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

Exhibit 99.1

	The Navigators Group, Inc.
	CORPORATE NEWS

Navigators Reports Third Quarter Earnings

Stamford, CT – November 7, 2013 — The Navigators Group, Inc. (NASDAQ:NAVG) reported net income of $21.3 million, or $1.48 per diluted share, for the three months ended September 30, 2013 compared to $12.9 million, or $0.90 per diluted share, for the comparable period in 2012. Operating earnings were $23.1 million, or $1.60 per diluted share, for the third quarter of 2013 compared to operating earnings of $9.8 million, or $0.69 per diluted share, for the comparable period in 2012.

For the nine months ended September 30, 2013, the Company reported net income of $49.1 million, or $3.42 per diluted share, compared to $35.7 million, or $2.51 per diluted share, for the comparable period in 2012. Operating earnings were $45.7 million, or $3.18 per diluted share, for the nine months ended September 30, 2013 compared to $29.1 million, or $2.04 per diluted share, for the comparable period in 2012.

Gross written premiums and net written premiums for the three months ended September 30, 2013 were $312.1 million and $196.6 million, respectively, an increase of 4.5% and 4.5% from the comparable period in 2012. Gross written premiums and net written premiums for the nine months ended September 30, 2013 were $1,037.4 million and $664.5 million, respectively, an increase of 7.5% and 6.9% from the comparable period in 2012.

The combined loss and expense ratio for the three and nine months ended September 30, 2013 were 89.8% and 95.1%, respectively, compared to 99.1% and 99.0% for the comparable periods in 2012.

Stan Galanski, President and Chief Executive Officer, commented, “We are pleased to report a combined ratio of 89.8% for the quarter, which has resulted in record quarterly operating earnings per share of $1.60. Our quarterly results were led by strong underwriting performance in our global marine, global energy and U.S. excess and surplus lines units. We experienced solid premium growth, led by double digit growth in our Navigators Specialty division. We continue to focus on controlling operating expenses in the aggregate while investing in expanding our intellectual capital and technology initiatives.”

Stockholders’ equity was $899.9 million, or $63.61 per share, as of September 30, 2013 compared to $879.5 million, or $62.61 per share, as of December 31, 2012.

Net investment income for the three and nine months ended September 30, 2013 was $14.1 million and $42.0 million, respectively, an increase of 3.7% and 3.4% from the comparable periods in 2012. Net investment income for the nine months ended September 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 nine months ended September 30, 2013, compared to 2.4% and 2.7% for each of the comparable periods in 2012. The effective tax rate on net investment income was 27.5% and 27.9% for the three and nine months ended September 30, 2013, respectively, compared to 26.6% and 26.8% for the comparable periods in 2012.

400 Atlantic Street	Stamford, CT 06901
TEL (203) 905-6090	FAX (203) 658-1821

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November 7, 2013

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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 3.9 years as of September 30, 2013. As of September 30, 2013, net unrealized gains within our investment portfolio were $51.1 million, a decrease of $52.2 million compared to December 31, 2012.

There were $2.8 million of net realized losses including other-than-temporary impairment losses recognized in earnings for the three months ended September 30, 2013 compared to $4.8 million of net realized gains for the same period in 2012. For the nine months ended September 30, 2013, there were $5.3 million of net realized gains including other-than-temporary impairment losses recognized in earnings, compared to $10.2 million for the same period in 2012.

Consolidated net cash flow from operations for the three and nine months ended September 30, 2013 was $81.5 million and $130.0 million, respectively, compared to $54.1 million and $69.1 million for the comparable periods in 2012.

The Company will hold a conference call on Friday, November 8, 2013 starting at 8:30 a.m. ET to discuss the 2013 third 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://www.media-server.com/m/p/6q4eew4g

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. With its corporate headquarters in Connecticut and insurance operations based in New York and London, Navigators has offices in major insurance centers in the United States, the United Kingdom and Continental Europe, as well as representatives in China and Brazil.

