8-K

UNITED STATESSECURITIES 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 reported event): February 13, 2008

The Navigators Group, Inc.
(Exact name of registrant as specified in its charter)

DELAWARE	0-15886	13-3138397
(State of organization)	(Commission File Number)	(IRS Employer Identification No.)

One Penn Plaza, New York, NY	10119
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (914) 934-8999

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 (SEE General Instruction A.2. below):

⃞ 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))

Item 2.02     Results of Operations and Financial Condition.Item 7.01     Regulation FD Disclosure.

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 the Exhibit 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 February 13, 2008, The Navigators Group, Inc. (the "Company") issued a press release announcing its earnings for the fourth quarter of 2007. This press release is attached hereto as Exhibit 99.1.

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.
		(Registrant)
		By:	/s/ Elliot S. Orol
			Name:	Elliot S. Orol
			Title:	Senior Vice President, General Counsel
				and Secretary
Date:	February 13, 2008

INDEX TO EXHIBITS

Number	Description
99.1	Fourth Quarter Earnings Release dated February 13, 2008.

EX-99.1

Exhibit 99.1

Navigators Reports Record Earnings

NEW YORK--(BUSINESS WIRE)--The Navigators Group, Inc. (NASDAQ:NAVG) reported net income of $26,540,000 or $1.55 per share for the 2007 fourth quarter compared to net income of $20,607,000 or $1.22 per share for the 2006 fourth quarter. The 2007 fourth quarter results include a net realized capital gain of $0.04 per share and the 2006 fourth quarter results include a net realized capital loss of $0.01 per share.

Net income for the year ended December 31, 2007 was $95,620,000 or $5.62 per share, compared to $72,563,000 or $4.30 per share for the year ended December 31, 2006. The 2007 year results include a net realized capital gain of $0.08 per share and the 2006 year results include a net realized capital loss of $0.04 per share.

Gross written premium for the 2007 fourth quarter and year was $247,336,000 and $1,070,707,000, respectively, increases of 6% and 10% from the comparable 2006 year periods.

Net written premium for the 2007 fourth quarter and year was $152,325,000 and $645,796,000, respectively, increases of 18% and 24% from the comparable 2006 year periods.

The combined loss and expense ratios for the 2007 fourth quarter and year were 87.7% and 87.5%, respectively, compared to 87.7% and 87.8% for the comparable 2006 year periods. Net paid loss ratios for the 2007 fourth quarter and year were 32.5% and 31.5%, respectively, compared to 28.0% and 32.7% for the comparable 2006 year periods. The combined loss and expense ratios for the 2007 fourth quarter and year were favorably impacted by 10.8 loss ratio points and 7.8 loss ratio points, respectively, reflecting redundancies in prior period loss reserves.

Net investment income for the 2007 fourth quarter and year was $19,186,000 and $70,662,000, respectively, increases of 23% and 24% from the comparable 2006 year periods. The pre-tax investment yields for the 2007 and 2006 fourth quarters and years were all 4.4%.

Navigators’ Chief Executive Officer Stan Galanski commented, “Our strong underwriting results continue to benefit from favorable loss emergence patterns across all business units. Our underwriters understand that our top priority is always underwriting profit, not premium growth, and how important it is to maintain disciplined underwriting as market conditions soften. We also continue to benefit from the diversification strategy implemented over the last six years, which has increased the number of products we offer and expanded both our distribution network and our geographic presence. At a time of great turbulence within the financial services sector, our prudent investment approach has served us well. We are confident in both the adequacy of our net loss reserves and the overall quality of our balance sheet.”

Consolidated cash flow from operations for the 2007 fourth quarter and year was $53,307,000 and $284,643,000, respectively, compared to $57,932,000 and $146,030,000 for the comparable 2006 periods.

Stockholders’ equity increased 20% to $662,106,000 or $39.24 per share at December 31, 2007 compared to $551,343,000 or $32.94 per share at December 31, 2006. Statutory surplus of Navigators Insurance Company was $578,668,000 at December 31, 2007.

