Navigators (NAVG) 8-K Results of Operations and Financial Condition

Exhibit 99.1

The Navigators Group, Inc.

CORPORATE NEWS

Navigators Reports Second

Quarter Earnings

New York – August 7, 2013 — The Navigators Group, Inc. (NASDAQ:NAVG) reported net income of $13.9 million, or $0.97 per diluted share, for the three months ended June 30, 2013 compared to $14.9 million, or $1.05 per diluted share, for the comparable period in 2012. Operating earnings were $11.8 million, or $0.82 per diluted share, for the second quarter of 2013 compared to operating earnings of $12.5 million, or $0.88 per diluted share, for the comparable period in 2012.

For the six months ended June 30, 2013, the Company reported net income of $27.8 million, or $1.93 per diluted share, compared to $22.8 million, or $1.60 per diluted share, for the comparable period in 2012. Operating earnings were $22.6 million, or $1.56 per diluted share, for the six months ended June 30, 2013 compared to $19.3 million, or $1.35 per diluted share, for the comparable period in 2012.

Gross written premiums and net written premiums for the three months ended June 30, 2013 were $332.1 million and $198.5 million, respectively, an increase of 2.8% and 4.3% from the comparable period in 2012. Gross written premiums and net written premiums for the six months ended June 30, 2013 were $725.4 million and $467.9 million, respectively, an increase of 8.9% and 8.0% from the comparable period in 2012.

The combined loss and expense ratio for the three and six months ended June 30, 2013 were 97.7% and 97.8%, respectively, compared to 98.1% and 99.0% for the comparable periods in 2012.

Stan Galanski, President and Chief Executive Officer, commented, “We are pleased with our second quarter results, reflecting solid underwriting profit in marine, specialty casualty and international D&O. We achieved renewal rate increases in most of our specialty product lines and we experienced particularly strong premium growth in our U.S. Excess and Surplus Lines businesses. Our underwriters continued to avoid business that failed to meet our required terms or price. Cash flow for the quarter was strong. Despite a decline in unrealized gains in our bond portfolio as a result of rising interest rates, our investment portfolio performed reasonably well and we remain confident in the quality of our invested assets.”

Stockholders’ equity was $874.0 million, or $61.83 per share, as of June 30, 2013 compared to $879.5 million, or $62.61 per share, as of December 31, 2012.

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 six months ended June 30, 2013 was $14.2 million and $27.9 million, respectively, a decrease of 9.7% and an increase of 3.2% from the comparable periods in 2012. Net investment income for the six months ended June 30, 2012 was reduced by $4.5 million as a result of the settlement of our dispute with Equitas over foregone interest on amounts that were due on certain reinsurance contracts. The annualized pre-tax investment yield, excluding net realized gains and losses, net other-than-temporary impairment losses recognized in earnings, and for 2012 the $4.5 million in interest expense for the settlement of our dispute with Equitas, was 2.4% for both the three and six months ended June 30, 2013, compared to 2.8% for each of the comparable periods in 2012. The effective tax rate on net investment income was 27.6% and 28.0% for the three and six months ended June 30, 2013, respectively, compared to 28.2% and 26.9% for the comparable periods in 2012.

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 as of June 30, 2013. As of June 30, 2013, net unrealized gains within our investment portfolio were $42.6 million, a decrease of $60.7 million compared to December 31, 2012.

There were $3.3 million of net realized gains for the three months ended June 30, 2013 compared to $3.7 million for the same period in 2012. There were no other-than-temporary impairment losses for the three months ended June 30, 2013. For the six months ended June 30, 2013, there were $8.1 million of net realized gains including other-than-temporary impairment losses recognized in earnings, compared to $5.4 million for the same period in 2012.

Consolidated net cash flow from operations for the three and six months ended June 30, 2013 was $44.2 million and $48.5 million, respectively, compared to $(1.3) million and $15.0 million for the comparable periods in 2012.

