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The Navigators Group, Inc.“Insuring a World in Motion”

CSFB Insurance Conference

March 25, 2004

The Navigators Group, Inc.“Insuring a World in Motion”

CSFB Insurance Conference

March 25, 2004

Stanley A. Galanski, President & Chief Executive OfficerPaul J. Malvasio, Executive Vice President & Chief Financial Officer

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• This presentation 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.

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Navigators – Corporate Overview

• Specialty Insurance Holding Company

– Specialty niches include: • Marine, Energy• D&O, Professional Liability• Specialty Property/Casualty

– Construction– Surety– Personal Umbrella

• Insurance subsidiaries “A” rated by A.M. Best and S&P

• Operations at Lloyd’s provide a global platform

• Offices in major ports/insurance centers in the U.S. and U.K.– New York, Seattle, San Francisco/Oakland, Houston, Chicago– London, Manchester, Leeds, Basingstoke

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Navigators – Investment Highlights

• A global leader in marine insurance– Business founded through Navigators Agencies in 1974– Lloyd’s presence through Syndicate 1221 acquired in 1998

• Complements US operations and provides global market access

• Commitment to underwriting profit– World-class specialty underwriting teams– Emphasis on bottom-line results, not market share

• Diversifying opportunistically into attractive new business lines– Specialty Property & Casualty and Professional Liability– Excellent market opportunities and producer support– Portfolio diversification for stronger earnings stream across market

cycles• Operating from a strong and leveragable platform

– Rated “A” by A.M. Best and Standard and Poor’s– Lloyd’s licenses provide access to major world markets– No legacy balance sheet issues– No debt

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• Senior underwriting management team has an average of approximately 29 years in the industry and 13 years at NAVG.

Executive

Position

Years in Industry

Terence N. Deeks

Chairman

46

Stanley A. Galanski President and CEO 23

David E. Hope President Navigators Marine & Energy 22

Michael L. Civisca SVP Navigators U.S. Marine & Energy 22

Colin T. Dingley Active Underwriter, Syndicate 1221 30

Noel Higgitt President Navigators Specialty 47

Christopher C. Duca President Navigators Pro 12

Deep, Experienced Underwriting Team

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Navigators Agencies Marine & Energy

• Navigators has an 80% participation in marine insurance pool operated by Navigators Agencies in 2003

• Recognized leader in the U.S. Bluewater Hull and Liability lines

• One of the largest marine portfolios in the U.S. market

• Navigators U.K. Branch has become our largest regional marine office

• Rate increases on renewal business of 13% in 2003 and 21% in the year 2002

Marine & Energy (Lloyd's)

Navigators Pro

Navigators Specialty

32% of 2003 GPW

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2002 U.S. Market Share

U.S. Companies Navigators

Market Share

Cargo $656,563 $16,472 2.5%

Bluewater 102,610 23,922 23.3%

Craft/Fishing 196,377 19,098 9.7%

Liability 282,583 52,105 18.4%

Offshore energy 313,394 40,804 13.0%

($ in thousands)

Note: As reported by the AIMU.

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Lloyd’s Marine & Energy

• Navigators Underwriting Agency, Ltd. manages Syndicate 1221

• Navigators provides 97.4% of Syndicate 1221’s gross capacity / $255mm for 2004 underwriting year compared to $200mm for 2003

• A Lloyd’s market leader in cargo and specie insurance

• Millennium Consortium at Lloyd’s for construction/engineering risks

• Expansion of Pennine operations positioned in three regional U.K. offices

• Rate increase of 15% in 2003, after 26% rate increase in 2002

Marine & Energy (Lloyd's)

Navigators Pro

Navigators Specialty

37% of 2003 GPW

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2002 Lloyd’s Market Share

Lloyd’s Market Syndicate 1221

Market Share

Cargo £328,000 £31,000 9.5%

Bluewater Hull 392,000 7,000 1.8%

Marine Excess of Loss

223,000 12,000 5.4%

Liability 315,000 16,000 5.1%

Offshore energy 500,000 10,000 2.0%

(₤ in thousands)