The Company will hold a conference call on Thursday, February 14, 2008 starting at 8:30 a.m. ET to discuss the 2007 fourth quarter’s results. The call will be available via live webcast on Navigators’ website (www.navg.com) by clicking on the February 14^th Live Audio Webcast link.

To participate by telephone, the domestic dial-in number is 888-679-8033 and the international dial-in is 617-213-4846. The access code is 46653382. Participants may pre-register for the call at www.theconferencingservice.com/prereg/key.process?key=PNDFT349L. Pre-registrants will be issued a pin number to use when dialing into the live call that will provide quick access by bypassing the operator upon connection.

The webcast will be available for replay on the "News & Events" page of Navigators' website.

The Navigators Group, Inc. is an international specialty 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, the United Kingdom and Continental Europe.

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. We cannot assure that anticipated results will be achieved, since actual results may differ materially because of known and unknown risks and uncertainties which we face. Please refer to Navigators’ most recent 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 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
($'s in thousands, except per share data)
		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
Financial Highlights		2007			2006			Change		2007			2006			Change
Gross written premium		$	247,336		$	232,974		6	%	$	1,070,707		$	970,790		10	%
Net written premium			152,325			129,096		18	%		645,796			520,807		24	%
Revenues:
	Net earned premium		161,276			134,364		20	%		601,977			468,323		29	%
	Commission income		725			610		19	%		1,736			3,075		-44	%
	Investment Income		19,186			15,651		23	%		70,662			56,895		24	%
	Net realized capital gains (losses)		1,031			(259	)	NM			2,006			(1,026	)	NM
	Other income (expense)		304			(19	)	NM			278			(673	)	NM
	Total revenues		182,522			150,347		21	%		676,659			526,594		28	%
Operating expenses:
	Net losses and loss adjustment expenses incurred
			91,642			76,987		19	%		340,592			270,187		26	%
	Commission expense		23,188			16,689		39	%		77,613			57,787		34	%
	Other operating expenses		27,610			24,737		12	%		110,409			85,755		29	%
	Interest expense		2,217			2,214		NM			8,863			6,248		NM
	Total operating expenses		144,657			120,627		20	%		537,477			419,977		28	%
Income before income taxes			37,865			29,720		27	%		139,182			106,617		31	%
Income tax expense (benefit):
	Current		13,662			11,152		23	%		47,963			38,644		24	%
	Deferred		(2,337	)		(2,039	)	NM			(4,401	)		(4,590	)	NM
Income tax expense (benefit)			11,325			9,113		24	%		43,562			34,054		28	%
Net income		$	26,540		$	20,607		29	%	$	95,620		$	72,563		32	%
Per Share Data
Net income per common share:
	Basic	$	1.57		$	1.23		28	%	$	5.69		$	4.34		31	%
	Diluted	$	1.55		$	1.22		27	%	$	5.62		$	4.30		31	%
Average shares outstanding:
	Basic		16,863			16,712					16,812			16,722
	Diluted		17,078			16,877					17,005			16,856
Underwriting Ratios
Loss Ratio			56.8	%		57.3	%				56.6	%		57.7	%
Expense Ratio			30.9	%		30.4	%				30.9	%		30.1	%
Combined Ratio			87.7	%		87.7	%				87.5	%		87.8	%
Balance Sheet Data										Dec. 31,			Dec. 31,
											2007			2006
Stockholders' equity										$	662,106		$	551,343		20	%
Book value per share										$	39.24		$	32.94		19	%

