Exhibit 99.1
Navigators Reports Record Earnings
NEW YORK--(BUSINESS WIRE)--July 30, 2007--The Navigators Group,
Inc. (NAVG:NASDAQ) reported record quarterly net income of $24,375,000
for the 2007 second quarter compared to $18,098,000 for the 2006
second quarter, an increase of 35%. Net income per share was $1.44 for
the 2007 second quarter compared to $1.08 for the 2006 second quarter.
The 2007 second quarter net income included a net realized capital
gain of $0.03 per share compared to a net realized capital loss of
$0.01 per share in the 2006 second quarter.
Net income for the six month period ended June 30, 2007 was
$44,047,000 or $2.60 per share, compared to $33,623,000 or $2.00 per
share for the six month period ended June 30, 2006. The results for
the six months ended June 30, 2007 included a net realized capital
gain of $0.04 per share and the results for the six months ended June
30, 2006 included a net realized capital loss of $0.02 per share.
Gross written premium and net written premium for the 2007 second
quarter were $276,549,000 and $161,350,000, respectively, increases of
10% and 25% from the comparable 2006 period.
Gross written premium and net written premium for the six month
period ended June 30, 2007 were $577,410,000 and $334,369,000,
respectively, increases of 12% and 23% from the comparable 2006
period.
The combined loss and expense ratios for the 2007 second quarter
and six month period were 86.4% and 87.8%, respectively, compared to
87.0% and 88.1% for the comparable 2006 periods. The combined loss and
expense ratios for the 2007 second quarter and six month period were
favorably impacted by 7.3 and 6.1 loss ratio points, respectively, for
redundancies in prior year loss reserves. Net paid loss ratios for the
2007 second quarter and six month period were 32.6% and 31.9%,
respectively, compared to 30.5% and 33.8% for the comparable 2006
periods.
Stan Galanski, Navigators' Chief Executive Officer, commented, "We
are pleased with the strong underwriting results for the second
quarter. Our record quarterly net income reflects our culture of
underwriting discipline, favorable loss development, growth in
investment income and the ongoing execution of our strategy. We are
encouraged that incurred loss activity remains well within our
expectations and that our loss reserves have never been stronger.
Despite increasingly challenging market conditions, we continue to
deliver shareholder value by capitalizing on growth opportunities in a
number of product lines and geographic niches. At the same time, our
underwriters continue to refrain from writing business that fails to
meet our underwriting standards."
Net investment income for the 2007 second quarter and six month
period was $17,330,000 and $33,546,000, respectively, increases of 24%
and 26% from the comparable 2006 periods. The pre-tax investment
yields for the 2007 second quarter and six month period were 4.5% and
4.4%, respectively, compared to 4.5% and 4.3% for the comparable 2006
periods.
Consolidated cash flow from operations was $111,667,000 and
$12,441,000 for the 2007 and 2006 six month periods, respectively.
Stockholders' equity was $588,033,000 or $34.93 per share at June
30, 2007 compared to $551,343,000 or $32.94 per share at December 31,
2006. Statutory surplus of Navigators Insurance Company was
$551,293,000 at June 30, 2007.
The Company will hold a conference call on Tuesday, July 31, 2007
starting at 8:30 a.m. ET to discuss the second quarter's results. To
access the call domestically, please dial 1-866-700-7173 using
confirmation code 28033205. Internationally, the call may be accessed
by dialing 617-213-8838 using the same confirmation code. To listen
via live audio webcast, please visit the Company's website
(www.navg.com) at least ten minutes prior to the start of the call and
click on the July 31st Live Audio Webcast link. The webcast will also
be available as a replay at the same location starting one hour after
the call is finished.
The Navigators Group, Inc. is an international insurance holding
company with insurance company operations, underwriting management
companies, and operations at Lloyd's of London. Headquartered in New
York City, Navigators has offices in major insurance centers in the
United States, the United Kingdom and Belgium.
This press release may contain "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995.
Whenever used in this release, the words "estimate", "expect",
"believe" or similar expressions are intended to identify such
forward-looking statements. We cannot assure that results that we
anticipate will be achieved, since results may differ materially
because of known and unknown risks and uncertainties that we face.
Please refer to Navigators' most recent Forms 10-K and 10-Q and its
other filings with the Securities and Exchange Commission for a
description of Navigators' business and the important factors that may
affect that business. Navigators undertakes no obligation to publicly
update or revise any forward-looking statement.
