STAMFORD, Conn., Aug. 08, 2018 (GLOBE NEWSWIRE) -- The Navigators Group, Inc. (NASDAQ:NAVG) reported Net Income of $32.1 million, or $1.07 per diluted share, for the three months ended June 30, 2018 compared to $20.5 million, or $0.69 per diluted share, for the same period in 2017. Net Operating Earnings¹ were $27.6 million, or $0.92 per diluted share, for the three months ended June 30, 2018 compared to $19.7 million, or $0.66 per diluted share, for the same period in 2017.

Gross Written Premiums and Net Written Premiums for the three months ended June 30, 2018 were $497.2 million and $379.3 million, respectively, increasing 10.0% and 13.8%, respectively, from the comparable period in 2017. The Combined Ratio for the three months ended June 30, 2018 was 96.0%, compared to 97.3% for the same period in 2017.

Net Investment Income for the three months ended June 30, 2018 was $24.6 million, an increase of 10.5% as compared to the same period in 2017. The annualized pre-tax investment yield, excluding Total Net Realized and Unrealized Gains and Losses recognized in the Results of Operations, was 2.8% for the three months ended June 30, 2018 and 2017.

Other Income (Loss) for the three months ended June 30, 2018 was $2.6 million, compared to $(0.4) million for the same period in 2017. Other Income (Loss) primarily consists of realized and unrealized foreign exchange gains and losses.

Stan Galanski, President and Chief Executive Officer, commented, “We are very pleased with our financial results and operating performance for the second quarter. We continued to achieve profitable underwriting results and double digit premium growth, led by our U.S. Insurance and GlobalRe segments. While the market remains competitive, we are encouraged by both positive renewal price movement for most of our specialty product lines during the quarter as well as by the number of insureds exiting unprofitable product lines, especially in the London market. Our investments continued to perform well, with Net Investment Income up 10.5% for the quarter and six months. During the quarter we completed the acquisition of Belgium based ASCO and BDM, a key to our future growth in the European Union.”

On June 7, 2018, the Company acquired 100% ownership interest in Bracht, Deckers & Mackelbert NV (“BDM”), a specialty underwriting agency, and its affiliated insurance company, Assurances Continentales – Continentale Verzekeringen NV (“ASCO”). The acquisition of BDM/ASCO was undertaken as part of the Company’s strategy of expanding to more brokers and insured across Europe and reinforces the Company’s presence in the European Union’s single market. We anticipate that this will enable the Company to better serve its European clients after Brexit and will also provide an opportunity for BDM and ASCO to reach a wider European audience.

For the six months ended June 30, 2018 the Company reported Net Income of $63.0 million, or $2.09 per diluted share compared to $41.6 million, or $1.39 per diluted share, for the same period in 2017. Net Operating Earnings¹ were $60.5 million, or $2.01 per diluted share, for the six months ended June 30, 2018 compared to $40.1 million, or $1.34 per diluted share, for the same period in 2017.

Gross Written Premiums and Net Written Premiums for the six months ended June 30, 2018 were $992.5 million and $772.6 million, respectively, increasing 10.0% and 15.2%, respectively, from the comparable period in 2017. The Combined Ratio for the six months ended June 30, 2018 was 95.0%, compared to 96.9% for the same period in 2017.

Net Investment Income for the six months ended June 30, 2018 was $48.3 million, an increase of 10.5% as compared to the same period in 2017. The annualized pre-tax investment yield, excluding Total Net Realized and Unrealized Gains and Losses recognized in the Results of Operations, was 2.8% for the six months ended June 30, 2018 compared to 2.7% for the same period in 2017.

Other Income for the six months ended June 30, 2018 was $2.5 million, compared to $0.7 million for the same period in 2017. Other Income for the six months ended June 30, 2018 included revenue from the sale of renewal rights for the Company’s fixed-premium protection and indemnity (“P&I”) business as well as net realized and unrealized foreign exchange gains. Other Income for the same period in 2017 primarily consisted of net realized and unrealized foreign exchange gains.

The Company’s investment portfolio mainly consists of fixed income securities with an average quality rating of “AA-/Aa3” as defined by S&P and Moody’s, respectively, with an effective duration of 3.5 years as of June 30, 2018. As of June 30, 2018, Net Unrealized Losses within the Available-For-Sale investment portfolio recognized in Accumulated Other Comprehensive Income were $30.1 million, a change of $71.6 million, compared to Net Unrealized Gains of $41.5 million as of December 31, 2017. Included in this change was the reclassification of $11.8 million of net unrealized gains, before tax, from Accumulated Other Comprehensive Income to Retained Earnings as a result of adopting ASU 2016-01.

