Sidoti & Company, LLC Investor ForumNew York, NYMarch 22, 2011

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

Specialty insurer operating in targeted property/casualty niches– Top 5 U.S. Marine insurer– Top 25 U.S. Excess & Surplus Lines casualty insurer – Emerging leader in D&O / Professional Liability

A global specialty insurance platform– Two U.S. domiciled insurance companies with licenses in the

U.K. and South America – Navigators Syndicate 1221 at Lloyd’s provides global access

to desired markets– 40% of Navigators premiums are produced outside the U.S.

A growing brand and market reputation– #66 New York’s fastest-growing companies, 2010 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 Companies” by

Forbes.com Financial Strength rated “A” by Standard & Poor’s and A.M. Best

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The Navigators Group, Inc.

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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 20090%

20%

40%

60%

80%

100%

120%

P&C IndustryNavigators

Calendar Year

Com

bine

d R

atio

Track Record of Underwriting Excellence

2001– D&O– Chicago Marine

2004– Excess Casualty– Antwerp Office

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– Lloyd’s China

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

2010– Los Angeles Office– Lloyd’s Brazil– Navigators Re

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Gross Written Premium

($ in millions)

$0

$200

$400

$600

$800

$1,000

$1,200

2001 2005 2010

Insurance Companies Marine Insurance Companies Property Casualty

Insurance Companies Professional Liability Lloyd's Marine

Lloyd's Property Casualty Lloyd's Professional liability

$987.2

19%

4%10%

23%

32%

13%

$278.2

21%

38%

39%

$779.64%

27%

11%

27%

30%

A Decade of Successful Growth and Diversification

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Marine $406 Million

Specialty Property & Casu-

alty$407 Mil-

lion

Man-agement & Pro-

fessional Liability

$174 Mil-lion

41.3%

Specialty Focus

$987 Billion Gross Written PremiumFull Year 2010

41.1%

17.6%

Market Leaders In:

– Marine Liability

– Bluewater Hull

– Specie / Cash In Transit

– Transport

Policyholders Include:

– Terminal Operators

– Port Authorities

– Cruise Ships

– Ship Owners

– Logistics Providers

– Importers / Exporters

– Armored Car Services

– Museums

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Gross Written Premium $406 million

41% of 2010 Group Total

A Market Leader In Marine

Marine Liability;

42%

Cargo; 20%

Transport; 4%Inland Marine;

7%

Bluewater Hull; 9%

Specie; 5%

All Other; 13%

(Green = Higher Growth Potential)

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Focus on Select Specialty Property & Casualty Niches

NavPac, 10%

Western States

Construc-tion; 17%

E&S Primary Cas-ualty; 10%

Excess Casualty;

24%

Nav Tech; 34%

All Other, 5%

Gross Written Premium $407 million

41% of 2010 Group Total

(Green = Higher Growth Potential)

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

Life Sciences: Product Liability and Clinical Trials Coverage

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Management & Professional Liability Niche Focus

U.S. D&O; 42%

U.S. E&O; 32%

Interna-tional

D&O (L-loyd's);

18%

Interna-tional

E&O (L-loyd's);

8%

Gross Written Premium $174 million

18% of 2010 Group Total

(Green = Higher Growth Potential)

Specializing In:

US D&O

Primary and Excess on

– Small to Mid Cap Public Companies

– Private Companies

– Not for Profit Organization

International D&O

High Excess D&O on Large Cap Primary D&O on Small to Mid Cap Underwriters in London, Stockholm, Copenhagen and Shanghai

E&O

Lawyers Architects & Engineers Insurance Agents Miscellaneous Professional

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Navigators U.S. Footprint – 2001

$278 Million Gross Written Premium

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

Number of Products

One – Black

Two – Blue

Multiple - Red

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Navigators U.S. Footprint – 2010

$1 Billion Gross Written Premium

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

Number of Products

One – Black

Two – Blue

Multiple - Red

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Project: 42 story, 116 unit residential condominium in Dallas, Texas Duration: 3 years Number of contractors: 40 Solution: One shared liability program with primary limits of $2 million NAVG advantages:

– Contract review– Proprietary terms and conditions– Construction claims expertise

