Navigators Reports Third Quarter Earnings

Navigators Reports Third Quarter Earnings

STAMFORD, Conn., Nov. 7, 2013 (GLOBE NEWSWIRE) -- 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.

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 of3.9 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.

The Navigators Group, Inc. logo is available at
http://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.

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           2013        2012        Change 2013         2012        Change
Operations
                                                                       
Gross written        $312,076  $298,742  4.5%   $1,037,426 $964,878  7.5%
premiums
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       14,094     13,597     3.7%   41,997      40,632     3.4%
income
Total
other-than-temporary (1,821)    --        NM     (1,863)     (693)      NM
impairment losses
Portion of loss
recognized in other  --        --        NM     --         43         NM
comprehensive income
(before tax)
Net
other-than-temporary
impairment losses    (1,821)    --        NM     (1,863)     (650)      NM
recognized in
earnings
Net realized gains   (988)      4,761      NM     7,171       10,820     -33.7%
(losses)
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  125,086    128,850    -2.9%  387,576     370,242    4.7%
adjustmentexpenses
Commission expenses  27,685     31,258     -11.4% 82,631      90,211     -8.4%
Other operating      39,056     40,112     -2.6%  120,608     116,238    3.8%
expenses
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 31,090     18,140     71.4%  71,864      50,449     42.4%
taxes
                                                                       
Income tax expense   9,804      5,225      87.6%  22,731      14,731     54.3%
(benefit)
                                                                       
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%       
                                                                       
                                                                       
Balance Sheet Data   Sept. 30,   June 30,          Sept. 30,    Dec. 31,    
                     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%



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,      $1,981,731  $2,121,833
$2,034,765)
Equity securities, available-for-sale, at fair      158,890      101,297
value (cost: 2013, $131,046; 2012, $85,004)
Short-term investments, at cost which approximates  152,987      153,788
fair value
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   796,289      880,139
adjustment expenses
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       1,765        1,755
17,558,046 shares for 2012
Additional paid-in capital                          334,421      329,452
Treasury stock, at cost (3,511,380 shares for 2013  (155,801)    (155,801)
and 2012)
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



THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Comparative Premium Data
($ in thousands)
                                                                  
Gross Written       Three Months                Nine Months            
Premiums:
Insurance           2013       2012       Change 2013        2012       Change
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        32,469    33,534    -3.2%  97,679     97,629    0.1%
Liability
                   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        12,589    9,876     27.5%  41,934     31,524    33.0%
Liability
                   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%
                                                                  
Net Written         Three Months                Nine Months            
Premiums:
Insurance           2013       2012       Change 2013        2012       Change
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        25,300    26,084    -3.0%  75,830     75,374    0.6%
Liability
                   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        6,710     6,326     6.1%   21,821     17,698    23.3%
Liability
                   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%
                                                                  
Net Earned          Three Months                Nine Months            
Premiums:
Insurance           2013       2012       Change 2013        2012       Change
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        25,713    24,505    4.9%   75,873     70,277    8.0%
Liability
                   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        6,197     6,300     -1.6%  18,352     15,001    22.3%
Liability
                   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%



THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
September 30, 2013

($ in thousands)
                                                              
                            Insurance  Lloyd's    Corporate ^(1) Total
                             Companies  Operations
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          (95,315)  (29,771)  --            (125,086)
adjustment expenses
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  30,448    2,693     (2,051)       31,090
taxes
                                                              
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   58.5%      58.5%                    58.5%
expenses ratio
Commission expense ratio     12.3%      16.3%                    12.9%
Other operating expense      16.9%      21.7%                    18.4%
ratio ^(2)
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).
                                                              
                                                              
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
September 30, 2012

($ in thousands)
                                                              
                            Insurance  Lloyd's    Corporate ^(1) Total
                             Companies  Operations
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          (113,303)  (15,547)   --            (128,850)
adjustment expenses
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  1,415      18,733     (2,008)        18,140
taxes
                                                              
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   76.0%      29.8%                    64.0%
expenses ratio
Commission expense ratio     14.0%      20.9%                    15.5%
Other operating expense      18.9%      20.5%                    19.6%
ratio ^(2)
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).
                                                              
                                                              
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Nine Months Ended
September 30, 2013

($ in thousands)
                                                              
                            Insurance  Lloyd's    Corporate ^(1) Total
                             Companies  Operations
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          (308,968)  (78,608)   --            (387,576)
adjustment expenses
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  63,116     14,891     (6,143)        71,864
taxes
                                                              
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   65.2%      53.0%                    62.3%
expenses ratio
Commission expense ratio     12.5%      17.0%                    13.3%
Other operating expense      18.0%      23.0%                    19.5%
ratio ^(2)
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).
                                                              
                                                              
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Nine Months Ended
September 30, 2012

($ in thousands)
                                                              
                            Insurance  Lloyd's    Corporate ^(1) Total
                             Companies  Operations
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          (304,483)  (65,759)   --            (370,242)
adjustment expenses
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  17,625     38,853     (6,029)        50,449
taxes
                                                              
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   72.1%      41.6%                    63.8%
expenses ratio
Commission expense ratio     14.5%      19.4%                    15.5%
Other operating expense      18.9%      20.5%                    19.7%
ratio ^(2)
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).



THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Underwriting Results
($ in thousands)

             Three Months Ended September 30, 2013
Insurance     Net        Losses      Underwriting Underwriting Loss   Expense Combined
Companies:    Earned     and LAE     Expenses     Profit       Ratio  Ratio   Ratio
              Premiums   Incurred                 (Loss)
Marine        $31,490  $14,745   $10,997    $5,748     46.8%  34.9%   81.7%
Property      105,759   64,156     28,203      13,400      60.7%  26.6%   87.3%
Casualty
Professional  25,713    16,414     8,394       905         63.8%  32.7%   96.5%
Liability
Total
Insurance     162,962   95,315     47,594      20,053      58.5%  29.2%   87.7%
Companies
Lloyd's                                                                 
Operations:
Marine        34,264    22,129     13,240      (1,105)     64.6%  38.6%   103.2%
Property      10,472    3,661      4,428       2,383       35.0%  42.2%   77.2%
Casualty
Professional  6,197     3,981      1,689       527         64.3%  27.2%   91.5%
Liability
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
Insurance     Net        Losses      Underwriting Underwriting Loss   Expense Combined
Companies:    Earned     and LAE     Expenses     Profit       Ratio  Ratio   Ratio
              Premiums   Incurred                 (Loss)
Marine        $40,592  $29,187   $14,200    $(2,795)   71.9%  35.0%   106.9%
Property      83,993    67,474     25,753      (9,234)     80.3%  30.7%   111.0%
Casualty
Professional  24,505    16,642     9,032       (1,169)     67.9%  36.9%   104.8%
Liability
Total
Insurance     149,090   113,303    48,985      (13,198)    76.0%  32.9%   108.9%
Companies
Lloyd's                                                                 
Operations:
Marine        34,002    10,936     14,543      8,523       32.2%  42.7%   74.9%
Property      11,870    5,441      4,750       1,679       45.8%  40.1%   85.9%
Casualty
Professional  6,300     (830)      2,303       4,827       -13.2% 36.6%   23.4%
Liability
Total Lloyd's 52,172    15,547     21,596      15,029      29.8%  41.4%   71.2%
Operations
Total All     $201,262 $128,850  $70,581    $1,831     64.0%  35.1%   99.1%
                                                                       
                       Amounts                              Loss Ratio     
Net Incurred                                                   Sept.  Sept.
Loss Activity           Sept. 30,   Sept. 30,                30,    30,     
For the Three            2013        2012                      2013   2012
Months Ended:
Insurance                                                               
Companies:
Loss and LAE            $83,008   $98,857                50.9%  66.3%   
payments
Change in               12,307     14,446                  7.6%   9.7%    
reserves
Net incurred            95,315     113,303                 58.5%  76.0%   
loss and LAE
                                                                       
Lloyd's                                                                 
Operations:
Loss and LAE            27,038     24,019                  53.1%  46.0%   
payments
Change in               2,733      (8,472)                 5.4%   -16.2%  
reserves
Net incurred            29,771     15,547                  58.5%  29.8%   
loss and LAE
                                                                       
Total                                                                   
Loss and LAE            110,046    122,876                 51.5%  61.0%   
payments
Change in               15,040     5,974                   7.0%   3.0%    
reserves
Net incurred            $125,086  $128,850               58.5%  64.0%   
loss and LAE
                                                                       
Impact of                                                      Loss Ratio
Prior Years             Amounts                              Impact         
Reserves
Favorable /
(Unfavorable)            Sept. 30,   Sept. 30,                 Sept.  Sept.
Development             2013        2012                     30,    30,     
For the Three                                                  2013   2012
Months Ended:
Insurance               $3,094    $(3,607)               1.4%   -1.8%   
Companies
Lloyd's                 4,591      9,084                   2.1%   4.5%    
Operations
Total                   $7,685    $5,477                 3.5%   2.7%    
                                                                       
                                                                       
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Underwriting Results
($ in thousands)

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



THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Loss Data
($ in thousands)
                                                           
Net Loss Reserves, September 30, 2013: Case       IBNR       Total
                                       Reserves   Reserves
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
                                                          
Net Loss Reserves, December 31, 2012   Case       IBNR       Total
                                       Reserves   Reserves
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



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:

                       Fair           Gross         Gross        Cost or
September 30, 2013     Value          Unrealized    Unrealized   Amortized
                                      Gains         (Losses)     Cost
                      ($ in thousands)
Fixed maturities:                                             
U.S.Treasury bonds,
agency bonds and       $445,969     $3,683      $(5,694)   $447,980
foreign government
bonds
States, municipalities
and political          445,281       9,752        (12,240)    447,769
subdivisions
Mortgage- and
asset-backed                                                  
securities:
Agency mortgage-backed 300,347       7,966        (3,925)     296,306
securities
Residential mortgage   35,277        1,107        (224)       34,394
obligations
Asset-backed           88,714        795          (190)       88,109
securities
Commercial
mortgage-backed        173,069       8,386        (365)       165,048
securities
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 -    158,890       29,548       (1,704)     131,046
common stocks
                                                             
Short-term investments 152,987       --          --         152,987
                                                             
Cash                   130,513       --          --         130,513
                                                             
Total                  $2,424,121   $78,341     $(27,200)  $2,372,980
                                                             
                                                             
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:
                                                             
Agency mortgage-backed               Gross        Gross       Cost or
securities:            Fair           Unrealized    Unrealized   Amortized
                       Value         Gains        (Losses)    Cost
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
                                                             
Residential mortgage                 Gross        Gross       Cost or
obligations:           Fair           Unrealized    Unrealized   Amortized
                       Value         Gains        (Losses)    Cost
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

CONTACT: Ciro M. DeFalco
         Senior Vice President and Chief Financial Officer
         (203) 905-6343
         cdefalco@navg.com
         www.navg.com

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