The Company will hold a conference call on Thursday, August 8, 2013 starting at 8:30 a.m. ET to discuss the 2013 second 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=131762

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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The Navigators Group, Inc. logo is available athttp://www.globenewswire.com/newsroom/prs /?pkgid=7778

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 share and per share data)

(unaudited)

	Three Months Ended									Six Months Ended
	June 30,									June 30,
Results of Operations	2013			2012			Change			2013			2012			Change
Gross written premiums	$	332,128		$	322,987			2.8	%	$	725,350		$	666,136			8.9	%
Net written premiums		198,469			190,252			4.3	%		467,921			433,297			8.0	%
Revenues:
Net earned premiums		205,814			196,017			5.0	%		408,142			379,136			7.7	%
Net investment income		14,246			15,777			-9.7	%		27,903			27,035			3.2	%
Total other-than-temporary impairment losses		—			(496	)		NM			(42	)		(693	)		-93.9	%
Portion of loss recognized in other comprehensive income (before tax)		—			—			NM			—			43			NM
Net other-than-temporary impairment losses recognized in earnings		—			(496	)		NM			(42	)		(650	)		-93.5	%
Net realized gains (losses)		3,345			4,217			-20.7	%		8,159			6,059			34.7	%
Other income		(915	)		387			NM			(297	)		1,298			NM
Total revenues		222,490			215,902			3.1	%		443,865			412,878			7.5	%
Expenses:
Net losses and loss adjustment expenses		131,148			123,407			6.3	%		262,490			241,392			8.7	%
Commission expenses		28,391			29,503			-3.8	%		54,946			58,953			-6.8	%
Other operating expenses		40,678			39,819			2.2	%		81,552			76,126			7.1	%
Interest expense		2,052			2,049			0.1	%		4,103			4,098			0.1	%
Total expenses		202,269			194,778			3.8	%		403,091			380,569			5.9	%
Income before income taxes		20,221			21,124			-4.3	%		40,774			32,309			26.2	%
Income tax expense (benefit)		6,284			6,225			0.9	%		12,927			9,506			36.0	%
Net income (loss)	$	13,937		$	14,899			-6.5	%	$	27,847		$	22,803			22.1	%
Per Share Data
Net income per common share:
Basic	$	0.99		$	1.06			-7.3	%	$	1.97		$	1.63			21.1	%
Diluted	$	0.97		$	1.05			-7.9	%	$	1.93		$	1.60			20.5	%
Average common shares outstanding:
Basic		14,131,422			14,006,361						14,108,747			13,992,901
Diluted		14,428,117			14,208,759						14,434,232			14,245,947
Underwriting Ratios
Loss Ratio		63.7	%		63.0	%					64.3	%		63.7	%
Expense Ratio		34.0	%		35.1	%					33.5	%		35.3	%
Combined Ratio		97.7	%		98.1	%					97.8	%		99.0	%
	June 30, 2013			March 31, 2013						June 30, 2013			Dec. 31, 2012
Balance Sheet Data
Stockholders’ equity	$	873,952		$	896,758			-2.5	%	$	873,952		$	879,485			-0.6	%
Book value per share	$	61.83		$	63.46			-2.6	%	$	61.83		$	62.61			-1.2	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in thousands, except share data)

	June 30,			December 31,
	2013			2012
	(unaudited)
ASSETS
Investments and cash:
Fixed maturities, available-for-sale, at fair value (amortized cost: 2013, $1,988,507; 2012, $2,034,765)	$	2,007,806		$	2,121,833
Equity securities, available-for-sale, at fair value (cost: 2013, $115,221; 2012, $85,004)		138,549			101,297
Short-term investments, at cost which approximates fair value		124,726			153,788
Cash		101,960			45,336
Total investments and cash		2,373,041			2,422,254
Premiums receivable		394,395			320,182
Prepaid reinsurance premiums		251,046			221,015
Reinsurance recoverable on paid losses		52,569			49,282
Reinsurance recoverable on unpaid losses and loss adjustment expenses		881,962			880,139
Deferred policy acquisition costs		65,109			61,005
Accrued investment income		13,691			12,587
Goodwill and other intangible assets		6,785			7,093
Deferred income tax, net		25,882			3,216
Receivable for investments sold		25			4,310
Other assets		32,005			26,587
Total assets	$	4,096,510		$	4,007,670
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserves for losses and loss adjustment expenses	$	2,116,384		$	2,097,048
Unearned premiums		729,568			642,407
Reinsurance balances payable		183,683			165,813
Senior notes		114,502			114,424
Current income tax payable, net		6,324			2,133
Payable for investments purchased		21,428			58,345
Accounts payable and other liabilities		50,669			48,015
Total liabilities		3,222,558			3,128,185
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 17,645,043 shares for 2013 and 17,558,046 shares for 2012		1,764			1,755
Additional paid-in capital		333,954			329,452
Treasury stock, at cost (3,511,380 shares for 2013 and 2012)		(155,801	)		(155,801	)
Retained earnings		656,718			628,871
Accumulated other comprehensive income		37,317			75,208
Total stockholders’ equity		873,952			879,485
Total liabilities and stockholders’ equity	$	4,096,510		$	4,007,670