Specialty Expertise

Construction Wrap-up

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Emphasize Profit Not Premium– Reduce premium when profit margins are not apparent– Reward underwriters for profit, not premiums– Diligent commission negotiations and expense management

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

Expansion of Distribution System/Regional Office Network Improve Productivity / Service Efficiency

– “Navigate” Proprietary Policy Administration Systems– Expansion of remote service centers

Preserve & Grow our Intellectual Capital Responsible Capital Management

– Share re-purchase– Conservative investment strategy– Enterprise risk management

Strategies For A Softening Market

Global Leadership Team

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Age

Years in P&C

IndustryYears at

NAVGThe Navigators Group, Inc.Stan Galanski, President and Chief Executive Officer 52 31 10Frank McDonnell, SVP and Chief Financial Officer 54 28 2Clay Bassett, SVP, CUO, Chief Risk Officer and President of Navigators Re. 45 23 2Bruce Byrnes, SVP, General Counsel and Chief Compliance Officer 43 18 1Scott Eisdorfer, SVP and Chief Administrative Officer 47 25 11Denise Lowsley, SVP, Human Resources 40 14 2Navigators Management Company, Inc.Chris Duca, President and Chief Executive Officer 45 18 9Mike Civisca, EVP and Chief Operating Officer 48 27 23LoriAnn Lowery-Biggers, SVP and President of Field Operations 44 22 1Navigators Holdings (UK)Paul Hennessy, President 62 39 2Stephen Coward, President, Navigators Technical Risk 57 40 9Richard Bardwell, Active Underwriter, Navigators Underwriting Agency Ltd. 53 35 31

Averages 49 27 9

Financial Overview

The Navigators Group, Inc.

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The Navigators Group, Inc.

EXCHANGE/TICKER

MARKET CAP (3/16/11)

SHARE PRICE (3/16/11)

BOOK VALUE/SHARE (12/31/10)

FINANCIAL STRENGTH

WEBSITE

NASDAQ/NAVG

$766 MILLION

$49.29

$52.68

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

WWW.NAVG.COM

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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 12/31/2009 12/31/20100.0%

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% 97.8%

11.7%10.5% 4.3%

0.029

$147 $171$291

$329

$470$551

$662 $689 $802 $829

- A&E Charge- Hurricanes

106.6%101.3%

93.8% - Hurricanes

Combined Ratio Stockholders’ Equity

Strong Book Value Growth

- Deep Water

Horizon

100.7%

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Invested assets: $2.2 billion

Fixed Maturities, Cash and Short-term Investments:

― 96% of portfolio

― Average AA rating

― Duration of approximately 4.3 years

― Average 2010 investment yield of 3.5%

Equity securities: 4% 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

1%

24%

4%

9%

15%

18%

9%

2%

18%

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, 2010

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Series1

US Government and GNMAs States, municipalities & political subdivisions Mortgage and asset backed Corporate bonds

Equity securities Cash and short-term investments

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$1,918

$1,767

$1,476

$1,182

$855

$694

$453

$278

$2,057

Strong Growth in Invested Assets

$2,154

Invested Assets

($ in millions)

($ 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 12/31/10

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

40%

60%

$1,143

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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 results

Ratio of NWP to GWP for 2010 was 66.2%Philosophy

Reinsurance - Integral Part of Our Business

Reinsurer Financial Strength Ratings

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Total Recoverables $1,057

Total Offsets/Funds Held (179)

Net Recoverables $878

(A.M. Best or equivalent ratings - December 31, 2010) ($ in millions)

