Exhibit 99.1
Navigators Reports Record
Earnings
NEW YORK--(BUSINESS WIRE)--Oct. 29, 2007--The Navigators Group,
Inc. (NASDAQ: NAVG) reported record net income of $25,033,000 for the
2007 third quarter compared to $18,333,000 for the 2006 third quarter,
an increase of 37%. Net income per share was $1.47 for the 2007 third
quarter compared to $1.09 for the 2006 third quarter. The 2006 third
quarter results include a net realized capital loss of $.01 per share.
Gross written premium and net written premium for the 2007 third
quarter were $245,961,000 and $159,102,000, respectively, increases of
11% and 34% from the comparable 2006 period.
Net income for the nine month period ended September 30, 2007 was
$69,080,000 or $4.07 per share compared to $51,956,000 or $3.09 per
share for the nine month period ended September 30, 2006. The results
for the nine months ended September 30, 2007 included a net realized
capital gain of $.04 per share and the results for the nine months
ended September 30, 2006 included a net realized capital loss of $.03
per share.
Gross written premium and net written premium for the nine month
period ended September 30, 2007 were $823,371,000 and $493,471,000,
respectively, increases of 12% and 26% from the comparable 2006
period.
The combined loss and expense ratios for the 2007 third quarter
and nine month period were 86.6% and 87.4%, respectively, compared to
87.4% and 87.9% for the comparable 2006 periods. The combined loss and
expense ratios for the 2007 third quarter and nine month period were
favorably impacted by 7.8 and 6.7 loss ratio points, respectively,
reflecting redundancies in prior period loss reserves. Net paid loss
ratios for the 2007 third quarter and nine month period were 29.6% and
31.1%, respectively, compared to 35.9% and 34.6% for the comparable
2006 periods.
Stan Galanski, Navigators' Chief Executive Officer, commented,
"While there are many highlights to the third quarter results, we are
particularly pleased with the favorable loss development patterns that
we continue to experience. Navigators Specialty and our London
Operations produced solid underwriting results while continuing to
respond to opportunities for responsible growth. We continue to
benefit from our long-term strategy to retain more business on a net
basis. Cash flow for the quarter was especially strong, reflecting
both increased net written premium and reinsurance recoveries. Our
high quality investment portfolio performed reliably, consistent with
our disciplined investment strategy."
Net investment income for the 2007 third quarter and nine month
period was $17,930,000 and $51,476,000, respectively, increases of 22%
and 25% from the comparable 2006 periods. The pre-tax investment
yields for the 2007 third quarter and nine month period were 4.3% and
4.4%, respectively, compared to 4.5% and 4.4% for the comparable 2006
periods.
Consolidated cash flow from operations for the 2007 third quarter
and nine month period ended September 30, 2007 was $119,669,000 and
$231,336,000, respectively, compared to $75,653,000 and $88,094,000
for the comparable 2006 periods.
Stockholders' equity was $626,476,000 or $37.17 per share at
September 30, 2007 compared to $551,343,000 or $32.94 per share at
December 31, 2006. Statutory surplus of Navigators Insurance Company
was $566,504,000 at September 30, 2007.
The Board of Directors has adopted a stock repurchase program for
up to $30 million of the Company's common stock. Repurchases may be
made from time to time at prevailing prices in open market or
privately negotiated transactions through December 31, 2008. The
timing and amount of the repurchase transactions under the program
will depend on a variety of factors, including the trading price of
the stock, market conditions and corporate and regulatory
considerations.
Stan Galanski commented, "The authorization of a share repurchase
program reflects the Board's confidence in the Company's financial
condition and our ability to grow shareholder value in the future. It
demonstrates our commitment to effective capital management while
assuring policyholders and investors of our financial strength and
claims paying ability."
The Company will hold a conference call on Tuesday, October 30,
2007 starting at 8:30 a.m. ET to discuss the third quarter's results.