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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
	(203) 905-6343
	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									Nine Months Ended
	September 30,									September 30,
Results of Operations	2013			2012			Change			2013			2012			Change
Gross written premiums	$	312,076		$	298,742			4.5	%	$	1,037,426		$	964,878			7.5	%
Net written premiums		196,556			188,046			4.5	%		664,477			621,343			6.9	%
Revenues:
Net earned premiums		213,895			201,262			6.3	%		622,037			580,398			7.2	%
Net investment income		14,094			13,597			3.7	%		41,997			40,632			3.4	%
Total other-than-temporary impairment losses		(1,821	)		—			NM			(1,863	)		(693	)		NM
Portion of loss recognized in other comprehensive income (before tax)		—			—			NM			—			43			NM
Net other-than-temporary impairment losses recognized in earnings		(1,821	)		—			NM			(1,863	)		(650	)		NM
Net realized gains (losses)		(988	)		4,761			NM			7,171			10,820			-33.7	%
Other income		(210	)		789			NM			(507	)		2,087			NM
Total revenues		224,970			220,409			2.1	%		668,835			633,287			5.6	%
Expenses:
Net losses and loss adjustment expenses		125,086			128,850			-2.9	%		387,576			370,242			4.7	%
Commission expenses		27,685			31,258			-11.4	%		82,631			90,211			-8.4	%
Other operating expenses		39,056			40,112			-2.6	%		120,608			116,238			3.8	%
Interest expense		2,053			2,049			0.2	%		6,156			6,147			0.1	%
Total expenses		193,880			202,269			-4.1	%		596,971			582,838			2.4	%
Income before income taxes		31,090			18,140			71.4	%		71,864			50,449			42.4	%
Income tax expense (benefit)		9,804			5,225			87.6	%		22,731			14,731			54.3	%
Net income (loss)	$	21,286		$	12,915			64.8	%	$	49,133		$	35,718			37.6	%
Per Share Data
Net income per common share:
Basic	$	1.50		$	0.92			63.4	%	$	3.48		$	2.55			36.4	%
Diluted	$	1.48		$	0.90			63.3	%	$	3.42		$	2.51			36.4	%
Average common shares outstanding:
Basic		14,144,478			14,026,855						14,120,788			14,004,302
Diluted		14,408,413			14,272,477						14,379,943			14,255,301
Underwriting Ratios
Loss Ratio		58.5	%		64.0	%					62.3	%		63.8	%
Expense Ratio		31.3	%		35.1	%					32.8	%		35.2	%
Combined Ratio		89.8	%		99.1	%					95.1	%		99.0	%
	Sept. 30,			June 30,						Sept. 30,			Dec. 31,
Balance Sheet Data	2013			2013						2013			2012
Stockholders’ equity	$	899,882		$	873,952			3.0	%	$	899,882		$	879,485			2.3	%
Book value per share	$	63.61		$	61.83			2.9	%	$	63.61		$	62.61			1.6	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in thousands, except share data)

	September 30,			December 31,
	2013			2012
	(unaudited)
ASSETS
Investments and cash:
Fixed maturities, available-for-sale, at fair value (amortized cost: 2013, $1,958,434; 2012, $2,034,765)	$	1,981,731		$	2,121,833
Equity securities, available-for-sale, at fair value (cost: 2013, $131,046; 2012, $85,004)		158,890			101,297
Short-term investments, at cost which approximates fair value		152,987			153,788
Cash		130,513			45,336
Total investments and cash		2,424,121			2,422,254
Premiums receivable		355,578			320,182
Prepaid reinsurance premiums		253,435			221,015
Reinsurance recoverable on paid losses		44,955			49,282
Reinsurance recoverable on unpaid losses and loss adjustment expenses		796,289			880,139
Deferred policy acquisition costs		63,171			61,005
Accrued investment income		13,746			12,587
Goodwill and other intangible assets		7,065			7,093
Deferred income tax, net		22,639			3,216
Receivable for investments sold		59,453			4,310
Other assets		34,124			26,587
Total assets	$	4,074,576		$	4,007,670
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserves for losses and loss adjustment expenses	$	2,050,720		$	2,097,048
Unearned premiums		716,236			642,407
Reinsurance balances payable		180,563			165,813
Senior notes		114,542			114,424
Current income tax payable, net		5,449			2,133
Payable for investments purchased		48,855			58,345
Accounts payable and other liabilities		58,329			48,015
Total liabilities		3,174,694			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 17,658,292 shares for 2013 and 17,558,046 shares for 2012		1,765			1,755
Additional paid-in capital		334,421			329,452
Treasury stock, at cost (3,511,380 shares for 2013 and 2012)		(155,801	)		(155,801	)
Retained earnings		678,004			628,871
Accumulated other comprehensive income		41,493			75,208
Total stockholders’ equity		899,882			879,485
Total liabilities and stockholders’ equity	$	4,074,576		$	4,007,670

