Credit And Debt Ratings

The Financial strength rating of Navigator Group Inc. has been affirmed as "A". With the AM Best upgrading Navigators Insurance Company's ratings, it is a boost to its status of a global provider of insurance. A.M. Best is the world's most authoritative insurance rating and information source. Established in 1899 it is the world's oldest company in credit rating. The rating of A is an excellent indication of its Financial Strength.

The rating for ICR-Issuer credit Rating is "a+" for the Navigator group that comprises of the NIC and its wholly owned subsidiary. The rating for ICR for the Navigators group Inc is upgraded to "bbb+". The debt ratings has been upgraded to "bbb+" on the $125 million comprising 7% senior unsecured notes that are due 2016. On preferred securities the rating is "bbb-". On subordinated notes the rating is "bbb". The rating on senior unsecured notes under shelf registration is "bbb+". All the ratings on the Navigator group provide an outlook of stability for the navigator group which owns the NIC insurance company.

The NIC is rapidly growing in relatively new lines of business. Recent reviews show its elevated dependence on reinsurance. This concern is offset by the explicit support of the holding company. The Parent company has a 19% debt-to-capital ratio, coverage ratios exceeds A. M. Best's requirement for current rating levels. The outlook is also positive with an anticipated strong capitalization and earning performance. This is due to the conservative approach to underwriting and claims management.