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

Exhibit 99.1

The Navigators Group, Inc.
CORPORATE NEWS

Navigators Reports Third Quarter Earnings

New York — November 4, 2010 — The Navigators Group, Inc. (NASDAQ:NAVG)reported net income of $16.2 million, or $1.00 per diluted share, for the three months ended September 30, 2010 compared to net income of $21.4 million, or $1.24 per diluted share, for the comparable period in 2009. Operating earnings⁽¹⁾ were $13.7 million, or $0.85 per diluted share for the third quarter of 2010 compared to $17.4 million, or $1.01 per diluted share, for the comparable period in 2009.

For the nine months ended September 30, 2010, the Company reported net income of $52.2 million, or $3.17 per diluted share, compared to $57.1 million, or $3.30 per diluted share, for the comparable period in 2009. Operating earningswere $38.8 million, or $2.35 per diluted share for the nine months ended September 30, 2010 compared to $59.9 million, or $3.46 per diluted share, for the comparable period of 2009.

Gross written premiums and net written premiums for the three months ended September 30, 2010 were $233.6 million and $157.8 million, respectively, a decrease of 4.7% and increase of 1.2% from the comparable 2009 periods. Gross written premiums and net written premiums for the nine months ended September 30, 2010 were $757.4 million and $512.1 million, respectively, a decrease of 4.5% and 5.1% from the comparable 2009 periods.

The combined loss and expense ratios for the three and nine months ended September 30, 2010 were 97.8% and 98.9%, respectively, compared to 95.9% and 93.9% for the comparable 2009 periods. The combined loss and expense ratio for the three months ended September 30, 2010 was favorably impacted by 2.5 loss ratio points due to favorable development in prior period loss reserves. The combined loss and expense ratio for the nine months ended September 30, 2010 was favorably impacted by 2.2 loss ratio points due to favorable development in prior period loss reserves.

Navigators’ Chief Executive Officer Stan Galanski commented, “Despite the weak economy and challenging insurance market conditions, Navigators achieved an underwriting profit and grew book value per share 5.2% during the third quarter. Our Nav Tech unit had a superb quarter, with premium growth of 38%. We are well positioned to take advantage of opportunities in the energy and power generation markets.

The underwriting teams hired over the last two years are gaining traction. As part of our longer-term growth plans, we continue to look for opportunities to enhance our existing capabilities as evidenced by the recent launches of iTrade and Navigators Re.”

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

News Release
November 4, 2010
Page 2

During the three and nine months ended September 30, 2010, the Company repurchased 97,115 and 1,228,718 shares of its common stock for an aggregate purchase price of $4.1 million and $50.3 million, respectively, pursuant to its share repurchase program. The Company repurchased an additional 1,500 shares of its common stock for an aggregate purchase price of approximately sixty four thousand dollars from October 1, 2010 through November 3, 2010 pursuant to its share repurchase program. Approximately $42.9 million remains available under the Company’s current share repurchase program that expires on December 31, 2010.

Net investment income for the three and nine months ended September 30, 2010 was $17.8 million and $53.7 million, respectively, which were decreases of 6.7% and 5.0% 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 3.4% and 3.5% for the three and nine months ended September 30, 2010, respectively, compared to 3.8% for both 2009 comparable periods. The effective tax rate on net investment income was 28.4% and 26.7% for the three and nine months ended September 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 4.1 years at September 30, 2010. At September 30, 2010, net unrealized gains within our investment portfolio were $112.4 million, an increase of $58.5 million compared to December 31, 2009. There were $3.9 million and $20.8 million of net realized gains for the three and nine months ended September 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 nine months ended September 30, 2010 was $49.8 million and $114.1 million, respectively, compared to $35.7 million and $105.2 million for the comparable 2009 periods.

Stockholders’ equity was $854.0 million, or $54.17 per share, at September 30, 2010 compared to $801.5 million, or $47.58 per share, at December 31, 2009. The statutory surplus of Navigators Insurance Company was $663.1 million at September 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 Friday, November 5, 2010 starting at 8:30 a.m. ET to discuss the 2010 third 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”.