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Financial Highlights
($'s in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
Financial
Highlights 2007 2006 Change 2007 2006 Change
- --------------- --------- --------- ------ --------- --------- ------
Gross written
premium $276,549 $252,365 10% $577,410 $516,149 12%
Net written
premium 161,350 129,248 25% 334,369 272,674 23%
Revenues:
Net earned
premium 145,617 114,541 27% 284,663 218,263 30%
Commission
income 486 540 -10% 894 1,826 -51%
Net investment
income 17,330 14,003 24% 33,546 26,553 26%
Net realized
capital gains
(losses) 840 (192) NM 1,041 (616) NM
Other income
(expense) (253) 44 NM (324) 230 NM
--------- --------- --------- ---------
Total revenues 164,020 128,936 27% 319,820 246,256 30%
--------- --------- --------- ---------
Operating
expenses:
Net losses and
loss
adjustment
expenses
incurred 79,739 66,627 20% 160,931 128,744 25%
Commission
expense 17,650 13,624 30% 34,749 27,329 27%
Other
operating
expenses 28,608 19,927 44% 54,897 38,335 43%
Interest
expense 2,215 1,820 NM 4,430 1,820 NM
--------- --------- --------- ---------
Total
operating
expenses 128,212 101,998 26% 255,007 196,228 30%
--------- --------- --------- ---------
Income before
income taxes 35,808 26,938 33% 64,813 50,028 30%
--------- --------- --------- ---------
Income tax
expense
(benefit):
Current 13,505 10,034 35% 22,781 19,366 18%
Deferred (2,072) (1,194) NM (2,015) (2,961) NM
--------- --------- --------- ---------
Income tax
expense
(benefit) 11,433 8,840 29% 20,766 16,405 27%
--------- --------- --------- ---------
Net income $ 24,375 $ 18,098 35% $ 44,047 $ 33,623 31%
========= ========= ========= =========
Per Share Data
- ---------------
Net income per
common share:
Basic $ 1.45 $ 1.09 34% $ 2.63 $ 2.02 30%
Diluted $ 1.44 $ 1.08 34% $ 2.60 $ 2.00 30%
Average shares
outstanding:
Basic 16,786 16,668 16,771 16,654
Diluted 16,919 16,791 16,947 16,839
Underwriting
Ratios
- ---------------
Loss Ratio 54.8% 58.2% 56.5% 59.0%
Expense Ratio 31.6% 28.8% 31.3% 29.1%
--------- --------- --------- ---------
Combined Ratio 86.4% 87.0% 87.8% 88.1%
Balance Sheet June 30, Dec. 31,
Data
- ---------------
2007 2006
--------- ---------
Stockholders'
equity $588,033 $551,343 7%
Book value per
share $ 34.93 $ 32.94 6%
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($'s in thousands)
June 30, December 31,
2007 2006
------------- ------------
ASSETS
Investments and cash:
Fixed maturities, available-for-sale, at
fair value (amortized cost: 2007,
$1,352,442; 2006, $1,263,284) $ 1,329,809 $ 1,258,717
Equity securities, available-for-sale, at
fair value (cost: 2007, $48,198; 2006,
$31,879) 54,611 37,828
Short-term investments, at cost which
approximates fair value 186,833 176,961
Cash 218 2,404
------------- ------------
Total investments and cash 1,571,471 1,475,910
------------- ------------
Premiums in course of collection 225,095 163,309
Commissions receivable 2,714 3,647
Prepaid reinsurance premiums 209,147 179,493
Reinsurance receivable on paid losses 107,146 108,878
Reinsurance receivable on unpaid losses
and loss adjustment expenses 837,518 911,439
Net deferred income tax benefit 37,980 30,422
Deferred policy acquisition costs 53,394 41,700
Accrued investment income 14,024 13,052
Goodwill and other intangible assets 8,145 8,012
Other assets 26,329 20,824
------------- ------------
Total assets $ 3,092,963 $ 2,956,686
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Reserves for losses and loss adjustment
expenses $ 1,603,689 $ 1,607,555
Unearned premium 495,261 415,096
Reinsurance balances payable 202,434 194,266
Senior notes 123,615 123,560
Federal income tax payable 10,142 3,934
Payable for securities purchased - 166
Accounts payable and other liabilities 69,789 60,766
------------- ------------
Total liabilities 2,504,930 2,405,343
------------- ------------
Stockholders' equity:
Preferred stock, $.10 par value,
authorized 1,000,000 shares, none issued - -
Common stock, $.10 par value, 50,000,000
shares authorized for 2007 and
50,000,000 for 2006; issued and
outstanding: 16,832,443 for 2007 and
16,735,898 for 2006 1,683 1,674
Additional paid-in capital 290,033 286,732
Retained earnings 303,511 259,464
Accumulated other comprehensive income