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Comparative Premium Data

($ in thousands)

	Three Months							Six Months
	2013		2012		Change			2013		2012		Change
Gross Written Premiums:
Insurance Companies:
Marine	$	43,077	$	49,896		-13.7	%	$	93,924	$	111,761		-16.0	%
Property Casualty		152,095		130,627		16.4	%		371,059		286,546		29.5	%
Professional Liability		33,393		33,541		-0.4	%		65,210		64,095		1.7	%
		228,565		214,064		6.8	%		530,193		462,402		14.7	%
Lloyd’s Operations:
Marine		45,893		47,037		-2.4	%		99,537		108,812		-8.5	%
Property Casualty		41,217		48,978		-15.8	%		66,275		73,274		-9.6	%
Professional Liability		16,453		12,908		27.5	%		29,345		21,648		35.6	%
		103,563		108,923		-4.9	%		195,157		203,734		-4.2	%
Total	$	332,128	$	322,987		2.8	%	$	725,350	$	666,136		8.9	%
	Three Months							Six Months
	2013		2012		Change			2013		2012		Change
Net Written Premiums:
Insurance Companies:
Marine	$	27,366	$	31,786		-13.9	%	$	68,507	$	74,651		-8.2	%
Property Casualty		90,711		76,842		18.0	%		240,662		191,374		25.8	%
Professional Liability		25,303		25,437		-0.5	%		50,530		49,290		2.5	%
		143,380		134,065		6.9	%		359,699		315,315		14.1	%
Lloyd’s Operations:
Marine		34,060		33,492		1.7	%		73,618		81,550		-9.7	%
Property Casualty		12,181		15,705		-22.4	%		19,493		25,060		-22.2	%
Professional Liability		8,848		6,990		26.6	%		15,111		11,372		32.9	%
		55,089		56,187		-2.0	%		108,222		117,982		-8.3	%
Total	$	198,469	$	190,252		4.3	%	$	467,921	$	433,297		8.0	%
	Three Months							Six Months
	2013		2012		Change			2013		2012		Change
Net Earned Premiums:
Insurance Companies:
Marine	$	31,798	$	35,535		-10.5	%	$	68,523	$	70,810		-3.2	%
Property Casualty		99,477		82,175		21.1	%		192,195		156,543		22.8	%
Professional Liability		25,272		23,867		5.9	%		50,160		45,772		9.6	%
		156,547		141,577		10.6	%		310,878		273,125		13.8	%
Lloyd’s Operations:
Marine		34,623		34,272		1.0	%		68,668		67,536		1.7	%
Property Casualty		8,562		15,272		-43.9	%		16,441		29,774		-44.8	%
Professional Liability		6,082		4,896		24.2	%		12,155		8,701		39.7	%
		49,267		54,440		-9.5	%		97,264		106,011		-8.3	%
Total	$	205,814	$	196,017		5.0	%	$	408,142	$	379,136		7.7	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Segment Information

