NAVG
$58.90
Navigators Grp
$.75
1.29%
Earnings Details
1st Quarter March 2018
Monday, May 07, 2018 5:00:00 PM
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Summary

Navigators Grp (NAVG) Recent Earnings

Navigators Grp (NAVG) reported 1st Quarter March 2018 earnings of $1.09 per share on revenue of $344.2 million. The consensus earnings estimate was $0.77 per share on revenue of $344.5 million. Revenue grew 11.5% on a year-over-year basis.

Navigators Group is an international insurance holding company focused on specialty products within the overall property/casualty insurance market.

Results
Reported Earnings
$1.09
Earnings Whisper
-
Consensus Estimate
$0.77
Reported Revenue
$344.2 Mil
Revenue Estimate
$344.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Navigators Reports First Quarter 2018 Earnings

STAMFORD, Conn., May 07, 2018 (GLOBE NEWSWIRE) -- The Navigators Group, Inc. (NASDAQ:NAVG) reported Net Income of $30.9 million, or $1.02 per diluted share, for the three months ended March 31, 2018 compared to $21.1 million, or $0.70 per diluted share, for the same period in 2017. Net Operating Earnings1 were $32.9 million, or $1.09 per diluted share, for the three months ended March 31, 2018 compared to $20.4 million, or $0.68 per diluted share, for the same period in 2017.

Gross Written Premiums and Net Written Premiums for the three months ended March 31, 2018 were $495.2 million and $393.3 million, respectively, increasing 10.0% and 16.6%, respectively, from the comparable period in 2017. The Combined Ratio for the three months ended March 31, 2018 was 94.0%, compared to 96.4% for the same period in 2017.

Net Investment Income for the three months ended March 31, 2018 was $23.7 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 2.7% for the three months ended March 31, 2018 and 2017.

Other Income (Loss) for the three months ended March 31, 2018 was $(0.1) million, compared to $1.1 million for the same period in 2017. Other Income (Loss) for the three months ended March 31, 2018 included revenue from the sale of renewal rights for the Company’s fixed-premium protection and indemnity (“P&I”) business, offset by net realized and unrealized foreign exchange losses. Other Income (Loss) for the same period in 2017 primarily consisted of net realized and unrealized foreign exchange gains.

Stan Galanski, President and Chief Executive Officer, commented, “We are very  pleased with our financial performance for the first quarter, reporting strong net income, a record level of operating earnings, double digit premium growth and underwriting profit in all three of our reporting segments. GlobalRe was a stand-out, achieving significant premium growth, driven by our Accident & Health and Latin American business, and a combined ratio of 86.6%. Importantly, our International Insurance reporting segment returned to profitability, reflecting the concerted effort to re-position our portfolio by exiting non-performing product lines and reducing our cost structure. Our U.S. Insurance reporting segment produced profitable results, consistent with our expectations, while achieving growth in our Marine and Professional Liability operating segments during the quarter.”

As disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, accounting guidance for financial instruments changed under the Financial Accounting Standards Board’s Accounting Standard Update 2016-01 (“ASU 2016-01"), which upon adoption as of January 1, 2018, required Equity Securities to be measured at Fair Value through Net Income. Prior to adoption, these securities were classified as Available-For-Sale with unrealized gains and losses excluded from Net Income and reported in Accumulated Other Comprehensive Income. The adoption of this guidance required a cumulative-effect adjustment as of the adoption date that moved the unrealized gains and losses, net of tax, from Accumulated Other Comprehensive Income to Retained Earnings. As a result of this guidance, for 2018 and forward, the Results of Operations will be impacted by the volatility in the performance of these Equity Securities. The unrealized gains and losses on Equity Securities will be excluded from Net Operating Earnings.

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 March 31, 2018. As of March 31, 2018, Net Unrealized Losses within the Available-For-Sale investment portfolio recognized in Accumulated Other Comprehensive Income were $(16.6) million, a decrease of $(58.0) million compared to December 31, 2017. Included in this decrease 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 $(2.0) million of Total Net Realized and Unrealized Losses within the Results of Operations for the three months ended March 31, 2018, compared to $(44) thousand of Total Net Realized and Unrealized Losses for the same period in 2017. The Net Realized and Unrealized Losses within the Results of Operations for the three months ended March 31, 2018 included $(3.2) million of net unrealized losses on Equity Securities.