To access the call domestically, please dial 1-866-770-7129 using
confirmation code 75108523. Internationally, the call may be accessed
by dialing 617-213-8067 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 October 30th 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 Nine Months Ended
Ended September September 30,
30,
----------------- -----------------
Financial Highlights 2007 2006 Change 2007 2006 Change
- -------------------- -------- -------- ------ -------- -------- ------
Gross written
premium $245,961 $221,667 11% $823,371 $737,816 12%
Net written premium 159,102 119,037 34% 493,471 391,711 26%
Revenues:
Net earned premium 156,038 115,696 35% 440,701 333,959 32%
Commission income 117 639 -82% 1,011 2,465 -59%
Net investment
income 17,930 14,691 22% 51,476 41,244 25%
Net realized
capital gains
(losses) (66) (151) NM 975 (767) NM
Other income
(expense) 298 (884) NM (26) (654) NM
-------- -------- -------- --------
Total revenues 174,317 129,991 34% 494,137 376,247 31%
-------- -------- -------- --------
Operating expenses:
Net losses and
loss adjustment
expenses incurred 88,019 64,456 37% 248,950 193,200 29%
Commission expense 19,676 13,769 43% 54,425 41,098 32%
Other operating
expenses 27,902 22,683 23% 82,799 61,018 36%
Interest expense 2,216 2,214 NM 6,646 4,034 NM
-------- -------- -------- --------
Total operating
expenses 137,813 103,122 34% 392,820 299,350 31%
-------- -------- -------- --------
Income before income
taxes 36,504 26,869 36% 101,317 76,897 32%
-------- -------- -------- --------
Income tax expense
(benefit):
Current 11,520 8,126 42% 34,301 27,492 25%
Deferred (49) 410 -112% (2,064) (2,551) NM
-------- -------- -------- --------
Income tax expense
(benefit) 11,471 8,536 34% 32,237 24,941 29%
-------- -------- -------- --------
Net income $ 25,033 $ 18,333 37% $ 69,080 $ 51,956 33%
======== ======== ======== ========
Per Share Data
- --------------------
Net income per
common share:
Basic $ 1.49 $ 1.10 35% $ 4.11 $ 3.12 32%
Diluted $ 1.47 $ 1.09 35% $ 4.07 $ 3.09 32%
Average shares
outstanding:
Basic 16,843 16,685 16,796 16,664
Diluted 16,996 16,827 16,967 16,812
Underwriting Ratios
- --------------------
Loss Ratio 56.4% 55.7% 56.5% 57.9%
Expense Ratio 30.2% 31.7% 30.9% 30.0%
-------- -------- -------- --------
Combined Ratio 86.6% 87.4% 87.4% 87.9%
Balance Sheet Data Sept. Dec. 31,
- -------------------- 30, 2006
2007
-------- --------
Stockholders' equity $626,476 $551,343 14%
Book value per share $ 37.17 $ 32.94 13%
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($'s in thousands)
September December
30, 2007 31, 2006
----------- ----------
ASSETS
Investments and cash:
Fixed maturities, available-for-sale, at fair
value (amortized cost: 2007, $1,458,458;
2006, $1,263,284) $1,454,684 $1,258,717
Equity securities, available-for-sale, at fair
value (cost: 2007, $57,697; 2006, $31,879) 63,858 37,828
Short-term investments, at cost which
approximates fair value 215,117 176,961
Cash 4,906 2,404
----------- ----------
Total investments and cash 1,738,565 1,475,910
----------- ----------
Premiums in course of collection 186,865 163,309
Commissions receivable 2,429 3,647
Prepaid reinsurance premiums 194,742 179,493
Reinsurance receivable on paid losses 84,043 108,878
Reinsurance receivable on unpaid losses and
loss adjustment expenses 837,545 911,439
Net deferred income tax benefit 31,360 30,422
Deferred policy acquisition costs 54,752 41,700
Accrued investment income 15,548 13,052
Goodwill and other intangible assets 8,237 8,012
Other assets 20,906 20,824
----------- ----------
Total assets $3,174,992 $2,956,686
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Reserves for losses and loss adjustment
expenses $1,645,542 $1,607,555