(loss) (7,194) 3,473
------------- ------------
Total stockholders' equity 588,033 551,343
------------- ------------
Total liabilities and stockholders'
equity $ 3,092,963 $ 2,956,686
============= ============
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Comparative Premium Data
($'s in thousands)
Gross Written
Premium: Second Quarter Six Months
------------------ ------------------
Insurance
Companies: 2007 2006 Change 2007 2006 Change
-------- --------- ------ -------- --------- ------
Marine $ 67,887 $ 74,018 -8% $152,256 $155,812 -2%
Specialty 98,036 72,037 36% 193,756 134,168 44%
Professional
Liability 24,351 24,182 1% 44,833 42,316 6%
Other (includes
run-off) 8,286 59 NM 16,589 247 NM
-------- --------- -------- ---------
198,560 170,296 17% 407,434 332,543 23%
Lloyd's
Operations:
Marine 55,922 66,257 -16% 133,601 157,112 -15%
Professional
Liability 10,534 5,069 108% 16,012 7,089 126%
Other 11,533 10,746 7% 20,363 19,619 4%
-------- --------- -------- ---------
77,989 82,072 -5% 169,976 183,820 -8%
Intercompany
elimination - (3) NM - (214) NM
-------- --------- -------- ---------
Total $276,549 $252,365 10% $577,410 $516,149 12%
======== ========= ======== =========
Net Written
Premium: Second Quarter Six Months
------------------ ------------------
Insurance
Companies: 2007 2006 Change 2007 2006 Change
-------- --------- ------ -------- --------- ------
Marine $ 36,319 $ 35,810 1% $ 81,246 $ 77,325 5%
Specialty 67,114 42,804 57% 125,668 83,323 51%
Professional
Liability 14,767 13,818 7% 26,959 21,444 26%
Other (includes
run-off) 5,873 13 NM 12,248 (3) NM
-------- --------- -------- ---------
124,073 92,445 34% 246,121 182,089 35%
Lloyd's
Operations:
Marine 27,038 31,880 -15% 72,526 83,283 -13%
Professional
Liability 6,126 2,116 189% 9,509 2,945 223%
Other 4,113 2,807 47% 6,213 4,357 43%
-------- --------- -------- ---------
37,277 36,803 1% 88,248 90,585 -3%
-------- --------- -------- ---------
Total $161,350 $129,248 25% $334,369 $272,674 23%
======== ========= ======== =========
Net Earned
Premium: Second Quarter Six Months
------------------ ------------------
Insurance
Companies: 2007 2006 Change 2007 2006 Change
-------- --------- ------ -------- --------- ------
Marine $ 33,693 $ 28,887 17% $ 67,011 $ 51,388 30%
Specialty 58,918 39,765 48% 112,530 75,899 48%
Professional
Liability 13,334 9,824 36% 26,371 18,556 42%
Other (includes
run-off) 3,790 12 NM 5,635 (3) NM
-------- --------- -------- ---------
109,735 78,488 40% 211,547 145,840 45%
Lloyd's
Operations:
Marine 30,005 34,187 -12% 62,346 69,903 -11%
Professional
Liability 1,954 364 437% 4,911 605 712%
Other 3,923 1,502 161% 5,859 1,915 206%
-------- --------- -------- ---------
35,882 36,053 0% 73,116 72,423 1%
-------- --------- -------- ---------
Total $145,617 $114,541 27% $284,663 $218,263 30%
======== ========= ======== =========
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
June 30, 2007
($'s in thousands)
Insurance Lloyd's
Companies Operations Corporate Total
---------- ---------- ---------- ----------
Gross premium written $ 198,560 $ 77,989 $ 276,549
Net premium written 124,073 37,277 161,350
Net earned premium 109,735 35,882 145,617
Net losses and loss
adjustment expenses (63,725) (16,014) (79,739)
Commission expense (13,903) (3,747) (17,650)
Other operating expenses (21,057) (7,551) (28,608)
Commission and other income 96 137 233
---------- ---------- ----------
Underwriting profit 11,146 8,707 19,853
Net investment income 14,440 2,407 $ 483 17,330
Net realized capital gains 834 6 - 840
Interest expense - - (2,215) (2,215)
---------- ---------- ---------- ----------
Income (loss) before income
tax expense (benefit) 26,420 11,120 (1,732) 35,808
Income tax expense
(benefit) 8,163 3,875 (605) 11,433
---------- ---------- ---------- ----------
Net Income (loss) $ 18,257 $ 7,245 $ (1,127) $ 24,375
========== ========== ========== ==========
Loss and loss expenses
ratio 58.1% 44.6% 54.8%
Commission expense ratio 12.7% 10.4% 12.1%
Other operating expense
ratio (1) 19.0% 20.6% 19.5%
---------- ---------- ----------
Combined ratio 89.8% 75.6% 86.4%
========== ========== ==========
(1) The other operating expense ratio is adjusted to include
commission and other income/(expense).
