-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D2VnHS133/kWtXuD4x9p6OS2Mpq5Te54ShD8Bnw5zf1s2hV/SItjcHfp18iL/5wO jID+Bw0uY7iyDf6ibKTOzw== 0001157523-03-002026.txt : 20030516 0001157523-03-002026.hdr.sgml : 20030516 20030516131002 ACCESSION NUMBER: 0001157523-03-002026 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030516 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030516 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: 03707916 BUSINESS ADDRESS: STREET 1: ONE PENN PLAZA STREET 2: 55TH FL CITY: NEW YORK STATE: NY ZIP: 10119 BUSINESS PHONE: 2122442333 MAIL ADDRESS: STREET 1: ONE PENN PLAZA 55TH FL CITY: NEW YORK STATE: NY ZIP: 10119 8-K 1 a4395389.txt NAVIGATOR'S GROUP 8-K 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): May 12, 2003 THE NAVIGATORS GROUP, INC. (Exact Name of Registrant as Specified in its Charter) Delaware (State or Other Jurisdiction of Incorporation) 0-15886 13-3138397 (Commission File Number) (I.R.S. Employer Identification Number) One Penn Plaza New York, New York 10119 (Address of Principal Executive Offices) (Zip Code) (212) 244-2333 (Registrant's Telephone Number, Including Area Code) (Former Name or Former Address, if Changed Since Last Report) ITEM 9. Regulation FD Disclosure The following information is furnished pursuant to Item 9 "Regulation FD Disclosure" and Item 12 "Results of Operations and Financial Condition." This information 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 May 12, 2003, The Navigators Group, Inc. issued a press release announcing its earnings for the first quarter of 2003. This press release is attached hereto as Exhibit 99.1. SIGNATURE 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/ Bradley D. Wiley ----------------------------------------------- Name: Bradley D. Wiley Title: Senior Vice President, Chief Financial Officer and Secretary Dated: May 16, 2003 INDEX TO EXHIBITS Number Description 99.1 Press Release issued by The Navigators Group, Inc. on May 12, 2003. EX-99 3 a4395389_ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Navigators' Net Income up 40% NEW YORK--(BUSINESS WIRE)--May 12, 2003--The Navigators Group, Inc. (NAVG/NASDAQ) reported net income increased 40% for the first three months of 2003 to $4,834,000 or $0.55 per share, compared to $3,450,000 or $0.40 per share reported for the same period in 2002. The combined loss and expense ratio for the first three months of 2003 was 96.4%, compared to 97.0% for the same period in 2002. Total revenue increased 58% to $72,605,000 for the first quarter of 2003, compared to $45,809,000 for the same period during 2002. Gross written premium for the first quarter 2003 was $174,702,000, an increase of 43% from the first quarter of 2002. Net written premium increased to $91,033,000, up 29%. Net investment income for the first quarter of 2003 was $4,661,000, down from $4,942,000 in the first quarter of 2002. Net realized capital gains amounted to $218,000, or $0.02 per share, for the first quarter of 2003, compared to net realized capital losses of $293,000, or $0.02 per share for the same period in 2002. "Market conditions continue to be favorable, as we were able to achieve our targeted rate increases in virtually all of our specialty lines. Marine rates increased an average of 21% in the quarter," commented Terence N. Deeks, Chairman of Navigators. "Cash flow from underwriting remains robust; however, lower investment yields dampened our investment income. The good news is that the prevailing low interest rates should help maintain current underwriting conditions for the foreseeable future. Our underwriting results remain profitable and we continue to emphasize the importance of maintaining adequate loss reserves to fund the ultimate claims that will develop over time," Mr. Deeks added. The Navigators Group, Inc. is an international insurance holding company with insurance company operations, underwriting management companies, and operations at Lloyd's of London. Headquartered in New York City, Navigators has offices in major insurance centers in the United States and the United Kingdom. This press release may contain "forward looking statements" as defined in the Private Securities Litigation Act of 1995. We cannot assure that results which we anticipate will be achieved, since results may differ materially because of known and unknown risks and uncertainties which we face. Please refer to Navigators' most recent Form 10-K for a description of Navigators' business and the important factors which may affect that business. Navigators undertakes no obligation to publicly update or revise any forward looking statement. THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES Financial Highlights (In thousands, except book value and net income per share) (All figures are on a GAAP basis) Three Months Ended March 31, -------------------- (Unaudited) Financial Highlights 2003 2002 Change - -------------------- --------- --------- ------ Gross written premium $174,702 $121,916 43% Net written premium 91,033 70,349 29% Revenues: Net earned premium 66,314 39,849 66% Commission income 1,239 1,101 13% Net investment income 4,661 4,942 -6% Net realized capital gains (losses) 218 (293) NM Other income 173 210 -18% --------- --------- Total revenues 72,605 45,809 58% --------- --------- Operating expenses: Net losses and loss adjustment expenses incurred 44,040 23,783 85% Commission expense 10,627 7,658 39% Other operating expenses 11,587 9,887 17% Interest expense 97 160 -39% --------- --------- Total operating expenses 66,351 41,488 60% --------- --------- Income before income taxes 6,254 4,321 45% --------- --------- Income tax expense 1,420 871 63% --------- --------- Net income $4,834 $3,450 40% ========= ========= Per Share Data - -------------- Net income per common share: Basic $0.57 $0.41 39% Diluted $0.55 $0.40 38% Average common shares outstanding: Basic 8,494 8,436 Diluted 8,721 8,626 Underwriting Ratios - ------------------- Loss Ratio 67.0% 59.7% Expense Ratio 29.4% 37.3% --------- --------- Combined Ratio 96.4% 97.0% March 31, December 31, Balance Sheet Data 2003 2002 - ------------------ --------- --------- Stockholders' equity $176,793 $171,275 3% Book value per share 20.76 20.18 3% NM - not meaningful Note: Certain amounts for the prior period have been reclassified to conform to the presentation in the current period. CONTACT: The Navigators Group, Inc., New York Brad Wiley, 212/613-4251 -----END PRIVACY-ENHANCED MESSAGE-----