June 25, 2019

Jeffrey R. Passmore
Chief Financial Officer
HALLMARK FINANCIAL SERVICES INC
777 Main Street
Suite 1000
Fort Worth, TX 76102

       Re: HALLMARK FINANCIAL SERVICES INC
           Form 10-K for the Fiscal Year Ended December 31, 2018
           Filed March 14, 2019
           File No. 001-11252

Dear Mr. Passmore:

      We have reviewed your filing and have the following comment. In our
comment, we
may ask you to provide us with information so we may better understand your
disclosure.

       Please respond to the comment within ten business days by providing the
requested
information or advise us as soon as possible when you will respond. If you do
not believe our
comment applies to your facts and circumstances, please tell us why in your
response.

       After reviewing your response to the comment, we may have additional
comments.

Form 10-K for the Year Ended December 31, 2018

Consolidated Financial Statements
Note 6. Reserves for Losses and Loss Adjustment Expenses, page F-23

1.    You disclose on page F-25 that you have evaluated the disaggregation
criteria of ASU
      2015-09 and concluded that the basis for your disaggregation of this
information required
      by ASC 944-40-50-4B and 4D is by each of your three reportable segments.
The
      descriptions of the various insurance business lines within each of your
three segments
      makes it seem likely that some of these business lines are likely to
experience different
      loss trends. Further, your disclosure of the trend information on pages
39 and F-24
      includes significant offsetting trends of favorable versus unfavorable
development
      which raises questions as to whether the level of aggregation is
appropriate. Please
      address the following:
        Tell us how you considered the guidance of ASC 944-40-50-4H when
determining to
          aggregate your short duration loss tables at the reportable segment
level, including the
 Jeffrey R. Passmore
HALLMARK FINANCIAL SERVICES INC
June 25, 2019
Page 2
             prohibition of aggregating items that have significantly different
characteristics.
             Specifically address how you considered the respective
characteristics of your contract
             binding business unit versus those of your specialty commercial
operating unit that are
             aggregated within your specialty commercial segment and determined
that they did
             not have significantly different characteristics. As part of your
response, provide us
             with a breakdown quantifying the net premiums, losses incurred,
loss development
             and ending reserve liabilities for the last two years by each of
these two business
             units. Also, provide us with the average annual percentage payout
of incurred claims
             of incurred loss and ALAE, that is the history of claims duration
by age, for each of
             these two business units.
             Further, within your specialty commercial operating unit, you have
aggregated various
             product lines including general aviation, satellite launch,
commercial umbrella and
             primary/excess liability, medical and financial professional
liability, and
             primary/excess commercial property insurance products. Tell us how
you determined
             that these lines do not have significantly different
characteristics. As part of your
             response, provide us with a breakdown quantifying the net
premiums, losses incurred,
             loss development and ending reserve liabilities for the last two
years by each of the
             product line categories within your specialty commercial operating
unit. Also, provide
             us with the average annual percentage payout of incurred claims of
incurred loss and
             ALAE, that is the history of claims duration by age, for each of
the product line
             categories within your specialty commercial operating unit.
        We remind you that the company and its management are responsible for
the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action
or absence of
action by the staff.

      You may contact Christine Torney at 202-551-3652 or Kevin Vaughn at
202-551-
3494 with any questions.



FirstName LastNameJeffrey R. Passmore     Sincerely,
Comapany NameHALLMARK FINANCIAL SERVICES INC
                                          Division of Corporation Finance
June 25, 2019 Page 2                      Office of Healthcare & Insurance
FirstName LastName