Three Months Ended

June 30, 2013

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate (1)			Total
Gross written premiums	$	228,565		$	103,563		$	—		$	332,128
Net written premiums		143,380			55,089			—			198,469
Net earned premiums		156,547			49,267			—			205,814
Net losses and loss adjustment expenses		(106,668	)		(24,480	)		—			(131,148	)
Commission expenses		(20,573	)		(8,335	)		517			(28,391	)
Other operating expenses		(29,829	)		(10,849	)		—			(40,678	)
Other income (expense)		689			(1,087	)		(517	)		(915	)
Underwriting profit (loss)		166			4,516			—			4,682
Net investment income		12,515			1,728			3			14,246
Net realized gains (losses)		3,099			242			4			3,345
Interest expense		—			—			(2,052	)		(2,052	)
Income (loss) before income taxes		15,780			6,486			(2,045	)		20,221
Income tax expense (benefit)		4,785			2,206			(707	)		6,284
Net income (loss)	$	10,995		$	4,280		$	(1,338	)	$	13,937
Losses and loss adjustment expenses ratio		68.1	%		49.7	%					63.7	%
Commission expense ratio		13.1	%		16.9	%					13.8	%
Other operating expense ratio(2)		18.7	%		24.2	%					20.2	%
Combined ratio		99.9	%		90.8	%					97.7	%

(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

Three Months Ended

June 30, 2012

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate (1)			Total
Gross written premiums	$	214,064		$	108,923		$	—		$	322,987
Net written premiums		134,065			56,187			—			190,252
Net earned premiums		141,577			54,440			—			196,017
Net losses and loss adjustment expenses		(100,003	)		(23,404	)		—			(123,407	)
Commission expenses		(21,117	)		(8,938	)		552			(29,503	)
Other operating expenses		(28,914	)		(10,905	)		—			(39,819	)
Other income (expense)		879			60			(552	)		387
Underwriting profit (loss)		(7,578	)		11,253			—			3,675
Net investment income		13,286			2,454			37			15,777
Net realized gains (losses)		2,325			1,396			—			3,721
Interest expense		—			—			(2,049	)		(2,049	)
Income (loss) before income taxes		8,033			15,103			(2,012	)		21,124
Income tax expense (benefit)		2,101			5,207			(1,083	)		6,225
Net income (loss)	$	5,932		$	9,896		$	(929	)	$	14,899
Losses and loss adjustment expenses ratio		70.6	%		43.0	%					63.0	%
Commission expense ratio		14.9	%		16.4	%					15.1	%
Other operating expense ratio(2)		19.9	%		19.9	%					20.0	%
Combined ratio		105.4	%		79.3	%					98.1	%

(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

Six Months Ended

June 30, 2013

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate (1)			Total
Gross written premiums	$	530,193		$	195,157		$	—		$	725,350
Net written premiums		359,699			108,222			—			467,921
Net earned premiums		310,878			97,264			—			408,142
Net losses and loss adjustment expenses		(213,653	)		(48,837	)		—			(262,490	)
Commission expenses		(39,090	)		(16,956	)		1,100			(54,946	)
Other operating expenses		(59,172	)		(22,380	)		—			(81,552	)
Other income (expense)		1,348			(545	)		(1,100	)		(297	)
Underwriting profit (loss)		311			8,546			—			8,857
Net investment income		24,466			3,430			7			27,903
Net realized gains (losses)		7,891			222			4			8,117
Interest expense		—						(4,103	)		(4,103	)
Income (loss) before income taxes		32,668			12,198			(4,092	)		40,774
Income tax expense (benefit)		10,199			4,242			(1,514	)		12,927
Net income (loss)	$	22,469		$	7,956		$	(2,578	)	$	27,847
Losses and loss adjustment expenses ratio		68.7	%		50.2	%					64.3	%
Commission expense ratio		12.6	%		17.4	%					13.5	%
Other operating expense ratio(2)		18.6	%		23.6	%					20.0	%
Combined ratio		99.9	%		91.2	%					97.8	%