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November 4, 2010
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To participate by telephone, the domestic dial-in number is (866) 543-6411 and the international dial-in is (617) 213-8900. The access code is 47887560. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PMLTM8EQD. 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.

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									Nine Months Ended
	September 30,									September 30,
Results of Operations	2010			2009			Change			2010			2009			Change
Gross written premiums	$	233,638		$	245,191			-5	%	$	757,351		$	793,179			-5	%
Net written premiums		157,807			156,001			1	%		512,129			539,660			-5	%
Revenues:
Net earned premiums		168,233			171,271			-2	%		493,773			506,085			-2	%
Investment income		17,839			19,110			-7	%		53,664			56,509			-5	%
Total other-than-temporary impairment losses		(1,034	)		(22	)	NM				(1,774	)		(28,769	)		-94	%
Portion of loss recognized in other comprehensive income (before tax)		365			(525	)	NM				870			17,053			-95	%
Net other-than-temporary impairment losses recognized in earnings		(669	)		(547	)		22	%		(904	)		(11,716	)		-92	%
Net realized gains		4,521			6,682			-32	%		21,653			7,741			180	%
Other income (expense)		2,767			1,241			123	%		2,938			6,686			-56	%
Total revenues		192,691			197,757			-3	%		571,124			565,305			1	%
Expenses:
Net losses and loss adjustment expenses		107,463			107,591			0	%		311,133			308,566			1	%
Commission expenses		25,185			22,852			10	%		76,178			71,578			6	%
Other operating expenses		34,682			35,018			-1	%		103,781			98,572			5	%
Interest expense		2,045			2,042			0	%		6,133			6,411			-4	%
Total expenses		169,375			167,503			1	%		497,225			485,127			2	%
Income before income taxes		23,316			30,254			-23	%		73,899			80,178			-8	%
Income tax expense		7,091			8,822			-20	%		21,659			23,096			-6	%
Net income	$	16,225		$	21,432			-24	%	$	52,240		$	57,082			-8	%
Per Share Data
Net income per common share:
Basic	$	1.03		$	1.26			-19	%	$	3.23		$	3.37			-4	%
Diluted	$	1.00		$	1.24			-19	%	$	3.17		$	3.30			-4	%
Average shares outstanding:
Basic		15,780			16,966						16,170			16,929
Diluted		16,149			17,334						16,503			17,277
Underwriting Ratios
Loss Ratio		63.9	%		62.8	%					63.0	%		61.0	%
Expense Ratio		33.9	%		33.1	%					35.9	%		32.9	%
Combined Ratio		97.8	%		95.9	%					98.9	%		93.9	%
	Sept. 30,			June 30,						Sept. 30,			Dec. 31,
Balance Sheet Data	2010			2010						2010			2009
Stockholders’ equity	$	854,013		$	814,743			5	%	$	854,013		$	801,519			7	%
Book value per share	$	54.17		$	51.48			5	%	$	54.17		$	47.58			14	%

