FORT WORTH, Texas, April 24 /PRNewswire-FirstCall/ -- Stockholders of Specialty Underwriters' Alliance, Inc. (Nasdaq: SUAI) should expect to receive by mail as early as today the following letter dated April 22, 2009 from Hallmark Financial Services, Inc. (Nasdaq: HALL). The letter has also been posted to http://www.suaitownhall.com.
ATTENTION SPECIALTY UNDERWRITERS' STOCKHOLDERS
VOTE FOR HALLMARK FINANCIAL'S THREE HIGHLY QUALIFIED, INDEPENDENT DIRECTOR NOMINEES
VOTE THE GOLD PROXY CARD TODAY!
April 22, 2009
Dear Fellow SUA Stockholders,
Hallmark Financial Services, Inc. ('Hallmark') is the second largest stockholder of Specialty Underwriters' Alliance, Inc. ('SUA' or the 'Company'), beneficially owning 9.9% of the Company's outstanding common stock. We are asking for your vote at the 2009 annual meeting of stockholders of SUA in order to elect our three highly qualified, independent director nominees: Robert M. Fishman, Mark E. Pape and C. Gregory Peters. Our nominees possess a wealth of property and casualty insurance industry expertise.
Directors That Are Truly Independent Need to Be in the SUA Board Room and in Sufficient Number
In its effort to discredit us, the Company has written to you that Hallmark's campaign represents some disguised effort by Hallmark to obtain control of the SUA Board. The fact is that THE CANDIDATES WE NOMINATED SET FORTH ON THE GOLD PROXY CARD ARE ENTIRELY INDEPENDENT OF HALLMARK and, if elected, will just like all directors have fiduciary responsibilities to act in the best interests of all stockholders. Our nominees would bring significant industry, financial and public company expertise, as well as a fresh perspective, to the current board. If elected, these nominees will represent less than a majority of the SUA Board (and 50% of the independent directors) but nevertheless we believe will have a sufficient presence TO MAKE A DIFFERENCE on the issues that matter to stockholders. In this light, it is our hope you will agree that simply adding one stockholder-nominated director to the current seven person board - the hollow gesture offered by the Company to Hallmark to avoid a shakeup of the status quo - is simply not acceptable.
Our Focus...and Their Hope
Hallmark's nominees are focused on the following critical issues that we believe currently face SUA, as further discussed in our proxy statement:
- We believe SUA is underperforming financially
- We believe SUA's strategic and business model is weak
- We believe SUA suffers from corporate governance deficiencies
- We believe SUA has not created stockholder value
Curiously, rather than addressing these critical financial, strategic and governance problems facing SUA, the Company appears to blame the economic environment alone for the Company's problems and low stock price. The Company stated in its letter to stockholders dated April 1, 2009 that 'the capital markets and general business activities have been severely impacted by the economic environment and credit crisis...[and that it believes] these events have adversely impacted our business and our current stock valuation.' The implication is that, as general business conditions improve, somehow things will get better for SUA and its stockholders.
