Keefe, Bruyette & Woods Insurance Conference New York, NY September 7, 2010

Keefe, Bruyette & Woods Insurance ConferenceNew York, NYSeptember 7, 2010

The Navigators Group, Inc.“Insuring a World in Motion”

Stan GalanskiPresident and CEO

Frank McDonnellSenior Vice President & CFO

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This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of

historical fact included in this presentation are forward-looking statements. Forward-looking statements give our current expectations and

projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-

looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as

"anticipate," "estimate," "expect," "project," "plan,“ "intend," "believe" and other words and terms of similar meaning in connection with any

discussion of the timing or nature of future operating or financial performance or other events. These forward-looking statements are based on

assumptions that we have made in light of our industry experience and on our perceptions of historical trends, current conditions, expected

future developments and other factors we believe are appropriate under the circumstances. As you consider this presentation, you should

understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond our

control) and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be

aware that many factors could affect our actual financial results and cause them to differ materially from those anticipated in the forward-looking

statements.

Because of these factors, we caution that you should not place undue reliance on any of our forward-looking statements. Further, any forward-

looking statement speaks only as of the date on which it is made. New risks and uncertainties arise from time to time, and it is impossible for us

to predict those events or how they may affect us. Except as required by law, we have no duty to, and do not intend to, update or revise the

forward-looking statements in this presentation after the date of this presentation.

Forward Looking Statements

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The Navigators Group, Inc.

EXCHANGE/TICKER

MARKET CAP (8/27/10)

SHARE PRICE (8/27/10)

BOOK VALUE/SHARE (6/30/10)

FINANCIAL STRENGTH

WEBSITE

NASDAQ/NAVG

$672 MILLION

$42.49

$51.48

A (A.M. BEST/S&P)

WWW.NAVG.COM

http://www.navg.com/

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Specialty insurer operating in targeted property/casualty niches worldwide

Two U.S. domiciled insurance companies and Navigators Syndicate 1221 at Lloyd’s

Rated “A” by Standard & Poor’s and A.M. Best Top 5 U.S. Marine insurer Top 25 U.S. Excess & Surplus Lines casualty insurer Emerging leader in D&O / Professional Liability #15 New York’s fastest-growing companies, 2009 Crain’s

New York Business #137 New York’s largest publicly held companies, 2010,

Crain’s New York Business Recognized as one of “100 Most Trustworthy Company”

by Forbes.com


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Underwriting Profit, not premium volume.

Specialization in complex risks where the know-how of our

Intellectual Capital is a competitive advantage.

Commitment to Customer Service backed by a Strong Balance Sheet.

Discipline to walk away from business that doesn’t meet our terms and standards.

Expense Control by spending money like it is our own.

Teamwork gets the job done.

We conduct our business with Integrity, Professionalism and Pride.

Core Values

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2001 2002 2003 2004 2005 2006 2007 2008 200985

90

95

100

105

110

115

IndustryNavigators

Com

bine

d R

atio

Track Record of Underwriting Excellence

2001– D&O– Chicago Marine

2004– Excess Casualty– Antwerp Branch

2005– Acquired 100% Control of Lloyd’s Syndicate 1221

2006– Primary Casualty – Inland Marine

2007– Orange County Office– Miami Office (Latin America)

2008– New Jersey Office– Stockholm Office– Brazilian License– Environmental Underwriting Team– Professional Liability Expansion

2009– UK D&O Expansion– Architect & Engineering Team– Philadelphia Office– Pittsburgh Office– Charlotte Office– Copenhagen Office

2010– Los Angeles Office

Gross Written Premium

$0

$200

$400

$600

$800

$1,000

$1,200

2001 2009

Insurance Companies Marine Insurance Companies Property Casualty

Insurance Companies Professional Liability Lloyd's Marine

Lloyd's Property Casualty Lloyd's Professional liability

Successful Growth and Diversification Strategy

$1,044.9

18%

4%

7%

23%

34%

13%

$278.2

21

%

38%

39%

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Marine $434 Million

Property & Casu-

alty$430 Mil-

lion

Man-agement & Pro-

fessional Liability

$181 Mil-lion

41.2%

Core Businesses

$1.045 Billion Gross Written Premium

Full Year 2009

41.5%

17.3%

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Gross Written Premium $433 million

41% of 2009 Group TotalMarket Leaders In: Marine Liability Bluewater Hull Specie / Cash In Transit

Policyholders Include: Terminal Operators Port Authorities Ship Owners Logistics Providers Importers / Exporters Armed Car Services

A Market Leader In Marine

Marine Liability;

45%

Inland Marine;

9%Bluewater Hull; 9%

Trans-port; 5%

Cargo; 19%

Specie; 6%

All Other;

7%

(Green = Higher Growth Potential)

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Nav Tech: Property Insurance for Energy and Power

Generation Risks

Excess Casualty: Monoline Commercial Umbrella &

Commercial Excess Liability

Western States Construction: A Market Leader in California

Construction Liability Since 1995

E&S Primary Casualty: Construction East of the Rockies, Product

Liability, Real Estate and Environmental Casualty

NAV PAC: Admitted Niche Property/Casualty Products for Middle

Market Businesses


Specialty Property & Casualty Focus

NavPac, 8%

Western States Con-struc-tion; 21%

E&S Primary Casualty; 9%

Excess Casu-alty; 19% Nav

Tech; 27%

All Other; 16%


41% of 2009 Group Total


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Specializing In:

US D&O

• Primary and Excess on

• Small to Mid Cap Public Companies

• Private Companies

• Not for Profit Organization

International D&O

• Excess D&O on Large Cap

• Primary D&O on SME

• First Lloyd’s Syndicate with an Underwriter in China

E&O

• Lawyers

• Architects & Engineers

• Miscellaneous Professional


Management & Professional Liability Niche Focus

U.S. D&O; 55%

U.S. E&O; 21%

Inter-na-

tional D&O (L-loyd's);

15%

Inter-na-

tional E&O (L-loyd's);

9%


17% of 2009 Group Total


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Taking Our Products to New Geographic Markets in The U.S.