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Comparative Premium Data

($ in thousands)

	Three Months							Nine Months
	2013		2012		Change			2013		2012		Change
Gross Written Premiums:
Insurance Companies:
Marine	$	38,912	$	44,879		-13.3	%	$	132,836	$	156,640		-15.2	%
Property Casualty		156,228		139,948		11.6	%		527,287		426,494		23.6	%
Professional Liability		32,469		33,534		-3.2	%		97,679		97,629		0.1	%
		227,609		218,361		4.2	%		757,802		680,763		11.3	%
Lloyd’s Operations:
Marine		36,009		37,716		-4.5	%		135,546		146,528		-7.5	%
Property Casualty		35,869		32,789		9.4	%		102,144		106,063		-3.7	%
Professional Liability		12,589		9,876		27.5	%		41,934		31,524		33.0	%
		84,467		80,381		5.1	%		279,624		284,115		-1.6	%
Total	$	312,076	$	298,742		4.5	%	$	1,037,426	$	964,878		7.5	%
	Three Months							Nine Months
	2013		2012		Change			2013		2012		Change
Net Written Premiums:
Insurance Companies:
Marine	$	26,437	$	32,615		-18.9	%	$	94,944	$	107,266		-11.5	%
Property Casualty		97,553		83,449		16.9	%		338,215		274,823		23.1	%
Professional Liability		25,300		26,084		-3.0	%		75,830		75,374		0.6	%
		149,290		142,148		5.0	%		508,989		457,463		11.3	%
Lloyd’s Operations:
Marine		26,795		27,939		-4.1	%		100,413		109,489		-8.3	%
Property Casualty		13,761		11,633		18.3	%		33,254		36,693		-9.4	%
Professional Liability		6,710		6,326		6.1	%		21,821		17,698		23.3	%
		47,266		45,898		3.0	%		155,488		163,880		-5.1	%
Total	$	196,556	$	188,046		4.5	%	$	664,477	$	621,343		6.9	%
	Three Months							Nine Months
	2013		2012		Change			2013		2012		Change
Net Earned Premiums:
Insurance Companies:
Marine	$	31,490	$	40,592		-22.4	%	$	100,013	$	111,402		-10.2	%
Property Casualty		105,759		83,993		25.9	%		297,954		240,536		23.9	%
Professional Liability		25,713		24,505		4.9	%		75,873		70,277		8.0	%
		162,962		149,090		9.3	%		473,840		422,215		12.2	%
Lloyd’s Operations:
Marine		34,264		34,002		0.8	%		102,932		101,538		1.4	%
Property Casualty		10,472		11,870		-11.8	%		26,913		41,644		-35.4	%
Professional Liability		6,197		6,300		-1.6	%		18,352		15,001		22.3	%
		50,933		52,172		-2.4	%		148,197		158,183		-6.3	%
Total	$	213,895	$	201,262		6.3	%	$	622,037	$	580,398		7.2	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Segment Information