Unearned premium 484,507 415,096
Reinsurance balances payable 179,892 194,266
Senior notes 123,644 123,560
Federal income tax payable 7,688 3,934
Payable for securities purchased 27,550 166
Accounts payable and other liabilities 79,693 60,766
----------- ----------
Total liabilities 2,548,516 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: 16,856,267 for
2007 and 16,735,898 for 2006 1,686 1,674
Additional paid-in capital 290,955 286,732
Retained earnings 328,544 259,464
Accumulated other comprehensive income 5,291 3,473
----------- ----------
Total stockholders' equity 626,476 551,343
----------- ----------
Total liabilities and stockholders'
equity $3,174,992 $2,956,686
=========== ==========
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Comparative Premium Data
($'s in thousands)
Gross Written Third Quarter Nine Months
Premium:
----------------- -----------------
Insurance Companies: 2007 2006 Change 2007 2006 Change
-------- -------- ------ -------- -------- ------
Marine $ 53,040 $ 54,116 -2% $205,296 $209,928 -2%
Specialty 95,627 85,675 12% 289,383 219,843 32%
Professional
Liability 24,546 22,848 7% 69,379 65,164 6%
Other 4,845 1,034 368% 21,434 1,281 1573%
-------- -------- -------- --------
178,058 163,673 9% 585,492 496,216 18%
Lloyd's Operations:
Marine 50,060 44,962 11% 183,661 202,074 -9%
Professional
Liability 9,639 9,015 7% 25,651 16,104 59%
Other 8,204 3,803 116% 28,567 23,422 22%
-------- -------- -------- --------
67,903 57,780 18% 237,879 241,600 -2%
Intercompany
elimination - 214 NM - - NM
-------- -------- -------- --------
Total $245,961 $221,667 11% $823,371 $737,816 12%
======== ======== ======== ========
Net Written Premium: Third Quarter Nine Months
----------------- -----------------
Insurance Companies: 2007 2006 Change 2007 2006 Change
-------- -------- ------ -------- -------- ------
Marine $ 24,207 $ 24,566 -1% $105,453 $101,891 3%
Specialty 68,441 52,923 29% 194,109 136,246 42%
Professional
Liability 14,447 13,450 7% 41,406 34,894 19%
Other 2,582 249 NM 14,830 246 NM
-------- -------- -------- --------
109,677 91,188 20% 355,798 273,277 30%
Lloyd's Operations:
Marine 37,373 23,743 57% 109,899 107,026 3%
Professional
Liability 8,692 3,381 157% 18,201 6,326 188%
Other 3,360 725 363% 9,573 5,082 88%
-------- -------- -------- --------
49,425 27,849 78% 137,673 118,434 16%
-------- -------- -------- --------
Total $159,102 $119,037 34% $493,471 $391,711 26%
======== ======== ======== ========
Net Earned Premium: Third Quarter Nine Months
----------------- -----------------
Insurance Companies: 2007 2006 Change 2007 2006 Change
-------- -------- ------ -------- -------- ------
Marine $ 29,520 $ 29,291 1% $ 96,531 $ 80,679 20%
Specialty 62,796 45,234 39% 175,326 121,133 45%
Professional
Liability 14,184 10,938 30% 40,555 29,494 38%
Other 2,560 31 NM 8,195 28 NM
-------- -------- -------- --------
109,060 85,494 28% 320,607 231,334 39%
Lloyd's Operations:
Marine 41,607 29,126 43% 103,953 99,029 5%
Professional
Liability 4,587 1,525 201% 9,498 2,130 346%
Other 784 (449) -275% 6,643 1,466 353%
-------- -------- -------- --------
46,978 30,202 56% 120,094 102,625 17%
-------- -------- -------- --------
Total $156,038 $115,696 35% $440,701 $333,959 32%
======== ======== ======== ========
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
September 30, 2007
($'s in thousands)
Insurance Lloyd's
Companies Operations Corporate Total
---------- ----------- --------- ---------
Gross premium written $ 178,058 $ 67,903 $ 245,961
Net premium written 109,677 49,425 159,102
Net earned premium 109,060 46,978 156,038
Net losses and loss
adjustment expenses (59,816) (28,203) (88,019)
Commission expense (13,086) (6,590) (19,676)
