CORRECTING and REPLACING Navigators Group Corrects Net Written Premium in Financial Results Release.Business Editors CORRECTION CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. ...by Navigators Group NEW YORK--(BUSINESS WIRE)--Aug. 5, 2003 BW5194-8/5, "Navigators' Net Income Up 66%" is corrected and replaced and should read as follows: NAVIGATORS' NET INCOME UP 66% The Navigators Group, Inc. (NAVG/NASDAQ) reported net income increased 66% for the three months ended June June: see month. 30, 2003 to $6,274,000 or $0.72 per share, compared to $3,774,000 or $0.43 per share reported for the same period in 2002. Included in these results were net realized capital gains of $0.06 per share and $0.01 per share for the three months ended June 30, 2003 and 2002, respectively. The combined loss and expense ratio for the second quarter of 2003 was 95.3%, compared to 98.9% for the same period in 2002. Total revenue increased 27% to $72,386,000 for the second quarter of 2003, compared to $56,920,000 for the same period during 2002. Gross written premium for the second quarter of 2003 was $141,192,000, an increase of 55% from the second quarter of 2002. Net written premium increased to $61,631,000, up 10%. Net investment income increased to $4,552,000, up 9%. Net income for the six month period ended June 30, 2003 was $11,108,000 or $1.27 per share, compared to $7,224,000 or $0.84 per share in 2002. Included in these results were net realized capital gains (losses) of $0.08 per share and $(0.01) per share for the six months ended June 30, 2003 and 2002, respectively. The combined loss and expense ratio for the first six months of 2003 was 95.9% compared to 98.1% for the same period in 2002. Total revenue increased 41% to $144,991,000 for the six months ended June 30, 2003 compared to $102,729,000 for the same period in 2002. Gross written premium for the first six months of 2003 was $315,894,000, an increase of 48% from the comparable period in 2002. Net written premium increased to $152,664,000, up 21%. Net investment income increased to $9,213,000, up 1%. Commenting on the results, Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. A. Galanski, Chief Executive Officer, stated, "Each of our active businesses generated an underwriting profit Underwriting profit is a term used in the insurance industry. It consists of the earned premium remaining after losses have been paid and administrative expenses have been deducted. It does not include any investment income earned on held premiums. , which is our primary objective. We continue to emphasize the importance of price adequacy over new business production and we are very encouraged by the level of rate increases attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. in the second quarter over all product lines. While rate increases were largest in the professional liability and California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). casualty classes, ocean marine pricing continues to show positive rate change both in our insurance companies and at Lloyd's Lloyd's, London insurance underwriting corporation of many separate syndicates; often called Lloyd's of London. Founded in the late 17th cent. by a group of merchants, shipowners, and insurance brokers at the coffeehouse of Edward Lloyd, the association is now ." "Navigators Marine & Energy Division had another strong quarter, with a relatively low level of loss activity and solid growth. Our Lloyd's operation, Syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism 1221, made a meaningful contribution to our net income." Galanski continued, "Navigators Pro further solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. its market presence and continues to attain significant rate increases along with new business levels consistent with our expectations. Navigators Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. achieved an underwriting profit for the quarter, executing its strategy of targeted rate increases while reducing policy count in its construction segment. Overall, the Company's cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses is very strong." The Navigators Group, Inc. is an international insurance holding company with insurance company operations, underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. management companies, and operations at Lloyd's of London Not to be confused with Lloyds Bank or Lloyd's Register. Lloyd's of London is a British insurance market. It serves as a meeting place where multiple financial backers or “members”, whether individuals (traditionally known as . Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , Navigators has offices in major insurance centers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and the United Kingdom. This press release may contain "forward looking statements" as defined in the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 Forms 10-K and 10-Q 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.
THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands, except book value and net income per share)
(All figures are on a GAAP basis)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
(Unaudited) (Unaudited)
Financial
Highlights 2003 2002 Change 2003 2002 Change
----------- ---- ---- ------ ---- ---- ------
Gross written
premium $141,192 $90,945 55% $315,894 $212,861 48%
Net written
premium 61,631 56,094 10% 152,664 126,443 21%
Revenues:
Net earned
premium 65,264 50,923 28% 131,578 90,772 45%
Commission
income 1,486 993 50% 2,725 2,094 30%
Net investment
income 4,552 4,162 9% 9,213 9,104 1%
Net realized
capital gains
(losses) 669 201 233% 887 (92) NM
Other income 415 641 -35% 588 851 -31%
--------- -------- --------- ---------
Total revenues 72,386 56,920 27% 144,991 102,729 41%
--------- -------- --------- ---------
Operating
expenses:
Net losses and loss
adjustment
expenses incurred 43,291 32,406 34% 87,331 56,189 55%
Commission
expense 8,876 10,328 -14% 19,503 17,986 8%
Other operating
expenses 12,237 8,983 36% 23,824 18,870 26%
Interest expense 87 145 -40% 184 305 -40%
--------- -------- --------- ---------
Total operating
expenses 64,491 51,862 24% 130,842 93,350 40%
--------- -------- --------- ---------
Income before
income taxes 7,895 5,058 56% 14,149 9,379 51%
--------- -------- --------- ---------
Income tax expense 1,621 1,284 26% 3,041 2,155 41%
--------- -------- --------- ---------
Net income $6,274 $3,774 66% $11,108 $7,224 54%
========= ======== ========= =========
Per Share Data
--------------
Net income per common
share:
Basic $0.74 $0.45 64% $1.31 $0.86 52%
Diluted $0.72 $0.43 67% $1.27 $0.84 51%
Average common shares
outstanding:
Basic 8,516 8,457 8,505 8,446
Diluted 8,757 8,677 8,741 8,617
Underwriting
Ratios
------------
Loss Ratio 66.3% 63.6% 66.4% 61.9%
Expense Ratio 29.0% 35.3% 29.5% 36.2%
--------- -------- --------- ---------
Combined Ratio 95.3% 98.9% 95.9% 98.1%
June 30, December 31,
Balance Sheet Data 2003 2002
------------------ --------- ---------
Stockholders'
equity $187,131 $171,275 9%
Book value per
share 21.98 20.18 9%
NM - not meaningful
Note: Certain amounts for the prior period have been reclassified to
conform to the presentation in the current period.
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