(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

Six Months Ended

June 30, 2012

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate (1)			Total
Gross written premiums	$	462,402		$	203,734		$	—		$	666,136
Net written premiums		315,315			117,982			—			433,297
Net earned premiums		273,125			106,011			—			379,136
Net losses and loss adjustment expenses		(191,180	)		(50,212	)		—			(241,392	)
Commission expenses		(40,418	)		(19,824	)		1,289			(58,953	)
Other operating expenses		(54,259	)		(21,867	)		—			(76,126	)
Other income (expense)		2,521			66			(1,289	)		1,298
Underwriting profit (loss)		(10,211	)		14,174			—			3,963
Net investment income		22,221			4,737			77			27,035
Net realized gains (losses)		4,200			1,209			—			5,409
Interest expense		—			—			(4,098	)		(4,098	)
Income (loss) before income taxes		16,210			20,120			(4,021	)		32,309
Income tax expense (benefit)		3,980			6,933			(1,407	)		9,506
Net income (loss)	$	12,230		$	13,187		$	(2,614	)	$	22,803
Losses and loss adjustment expenses ratio		70.0	%		47.4	%					63.7	%
Commission expense ratio		14.8	%		18.7	%					15.5	%
Other operating expense ratio(2)		18.9	%		20.5	%					19.8	%
Combined ratio		103.7	%		86.6	%					99.0	%

(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)

	Three Months Ended June 30, 2013
	Net		Losses
	Earned		and LAE			Underwriting		Underwriting			Loss			Expense			Combined
	Premiums		Incurred			Expenses		Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	31,798	$	17,295		$	13,124	$	1,379			54.4	%		41.3	%		95.7	%
Property Casualty		99,477		70,757			27,999		721			71.1	%		28.2	%		99.3	%
Professional Liability		25,272		18,616			8,590		(1,934	)		73.7	%		34.0	%		107.7	%
Total Insurance Companies		156,547		106,668			49,713		166			68.1	%		31.8	%		99.9	%
Lloyd’s Operations:
Marine		34,623		18,218			14,914		1,491			52.6	%		43.1	%		95.7	%
Property Casualty		8,562		6,795			3,272		(1,505	)		79.4	%		38.2	%		117.6	%
Professional Liability		6,082		(533	)		2,085		4,530			-8.8	%		34.3	%		25.5	%
Total Lloyd’s		49,267		24,480			20,271		4,516			49.7	%		41.1	%		90.8	%
Total All	$	205,814	$	131,148		$	69,984	$	4,682			63.7	%		34.0	%		97.7	%
	Three Months Ended June 30, 2012
	Net		Losses
	Earned		and LAE			Underwriting		Underwriting			Loss			Expense			Combined
	Premiums		Incurred			Expenses		Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	35,535	$	30,283		$	13,516	$	(8,264	)		85.2	%		38.1	%		123.3	%
Property Casualty		82,175		49,724			26,628		5,823			60.5	%		32.4	%		92.9	%
Professional Liability		23,867		19,996			9,008		(5,137	)		83.8	%		37.7	%		121.5	%
Total Insurance Companies		141,577		100,003			49,152		(7,578	)		70.6	%		34.8	%		105.4	%
Lloyd’s Operations:
Marine		34,272		12,730			13,362		8,180			37.1	%		39.0	%		76.1	%
Property Casualty		15,272		7,724			4,612		2,936			50.6	%		30.2	%		80.8	%
Professional Liability		4,896		2,950			1,809		137			60.3	%		36.9	%		97.2	%
Total Lloyd’s		54,440		23,404			19,783		11,253			43.0	%		36.3	%		79.3	%
Total All	$	196,017	$	123,407		$	68,935	$	3,675			63.0	%		35.1	%		98.1	%

	Amounts						Loss Ratio
	June 30,			June 30,			June 30,			June 30,
	2013			2012			2013			2012
Net Incurred Loss Activity For the Three Months Ended:
Insurance Companies:
Loss and LAE payments	$	100,920		$	90,311			64.4	%		63.8	%
Change in reserves		5,748			9,692			3.7	%		6.8	%
Net incurred loss and LAE		106,668			100,003			68.1	%		70.6	%
Lloyd’s Operations:
Loss and LAE payments		27,428			30,641			55.7	%		56.3	%
Change in reserves		(2,948	)		(7,237	)		-6.0	%		-13.3	%
Net incurred loss and LAE		24,480			23,404			49.7	%		43.0	%
Total
Loss and LAE payments		128,348			120,952			62.3	%		61.7	%
Change in reserves		2,800			2,455			1.4	%		1.3	%
Net incurred loss and LAE	$	131,148		$	123,407			63.7	%		63.0	%
	Amounts						Loss Ratio Impact
��	June 30, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Impact of Prior Years Reserves
Favorable / (Unfavorable) DevelopmentFor the Three Months Ended:
Insurance Companies	$	(7,747	)	$	(626	)		-3.8	%		-0.3	%
Lloyd’s Operations		5,834			5,998			2.8	%		3.0	%
Total	$	(1,913	)	$	5,372			-1.0	%		2.7	%

