Navigators (NAVG) 8-K Navigators Reports Second Quarter Earnings

Exhibit 99.1

The Navigators Group, Inc.
CORPORATE NEWS

Navigators Reports Second Quarter Earnings

New York — August 4, 2010 — The Navigators Group, Inc. (NASDAQ:NAVG)reported net income of $19.0 million, or $1.16 per diluted share, for the three months ended June 30, 2010 compared to net income of $23.7 million, or $1.39 per diluted share, for the comparable period in 2009. Operating earnings⁽¹⁾ were $11.9 million, or $0.73 per diluted share for the second quarter of 2010 compared to $22.3 million, or $1.31 per diluted share, for the comparable period in 2009.

For the six months ended June 30, 2010, the Company reported net income of $36.0 million, or $2.16 per diluted share, compared to $35.7 million, or $2.10 per diluted share, for the comparable period in 2009. Operating earningswere $25.0 million, or $1.50 per diluted share for the six months ended June 30, 2010 compared to $42.5 million, or $2.50 per diluted share, for the comparable period of 2009.

Gross written premiums and net written premiums for the three months ended June 30, 2010 were $253.6 million and $165.0 million, respectively, a decrease of 7.0% and 9.8% from the comparable 2009 periods. Gross written premiums and net written premiums for the six months ended June 30, 2010 were $523.7 million and $354.3 million, respectively, a decrease of 4.4% and 7.6% from the comparable 2009 periods. During the second quarter of 2010, Navigators recorded $7.9 million of reinstatement costs related to large loss events, primarily the April 2010 Deepwater Horizon loss event in the Gulf of Mexico, which reduced net written and net earned premiums.

The combined loss and expense ratio for the three and six months ended June 30, 2010 were 99.7% and 99.4%, respectively, compared to 92.9% and 92.8% for the comparable 2009 periods. The combined loss and expense ratio for the three months ended June 30, 2010 was favorably impacted by 3.3 loss ratio points due to favorable development in prior period loss reserves. The combined loss and expense ratio for the six months ended June 30, 2010 was favorably impacted by 2.0 loss ratio points due to favorable development in prior period loss reserves.

Navigators’ Chief Executive Officer Stan Galanski commented “Despite challenging economic and competitive conditions, we were able to produce an underwriting profit and grow book value per share to a record high of $51.48. We continue to emphasize underwriting quality and pricing discipline, coupled with conservative investment and capital management. From an underwriting standpoint, while written premium was down, we are pleased with the continued development of our recent underwriting initiatives. While most product lines continue to experience low single digit rate reductions, we are encouraged by improved trading conditions in the offshore energy market and in marine and energy liability. From a financial standpoint, we sold virtually all of our general obligation municipal bonds during the quarter, realizing $10.4 million of investment gains, which we believe strengthens the quality of our overall investment portfolio.”

6 International Drive	Rye Brook, NY 10573
TEL (914) 933-6000	FAX (914) 934-2355

News Release
August 4, 2010
Page 2

During the three and six months ended June 30, 2010, the Company repurchased 558,003 and 1,131,603 shares of its common stock for an aggregate purchase price of $22.5 million and $46.2 million, respectively, pursuant to its share repurchase program. The Company repurchased an additional 62,114 shares of its common stock for an aggregate purchase price of $2.6 million from July 1, 2010 through August 3, 2010 pursuant to its share repurchase program.

Net investment income for the three and six months ended June 30, 2010 was $17.9 million and $35.8 million, respectively, which were decreases of 4.3% and 4.2% from the comparable 2009 periods. The annualized pre-tax investment yield, excluding net realized gains and lossesand net other-than-temporary impairment losses recognized in earnings, was 3.6% and 3.5% for the three and six months ended June 30, 2010, respectively, compared to 3.8% and 3.9% for the comparable 2009 periods. The effective tax rate on net investment income was 27.2% and 25.9% for the three and six months ended June 30, 2010, respectively, compared to 25.2% and 25.1% for the comparable 2009 periods.