Other operating expenses (21,157) (6,745) (27,902)
Commission and other income
/ (expense) 304 111 415
---------- ----------- ---------
Underwriting profit /
(loss) 15,305 5,551 20,856
Investment income 14,816 2,609 $ 505 17,930
Net realized capital gains
/ (losses) 41 (107) (66)
Interest expense (2,216) (2,216)
---------- ----------- --------- ---------
Income (loss) before income
tax expense (benefit) 30,162 8,053 (1,711) 36,504
Income tax expense
(benefit) 9,193 2,877 (599) 11,471
---------- ----------- --------- ---------
Net Income (loss) $ 20,969 $ 5,176 $(1,112) $ 25,033
========== =========== ========= =========
Loss and loss expenses
ratio 54.8% 60.0% 56.4%
Commission expense ratio 12.0% 14.0% 12.6%
Other operating expense
ratio (1) 19.1% 14.1% 17.6%
---------- ----------- ---------
Combined ratio 85.9% 88.1% 86.6%
========== =========== =========
(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
September 30, 2006
($'s in thousands)
Insurance Lloyd's
Companies Operations Corporate Total
---------- ----------- --------- ---------
Gross premium written $ 163,673 $ 57,780 $ 221,667
Net premium written 91,188 27,849 119,037
Net earned premium 85,494 30,202 115,696
Net losses and loss
adjustment expenses (47,926) (16,530) (64,456)
Commission expense (9,889) (3,880) (13,769)
Other operating expenses (16,697) (5,986) (22,683)
Commission and other income
/ (expense) 661 (906) (245)
---------- ----------- ---------
Underwriting profit /
(loss) 11,643 2,900 14,543
Investment income 12,345 1,774 $ 572 14,691
Net realized capital gains
/ (losses) (29) (122) (151)
Interest expense (2,214) (2,214)
---------- ----------- --------- ---------
Income (loss) before income
tax expense (benefit) 23,959 4,552 (1,642) 26,869
Income tax expense
(benefit) 7,658 1,627 (749) 8,536
---------- ----------- --------- ---------
Net Income (loss) $ 16,301 $ 2,925 $ (893) $ 18,333
========== =========== ========= =========
Loss and loss expenses
ratio 56.1% 54.7% 55.7%
Commission expense ratio 11.6% 12.8% 11.9%
Other operating expense
ratio (1) 18.8% 22.8% 19.8%
---------- ----------- ---------
Combined ratio 86.5% 90.3% 87.4%
========== =========== =========
(1) The other operating expense ratio is adjusted to include
commission and other income/(expense).
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Nine Months Ended
September 30, 2007
($'s in thousands)
Insurance Lloyd's
Companies Operations Corporate Total
---------- ---------- --------- ----------
Gross premium written $ 585,492 $ 237,879 $ 823,371
Net premium written 355,798 137,673 493,471
Net earned premium 320,607 120,094 440,701
Net losses and loss
adjustment expenses (184,881) (64,069) (248,950)
Commission expense (38,072) (16,353) (54,425)
Other operating expenses (60,983) (21,816) (82,799)
Commission and other income
/ (expense) 889 96 985
---------- ---------- ----------
Underwriting profit /
(loss) 37,560 17,952 55,512
Investment income 42,910 7,167 $ 1,399 51,476
Net realized capital gains
/ (losses) 1,118 (143) 975
Interest expense (6,646) (6,646)
---------- ---------- --------- ----------
Income (loss) before income
tax expense (benefit) 81,588 24,976 (5,247) 101,317
Income tax expense
(benefit) 25,267 8,806 (1,836) 32,237
---------- ---------- --------- ----------
Net Income (loss) $ 56,321 $ 16,170 $(3,411) $ 69,080
========== ========== ========= ==========
Loss and loss expenses
ratio 57.7% 53.3% 56.5%
Commission expense ratio 11.9% 13.6% 12.3%
Other operating expense
ratio (1) 18.7% 18.1% 18.6%
---------- ---------- ----------
Combined ratio 88.3% 85.0% 87.4%
========== ========== ==========
(1) The other operating expense ratio is adjusted to include
commission and other income/(expense).
