trust I ​ ​ Trust II ​ ​ ​ ​ ​ ​ ​ Issue date ​ ​ June 21, 2005 ​ ​ August 23, 2007 Principal amount of trust preferred securities ​ $ 30,000 ​ $ 25,000 Principal amount of junior subordinated debt securities ​ $ 30,928 ​ $ 25,774 Maturity date of junior subordinated debt securities ​ ​ June 15, 2035 ​ ​ September 15, 2037 Trust common stock ​ $ 928 ​ $ 774 Interest rate, per annum ​ ​ Three Month LIBOR + 3.25% ​ ​ Three Month LIBOR + 2.90% Current interest rate at March 31, 2021 ​ ​ 3.43% ​ ​ 3.08%

Deferred Policy Acquisition C_2

Deferred Policy Acquisition Costs (Tables)	3 Months Ended
	Mar. 31, 2021
Deferred Policy Acquisition Costs [Abstract]
Deferred Amortized Policy Acquisition Costs	The following table shows total deferred and amortized policy acquisition cost activity by period reported in operating expenses (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ March 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ Deferred $ (15,103) $ (15,981) Amortized ​ ​ 16,557 ​ ​ 13,388 Net $ 1,454 $ (2,593)

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2021
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 ​ March 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ Weighted average shares - basic ​ 18,142 ​ ​ 18,123 Effect of dilutive securities ​ — ​ ​ — Weighted average shares - assuming dilution ​ 18,142 ​ ​ 18,123

Net Periodic Pension Cost (Tabl

Net Periodic Pension Cost (Tables)	3 Months Ended
	Mar. 31, 2021
Retirement Plans
Schedule of Net Benefit Costs	The following table details the net periodic pension cost incurred by period (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ March 31, ​ 2021 2020 Interest cost $ 68 $ 89 Amortization of net loss ​ ​ 43 ​ ​ 35 Expected return on plan assets ​ ​ (177) ​ ​ (171) Net periodic pension cost $ (66) $ (47) Contributed amount $ — $ —

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents $ 281,849 $ 67,165 Restricted cash ​ ​ 5,434 ​ ​ 1,732 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 287,283 $ 68,897
Supplemental cash flow information	The following table provides supplemental cash flow information for the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest paid $ 1,576 $ 2,241 ​ ​ ​ ​ ​ ​ ​ Supplemental schedule of non-cash investing activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Receivable for securities related to investment disposals $ 1,382 $ 16,282 ​ ​ ​ ​ ​ ​ ​ Payable for securities related to investment purchases $ 10,979 $ 104

Changes in Accumulated Other _2

Changes in Accumulated Other Comprehensive (Loss) Income Balances (Tables)	3 Months Ended
	Mar. 31, 2021
Changes in Accumulated Other Comprehensive (Loss) Income Balances [Abstract]
Schedule of Changes in Accumulated Other Comprehensive (Loss) Income	The changes in accumulated other comprehensive (loss) income balances as of March 31, 2021 and 2020 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated Other ​ ​ Pension ​ Unrealized ​ Comprehensive ​ Liability Gains (Loss) Income (Loss) Balance at January 1, 2020 ​ $ (3,239) ​ $ 3,927 ​ $ 688 Other comprehensive loss: ​ ​ ​ ​ ​ ​ ​ ​ Change in net actuarial gain ​ 34 ​ — ​ 34 Tax effect on change in net actuarial gain ​ (7) ​ — ​ (7) Unrealized holding losses arising during the period ​ — ​ (6,987) ​ (6,987) Tax effect on unrealized holdings losses arising during the period ​ — ​ 1,467 ​ 1,467 Reclassification adjustment for gains included in net income ​ — ​ (5,636) ​ (5,636) Tax effect on reclassification adjustment for gains included in net income ​ — ​ 1,184 ​ 1,184 Other comprehensive loss, net of tax ​ 27 ​ (9,972) ​ (9,945) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at March 31, 2020 ​ $ (3,212) ​ $ (6,045) ​ $ (9,257) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at January 1, 2021 ​ $ (3,762) ​ $ 4,145 ​ $ 383 Other comprehensive income: ​ ​ ​ Change in net actuarial gain ​ 43 ​ — ​ 43 Tax effect on change in net actuarial gain ​ (9) ​ — ​ (9) Unrealized holding gains arising during the period ​ — ​ 585 ​ 585 Tax effect on unrealized holding gains arising during the period ​ — ​ (123) ​ (123) Reclassification adjustment for gains included in net income ​ — ​ (1,403) ​ (1,403) Tax effect on reclassification adjustment for gains included in net income ​ — ​ 295 ​ 295 Other comprehensive loss, net of tax ​ 34 ​ (646) ​ (612) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at March 31, 2021 ​ $ (3,728) ​ $ 3,499 ​ $ (229)