The Company’s investment portfolio mainly consists of fixed income securities with an average quality rating of “AA/Aa” as defined by Standard & Poor’s and Moody’s, respectively, and an average effective duration of 4.0 years at June 30, 2010. At June 30, 2010, net unrealized gains within our investment portfolio were $75.5 million, an increase of $21.6 million compared to December 31, 2009. There were $11.0 million and $17.1 million of net realized gains for the three and six months ended June 30, 2010.

In April 2009, the Company repurchased $10.0 million aggregate principal amount of its issued and outstanding 7% Senior notes from an unaffiliated noteholder on the open market for $7.0 million, which generated a $2.9 million pre-tax gain that is reflected in Other income (loss) and added $0.11 to the second quarter 2009 earnings per share.

Consolidated cash flow from operations for the three and six months ended June 30, 2010 was $60.2 million and $64.4 million, respectively, compared to $26.6 million and $69.5 million for the comparable 2009 period.

Stockholders’ equity was $814.7 million, or $51.48 per share, at June 30, 2010 compared to $801.5 million, or $47.58 per share, at December 31, 2009. The statutory surplus of Navigators Insurance Company was $654.8 million at June 30, 2010 compared to $645.8 million at December 31, 2009.

(1) Operating earnings, or net income excluding after-tax net realized gains (losses) and net other-than-temporary impairment losses recognized in earnings, is a non-GAAP financial measure that is a common performance measurement for insurance companies. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.

The Company will hold a conference call on Thursday, August 5, 2010 starting at 8:30 a.m. ET to discuss the 2010 second quarter results. The call will be available via live webcast on Navigators’ website (www.navg.com) by clicking on the Earnings Webcast link under “News & Events”.

To participate by telephone, the domestic dial-in number is (888) 713-4211 and the international dial-in is (617) 213-4864. The access code is 35424449. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PBAANTWE8. Pre-registrants will be issued a pin number to use when dialing into the live call that will provide quick access by bypassing the operator upon connection.

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August 4, 2010
Page 3

The Navigators Group, Inc. is an international specialty insurance holding company with insurance company operations, underwriting management companies, and operations at Lloyd’s of London. Headquartered in New York, Navigators has offices in major insurance centers in the United States, the United Kingdom and Continental Europe.

This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Whenever used in this release, the words “estimate”, “expect”, “believe” or similar expressions are intended to identify such forward-looking statements. Forward-looking statements are derived from information that we currently have and assumptions that we make. We cannot assure that results that we anticipate will be achieved, since results may differ materially because of known and unknown risks and uncertainties that we face. Please refer to Navigators’ most recent reports on Forms 10-K and 10-Q and its other filings with the Securities and Exchange Commission for a description of Navigators’ business and the important factors that may affect that business. Navigators undertakes no obligation to publicly update or revise any forward-looking statement.

Contact:	Francis W. McDonnell
	Senior Vice President and Chief Financial Officer
	(914) 933-6270
	fmcdonnell@navg.com
	www.navg.com

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Financial Highlights
($ in thousands, except per share data)
(unaudited)