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

	September 30,			December 31,
	2010			2009
	(unaudited)
ASSETS
Investments and cash:
Fixed maturities, available-for-sale, at fair value (amortized cost: 2010, $1,727,551; 2009, $1,777,983)	$	1,820,493		$	1,816,669
Equity securities, available-for-sale, at fair value (cost: 2010, $66,986; 2009, $47,376)		86,447			62,610
Short-term investments, at cost which approximates fair value		260,564			176,799
Cash		31,073			509
Total investments and cash		2,198,577			2,056,587
Premiums receivable		204,180			193,460
Prepaid reinsurance premiums		156,047			162,344
Reinsurance recoverable on paid losses		60,889			76,505
Reinsurance recoverable on unpaid losses and loss adjustment expenses		787,795			807,352
Deferred policy acquisition costs		60,304			56,575
Accrued investment income		15,533			17,438
Goodwill and other intangible assets		6,935			7,057
Current income tax receivable, net		4,773			4,854
Deferred income tax, net		—			31,222
Other assets		25,960			40,600
Total assets	$	3,520,993		$	3,453,994
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserves for losses and loss adjustment expenses	$	1,924,317		$	1,920,286
Unearned premiums		486,955			475,171
Reinsurance balances payable		97,239			98,555
Senior notes		114,105			114,010
Deferred income tax, net		4,833			—
Accounts payable and other liabilities		39,531			44,453
Total liabilities		2,666,980			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 17,262,710 shares for 2010 and 17,212,814 shares for 2009		1,726			1,721
Additional paid-in capital		311,233			304,505
Retained earnings		522,174			469,934
Treasury stock, at cost (1,496,707 for 2010 and 366,330 shares for 2009)		(63,227	)		(18,296	)
Accumulated other comprehensive income		82,107			43,655
Total stockholders’ equity		854,013			801,519
Total liabilities and stockholders’ equity	$	3,520,993		$	3,453,994

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

	Three Months							Nine Months
Gross Written Premiums:	2010		2009		Change			2010		2009		Change
Insurance Companies:
Marine	$	49,406	$	53,129		-7	%	$	172,136	$	187,452		-8	%
Property Casualty		81,351		93,302		-13	%		242,494		272,127		-11	%
Professional Liability		32,586		33,569		-3	%		97,192		101,789		-5	%
		163,343		180,000		-9	%		511,822		561,368		-9	%
Lloyd’s Operations:
Marine		32,788		33,960		-3	%		133,758		140,256		-5	%
Property Casualty		27,687		20,024		38	%		76,768		59,058		30	%
Professional Liability		9,820		11,207		-12	%		35,003		32,497		8	%
		70,295		65,191		8	%		245,529		231,811		6	%
Total	$	233,638	$	245,191		-5	%	$	757,351	$	793,179		-5	%
	Three Months							Nine Months
Net Written Premiums:	2010		2009		Change			2010		2009		Change
Insurance Companies:
Marine	$	35,546	$	39,632		-10	%	$	123,702	$	133,047		-7	%
Property Casualty		52,677		57,567		-8	%		156,674		183,247		-15	%
Professional Liability		19,693		18,834		5	%		60,281		59,180		2	%
		107,916		116,033		-7	%		340,657		375,474		-9	%
Lloyd’s Operations:
Marine		27,142		23,816		14	%		111,205		113,867		-2	%
Property Casualty		17,414		11,116		57	%		43,049		33,781		27	%
Professional Liability		5,335		5,036		6	%		17,218		16,538		4	%
		49,891		39,968		25	%		171,472		164,186		4	%
Total	$	157,807	$	156,001		1	%	$	512,129	$	539,660		-5	%
	Three Months							Nine Months
Net Earned Premiums:	2010		2009		Change			2010		2009		Change
Insurance Companies:
Marine	$	41,091	$	42,620		-4	%	$	122,739	$	114,459		7	%
Property Casualty		50,976		60,380		-16	%		152,228		188,860		-19	%
Professional Liability		20,131		19,804		2	%		58,867		55,998		5	%
		112,198		122,804		-9	%		333,834		359,317		-7	%
Lloyd’s Operations:
Marine		38,254		33,945		13	%		108,541		102,158		6	%
Property Casualty		12,202		9,126		34	%		34,880		28,250		23	%
Professional Liability		5,579		5,396		3	%		16,518		16,360		1	%
		56,035		48,467		16	%		159,939		146,768		9	%
Total	$	168,233	$	171,271		-2	%	$	493,773	$	506,085		-2	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
September 30, 2010