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($'s in thousands)
			December 31,		December 31,
			2007		2006
ASSETS
Investments and cash:
	Fixed maturities, available-for-sale, at fair value (amortized cost: 2007, $1,508,489; 2006, $1,263,283)
			$	1,522,320	$	1,258,717
	Equity securities, available-for-sale, at fair value (cost: 2007, $65,492; 2006, $31,879)			67,240		37,828
	Short-term investments, at cost which approximates fair value			170,685		176,961
	Cash			7,056		2,404
		Total investments and cash		1,767,301		1,475,910
	Premiums in course of collection			163,081		163,309
	Commissions receivable			2,381		3,647
	Prepaid reinsurance premiums			188,961		179,493
	Reinsurance receivable on paid losses			94,818		108,878
	Reinsurance receivable on unpaid losses and loss adjustment expenses			801,461		911,439
	Net deferred income tax benefit			29,249		30,422
	Deferred policy acquisition costs			51,895		41,700
	Accrued investment income			15,605		13,052
	Goodwill and other intangible assets			8,084		8,012
	Other assets			20,935		20,824
		Total assets	$	3,143,771	$	2,956,686
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
	Reserves for losses and loss adjustment expenses		$	1,648,764	$	1,607,555
	Unearned premium			469,481		415,096
	Reinsurance balances payable			161,829		194,266
	Senior notes			123,673		123,560
	Federal income tax payable			10,868		3,934
	Accounts payable and other liabilities			67,050		60,932
		Total liabilities		2,481,665		2,405,343
Stockholders' equity:
	Preferred stock, $.10 par value, authorized 1,000,000 shares, none issued			-		-
	Common stock, $.10 par value, 50,000,000 shares authorized for 2007 and 50,000,000 for 2006; issued and outstanding: 16,873,094 for 2007 and 16,735,898 for 2006			1,687		1,674
	Additional paid-in capital			291,616		286,732
	Retained earnings			355,084		259,464
	Accumulated other comprehensive income (loss)			13,719		3,473
		Total stockholders' equity		662,106		551,343
		Total liabilities and stockholders' equity	$	3,143,771	$	2,956,686

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Comparative Premium Data
($'s in thousands)
Gross Written Premium:	Fourth Quarter					Twelve Months
Insurance Companies:	2007		2006		Change	2007		2006		Change
Marine	$	61,351	$	56,423	9%	$	266,647	$	266,351	0%
Specialty		92,010		91,533	1%		381,393		311,376	22%
Professional Liability		30,177		27,596	9%		99,556		92,760	7%
Other		5,316		1,078	NM		26,750		2,359	NM
		188,854		176,630	7%		774,346		672,846	15%
Lloyd's Operations:
Marine		41,555		43,060	-3%		225,216		245,134	-8%
Professional Liability		8,630		5,655	53%		34,281		21,759	58%
Other		8,297		7,629	9%		36,864		31,051	19%
		58,482		56,344	4%		296,361		297,944	-1%
Total	$	247,336	$	232,974	6%	$	1,070,707	$	970,790	10%
Net Written Premium:	Fourth Quarter					Twelve Months
Insurance Companies:	2007		2006		Change	2007		2006		Change
Marine	$	32,271	$	27,029	19%	$	137,724	$	128,920	7%
Specialty		69,324		58,858	18%		263,433		195,104	35%
Professional Liability		17,711		16,298	9%		59,117		51,192	15%
Other		2,914		717	NM		17,744		963	NM
		122,220		102,902	19%		478,018		376,179	27%
Lloyd's Operations:
Marine		21,531		20,610	4%		131,430		127,636	3%
Professional Liability		5,148		2,690	91%		23,349		9,016	159%
Other		3,426		2,894	18%		12,999		7,976	63%
		30,105		26,194	15%		167,778		144,628	16%
Total	$	152,325	$	129,096	18%	$	645,796	$	520,807	24%
Net Earned Premium:	Fourth Quarter					Twelve Months
Insurance Companies:	2007		2006		Change	2007		2006		Change
Marine	$	36,921	$	34,414	7%	$	133,452	$	115,093	16%
Specialty		68,589		51,346	34%		243,915		172,479	41%
Professional Liability		14,594		11,943	22%		55,149		41,437	33%
Other		2,745		686	NM		10,940		714	NM
		122,849		98,389	25%		443,456		329,723	34%
Lloyd's Operations:
Marine		28,490		31,615	-10%		132,443		130,644	1%
Professional Liability		8,161		2,107	287%		17,659		4,237	317%
Other		1,776		2,253	-21%		8,419		3,719	126%
		38,427		35,975	7%		158,521		138,600	14%
Total	$	161,276	$	134,364	20%	$	601,977	$	468,323	29%

