0001564590-18-021116.txt : 20180809 0001564590-18-021116.hdr.sgml : 20180809 20180809165609 ACCESSION NUMBER: 0001564590-18-021116 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20180808 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180809 DATE AS OF CHANGE: 20180809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NAVIGATORS GROUP INC CENTRAL INDEX KEY: 0000793547 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 133138397 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15886 FILM NUMBER: 181006091 BUSINESS ADDRESS: STREET 1: 400 ATLANTIC STREET STREET 2: 8TH FLOOR CITY: STAMFORD STATE: CT ZIP: 06901 BUSINESS PHONE: 203-905-6090 MAIL ADDRESS: STREET 1: 400 ATLANTIC STREET STREET 2: 8TH FLOOR CITY: STAMFORD STATE: CT ZIP: 06901 8-K 1 navg-8k_20180808.htm 8-K navg-8k_20180808.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

_____________________

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported) August 8, 2018

 

THE NAVIGATORS GROUP, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

0-15886

13-3138397

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

 

400 Atlantic Street, 8th Floor, Stamford, Connecticut

 

06901

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (203) 905-6090

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.Results of Operations and Financial Condition

 

The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and Item 7.01, “Regulation FD Disclosure.”  This information, including Exhibit 99.1 attached hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

On August 8, 2018, The Navigators Group, Inc. issued a press release announcing its earnings for the second quarter of 2018.  This press release is attached hereto as Exhibit 99.1.

 

Item 7.01.Regulation FD Disclosure

 

See Item 2.02, above.

 

Item 8.01.Other Events

 

On August 9, 2018 the Board of Directors of The Navigators Group, Inc. authorized and declared a quarterly cash dividend of $0.07 per share of common stock, payable on September 21, 2018 to stockholders of record at the close of business on August 31, 2018.  The press release announcing the dividend is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

 

Item 9.01.Financial Statements and Exhibits

 

(d)Exhibits

 

 

 

 

 

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

THE NAVIGATORS GROUP, INC.

 

By:

/s/ Emily B. Miner

 

Name : Emily B. Miner

 

Title: Senior Vice President and General Counsel

 

 

 

Date: August 9, 2018

 

 

 EX-99.1 2 navg-ex991_6.htm EX-99.1 navg-ex991_6.htm

 

Exhibit 99.1

 

 

The Navigators Group, Inc.

CORPORATE NEWS

Navigators Reports Record Net Income in Second Quarter 2018

Stamford, CT – August 8, 2018 -- 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 insurers 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 insureds 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.

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.

 

 

News Release

August 8, 2018

Page 2

 

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

 

 

News Release

August 8, 2018

Page 3

 

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.

 

News Release

August 8, 2018

Page 4

 

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.

 

 

News Release

August 8, 2018

Page 5

 

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

 

 

 

 

News Release

August 8, 2018

Page 6

 

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).

 

News Release

August 8, 2018

Page 7

 

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).

 

News Release

August 8, 2018

Page 8

 

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).

 

 

News Release

August 8, 2018

Page 9

 

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).

 

 

News Release

August 8, 2018

Page 10

 

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.

 

News Release

August 8, 2018

Page 11

 

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

%

 

 

 

 

 

 

News Release

August 8, 2018

Page 12

 

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.

 

 

News Release

August 8, 2018

Page 13

 

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

 

 

News Release

August 8, 2018

Page 14

 

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

%)

 

 

News Release

August 8, 2018

Page 15

 

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

%)

 

 

News Release

August 8, 2018

Page 16

 

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

 

 

 

News Release

August 8, 2018

Page 17

 

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.

 EX-99.2 3 navg-ex992_137.htm EX-99.2 navg-ex992_137.htm

Exhibit 99.2

Navigators Announces Third Quarter 2018 Dividend

STAMFORD, Conn., August 9, 2018—The Navigators Group, Inc. (NASDAQ:NAVG) announced today that its Board of Directors declared a cash dividend of $0.07 per share of common stock for the third quarter of 2018. The dividend will be payable on September 21, 2018 to the Company's stockholders of record at the close of business on August 31, 2018.

About Navigators

The Navigators Group, Inc. (Nasdaq: NAVG) is a global specialty insurance holding company.  We provide customized insurance solutions designed to protect clients from the complex risks they face.   For more than 40 years, Navigators has added value for policyholders—both in underwriting and in claims—through the depth and quality of our technical and industry expertise.  Industries we serve include maritime, construction, energy, environmental, professional services and life sciences.  Headquartered in Stamford, Connecticut, Navigators has offices in the United States, the United Kingdom, Continental Europe and Asia.  For more information, please visit navg.com.

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.

Investors

Ciro M. DeFalco

Executive Vice President and Chief Financial Officer

cdefalco@navg.com

203-905-6343

 

Media

Courtney Oldrin

Head of Communications

coldrin@navg.com

203-905-6531

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