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Summary of components of lease expense and other lease information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ March 31, ​ March 31, ​ 2021 ​ 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ $ 719 ​ ​ $ 790 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 545 ​ ​ $ 436 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ $ — ​ ​ $ — ​
Summary of balance sheet components	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2021 2020 ​ ​ ​ ​ ​ ​ ​ Operating lease right-of-use assets ​ $ 13,666 ​ $ 13,986 ​ ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ $ 15,547 ​ $ 15,862 ​ ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term - operating leases ​ ​ 10.0 ​ ​ 10.2 ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate - operating leases ​ ​ 5.87% ​ ​ 5.88%
Summary of future minimum lease payments under non-cancellable leases	Future minimum lease payments under non-cancellable leases as of March 31, 2021 and December 31, 2020 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, ​ 2021 ​ ​ 2020 ​ ​ ​ ​ ​ ​ ​ 2021 ​ $ 1,626 ​ $ 2,172 2022 ​ ​ 2,171 ​ ​ 2,171 2023 ​ ​ 1,885 ​ ​ 1,885 2024 ​ ​ 1,941 ​ ​ 1,941 2025 ​ ​ 1,975 ​ ​ 1,975 Thereafter ​ ​ 11,350 ​ ​ 11,350 Total future minimum lease payments ​ $ 20,948 ​ $ 21,494 ​ ​ ​ ​ ​ ​ ​ Less imputed interest ​ $ (5,401) ​ $ (5,632) Total operating lease liability ​ $ 15,547 ​ $ 15,862 ​ ​ ​ ​ ​ ​

General (Narrative) (Details)

General (Narrative) (Details)	3 Months Ended
	Mar. 31, 2021segment
General [Abstract]
Number of reportable segments	3

Basis of Presentation (Narrativ

Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands	Aug. 23, 2007	Jun. 21, 2005	Mar. 31, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Senior unsecured notes due 2029, carrying value			$ 49,180	$ 49,156
Hallmark Statutory Trust I [Member]
Variable Interest Entity [Line Items]
Proceeds from issuance of trust preferred securities	$ 25,000	$ 30,000
Senior unsecured notes due 2029 [Member]
Variable Interest Entity [Line Items]
Senior unsecured notes due 2029, carrying value			49,200
Senior unsecured notes due 2029, fair value			52,200
Subordinated Debt [Member]
Variable Interest Entity [Line Items]
Trust preferred securities, carrying value			55,900
Trust preferred securities, fair value			$ 30,300
Subordinated Debt [Member] | Hallmark Statutory Trust I [Member]
Variable Interest Entity [Line Items]
Payments to acquire trust preferred investments	$ 25,800	$ 30,900

Acquisitions, Goodwill and In_2

Acquisitions, Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2021
Acquisitions, Goodwill and Intangible Assets [Abstract]
Goodwill, Impairment Loss	$ 44.7
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	$ 1.3
Goodwill		$ 0
Indefinite-lived intangibles		$ 0