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
December 31, 2007
($'s in thousands)
	Insurance			Lloyd's
	Companies			Operations			Corporate			Total
Gross written premium	$	188,854		$	58,482					$	247,336
Net written premium		122,220			30,105						152,325
Net earned premium		122,849			38,427						161,276
Net losses and loss adjustment expenses		(71,771	)		(19,871	)					(91,642	)
Commission expense		(14,418	)		(8,770	)					(23,188	)
Other operating expenses		(20,070	)		(7,540	)					(27,610	)
Other income (expense)		621			408						1,029
Underwriting profit		17,211			2,654						19,865
Investment income		15,351			3,357		$	478			19,186
Net realized capital gains (losses)		855			176						1,031
Interest expense								(2,217	)		(2,217	)
Income (loss) before income tax expense (benefit)
		33,417			6,187			(1,739	)		37,865
Income tax expense (benefit)		9,794			2,140			(609	)		11,325
Net income (loss)	$	23,623		$	4,047		$	(1,130	)	$	26,540
Loss and loss expenses ratio		58.4	%		51.7	%					56.8	%
Commission expense ratio		11.7	%		22.8	%					14.4	%
Other operating expenses ratio (1)		15.8	%		18.6	%					16.5	%
Combined ratio		85.9	%		93.1	%					87.7	%
(1) The other operating expenses ratio includes other income (expense).

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
December 31, 2006
($'s in thousands)
	Insurance			Lloyd's
	Companies			Operations			Corporate			Total
Gross written premium	$	176,630		$	56,344					$	232,974
Net written premium		102,902			26,194						129,096
Net earned premium		98,389			35,975						134,364
Net losses and loss adjustment expenses		(56,184	)		(20,803	)					(76,987	)
Commission expense		(11,487	)		(5,202	)					(16,689	)
Other operating expenses		(18,363	)		(6,374	)					(24,737	)
Other income (expense)		891			(300	)					591
Underwriting profit		13,246			3,296						16,542
Investment income		12,945			2,246		$	460			15,651
Net realized capital gains (losses)		(293	)		34						(259	)
Interest expense								(2,214	)		(2,214	)
Income (loss) before income tax expense (benefit)
		25,898			5,576			(1,754	)		29,720
Income tax expense (benefit)		8,401			1,951			(1,239	)		9,113
Net income (loss)	$	17,497		$	3,625		$	(515	)	$	20,607
Loss and loss expenses ratio		57.1	%		57.8	%					57.3	%
Commission expense ratio		11.7	%		14.5	%					12.4	%
Other operating expenses ratio (1)		17.7	%		18.5	%					18.0	%
Combined ratio		86.5	%		90.8	%					87.7	%
(1) The other operating expenses ratio includes other income (expense).

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Twelve Months Ended
December 31, 2007
($'s in thousands)
	Insurance			Lloyd's
	Companies			Operations			Corporate			Total
Gross written premium	$	774,346		$	296,361					$	1,070,707
Net written premium		478,018			167,778						645,796
Net earned premium		443,456			158,521						601,977
Net losses and loss adjustment expenses		(256,652	)		(83,940	)					(340,592	)
Commission expense		(52,490	)		(25,123	)					(77,613	)
Other operating expenses		(81,053	)		(29,356	)					(110,409	)
Other income (expense)		1,510			504						2,014
Underwriting profit		54,771			20,606						75,377
Investment income		58,261			10,524		$	1,877			70,662
Net realized capital gains (losses)		1,973			33						2,006
Interest expense								(8,863	)		(8,863	)
Income (loss) before income tax expense (benefit)
		115,005			31,163			(6,986	)		139,182
Income tax expense (benefit)		35,061			10,946			(2,445	)		43,562
Net income (loss)	$	79,944		$	20,217		$	(4,541	)	$	95,620
Loss and loss expenses ratio		57.9	%		53.0	%					56.6	%
Commission expense ratio		11.8	%		15.8	%					12.9	%
Other operating expenses ratio (1)		17.9	%		18.2	%					18.0	%
Combined ratio		87.6	%		87.0	%					87.5	%
(1) The other operating expenses ratio includes other income (expense).