	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2010			2009			Change			2010			2009			Change
Results of Operations
Gross written premiums	$	253,568		$	272,729			-7	%	$	523,713		$	547,988			-4	%
Net written premiums		165,005			183,007			-10	%		354,322			383,659			-8	%
Revenues:
Net earned premiums		161,471			169,868			-5	%		325,540			334,814			-3	%
Investment income		17,853			18,656			-4	%		35,825			37,399			-4	%
Total other-than-temporary impairment losses		(489	)		(1,876	)		-74	%		(740	)		(28,747	)		-97	%
Portion of loss recognized in other comprehensive income (before tax)		334			1,407			-76	%		504			17,578			-97	%
Net other-than-temporary impairment losses recognized in earnings		(155	)		(469	)		-67	%		(236	)		(11,169	)		-98	%
Net realized gains		11,020			2,596			325	%		17,133			1,059		NM
Other income (expense)		(899	)		5,302		NM				171			5,445		NM
Total revenues		189,290			195,953			-3	%		378,433			367,548			3	%
Expenses:
Net losses and loss adjustment expenses		99,863			100,728			-1	%		203,670			200,975			1	%
Commission expenses		25,677			26,278			-2	%		50,993			48,726			5	%
Other operating expenses		34,513			33,019			5	%		69,099			63,554			9	%
Interest expense		2,044			2,150			-5	%		4,088			4,369			-6	%
Total expenses		162,097			162,175			0	%		327,850			317,624			3	%
Income before income taxes		27,193			33,778			-19	%		50,583			49,924			1	%
Income tax expense		8,223			10,128			-19	%		14,568			14,274			2	%
Net income	$	18,970		$	23,650			-20	%	$	36,015		$	35,650			1	%
Per Share Data
Net income per common share:
Basic	$	1.18		$	1.40			-16	%	$	2.20		$	2.11			4	%
Diluted	$	1.16		$	1.39			-17	%	$	2.16		$	2.10			3	%
Average shares outstanding:
Basic		16,100			16,938						16,369			16,910
Diluted		16,422			16,993						16,686			17,010
Underwriting Ratios
Loss Ratio		61.8	%		59.3	%					62.6	%		60.0	%
Expense Ratio		37.9	%		33.6	%					36.8	%		32.8	%
Combined Ratio		99.7	%		92.9	%					99.4	%		92.8	%

	June 30,		Mar. 31,				June 30,		Dec. 31,
	2010		2010				2010		2009
Balance Sheet Data
Stockholders’ equity	$	814,743	$	810,044	1	%	$	814,743	$	801,519	2	%
Book value per share	$	51.48	$	49.47	4	%	$	51.48	$	47.58	8	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($ in thousands, except share data)

	June 30,			December 31,
	2010			2009
	(unaudited)
ASSETS
Investments and cash:
Fixed maturities, available-for-sale, at fair value (amortized cost: 2010, $1,795,021; 2009, $1,777,983)	$	1,860,628		$	1,816,669
Equity securities, available-for-sale, at fair value (cost: 2010, $62,975; 2009, $47,376)		72,862			62,610
Short-term investments, at cost which approximates fair value		164,827			176,799
Cash		11,941			509
Total investments and cash		2,110,258			2,056,587
Premiums receivable		221,166			193,460
Prepaid reinsurance premiums		161,356			162,344
Reinsurance recoverable on paid losses		52,593			76,505
Reinsurance recoverable on unpaid losses and loss adjustment expenses		800,378			807,352
Deferred policy acquisition costs		61,929			56,575
Accrued investment income		15,337			17,438
Goodwill and other intangible assets		6,717			7,057
Current income tax receivable, net		12,517			4,854
Deferred income tax, net		11,221			31,222
Other assets		26,783			40,600
Total assets	$	3,480,255		$	3,453,994
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserves for losses and loss adjustment expenses	$	1,919,352		$	1,920,286
Unearned premiums		501,172			475,171
Reinsurance balances payable		93,723			98,555
Senior notes		114,073			114,010
Accounts payable and other liabilities		37,192			44,453
Total liabilities		2,665,512			2,652,475
Stockholders’ equity:
Preferred stock, $.10 par value, authorized 1,000,000 shares, none issued		—			—
Common stock, $.10 par value, authorized 50,000,000 shares, issued 17,237,242 shares for 2010 and 17,212,814 shares for 2009		1,724			1,721
Additional paid-in capital		308,549			304,505
Retained earnings		505,949			469,934
Treasury stock, at cost (1,411,845 for 2010 and 366,330 shares for 2009)		(59,788	)		(18,296	)
Accumulated other comprehensive income		58,309			43,655
Total stockholders’ equity		814,743			801,519
Total liabilities and stockholders’ equity	$	3,480,255		$	3,453,994

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Comparative Premium Data
($ in thousands)