The effective tax rate was 16.8% for the first quarter of 2018, which compares to 26.6% for the same period in 2017, primarily as a result of changes related to 2017 tax reform.

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

During the three months ended March 31, 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 Tuesday, May 8, 2018 starting at 8:30 a.m. (ET) to discuss the 2018 first 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/di3vjch8.

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.

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.

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

 

 
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
 
  Three Months Ended    
amounts in thousands, except per share amounts March 31,    
Results of Operations 2018  2017  Change 
            
Gross Written Premiums $495,224  $450,305  10.0%
Net Written Premiums  393,262   337,163  16.6%
            
Revenues:           
Net Earned Premiums $322,627  $286,131  12.8%
Net Investment Income  23,702   21,448  10.5%
Net Realized and Unrealized Gains (Losses):           
Total Other-Than-Temporary Impairment
  Losses
  (37)  (1,077) (96.5%)
Portion of Loss Recognized in Other
  Comprehensive Income (Before Tax)
  37   (16) NM 
Net Other-Than-Temporary Impairment Losses
  Recognized In Earnings
     (1,093) NM 
Net Realized Gains on Investments Sold  1,169   1,049  11.4%
Net Unrealized Losses on Equity Securities at Fair  Value  (3,181)    NM 
Total Net Realized and Unrealized Losses  (2,012)  (44) NM 
Other Income (Loss)  (117)  1,068  NM 
Total Revenues $344,200  $308,603  11.5%
            
Expenses:           
Net Losses and Loss Adjustment Expenses $186,145  $169,600  9.8%
Commission Expenses  54,152   47,844  13.2%
Other Operating Expenses  62,926   58,538  7.5%
Interest Expense  3,864   3,861  0.1%
Total Expenses $307,087  $279,843  9.7%
            
Income Before Income Taxes $37,113  $28,760  29.0%
            
Income Tax Expense  6,235   7,650  (18.5%)
            
Net Income $30,878  $21,110  46.3%
            
            
Per Share Data           
            
Net Income Per Common Share:           
Basic $1.04  $0.72  44.7%
Diluted $1.02  $0.70  45.6%
            
Average Common Shares Outstanding:           
Basic  29,595   29,283    
Diluted  30,137   30,000    
            
Underwriting Ratios           
Loss Ratio  57.7%  59.3%   
Expense Ratio  36.3%  37.1%   
Combined Ratio  94.0%  96.4%   
            
Balance Sheet Data March 31,  December 31,    
  2018  2017    
Stockholders' Equity $1,216,952  $1,225,965  (0.7%)
Book Value per Share $40.96  $41.55  (1.4%)

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 March 31, 2018  Three Months Ended March 31, 2017  % Change 
amounts in thousands, except per share amounts Pre-Tax  Tax (1)  After-Tax  Pre-Tax  Tax (1)  After-Tax  QTD 
Net Income $37,113  $(6,235) $30,878  $28,760  $(7,650) $21,110   46.3%
Adjustments to Net Income:                            
Total Net Realized and Unrealized Losses  2,012   (422)  1,590   44   (15)  29  NM 
FX Losses (Gains)  1,522   (320)  1,202   (1,123)  393   (730) NM 
Net Gain on Disposition of Product Line  (948)  199   (749)          NM 
Net Operating Earnings $39,699  $(6,778) $32,921  $27,681  $(7,272) $20,409   61.3%
                             
Average Common Shares Outstanding:                            
Basic          29,595           29,283     
Diluted          30,137           30,000     
                             
Net Operating Earnings  per Common Share:                            
Basic         $1.11          $0.70     
Diluted         $1.09          $0.68     

