NEW YORK - (Business Wire) The Navigators Group, Inc. (NASDAQ:NAVG) announced today that its estimated after-tax loss from Hurricanes Gustav and Ike will approximate $18 million or $1.08 per share in the 2008 third quarter. The net loss estimate is inclusive of expected reinsurance recoveries and related reinsurance reinstatement premiums.
The estimates are based upon the best information currently available to us and were developed from a combination of preliminary claims notifications received from brokers and insureds, portfolio modeling based upon the storm track of Hurricanes Gustav and Ike, and the Company's own internal assessment of the exposures insured under individual policies.
The Company also announced today that its 2008 third quarter net realized capital losses will include impairments of approximately $4.7 million for declines in the market value of certain of its investment securities. Such declines in market value are considered to be other-than-temporary. The after-tax loss from such impairments will approximate $3.1 million or $0.18 per share.
The Company’s after-tax unrealized loss from its investment portfolio at September 30, 2008 increased by approximately $22.7 million from declines in the market value of its investment securities in the third quarter. Such declines, which are considered temporary, will be reflected as a reduction of stockholders’ equity.
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. For more information, please visit our website at www.navg.com.
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 results that we anticipate will be achieved, since results may differ materially because of known and unknown risks and uncertainties that 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 that may affect that business. Navigators undertakes no obligation to publicly update or revise any forward-looking statement.
The Navigators Group, Inc.
Frank McDonnell, 914-933-6270
Senior Vice President and Chief Financial Officer
fmcdonnell@navg.com
www.navg.com