	Three Months							Six Months
	2010		2009		Change			2010		2009		Change
Gross Written Premiums:
Insurance Companies:
Marine	$	55,204	$	57,086		-3	%	$	122,730	$	134,323		-9	%
Property Casualty		81,797		94,567		-14	%		161,143		178,825		-10	%
Professional Liability		33,640		37,732		-11	%		64,606		68,220		-5	%
		170,641		189,385		-10	%		348,479		381,368		-9	%
Lloyd’s Operations:
Marine		41,829		47,273		-12	%		100,970		106,296		-5	%
Property Casualty		29,122		25,506		14	%		49,081		39,034		26	%
Professional Liability		11,976		10,565		13	%		25,183		21,290		18	%
		82,927		83,344		-1	%		175,234		166,620		5	%
Total	$	253,568	$	272,729		-7	%	$	523,713	$	547,988		-4	%

	Three Months							Six Months
	2010		2009		Change			2010		2009		Change
Net Written Premiums:
Insurance Companies:
Marine	$	37,153	$	34,956		6	%	$	88,156		93,415		-6	%
Property Casualty		54,300		65,704		-17	%		103,997		125,680		-17	%
Professional Liability		19,948		21,699		-8	%		40,588		40,346		1	%
		111,401		122,359		-9	%		232,741		259,441		-10	%
Lloyd’s Operations:
Marine		34,421		40,077		-14	%		84,063		90,051		-7	%
Property Casualty		13,924		15,070		-8	%		25,635		22,665		13	%
Professional Liability		5,259		5,501		-4	%		11,883		11,502		3	%
		53,604		60,648		-12	%		121,581		124,218		-2	%
Total	$	165,005	$	183,007		-10	%	$	354,322	$	383,659		-8	%

	Three Months							Six Months
	2010		2009		Change			2010		2009		Change
Net Earned Premiums:
Insurance Companies:
Marine	$	40,554	$	34,678		17	%	$	81,648		71,839		14	%
Property Casualty		50,171		63,068		-20	%		101,252		128,480		-21	%
Professional Liability		19,700		18,477		7	%		38,736		36,194		7	%
		110,425		116,223		-5	%		221,636		236,513		-6	%
Lloyd’s Operations:
Marine		34,727		37,038		-6	%		70,287		68,213		3	%
Property Casualty		10,763		11,201		-4	%		22,678		19,124		19	%
Professional Liability		5,556		5,406		3	%		10,939		10,964		0	%
		51,046		53,645		-5	%		103,904		98,301		6	%
Total	$	161,471	$	169,868		-5	%	$	325,540	$	334,814		-3	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
June 30, 2010
($ in thousands)

	Insurance			Lloyd's
	Companies			Operations			Corporate			Total
Gross written premiums	$	170,641		$	82,927		$	—		$	253,568
Net written premiums		111,401			53,604			—			165,005
Net earned premiums		110,425			51,046			—			161,471
Net losses and loss adjustment expenses		(64,862	)		(35,001	)		—			(99,863	)
Commission expenses		(14,615	)		(11,402	)		340			(25,677	)
Other operating expenses		(25,907	)		(8,617	)		—			(34,524	)
Other income (expense)		(114	)		(434	)		(340	)		(888	)
Underwriting profit (loss)		4,927			(4,408	)		—			519
Investment income		15,556			2,128			169			17,853
Net realized gains (losses)		10,729			19			117			10,865
Other operating expenses		—			—			11			11
Other income (expense)		—			—			(11	)		(11	)
Interest expense		—			—			(2,044	)		(2,044	)
Income (loss) before income tax expense (benefit)		31,212			(2,261	)		(1,758	)		27,193
Income tax expense (benefit)		9,654			(815	)		(616	)		8,223
Net income (loss)	$	21,558		$	(1,446	)	$	(1,142	)	$	18,970
Loss and loss expenses ratio		58.7	%		68.6	%					61.8	%
Commission expense ratio		13.2	%		22.3	%					15.9	%
Other operating expenses ratio (1)		23.6	%		17.7	%					22.0	%
Combined ratio		95.5	%		108.6	%					99.7	%

(1) The Other operating expenses ratio includes Other income (expense).