The Company recognized $3.1 million of Total Net Realized and Unrealized Gains within the Results of Operations for the three months ended June 30, 2018, compared to $1.7 million for the same period in 2017. The Net Realized and Unrealized Gains within the Results of Operations for the three months ended June 30, 2018 included $1.3 million of Net Unrealized Gains on Equity Securities. For the six months ended June 30, 2018 the Company recognized $1.1 million of Total Net Realized and Unrealized Gains within the Results of Operations, compared to $1.7 million for the same period in 2017. The Net Realized and Unrealized Gains within the Results of Operations for the six months ended June 30, 2018 included $1.9 million of Net Unrealized Losses on Equity Securities.

The effective tax rate was 19.3% and 18.1% for the three and six months ended June 30, 2018, respectively, which compares to 25.4% and 26.0% for the same periods in 2017, with the decrease being primarily a result of changes related to 2017 tax reform.

Stockholders’ Equity was $1.2 billion, or $41.49 per share, as of June 30, 2018 compared to $40.96 per share, as of March 31, 2018, and $41.55 per share, as of December 31, 2017.

During the three months ended June 30, 2018, the Company declared and paid a quarterly cash dividend of $0.07 per share of Common Stock.

The Company will hold a conference call on Thursday, August 9, 2018 starting at 8:30 a.m. (ET) to discuss the 2018 second quarter results. The call will be available via live webcast on Navigators’ website (www.navg.com).

To participate by telephone, the domestic dial-in number is 800-850-2903 and the international dial-in is 224-357-2399. Participants may also connect to the webcast at: https://edge.media-server.com/m6/p/spw5hg2q

The Navigators Group, Inc. is an international specialty insurance holding company with operations in the United States, the United Kingdom, Continental Europe and Asia.

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. These forward-looking statements include statements on the financial impact of tax reform. We continue to assess the tax accounting effects of tax reform. We cannot assure that results that we anticipate will be achieved, since results may differ materially because of known and unknown risks and uncertainties that we face. Please refer to Navigators’ most recent reports on Forms 10-K and 10-Q and its other filings with the Securities and Exchange Commission for a description of Navigators’ business and the important factors that may affect that business. Navigators’ undertakes no obligation to publicly update or revise any forward-looking statement.

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

¹ Net Operating Earnings is a “non-GAAP financial measure” as defined in Regulation G. A reconciliation of Net Income (the nearest GAAP financial measure) to Net Operating Earnings is provided on page 4 of this release, as is a discussion of the rationale for the presentation of this item.

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)

		Three Months Ended												Six Months Ended
amounts in thousands, except per share amounts		June 30,												June 30,
Results of Operations		2018				2017				Change				2018				2017				Change
Gross Written Premiums		$	497,236			$	452,179				10.0%			$	992,460			$	902,484				10.0%
Net Written Premiums			379,292				333,282				13.8%				772,554				670,445				15.2%
Revenues:
Net Earned Premiums		$	331,015			$	293,835				12.7%			$	653,642			$	579,966				12.7%
Net Investment Income			24,601				22,265				10.5%				48,303				43,713				10.5%
Net Realized and Unrealized Gains (Losses):
Total Other-Than-Temporary Impairment   Losses			(18)				29			NM					(55)				(1,048)				(94.7%)
Portion of Loss Recognized in Other   Comprehensive Income (Before Tax)			18				(29)			NM					55				(45)			NM
Net Other-Than-Temporary Impairment Losses   Recognized In Earnings			—				—			NM					—				(1,093)			NM
Net Realized Gains on Investments Sold			1,787				1,694				5.5%				2,956				2,743				7.7%
Net Unrealized Gains (Losses) on Equity   Securities at Fair Value			1,329				—			NM					(1,852)				—			NM
Total Net Realized and Unrealized Gains			3,116				1,694				83.9%				1,104				1,650				(33.1%)
Other Income (Loss)			2,628				(411)			NM					2,511				657			NM
Total Revenues		$	361,360			$	317,383				13.9%			$	705,560			$	625,986				12.7%
Expenses:
Net Losses and Loss Adjustment Expenses		$	196,333			$	177,110				10.9%			$	382,478			$	346,710				10.3%
Commission Expenses			53,193				48,173				10.4%				107,345				96,017				11.8%
Other Operating Expenses			68,182				60,766				12.2%				131,108				119,304				9.9%
Interest Expense			3,864				3,861				0.1%				7,728				7,722				0.1%
Total Expenses		$	321,572			$	289,910				10.9%			$	628,659			$	569,753				10.3%
Income Before Income Taxes		$	39,788			$	27,473				44.8%			$	76,901			$	56,233				36.8%
Income Tax Expense			7,684				6,971				10.2%				13,919				14,621				(4.8%)
Net Income		$	32,104			$	20,502				56.6%			$	62,982			$	41,612				51.4%
Per Share Data
Net Income Per Common Share:
Basic		$	1.08			$	0.70				55.2%			$	2.12			$	1.42				49.9%
Diluted		$	1.07			$	0.69				55.6%			$	2.09			$	1.39				50.1%
Average Common Shares Outstanding:
Basic			29,733				29,470								29,664				29,377
Diluted			30,103				29,918								30,143				29,897
Underwriting Ratios
Loss Ratio			59.3%				60.3%								58.5%				59.8%
Expense Ratio			36.7%				37.0%								36.5%				37.1%
Combined Ratio			96.0%				97.3%								95.0%				96.9%
Balance Sheet Data		June 30,				March 31,								June 30,				December 31,
		2018				2018								2018				2017
Stockholders' Equity		$	1,234,084			$	1,216,952				1.4%			$	1,234,084			$	1,225,965				0.7%
Book Value per Share		$	41.49			$	40.96				1.3%			$	41.49			$	41.55				(0.1%)

