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

Exhibit 99.1

The Navigators Group, Inc.

CORPORATE NEWS

Navigators Reports Fourth Quarter Earnings

New York — February 16, 2012 — The Navigators Group, Inc. (NASDAQ:NAVG) reported net income of $10.1 million, or $0.70 per diluted share, for the three months ended December 31, 2011 compared to net income of $17.3 million, or $1.07 per diluted share, for the comparable period in 2010. Operating earnings were $5.8 million, or $0.41 per diluted share for the fourth quarter of 2011 compared to $4.7 million, or $0.29 per diluted share, for the comparable period in 2010.

For the twelve months ended December 31, 2011, the Company reported net income of $25.6 million, or $1.69 per diluted share, compared to $69.6 million, or $4.24 per diluted share, for the comparable period in 2010. Operating earnings were $19.1 million, or $1.26 per diluted share for the twelve months ended December 31, 2011 compared to $43.4 million, or $2.65 per diluted share, for the comparable period in 2010.

Gross written premiums and net written premiums for the three months ended December 31, 2011 were $277.9 million and $202.0 million, respectively, an increase of 20.9% and 42.4% from the comparable period in 2010. Gross written premiums and net written premiums for the twelve months ended December 31, 2011 were $1,108.2 million and $753.8 million, respectively, an increase of 12.3% and 15.3% from the comparable period in 2010.

The combined loss and expense ratio for the three and twelve months ended December 31, 2011 were 102.5% and 104.7%, respectively, compared to 106.3% and 100.7% for the comparable periods in 2010.

Stan Galanski, President and Chief Executive Officer, commented, “Our property casualty business had a solid fourth quarter, as the energy, casualty and treaty reinsurance units each produced profitable underwriting results and double digit premium growth. Following the major energy losses that impacted the industry in early 2011, rates and terms have improved and we have increased our capacity in response. We are achieving positive pricing in many product lines. The notable exception is Directors’ & Officers liability, which continued to generate underwriting losses as we re-position the portfolio for future profits.” He continued, “As a global leader in marine insurance, it comes as no surprise that we participated on hull and liability policies triggered by the grounding of the Costa Concordia. Although this has been characterized as one of the largest losses in the history of marine insurance and it is difficult to predict the ultimate liability losses that may arise from this incident, based upon current industry loss estimates, we expect the pre-tax impact in the first quarter of 2012 to be less than $6 million, net of reinsurance and reinstatement premiums.”

Stockholders’ equity was $803.4 million, or $57.57 per share, as of December 31, 2011 compared to $829.4 million, or $52.68 per share, as of December 31, 2010. During the three and twelve months ended December 31, 2011, the Company repurchased 376,911 and 1,979,107 shares, respectively, of its common stock for an aggregate purchase price of $17.2 million and $90.9 million pursuant to its share repurchase program. The share repurchase program authorized by the Parent Company’s Board of Directors expired December 31, 2011.

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

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Net investment income for the three and twelve months ended December 31, 2011 was $12.4 million and $63.5 million, which was a decrease of 30.9% and 11.4% from the comparable periods in 2010. The annualized pre-tax investment yield, excluding net realized gains and losses and net other-than-temporary impairment losses recognized in earnings, was 2.3% and 3.0% for the three and twelve months ended December 31, 2011, compared to 3.4% and 3.5% for the comparable periods in 2010. The effective tax rate on net investment income was 23.6% and 27.6% for the three and twelve months ended December 31, 2011, compared to 28.1% and 27.0% for the comparable periods in 2010.

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 3.6 years as of December 31, 2011. As of December 31, 2011, net unrealized gains within our investment portfolio were $93.6 million, an increase of $44.6 million compared to December 31, 2010. There were $6.6 million and $10.0 million of net realized gains and other-than-temporary impairment losses recognized in earnings for the three and twelve months ended December 31, 2011.

Consolidated cash flow from operations for the three and twelve months ended December 31, 2011 was $32.0 million and $118.3 million respectively, compared to $4.1 million and $118.2 million for the comparable periods in 2010.

The Company will hold a conference call on Friday, February 17, 2012 starting at 8:30 a.m. ET to discuss the 2011 fourth quarter results. The call will be available via live webcast on Navigators’ website (www.navg.com).