Navigators U.S. Footprint - 2001

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Navigators U. S. Footprint - 2010

Expanding Our International Presence 2001

14

Expanding Our International Presence 2010

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Emphasize Profit Not Premium

Identify Growth Opportunities in High Margin/Low Market Share Products– NavTech– Excess Casualty– International D&O– Professional Liability

Expansion of Distribution System/Regional Office Network

Improve Productivity / Service Efficiency– “Navigate” Proprietary Policy Administration Systems

Preserve & Grow our Intellectual Capital

Responsible Capital Management– Share Re-Purchase– Conservative Investment Strategy– Enterprise Risk Management


Strategies For A Softening Market

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Stockholders’ Equity

($ in millions)


12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/20090.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

106.5%98.6%

94.9% 92.2% 90.8%87.8% 87.5% 89.5%

97.2%

11.7%10.5% 4.3%

$147 $171

$291$329

$470$551

$662 $689

$802

- A&E Charge- Hurricanes

106.6%101.3%

93.8% - Hurricanes

Combined Ratio Stockholders’ Equity

Strong Book Value Growth

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Invested assets: $2.1 billion

Fixed Maturities, Cash and Short-term Investments:

― 97% of portfolio

― Average AA rating

― Duration of approximately 4.2 years

― Average 2009 investment yield of 3.8%

Equity securities: 3% of portfolio

Substantially all mortgage and asset- backed securities are investment grade

No CDO’s, CLO’s or asset-backed commercial paper

Underlying credit rating of A+ for credit enhanced securities


High Quality Investment Portfolio

2%12%

3%

8%

23%

32%

5%

1%

14%

CMO's

Corporate Bonds

Equities

Cash & Short-Term Securities

U.S. Treasury Bonds, GNMA's & Foreign Govt.

Municipal Bonds

Commercial Mortgages

Asset- Backed

Mortgage- Backed

At December 31, 2009

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Series1

US Government and GNMAs States, municipalities & political subdivisions Mortage and asset backed

Corporate bonds Equity securities Cash and short-term investments


2001 2002 2003 2004 2005 2006 2007 2008 2009

6/30/10

$1,918

$1,767

$1,476

$1,282

$855

$694

$453

$278

$2,057

Strong Growth in Invested Assets($ in millions)

$2,110

($ in millions)

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Series1

Net IBNR Reserves Net Case Loss Reserves

12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09

Historical Consolidated

Net Loss Reserves

54%

46%

51%

49%

41%

59%

41%

59%

39%

61%

35%

65%

34%

66%

37%

63%

39%

61%

$696

$579

$847

$464

$374

$265

$203

$1,000

$1,113


Prudent & Consistent Loss Reserving

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Mitigate

Risks

• Diversification of reinsurers

• High credit quality

• Strong collateral position

• Reserve for Uncollectible Reinsurance

• Integration of reinsurance risk into ERM practices

• Utilize reinsurance to reduce exposure to individual risks & catastrophic losses

• Stabilize underwriting & loss ratios

• Ratio of NWP to GWP for 2009 was 67.1%Philosophy


Reinsurance - Integral Part of Our Business

Reinsurer Financial Strength Ratings

CollateralReinsurer Total Held

Swiss Reinsurance America Corporation 106.8$ 9.2$ AMunich Reinsurance America Inc. 86.4 16.2 A+Transatlantic Reinsurance Company 71.0 9.5 AWhite Mountains Reinsurance of America 69.8 2.3 A-Everest Reinsurance Company 69.3 8.5 A+General Reinsurance Corporation 59.8 1.7 A++Munchener Ruckversicherungs-Gesellschaft 41.9 10.2 A+National Indemnity Company 37.3 3.1 A++Platinum Underwriters Re 31.0 2.6 ABerkley Insurance Company 29.2 1.5 A+Scor Holding (Switzerland) AG 25.1 5.9 A-Swiss Re International SE 23.5 6.2 APartner Reinsurance Europe 23.2 8.7 AA-Lloyd's Syndicate #2003 21.5 3.4 APartner Reinsurance Company of the U.S. 20.6 0.1 A+Arch Reinsurance Company 16.6 0.1 AHannover Ruckversicherung 16.3 2.4 AAce Property and Casualty Insurance Company 15.8 1.6 A+Allianz Global Corporate & Specialty AG 14.6 4.2 A+Federal Insurance Co. 11.3 1.0 A++Top 20 Total…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. 791.0 98.4 All Other…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. 255.2 80.9 Total…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. 1,046.2$ 179.3$

Rating

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Total Recoverables $1,046

Total Offsets/Funds Held (179)

Net Recoverables $867

(A.M. Best or equivalent ratings - December 31, 2009) ($ in millions)

59%

39%

2%

Excellent A, A-

Superior A++, A+

Other

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Construction LiabilityUltimate Premium Ultimate Loss Ratio

-

20,000

40,000

60,000

80,000

100,000

120,000

0%

10%

20%

30%

40%

50%

60%

70%

2001 2002 2003 2004 2005 2006 2007 2008 2009

($ in thousands)

$

Managing the Cycle

Specialty underwriter with proven track record of profitable growth

Strong balance sheet

High quality, liquid and conservative investment portfolio

Experienced at insurance cycle management

Experienced at capital management

Focused on growing book value per share

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Summary

Documents

Keefe, Bruyette & Woods Insurance Conference New York, NY September 7, 2010