NM - Percentage change not meaningful.

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION OF NET INCOME TO NET OPERATING EARNINGS
(Unaudited)

In this release, we present Net Operating Earnings, which is a “non-GAAP financial measure” as defined in Regulation G.

Net Operating Earnings is comprised of Net Income excluding After-Tax Total Net Realized and Unrealized Gains (Losses), After-Tax Foreign Exchange Gains (Losses), and the Net Gain on Disposition of Product Line recognized in the Results of Operations.

We believe this presentation enhances the understanding of the results of operations by highlighting the underlying profitability of the business and enables investors and other users of the financial information to analyze underlying business performance in a manner similar to management. We also believe this measure follows industry practice and, therefore facilitates comparison of our performance with our peer group.

The following tables provide a reconciliation of Net Income (the nearest GAAP financial measure) to Net Operating Earnings:

		Three Months Ended June 30, 2018												Three Months Ended June 30, 2017												% Change
amounts in thousands, except per share amounts		Pre-Tax				Tax (1)				After-Tax				Pre-Tax				Tax (1)				After-Tax				QTD
Net Income		$	39,788			$	(7,684)			$	32,104			$	27,473			$	(6,971)			$	20,502				56.6%
Adjustments to Net Income:
Total Net Realized and Unrealized Losses			(3,116)				654				(2,462)				(1,694)				593				(1,101)				123.7%
FX Losses (Gains)			(2,586)				543				(2,043)				463				(162)				301			NM
Net Operating Earnings		$	34,086			$	(6,487)			$	27,599			$	26,242			$	(6,540)			$	19,702				40.1%
Average Common Shares Outstanding:
Basic											29,733												29,470
Diluted											30,103												29,918
Net Operating Earnings per Common Share:
Basic										$	0.93											$	0.67
Diluted										$	0.92											$	0.66

(1) - Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of any other relevant factors.
NM - Percentage change not meaningful.

		Six Months Ended June 30, 2018												Six Months Ended June 30, 2017												% Change
amounts in thousands, except per share amounts		Pre-Tax				Tax (1)				After-Tax				Pre-Tax				Tax (1)				After-Tax				YTD
Net Income		$	76,901			$	(13,919)			$	62,982			$	56,233			$	(14,621)			$	41,612				51.4%
Adjustments to Net Income:
Total Net Realized and Unrealized Losses			(1,104)				232				(872)				(1,650)				578				(1,072)				(18.6%)
FX Losses (Gains)			(1,064)				223				(841)				(660)				231				(429)				96.1%
Net Gain on Disposition of Product Line			(948)				199				(749)				—				—				—			NM
Net Operating Earnings		$	73,785			$	(13,265)			$	60,520			$	53,923			$	(13,812)			$	40,111				50.9%
Average Common Shares Outstanding:
Basic											29,664												29,377
Diluted											30,143												29,897
Net Operating Earnings per Common Share:
Basic										$	2.04											$	1.37
Diluted										$	2.01											$	1.34

(1) - Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of any other relevant factors.
NM - Percentage change not meaningful.