To participate by telephone, the domestic dial-in number is (800) 850-2903 and the international dial-in is (224) 357-2399. Participants may connect to the webcast at:

http://investor.shareholder.com/navg/eventdetail.cfm?eventid=108125

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 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.

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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:          Ciro M. DeFalco

Senior Vice President and Chief Financial Officer

(914) 933-6043

cdefalco@navg.com

www.navg.com

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Financial Highlights

($ in thousands, except per share data)

		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	Three Months Ended December 31,									Twelve Months Ended December 31,
Results of Operations	2011			2010			Change			2011			2010			Change
Gross written premiums	$	277,901		$	229,850			20.9	%	$	1,108,216		$	987,201			12.3	%
Net written premiums		202,002			141,809			42.4	%		753,798			653,938			15.3	%
Revenues:
Net earned premiums		191,757			166,158			15.4	%		691,645			659,931			4.8	%
Net investment income		12,428			17,998			-30.9	%		63,500			71,662			-11.4	%
Total other-than-temporary impairment losses		(1,280	)		(448	)		NM			(3,617	)		(2,222	)		NM
Portion of loss recognized in other comprehensive income (before tax)		691			273			153.1	%		1,632			1,142			42.9	%
Net other-than-temporary impairment losses recognized in earnings		(589	)		(175	)		NM			(1,985	)		(1,080	)		NM
Net realized gains (losses)		7,141			19,665			-63.7	%		11,996			41,319			-71.0	%
Other income		586			2,205			-73.4	%		1,229			5,143			-76.1	%
Total revenues		211,323			205,851			2.7	%		766,385			776,975			-1.4	%
Expenses:
Net losses and loss adjustment expenses		136,104			110,022			23.7	%		476,997			421,155			13.3	%
Commission expenses		30,273			32,935			-8.1	%		110,437			109,113			1.2	%
Other operating expenses		30,688			35,919			-14.6	%		138,029			139,700			-1.2	%
Interest expense		2,048			2,045			0.1	%		8,188			8,178			0.1	%
Total expenses		199,113			180,921			10.1	%		733,651			678,146			8.2	%
Income before income taxes		12,210			24,930			-51.0	%		32,734			98,829			-66.9	%
Income tax expense (benefit)		2,122			7,592			-72.0	%		7,137			29,251			-75.6	%
Net income (loss)	$	10,088		$	17,338			-41.8	%	$	25,597		$	69,578			-63.2	%
Per Share Data
Net income per common share:
Basic	$	0.71		$	1.10			-35.5	%	$	1.71		$	4.33			-60.5	%
Diluted	$	0.70		$	1.07			-34.6	%	$	1.69		$	4.24			-60.2	%
Average common shares outstanding:
Basic		14,199,491			15,751,048						14,980,429			16,064,770
Diluted		14,380,161			16,159,486						15,183,285			16,415,266
Underwriting Ratios
Loss Ratio		71.0	%		66.2	%					69.0	%		63.8	%
Expense Ratio		31.5	%		40.1	%					35.7	%		36.9	%
Combined Ratio		102.5	%		106.3	%					104.7	%		100.7	%
	Dec. 31,			Sept. 30,						Dec. 31,			Dec. 31,
Balance Sheet Data	2011			2011						2011			2010
Stockholders’ equity	$	803,435		$	799,455			0.5	%	$	803,435		$	829,354			-3.1	%
Book value per share	$	57.57		$	55.82			3.1	%	$	57.57		$	52.68			9.3	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in thousands, except share data)