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
June 30, 2009

($ in thousands)

	Insurance			Lloyd's
	Companies			Operations			Corporate			Total
Gross written premiums	$	189,385		$	83,344		$	—		$	272,729
Net written premiums		122,359			60,648			—			183,007
Net earned premiums		116,223			53,645			—			169,868
Net losses and loss adjustment expenses		(68,843	)		(31,885	)		—			(100,728	)
Commission expenses		(15,060	)		(11,218	)		—			(26,278	)
Other operating expenses		(26,906	)		(6,117	)		4			(33,019	)
Other income (expense)		1,655			651			(4	)		2,302
Underwriting profit		7,069			5,076			—			12,145
Investment income		16,239			2,316			101			18,656
Net realized gains (losses)		2,210			(83	)		—			2,127
Other income (expense)		—			—			3,000			3,000
Interest expense		—			—			(2,150	)		(2,150	)
Income (loss) before income tax expense (benefit)		25,518			7,309			951			33,778
Income tax expense (benefit)		7,171			2,624			333			10,128
Net income (loss)	$	18,347		$	4,685		$	618		$	23,650
Loss and loss expenses ratio		59.2	%		59.4	%					59.3	%
Commission expense ratio		13.0	%		20.9	%					15.5	%
Other operating expenses ratio (1)		21.7	%		10.2	%					18.1	%
Combined ratio		93.9	%		90.5	%					92.9	%

(1) The Other operating expenses ratio includes Other income (expense).

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Six Months Ended
June 30, 2010

($ in thousands)

	Insurance			Lloyd's
	Companies			Operations			Corporate			Total
Gross written premiums	$	348,479		$	175,234		$	—		$	523,713
Net written premiums		232,741			121,581			—			354,322
Net earned premiums		221,636			103,904			—			325,540
Net losses and loss adjustment expenses		(133,265	)		(70,405	)		—			(203,670	)
Commission expenses		(28,977	)		(22,368	)		352			(50,993	)
Other operating expenses		(53,260	)		(15,860	)		—			(69,120	)
Other income (expense)		(1,091	)		1,635			(352	)		192
Underwriting profit (loss)		5,043			(3,094	)		—			1,949
Investment income		31,304			4,197			324			35,825
Net realized gains (losses)		15,934			732			231			16,897
Other operating expenses		—			—			21			21
Other income (expense)		—			—			(21	)		(21	)
Interest expense		—			—			(4,088	)		(4,088	)
Income (loss) before income tax expense (benefit)		52,281			1,835			(3,533	)		50,583
Income tax expense (benefit)		15,117			688			(1,237	)		14,568
Net income (loss)	$	37,164		$	1,147		$	(2,296	)	$	36,015
Loss and loss expenses ratio		60.1	%		67.8	%					62.6	%
Commission expense ratio		13.1	%		21.5	%					15.7	%
Other operating expenses ratio (1)		24.5	%		13.7	%					21.1	%
Combined ratio		97.7	%		103.0	%					99.4	%

(1) The Other operating expenses ratio includes Other income (expense).

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Six Months Ended
June 30, 2009

($ in thousands)

	Insurance			Lloyd's
	Companies			Operations			Corporate				Total
Gross written premiums	$	381,368		$	166,620		$	—			$	547,988
Net written premiums		259,441			124,218			—				383,659
Net earned premiums		236,513			98,301			—				334,814
Net losses and loss adjustment expenses		(138,996	)		(61,979	)		—				(200,975	)
Commission expenses		(30,028	)		(18,698	)		—				(48,726	)
Other operating expenses		(51,466	)		(12,098	)		10				(63,554	)
Other income (expense)		1,856			599			(10	)			2,445
Underwriting profit		17,879			6,125			—				24,004
Investment income		32,446			4,699			254				37,399
Net realized gains (losses)		(6,697	)		(3,413	)		—				(10,110	)
Other income (expense)		—			—			3,000				3,000
Interest expense		—			—			(4,369	)			(4,369	)
Income (loss) before income tax expense (benefit)		43,628			7,411			(1,115	)			49,924
Income tax expense (benefit)		11,704			2,960			(390	)			14,274
Net income (loss)	$	31,924		$	4,451		$	(725	)	��	$	35,650
Loss and loss expenses ratio		58.8	%		63.0	%						60.0	%
Commission expense ratio		12.7	%		19.0	%						14.6	%
Other operating expenses ratio (1)		21.0	%		11.7	%						18.2	%
Combined ratio		92.5	%		93.7	%						92.8	%

