Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

Financial data by segment for the three and six months ended June 30, 2014 and 2013 were as follows:


	Three Months Ended June 30, 2014
In thousands	Insurance Companies			Lloyd’s Operations			Corporate ⁽¹⁾			Total
Gross written premiums	$	243,729		$	105,066		$	—		$	348,795
Net written premiums		174,041			57,823			—			231,864
Net earned premiums		178,412			52,672			—			231,084
Net losses and loss adjustment expenses		(108,502	)		(31,718	)		—			(140,220	)
Commission expenses		(23,021	)		(9,675	)		546			(32,150	)
Other operating expenses		(34,415	)		(13,577	)		—			(47,992	)
Other underwriting income (expense)		768			13			(546	)		235

Underwriting profit (loss)	$	13,242		$	(2,285	)		—		$	10,957
Net investment income		13,805			1,824			19			15,648
Net realized gains (losses)		4,458			15			—			4,473
Interest expense		—			—			(4,319	)		(4,319	)
Other income		(68	)		(1,832	)		—			(1,900	)

Income (loss) before income taxes	$	31,437		$	(2,278	)	$	(4,300	)	$	24,859
Income tax expense (benefit)		10,049			(672	)		(1,379	)		7,998

Net income (loss)	$	21,388		$	(1,606	)	$	(2,921	)	$	16,861

Identifiable assets	$	3,280,303		$	985,181		$	150,247		$	4,415,731

Losses and loss adjustment expenses ratio		60.8	%		60.2	%					60.7	%
Commission expense ratio		12.9	%		18.4	%					13.9	%
Other operating expense ratio ⁽²⁾		18.9	%		25.7	%					20.7	%

Combined ratio		92.6	%		104.3	%					95.3	%

(1) - Includes Corporate segment intercompany eliminations.

(2) - Includes Other operating expenses and Other underwriting income.


	Three Months Ended June 30, 2013
In thousands	Insurance Companies			Lloyd’s Operations			Corporate ⁽¹⁾			Total
Gross written premiums	$	228,565		$	103,563		$	—		$	332,128
Net written premiums		143,380			55,089			—			198,469
Net earned premiums		156,547			49,267			—			205,814
Net losses and loss adjustment expenses		(106,668	)		(24,480	)		—			(131,148	)
Commission expenses		(20,573	)		(8,335	)		517			(28,391	)
Other operating expenses		(29,829	)		(10,849	)		—			(40,678	)
Other income (expense)		689			(1,087	)		(517	)		(915	)

Underwriting profit (loss)	$	166		$	4,516		$	—		$	4,682
Net investment income		12,515			1,728			3			14,246
Net realized gains (losses)		3,099			242			4			3,345
Interest expense		—			—			(2,052	)		(2,052	)

Income (loss) before income taxes	$	15,780		$	6,486		$	(2,045	)	$	20,221
Income tax expense (benefit)		4,785			2,206			(707	)		6,284

Net income (loss)	$	10,995		$	4,280		$	(1,338	)	$	13,937

Identifiable assets	$	3,097,754		$	947,736		$	51,020		$	4,096,510

Losses and loss adjustment expenses ratio		68.1	%		49.7	%					63.7	%
Commission expense ratio		13.1	%		16.9	%					13.8	%
Other operating expense ratio ⁽²⁾		18.7	%		24.2	%					20.2	%

Combined ratio		99.9	%		90.8	%					97.7	%

(1) - Includes Corporate segment intercompany eliminations.

(2) - Includes Other operating expenses and Other income.


	Six Months Ended June 30, 2014
In thousands	Insurance Companies			Lloyd’s Operations			Corporate⁽¹⁾			Total
Gross written premiums	$	555,527		$	216,058		$	—		$	771,585
Net written premiums		407,992			135,722			—			543,714

Net earned premiums		344,296			112,060			—			456,356
Net losses and loss adjustment expenses		(214,929	)		(60,358	)		—			(275,287	)
Commission expenses		(39,731	)		(19,201	)		1,055			(57,877	)
Other operating expenses		(67,802	)		(27,336	)		—			(95,138	)
Other underwriting income (expense)		1,426			19			(1,055	)		390

Underwriting profit (loss)	$	23,260		$	5,184		$	—		$	28,444

Net investment income		28,582			3,639			37			32,258
Net realized gains (losses)		5,695			(389	)		—			5,306
Interest expense		—			—			(8,171	)		(8,171	)
Other income		(19	)		8,363			—			8,344

Income (loss) before income taxes	$	57,518		$	16,797		$	(8,134	)	$	66,181

Income tax expense (benefit)		18,161			5,966			(2,775	)		21,352

Net income (loss)	$	39,357		$	10,831		$	(5,359	)	$	44,829

Identifiable assets	$	3,280,303		$	985,181		$	150,247		$	4,415,731

Losses and loss adjustment expenses ratio		62.4	%		53.9	%					60.3	%
Commission expense ratio		11.5	%		17.1	%					12.7	%
Other operating expense ratio ⁽²⁾		19.3	%		24.4	%					20.8	%

Combined ratio		93.2	%		95.4	%					93.8	%

(1) - Includes Corporate segment intercompany eliminations.