		September 30,			September 30,
	December 31,			December 31,
	2011			2010
ASSETS
Investments and cash:
Fixed maturities, available-for-sale, at fair value (amortized cost: 2011, $1,816,710; 2010, $1,855,598)	$	1,888,069		$	1,882,245
Equity securities, available-for-sale, at fair value (cost: 2011, $73,567; 2010, $64,793)		95,849			87,258
Short-term investments, at cost which approximates fair value		122,220			153,057
Cash		127,360			31,768
Total investments and cash		2,233,498			2,154,328
Premiums receivable		255,725			188,368
Prepaid reinsurance premiums		164,162			156,869
Reinsurance recoverable on paid losses		43,791			56,658
Reinsurance recoverable on unpaid losses and loss adjustment expenses		845,445			843,296
Deferred policy acquisition costs		63,984			55,201
Accrued investment income		14,492			15,590
Goodwill and other intangible assets		6,869			6,925
Current income tax receivable, net		15,391			1,054
Deferred income tax, net		—			15,141
Other assets		26,650			38,029
Total assets	$	3,670,007		$	3,531,459
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserves for losses and loss adjustment expenses	$	2,082,679		$	1,985,838
Unearned premiums		532,628			463,515
Reinsurance balances payable		108,699			105,904
Senior notes		114,276			114,138
Deferred income tax, net		6,291			—
Accounts payable and other liabilities		21,999			32,710
Total liabilities		2,866,572			2,702,105
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 17,467,615 shares for 2011 and 17,274,440 shares for 2010		1,746			1,728
Additional paid-in capital		322,133			312,588
Treasury stock, at cost (3,511,380 shares for 2011 and 1,532,273 shares for 2010)		(155,801	)		(64,935	)
Retained earnings		565,109			539,512
Accumulated other comprehensive income		70,248			40,461
Total stockholders’ equity		803,435			829,354
Total liabilities and stockholders’ equity	$	3,670,007		$	3,531,459

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Comparative Premium Data

($ in thousands)

		September 30,		September 30,		September 30,			September 30,		September 30,		September 30,
	Three Months							Twelve Months
Gross Written Premiums:	2011		2010		Change			2011		2010		Change
Insurance Companies:
Marine	$	52,688	$	50,925		3	%	$	228,500	$	223,061		2	%
Property Casualty		121,293		70,157		73	%		445,287		312,651		42	%
Professional Liability		29,720		32,601		-9	%		114,632		129,793		-12	%
		203,701		153,683		33	%		788,419		665,505		18	%
Lloyd’s Operations:
Marine		39,977		48,965		-18	%		167,562		182,723		-8	%
Property Casualty		24,032		18,031		33	%		115,138		94,799		21	%
Professional Liability		10,191		9,171		11	%		37,097		44,174		-16	%
		74,200		76,167		-3	%		319,797		321,696		-1	%
Total	$	277,901	$	229,850		21	%	$	1,108,216	$	987,201		12	%
	Three Months							Twelve Months
Net Written Premiums:	2011		2010		Change			2011		2010		Change
Insurance Companies:
Marine	$	40,442	$	27,357		48	%	$	170,642	$	151,059		13	%
Property Casualty		91,780		41,171		123	%		293,758		197,845		48	%
Professional Liability		20,933		20,170		4	%		77,991		80,451		-3	%
		153,155		88,698		73	%		542,391		429,355		26	%
Lloyd’s Operations:
Marine		34,844		38,135		-9	%		137,206		149,340		-8	%
Property Casualty		8,885		11,000		-19	%		56,249		54,049		4	%
Professional Liability		5,118		3,976		29	%		17,952		21,194		-15	%
		48,847		53,111		-8	%		211,407		224,583		-6	%
Total	$	202,002	$	141,809		42	%	$	753,798	$	653,938		15	%
	Three Months							Twelve Months
Net Earned Premiums:	2011		2010		Change			2011		2010		Change
Insurance Companies:
Marine	$	44,631	$	33,107		35	%	$	169,018	$	155,846		8	%
Property Casualty		74,426		48,513		53	%		231,297		200,741		15	%
Professional Liability		20,267		23,397		-13	%		72,148		82,264		-12	%
		139,324		105,017		33	%		472,463		438,851		8	%
Lloyd’s Operations:
Marine		36,437		40,684		-10	%		145,659		149,225		-2	%
Property Casualty		11,798		14,972		-21	%		55,903		49,852		12	%
Professional Liability		4,198		5,485		-23	%		17,620		22,003		-20	%
		52,433		61,141		-14	%		219,182		221,080		-1	%
Total	$	191,757	$	166,158		15	%	$	691,645	$	659,931		5	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Segment Information

Three Months Ended

December 31, 2011

($ in thousands)