(1) The Other operating expenses ratio includes other income (expense).

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Underwriting Results
($ in thousands)

	Three Months Ended June 30, 2010
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Combined Ratio
	Premiums		Incurred		Expenses		Gain(Loss)			Loss			Expense			Total
Insurance Companies:
Marine	$	40,554	$	25,521	$	14,171	$	862			62.9	%		35.0	%		97.9	%
Property Casualty		50,171		24,936		19,192		6,043			49.7	%		38.3	%		88.0	%
Professional Liability		19,700		14,405		7,273		(1,978	)		73.1	%		36.9	%		110.0	%
		110,425		64,862		40,636		4,927			58.7	%		36.8	%		95.5	%
Lloyd’s Operations		51,046		35,001		20,453		(4,408	)		68.6	%		40.0	%		108.6	%
Total	$	161,471	$	99,863	$	61,089	$	519			61.8	%		37.9	%		99.7	%

	Three Months Ended June 30, 2009
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Combined Ratio
	Premiums		Incurred		Expenses		Gain(Loss)			Loss			Expense			Total
Insurance Companies:
Marine	$	34,678	$	25,238	$	10,572	$	(1,132	)		72.8	%		30.5	%		103.3	%
Property Casualty		63,068		28,446		23,559		11,063			45.1	%		37.4	%		82.5	%
Professional Liability		18,477		15,159		6,180		(2,862	)		82.0	%		33.4	%		115.4	%
		116,223		68,843		40,311		7,069			59.2	%		34.7	%		93.9	%
Lloyd’s Operations		53,645		31,885		16,684		5,076			59.4	%		31.1	%		90.5	%
Total	$	169,868	$	100,728	$	56,995	$	12,145			59.3	%		33.6	%		92.9	%

	Amounts					Loss Ratio
	June 30,			June 30,		June 30,			June 30,
	2010			2009		2010			2009
Net Incurred Loss Activity For the Three Months Ended:
Insurance Companies:
Loss and LAE payments	$	68,098		$	53,262		61.7	%		45.8	%
Change in reserves		(3,236	)		15,581		-3.0	%		13.4	%
Net incurred loss and LAE		64,862			68,843		58.7	%		59.2	%
Lloyd’s Operations:
Loss and LAE payments		30,637			8,491		60.0	%		15.8	%
Change in reserves		4,364			23,394		8.6	%		43.6	%
Net incurred loss and LAE		35,001			31,885		68.6	%		59.4	%
Total
Loss and LAE payments		98,735			61,753		61.1	%		36.4	%
Change in reserves		1,128			38,975		0.7	%		22.9	%
Net incurred loss and LAE	$	99,863		$	100,728		61.8	%		59.3	%

	Amounts				Loss Ratio Impact
	June 30,		June 30,		June 30,			June 30,
	2010		2009		2010			2009
Impact of Prior Years Reserves Favorable / (Unfavorable) Development For the Three Months Ended:
Insurance Companies	$	4,844	$	4,890		4.4	%		4.2	%
Lloyd’s Operations		406		4,588		0.8	%		8.6	%
Total	$	5,250	$	9,478		3.3	%		5.6	%

News Release
Page 12

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Underwriting Results
($ in thousands)