Fair Value (Narrative) (Details

Fair Value (Narrative) (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021USD ($)security	Dec. 31, 2020security
Fair Value [Abstract]
Available-For-Sale Securities, Number Of Debt Securities With Unobservable Inputs | security	1	1
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	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 348,525	$ 507,279
Total equity securities	53,621	29,388
Total investments	402,146	536,667
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	53,621	29,388
Mortgage Backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	3,390
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	348,525	507,279
Total investments	402,146	536,667
Fair Value, Recurring [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities	53,621	29,388
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]
Fair Value	45,407	179,746
Fair Value, Recurring [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	191,540	219,368
Fair Value, Recurring [Member] | Corporate bank loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	59,600	52,782
Fair Value, Recurring [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	48,588	50,539
Fair Value, Recurring [Member] | Mortgage Backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	3,390	4,844
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		0
Total investments	53,621	29,388
Fair Value, Inputs, 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	53,621	29,388
Fair Value, Inputs, Level 1 [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]
Fair Value		0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Corporate bank loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Mortgage Backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	348,171	506,931
Total investments	348,171	506,931
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities		0
Fair Value, 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]
Fair Value	45,407	179,746
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	191,186	219,020
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate bank loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	59,600	52,782
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	48,588	50,539
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Mortgage Backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	3,390	4,844
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	354	348
Total investments	354	348
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total equity securities		0
Fair Value, Inputs, Level 3 [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]
Fair Value		0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 354	348
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate bank loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Mortgage Backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		$ 0

Fair Value (Fair Value, Assets

Fair Value (Fair Value, Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 348	$ 339
Sales	0	0
Settlements	0	0
Purchases	0	0
Issuances	0	0
Total realized/unrealized gains included in net income (loss)	6	(61)
Net gains included in other comprehensive income (loss)	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Ending balance	$ 354	$ 278

Investments (Narrative) (Detail

Investments (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)security	Mar. 31, 2020USD ($)	Dec. 31, 2020security
Schedule of Available-for-sale Securities [Line Items]
Gross gains on investments | $	$ 1.5	$ 20.4
Gross losses on investments | $	0.1	14.8
Proceeds from sale of investment securities | $	1.2	100.8
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract]
Other-than-temporary impairment | $	$ 0	$ 0
Number of securities sold | security	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	90		81
Number of debt securities with unrealized loss, less than 12 months | security	49		64
Number of debt securities with unrealized loss, greater than 12 months | security	41		17

Investments (Amortized Cost and

Investments (Amortized Cost and Estimated Fair Value of Investments in Debt and Equity Securities by Category) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized Cost/ Carrying Value	$ 344,232	$ 502,167
Fair Value	348,525	507,279
Equity Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Equity securities, Amortized Cost/ Carrying Value	46,847	26,988
Total equity securities	53,621	29,388
Investments, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Investments, Amortized cost/ Carrying Value	391,079	529,155
Investments, Gross Unrealized Gains	14,236	12,094
Investments, Gross Unrealized Losses	(3,169)	(4,582)
Investments, Fair value	402,146	536,667
Mortgage Backed [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized Cost/ Carrying Value	3,382
Fair Value	3,390
Debt Securities [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized Cost/ Carrying Value	344,232	502,167
Gross Unrealized Gain	5,262	6,446
Gross Unrealized Loss	(969)	(1,334)
Fair Value	348,525	507,279
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]
Amortized Cost/ Carrying Value	45,088	179,259
Gross Unrealized Gain	320	487
Gross Unrealized Loss	(1)	0
Fair Value	45,407	179,746
Debt Securities [Member] | Corporate Bonds [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized Cost/ Carrying Value	187,405	214,666
Gross Unrealized Gain	4,258	5,086
Gross Unrealized Loss	(123)	(384)
Fair Value	191,540	219,368
Debt Securities [Member] | Corporate bank loans [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized Cost/ Carrying Value	60,330	53,650
Gross Unrealized Gain	7	3
Gross Unrealized Loss	(737)	(871)
Fair Value	59,600	52,782
Debt Securities [Member] | Municipal Bonds [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized Cost/ Carrying Value	48,027	49,833
Gross Unrealized Gain	607	756
Gross Unrealized Loss	(46)	(50)
Fair Value	48,588	50,539
Debt Securities [Member] | Mortgage Backed [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized Cost/ Carrying Value	3,382	4,759
Gross Unrealized Gain	70	114
Gross Unrealized Loss	(62)	(29)
Fair Value	3,390	4,844
Equity Securities [Member]
Equity Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Equity securities, Amortized Cost/ Carrying Value	46,847	26,988
Equity Securities, Gross Unrealized Gains	8,974	5,648
Equity Securities, Gross Unrealized Losses	(2,200)	(3,248)
Total equity securities	$ 53,621	$ 29,388