		September 30,			September 30,			September 30,			September 30,
	Insurance			Lloyd’s
	Companies			Operations			Corporate (1)			Total
Gross written premiums	$	203,701		$	74,200		$	—		$	277,901
Net written premiums		153,155			48,847			—			202,002
Net earned premiums		139,324			52,433			—			191,757
Net losses and loss adjustment expenses		(112,743	)		(23,361	)		—			(136,104	)
Commission expenses		(18,909	)		(11,939	)		575			(30,273	)
Other operating expenses		(22,467	)		(8,221	)		—			(30,688	)
Other income (expense)		1,084			77			(575	)		586
Underwriting profit (loss)		(13,711	)		8,989			0			(4,722	)
Net investment income		10,155			2,222			51			12,428
Net realized gains (losses)		6,487			55			10			6,552
Interest expense		—			—			(2,048	)		(2,048	)
Income (loss) before income taxes		2,931			11,266			(1,987	)		12,210
Income tax expense (benefit)		(953	)		3,770			(695	)		2,122
Net income (loss)	$	3,884		$	7,496		$	(1,292	)	$	10,088
Losses and loss adjustment expenses ratio		80.9	%		44.6	%					71.0	%
Commission expense ratio		13.6	%		22.8	%					15.8	%
Other operating expense ratio(2)		15.3	%		15.5	%					15.7	%
Combined ratio		109.8	%		82.9	%					102.5	%

(1) The Corporate segment includes intercompany eliminations.

(2) The Other operating expense ratio includes Other income (expense).

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Segment Information

Three Months Ended

December 31, 2010

($ in thousands)

		September 30,			September 30,			September 30,			September 30,
	Insurance			Lloyd’s
	Companies			Operations			Corporate (1)			Total
Gross written premiums	$	153,683		$	76,167		$	—		$	229,850
Net written premiums		88,698			53,111			—			141,809
Net earned premiums		105,017			61,141			—			166,158
Net losses and loss adjustment expenses		(74,549	)		(35,473	)		—			(110,022	)
Commission expenses		(15,771	)		(17,164	)		—			(32,935	)
Other operating expenses		(26,973	)		(8,951	)		—			(35,924	)
Other income (expense)		1,409			801			—			2,210
Underwriting profit (loss)		(10,867	)		354			—			(10,513	)
Net investment income		15,752			2,107			139			17,998
Net realized gains (losses)		15,917			2,945			628			19,490
Interest expense		—			—			(2,045	)		(2,045	)
Income (loss) before income taxes		20,802			5,406			(1,278	)		24,930
Income tax expense (benefit)		6,053			1,986			(447	)		7,592
Net income (loss)	$	14,749		$	3,420		$	(831	)	$	17,338
Losses and loss adjustment expenses ratio		71.0	%		58.0	%					66.2	%
Commission expense ratio		15.0	%		28.1	%					19.8	%
Other operating expense ratio(2)		24.3	%		13.3	%					20.3	%
Combined ratio		110.3	%		99.4	%					106.3	%

(1) The Corporate segment includes intercompany eliminations.

(2) The Other operating expense ratio includes Other income (expense).

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Segment Information

Twelve Months Ended

December 31, 2011

($ in thousands)

		September 30,			September 30,			September 30,			September 30,
	Insurance Companies			Lloyd’s Operations			Corporate (1)			Total
Gross written premiums	$	788,419		$	319,797		$	—		$	1,108,216
Net written premiums		542,391			211,407			—			753,798
Net earned premiums		472,463			219,182			—			691,645
Net losses and loss adjustment expenses		(341,625	)		(135,372	)		—			(476,997	)
Commission expenses		(64,165	)		(48,341	)		2,069			(110,437	)
Other operating expenses		(101,517	)		(36,512	)		—			(138,029	)
Other income (expense)		3,955			(657	)		(2,069	)		1,229
Underwriting profit (loss)		(30,889	)		(1,700	)		0			(32,589	)
Net investment income		54,164			8,955			381			63,500
Net realized gains (losses)		12,151			(2,354	)		214			10,011
Interest expense		—			—			(8,188	)		(8,188	)
Income (loss) before income taxes		35,426			4,901			(7,593	)		32,734
Income tax expense (benefit)		8,271			1,523			(2,657	)		7,137
Net income (loss)	$	27,155		$	3,378		$	(4,936	)	$	25,597
Losses and loss adjustment expenses ratio		72.3	%		61.8	%					69.0	%
Commission expense ratio		13.6	%		22.1	%					16.0	%
Other operating expense ratio(2)		20.6	%		16.9	%					19.7	%
Combined ratio		106.5	%		100.8	%					104.7	%

(1) The Corporate segment includes intercompany eliminations.

(2) The Other operating expense ratio includes Other income (expense).