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate(1)			Total
Gross written premiums	$	163,343		$	70,295		$	—		$	233,638
Net written premiums		107,916			49,891			—			157,807
Net earned premiums		112,198			56,035			—			168,233
Net losses and loss adjustment expenses		(72,306	)		(35,157	)		—			(107,463	)
Commission expenses		(14,374	)		(10,459	)		(352	)		(25,185	)
Other operating expenses		(26,398	)		(8,301	)		—			(34,699	)
Other income (expense)		1,380			1,052			352			2,784
Underwriting profit		500			3,170			—			3,670
Investment income		15,736			1,982			121			17,839
Net realized gains (losses)		4,206			(354	)		—			3,852
Other operating expenses		—			—			17			17
Other income (expense)		—			—			(17	)		(17	)
Interest expense		—			—			(2,045	)		(2,045	)
Income (loss) before income tax expense (benefit)		20,442			4,798			(1,924	)		23,316
Income tax expense (benefit)		6,049			1,715			(673	)		7,091
Net income (loss)	$	14,393		$	3,083		$	(1,251	)	$	16,225
Loss and loss expenses ratio		64.4	%		62.7	%					63.9	%
Commission expense ratio		12.8	%		18.7	%					15.0	%
Other operating expenses ratio(2)		22.4	%		12.9	%					18.9	%
Combined ratio		99.6	%		94.3	%					97.8	%

(1)	The Corporate segment includes intercompany eliminations.
(2)	The Other operating expenses ratio includes Other income (expense).

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

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate(1)			Total
Gross written premiums	$	180,000		$	65,191		$	—		$	245,191
Net written premiums		116,033			39,968			—			156,001
Net earned premiums		122,804			48,467			—			171,271
Net losses and loss adjustment expenses		(75,838	)		(31,753	)		—			(107,591	)
Commission expenses		(15,346	)		(7,835	)		329			(22,852	)
Other operating expenses		(27,194	)		(7,835	)		—			(35,029	)
Other income (expense)		1,301			280			(329	)		1,252
Underwriting profit		5,727			1,324			—			7,051
Investment income		16,597			2,361			152			19,110
Net realized gains (losses)		5,710			425			—			6,135
Other operating expenses		—			—			11			11
Other income (expense)		—			—			(11	)		(11	)
Interest expense		—			—			(2,042	)		(2,042	)
Income (loss) before income tax expense (benefit)		28,034			4,110			(1,890	)		30,254
Income tax expense (benefit)		7,973			1,510			(661	)		8,822
Net income (loss)	$	20,061		$	2,600		$	(1,229	)	$	21,432
Loss and loss expenses ratio		61.8	%		65.5	%					62.8	%
Commission expense ratio		12.5	%		16.2	%					13.3	%
Other operating expenses ratio(2)		21.1	%		15.6	%					19.8	%
Combined ratio		95.4	%		97.3	%					95.9	%

(1)	The Corporate segment includes intercompany eliminations.
(2)	The Other operating expenses ratio includes Other income (expense).

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Nine Months Ended
September 30, 2010

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate(1)			Total
Gross written premiums	$	511,822		$	245,529		$	—		$	757,351
Net written premiums		340,657			171,472			—			512,129
Net earned premiums		333,834			159,939			—			493,773
Net losses and loss adjustment expenses		(205,571	)		(105,562	)		—			(311,133	)
Commission expenses		(43,351	)		(32,827	)		—			(76,178	)
Other operating expenses		(79,658	)		(24,161	)		—			(103,819	)
Other income (expense)		289			2,687			—			2,976
Underwriting profit		5,543			76			—			5,619
Investment income		47,040			6,179			445			53,664
Net realized gains (losses)		20,140			378			231			20,749
Other operating expenses		—			—			38			38
Other income (expense)		—			—			(38	)		(38	)
Interest expense		—			—			(6,133	)		(6,133	)
Income (loss) before income tax expense (benefit)		72,723			6,633			(5,457	)		73,899
Income tax expense (benefit)		21,166			2,403			(1,910	)		21,659
Net income (loss)	$	51,557		$	4,230		$	(3,547	)	$	52,240
Loss and loss expenses ratio		61.6	%		66.0	%					63.0	%
Commission expense ratio		13.0	%		20.5	%					15.4	%
Other operating expenses ratio(2)		23.7	%		13.5	%					20.5	%
Combined ratio		98.3	%		100.0	%					98.9	%

(1)	The Corporate segment includes intercompany eliminations.
(2)	The Other operating expenses ratio includes Other income (expense).