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Nine Months Ended
September 30, 2006
($'s in thousands)
Insurance Lloyd's
Companies Operations Corporate Total
---------- ---------- --------- ----------
Gross premium written $ 496,216 $ 241,600 $ 737,816
Net premium written 273,277 118,434 391,711
Net earned premium 231,334 102,625 333,959
Net losses and loss
adjustment expenses (135,556) (57,644) (193,200)
Commission expense (24,925) (16,173) (41,098)
Other operating expenses (44,096) (16,922) (61,018)
Commission and other income
/ (expense) 2,661 (850) 1,811
---------- ---------- ----------
Underwriting profit 29,418 11,036 40,454
Investment income 34,778 5,448 $ 1,018 41,244
Net realized capital gains
/ (losses) (329) (438) (767)
Interest expense (4,034) (4,034)
---------- ---------- --------- ----------
Income before income tax
expense 63,867 16,046 (3,016) 76,897
Income tax expense 20,442 5,650 (1,151) 24,941
---------- ---------- --------- ----------
Net Income $ 43,425 $ 10,396 $(1,865) $ 51,956
========== ========== ========= ==========
Loss and loss expenses
ratio 58.6% 56.2% 57.9%
Commission expense ratio 10.8% 15.8% 12.3%
Other operating expense
ratio (1) 17.9% 17.3% 17.7%
---------- ---------- ----------
Combined ratio 87.3% 89.3% 87.9%
========== ========== ==========
(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 September
30, 2007
-------------------------------
Net Losses
Earned and LAE Underwriting
Insurance Companies: Premium Incurred Expenses
-------------------------------
Marine $29,520 $19,239 $9,767
Specialty 62,796 30,153 17,338
Professional Liability 14,184 8,764 5,217
Other 2,560 1,660 1,617
-------------------------------
109,060 59,816 33,939
Lloyd's Operations 46,978 28,203 13,224
-------------------------------
Total $156,038 $88,019 $47,163
===============================
Three Months Ended September
30, 2006
-------------------------------
Net Losses
Earned and LAE Underwriting
Insurance Companies: Premium Incurred Expenses
-------- -------- -------------
Marine $29,291 $17,064 $8,696
Specialty 45,234 24,216 13,713
Professional Liability 10,938 6,417 3,615
Other 31 229 (99)
-------------------------------
85,494 47,926 25,925
Lloyd's Operations 30,202 16,530 10,772
-------------------------------
Total $115,696 $64,456 $36,697
===============================
-----------------------------------
Combined Ratio
-----------------------------------
Insurance Companies: Loss Expense Total
-----------------------------------
Marine 65.2% 33.1% 98.3%
Specialty 48.0% 27.6% 75.6%
Professional Liability 61.8% 36.8% 98.6%
Other NM NM NM
-----------------------------------
54.8% 31.1% 85.9%
Lloyd's Operations 60.0% 28.1% 88.1%
-----------------------------------
Total 56.4% 30.2% 86.6%
===================================
-----------------------------------
Combined Ratio
-----------------------------------
Insurance Companies: Loss Expense Total
-----------------------------------
Marine 58.3% 29.7% 88.0%
Specialty 53.5% 30.3% 83.8%
Professional Liability 58.7% 33.1% 91.8%
Other NM NM NM
-----------------------------------
56.1% 30.4% 86.5%
Lloyd's Operations 54.7% 35.6% 90.3%
-----------------------------------
Total 55.7% 31.7% 87.4%
-----------------------------------
Amounts Loss Ratio
----------------- --------------
Net Incurred Loss Activity Sept. Sept. Sept. Sept.
For the Three Months Ended: 30, 30, 30, 30,
2007 2006 2007 2006
Insurance Companies:
Loss and LAE payments $31,233 $22,987 28.6% 26.9%
Change in reserves 28,583 24,939 26.2% 29.2%
----------------- --------------
Net incurred loss and LAE 59,816 47,926 54.8% 56.1%
----------------- --------------
Lloyd's Operations:
Loss and LAE payments $14,961 $18,601 31.8% 61.6%
Change in reserves 13,242 (2,071) 28.2% -6.9%
----------------- --------------
Net incurred loss and LAE 28,203 16,530 60.0% 54.7%
----------------- --------------
Total
Loss and LAE payments 46,194 41,588 29.6% 35.9%
Change in reserves 41,825 22,868 26.8% 19.8%
----------------- ------ -------
Net incurred loss and LAE $88,019 $64,456 56.4% 55.7%
================= ====== =======
Impact of Prior Period Amounts Loss Ratio
Impact
----------------- --------------
Favorable / (Unfavorable) Sept. Sept. Sept. Sept.