55%

42%

3%

Excellent A, A-

Superior A++, A+

Other

Collateral Reinsurer Total Held Ratings

Swiss Reinsurance America Corporation 106.7 9.0 AMunich Reinsurance America Inc. 97.2 4.5 A+Everest Reinsurance Company 86.5 9.0 A+Transatlantic Reinsurance Company 83.9 8.7 ANational Indemnity Company 39.4 3.5 A++Scor Holding (Switzerland) AG 38.5 11.5 AGeneral Reinsurance Corporation 36.4 1.3 A++White Mountains Reinsurance of America 36.3 0.2 A-Partner Reinsurance Europe 35.1 16.8 AA-Munchener Ruckversicherungs-Gesellschaft 33.8 7.7 A+Berkley Insurance Company 32.6 0.2 A+Platinum Underwriters Re 28.8 2.5 ALloyd's Syndicate #2003 26.7 4.2 AAce Property and Casualty Insurance Company 24.7 2.5 A+Allied World Reinsurance 20.2 2.8 ASwiss Re International SE 16.3 5.7 AAXIS Re Europe 15.1 4.0 AAxa Corporate Solutions 14.4 0.7 AA-Hannover Ruckversicherung 14.1 2.8 AValidus Reinsurance Ltd. 13.7 5.6 A-Top 20 Total…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….$800.4 $103.1All Other………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………256.4 76.1 Total………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….$1,056.8 $179.1

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West Coast 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 2010

($ in thousands)

$

Managing the Cycle – Underwriting Discipline

Managing the Cycle – Aggregate Management

Offshore Energy Gulf of Mexico Wind Aggregate Exposure

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($ in millions)

IKE Sep-08Jan-09

Apr-09May-09

Jun-09Jul-09

Aug-09Sep-09

Oct-09Nov-09

Dec-09Jan-10

Feb-10Mar-10

Apr-10Nov-10

$-

$50

$100

$150

$200

$250

$300

2010200920082007

Sum

of G

oM W

inds

torm

Lim

its

Managing the Cycle – Capital Management

Maintain financial strength ratings Grow book value per share

– Conservative & proactive investment management

– Accretive debt repurchase - $3 million gain

– Accretive share repurchases

• 2008 - $11.5 million

• 2009 - $ 6.8 million

• 2010 - $ 52.0 million

• Average cost per share through 12/31/2010 - $43.10

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2010 Financial Highlights

The Navigators Group, Inc.

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The Navigators Group, Inc. and Subsidiaries 2010 Financial Highlights ($ in thousands, except per share data, unaudited)

Results of Operations 2010 2009 Change 2010 2009 ChangeGross written premiums 229,850$ 251,739$ -9% 987,201$ 1,044,918$ -6%Net written premiums 141,809 161,595 -12% 653,938 701,255 -7%

Operating revenues 186,361 196,259 -5% 736,736 765,540 -4%Expenses 180,921 190,905 -5% 678,146 676,032 0%Pre-tax operating income 5,440 5,354 2% 58,590 89,508 -35%

Realized investment gain (loss) 19,490 1,315 1382% 40,239 (2,660) -1613%

Income tax expense 7,592 594 1178% 29,251 23,690 23%

Net income 17,338$ 6,075$ 185% 69,578$ 63,158$ 10%

Net income per common share: Basic 1.10$ 0.36$ 206% 4.33$ 3.73$ 16%Diluted 1.07$ 0.35$ 207% 4.24$ 3.65$ 16%

Underwriting Ratios Loss Ratio 66.2% 71.9% 63.8% 63.8%Expense Ratio 40.1% 34.6% 36.9% 33.4%Combined Ratio 106.3% 106.5% 100.7% 97.2%

Balance Sheet Data Dec. 31, Sept. 30, Dec. 31, Dec. 31,2010 2010 2010 2009

Stockholders' equity 829,354$ 854,013$ -3% 829,354$ 801,519$ 3%Book value per share 52.68$ 54.17$ -3% 52.68$ 47.58$ 11%

Three Months EndedDecember 31,

Twelve Months EndedDecember 31,

The Navigators Group, Inc.

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Peer Companies Price 1 Year 5 Year 10 year 1 Year 5 Year 10 YearNAVG 50.35$ 5.0% 14.5% 283.6% 4 3 1WRB 27.38$ 12.9% -12.0% 223.0% 1 5 2RLI 52.57$ 12.7% 27.2% 216.5% 2 1 3MKL 378.13$ 11.9% 18.4% 116.7% 3 2 4HCC 28.94$ 4.8% 6.2% 89.5% 5 4 5

SNL Ins. Underwriters 17.6% -20.9% 13.0%

Source: SNL.com

Total Shareholder Return Through 12/31/2010Peer Ranking

Specialty underwriter with proven track record of profitable growth

Track record of attracting/retaining strong underwriting expertise

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