(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
         
  March 31,  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:  $2,987,492; 2017: $3,027,408) $2,970,934  $3,057,054 
Equity Securities, at fair value  (cost: 2018: $245,754; 2017: $224,159)  254,394   235,981 
Other Invested Assets  35,276   30,488 
Short-Term Investments, available-for-sale, at fair value (amortized cost: 2018: $6,707; 2017: $6,477)  6,704   6,480 
Total Investments $3,267,308  $3,330,003 
Cash and Cash Equivalents  165,177   102,735 
Restricted Cash and Cash Equivalents  58,956   56,229 
Premiums Receivable  413,253   351,393 
Prepaid Reinsurance Premiums  228,902   228,569 
Reinsurance Recoverable on Paid Losses  82,506   72,494 
Reinsurance Recoverable on Unpaid Losses and Loss Adjustment Expenses  790,388   809,765 
Deferred Policy Acquisition Costs  151,661   135,249 
Accrued Investment Income  20,738   19,480 
Goodwill and Other Intangible Assets  6,668   6,596 
Current Income Tax Receivable, Net  10,497   16,667 
Deferred Income Tax, Net  31,026   22,271 
Other Assets  81,686   73,171 
Total Assets $5,308,766  $5,224,622 
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Liabilities:        
Reserves for Losses and Loss Adjustment Expenses $2,521,827  $2,515,145 
Unearned Premiums  1,059,085   987,681 
Reinsurance Balances Payable  128,919   136,192 
Senior Notes  263,926   263,885 
Payable for Investments Purchased  23,776    
Accounts Payable and Other Liabilities  94,281   95,754 
Total Liabilities $4,091,814  $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 36,733 shares for 2018 and 36,530 shares for 2017)  3,670   3,650 
Additional Paid-In Capital  372,866   376,868 
Treasury Stock, at cost (7,023 shares for 2018 and 2017)  (155,801)  (155,801)
Retained Earnings  1,015,109   981,380 
Accumulated Other Comprehensive Income  (18,892)  19,868 
Total Stockholders' Equity $1,216,952  $1,225,965 
Total Liabilities and Stockholders' Equity $5,308,766  $5,224,622 
         

 

 
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
(Unaudited)
 
  Three Months Ended March 31, 2018 
  U.S.  Int'l             
amounts in thousands Insurance  Insurance  GlobalRe  Corporate (1)  Total 
Gross Written Premiums $239,928  $127,872  $127,424  $  $495,224 
Ceded Written Premiums  (66,581)  (28,888)  (6,493)     (101,962)
Net Written Premiums  173,347   98,984   120,931      393,262 
                     
Net Earned Premiums $172,913  $93,210  $56,504  $  $322,627 
Net Losses and LAE  (110,422)  (45,843)  (29,880)     (186,145)
Commission Expenses  (20,861)  (19,756)  (13,768)  233   (54,152)
Other Operating Expenses  (36,991)  (20,530)  (5,405)     (62,926)
Other Underwriting Income (Expense)  98      138   (233)  3 
                     
Underwriting Profit $4,737  $7,081  $7,589  $  $19,407 
                     
Net Investment Income              23,702   23,702 
Total Net Realized and Unrealized Losses              (2,012)  (2,012)
Interest Expense              (3,864)  (3,864)
Other Loss              (120)  (120)
Income Before Income Taxes $4,737  $7,081  $7,589  $17,706  $37,113 
Income Tax Expense              (6,235)  (6,235)
Net Income                 $30,878 
                     
Losses and LAE Ratio  63.9%  49.2%  52.9%      57.7%
Commission Expense Ratio  12.1%  21.2%  24.4%      16.8%
Other Operating Expense Ratio (2)  21.3%  22.0%  9.3%      19.5%
Combined Ratio  97.3%  92.4%  86.6%      94.0%

(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 March 31, 2017 
  U.S.  Int'l             
amounts in thousands Insurance  Insurance  GlobalRe  Corporate (1)  Total 
Gross Written Premiums $237,605  $141,860  $70,840  $  $450,305 
Ceded Written Premiums  (61,487)  (46,593)  (5,062)     (113,142)
Net Written Premiums  176,118   95,267   65,778      337,163 
                     
Net Earned Premiums $164,004  $84,086  $38,041  $  $286,131 
Net Losses and LAE  (98,826)  (50,705)  (20,069)     (169,600)
Commission Expenses  (20,384)  (19,233)  (8,492)  265   (47,844)
Other Operating Expenses  (33,472)  (19,793)  (5,273)     (58,538)
Other Underwriting Income (Expense)  110      176   (265)  21 
                     