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Twelve Months Ended
December 31, 2006
($'s in thousands)
	Insurance			Lloyd's
	Companies			Operations			Corporate			Total
Gross written premium	$	672,846		$	297,944					$	970,790
Net written premium		376,179			144,628						520,807
Net earned premium		329,723			138,600						468,323
Net losses and loss adjustment expenses		(191,740	)		(78,447	)					(270,187	)
Commission expense		(36,412	)		(21,375	)					(57,787	)
Other operating expenses		(62,459	)		(23,296	)					(85,755	)
Other income (expense)		3,552			(1,150	)					2,402
Underwriting profit		42,664			14,332						56,996
Investment income		47,723			7,694		$	1,478			56,895
Net realized capital gains (losses)		(622	)		(404	)					(1,026	)
Interest expense								(6,248	)		(6,248	)
Income before income tax expense
		89,765			21,622			(4,770	)		106,617
Income tax expense		28,843			7,601			(2,390	)		34,054
Net income (loss)	$	60,922		$	14,021		$	(2,380	)	$	72,563
Loss and loss expenses ratio		58.2	%		56.6	%					57.7	%
Commission expense ratio		11.0	%		15.4	%					12.3	%
Other operating expenses ratio (1)		17.9	%		17.6	%					17.8	%
Combined ratio		87.1	%		89.6	%					87.8	%
(1) The other operating expenses ratio includes other income (expense).

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Underwriting Results
($'s in thousands)
	Three Months Ended December 31, 2007
	Net Earned Premium		Losses and LAE Incurred
						Underwriting Expenses		Combined Ratio
Insurance Companies:								Loss		Expense		Total
Marine	$	36,921	$	20,477		$	10,692	55.4	%	29.0	%	84.4	%
Specialty		68,589		40,994			16,337	59.8	%	23.7	%	83.5	%
Professional Liability		14,594		7,613			4,776	52.2	%	32.6	%	84.8	%
Other		2,745		2,687			2,062	NM		NM		NM
		122,849		71,771			33,867	58.4	%	27.5	%	85.9	%
Lloyd's Operations		38,427		19,871			15,902	51.7	%	41.4	%	93.1	%
Total	$	161,276	$	91,642		$	49,769	56.8	%	30.9	%	87.7	%
	Three Months Ended December 31, 2006
	Net Earned Premium		Losses and LAE Incurred
						Underwriting Expenses		Combined Ratio
Insurance Companies:								Loss		Expense		Total
Marine	$	34,414	$	18,247		$	9,776	53.0	%	28.4	%	81.4	%
Specialty		51,346		29,935			14,826	58.3	%	28.9	%	87.2	%
Professional Liability		11,943		8,041			3,572	67.3	%	29.9	%	97.2	%
Other		686		(39	)		785	NM		NM		NM
		98,389		56,184			28,959	57.1	%	29.4	%	86.5	%
Lloyd's Operations		35,975		20,803			11,876	57.8	%	33.0	%	90.8	%
Total	$	134,364	$	76,987		$	40,835	57.3	%	30.4	%	87.7	%

	Amounts				Loss Ratio
Net Incurred Loss Activity For the Three Months Ended:	Dec. 31,		Dec. 31,		Dec. 31,	Dec. 31,
	2007		2006		2007	2006
Insurance Companies:
Loss and LAE payments	$	40,434	$	23,856	32.9%	24.2%
Change in reserves		31,337		32,328	25.5%	32.9%
Net incurred loss and LAE		71,771		56,184	58.4%	57.1%
Lloyd's Operations:
Loss and LAE payments		11,901	$	13,779	31.0%	38.3%
Change in reserves		7,970		7,024	20.7%	19.5%
Net incurred loss and LAE		19,871		20,803	51.7%	57.8%
Total
Loss and LAE payments		52,335		37,635	32.5%	28.0%
Change in reserves		39,307		39,352	24.4%	29.3%
Net incurred loss and LAE	$	91,642	$	76,987	56.8%	57.3%
Impact of Prior Years Reserves	Amounts				Loss Ratio Impact
Favorable / (Unfavorable) Development	Dec. 31,		Dec. 31,		Dec. 31,	Dec. 31,
For the Three Months Ended:	2007		2006		2007	2006
Insurance Companies	$	11,625	$	3,452	9.5%	3.5%
Lloyd's Operations		5,800		1,100	15.1%	3.1%
Total	$	17,425	$	4,552	10.8%	3.4%