	Six Months Ended June 30, 2010
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Combined Ratio
	Premiums		Incurred		Expenses		Gain(Loss)			Loss			Expense			Total
Insurance Companies:
Marine	$	81,648	$	51,654	$	29,099	$	895			63.3	%		35.6	%		98.9	%
Property Casualty		101,252		57,062		39,508		4,682			56.4	%		39.0	%		95.4	%
Professional Liability		38,736		24,549		14,721		(534	)		63.4	%		38.0	%		101.4	%
		221,636		133,265		83,328		5,043			60.1	%		37.6	%		97.7	%
Lloyd’s Operations		103,904		70,405		36,593		(3,094	)		67.8	%		35.2	%		103.0	%
Total	$	325,540	$	203,670	$	119,921	$	1,949			62.6	%		36.8	%		99.4	%

	Six Months Ended June 30, 2009
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Combined Ratio
	Premiums		Incurred		Expenses		Gain(Loss)			Loss			Expense			Total
Insurance Companies:
Marine	$	71,839	$	51,628	$	22,194	$	(1,983	)		71.9	%		30.9	%		102.8	%
Property Casualty		128,480		56,450		44,312		27,718			43.9	%		34.5	%		78.4	%
Professional Liability		36,194		30,918		13,132		(7,856	)		85.4	%		36.3	%		121.7	%
		236,513		138,996		79,638		17,879			58.8	%		33.7	%		92.5	%
Lloyd’s Operations		98,301		61,979		30,197		6,125			63.0	%		30.7	%		93.7	%
Total	$	334,814	$	200,975	$	109,835	$	24,004			60.0	%		32.8	%		92.8	%

	Amounts					Loss Ratio
	June 30,			June 30,		June 30,			June 30,
	2010			2009		2010			2009
Net Incurred Loss Activity For the Six Months Ended:
Insurance Companies:
Loss and LAE payments	$	140,771		$	102,066		63.5	%		43.2	%
Change in reserves		(7,506	)		36,930		-3.4	%		15.6	%
Net incurred loss and LAE		133,265			138,996		60.1	%		58.8	%
Lloyd’s Operations:
Loss and LAE payments		56,859			31,613		54.8	%		32.1	%
Change in reserves		13,546			30,366		13.0	%		30.9	%
Net incurred loss and LAE		70,405			61,979		67.8	%		63.0	%
Total
Loss and LAE payments		197,630			133,679		60.7	%		39.9	%
Change in reserves		6,040			67,296		1.9	%		20.1	%
Net incurred loss and LAE	$	203,670		$	200,975		62.6	%		60.0	%

	Amounts				Loss Ratio Impact
	June 30,		June 30,		June 30,			June 30,
	2010		2009		2010			2009
Impact of Prior Years Reserves Favorable / (Unfavorable) Development For the Six Months Ended:
Insurance Companies	$	5,497	$	10,022		2.5	%		4.2	%
Lloyd’s Operations		999		5,223		1.0	%		5.3	%
Total	$	6,496	$	15,245		2.0	%		4.6	%

News Release
Page 13

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Loss Data
($ in thousands)

	Case		IBNR
	Reserves		Reserves		Total
Net Loss Reserves, June 30, 2010:
Insurance Companies:
Marine	$	111,760	$	96,925	$	208,685
Property Casualty		145,609		339,370		484,979
Professional Liability		42,193		63,912		106,105
Total Insurance Companies		299,562		500,207		799,769
Lloyd’s Operations:
Marine		111,957		107,213		219,170
Property Casualty		25,561		27,293		52,854
Professional Liability		9,913		37,268		47,181
Total Lloyd’s Operations		147,431		171,774		319,205
Total Net Loss Reserves	$	446,993	$	671,981	$	1,118,974

	Case		IBNR
	Reserves		Reserves		Total
Net Loss Reserves, December 31, 2009:
Insurance Companies:
Marine	$	113,604	$	100,042	$	213,646
Property Casualty		134,427		351,985		486,412
Professional Liability		38,410		68,807		107,217
Total Insurance Companies		286,441		520,834		807,275
Lloyd’s Operations:
Marine		107,800		101,851		209,651
Property Casualty		27,148		25,175		52,323
Professional Liability		7,442		36,243		43,685
Total Lloyd’s Operations		142,390		163,269		305,659
Total Net Loss Reserves	$	428,831	$	684,103	$	1,112,934

News Release
Page 14

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Investment Data
June 30, 2010
($ in thousands)

At June 30, 2010, the average quality of the investment portfolio as rated by S&P and Moody’s was AA/Aa with an average duration of 4.0 years. The Company does not own any collateralized debt obligations (CDO’s), collateralized loan obligations (CLO’s) or asset backed commercial paper.