Investments (Major Categories o

Investments (Major Categories of Net Investment Gains (Losses) on Investments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Gain (Loss) on Securities [Line Items]
Gain on investments	$ 1,403	$ 5,636
Investment gains (losses), net	5,779	(29,330)
Equity Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on equity securities	1,164	4,309
Unrealized gain (losses)	4,376	(32,965)
Other Investments [Member]
Gain (Loss) on Securities [Line Items]
Unrealized gain (losses)	0	(2,001)
Corporate Bonds [Member] | Debt Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on debt securities	197	55
Corporate bank loans [Member] | Debt Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on debt securities	51	(148)
Municipal Bonds [Member] | Debt Securities [Member]
Gain (Loss) on Securities [Line Items]
Gain (loss) on debt securities	$ (9)	$ 1,420

Investments (Summary of Gross U

Investments (Summary of Gross Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Investments, Unrealized Loss Position, Fair Value
Investments, Fair Value 12 months or less	$ 37,986	$ 66,100
Investments, Fair Value Longer than 12 months	36,377	10,716
Investments, Total Fair Value	74,363	76,816
Investments, Unrealized Losses
Investments, Unrealized Losses 12 months or less	(829)	(2,413)
Investments, Unrealized Losses Longer than 12 months	(2,340)	(2,169)
Investments, Total Unrealized Losses	(3,169)	(4,582)
Debt Securities [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less	29,868	56,528
Debt securities, Fair Value Longer than 12 months	29,839	8,868
Debt securities, Total Fair Value	59,707	65,396
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(194)	(803)
Debt securities, Unrealized Losses Longer than 12 months	(775)	(531)
Debt securities, Total Unrealized Losses	969	1,334
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	2,950	0
Debt securities, Fair Value Longer than 12 months	0	0
Debt securities, Total Fair Value	2,950	0
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(1)	0
Debt securities, Unrealized Losses Longer than 12 months	0	0
Debt securities, Total Unrealized Losses	1	0
Debt Securities [Member] | Corporate Bonds [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less	1,819	7,801
Debt securities, Fair Value Longer than 12 months	3,244	3,556
Debt securities, Total Fair Value	5,063	11,357
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(5)	(186)
Debt securities, Unrealized Losses Longer than 12 months	(118)	(198)
Debt securities, Total Unrealized Losses	123	384
Debt Securities [Member] | Corporate bank loans [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less	22,011	45,233
Debt securities, Fair Value Longer than 12 months	25,118	4,144
Debt securities, Total Fair Value	47,129	49,377
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(104)	(559)
Debt securities, Unrealized Losses Longer than 12 months	(633)	(312)
Debt securities, Total Unrealized Losses	737	871
Debt Securities [Member] | Municipal Bonds [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less	2,720	2,859
Debt securities, Fair Value Longer than 12 months	1,464	1,154
Debt securities, Total Fair Value	4,184	4,013
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(27)	(33)
Debt securities, Unrealized Losses Longer than 12 months	(19)	(17)
Debt securities, Total Unrealized Losses	46	50
Debt Securities [Member] | Mortgage Backed [Member]
Debt Securities, Unrealized Loss Position, Fair Value
Debt securities, Fair Value 12 months or less	368	635
Debt securities, Fair Value Longer than 12 months	13	14
Debt securities, Total Fair Value	381	649
Debt securities, Unrealized Losses
Debt securities, Unrealized Losses 12 months or less	(57)	(25)
Debt securities, Unrealized Losses Longer than 12 months	(5)	(4)
Debt securities, Total Unrealized Losses	62	29
Equity Securities [Member]
Equity Securities, Unrealized Loss Position, Fair Value
Equity securities, Fair Value 12 months or less	8,118	9,572
Equity securities, Fair Value Longer than 12 months	6,538	1,848
Equity securities, Total Fair Value	14,656	11,420
Equity Securities, Unrealized Loss
Equity securities, Unrealized Losses 12 months or less	(635)	(1,610)
Equity securities, Unrealized Losses Longer than 12 months	(1,565)	(1,638)
Equity securities, Total Unrealized Losses	$ (2,200)	$ (3,248)