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Underwriting Results
($'s in thousands)
	Twelve Months Ended December 31, 2007
	Net Earned Premium		Losses and LAE Incurred
					Underwriting Expenses		Combined Ratio
Insurance Companies:							Loss		Expense		Total
Marine	$	133,452	$	77,593	$	39,180	58.1	%	29.4	%	87.5	%
Specialty		243,915		136,220		66,206	55.8	%	27.1	%	82.9	%
Professional Liability		55,149		32,602		19,646	59.1	%	35.6	%	94.7	%
Other		10,940		10,237		7,001	NM		NM		NM
		443,456		256,652		132,033	57.9	%	29.7	%	87.6	%
Lloyd's Operations		158,521		83,940		53,975	53.0	%	34.0	%	87.0	%
Total	$	601,977	$	340,592	$	186,008	56.6	%	30.9	%	87.5	%
	Twelve Months Ended December 31, 2006
	Net Earned Premium		Losses and LAE Incurred
					Underwriting Expenses		Combined Ratio
Insurance Companies:							Loss		Expense		Total
Marine	$	115,093	$	65,856	$	31,339	57.2	%	27.2	%	84.4	%
Specialty		172,479		99,112		50,138	57.5	%	29.1	%	86.6	%
Professional Liability		41,437		26,756		12,648	64.6	%	30.5	%	95.1	%
Other		714		16		1,194	NM		NM		NM
		329,723		191,740		95,319	58.2	%	28.9	%	87.1	%
Lloyd's Operations		138,600		78,447		45,821	56.6	%	33.0	%	89.6	%
Total	$	468,323	$	270,187	$	141,140	57.7	%	30.1	%	87.8	%

	Amounts				Loss Ratio
Net Incurred Loss Activity For the Twelve Months Ended:	Dec. 31,		Dec. 31,		Dec. 31,	Dec. 31,
	2007		2006		2007	2006
Insurance Companies:
Loss and LAE payments	$	132,077	$	90,997	29.8%	27.6%
Change in reserves		124,575		100,743	28.1%	30.6%
Net incurred loss and LAE		256,652		191,740	57.9%	58.2%
Lloyd's Operations:
Loss and LAE payments	$	57,327	$	62,051	36.2%	44.8%
Change in reserves		26,613		16,396	16.8%	11.8%
Net incurred loss and LAE		83,940		78,447	53.0%	56.6%
Total
Loss and LAE payments		189,404		153,048	31.5%	32.7%
Change in reserves		151,188		117,139	25.1%	25.0%
Net incurred loss and LAE	$	340,592	$	270,187	56.6%	57.7%
Impact of Prior Years Reserves	Amounts				Loss Ratio Impact
Favorable / (Unfavorable) Development	Dec. 31,		Dec. 31,		Dec. 31,	Dec. 31,
For the Twelve Months Ended:	2007		2006		2007	2006
Insurance Companies	$	33,796	$	12,702	7.6%	3.9%
Lloyd's Operations		13,213		4,500	8.3%	3.2%
Total	$	47,009	$	17,202	7.8%	3.7%

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Loss Data
($'s in thousands)
	Case		IBNR
Net Loss Reserves, December 31, 2007:	Reserves		Reserves		Total
Insurance Companies:
Marine	$	93,110	$	103,229	$	196,339
Specialty		64,745		278,814		343,559
Professional Liability		20,335		50,584		70,919
Other		13,147		11,717		24,864
Total Insurance Companies		191,337		444,344		635,681
Lloyd's Operations:
Marine		89,957		93,069		183,026
Other		7,485		21,111		28,596
Total Lloyd's Operations		97,442		114,180		211,622
Total Net Loss Reserves	$	288,779	$	558,524	$	847,303
	Case		IBNR
Net Loss Reserves, December 31, 2006:	Reserves		Reserves		Total
Insurance Companies:
Marine	$	83,295	$	96,098	$	179,393
Specialty		55,284		205,560		260,844
Professional Liability		14,013		37,558		51,571
Other		9,866		9,433		19,299
Total Insurance Companies		162,458		348,649		511,107
Lloyd's Operations:
Marine		77,621		95,876		173,497
Other		3,104		8,408		11,512
Total Lloyd's Operations		80,725		104,284		185,009
Total Net Loss Reserves	$	243,183	$	452,933	$	696,116