Source: Lloyd’s Market Association

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Navigators Specialty

• Specialty P&C products are written on an admitted or surplus line basis

• Since 1995 has underwritten general liability insurance for small general and artisan contractors, mostly in California

– Acquired Anfield Insurance Services in 1999

– Specialty underwriting/claims expertise

• Strategy to diversify by product line and geographically

– Midwest branch operation since 2002

– Surety and personal umbrella products

• Three newer initiatives generated approximately 20% of 2003 specialty gross written premium

• Rate increase of 49% in 2003, after 30% rate increase in 2004 for contractors liability business

22% of 2003 GPW

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Navigators Pro

• Introduced D&O liability insurance in late 2001 with team of experienced professionals– Traditionally very profitable niche business in P&C industry– Compelling market opportunity given recent shareholder lawsuits– Focus on privately held and small to mid-size public corporations

• In late 2002, introduced lawyers professional liability and other miscellaneous professional liability coverages

• Complementary products for D&O clients include:– Fiduciary liability– Employment practices liability– Crime insurance

9% of 2003 GPW

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Growth and Portfolio Diversification

-

100

200

300

400

500

600

700

2001 2002 2003

Navigators Agencies Marine & Energy Lloyd's Marine & Energy Specialty Navigators Pro

Gross Premium Written by Segment($ in millions)

0.3%21.6%

39.3%

38.9%

$278.2

CAGR: 47.6%

$447.8 5.2%

26.3%

28.5%

40.0%

8.7%

21.7%

37.2%

32.4%

$606.5

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Underwriting Culture Focuses on Profitability

2001(1) 2002 2003(2)

Marine & Energy 79.1% 85.2% 72.7%

Lloyd’s 107.3% 101.6% 92.3%

Specialty 97.8% 104.8% 110.9%

Professional Liability

Total

N/M

101.0%

N/M

98.5%

84.9%

92.3%

Normalized Combined Ratio

(1) Excludes 2.7% for World Trade Center losses of $4.5 million recorded in 2001(2) Excludes 11.7% for A&E losses of $31.6 million recorded in 2003

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Prudent Reserving Practices

-

80

160

240

320

400

2001 2002 2003

Loss & LAE Case Reserve Loss & LAE IBNR

($ in millions)

46.2%

53.8%

$202.8

$264.6

48.9%

51.1%

58.7%

41.3%

$374.2

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High Quality Investment Portfolio

• Total Portfolio Size: $694 million

• Fixed Maturities and Cash: 98% of portfolio– Average AA rating

– Duration of approximately 3.7 years

– Average yield of 3.8% for 2003

• Equity Securities: 2% of portfolio

At December 31, 2003

Cash & Short-Term Securities

Equity

Corporate Bonds

Mortgage and Asset

Backed Securities

Municipal Bonds

U.S. Treasury Bonds & GNMA's

13%

32%

13%20%

20%

2%

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Net Income and Book Value Growth

2001 2002 2003

Net Income $ 0.43 $ 1.89 $ 0.80

Adjusted Net Income $ 0.96(1) $ 1.89 $ 2.94(2)

Outstanding Shares (millions) 8.4 8.5 12.5

Book Value $17.47 $20.18 $23.14

Book Value Growth +15.5% +14.7%

Per share data

(1) Adjusted for World Trade Center losses of $4.5 million or $0.53 per share(2) Adjusted for 2003 fourth quarter asbestos losses of $31.5 million or $2.14 per share

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Why Navigators Now?

• Global leader in marine insurance

• Diversification strategy is on target

• Experienced management team

• Intellectual capital / specialty expertise

• Commitment to underwriting profit

• Proven track record

• Operating from a strong and leveragable platform

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“Insuring a World in Motion”