Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2016

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Registrant

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Condensed Financial Information of Registrant

The Navigators Group, Inc.

Balance Sheets

(Parent Company)

	December 31,
amounts in thousands except share amounts	2016			2015
ASSETS
Investments	$	1,660		$	89,586
Cash		11,003			6,417
Investments in subsidiaries		1,381,652			1,232,012
Goodwill and other intangible assets		2,534			2,534
Other assets		49,588			33,647
Total assets	$	1,446,437		$	1,364,196
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Senior notes	$	263,728		$	263,580
Accounts payable and other liabilities		1,347			1,294
Accrued interest payable		3,174			3,174
Total liabilities	$	268,249		$	268,048
Stockholders' Equity:(1)
Preferred stock, $.10 par value, authorized 1,000,000 shares, none issued	$	—		$	—
Common stock, $.10 par value, authorized 50,000,000 shares, issued 36,146,899    shares for  2016 and 35,884,538 shares for 2015		3,612			3,586
Additional paid-in capital		373,983			356,036
Treasury stock, at cost (7,022,760 shares for 2016 and 2015)		(155,801	)		(155,801	)
Retained earnings		947,519			868,723
Accumulated other comprehensive income:
Net unrealized gains (losses) on securities available-for-sale, net of tax		8,882			23,611
Foreign currency translation adjustment, net of tax		(7	)		(7	)
Total stockholders' equity	$	1,178,188		$	1,096,148
Total liabilities and stockholders' equity	$	1,446,437		$	1,364,196

(1) - We completed a two-for-one stock split on January 20, 2017. All share and per share data has been retroactively restated on a post-split basis.

SCHEDULE II

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Condensed Financial Information of Registrant (Continued)

The Navigators Group, Inc.

Statements of Income

(Parent Company)

	Years Ended December 31,
amounts in thousands	2016			2015			2014
Revenues:
Net investment income	$	53		$	147		$	76
Total revenues	$	53		$	147		$	76
Expenses:
Interest expense		15,435			15,424			15,413
Other (income) expense		22			—			—
Total expenses	$	15,457		$	15,424		$	15,413
Income (loss) before income tax benefit	$	(15,404	)	$	(15,277	)	$	(15,337	)
Income tax  benefit		(8,009	)		(5,472	)		(5,287	)
Income (loss) before equity in undistributed net  income of    wholly owned subsidiaries	$	(7,395	)	$	(9,805	)	$	(10,050	)
Equity in undistributed net income of  wholly-owned subsidiaries		90,121			90,862			105,379
Net income	$	82,726		$	81,057		$	95,329

SCHEDULE II

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

Condensed Financial Information of Registrant (Continued)

The Navigators Group, Inc.

Statements of Cash Flows

(Parent Company)

	Years Ended December 31,
amounts in thousands	2016			2015			2014
Operating activities:
Net income	$	82,726		$	81,057		$	95,329
Adjustments to reconcile net income to net cash provided    by (used in) operations:
Equity in undistributed net income of wholly-owned subsidiaries		(90,121	)		(90,862	)		(105,379	)
Dividends received from subsidiaries		5,000			—			—
Other		379			3,373			9,211
Net cash provided by (used in) operating activities	$	(2,016	)	$	(6,432	)	$	(839	)
Investing activities:
Fixed maturities, available-for-sale
Sales	$	—		$	1,250		$	3,200
Purchases		—			—			—
Equity securities
Sales		—			—			—
Purchases		—			—			—
Net (increase) decrease in short-term investments		87,942			3,918			(3,424	)
Net cash provided by (used in) investing activities	$	87,942		$	5,168		$	(224	)
Financing activities:
Capital contribution to subsidiary	$	(79,250	)	$	—		$	—
Proceeds of stock issued from employee stock purchase plan		1,840			1,352			1,067
Proceeds of stock issued from exercise of stock options		—			29			153
Dividends paid		(3,930	)		—			—
Net cash provided by (used in) financing activities	$	(81,340	)	$	1,381		$	1,220
Increase (decrease) in cash	$	4,586		$	117		$	157
Cash at beginning of year		6,417			6,300			6,143
Cash at end of year	$	11,003		$	6,417		$	6,300