Three Months Ended

September 30, 2013

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate (1)			Total
Gross written premiums	$	227,609		$	84,467		$	—		$	312,076
Net written premiums		149,290			47,266			—			196,556
Net earned premiums		162,962			50,933			—			213,895
Net losses and loss adjustment expenses		(95,315	)		(29,771	)		—			(125,086	)
Commission expenses		(20,039	)		(8,289	)		643			(27,685	)
Other operating expenses		(28,510	)		(10,546	)		—			(39,056	)
Other income (expense)		955			(522	)		(643	)		(210	)
Underwriting profit (loss)		20,053			1,805			—			21,858
Net investment income		12,285			1,807			2			14,094
Net realized gains (losses)		(1,890	)		(919	)		—			(2,809	)
Interest expense		—			—			(2,053	)		(2,053	)
Income (loss) before income taxes		30,448			2,693			(2,051	)		31,090
Income tax expense (benefit)		9,355			878			(429	)		9,804
Net income (loss)	$	21,093		$	1,815		$	(1,622	)	$	21,286
Losses and loss adjustment expenses ratio		58.5	%		58.5	%					58.5	%
Commission expense ratio		12.3	%		16.3	%					12.9	%
Other operating expense ratio(2)		16.9	%		21.7	%					18.4	%
Combined ratio		87.7	%		96.5	%					89.8	%

(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

Three Months Ended

September 30, 2012

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate (1)			Total
Gross written premiums	$	218,361		$	80,381		$	—		$	298,742
Net written premiums		142,148			45,898			—			188,046
Net earned premiums		149,090			52,172			—			201,262
Net losses and loss adjustment expenses		(113,303	)		(15,547	)		—			(128,850	)
Commission expenses		(20,827	)		(10,911	)		480			(31,258	)
Other operating expenses		(29,387	)		(10,725	)		—			(40,112	)
Other income (expense)		1,229			40			(480	)		789
Underwriting profit (loss)		(13,198	)		15,029			—			1,831
Net investment income		12,004			1,552			41			13,597
Net realized gains (losses)		2,609			2,152			—			4,761
Interest expense		—			—			(2,049	)		(2,049	)
Income (loss) before income taxes		1,415			18,733			(2,008	)		18,140
Income tax expense (benefit)		(377	)		6,525			(923	)		5,225
Net income (loss)	$	1,792		$	12,208		$	(1,085	)	$	12,915
Losses and loss adjustment expenses ratio		76.0	%		29.8	%					64.0	%
Commission expense ratio		14.0	%		20.9	%					15.5	%
Other operating expense ratio(2)		18.9	%		20.5	%					19.6	%
Combined ratio		108.9	%		71.2	%					99.1	%

(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

Nine Months Ended

September 30, 2013

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate (1)			Total
Gross written premiums	$	757,802		$	279,624		$	—		$	1,037,426
Net written premiums		508,989			155,488			—			664,477
Net earned premiums		473,840			148,197			—			622,037
Net losses and loss adjustment expenses		(308,968	)		(78,608	)		—			(387,576	)
Commission expenses		(59,129	)		(25,245	)		1,743			(82,631	)
Other operating expenses		(87,682	)		(32,926	)		—			(120,608	)
Other income (expense)		2,303			(1,067	)		(1,743	)		(507	)
Underwriting profit (loss)		20,364			10,351			—			30,715
Net investment income		36,751			5,237			9			41,997
Net realized gains (losses)		6,001			(697	)		4			5,308
Interest expense		—			—			(6,156	)		(6,156	)
Income (loss) before income taxes		63,116			14,891			(6,143	)		71,864
Income tax expense (benefit)		19,554			5,120			(1,943	)		22,731
Net income (loss)	$	43,562		$	9,771		$	(4,200	)	$	49,133
Losses and loss adjustment expenses ratio		65.2	%		53.0	%					62.3	%
Commission expense ratio		12.5	%		17.0	%					13.3	%
Other operating expense ratio(2)		18.0	%		23.0	%					19.5	%
Combined ratio		95.7	%		93.0	%					95.1	%

(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

Nine Months Ended

September 30, 2012

($ in thousands)