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
June 30, 2006
($'s in thousands)
Insurance Lloyd's
Companies Operations Corporate Total
---------- ---------- ---------- ----------
Gross premium written $ 170,296 $ 82,072 $ 252,365
Net premium written 92,445 36,803 129,248
Net earned premium 78,488 36,053 114,541
Net losses and loss
adjustment expenses (47,676) (18,951) (66,627)
Commission expense (7,912) (5,712) (13,624)
Other operating expenses (13,966) (5,961) (19,927)
Commission and other
income / (expense) 794 (210) 584
---------- ---------- ----------
Underwriting profit 9,728 5,219 14,947
Net investment income 12,023 1,667 $ 313 14,003
Net realized capital
gains / (losses) (225) 33 - (192)
Interest expense - - (1,820) (1,820)
---------- ---------- ---------- ----------
Income (loss) before
income tax expense
(benefit) 21,526 6,919 (1,507) 26,938
Income tax expense
(benefit) 6,868 2,422 (450) 8,840
---------- ---------- ---------- ----------
Net Income (loss) $ 14,658 $ 4,497 $ (1,057) $ 18,098
========== ========== ========== ==========
Loss and loss expenses
ratio 60.7% 52.6% 58.2%
Commission expense ratio 10.1% 15.8% 11.9%
Other operating expense
ratio (1) 16.8% 17.1% 16.9%
---------- ---------- ----------
Combined ratio 87.6% 85.5% 87.0%
========== ========== ==========
(1) The other operating expense ratio is adjusted to include
commission and other income/(expense).
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Six Months Ended
June 30, 2007
($'s in thousands)
Insurance Lloyd's
Companies Operations Corporate Total
---------- ---------- ---------- ----------
Gross premium written $ 407,434 $ 169,976 $ 577,410
Net premium written 246,121 88,248 334,369
Net earned premium 211,547 73,116 284,663
Net losses and loss
adjustment expenses (125,065) (35,866) (160,931)
Commission expense (24,986) (9,763) (34,749)
Other operating expenses (39,826) (15,071) (54,897)
Commission and other
income / (expense) 585 (15) 570
---------- ---------- ----------
Underwriting profit 22,255 12,401 34,656
Net investment income 28,094 4,558 $ 894 33,546
Net realized capital
gains / (losses) 1,077 (36) - 1,041
Interest expense - - (4,430) (4,430)
---------- ---------- ---------- ----------
Income (loss) before
income tax expense
(benefit) 51,426 16,923 (3,536) 64,813
Income tax expense
(benefit) 16,074 5,929 (1,237) 20,766
---------- ---------- ---------- ----------
Net Income (loss) $ 35,352 $ 10,994 $ (2,299) $ 44,047
========== ========== ========== ==========
Loss and loss expenses
ratio 59.1% 49.1% 56.5%
Commission expense ratio 11.8% 13.4% 12.2%
Other operating expense
ratio (1) 18.6% 20.5% 19.1%
---------- ---------- ----------
Combined ratio 89.5% 83.0% 87.8%
========== ========== ==========
(1) The other operating expense ratio is adjusted to include
commission and other income/(expense).