Professional Liability
Reported Claims or Notices of Potential Claims
Related to Subprime Exposure (1)
December 31, 2007
($'s in thousands)
The following table sets forth claims data and other information related to subprime exposure for our professional liability business.  Our management believes that its reserves for losses and loss adjustment expenses are adequate to cover the ultimate costs for such loss contingencies related to subprime exposure for our professional liability business.
	Number	Average		Average		Average
	of	Gross		Net		Excess
	Claims (2)	Limit		Limit (3)		Attachment
Primary:
D&O Securities/Other Claims	-	$	-	$	-
Excess:
D&O Securities Claims	4		7,500		4,500	$	37,500
D&O Side A Securities Claims	2		5,000		3,500		137,500
Other Claims	2		10,000		5,500		35,000
Subtotal/Average	8		7,500		4,500
Total	8	$	7,500	$	4,500
(1) There are a total of 29 professional liability insurance policies with $2.6 million of gross written premium written by the Insurance Companies with possible or potential exposure to sub-prime issues.  None were written by our Lloyd’s Operations.
(2) Claims include all professional liability policies written by the Insurance Companies.  There are no reported claims or notices of potential claims reported for the Lloyd’s Operations. All policies are claims made.  Defense costs are inside the limits of liability.
(3) Amounts are net of reinsurance.

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Investment Data
December 31, 2007
($'s in thousands)
At December 31, 2007, the average quality of the investment portfolio as rated by S&P and Moody’s was AA/Aa with an average duration of 4.3 years.  All of the Company’s mortgage-backed and asset-backed securities except $0.2 million are rated AAA/Aaa by S&P and Moody’s and the Company does not own any collateralized debt obligations (CDO’s), collateralized loan obligations (CLO’s) or asset backed commercial paper.
The following table sets forth our cash and investments at December 31, 2007:
			Gross		Gross			Cost or
	Fair		Unrealized		Unrealized			Amortized
	Value		Gains		(Losses)			Cost
Fixed maturities:
U.S. Government Treasury bonds, GNMAs and foreign government bonds
	$	234,375	$	5,724	$	(337	)	$	228,988
Non-guaranteed government agency bonds		29,818		342		(4	)		29,480
States, municipalities and political subdivisions
		515,883		7,050		(657	)		509,490
Mortgage-backed securities		232,869		1,824		(479	)		231,524
Collateralized mortgage obligations		134,899		524		(823	)		135,198
Commercial mortgage-backed securities		113,488		544		(1,031	)		113,975
Asset-backed securities		64,352		533		(79	)		63,898
Corporate bonds		196,636		2,504		(1,804	)		195,936
Short-term investments		170,685		-		-			170,685
Total fixed maturities		1,693,005		19,045		(5,214	)		1,679,174
Equity securities - common stocks		67,240		6,452		(4,704	)		65,492
Cash		7,056		-		-			7,056
Total	$	1,767,301	$	25,497	$	(9,918	)	$	1,751,722
At December 31, 2007, the Company owned three asset-backed securities approximating $0.5 million with subprime mortgage exposures.  The securities are rated AAA/Aaa by S&P and Moody’s, respectively, and have an effective maturity of 0.8 years.  In addition, the Company owned eleven collateralized mortgage obligations approximating $20.9 million classified as Alt-A which is a credit category between prime and subprime.  The Alt-A bonds, also rated AAA/Aaa, have an effective maturity of 2.3 years.  Such subprime and Alt-A categories are as defined by S&P.  The Company is receiving principal and/or interest payments on all of these securities and believes such amounts are fully collectible.