	Insurance			Lloyd’s
	Companies			Operations			Corporate (1)			Total
Gross written premiums	$	680,763		$	284,115		$	—		$	964,878
Net written premiums		457,463			163,880			—			621,343
Net earned premiums		422,215			158,183			—			580,398
Net losses and loss adjustment expenses		(304,483	)		(65,759	)		—			(370,242	)
Commission expenses		(61,245	)		(30,735	)		1,769			(90,211	)
Other operating expenses		(83,646	)		(32,592	)		—			(116,238	)
Other income (expense)		3,750			106			(1,769	)		2,087
Underwriting profit (loss)		(23,409	)		29,203			—			5,794
Net investment income		34,225			6,289			118			40,632
Net realized gains (losses)		6,809			3,361			—			10,170
Interest expense		—			—			(6,147	)		(6,147	)
Income (loss) before income taxes		17,625			38,853			(6,029	)		50,449
Income tax expense (benefit)		3,603			13,458			(2,330	)		14,731
Net income (loss)	$	14,022		$	25,395		$	(3,699	)	$	35,718
Losses and loss adjustment expenses ratio		72.1	%		41.6	%					63.8	%
Commission expense ratio		14.5	%		19.4	%					15.5	%
Other operating expense ratio(2)		18.9	%		20.5	%					19.7	%
Combined ratio		105.5	%		81.5	%					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 September 30, 2013
	Net		Losses
	Earned		and LAE			Underwriting			Underwriting			Loss			Expense			Combined
	Premiums		Incurred			Expenses			Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	31,490	$	14,745		$	10,997		$	5,748			46.8	%		34.9	%		81.7	%
Property Casualty		105,759		64,156			28,203			13,400			60.7	%		26.6	%		87.3	%
Professional Liability		25,713		16,414			8,394			905			63.8	%		32.7	%		96.5	%
Total Insurance Companies		162,962		95,315			47,594			20,053			58.5	%		29.2	%		87.7	%
Lloyd’s Operations:
Marine		34,264		22,129			13,240			(1,105	)		64.6	%		38.6	%		103.2	%
Property Casualty		10,472		3,661			4,428			2,383			35.0	%		42.2	%		77.2	%
Professional Liability		6,197		3,981			1,689			527			64.3	%		27.2	%		91.5	%
Total Lloyd’s		50,933		29,771			19,357			1,805			58.5	%		38.0	%		96.5	%
Total All	$	213,895	$	125,086		$	66,951		$	21,858			58.5	%		31.3	%		89.8	%
	Three Months Ended September 30, 2012
	Net		Losses
	Earned		and LAE			Underwriting			Underwriting			Loss			Expense			Combined
	Premiums		Incurred			Expenses			Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	40,592	$	29,187		$	14,200		$	(2,795	)		71.9	%		35.0	%		106.9	%
Property Casualty		83,993		67,474			25,753			(9,234	)		80.3	%		30.7	%		111.0	%
Professional Liability		24,505		16,642			9,032			(1,169	)		67.9	%		36.9	%		104.8	%
Total Insurance Companies		149,090		113,303			48,985			(13,198	)		76.0	%		32.9	%		108.9	%
Lloyd’s Operations:
Marine		34,002		10,936			14,543			8,523			32.2	%		42.7	%		74.9	%
Property Casualty		11,870		5,441			4,750			1,679			45.8	%		40.1	%		85.9	%
Professional Liability		6,300		(830	)		2,303			4,827			-13.2	%		36.6	%		23.4	%
Total Lloyd’s Operations		52,172		15,547			21,596			15,029			29.8	%		41.4	%		71.2	%
Total All	$	201,262	$	128,850		$	70,581		$	1,831			64.0	%		35.1	%		99.1	%
			Amounts									Loss Ratio
			Sept. 30,			Sept. 30,						Sept. 30,			Sept. 30,
			2013			2012						2013			2012
Net Incurred Loss Activity For the Three Months Ended:
Insurance Companies:
Loss and LAE payments			$	83,008		$	98,857						50.9	%		66.3	%
Change in reserves				12,307			14,446						7.6	%		9.7	%
Net incurred loss and LAE				95,315			113,303						58.5	%		76.0	%
Lloyd’s Operations:
Loss and LAE payments				27,038			24,019						53.1	%		46.0	%
Change in reserves				2,733			(8,472	)					5.4	%		-16.2	%
Net incurred loss and LAE				29,771			15,547						58.5	%		29.8	%
Total
Loss and LAE payments				110,046			122,876						51.5	%		61.0	%
Change in reserves				15,040			5,974						7.0	%		3.0	%
Net incurred loss and LAE			$	125,086		$	128,850						58.5	%		64.0	%
			Amounts									Loss Ratio Impact
			Sept. 30,			Sept. 30,						Sept. 30,			Sept. 30,
			2013			2012						2013			2012
Impact of Prior Years Reserves Favorable / (Unfavorable) Development For the Three Months Ended:
Insurance Companies			$	3,094		$	(3,607	)					1.4	%		-1.8	%
Lloyd’s Operations				4,591			9,084						2.1	%		4.5	%
Total			$	7,685		$	5,477						3.5	%		2.7	%