(2) - Includes Other operating expenses and Other underwriting income.


	Six Months Ended June 30, 2013
In thousands	Insurance Companies			Lloyd’s Operations			Corporate⁽¹⁾			Total
Gross written premiums	$	530,193		$	195,157		$	—		$	725,350
Net written premiums		359,699			108,222			—			467,921

Net earned premiums		310,878			97,264			—			408,142
Net losses and loss adjustment expenses		(213,653	)		(48,837	)		—			(262,490	)
Commission expenses		(39,090	)		(16,956	)		1,100			(54,946	)
Other operating expenses		(59,172	)		(22,380	)		—			(81,552	)
Other income (expense)		1,348			(545	)		(1,100	)		(297	)

Underwriting profit (loss)	$	311		$	8,546		$	—		$	8,857

Net investment income		24,466			3,430			7			27,903
Net realized gains (losses)		7,891			222			4			8,117
Interest expense		—			—			(4,103	)		(4,103	)

Income (loss) before income taxes	$	32,668		$	12,198		$	(4,092	)	$	40,774

Income tax expense (benefit)		10,199			4,242			(1,514	)		12,927

Net income (loss)	$	22,469		$	7,956		$	(2,578	)	$	27,847

Identifiable assets	$	3,097,754		$	947,736		$	51,020		$	4,096,510

Losses and loss adjustment expenses ratio		68.7	%		50.2	%					64.3	%
Commission expense ratio		12.6	%		17.4	%					13.5	%
Other operating expense ratio ⁽²⁾		18.6	%		23.6	%					20.0	%

Combined ratio		99.9	%		91.2	%					97.8	%

(1) - Includes Corporate segment intercompany eliminations.

(2) - Includes Other operating expenses and Other income.

Additional Financial Data by Segment

The following tables provide additional financial data by segment for the three and six months ended June 30, 2014 and 2013:

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Comparative Premium Data


	Three Months ended June 30,							Six Months ended June 30,
In thousands	2014		2013		Change			2014		2013		Change
Gross Written Premiums:
Insurance Companies:
Marine	$	48,119	$	43,077		11.7	%	$	100,352	$	93,924		6.8	%
Property Casualty		168,597		152,095		10.8	%		397,953		371,059		7.2	%
Professional Liability		27,013		33,393		-19.1	%		57,222		65,210		-12.2	%

		243,729		228,565		6.6	%		555,527		530,193		4.8	%
Lloyd’s Operations:
Marine		46,005		45,893		0.2	%		108,962		99,537		9.5	%
Property Casualty		37,162		41,217		-9.8	%		70,241		66,275		6.0	%
Professional Liability		21,899		16,453		33.1	%		36,855		29,345		25.6	%

		105,066		103,563		1.5	%		216,058		195,157		10.7	%

Total	$	348,795	$	332,128		5.0	%	$	771,585	$	725,350		6.4	%


	Three Months ended June 30,							Six Months ended June 30,
	2014		2013		Change			2014		2013		Change
Net Written Premiums:
Insurance Companies:
Marine	$	35,357	$	27,366		29.2	%	$	76,481	$	68,507		11.6	%
Property Casualty		119,633		90,711		31.9	%		291,994		240,662		21.3	%
Professional Liability		19,051		25,303		-24.7	%		39,517		50,530		-21.8	%

		174,041		143,380		21.4	%		407,992		359,699		13.4	%
Lloyd’s Operations:
Marine		29,562		34,060		-13.2	%		81,693		73,618		11.0	%
Property Casualty		14,392		12,181		18.2	%		30,926		19,493		58.7	%
Professional Liability		13,869		8,848		56.7	%		23,103		15,111		52.9	%

		57,823		55,089		5.0	%		135,722		108,222		25.4	%

Total	$	231,864	$	198,469		16.8	%	$	543,714	$	467,921		16.2	%


	Three Months ended June 30,							Six Months ended June 30,
	2014		2013		Change			2014		2013		Change
Net Earned Premiums:
Insurance Companies:
Marine	$	31,752	$	31,798		-0.1	%	$	64,512	$	68,523		-5.9	%
Property Casualty		124,695		99,477		25.4	%		235,521		192,195		22.5	%
Professional Liability		21,965		25,272		-13.1	%		44,263		50,160		-11.8	%

		178,412		156,547		14.0	%		344,296		310,878		10.7	%
Lloyd’s Operations:
Marine		32,213		34,623		-7.0	%		71,100		68,668		3.5	%
Property Casualty		11,463		8,562		33.9	%		24,421		16,441		48.5	%
Professional Liability		8,996		6,082		47.9	%		16,539		12,155		36.1	%

		52,672		49,267		6.9	%		112,060		97,264		15.2	%

Total	$	231,084	$	205,814		12.3	%	$	456,356	$	408,142		11.8	%

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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