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

		June 30,				December 31,
		2018				2017
amounts in thousands, except per share amounts		(Unaudited)
ASSETS
Investments:
Fixed Maturities, available-for-sale, at fair value (amortized cost: 2018:  $2,991,629;   2017: $3,027,408)		$	2,961,541			$	3,057,054
Equity Securities, at fair value  (cost: 2018: $317,497; 2017: $224,159)			327,466				235,981
Other Invested Assets			38,372				30,488
Short-Term Investments, available-for-sale, at fair value (amortized cost: 2018: $6,368;   2017: $6,477)			6,368				6,480
Total Investments		$	3,333,747			$	3,330,003
Cash and Cash Equivalents			175,834				102,735
Restricted Cash and Cash Equivalents			47,522				56,229
Premiums Receivable			455,742				351,393
Prepaid Reinsurance Premiums			239,660				228,569
Reinsurance Recoverable on Paid Losses			94,503				72,494
Reinsurance Recoverable on Unpaid Losses and Loss Adjustment Expenses			799,084				809,765
Deferred Policy Acquisition Costs			157,153				135,249
Accrued Investment Income			20,276				19,480
Goodwill and Other Intangible Assets			28,272				6,596
Current Income Tax Receivable, Net			21,395				16,667
Deferred Income Tax, Net			24,552				22,271
Other Assets			91,205				73,171
Total Assets		$	5,488,945			$	5,224,622
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Reserves for Losses and Loss Adjustment Expenses		$	2,574,116			$	2,515,145
Unearned Premiums			1,125,731				987,681
Reinsurance Balances Payable			132,285				136,192
Senior Notes			263,967				263,885
Payable for Investments Purchased			45,800				—
Accounts Payable and Other Liabilities			112,962				95,754
Total Liabilities		$	4,254,861			$	3,998,657
Stockholders' Equity:
Preferred Stock ($.10 par value per share, authorized 1,000 shares, none issued)		$	—			$	—
Common Stock ($.10 par value per share, authorized 50,000 shares, issued   36,764 shares for 2018 and 36,530 shares for 2017)			3,673				3,650
Additional Paid-In Capital			376,705				376,868
Treasury Stock, at cost (7,023 shares for 2018 and 2017)			(155,801)				(155,801)
Retained Earnings			1,045,131				981,380
Accumulated Other Comprehensive Income			(35,624)				19,868
Total Stockholders' Equity		$	1,234,084			$	1,225,965
Total Liabilities and Stockholders' Equity		$	5,488,945			$	5,224,622

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
(Unaudited)

		Three Months Ended June 30, 2018
		U.S.				Int'l
amounts in thousands		Insurance				Insurance				GlobalRe				Corporate (1)				Total
Gross Written Premiums		$	288,478			$	132,523			$	76,235			$	—			$	497,236
Ceded Written Premiums			(76,144)				(39,882)				(1,918)				—				(117,944)
Net Written Premiums			212,334				92,641				74,317				—				379,292
Net Earned Premiums		$	179,746			$	92,071			$	59,198			$	—			$	331,015
Net Losses and LAE			(111,885)				(52,304)				(32,144)				—				(196,333)
Commission Expenses			(20,382)				(19,863)				(13,148)				200				(53,193)
Other Operating Expenses			(38,447)				(23,299)				(6,436)				—				(68,182)
Other Underwriting Income (Expense)			71				—				136				(200)				7
Underwriting Profit (Loss)		$	9,103			$	(3,395)			$	7,606			$	—			$	13,314
Net Investment Income															24,601				24,601
Total Net Realized and Unrealized Gains															3,116				3,116
Interest Expense															(3,864)				(3,864)
Other Income															2,621				2,621
Income (Loss) Before Income Taxes		$	9,103			$	(3,395)			$	7,606			$	26,474			$	39,788
Income Tax Expense															(7,684)				(7,684)
Net Income																		$	32,104
Losses and LAE Ratio			62.2%				56.8%				54.3%								59.3%
Commission Expense Ratio			11.3%				21.6%				22.2%								16.1%
Other Operating Expense Ratio (2)			21.4%				25.3%				10.7%								20.6%
Combined Ratio			94.9%				103.7%				87.2%								96.0%

(1) - Includes Corporate segment intercompany eliminations.
(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
(Unaudited)

		Three Months Ended June 30, 2017
		U.S.				Int'l
amounts in thousands		Insurance				Insurance				GlobalRe				Corporate (1)				Total
Gross Written Premiums		$	257,186			$	131,193			$	63,800			$	—			$	452,179
Ceded Written Premiums			(73,857)				(43,809)				(1,231)				—				(118,897)
Net Written Premiums			183,329				87,384				62,569				—				333,282
Net Earned Premiums		$	167,087			$	82,100			$	44,648			$	—			$	293,835
Net Losses and LAE			(105,270)				(44,095)				(27,745)				—				(177,110)
Commission Expenses			(20,460)				(19,001)				(8,970)				258				(48,173)
Other Operating Expenses			(33,140)				(22,506)				(5,120)				—				(60,766)
Other Underwriting Income (Expense)			100				—				169				(258)				11
Underwriting Profit (Loss)		$	8,317			$	(3,502)			$	2,982			$	—			$	7,797
Net Investment Income															22,265				22,265
Total Net Realized and Unrealized Gains															1,694				1,694
Interest Expense															(3,861)				(3,861)
Other Loss															(422)				(422)
Income (Loss) Before Income Taxes		$	8,317			$	(3,502)			$	2,982			$	19,676			$	27,473
Income Tax Expense															(6,971)				(6,971)
Net Income																		$	20,502
Losses and LAE Ratio			63.0%				53.7%				62.1%								60.3%
Commission Expense Ratio			12.2%				23.1%				20.1%								16.4%
Other Operating Expense Ratio (2)			19.8%				27.5%				11.1%								20.6%
Combined Ratio			95.0%				104.3%				93.3%								97.3%