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Segment Information

Twelve Months Ended

December 31, 2010

($ in thousands)

		September 30,			September 30,			September 30,			September 30,
	Insurance Companies			Lloyd’s Operations			Corporate (1)			Total
Gross written premiums	$	665,505		$	321,696		$	—		$	987,201
Net written premiums		429,355			224,583			—			653,938
Net earned premiums		438,851			221,080			—			659,931
Net losses and loss adjustment expenses		(280,120	)		(141,035	)		—			(421,155	)
Commission expenses		(59,122	)		(49,991	)		—			(109,113	)
Other operating expenses		(106,631	)		(33,112	)		—			(139,743	)
Other income (expense)		1,698			3,488			—			5,186
Underwriting profit		(5,324	)		430			—			(4,894	)
Net investment income		62,792			8,286			584			71,662
Net realized gains (losses)		36,057			3,323			859			40,239
Interest expense		—			—			(8,178	)		(8,178	)
Income (loss) before income taxes		93,525			12,039			(6,735	)		98,829
Income tax expense (benefit)		27,219			4,389			(2,357	)		29,251
Net income (loss)	$	66,306		$	7,650		$	(4,378	)	$	69,578
Losses and loss adjustment expenses ratio		63.8	%		63.8	%					63.8	%
Commission expense ratio		13.5	%		22.6	%					16.5	%
Other operating expense ratio(2)		23.9	%		13.4	%					20.4	%
Combined ratio		101.2	%		99.8	%					100.7	%

(1) The Corporate segment includes intercompany eliminations.

(2) The Other operating expense ratio includes Other income (expense).

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Underwriting Results

($ in thousands)

		September 30,		September 30,		September 30,		September 30,			September 30,			September 30,			September 30,
	Three Months Ended December 31, 2011
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Loss			Expense			Combined
	Premiums		Incurred		Expenses		Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	44,631	$	28,321	$	13,537	$	2,773			63.5	%		30.3	%		93.8	%
Property Casualty		74,426		41,297		20,227		12,902			55.5	%		27.2	%		82.7	%
Professional Liability		20,267		43,125		6,528		(29,386	)		212.8	%		32.2	%		245.0	%
		139,324		112,743		40,292		(13,711	)		80.9	%		28.9	%		109.8	%
Lloyd’s Operations		52,433		23,361		20,083		8,989			44.6	%		38.3	%		82.9	%
Total	$	191,757	$	136,104	$	60,375	$	(4,722	)		71.0	%		31.5	%		102.5	%

		September 30,		September 30,		September 30,		September 30,			September 30,			September 30,			September 30,
	Three Months Ended December 31, 2010
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Loss			Expense			Combined
	Premiums		Incurred		Expenses		Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	33,107	$	22,668	$	13,526	$	(3,087	)		68.5	%		40.8	%		109.3	%
Property Casualty		48,513		21,265		19,182		8,066			43.8	%		39.6	%		83.4	%
Professional Liability		23,397		30,616		8,627		(15,846	)		130.9	%		36.8	%		167.7	%
		105,017		74,549		41,335		(10,867	)		71.0	%		39.3	%		110.3	%
Lloyd’s Operations		61,141		35,473		25,314		354			58.0	%		41.4	%		99.4	%
Total	$	166,158	$	110,022	$	66,649	$	(10,513	)		66.2	%		40.1	%		106.3	%

		September 30,			September 30,		September 30,			September 30,
	Amounts					Loss Ratio
Net Incurred Loss Activity For the Three Months Ended:	Dec. 31, 2011			Dec. 31 2010		Dec. 31, 2011			Dec. 31, 2010
Insurance Companies:
Loss and LAE payments	$	70,377		$	70,855		50.5	%		67.5	%
Change in reserves		42,366			3,694		30.4	%		3.5	%
Net incurred loss and LAE		112,743			74,549		80.9	%		71.0	%
Lloyd’s Operations:
Loss and LAE payments		29,656			33,147		56.6	%		54.2	%
Change in reserves		(6,295	)		2,326		-12.0	%		3.8	%
Net incurred loss and LAE		23,361			35,473		44.6	%		58.0	%
Total
Loss and LAE payments		100,033			104,002		52.2	%		62.6	%
Change in reserves		36,071			6,020		18.8	%		3.6	%
Net incurred loss and LAE	$	136,104		$	110,022		71.0	%		66.2	%