Underwriting Profit (Loss) $11,432  $(5,645) $4,383  $  $10,170 
                     
Net Investment Income              21,448   21,448 
Total Net Realized and Unrealized Losses              (44)  (44)
Interest Expense              (3,861)  (3,861)
Other Income              1,047   1,047 
Income (Loss) Before Income Taxes $11,432  $(5,645) $4,383  $18,590  $28,760 
Income Tax Expense              (7,650)  (7,650)
Net Income                 $21,110 
                     
Losses and LAE Ratio  60.3%  60.3%  52.8%      59.3%
Commission Expense Ratio  12.4%  22.9%  22.3%      16.7%
Other Operating Expense Ratio (2)  20.3%  23.5%  13.4%      20.4%
Combined Ratio  93.0%  106.7%  88.5%      96.4%

(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 March 31, 2018  Three Months Ended March 31, 2017     
amounts in thousands Marine  P&C  Professional
Liability
  Total  Marine  P&C  Professional
Liability
  Total  %
Change
Total
 
Gross Written Premiums $41,724  $168,193  $30,011  $239,928  $40,950  $170,634  $26,021  $237,605   1.0%
Ceded Written Premiums  (17,480)  (44,912)  (4,189)  (66,581)  (17,520)  (38,198)  (5,769)  (61,487)  8.3%
Net Written Premiums  24,244   123,281   25,822   173,347   23,430   132,436   20,252   176,118   (1.6%)
                                     
Net Earned Premiums $21,092  $127,590  $24,231  $172,913  $22,694  $119,123  $22,187  $164,004   5.4%
Net Losses and LAE  (15,752)  (80,918)  (13,752)  (110,422)  (13,775)  (71,749)  (13,302)  (98,826)  11.7%
Commission Expenses  (1,408)  (15,167)  (4,286)  (20,861)  (1,472)  (15,366)  (3,546)  (20,384)  2.3%
Other Operating Expenses  (6,275)  (25,624)  (5,092)  (36,991)  (6,821)  (21,814)  (4,837)  (33,472)  10.5%
Other Underwriting Income  77   15   6   98   83   18   9   110   (10.9%)
                                     
Underwriting Profit (Loss) $(2,266) $5,896  $1,107  $4,737  $709  $10,212  $511  $11,432   (58.6%)
                                     
Losses and LAE Ratio  74.7%  63.4%  56.8%  63.9%  60.7%  60.2%  60.0%  60.3%    
Commission Expense Ratio  6.7%  11.9%  17.7%  12.1%  6.5%  12.9%  16.0%  12.4%    
Other Operating Expense Ratio (1)  29.3%  20.1%  20.9%  21.3%  29.7%  18.3%  21.7%  20.3%    
Combined Ratio  110.7%  95.4%  95.4%  97.3%  96.9%  91.4%  97.7%  93.0%    

(1) - Includes Other Operating Expenses and Other Underwriting Income.
NM – Percentage change not meaningful

 

 
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Reportable Segment Results
(Unaudited)
 
    
  Int'l Insurance 
  Three Months Ended March 31, 2018  Three Months Ended March 31, 2017     
                          % 
        Professional           Professional     Change 
amounts in thousands Marine  P&C  Liability  Total  Marine  P&C  Liability  Total  Total 
Gross Written Premiums $56,478  $33,960  $37,434  $127,872  $68,833  $40,368  $32,659  $141,860   (9.9%)
Ceded Written Premiums  (8,054)  (13,667)  (7,167)  (28,888)  (10,926)  (29,646)  (6,021)  (46,593)  (38.0%)
Net Written Premiums  48,424   20,293   30,267   98,984   57,907   10,722   26,638   95,267   3.9%
                                     
Net Earned Premiums $39,279  $21,769  $32,162  $93,210  $37,495  $22,180  $24,411  $84,086   10.9%
Net Losses and LAE  (20,446)  (9,223)  (16,174)  (45,843)  (20,601)  (15,869)  (14,235)  (50,705)  (9.6%)
Commission Expenses  (9,730)  (2,565)  (7,461)  (19,756)  (9,541)  (3,742)  (5,950)  (19,233)  2.7%
Other Operating Expenses  (6,810)  (7,679)  (6,041)  (20,530)  (8,440)  (6,423)  (4,930)  (19,793)  3.7%
                                     