(1) - Includes Corporate segment intercompany eliminations.
(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
(Unaudited)

		Six Months Ended June 30, 2018
		U.S.				Int'l
amounts in thousands		Insurance				Insurance				GlobalRe				Corporate (1)				Total
Gross Written Premiums		$	528,406			$	260,395			$	203,659			$	—			$	992,460
Ceded Written Premiums			(142,725)				(68,770)				(8,411)				—				(219,906)
Net Written Premiums			385,681				191,625				195,248				—				772,554
Net Earned Premiums		$	352,659			$	185,281			$	115,702			$	—			$	653,642
Net Losses and LAE			(222,307)				(98,147)				(62,024)				—				(382,478)
Commission Expenses			(41,243)				(39,619)				(26,916)				433				(107,345)
Other Operating Expenses			(75,438)				(43,829)				(11,841)				—				(131,108)
Other Underwriting Income (Expense)			169				—				274				(433)				10
Underwriting Profit		$	13,840			$	3,686			$	15,195			$	—			$	32,721
Net Investment Income															48,303				48,303
Total Net Realized and Unrealized Gains															1,104				1,104
Interest Expense															(7,728)				(7,728)
Other Income															2,501				2,501
Income Before Income Taxes		$	13,840			$	3,686			$	15,195			$	44,179			$	76,901
Income Tax Expense															(13,919)				(13,919)
Net Income																		$	62,982
Losses and LAE Ratio			63.0%				53.0%				53.6%								58.5%
Commission Expense Ratio			11.7%				21.4%				23.3%								16.4%
Other Operating Expense Ratio (2)			21.4%				23.6%				10.0%								20.1%
Combined Ratio			96.1%				98.0%				86.9%								95.0%

(1) - Includes Corporate segment intercompany eliminations.
(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
(Unaudited)

		Six Months Ended June 30, 2017
		U.S.				Int'l
amounts in thousands		Insurance				Insurance				GlobalRe				Corporate (1)				Total
Gross Written Premiums		$	494,791			$	273,053			$	134,640			$	—			$	902,484
Ceded Written Premiums			(135,344)				(90,402)				(6,293)				—				(232,039)
Net Written Premiums			359,447				182,651				128,347				—				670,445
Net Earned Premiums		$	331,091			$	166,186			$	82,689			$	—			$	579,966
Net Losses and LAE			(204,096)				(94,800)				(47,814)				—				(346,710)
Commission Expenses			(40,844)				(38,234)				(17,462)				523				(96,017)
Other Operating Expenses			(66,612)				(42,299)				(10,393)				—				(119,304)
Other Underwriting Income (Expense)			210				—				345				(523)				32
Underwriting Profit (Loss)		$	19,749			$	(9,147)			$	7,365			$	—			$	17,967
Net Investment Income															43,713				43,713
Total Net Realized and Unrealized Gains															1,650				1,650
Interest Expense															(7,722)				(7,722)
Other Income															625				625
Income (Loss) Before Income Taxes		$	19,749			$	(9,147)			$	7,365			$	38,266			$	56,233
Income Tax Expense															(14,621)				(14,621)
Net Income																		$	41,612
Losses and LAE Ratio			61.6%				57.0%				57.8%								59.8%
Commission Expense Ratio			12.3%				23.0%				21.1%								16.6%
Other Operating Expense Ratio (2)			20.1%				25.5%				12.2%								20.5%
Combined Ratio			94.0%				105.5%				91.1%								96.9%

(1) - Includes Corporate segment intercompany eliminations.
(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Reportable Segment Results
(Unaudited)