Investments (Schedule of Amorti

Investments (Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Due in one year or less	$ 150,383
Amortized Cost, Due after one year through five years	140,739
Amortized Cost, Due after five years through ten years	32,369
Amortized Cost, Amortized Cost Due after ten years	17,359
Amortized Cost	344,232	$ 502,167
Fair Value, Due in one year or less	151,762
Fair Value, Due after one year through five years	143,504
Fair Value, Due after five years through ten years	32,165
Fair Value, Due after ten years	17,704
Fair Value	348,525	$ 507,279
Mortgage Backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,382
Fair Value	$ 3,390

Pledged Investments (Narrative)

Pledged Investments (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Pledged Investments [Abstract]
Securities available-for-sale pledged, carrying value	$ 20.9	$ 29.7

Reserves for Losses and Loss Ad

Reserves for Losses and Loss Adjustment Expenses (Activity in the Reserves for Unpaid Losses and Loss Adjustment Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reserves for Unpaid Losses and Loss Adjustment Expenses
Balance at January 1	$ 789,768	$ 620,355
Less reinsurance recoverable	349,585	272,604
Net balance at January 1	440,183	347,751
Incurred related to:
Current year	72,989	84,846
Prior years	(2,086)	8,559
Total incurred	70,903	93,405
Paid related to:
Current year	7,067	14,525
Prior years	52,360	80,888
Total paid	59,427	95,413
Net balance at March 31	451,659	345,743
Plus reinsurance recoverable	360,613	307,747
Balance at March 31	$ 812,272	$ 653,490

Reserves for Losses and Loss _2

Reserves for Losses and Loss Adjustment Expenses (Causes for Prior Accident Year Reserve Development by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Total (favorable) unfavorable net prior year development	$ (2,086)	$ 8,559
Specialty Commercial Segment [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Total (favorable) unfavorable net prior year development	(1,899)	3,153
Standard Commercial Segment [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Total (favorable) unfavorable net prior year development	(1,361)	125
Personal Segment [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Total (favorable) unfavorable net prior year development	1,174	5,281
Corporate [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Total (favorable) unfavorable net prior year development	$ 0	$ 0

Share-Based Payment Arrangeme_3

Share-Based Payment Arrangements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2020
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
Share-based compensation arrangement by share-based payment award, restricted stock options to purchase number of shares	103,575
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
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	500
Allocated share-based compensation expense (benefit)	97	$ (581)
Income tax benefit (expense) of share-based payments recognized in income	20	$ (122)
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognized	200
Remainder of 2021	100
2022	$ 100
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%
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%
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			$ 18.10	$ 10.87	$ 10.20

