1. Sidoti & Company, LLC Investor Forum New York, NY March 22, 2011
The Navigators Group, Inc. “Insuring a World in Motion”
Sidoti & Company, LLC Investor Forum New York, NY March 22, 2011
Stan Galanski
President and CEO
Frank McDonnell Senior Vice President & CFO

2. Forward Looking Statements
This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this presentation are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan,“ "intend," "believe" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. These forward-looking statements are based on assumptions that we have made in light of our industry experience and on our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you consider this presentation, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond our control) and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results and cause them to differ materially from those anticipated in the forward-looking statements.
Because of these factors, we caution that you should not place undue reliance on any of our forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us. Except as required by law, we have no duty to, and do not intend to, update or revise the forward-looking statements in this presentation after the date of this presentation.

3. The Navigators Group, Inc.
Specialty insurer operating in targeted property/casualty niches
Top 5 U.S. Marine insurer
Top 25 U.S. Excess & Surplus Lines casualty insurer
Emerging leader in D&O / Professional Liability
A global specialty insurance platform
Two U.S. domiciled insurance companies with licenses in the U.K. and South America
Navigators Syndicate 1221 at Lloyd’s provides global access to desired markets
40% of Navigators premiums are produced outside the U.S.
A growing brand and market reputation
#66 New York’s fastest-growing companies, 2010 Crain’s New York Business
#137 New York’s largest publicly held companies, 2010, Crain’s New York Business
Recognized as one of “100 Most Trustworthy Companies” by Forbes.com
Financial Strength rated “A” by Standard & Poor’s and A.M. Best

4. Core Values Underwriting Profit, not premium volume.
Specialization in complex risks where the know-how of our Intellectual Capital is a competitive advantage.
Commitment to Customer Service backed by a Strong Balance Sheet.
Discipline to walk away from business that doesn’t meet our terms and standards.
Expense Control by spending money like it is our own.
Teamwork gets the job done.
We conduct our business with Integrity, Professionalism and Pride.

5. Track Record of Underwriting Excellence

6. A Decade of Successful Growth and Diversification
2001
D&O
Chicago Marine
2004
Excess Casualty
Antwerp Office
2005
Acquired 100% Control of Lloyd’s Syndicate 1221
2006
Primary Casualty
Inland Marine
2007
Orange County Office
Miami Office (Latin America)
2008
New Jersey Office
Stockholm Office
Brazilian License
Environmental Underwriting Team
Professional Liability Expansion
Lloyd’s China
2009
UK D&O Expansion
Architect & Engineering Team
Philadelphia Office
Pittsburgh Office
Charlotte Office
Copenhagen Office
2010
Los Angeles Office
Lloyd’s Brazil
Navigators Re
Gross Written Premium
($ in millions)
$987.2
19% 4%
10%
23%
32%
13%
$779.6 4%
27%
11%
30%
$278.2
38%
21%
39%

7. $987 Billion Gross Written Premium
Specialty Focus
17.6%
41.1%
41.3%
$987 Billion Gross Written Premium
Full Year 2010

8. Gross Written Premium $406 million
A Market Leader In Marine
Market Leaders In:
Marine Liability
Bluewater Hull
Specie / Cash In Transit
Transport
Policyholders Include:
Terminal Operators
Port Authorities
Cruise Ships
Ship Owners
Logistics Providers
Importers / Exporters
Armored Car Services
Museums
Gross Written Premium $406 million
41% of 2010 Group Total
(Green = Higher Growth Potential) 8

9. Gross Written Premium $407 million
Focus on Select Specialty Property & Casualty Niches
Nav Tech: Property Insurance for Energy and Power Generation Risks
Excess Casualty: Monoline Commercial Umbrella & Commercial Excess Liability
Western States Construction: A Market Leader in California Construction Liability Since 1995
E&S Primary Casualty: Construction East of the Rockies, Product Liability, Real Estate and Environmental Casualty
NAV PAC: Admitted Niche Property/Casualty Products for Middle Market Businesses
Life Sciences: Product Liability and Clinical Trials Coverage
Gross Written Premium $407 million
41% of 2010 Group Total
(Green = Higher Growth Potential)

10. Gross Written Premium $174 million
Management & Professional Liability Niche Focus
Gross Written Premium $174 million
18% of 2010 Group Total
Specializing In:
US D&O
Primary and Excess on
Small to Mid Cap Public Companies
Private Companies
Not for Profit Organization
International D&O
High Excess D&O on Large Cap
Primary D&O on Small to Mid Cap
Underwriters in London, Stockholm, Copenhagen and Shanghai
E&O
Lawyers
Architects & Engineers
Insurance Agents
Miscellaneous Professional
(Green = Higher Growth Potential)

11. Taking Our Products to New Geographic Markets in The U.S.
Number of Products
One – Black
Two – Blue
Multiple - Red
Navigators U.S. Footprint – 2001
$278 Million Gross Written Premium