At June 30, 2010, the Company owned two asset-backed securities approximating $0.1 million with subprime mortgage exposures. The securities have an effective maturity of 2.9 years. In addition, the Company owned a total of five collateralized mortgage obligations and asset-backed securities approximating $1.5 million classified as Alt-A which is a credit category between prime and subprime. They have an effective maturity of 5.5 years. Such subprime and Alt-A categories are as defined by S&P. The Company is receiving principal and/or interest payments on all these securities and believes such amounts are fully collectible.

The following table sets forth our cash and investments at June 30, 2010:

			Gross		Gross			Cost or		OTTI
	Fair		Unrealized		Unrealized			Amortized		Recognized
June 30, 2010	Value		Gains		(Losses)			Cost		in OCI
	($ in thousands)
Fixed maturities:
U.S. Government Treasury bonds, agency bonds and foreign government bonds	$	493,675	$	14,409	$	(2	)	$	479,268	$	—
States, municipalities and political subdivisions		406,757		17,332		(638	)		390,063		—
Mortgage- and asset-backed securities
Agency mortgage-backed securities		478,083		21,560		—			456,523		—
Residential mortgage obligations		29,727		—		(4,990	)		34,717		(3,852	)
Asset-backed securities		10,845		377		(9	)		10,477		(9	)
Commercial mortgage-backed securities		106,791		4,237		(242	)		102,796		—
Subtotal		625,446		26,174		(5,241	)		604,513		(3,861	)
Corporate bonds		334,750		15,537		(1,964	)		321,177
Total fixed maturities		1,860,628		73,452		(7,845	)		1,795,021		(3,861	)
Equity securities — common stocks		72,862		11,316		(1,429	)		62,975		—
Cash		11,941		—		—			11,941		—
Short-term investments		164,827		—		—			164,827		—
Total	$	2,110,258	$	84,768	$	(9,274	)	$	2,034,764	$	(3,861	)

News Release
Page 15

The Navigators Group, Inc. and Subsidiaries
Investment Data
June 30, 2010
($ in thousands)

The following three tables set forth our agency mortgage-backed securities, collateralizedresidential mortgage obligations, and asset-backed securities by those issued by GNMA, FNMA and FHLMC and the quality category (prime, Alt-A and subprime) for all other such investments at December June September 301, 200987June 30, 2010:

			Gross		Gross		Cost or
	Fair		Unrealized		Unrealized		Amortized
Agency mortgage-backed securities:	Value		Gains		(Losses)		Cost
GNMA	$	254,693	$	7,365	$	—	$	247,328
FNMA		156,380		10,534		—		145,846
FHLMC		67,010		3,661		—		63,349
Total	$	478,083	$	21,560	$	—	$	456,523

			Gross		Gross			Cost or
	Fair		Unrealized		Unrealized			Amortized
Residential mortgage obligations:	Value		Gains		(Losses)			Cost
Prime	$	28,268	$	—	$	(4,674	)	$	32,942
Alt-A		1,459		—		(316	)		1,775
Subprime		—		—		—			—
Total	$	29,727	$	—	$	(4,990	)	$	34,717

			Gross		Gross			Cost or
	Fair		Unrealized		Unrealized			Amortized
Asset-backed securities:	Value		Gains		(Losses)			Cost
Prime	$	10,701	$	377	$	—		$	10,324
Alt-A		—		—		—			—
Subprime		144		—		(9	)		153
Total	$	10,845	$	377	$	(9	)	$	10,477