The Navigators Group, Inc. and Subsidiaries
Investment Data
December 31, 2007
($'s in thousands)
The following three tables set forth our mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities by those issued by FNMA and FHLMC and the quality category (prime, Alt-A and subprime) for all other such investments at December 31, 2007:
			Gross		Gross			Cost or
	Fair		Unrealized		Unrealized			Amortized
Mortgage-backed securities:	Value		Gains		(Losses)			Cost
FNMA	$	173,773	$	1,539	$	(415	)	$	172,649
FHLMC		59,096		285		(64	)		58,875
Prime		-		-		-			-
Alt-A		-		-		-			-
Subprime		-		-		-			-
Total	$	232,869	$	1,824	$	(479	)	$	231,524
			Gross		Gross			Cost or
	Fair		Unrealized		Unrealized			Amortized
Collateralized mortgage obligations:	Value		Gains		(Losses)			Cost
GNMA	$	585	$	7	$	-		$	578
FNMA		11,359		154		-			11,205
FHLMC		13,455		169		-			13,286
Prime		88,628		180		(525	)		88,973
Alt-A		20,872		14		(298	)		21,156
Subprime		-		-		-			-
Total	$	134,899	$	524	$	(823	)	$	135,198
			Gross		Gross			Cost or
	Fair		Unrealized		Unrealized			Amortized
Asset-backed securities:	Value		Gains		(Losses)			Cost
GNMA	$	3,347	$	148	$	-		$	3,199
FNMA		-		-		-			-
FHLMC		-		-		-			-
Prime		60,553		385		(54	)		60,222
Alt-A		-		-		-			-
Subprime		452		-		(25	)		477
Total	$	64,352	$	533	$	(79	)	$	63,898

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Investment Data
December 31, 2007
($'s in thousands)
The Company owns securities credit enhanced by financial guarantors that generally result in such securities receiving the financial guarantor’s credit ratings by S&P and Moody’s.  The following two tables set forth the amount of credit enhanced securities in the portfolio by category at December 31, 2007, identify the amount insured by each financial guarantor and identify the average underlying credit rating of such credit enhanced securities.
										Average
			Gross		Gross			Cost or		Underlying
	Fair		Unrealized		Unrealized			Amortized		Credit
Fixed Maturities:	Value		Gains		(Losses)			Cost		Rating
Credit enhanced securities:
States, municipalities and political subdivisions
	$	272,491	$	3,665	$	(287	)	$	269,113
Mortgage- and asset-backed securities		13,047		35		(10	)		13,022
Corporate bonds		2,194		3		(27	)		2,218
Total	$	287,732	$	3,703	$	(324	)	$	284,353
Financial guarantors:
AMBAC	$	63,003	$	629	$	(98	)	$	62,472	A+
Assured Guaranty LTD		4,005		68		-			3,937	A
FGIC		54,812		631		(76	)		54,257	AA-
Financial Security Assurance		72,046		1,339		(18	)		70,725	A+
MBIA		76,433		918		(65	)		75,580	AA-
Radian Group, Inc.		7,681		78		(55	)		7,658	AA-
XL Capital		9,752		40		(12	)		9,724	A
Total	$	287,732	$	3,703	$	(324	)	$	284,353	AA-
The average underlying credit rating by bond insurer of the insured securities rated by S&P or Moody’s if such securities did not have the credit enhancing insurance is included in the “Underlying Credit Rating” column in the above table.  This average rating includes $16.2 million of prerefunded municipal bonds which have an implied rating of AAA but are not otherwise rated by S&P or Moody’s.  Such average ratings exclude a total of 44 credit enhanced securities approximating $30.9 million that do not have an underlying rating consisting of 22 municipal bonds approximating $15.7 million, 17 asset backed securities approximating $13.0 million and 5 corporate bonds approximating $2.2 million.

CONTACT:
The Navigators Group, Inc.
Paul J. Malvasio, 914-933-6088
Executive Vice President and Chief Financial Officer
pmalvasio@navg.com
www.navg.com