Mark E. Schwarz, Executive Chairman of Hallmark, stated, "Book value per share was $11.45 at the end of the year, an increase of 2% over prior year. Cash flow from operations was $5.5 million in the fourth quarter and $33.7 million for fiscal 2012, up from $24.6 million in the prior year. Total cash and investments increased 6% during fiscal 2012 to $539.2 million, or $27.99 per share."
Schwarz continued, "Despite holding a greater amount of fixed income securities during 2012, net investment income was nearly $0.6 million less than prior year due to a 70 basis point decline in tax equivalent book yield to 4.4%. Hallmark continues to carry significant cash of $93.9 million as of December 31, 2012, which we seek to opportunistically deploy in ways that will generate a higher return for shareholders in the future."
I remember the good old days when we used to make $7 to $8 million every quarter. Probably Hallmark's reserves are very conservatively invested as a hedge against more aggressive other holdings by Schwarz.