Underwriting Profit (Loss) $2,293  $2,302  $2,486  $7,081  $(1,087) $(3,854) $(704) $(5,645) NM 
                                     
Losses and LAE Ratio  52.1%  42.4%  50.3%  49.2%  54.9%  71.5%  58.3%  60.3%    
Commission Expense Ratio  24.8%  11.8%  23.2%  21.2%  25.4%  16.9%  24.4%  22.9%    
Other Operating Expense Ratio  17.3%  35.2%  18.8%  22.0%  22.6%  29.0%  20.2%  23.5%    
Combined Ratio  94.2%  89.4%  92.3%  92.4%  102.9%  117.4%  102.9%  106.7%    

NM – Percentage change not meaningful

 

 
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Incurred Loss Activity
(Unaudited)
 
  For the Three Months Ended March 31, 
amounts in thousands Amounts  Loss Ratio 
Net Incurred Loss Activity 2018  2017  2018  2017 
U.S. Insurance:                
Loss and LAE Payments $87,551  $69,771   50.7%  42.5%
Change in Reserves  22,871   29,055   13.2%  17.8%
Net Incurred Loss and LAE $110,422  $98,826   63.9%  60.3%
                 
Int'l Insurance:                
Loss and LAE Payments $48,243  $44,908   51.8%  53.4%
Change in Reserves  (2,400)  5,797   (2.6%)  6.9%
Net Incurred Loss and LAE $45,843  $50,705   49.2%  60.3%
                 
GlobalRe:                
Loss and LAE Payments $29,273  $28,330   51.8%  74.5%
Change in Reserves  607   (8,261)  1.1%  (21.7%)
Net Incurred Loss and LAE $29,880  $20,069   52.9%  52.8%
                 
Total                
Loss and LAE Payments $165,066  $143,009   51.2%  50.0%
Change in Reserves  21,078   26,591   6.5%  9.3%
Net Incurred Loss and LAE $186,145  $169,600   57.7%  59.3%
                 
                 
  For the Three Months Ended March 31, 
Impact of Prior Years Reserves Amounts  Loss Ratio Impact 
Favorable / (Unfavorable) Development 2018  2017  2018  2017 
U.S. Insurance $(4,813) $472   (1.5%)  0.2%
Int'l Insurance  2,483   (6,616)  0.8%  (2.4%)
GlobalRe  364   (941)  0.1%  (0.3%)
Total $(1,966) $(7,085)  (0.6%)  (2.5%)
                 

 

 
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Loss Data
(Unaudited)
 
  As of March 31, 2018 
amounts in thousands Case  IBNR     
Net Loss Reserves: Reserves  Reserves  Total 
U.S. Insurance:            
Marine $55,621  $51,317  $106,938 
P&C  190,414   716,879   907,293 
Professional Liability  30,736   87,492   118,228 
Total U.S. Insurance $276,771  $855,688  $1,132,459 
Int'l Insurance:            
Marine $179,931  $35,943  $215,874 
P&C  61,417   35,678   97,095 
Professional Liability  37,884   94,682   132,566 
Total Int'l Insurance $279,232  $166,303  $445,535 
             
GlobalRe $62,695  $90,750  $153,445 
             
Total Net Loss Reserves $618,698  $1,112,741  $1,731,439 
             
             
  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 March 31, 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 March 31, 2018:

    
  As of March 31, 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 $357,303  $1,192  $(4,082) $360,193 
States, Municipalities and Political Subdivisions  721,232   11,912   (4,554)  713,874 
Mortgage-Backed and Asset-Backed Securities:                
Agency Mortgage-Backed Securities  379,354   1,389   (13,466)  391,431 
Residential Mortgage Obligations  63,430   499   (266)  63,197 
Asset-Backed Securities  369,337   1,361   (1,701)  369,677 
Commercial Mortgage-Backed Securities  161,391   1,088   (2,051)  162,354 
   Subtotal $973,512  $4,337  $(17,484) $986,659 
Corporate Exposures (1)  918,887   6,140   (14,019)  926,766 
Total Fixed Maturities $2,970,934  $23,581  $(40,139) $2,987,492 
Short-Term Investments  6,704      (3)  6,707 
Total Available-For-Sale Investments $2,977,638  $23,581  $(40,142) $2,994,199 

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

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Source: The Navigators Group, Inc.