News Release

August 7, 2013

Page 12

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Underwriting Results

($ in thousands)

	Six Months Ended June 30, 2013
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Loss			Expense			Combined
	Premiums		Incurred		Expenses		Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	68,523	$	40,680	$	25,952	$	1,891			59.4	%		37.8	%		97.2	%
Property Casualty		192,195		131,995		54,641		5,559			68.7	%		28.4	%		97.1	%
Professional Liability		50,160		40,978		16,321		(7,139	)		81.7	%		32.5	%		114.2	%
Total Insurance Companies		310,878		213,653		96,914		311			68.7	%		31.2	%		99.9	%
Lloyd’s Operations:
Marine		68,668		37,055		28,026		3,587			54.0	%		40.8	%		94.8	%
Property Casualty		16,441		7,546		7,681		1,214			45.9	%		46.7	%		92.6	%
Professional Liability		12,155		4,236		4,174		3,745			34.9	%		34.3	%		69.2	%
Total Lloyd’s		97,264		48,837		39,881		8,546			50.2	%		41.0	%		91.2	%
Total All	$	408,142	$	262,490	$	136,795	$	8,857			64.3	%		33.5	%		97.8	%
	Six Months Ended June 30, 2012
	Net		Losses
	Earned		and LAE		Underwriting		Underwriting			Loss			Expense			Combined
	Premiums		Incurred		Expenses		Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	70,810	$	58,053	$	26,171	$	(13,414	)		82.0	%		36.9	%		118.9	%
Property Casualty		156,543		97,872		49,482		9,189			62.5	%		31.6	%		94.1	%
Professional Liability		45,772		35,255		16,503		(5,986	)		77.0	%		36.1	%		113.1	%
Total Insurance Companies		273,125		191,180		92,156		(10,211	)		70.0	%		33.7	%		103.7	%
Lloyd’s Operations:
Marine		67,536		34,288		28,044		5,204			50.8	%		41.5	%		92.3	%
Property Casualty		29,774		11,772		9,671		8,331			39.5	%		32.5	%		72.0	%
Professional Liability		8,701		4,152		3,910		639			47.7	%		45.0	%		92.7	%
Total Lloyd’s		106,011		50,212		41,625		14,174			47.4	%		39.2	%		86.6	%
Total All	$	379,136	$	241,392	$	133,781	$	3,963			63.7	%		35.3	%		99.0	%

	Amounts						Loss Ratio
	June 30,			June 30,			June 30,			June 30,
	2013			2012			2013			2012
Net Incurred Loss Activity For the Six Months Ended:
Insurance Companies:
Loss and LAE payments	$	180,824		$	183,963			58.1	%		67.4	%
Change in reserves		32,829			7,217			10.6	%		2.6	%
Net incurred loss and LAE		213,653			191,180			68.7	%		70.0	%
Lloyd’s Operations:
Loss and LAE payments		57,890			55,285			59.5	%		52.2	%
Change in reserves		(9,053	)		(5,073	)		-9.3	%		-4.8	%
Net incurred loss and LAE		48,837			50,212			50.2	%		47.4	%
Total
Loss and LAE payments		238,714			239,248			58.5	%		63.1	%
Change in reserves		23,776			2,144			5.8	%		0.6	%
Net incurred loss and LAE	$	262,490		$	241,392			64.3	%		63.7	%
	Amounts						Loss Ratio Impact
	June 30,			June 30,			June 30,			June 30,
	2013			2012			2013			2012
Impact of Prior Years Reserves
Favorable / (Unfavorable) Development For the Six Months Ended:
Insurance Companies	$	(15,477	)	$	2,090			-3.8	%		0.5	%
Lloyd’s Operations		9,481			10,148			2.3	%		2.7	%
Total	$	(5,996	)	$	12,238			-1.5	%		3.2	%