News Release

Page 12

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Underwriting Results

($ in thousands)

	Nine Months Ended September 30, 2013
	Net		Losses
	Earned		and LAE			Underwriting			Underwriting			Loss			Expense			Combined
	Premiums		Incurred			Expenses			Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	100,013	$	55,425		$	36,949		$	7,639			55.4	%		37.0	%		92.4	%
Property Casualty		297,954		196,151			82,844			18,959			65.8	%		27.8	%		93.6	%
Professional Liability		75,873		57,392			24,715			(6,234	)		75.6	%		32.6	%		108.2	%
Total Insurance Companies		473,840		308,968			144,508			20,364			65.2	%		30.5	%		95.7	%
Lloyd’s Operations:
Marine		102,932		59,184			41,266			2,482			57.5	%		40.1	%		97.6	%
Property Casualty		26,913		11,207			12,109			3,597			41.6	%		45.0	%		86.6	%
Professional Liability		18,352		8,217			5,863			4,272			44.8	%		31.9	%		76.7	%
Total Lloyd’s		148,197		78,608			59,238			10,351			53.0	%		40.0	%		93.0	%
Total All	$	622,037	$	387,576		$	203,746		$	30,715			62.3	%		32.8	%		95.1	%
	Nine Months Ended September 30, 2012
	Net		Losses
	Earned		and LAE			Underwriting			Underwriting			Loss			Expense			Combined
	Premiums		Incurred			Expenses			Profit (Loss)			Ratio			Ratio			Ratio
Insurance Companies:
Marine	$	111,402	$	87,240		$	40,371		$	(16,209	)		78.3	%		36.3	%		114.6	%
Property Casualty		240,536		165,346			75,235			(45	)		68.7	%		31.3	%		100.0	%
Professional Liability		70,277		51,897			25,535			(7,155	)		73.8	%		36.4	%		110.2	%
Total Insurance Companies		422,215		304,483			141,141			(23,409	)		72.1	%		33.4	%		105.5	%
Lloyd’s Operations:
Marine		101,538		45,224			42,587			13,727			44.5	%	��	42.0	%		86.5	%
Property Casualty		41,644		17,213			14,421			10,010			41.3	%		34.7	%		76.0	%
Professional Liability		15,001		3,322			6,213			5,466			22.1	%		41.5	%		63.6	%
Total Lloyd’s Operations		158,183		65,759			63,221			29,203			41.6	%		39.9	%		81.5	%
Total All	$	580,398	$	370,242		$	204,362		$	5,794			63.8	%		35.2	%		99.0	%
			Amounts									Loss Ratio
			Sept. 30,			Sept. 30,						Sept. 30,			Sept. 30,
			2013			2012						2013			2012
Net Incurred Loss Activity For the Nine Months Ended:
Insurance Companies:
Loss and LAE payments			$	263,832		$	282,820						55.7	%		67.0	%
Change in reserves				45,136			21,663						9.5	%		5.1	%
Net incurred loss and LAE				308,968			304,483						65.2	%		72.1	%
Lloyd’s Operations:
Loss and LAE payments				84,928			79,304						57.3	%		50.2	%
Change in reserves				(6,320	)		(13,545	)					-4.3	%		-8.6	%
Net incurred loss and LAE				78,608			65,759						53.0	%		41.6	%
Total
Loss and LAE payments				348,760			362,124						56.1	%		62.4	%
Change in reserves				38,816			8,118						6.2	%		1.4	%
Net incurred loss and LAE			$	387,576		$	370,242						62.3	%		63.8	%
			Amounts									Loss Ratio Impact
			Sept. 30,			Sept. 30,						Sept. 30,			Sept. 30,
			2013			2012						2013			2012
Impact of Prior Years Reserves Favorable / (Unfavorable) Development For the Nine Months Ended:
Insurance Companies			$	(12,383	)	$	(1,517	)					-2.0	%		-0.3	%
Lloyd’s Operations				14,072			19,232						2.3	%		3.4	%
Total			$	1,689		$	17,715						0.3	%		3.1	%