Share-Based Payment Arrangeme_4

Share-Based Payment Arrangements (Summary of the Status of Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-Based Payment Arrangements [Abstract]
Stock Options, Outstanding at January 1, 2021	14,157
Stock options, Granted	0	0
Stock Options, Exercised	0
Stock Options, Forfeited or Expired	0
Stock Options, Outstanding at March 31, 2021	14,157
Stock Options, Exercisable at March 31, 2021	14,157
Weighted Average Exercise Price, Outstanding at January 1, 2021	$ 6.99
Weighted Average Exercise Price, Granted	0
Weighted Average Exercise Price, Exercised	0
Weighted Average Exercise Price, Forfeited or Expired	0
Weighted Average Exercise Price, Outstanding at March 31, 2021	6.99
Weighted Average Exercise Price, Exercisable at March 31, 2021	$ 6.99
Average Remaining Contractual Term, Outstanding at March 31, 2021	9 months 18 days
Average Remaining Contractual Term, Exercisable at March 31, 2021	9 months 18 days
Aggregate Intrinsic Value, Outstanding at March 31, 2021	$ 0
Aggregate Intrinsic Value, Exercisable at March 31, 2021	$ 0

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
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost of share-based payments (non-cash)	$ 97	$ (581)
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised	0	0
Cost of share-based payments (non-cash)	0	0
Income tax benefit of share-based payments recognized in income	$ 0	$ 0

Share-Based Payment Arrangeme_6

Share-Based Payment Arrangements (Summary of the Status of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested at January 1	228,827	353,491
Granted	0	0
Vested	(28,874)	(18,403)
Forfeited	(130,903)	(93,225)
Nonvested at March 31, 2021	69,050	241,863

Segment Information (Schedule o

Segment Information (Schedule of Business Segment Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues [Abstract]
Revenues	$ 114,419	$ 101,048
Pre-Tax Income (Loss) [Abstract]
Pre-tax income (loss)	11,700	(69,586)
Specialty Commercial Segment [Member]
Revenues [Abstract]
Revenues	71,965	92,120
Pre-Tax Income (Loss) [Abstract]
Pre-tax income (loss)	11,821	16,292
Standard Commercial Segment [Member]
Revenues [Abstract]
Revenues	17,688	17,636
Pre-Tax Income (Loss) [Abstract]
Pre-tax income (loss)	366	716
Personal Segment [Member]
Revenues [Abstract]
Revenues	18,959	22,323
Pre-Tax Income (Loss) [Abstract]
Pre-tax income (loss)	(1,623)	(5,655)
Corporate [Member]
Revenues [Abstract]
Revenues	5,807	(31,031)
Pre-Tax Income (Loss) [Abstract]
Pre-tax income (loss)	$ 1,136	$ (80,939)

Segment Information (Schedule_2

Segment Information (Schedule of Additional Business Segment Information) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Assets	$ 1,517,543	$ 1,485,533
Specialty Commercial Segment [Member]
Segment Reporting Information [Line Items]
Assets	1,117,546	1,104,953
Standard Commercial Segment [Member]
Segment Reporting Information [Line Items]
Assets	198,785	183,689
Personal Segment [Member]
Segment Reporting Information [Line Items]
Assets	138,897	133,310
Corporate [Member]
Segment Reporting Information [Line Items]
Assets	$ 62,315	$ 63,581

Reinsurance (Schedule of Reinsu

Reinsurance (Schedule of Reinsurance Ceded and Recoveries) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reinsurance [Abstract]
Ceded earned premiums	$ 74,591	$ 88,009
Reinsurance recoveries	$ 60,475	$ 83,594

Reinsurance - LPT (Details)