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Six Months Ended
June 30, 2006
($'s in thousands)
Insurance Lloyd's
Companies Operations Corporate Total
---------- ---------- ---------- ----------
Gross premium written $ 332,543 $ 183,820 $ 516,149
Net premium written 182,089 90,585 272,674
Net earned premium 145,840 72,423 218,263
Net losses and loss
adjustment expenses (87,630) (41,114) (128,744)
Commission expense (15,036) (12,293) (27,329)
Other operating expenses (27,399) (10,936) (38,335)
Commission and other
income / (expense) 2,000 56 2,056
---------- ---------- ----------
Underwriting profit 17,775 8,136 25,911
Net investment income 22,433 3,674 $ 446 26,553
Net realized capital
gains / (losses) (300) (316) - (616)
Interest expense - - (1,820) (1,820)
---------- ---------- ---------- ----------
Income before income tax
expense 39,908 11,494 (1,374) 50,028
Income tax expense 12,784 4,023 (402) 16,405
---------- ---------- ---------- ----------
Net Income $ 27,124 $ 7,471 $ (972) $ 33,623
========== ========== ========== ==========
Loss and loss expenses
ratio 60.1% 56.8% 59.0%
Commission expense ratio 10.3% 17.0% 12.5%
Other operating expense
ratio (1) 17.4% 15.0% 16.6%
---------- ---------- ----------
Combined ratio 87.8% 88.8% 88.1%
========== ========== ==========
(1) The other operating expense ratio is adjusted to include
commission and other income/(expense).
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Underwriting Results
($'s in thousands)
Three Months Ended June 30, 2007
--------------------------------------------------------
Combined Ratio
------------------------
Insurance Net Losses
Companies: Earned and LAE Underwriting
Premium Incurred Expenses Loss Expense Total
--------------------------------------------------------
Marine $ 33,693 $ 17,706 $ 11,608 52.6% 34.5% 87.1%
Specialty 58,918 33,307 16,039 56.5% 27.1% 83.6%
Professional
Liability 13,334 7,741 5,330 58.1% 39.9% 98.0%
Other
(includes
run-off) 3,790 4,971 1,887 NM NM NM
--------------------------------------------------------
109,735 63,725 34,864 58.1% 31.7% 89.8%
Lloyd's
Operations 35,882 16,014 11,161 44.6% 31.0% 75.6%
--------------------------------------------------------
Total $145,617 $ 79,739 $ 46,025 54.8% 31.6% 86.4%
========================================================
Three Months Ended June 30, 2006
--------------------------------------------------------
Combined Ratio
------------------------
Insurance Net Losses
Companies: Earned and LAE Underwriting
Premium Incurred Expenses Loss Expense Total
--------------------------------------------------------
Marine $ 28,887 $ 17,045 $ 7,296 59.0% 25.3% 84.3%
Specialty 39,765 23,804 11,075 59.9% 27.9% 87.8%
Professional
Liability 9,824 6,989 2,750 71.1% 28.0% 99.1%
Other
(includes
run-off) 12 (162) (37) NM NM NM
--------------------------------------------------------
78,488 47,676 21,084 60.7% 26.9% 87.6%
Lloyd's
Operations 36,053 18,951 11,883 52.6% 32.9% 85.5%
--------------------------------------------------------
Total $114,541 $ 66,627 $ 32,967 58.2% 28.8% 87.0%
========================================================
Amounts Loss Ratio
--------------------------------------
Net Incurred Loss Activity June 30, June 30, June 30, June 30,
For the Three Months Ended: 2007 2006 2007 2006
--------------------------------------
Insurance Companies:
Loss and LAE payments $ 31,066 $ 23,984 28.3% 30.6%
Change in reserves 32,659 23,692 29.8% 30.1%
--------------------------------------
Net incurred loss and LAE 63,725 47,676 58.1% 60.7%
--------------------------------------
Lloyd's Operations:
Loss and LAE payments 16,348 $ 10,978 45.5% 30.5%
Change in reserves (334) 7,973 -0.9% 22.1%
--------------------------------------
Net incurred loss and LAE 16,014 18,951 44.6% 52.6%
--------------------------------------
Total
Loss and LAE payments 47,414 34,962 32.6% 30.5%
Change in reserves 32,325 31,665 22.2% 27.7%
--------------------------------------
Net incurred loss and LAE $ 79,739 $ 66,627 54.8% 58.2%
======================================
Impact of Prior Years Reserves Amounts Loss Ratio Impact
--------------------------------------
Favorable / (Unfavorable)
Development June 30, June 30, June 30, June 30,
For the Three Months Ended: 2007 2006 2007 2006