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Nine Months Ended
September 30, 2009

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate(1)			Total
Gross written premiums	$	561,368		$	231,811		$	—		$	793,179
Net written premiums		375,474			164,186			—			539,660
Net earned premiums		359,317			146,768			—			506,085
Net losses and loss adjustment expenses		(214,834	)		(93,732	)		—			(308,566	)
Commission expenses		(45,374	)		(26,533	)		329			(71,578	)
Other operating expenses		(78,660	)		(19,933	)		—			(98,593	)
Other income (expense)		3,157			879			(329	)		3,707
Underwriting profit		23,606			7,449			—			31,055
Investment income		49,043			7,060			406			56,509
Net realized gains (losses)		(987	)		(2,988	)		—			(3,975	)
Other operating expenses		—			—			21			21
Other income (expense)		—			—			2,979			2,979
Interest expense		—			—			(6,411	)		(6,411	)
Income (loss) before income tax expense (benefit)		71,662			11,521			(3,005	)		80,178
Income tax expense (benefit)		19,677			4,470			(1,051	)		23,096
Net income (loss)	$	51,985		$	7,051		$	(1,954	)	$	57,082
Loss and loss expenses ratio		59.8	%		63.9	%					61.0	%
Commission expense ratio		12.6	%		18.1	%					14.1	%
Other operating expenses ratio(2)		21.0	%		13.0	%					18.8	%
Combined ratio		93.4	%		95.0	%					93.9	%

(1)	The Corporate segment includes intercompany eliminations.
(2)	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 September 30, 2010
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Combined Ratio
	Premiums		Incurred		Expenses		Gain(Loss)			Loss			Expense			Total
Insurance Companies:
Marine	$	41,091	$	26,257	$	13,467	$	1,367			63.9	%		32.8	%		96.7	%
Property Casualty		50,976		32,575		18,350		51			63.9	%		36.0	%		99.9	%
Professional Liability		20,131		13,474		7,575		(918	)		66.9	%		37.7	%		104.6	%
		112,198		72,306		39,392		500			64.4	%		35.2	%		99.6	%
Lloyd’s Operations		56,035		35,157		17,708		3,170			62.7	%		31.6	%		94.3	%
Total	$	168,233	$	107,463	$	57,100	$	3,670			63.9	%		33.9	%		97.8	%

	Three Months Ended September 30, 2009
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Combined Ratio
	Premiums		Incurred		Expenses		Gain(Loss)			Loss			Expense			Total
Insurance Companies:
Marine	$	42,620	$	31,611	$	13,259	$	(2,250	)		74.2	%		31.1	%		105.3	%
Property Casualty		60,380		23,881		21,330		15,169			39.6	%		35.3	%		74.9	%
Professional Liability		19,804		20,346		6,650		(7,192	)		102.7	%		33.6	%		136.3	%
		122,804		75,838		41,239		5,727			61.8	%		33.6	%		95.4	%
Lloyd’s Operations		48,467		31,753		15,390		1,324			65.5	%		31.8	%		97.3	%
Total	$	171,271	$	107,591	$	56,629	$	7,051			62.8	%		33.1	%		95.9	%