		U.S. Insurance
		Three Months Ended June 30, 2018																Three Months Ended June 30, 2017
amounts in thousands		Marine				P&C				Professional Liability				Total				Marine				P&C				Professional Liability				Total				% Change Total
Gross Written Premiums		$	38,830			$	217,984			$	31,664			$	288,478			$	41,687			$	187,492			$	28,007			$	257,186				12.2%
Ceded Written Premiums			(16,918)				(54,835)				(4,391)				(76,144)				(19,451)				(51,147)				(3,259)				(73,857)				3.1%
Net Written Premiums			21,912				163,149				27,273				212,334				22,236				136,345				24,748				183,329				15.8%
Net Earned Premiums		$	21,177			$	132,630			$	25,939			$	179,746			$	21,812			$	121,226			$	24,049			$	167,087				7.6%
Net Losses and LAE			(9,517)				(86,192)				(16,176)				(111,885)				(12,767)				(77,858)				(14,645)				(105,270)				6.3%
Commission Expenses			(780)				(15,089)				(4,513)				(20,382)				(1,575)				(15,232)				(3,653)				(20,460)				(0.4%)
Other Operating Expenses			(6,934)				(26,231)				(5,282)				(38,447)				(6,798)				(21,645)				(4,697)				(33,140)				16.0%
Other Underwriting Income			53				13				5				71				82				9				9				100				(29.0%)
Underwriting Profit (Loss)		$	3,999			$	5,131			$	(27)			$	9,103			$	754			$	6,500			$	1,063			$	8,317				9.5%
Losses and LAE Ratio			44.9%				65.0%				62.4%				62.2%				58.5%				64.2%				60.9%				63.0%
Commission Expense Ratio			3.7%				11.4%				17.4%				11.3%				7.2%				12.6%				15.2%				12.2%
Other Operating Expense Ratio (1)			32.5%				19.7%				20.3%				21.4%				30.8%				17.8%				19.5%				19.8%
Combined Ratio			81.1%				96.1%				100.1%				94.9%				96.5%				94.6%				95.6%				95.0%

(1) - Includes Other Operating Expenses and Other Underwriting Income.

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Reportable Segment Results
(Unaudited)

		Int'l Insurance
		Three Months Ended June 30, 2018																Three Months Ended June 30, 2017
amounts in thousands		Marine				P&C				Professional Liability				Total				Marine				P&C				Professional Liability				Total				% Change Total
Gross Written Premiums		$	40,714			$	46,579			$	45,230			$	132,523			$	49,597			$	46,663			$	34,933			$	131,193				1.0%
Ceded Written Premiums			(11,523)				(17,705)				(10,654)				(39,882)				(12,536)				(20,362)				(10,911)				(43,809)				(9.0%)
Net Written Premiums			29,191				28,874				34,576				92,641				37,061				26,301				24,022				87,384				6.0%
Net Earned Premiums		$	37,197			$	23,715			$	31,159			$	92,071			$	39,525			$	23,337			$	19,238			$	82,100				12.1%
Net Losses and LAE			(29,287)				(6,294)				(16,723)				(52,304)				(23,848)				(8,867)				(11,380)				(44,095)				18.6%
Commission Expenses			(8,945)				(2,984)				(7,935)				(19,863)				(9,517)				(4,577)				(4,907)				(19,001)				4.5%
Other Operating Expenses			(7,931)				(8,703)				(6,664)				(23,299)				(9,226)				(7,946)				(5,334)				(22,506)				3.5%
Underwriting Profit (Loss)		$	(8,966)			$	5,734			$	(163)			$	(3,395)			$	(3,066)			$	1,947			$	(2,383)			$	(3,502)				(3.0%)
Losses and LAE Ratio			78.7%				26.5%				53.7%				56.8%				60.3%				38.0%				59.2%				53.7%
Commission Expense Ratio			24.0%				12.6%				25.5%				21.6%				24.1%				19.6%				25.5%				23.1%
Other Operating Expense Ratio			21.4%				36.7%				21.3%				25.3%				23.4%				34.1%				27.7%				27.5%
Combined Ratio			124.1%				75.8%				100.5%				103.7%				107.8%				91.7%				112.4%				104.3%

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Reportable Segment Results
(Unaudited)

		U.S. Insurance
		Six Months Ended June 30, 2018																Six Months Ended June 30, 2017
amounts in thousands		Marine				P&C				Professional Liability				Total				Marine				P&C				Professional Liability				Total				% Change Total
Gross Written Premiums		$	80,554			$	386,177			$	61,675			$	528,406			$	82,637			$	358,126			$	54,028			$	494,791				6.8%
Ceded Written Premiums			(34,398)				(99,747)				(8,580)				(142,725)				(36,971)				(89,345)				(9,028)				(135,344)				5.5%
Net Written Premiums			46,156				286,430				53,095				385,681				45,666				268,781				45,000				359,447				7.3%
Net Earned Premiums		$	42,269			$	260,220			$	50,170			$	352,659			$	44,506			$	240,349			$	46,236			$	331,091				6.5%
Net Losses and LAE			(25,269)				(167,110)				(29,928)				(222,307)				(26,542)				(149,607)				(27,947)				(204,096)				8.9%
Commission Expenses			(2,188)				(30,256)				(8,799)				(41,243)				(3,047)				(30,598)				(7,199)				(40,844)				1.0%
Other Operating Expenses			(13,209)				(51,855)				(10,374)				(75,438)				(13,619)				(43,459)				(9,534)				(66,612)				13.3%
Other Underwriting Income			130				28				11				169				165				27				18				210				(19.5%)
Underwriting Profit		$	1,733			$	11,027			$	1,080			$	13,840			$	1,463			$	16,712			$	1,574			$	19,749				(29.9%)
Losses and LAE Ratio			59.8%				64.2%				59.7%				63.0%				59.6%				62.2%				60.4%				61.6%
Commission Expense Ratio			5.2%				11.6%				17.5%				11.7%				6.8%				12.7%				15.6%				12.3%
Other Operating Expense Ratio (1)			30.9%				20.0%				20.6%				21.4%				30.3%				18.1%				20.6%				20.1%
Combined Ratio			95.9%				95.8%				97.8%				96.1%				96.7%				93.0%				96.6%				94.0%

(1) - Includes Other Operating Expenses and Other Underwriting Income.