--------------------------------------
Insurance Companies $ 5,491 $ 599 5.0% 0.8%
Lloyd's Operations 5,126 2,300 14.3% 6.4%
--------------------------------------
Total $ 10,617 $ 2,899 7.3% 2.5%
======================================
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Underwriting Results
($'s in thousands)
Six Months Ended June 30, 2007
---------------------------------------------------------
Combined Ratio
------------------------
Net Losses
Insurance Earned and LAE Underwriting
Companies: Premium Incurred Expenses Loss Expense Total
--------- --------- ------------ ------- ------- --------
Marine $ 67,011 $ 37,877 $ 18,721 56.5% 27.9% 84.4%
Specialty 112,530 65,073 32,531 57.8% 28.8% 86.6%
Professional
Liability 26,371 16,225 9,653 61.5% 36.5% 98.0%
Other
(includes
run-off) 5,635 5,890 3,322 NM NM NM
--------- --------- ------------ ------- ------- --------
211,547 125,065 64,227 59.1% 30.4% 89.5%
Lloyd's
Operations 73,116 35,866 24,849 49.1% 33.9% 83.0%
--------- --------- ------------ ------- ------- --------
Total $284,663 $160,931 $ 89,076 56.5% 31.3% 87.8%
========= ========= ============ ======= ======= ========
Six Months Ended June 30, 2006
---------------------------------------------------------
Combined Ratio
------------------------
Net Losses
Insurance Earned and LAE Underwriting
Companies: Premium Incurred Expenses Loss Expense Total
--------- --------- ------------ ------- ------- --------
Marine $ 51,388 $ 30,545 $ 13,342 59.4% 26.0% 85.4%
Specialty 75,899 44,961 21,599 59.2% 28.5% 87.7%
Professional
Liability 18,556 12,298 5,461 66.3% 29.4% 95.7%
Other
(includes
run-off) (3) (174) 33 NM NM NM
--------- --------- ------------ ------- ------- --------
145,840 87,630 40,435 60.1% 27.7% 87.8%
Lloyd's
Operations 72,423 41,114 23,173 56.8% 32.0% 88.8%
--------- --------- ------------ ------- ------- --------
Total $218,263 $128,744 $ 63,608 59.0% 29.1% 88.1%
========= ========= ============ ======= ======= ========
Amounts Loss Ratio
---------------------------------------
Net Incurred Loss Activity June 30, June 30, June 30, June 30,
For the Six Months Ended: 2007 2006 2007 2006
---------------------------------------
Insurance Companies:
Loss and LAE payments $ 60,410 $ 44,154 28.5% 30.2%
Change in reserves 64,655 43,476 30.6% 29.9%
---------------------------------------
Net incurred loss and LAE 125,065 87,630 59.1% 60.1%
---------------------------------------
Lloyd's Operations:
Loss and LAE payments $ 30,465 $ 29,671 41.7% 41.0%
Change in reserves 5,401 11,443 7.4% 15.8%
---------------------------------------
Net incurred loss and LAE 35,866 41,114 49.1% 56.8%
---------------------------------------
Total
Loss and LAE payments 90,875 73,825 31.9% 33.8%
Change in reserves 70,056 54,919 24.6% 25.2%
---------------------------------------
Net incurred loss and LAE $ 160,931 $ 128,744 56.5% 59.0%
=======================================
Impact of Prior Years Reserves Amounts Loss Ratio Impact
---------------------------------------
Favorable / (Unfavorable)
Development June 30, June 30, June 30, June 30,
For the Six Months Ended: 2007 2006 2007 2006
---------------------------------------
Insurance Companies $ 11,191 $ 4,399 5.3% 3.0%
Lloyd's Operations 6,226 2,300 8.5% 3.2%
---------------------------------------
Total $ 17,417 $ 6,699 6.1% 3.1%
=======================================
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Loss Data
($'s in thousands)
Net Loss Reserves: 6/30/2007 12/31/2006
----------- -----------
Insurance Companies:
Marine $ 185,918 $ 179,393
Specialty 303,407 260,844
Professional Liability 62,484 51,571
Other 23,952 19,299
----------- -----------
Total Insurance Companies 575,761 511,107
----------- -----------
Lloyd's Operations:
Marine 168,402 173,497
Other 22,008 11,512
----------- -----------
Total Lloyd's Operations 190,410 185,009
----------- -----------
Total net loss reserves $ 766,171 $ 696,116
=========== ===========
Total net case loss reserves $ 251,451 $ 243,183
Total net IBNR loss reserves 514,720 452,933
----------- -----------
Total net loss reserves $ 766,171 $ 696,116
=========== ===========
CONTACT: The Navigators Group, Inc.
Paul J. Malvasio, 914-933-6088
Executive Vice President
and Chief Financial Officer
pmalvasio@navg.com
www.navg.com