	Amounts				Loss Ratio
Net Incurred Loss Activity	Sept. 30,		Sept. 30,		Sept. 30,			Sept. 30,
For the Three Months Ended:	2010		2009		2010			2009
Insurance Companies:
Loss and LAE payments	$	67,343	$	69,215		60.1	%		56.4	%
Change in reserves		4,963		6,623		4.3	%		5.4	%
Net incurred loss and LAE		72,306		75,838		64.4	%		61.8	%
Lloyd’s Operations:
Loss and LAE payments		22,572		20,736		40.2	%		42.8	%
Change in reserves		12,585		11,017		22.5	%		22.7	%
Net incurred loss and LAE		35,157		31,753		62.7	%		65.5	%
Total
Loss and LAE payments		89,915		89,951		53.5	%		52.5	%
Change in reserves		17,548		17,640		10.4	%		10.3	%
Net incurred loss and LAE	$	107,463	$	107,591		63.9	%		62.8	%

Impact of Prior Years Reserves	Amounts				Loss Ratio Impact
Favorable / (Unfavorable) Development	Sept. 30,		Sept. 30,		Sept. 30,			Sept. 30,
For the Three Months Ended:	2010		2009		2010			2009
Insurance Companies	$	157	$	3,220		0.1	%		2.6	%
Lloyd’s Operations		4,002		630		7.1	%		1.3	%
Total	$	4,159	$	3,850		2.5	%		2.2	%

News Release
Page 12

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

	Nine Months Ended September 30, 2010
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Combined Ratio
	Premiums		Incurred		Expenses		Gain(Loss)			Loss			Expense			Total
Insurance Companies:
Marine	$	122,739	$	77,911	$	42,566	$	2,262			63.5	%		34.7	%		98.2	%
Property Casualty		152,228		89,637		57,858		4,733			58.9	%		38.0	%		96.9	%
Professional Liability		58,867		38,023		22,296		(1,452	)		64.6	%		37.9	%		102.5	%
		333,834		205,571		122,720		5,543			61.6	%		36.7	%		98.3	%
Lloyd’s Operations		159,939		105,562		54,301		76			66.0	%		34.0	%		100.0	%
Total	$	493,773	$	311,133	$	177,021	$	5,619			63.0	%		35.9	%		98.9	%

	Nine Months Ended September 30, 2009
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Combined Ratio
	Premiums		Incurred		Expenses		Gain(Loss)			Loss			Expense			Total
Insurance Companies:
Marine	$	114,459	$	83,239	$	35,453	$	(4,233	)		72.7	%		31.0	%		103.7	%
Property Casualty		188,860		80,331		65,642		42,887			42.5	%		34.8	%		77.3	%
Professional Liability		55,998		51,264		19,782		(15,048	)		91.5	%		35.3	%		126.8	%
		359,317		214,834		120,877		23,606			59.8	%		33.6	%		93.4	%
Lloyd’s Operations		146,768		93,732		45,587		7,449			63.9	%		31.1	%		95.0	%
Total	$	506,085	$	308,566	$	166,464	$	31,055			61.0	%		32.9	%		93.9	%

	Amounts					Loss Ratio
Net Incurred Loss Activity	Sept. 30,			Sept. 30,		Sept. 30,			Sept. 30,
For the Nine Months Ended:	2010			2009		2010			2009
Insurance Companies:
Loss and LAE payments	$	208,114		$	171,282		62.4	%		47.7	%
Change in reserves		(2,543	)		43,552		-0.8	%		12.1	%
Net incurred loss and LAE		205,571			214,834		61.6	%		59.8	%
Lloyd’s Operations:
Loss and LAE payments		79,431			52,348		49.7	%		35.7	%
Change in reserves		26,131			41,384		16.3	%		28.2	%
Net incurred loss and LAE		105,562			93,732		66.0	%		63.9	%
Total
Loss and LAE payments		287,545			223,630		58.2	%		44.2	%
Change in reserves		23,588			84,936		4.8	%		16.8	%
Net incurred loss and LAE	$	311,133		$	308,566		63.0	%		61.0	%