		September 30,			September 30,			September 30,			September 30,
Impact of Prior Years Reserves	Amounts						Loss Ratio Impact
Favorable / (Unfavorable) Development For the Three Months Ended:	Dec. 31, 2011			Dec. 31, 2010			Dec. 31, 2011			Dec. 31, 2010
Insurance Companies	$	(13,161	)	$	(199	)		-9.4	%		-0.2	%
Lloyd’s Operations		13,651			3,346			26.0	%		5.5	%
Total	$	490		$	3,147			0.3	%		1.9	%

News Release

Page 12

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Underwriting Results

($ in thousands)

		September 30,		September 30,		September 30,		September 30,			September 30,			September 30,			September 30,
	Twelve Months Ended December 31, 2011
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Loss			Expense			Combined
	Premiums		Incurred		Expenses		Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	169,018	$	111,209	$	57,471	$	338			65.8	%		34.0	%		99.8	%
Property Casualty		231,297		151,934		77,889		1,474			65.7	%		33.7	%		99.4	%
Professional Liability		72,148		78,482		26,367		(32,701	)		108.8	%		36.5	%		145.3	%
		472,463		341,625		161,727		(30,889	)		72.3	%		34.2	%		106.5	%
Lloyd’s Operations		219,182		135,372		85,510		(1,700	)		61.8	%		39.0	%		100.8	%
Total	$	691,645	$	476,997	$	247,237	$	(32,589	)		69.0	%		35.7	%		104.7	%

		September 30,		September 30,		September 30,		September 30,			September 30,				September 30,			September 30,
	Twelve Months Ended December 31, 2010
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Loss				Expense			Combined
	Premiums		Incurred		Expenses		Profit (Loss)			Ratio				Ratio			Ratio
Insurance Companies:
Marine	$	155,846	$	100,579	$	56,092	$	(825	)		64.5	%			36.0	%		100.5	%
Property Casualty		200,741		110,902		77,040		12,799			55.2	%	��		38.4	%		93.6	%
Professional Liability		82,264		68,639		30,923		(17,298	)		83.4	%			37.6	%		121.0	%
		438,851		280,120		164,055		(5,324	)		63.8	%			37.4	%		101.2	%
Lloyd’s Operations		221,080		141,035		79,615		430			63.8	%			36.0	%		99.8	%
Total	$	659,931	$	421,155	$	243,670	$	(4,894	)		63.8	%			36.9	%		100.7	%

		September 30,		September 30,		September 30,			September 30,
	Amounts				Loss Ratio
Net Incurred Loss Activity For the Twelve Months Ended:	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2011			Dec. 31, 2010
Insurance Companies:
Loss and LAE payments	$	277,823	$	278,969		58.8	%		63.5	%
Change in reserves		63,802		1,151		13.5	%		0.3	%
Net incurred loss and LAE		341,625		280,120		72.3	%		63.8	%
Lloyd’s Operations:
Loss and LAE payments		104,482		112,578		47.7	%		50.9	%
Change in reserves		30,890		28,457		14.1	%		12.9	%
Net incurred loss and LAE		135,372		141,035		61.8	%		63.8	%
Total
Loss and LAE payments		382,305		391,547		55.3	%		59.3	%
Change in reserves		94,692		29,608		13.7	%		4.5	%
Net incurred loss and LAE	$	476,997	$	421,155		69.0	%		63.8	%

		September 30,			September 30,		September 30,			September 30,
Impact of Prior Years Reserves	Amounts					Loss Ratio Impact
Favorable / (Unfavorable) Development For the Twelve Months Ended:	Dec. 31, 2011			Dec. 31, 2010		Dec. 31, 2011			Dec. 31, 2010
Insurance Companies	$	(12,102	)	$	5,455		-2.6	%		1.2	%
Lloyd’s Operations		9,957			8,347		4.5	%		3.8	%
Total	$	(2,145	)	$	13,802		-0.3	%		2.1	%

News Release

Page 13

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Net Loss Data

($ in thousands)

		September 30,		September 30,		September 30,
	Case		IBNR
Net Loss Reserves, December 31, 2011:	Reserves		Reserves		Total
Insurance Companies:
Marine	$	127,912	$	121,875	$	249,787
Property Casualty		185,822		296,177		481,999
Professional Liability		56,953		83,490		140,443
Total Insurance Companies		370,687		501,542		872,229
Lloyd’s Operations:
Marine		117,448		123,136		240,584
Property Casualty		37,877		25,846		63,723
Professional Liability		13,580		47,118		60,698
Total Lloyd’s Operations		168,905		196,100		365,005
Total Net Loss Reserves	$	539,592	$	697,642	$	1,237,234

