793547--2/24/2009--NAVIGATORS_GROUP

related topics

{loss, insurance, financial}

{condition, economic, financial}

{capital, credit, financial}

{acquisition, growth, future}

{product, market, service}

{debt, indebtedness, cash}

{personnel, key, retain}

{regulation, government, change}

Our business is concentrated in marine and energy, general liability and professional liability insurance, and if market conditions change adversely, or we experience large losses in these lines, it could have a material adverse effect on our business. We are exposed to cyclicality in our business that may cause material fluctuations in our results. We may not be successful in developing our new specialty lines which could cause us to experience losses. We may be unable to manage effectively our rapid growth in our lines of business, which may adversely affect our results. We may incur additional losses if our loss reserves are insufficient. In addition to loss reserves, preparation of our financial statements requires us to make many estimates and judgments. We may not have access to adequate reinsurance to protect us against losses. Our reinsurers, including the other participants in the marine pool, may not pay on losses in a timely fashion, or at all, which may increase our costs. Intense competition for our products could harm our ability to maintain or increase our profitability and premium volume. We may be unable to attract and retain qualified employees. Increases in interest rates may cause us to experience losses. Our investment portfolio is subject to certain risks that could adversely affect our results of operations and/or financial condition. We are exposed to significant capital market risks related to changes in interest rates, credit spreads, equity prices and foreign exchange rates which may adversely affect our results of operations, financial condition or cash flows. Capital may not be available in the future, or available on unfavorable terms. A downgrade in our ratings could adversely impact the competitive positions of our operating businesses. Continued or increased premium levies by Lloyd s for the Lloyd s Central Fund and cash calls for trust fund deposits or a significant downgrade of Lloyd s A.M. Best rating could materially and adversely affect us. Our businesses are heavily regulated, and changes in regulation may reduce our profitability and limit our growth. The inability of our subsidiaries to pay dividends to us in sufficient amounts would harm our ability to meet our obligations. Catastrophe losses could materially reduce our profitability.

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793547--2/24/2009--NAVIGATORS_GROUP_INC