Impact of Prior Years Reserves	Amounts				Loss Ratio Impact
Favorable / (Unfavorable) Development	Sept. 30,		Sept. 30,		Sept. 30,			Sept. 30,
For the Nine Months Ended:	2010		2009		2010			2009
Insurance Companies	$	5,654	$	13,242		1.7	%		3.7	%
Lloyd’s Operations		5,001		5,853		3.1	%		4.0	%
Total	$	10,655	$	19,095		2.2	%		3.8	%

News Release
Page 13

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

	Case		IBNR
Net Loss Reserves, September 30, 2010:	Reserves		Reserves		Total
Insurance Companies:
Marine	$	111,945	$	103,307	$	215,252
Property Casualty		138,089		342,170		480,259
Professional Liability		46,645		62,576		109,221
Total Insurance Companies		296,679		508,053		804,732
Lloyd’s Operations:
Marine		114,002		108,477		222,479
Property Casualty		29,860		29,768		59,628
Professional Liability		12,321		37,362		49,683
Total Lloyd’s Operations		156,183		175,607		331,790
Total Net Loss Reserves	$	452,862	$	683,660	$	1,136,522

	Case		IBNR
Net Loss Reserves, December 31, 2009:	Reserves		Reserves		Total
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
September 30, 2010
($ in thousands)

At September 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 4.1 years. The Company does not own any collateralized debt obligations (CDO’s), collateralized loan obligations (CLO’s) or asset backed commercial paper.

At September 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 $1.4 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 September 30, 2010:

			Gross		Gross			Cost or		OTTI
	Fair		Unrealized		Unrealized			Amortized		Recognized
September 30, 2010	Value		Gains		(Losses)			Cost		in OCI
	($ in thousands)
Fixed maturities:
U.S. Government Treasury bonds, agency bonds and foreign government bonds	$	421,540	$	17,971	$	(2	)	$	403,571	$	—
States, municipalities and political subdivisions		405,584		25,255		(51	)		380,380		—
Mortgage- and asset-backed securities
Agency mortgage-backed securities		414,335		19,325		—			395,010		—
Residential mortgage obligations		20,785		—		(2,941	)		23,726		(2,064	)
Asset-backed securities		33,411		513		(9	)		32,907		(8	)
Commercial mortgage-backed securities		143,278		8,108		(67	)		135,237		—
Subtotal		611,809		27,946		(3,017	)		586,880		(2,072	)
Corporate bonds		381,560		24,853		(13	)		356,720
Total fixed maturities		1,820,493		96,025		(3,083	)		1,727,551		(2,072	)
Equity securities — common stocks		86,447		19,546		(85	)		66,986		—
Cash		31,073		—		—			31,073		—
Short-term investments		260,564		—		—			260,564		—
Total	$	2,198,577	$	115,571	$	(3,168	)	$	2,086,174	$	(2,072	)

News Release
Page 15

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

The following three tables set forth our agency mortgage-backed securities, residential 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 September 30, 2010:

			Gross		Gross		Cost or
	Fair		Unrealized		Unrealized		Amortized
Agency mortgage-backed securities:	Value		Gains		(Losses)		Cost
GNMA	$	208,594	$	6,320	$	—	$	202,274
FNMA		146,771		9,890		—		136,881
FHLMC		58,970		3,115		—		55,855
Total	$	414,335	$	19,325	$	—	$	395,010

			Gross		Gross			Cost or
	Fair		Unrealized		Unrealized			Amortized
Residential mortgage obligations:	Value		Gains		(Losses)			Cost
Prime	$	19,408	$	—	$	(2,667	)	$	22,075
Alt-A		1,377		—		(274	)		1,651
Subprime		—		—		—			—
Total	$	20,785	$	—	$	(2,941	)	$	23,726

			Gross		Gross			Cost or
	Fair		Unrealized		Unrealized			Amortized
Asset-backed securities:	Value		Gains		(Losses)			Cost
Prime	$	33,272	$	513	$	—		$	32,759
Alt-A		—		—		—			—
Subprime		139		—		(9	)		148
Total	$	33,411	$	513	$	(9	)	$	32,907