12. Taking Our Products to New Geographic Markets in The U.S.
Number of Products
One – Black
Two – Blue
Multiple - Red
Navigators U.S. Footprint – 2010
$1 Billion Gross Written Premium

13. Specialty Expertise Construction Wrap-up
Project: 42 story, 116 unit residential condominium in Dallas, Texas
Duration: 3 years
Number of contractors: 40
Solution: One shared liability program with primary limits of $2 million
NAVG advantages:
Contract review
Proprietary terms and conditions
Construction claims expertise

14. Strategies For A Softening Market
Emphasize Profit Not Premium
Reduce premium when profit margins are not apparent
Reward underwriters for profit, not premiums
Diligent commission negotiations and expense management
Targeted Growth Opportunities in High Margin/Low Market Share Products
NavTech
Excess Casualty
International D&O
Professional Liability
Navigators Re
Expansion of Distribution System/Regional Office Network
Improve Productivity / Service Efficiency
“Navigate” Proprietary Policy Administration Systems
Expansion of remote service centers
Preserve & Grow our Intellectual Capital
Responsible Capital Management
Share re-purchase
Conservative investment strategy
Enterprise risk management

15. Global Leadership Team

16. The Navigators Group, Inc.
Financial Overview

17. The Navigators Group, Inc.
EXCHANGE/TICKER
MARKET CAP (3/16/11)
SHARE PRICE (3/16/11)
BOOK VALUE/SHARE (12/31/10)
FINANCIAL STRENGTH
WEBSITE
NASDAQ/NAVG
$766 MILLION
$49.29
$52.68
A (A.M. BEST/S&P) 17

18. Strong Book Value Growth
Stockholders’ Equity
($ in millions)
100.7%
- Deep Water
Horizon
106.6%
- A&E Charge
101.3%
- Hurricanes
93.8%
- Hurricanes
Combined Ratio
Stockholders’ Equity 18

19. High Quality Investment Portfolio
At December 31, 2010
Invested assets: $2.2 billion
Fixed Maturities, Cash and Short-term Investments:
96% of portfolio
Average AA rating
Duration of approximately 4.3 years
Average 2010 investment yield of 3.5%
Equity securities: 4% of portfolio
Substantially all mortgage and asset- backed securities are investment grade
No CDO’s, CLO’s or asset-backed commercial paper
Underlying credit rating of A+ for credit enhanced securities

20. Strong Growth in Invested Assets
$2,154
Invested Assets
($ in millions)
$2,057
$1,918
$1,767
$1,476
$1,182
$855
$694
$453
$278

21. Historical Consolidated Net Loss Reserves
Prudent & Consistent Loss Reserving
Historical Consolidated Net Loss Reserves
$1,143
$1,113
$1,000
($ in millions)
40%
60%
$847
39%
61%
37%
63%
$696
34%
66%
$579
35%
65%
$464
39%
61%
$374
41%
59%
$265
41%
59%
$203
51%
49%
54%
46%
12/31/ /31/ /31/ /31/ /31/ /31/ /31/ /31/ /31/ /31/10

22. Reinsurance - Integral Part of Our Business
Utilize reinsurance to reduce exposure to individual risks & catastrophic losses
Stabilize underwriting results
Ratio of NWP to GWP for 2010 was 66.2%
Philosophy
Diversification of reinsurers
High credit quality
Strong collateral position
Reserve for Uncollectible Reinsurance
Integration of reinsurance risk into ERM practices
Mitigate Risks

23. Reinsurer Financial Strength Ratings
(A.M. Best or equivalent ratings - December 31, 2010) ($ in millions)
Total Recoverables $1,057
Total Offsets/Funds Held (179)
Net Recoverables $878

24. West Coast Construction Liability
Managing the Cycle – Underwriting Discipline
($ in thousands)
West Coast Construction Liability
Ultimate Premium
Ultimate Loss Ratio $

25. Managing the Cycle – Aggregate Management Offshore Energy Gulf of Mexico Wind Aggregate Exposure
($ in millions)

26. Managing the Cycle – Capital Management
Maintain financial strength ratings
Grow book value per share
Conservative & proactive investment management
Accretive debt repurchase - $3 million gain
Accretive share repurchases
$11.5 million
$ 6.8 million
$ 52.0 million
Average cost per share through 12/31/ $43.10

27. The Navigators Group, Inc.
2010 Financial Highlights

28. The Navigators Group, Inc
The Navigators Group, Inc. and Subsidiaries 2010 Financial Highlights ($ in thousands, except per share data, unaudited) 28

29. The Navigators Group, Inc.

30. Summary
Specialty underwriter with proven track record of profitable growth
Track record of attracting/retaining strong underwriting expertise
Strong balance sheet
High quality, liquid and conservative investment portfolio
Experienced at insurance cycle management
Experienced at capital management
Focused on growing book value per share