News Release

Page 13

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Net Loss Data

($ in thousands)

	Case		IBNR
	Reserves		Reserves		Total
Net Loss Reserves, September 30, 2013:
Insurance Companies:
Marine	$	136,292	$	105,123	$	241,415
Property Casualty		198,658		335,065		533,723
Professional Liability		74,600		81,596		156,196
Total Insurance Companies		409,550		521,784		931,334
Lloyd’s Operations:
Marine		131,982		89,023		221,005
Property Casualty		25,979		21,816		47,795
Professional Liability		12,620		41,677		54,297
Total Lloyd’s Operations		170,581		152,516		323,097
Total Net Loss Reserves	$	580,131	$	674,300	$	1,254,431
	Case		IBNR
	Reserves		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

Page 14

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Investment Data

September 30, 2013

As of September 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 3.9 years. The Company does not own any collateralized debt obligations (CDO’s) or asset backed commercial paper.

As of September 30, 2013, the Company owned two asset-backed securities approximating $0.6 million with subprime mortgage exposures. The securities have an effective maturity of 4.0 years. In addition, the Company owned a total of seven collateralized mortgage obligations and asset-backed securities approximating $2.0 million classified as Alt-A which is a credit category between prime and subprime. They have an effective maturity of 5.0 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 September 30, 2013:

September 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	$	445,969	$	3,683	$	(5,694	)	$	447,980
States, municipalities and political subdivisions		445,281		9,752		(12,240	)		447,769
Mortgage- and asset-backed securities:
Agency mortgage-backed securities		300,347		7,966		(3,925	)		296,306
Residential mortgage obligations		35,277		1,107		(224	)		34,394
Asset-backed securities		88,714		795		(190	)		88,109
Commercial mortgage-backed securities		173,069		8,386		(365	)		165,048
Subtotal		597,407		18,254		(4,704	)		583,857
Corporate bonds		493,074		17,104		(2,858	)		478,828
Total fixed maturities		1,981,731		48,793		(25,496	)		1,958,434
Equity securities - common stocks		158,890		29,548		(1,704	)		131,046
Short-term investments		152,987		—		—			152,987
Cash		130,513		—		—			130,513
Total	$	2,424,121	$	78,341	$	(27,200	)	$	2,372,980

News Release

Page 15

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Investment Data

September 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 September 30, 2013:

	Fair Value		Gross Unrealized Gains		Gross Unrealized (Losses)			Cost or Amortized Cost
Agency mortgage-backed securities:
GNMA	$	128,321	$	3,086	$	(2,653	)	$	127,888
FNMA		139,022		3,979		(1,207	)		136,250
FHLMC		33,004		901		(65	)		32,168
Total	$	300,347	$	7,966	$	(3,925	)	$	296,306
	Fair Value		Gross Unrealized Gains		Gross Unrealized (Losses)			Cost or Amortized Cost
Residential mortgage obligations:
Prime	$	11,174	$	371	$	(181	)	$	10,984
Alt-A		1,968		70		(43	)		1,941
Subprime		583		18		—			565
Non-US RMBS		21,552		648		—			20,904
Total	$	35,277	$	1,107	$	(224	)	$	34,394