Development 30, 30, 30, 30,
For the Three Months Ended: 2007 2006 2007 2006
Insurance Companies $10,980 $4,851 10.1% 5.7%
Lloyd's Operations 1,187 1,100 2.5% 3.6%
----------------- --------------
Total $12,167 $5,951 7.8% 5.1%
================= ==============
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Underwriting Results
($'s in thousands)
Nine Months Ended September 30,
2007
---------------------------------
Net Losses
Earned and LAE Underwriting
Insurance Companies: Premium Incurred Expenses
---------------------------------
Marine $ 96,531$ 57,116 $ 28,488
Specialty 175,326 95,226 49,869
Professional Liability 40,555 24,989 14,870
Other 8,195 7,550 4,939
---------------------------------
320,607 184,881 98,166
Lloyd's Operations 120,094 64,069 38,073
---------------------------------
Total $440,701$248,950 $136,239
=================================
Nine Months Ended September 30,
2006
---------------------------------
Net Losses
Earned and LAE Underwriting
Insurance Companies: Premium Incurred Expenses
---------------------------------
Marine $ 80,679$ 47,609 $ 22,038
Specialty 121,133 69,177 35,312
Professional Liability 29,494 18,715 9,076
Other 28 55 (66)
---------------------------------
231,334 135,556 66,360
Lloyd's Operations 102,625 57,644 33,945
---------------------------------
Total $333,959$193,200 $100,305
=================================
Nine Months Ended September
30, 2007
----------------------------
Combined Ratio
----------------------------
Insurance Companies: Loss Expense Total
----------------------------
Marine 59.2% 29.5% 88.7%
Specialty 54.3% 28.4% 82.7%
Professional Liability 61.6% 36.6% 98.2%
Other NM NM NM
----------------------------
57.7% 30.6% 88.3%
Lloyd's Operations 53.3% 31.7% 85.0%
----------------------------
Total 56.5% 30.9% 87.4%
============================
----------------------------
Combined Ratio
----------------------------
Insurance Companies: Loss Expense Total
----------------------------
Marine 59.0% 27.3% 86.3%
Specialty 57.1% 29.2% 86.3%
Professional Liability 63.5% 30.8% 94.3%
Other NM NM NM
----------------------------
58.6% 28.7% 87.3%
Lloyd's Operations 56.2% 33.1% 89.3%
----------------------------
Total 57.9% 30.0% 87.9%
============================
Amounts Loss Ratio
------------------- ----------------
Net Incurred Loss Activity Sept. 30, Sept. 30, Sept. Sept. 30,
30,
------ ---------
For the Nine Months Ended: 2007 2006 2007 2006
-------- -------- ------ ---------
Insurance Companies:
Loss and LAE payments $ 91,643 $ 67,141 28.6% 29.0%
Change in reserves 93,238 68,415 29.1% 29.6%
-------- -------- ----- -------
Net incurred loss and LAE 184,881 135,556 57.7% 58.6%
-------- -------- ----- -------
Lloyd's Operations:
Loss and LAE payments $ 45,426 $ 48,272 37.8% 47.0%
Change in reserves 18,643 9,372 15.5% 9.1%
-------- -------- ----- -------
Net incurred loss and LAE 64,069 57,644 53.3% 56.2%
-------- -------- ----- -------
Total
Loss and LAE payments $137,069 115,413 31.1% 34.6%
Change in reserves 111,881 77,787 25.4% 23.3%
-------- -------- ----- -------
Net incurred loss and LAE $248,950 $193,200 56.5% 57.9%
======== ======== ===== =======
Impact of Prior Period Amounts Loss Ratio
Impact
------------------ ----------------
Favorable / (Unfavorable) Sept. Sept. Sept. Sept.
Development 30, 30, 30, 30,
For the Nine Months Ended: 2007 2006 2007 2006
-------- -------- ------ --------
Insurance Companies $ 22,171 $ 9,250 6.9% 4.0%
Lloyd's Operations 7,413 3,400 6.2% 3.3%
-------- -------- ----- -------
Total $ 29,584 $ 12,650 6.7% 3.8%
======== ======== ===== =======
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Loss Data
($'s in thousands)
Net Loss Reserves: 9/30/2007 12/31/2006
---------- -----------
Insurance Companies:
Marine $ 191,105 $ 179,393
Specialty 320,103 260,844
Professional Liability 68,119 51,571
Other 25,017 19,299
---------- -----------
Total Insurance Companies 604,344 511,107
---------- -----------
Lloyd's Operations:
Marine 173,270 173,497
Other 30,383 11,512
---------- -----------
Total Lloyd's Operations 203,653 185,009
---------- -----------
Total net loss reserves $ 807,997 $ 696,116
========== ===========
Total net case loss reserves $ 276,535 $ 243,183
Total net IBNR loss reserves 531,462 452,933
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Total net loss reserves $ 807,997 $ 696,116
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CONTACT: The Navigators Group, Inc.
Paul J. Malvasio, 914-933-6088
Executive Vice President and Chief Financial Officer
pmalvasio@navg.com
www.navg.com