News Release

August 7, 2013

Page 13

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Net Loss Data

($ in thousands)

	Case Reserves		IBNR Reserves		Total
Net Loss Reserves, June 30, 2013:
Insurance Companies:
Marine	$	141,418	$	107,916	$	249,334
Property Casualty		210,556		305,808		516,364
Professional Liability		73,057		80,272		153,329
Total Insurance Companies		425,031		493,996		919,027
Lloyd’s Operations:
Marine		128,066		87,754		215,820
Property Casualty		28,737		20,837		49,574
Professional Liability		12,512		37,489		50,001
Total Lloyd’s Operations		169,315		146,080		315,395
Total Net Loss Reserves	$	594,346	$	640,076	$	1,234,422
	Case Reserves		IBNR Reserves		Total
Net Loss Reserves, December 31, 2012
Insurance Companies:
Marine	$	137,934	$	114,236	$	252,170
Property Casualty		204,988		290,455		495,443
Professional Liability		54,092		84,493		138,585
Total Insurance Companies		397,014		489,184		886,198
Lloyd’s Operations:
Marine		125,884		95,122		221,006
Property Casualty		27,903		28,463		56,366
Professional Liability		14,694		38,645		53,339
Total Lloyd’s Operations		168,481		162,230		330,711
Total Net Loss Reserves	$	565,495	$	651,414	$	1,216,909

News Release

August 7, 2013

Page 14

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Investment Data

June 30, 2013

As of June 30, 2013, 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.

As of June 30, 2013, the Company owned two asset-backed securities approximating $0.6 million with subprime mortgage exposures. The securities have an effective maturity of 4.3 years. In addition, the Company owned a total of seven collateralized mortgage obligations and asset-backed securities approximating $2.1 million classified as Alt-A which is a credit category between prime and subprime. They have an effective maturity of 5.1 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 June 30, 2013:

June 30, 2013	Fair Value		Gross Unrealized Gains		Gross Unrealized (Losses)			Cost or Amortized Cost
	($ in thousands)
Fixed maturities:
U.S.Treasury bonds, agency bonds and foreign government bonds	$	464,167	$	3,538	$	(7,492	)	$	468,121
States, municipalities and political subdivisions		452,084		10,281		(13,114	)		454,917
Mortgage- and asset-backed securities:
Agency mortgage-backed securities		320,150		7,782		(4,645	)		317,013
Residential mortgage obligations		37,335		1,196		(221	)		36,360
Asset-backed securities		75,311		747		(113	)		74,677
Commercial mortgage-backed securities		173,388		8,731		(514	)		165,171
Subtotal		606,184		18,456		(5,493	)		593,221
Corporate bonds		485,371		16,285		(3,162	)		472,248
Total fixed maturities		2,007,806		48,560		(29,261	)		1,988,507
Equity securities - common stocks		138,549		25,238		(1,910	)		115,221
Short-term investments		124,726		—		—			124,726
Cash		101,960		—		—			101,960
Total	$	2,373,041	$	73,798	$	(31,171	)	$	2,330,414

News Release

August 7, 2013

Page 15

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Investment Data

June 30, 2013

($ 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 June 30, 2013:

	Fair Value		Gross Unrealized Gains		Gross Unrealized (Losses)			Cost or Amortized Cost
Agency mortgage-backed securities:
GNMA	$	120,673	$	2,892	$	(2,759	)	$	120,540
FNMA		154,398		4,115		(1,634	)		151,917
FHLMC		45,079		775		(252	)		44,556
Total	$	320,150	$	7,782	$	(4,645	)	$	317,013
	Fair Value		Gross Unrealized Gains		Gross Unrealized (Losses)			Cost or Amortized Cost
Residential mortgage obligations:
Prime	$	11,872	$	423	$	(183	)	$	11,632
Alt-A		2,111		110		(38	)		2,039
Subprime		630		27		—			603
Non-US RMBS		22,722		636		—			22,086
Total	$	37,335	$	1,196	$	(221	)	$	36,360