		September 30,		September 30,		September 30,
	Case		IBNR
Net Loss Reserves, December 31, 2010:	Reserves		Reserves		Total
Insurance Companies:
Marine	$	107,147	$	109,361	$	216,508
Property Casualty		158,740		308,613		467,353
Professional Liability		46,096		78,469		124,565
Total Insurance Companies		311,983		496,443		808,426
Lloyd’s Operations:
Marine		111,914		112,708		224,622
Property Casualty		30,327		29,792		60,119
Professional Liability		9,904		39,471		49,375
Total Lloyd’s Operations		152,145		181,971		334,116
Total Net Loss Reserves	$	464,128	$	678,414	$	1,142,542

News Release

Page 14

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Investment Data

December 31, 2011

As of December 31, 2011, the average quality of the investment portfolio as rated by S&P and Moody’s was AA/Aa with an average duration of 3.6 years. The Company does not own any collateralized debt obligations (CDO’s), collateralized loan obligations (CLO’s) or asset backed commercial paper.

As of December 31, 2011, the Company owned two asset-backed securities approximating $0.8 million with subprime mortgage exposures. The securities have an effective maturity of 1.7 years. In addition, the Company owned a total of seven collateralized mortgage obligations and asset-backed securities approximating $1.9 million classified as Alt-A which is a credit category between prime and subprime. They have an effective maturity of 5.7 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 as of December 31, 2011:

		September 30,		September 30,		September 30,			September 30,		September 30,
December 31, 2011	Fair Value		Gross Unrealized Gains		Gross Unrealized (Losses)			Cost or Amortized Cost		OTTI Recognized in OCI
	($ in thousands)
Fixed maturities:
U.S. Government Treasury bonds, agency bonds and foreign government bonds	$	336,070	$	8,979	$	(383	)	$	327,474	$	—
States, municipalities and political subdivisions		410,836		28,887		(108	)		382,057		—
Mortgage- and asset-backed securities:
Agency mortgage-backed securities		395,860		17,321		(3	)		378,542		—
Residential mortgage obligations		23,148		8		(2,848	)		25,988		(1,682	)
Asset-backed securities		48,934		695		(75	)		48,314		—
Commercial mortgage-backed securities		216,034		10,508		(593	)		206,119		—
Subtotal		683,976		28,532		(3,519	)		658,963		(1,682	)
Corporate bonds		457,187		15,743		(6,772	)		448,216		—
Total fixed maturities		1,888,069		82,141		(10,782	)		1,816,710		(1,682	)
Equity securities — common stocks		95,849		23,240		(958	)		73,567		—
Short-term investments		122,220		—		—			122,220		—
Cash		127,360		—		—			127,360		—
Total	$	2,233,498	$	105,381	$	(11,740	)	$	2,139,857	$	(1,682	)

News Release

Page 15

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Investment Data

December 31, 2011

($ in thousands)

The following tables set forth our agency mortgage-backed securities and residential mortgage obligations, categorized by those issued by GNMA, FNMA and FHLMC and the quality category (prime, Alt-A and subprime) for all other such investments at December 31, 2011:

		September 30,		September 30,		September 30,			September 30,
			Gross		Gross			Cost or
	Fair		Unrealized		Unrealized			Amortized
Agency mortgage-backed securities:	Value		Gains		(Losses)			Cost
GNMA	$	124,612	$	7,113	$	—		$	117,499
FNMA		191,197		8,072		(3	)		183,128
FHLMC		80,051		2,136		—			77,915
Total	$	395,860	$	17,321	$	(3	)	$	378,542

		September 30,		September 30,		September 30,			September 30,
			Gross		Gross			Cost or
	Fair		Unrealized		Unrealized			Amortized
Residential mortgage obligations:	Value		Gains		(Losses)			Cost
Prime	$	12,831	$	8	$	(2,279	)	$	15,102
Alt-A		1,926		—		(527	)		2,453
Subprime		—		—		—			—
Non-US RMBS		8,391		—		(42	)		8,433
Total	$	23,148	$	8	$	(2,848	)	$	25,988