Reinsurance - LPT (Details) - USD ($) $ in Thousands	Jul. 16, 2020	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020
Effects of Reinsurance [Line Items]
Ceded premiums written		$ 69,871		$ 75,084
Reinsurance Recoverables		494,400
LPT
Effects of Reinsurance [Line Items]
Pre-tax loss			$ 21,700
Policyholder benefits and claims incurred, ceded	$ 240,000
Ceded premiums written	92,600
Payments for Deposits with Other Institutions	96,700
Reinsurance contract, ultimate incurred losses		182,800
Reinsurance contract in excess of the first layer		6,700
Reinsurance Recoverables		$ 54,700
First Layer Of Reinsurance By DARAG Bermuda [Member] | LPT
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Excess Retention, Amount Reinsured	151,200
Reinsurance Retention Policy, Amount Retained	24,900
Second Layer Of Reinsurance By DARAG Bermuda [Member] | LPT
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Amount Retained	27,800
Top Layer Of Reinsurance By DARAG Guernsey [Member] | LPT
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Amount Retained	$ 36,100

Subordinated Debt Securities (S

Subordinated Debt Securities (Summary of the Nature and Terms of the Junior Subordinated Debt and Trust) (Details) - USD ($) shares in Thousands, $ in Thousands	Aug. 23, 2007	Jun. 21, 2005	Mar. 31, 2021
Hallmark Statutory Trust I [Member]
Subordinated Borrowing [Line Items]
Principal amount of trust preferred securities	$ 25,000	$ 30,000
Hallmark Statutory Trust I [Member] | Junior subordinated debt
Subordinated Borrowing [Line Items]
Issue date		Jun. 21, 2005
Principal amount of trust preferred securities		$ 30,000
Principal amount of junior subordinated debt securities		$ 30,928
Maturity date of junior subordinated debt securities		Jun. 15, 2035
Trust common stock		928
Interest rate, per annum		Three Month LIBOR + 3.25%
Current interest rate			3.43%
Hallmark Statutory Trust I [Member] | London Interbank Offered Rate (LIBOR) [Member] | Junior subordinated debt
Subordinated Borrowing [Line Items]
Debt instrument, basis spread on variable rate		3.25%
Hallmark Statutory Trust II [Member] | Junior subordinated debt
Subordinated Borrowing [Line Items]
Issue date	Aug. 23, 2007
Principal amount of trust preferred securities	$ 25,000
Principal amount of junior subordinated debt securities	$ 25,774
Maturity date of junior subordinated debt securities	Sep. 15, 2037
Trust common stock	774
Interest rate, per annum	Three Month LIBOR + 2.90%
Current interest rate			3.08%
Hallmark Statutory Trust II [Member] | London Interbank Offered Rate (LIBOR) [Member] | Junior subordinated debt
Subordinated Borrowing [Line Items]
Debt instrument, basis spread on variable rate	2.90%

Senior Unsecured Notes (Details

Senior Unsecured Notes (Details) $ in Millions	Aug. 19, 2019USD ($)	Mar. 31, 2021
Debt Instrument [Line Items]
Ratio of Indebtedness to Net Capital		37
Senior unsecured notes ("Notes") due August 15, 2029
Debt Instrument [Line Items]
Principal amount	$ 50
Interest rate	6.25%
Debt to capital ratio covenant	35.00%

Deferred Policy Acquisition C_3

Deferred Policy Acquisition Costs (Deferred Amortized Policy Acquisition Costs) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Document and Entity Information [Abstract]
Deferred, dispositions	$ (15,103)	$ (15,981)
Amortized	16,557	13,388
Net	$ 1,454	$ (2,593)

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Earnings per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	14,157	14,157

Earnings Per Share (Schedule of

Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Earnings per Share [Abstract]
Weighted average shares - basic	18,142	18,123
Effect of dilutive securities	0	0
Weighted average shares - assuming dilution	18,142	18,123

Net Periodic Pension Cost (Sche

Net Periodic Pension Cost (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Retirement Plans
Interest cost	$ 68	$ 89
Amortization of net loss	43	35
Expected return on plan assets	(177)	(171)
Net periodic pension cost	(66)	(47)
Contributed amount	$ 0	$ 0

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Income Taxes [Abstract]
Effective income tax rate, continuing operations	20.10%	7.60%
Valuation allowance	$ 0		$ 0