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Reportable Segment Results
(Unaudited)

		Int'l Insurance
		Six Months Ended June 30, 2018																Six Months Ended June 30, 2017
amounts in thousands		Marine				P&C				Professional Liability				Total				Marine				P&C				Professional Liability				Total				% Change Total
Gross Written Premiums		$	97,192			$	80,539			$	82,664			$	260,395			$	118,430			$	87,031			$	67,592			$	273,053				(4.6%)
Ceded Written Premiums			(19,577)				(31,372)				(17,821)				(68,770)				(23,462)				(50,008)				(16,932)				(90,402)				(23.9%)
Net Written Premiums			77,615				49,167				64,843				191,625				94,968				37,023				50,660				182,651				4.9%
Net Earned Premiums		$	76,476			$	45,484			$	63,321			$	185,281			$	77,020			$	45,517			$	43,649			$	166,186				11.5%
Net Losses and LAE			(49,733)				(15,517)				(32,897)				(98,147)				(44,449)				(24,736)				(25,615)				(94,800)				3.5%
Commission Expenses			(18,675)				(5,549)				(15,396)				(39,619)				(19,058)				(8,319)				(10,857)				(38,234)				3.6%
Other Operating Expenses			(14,741)				(16,382)				(12,705)				(43,829)				(17,666)				(14,369)				(10,264)				(42,299)				3.6%
Underwriting Profit (Loss)		$	(6,673)			$	8,036			$	2,323			$	3,686			$	(4,153)			$	(1,907)			$	(3,087)			$	(9,147)			NM
Losses and LAE Ratio			65.0%				34.1%				52.0%				53.0%				57.7%				54.3%				58.7%				57.0%
Commission Expense Ratio			24.4%				12.2%				24.3%				21.4%				24.7%				18.3%				24.9%				23.0%
Other Operating Expense Ratio			19.3%				36.0%				20.0%				23.6%				23.0%				31.6%				23.5%				25.5%
Combined Ratio			108.7%				82.3%				96.3%				98.0%				105.4%				104.2%				107.1%				105.5%

NM – Percentage change not meaningful

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Incurred Loss Activity
(Unaudited)

		For the Three Months Ended June 30,
amounts in thousands		Amounts								Loss Ratio
Net Incurred Loss Activity		2018				2017				2018				2017
U.S. Insurance:
Loss and LAE Payments		$	81,269			$	86,792				45.2%				51.9%
Change in Reserves			30,616				18,478				17.0%				11.1%
Net Incurred Loss and LAE		$	111,885			$	105,270				62.2%				63.0%
Int'l Insurance:
Loss and LAE Payments		$	56,926			$	46,050				61.8%				56.1%
Change in Reserves			(4,622)				(1,955)				(5.0%)				(2.4%)
Net Incurred Loss and LAE		$	52,304			$	44,095				56.8%				53.7%
GlobalRe:
Loss and LAE Payments		$	22,413			$	21,279				37.9%				47.6%
Change in Reserves			9,731				6,466				16.4%				14.5%
Net Incurred Loss and LAE		$	32,144			$	27,745				54.3%				62.1%
Total
Loss and LAE Payments		$	160,608			$	154,121				48.5%				52.5%
Change in Reserves			35,725				22,989				10.8%				7.8%
Net Incurred Loss and LAE		$	196,333			$	177,110				59.3%				60.3%
		For the Three Months Ended June 30,
Impact of Prior Years Reserves		Amounts								Loss Ratio Impact
Favorable / (Unfavorable) Development		2018				2017				2018				2017
U.S. Insurance		$	2,220			$	(295)				0.7%				(0.1%)
Int'l Insurance			(3,330)				(4,743)				(1.0%)				(1.6%)
GlobalRe			(244)				(2,992)				(0.1%)				(1.0%)
Total		$	(1,354)			$	(8,030)				(0.4%)				(2.7%)

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Incurred Loss Activity
(Unaudited)