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	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	$ 281,849	$ 102,580	$ 67,165
Restricted cash	5,434	5,728	1,732
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 287,283	$ 108,308	$ 68,897	$ 54,948

Supplemental Cash Flow Inform_4

Supplemental Cash Flow Information (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Supplemental Cash Flow Information [Abstract]
Interest paid	$ 1,576	$ 2,241
Receivable for securities related to investment disposals	1,382	16,282
Payable for securities related to investment purchases	$ 10,979	$ 104

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands	May 05, 2020	Mar. 31, 2021	Mar. 31, 2020
Commitments and Contingencies [Abstract]
Net adverse loss development	$ 63,800
Guaranty association assessments		$ 0	$ 0

Changes in Accumulated Other _3

Changes in Accumulated Other Comprehensive (Loss) Income Balances (Schedule of Accumulated Other Comprehensive (Loss) Income ) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 383
Other comprehensive (loss) income:
Change in net actuarial gain	43	$ 34
Tax effect on change in net actuarial gain	(9)	(7)
Unrealized holding gains (losses) arising during the period	585	(6,987)
Tax effect on unrealized holding (gains) losses arising during the period	(123)	1,467
Reclassification adjustment for gains included in net income (loss)	(1,403)	(5,636)
Tax effect on reclassification adjustment for gains included in net income (loss)	295	1,184
Other comprehensive loss, net of tax	(612)	(9,945)
Ending Balance	(229)
Pension Liability [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(3,762)	(3,239)
Other comprehensive (loss) income:
Change in net actuarial gain	43	34
Tax effect on change in net actuarial gain	(9)	(7)
Other comprehensive loss, net of tax	34	27
Ending Balance	(3,728)	(3,212)
Unrealized Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	4,145	3,927
Other comprehensive (loss) income:
Unrealized holding gains (losses) arising during the period	585	(6,987)
Tax effect on unrealized holding (gains) losses arising during the period	(123)	1,467
Reclassification adjustment for gains included in net income (loss)	(1,403)	(5,636)
Tax effect on reclassification adjustment for gains included in net income (loss)	295	1,184
Other comprehensive loss, net of tax	(646)	(9,972)
Ending Balance	3,499	(6,045)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	383	688
Other comprehensive (loss) income:
Change in net actuarial gain	43	34
Tax effect on change in net actuarial gain	(9)	(7)
Unrealized holding gains (losses) arising during the period	585	(6,987)
Tax effect on unrealized holding (gains) losses arising during the period	(123)	1,467
Reclassification adjustment for gains included in net income (loss)	(1,403)	(5,636)
Tax effect on reclassification adjustment for gains included in net income (loss)	295	1,184
Other comprehensive loss, net of tax	(612)	(9,945)
Ending Balance	$ (229)	$ (9,257)

Leases (Narrative) (Details)

Leases (Narrative) (Details)	3 Months Ended
	Mar. 31, 2021
Lessee, Lease, Description [Line Items]
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
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating lease cost	$ 719	$ 790
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases	545	436
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0	$ 0

Leases (Component of Lease and

Leases (Component of Lease and Other Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease right-of-use assets	$ 13,666	$ 13,986
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Operating lease liabilities	$ 15,547	$ 15,862
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued Liabilities
Weighted-average remaining lease term - operating leases	10 years	10 years 2 months 12 days
Weighted-average discount rate - operating leases	5.87%	5.88%
Short-term lease payments	$ 100

Leases (Maturities) (Details)

Leases (Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Future minimum lease payments under non-cancellable leases:
2021	$ 1,626	$ 2,172
2022	2,171	2,171
2023	1,885	1,885
2024	1,941	1,941
2025	1,975	1,975
Thereafter	11,350	11,350
Total future minimum lease payments	20,948	21,494
Less imputed interest	(5,401)	(5,632)
Total operating lease liability	$ 15,547	$ 15,862