		For the Six Months Ended June 30,
amounts in thousands		Amounts								Loss Ratio
Net Incurred Loss Activity		2018				2017				2018				2017
U.S. Insurance:
Loss and LAE Payments		$	168,820			$	156,563				47.8%				47.2%
Change in Reserves			53,487				47,533				15.2%				14.4%
Net Incurred Loss and LAE		$	222,307			$	204,096				63.0%				61.6%
Int'l Insurance:
Loss and LAE Payments		$	105,169			$	90,958				56.8%				54.7%
Change in Reserves			(7,022)				3,842				(3.8%)				2.3%
Net Incurred Loss and LAE		$	98,147			$	94,800				53.0%				57.0%
GlobalRe:
Loss and LAE Payments		$	51,686			$	49,609				44.8%				60.0%
Change in Reserves			10,338				(1,795)				8.8%				(2.2%)
Net Incurred Loss and LAE		$	62,024			$	47,814				53.6%				57.8%
Total
Loss and LAE Payments		$	325,675			$	297,130				49.8%				51.3%
Change in Reserves			56,803				49,580				8.7%				8.5%
Net Incurred Loss and LAE		$	382,478			$	346,710				58.5%				59.8%
		For the Six Months Ended June 30,
Impact of Prior Years Reserves		Amounts								Loss Ratio Impact
Favorable / (Unfavorable) Development		2018				2017				2018				2017
U.S. Insurance		$	(2,593)			$	177				(0.4%)				0.0%
Int'l Insurance			(847)				(11,359)				(0.1%)				(2.0%)
GlobalRe			120				(3,933)				0.0%				(0.7%)
Total		$	(3,320)			$	(15,115)				(0.5%)				(2.7%)

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Loss Data
(Unaudited)

		As of June 30, 2018
amounts in thousands		Case				IBNR
Net Loss Reserves:		Reserves				Reserves				Total
U.S. Insurance:
Marine		$	51,576			$	50,637			$	102,213
P&C			197,765				740,654				938,419
Professional Liability			34,839				87,603				122,442
Total U.S. Insurance		$	284,180			$	878,894			$	1,163,074
Int'l Insurance:
Marine		$	172,149			$	36,540			$	208,689
P&C			75,011				24,928				99,939
Professional Liability			39,551				101,453				141,004
Total Int'l Insurance		$	286,711			$	162,921			$	449,632
GlobalRe		$	58,300			$	104,026			$	162,326
Total Net Loss Reserves		$	629,191			$	1,145,841			$	1,775,032
		As of December 31, 2017
		Case				IBNR
Net Loss Reserves:		Reserves				Reserves				Total
U.S. Insurance:
Marine		$	58,301			$	45,393			$	103,694
P&C			192,291				700,264				892,555
Professional Liability			26,774				86,649				113,423
Total U.S. Insurance		$	277,366			$	832,306			$	1,109,672
Int'l Insurance:
Marine		$	181,369			$	39,949			$	221,318
P&C			66,412				37,067				103,479
Professional Liability			31,463				87,211				118,674
Total Int'l Insurance		$	279,244			$	164,227			$	443,471
GlobalRe		$	58,962			$	93,275			$	152,237
Total Net Loss Reserves		$	615,572			$	1,089,808			$	1,705,380

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Investment Data
(Unaudited)

As of June 30, 2018, the average quality of the investment portfolio as rated by S&P and Moody’s was “AA-/Aa3”, respectively, with an effective duration of 3.5 years. The Company does not own any collateralized debt obligations or asset backed commercial paper.

The following table sets forth the Available-For-Sale Investments as of June 30, 2018:

		As of June 30, 2018
						Gross				Gross				Cost or
		Fair				Unrealized				Unrealized				Amortized
amounts in thousands		Value				Gains				(Losses)				Cost
Fixed Maturities:
U.S. Treasury Bonds, Agency Bonds and Foreign   Government Bonds		$	289,612			$	955			$	(4,189)			$	292,846
States, Municipalities and Political Subdivisions			658,129				10,410				(4,870)				652,589
Mortgage-Backed and Asset-Backed Securities:
Agency Mortgage-Backed Securities			362,870				1,091				(14,497)				376,276
Residential Mortgage Obligations			96,134				464				(431)				96,101
Asset-Backed Securities			476,838				737				(2,749)				478,850
Commercial Mortgage-Backed Securities			168,609				807				(2,817)				170,619
Subtotal		$	1,104,451			$	3,099			$	(20,494)			$	1,121,846
Corporate Exposures (1)			909,349				4,303				(19,302)				924,348
Total Fixed Maturities		$	2,961,541			$	18,767			$	(48,855)			$	2,991,629
Short-Term Investments			6,368				—				—				6,368
Total Available-For-Sale Investments		$	2,967,909			$	18,767			$	(48,855)			$	2,997,997

(1) - Corporate Exposures consist of investments in corporate bonds, hybrid bonds and redeemable preferred stocks.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.