Exhibit 99.1

The Navigators Group, Inc.
CORPORATE NEWS

Navigators Reports First Quarter Results

New York — May 9, 2011 — The Navigators Group, Inc. (NASDAQ:NAVG) reported a net loss of $7.9 million, or $0.50 per share, for the three months ended March 31, 2011 compared to net income of $17.0 million, or $1.00 per diluted share, for the comparable period in 2010. Operating earnings ⁽¹⁾ were a deficit of $6.7 million, or $0.43 per share for the first quarter of 2011 compared to earnings of $13.1 million, or $0.77 per diluted share, for the comparable period in 2010.

Gross written premiums and net written premiums for the three months ended March 31, 2011 were $296.3 million and $193.1 million, respectively, an increase of 10% and 2%, respectively, from the comparable period in 2010.

The combined loss and expense ratio for the three months ended March 31, 2011 was 117.1%, compared to 99.1% for the comparable period in 2010. The decline in the pre-tax underwriting profit to a loss of $26.1 million was primarily due to:

	•		Large current accident year losses from a North Sea drilling operation and an onshore industrial site. The North Sea drilling operation losses resulted in an $8.9 million first quarter charge including $5 million of net loss and $3.9 million of reinstatement premiums. The onshore drilling site generated gross and net losses of $12.0 million and $2.4 million, respectively.
	•		Sliding scale commission adjustments of $2.6 million related to large loss activity that has reduced our ceding commission benefit on a large quota share treaty.
	•		An increase in our reinsurance reinstatement premium accrual by $7.5 million. This accrual was driven by the recognition of the effect of a shift in our marine reinsurance protections to an excess of loss program from a quota share program. As a result of this shift and the increased frequency of severity losses in recent periods, a greater portion of our IBNR was attributable to marine and energy losses that are or will be ceded to Marine Excess of Loss Reinsurance program and such cession will trigger additional reinstatement premiums.
	•		Adverse loss development in our Lloyd’s Professional Liability business of $4.2 million related mostly to Errors and Omissions (“E&O”) lines for underwriting years 2006 and 2007.

Navigators’ Chief Executive Officer Stan Galanski commented: “During the first quarter of 2011 the industry experienced an extraordinary level of natural catastrophe and large energy losses. While our losses reported to date from the Japanese earthquake have not been significant, we participated on two major industry losses in the energy sector that pushed our combined ratio above 100%. The increased frequency of large loss activity in both the onshore and offshore energy business, coupled with the industry’s property cat loss levels, highlights the need for underwriters to achieve rate increases in these areas. Our ocean marine business had a solid quarter and we are encouraged by the initial market reception of Navigators Re, which was the principal contributor to our premium growth in the quarter. We continue to take a cautious view of the U.S. D&O market, as rate levels continue to be suppressed to levels not reflective of the current litigation environment.”

6 International Drive		Rye Brook, NY 10573
TEL (914) 933-6000		FAX (914) 934-2355

News Release
May 9, 2011
Page 2

During the three months ended March 31, 2011, the Company repurchased 256,094 of its common stock for an aggregate purchase price of $13.1 million pursuant to its share repurchase program. The Company repurchased an additional 131,469 of its common stock for an aggregate purchase price of $6.8 million between April 1, 2011 and May 9, 2011 pursuant to its share repurchase program. Approximately $21.1 million remains available under the Company’s current share repurchase program which expires on December 31, 2011.

Net investment income for the three months ended March 31, 2011 was $17.4 million, which was a decrease of 3% from the comparable period in 2010. The annualized pre-tax investment yield, excluding net realized gains and losses and net other-than-temporary impairment losses recognized in earnings, was 3.3% for the three months ended March 31, 2011, compared to 3.6% for the comparable period in 2010. The effective tax rate on net investment income was 28.5% for the three months ended March 31, 2011, compared to 24.5% for the comparable period in 2010.

The Company’s investment portfolio mainly consists of fixed income securities with an average quality rating of “AA/Aa” as defined by Standard & Poor’s and Moody’s, respectively, and an average effective duration of 4.1 years at March 31, 2011. At March 31, 2011, net unrealized gains within our investment portfolio were $49.3 million, an increase of $0.2 million compared to December 31, 2010. There were $1.6 million of net realized losses and other-than-temporary impairment losses recognized in earnings for the three months ended March 31, 2011.

Consolidated cash flow from operations for the three months ended March 31, 2011 was $13.3 million, compared to $4.1 million for the comparable period in 2010.

Stockholders’ equity was $815.2 million, or $52.29 per share, at March 31, 2011 compared to $829.4 million, or $52.68 per share, at December 31, 2010. The statutory surplus of Navigators Insurance Company was $684.0 million at March 31, 2011 compared to $686.9 million at December 31, 2010.

(1)

Operating earnings, or net income excluding after-tax net realized gains (losses) and net other-than-temporary impairment losses recognized in earnings, is a non-GAAP financial measure that is a common performance measurement for insurance companies. We believe this presentation enhances the understanding of our results of operations by highlighting the underlying profitability of our insurance business.

The Company will hold a conference call on Tuesday, May 10, 2011 starting at 8:30 a.m. ET to discuss the 2011 first quarter results. The call will be available via live webcast on Navigators’ website (www.navg.com).

To participate by telephone, the domestic dial-in number is (800) 850-2903 and the international dial-in is (224) 357-2399. Participants may connect to the webcast at:

http://investor.shareholder.com/navg/eventdetail.cfm?eventid=95483

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, Navigators has offices in major insurance centers in the United States, the United Kingdom and Continental Europe.

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May 9, 2011
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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. Forward-looking statements are derived from information that we currently have and assumptions that we make. 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 reports on 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.

Contact:		Francis W. McDonnell Senior Vice President and Chief Financial Officer (914) 933-6270 fmcdonnell@navg.com www.navg.com

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Financial Highlights
($ in thousands, except per share data)
(unaudited)

		Three Months Ended
		March 31,
Results of Operations		2011				2010				Change
Gross written premiums		$	296,283			$	270,145				10	%
Net written premiums			193,076				189,317				2	%
Revenues:
Net earned premiums			152,478				164,069				-7	%
Net investment income			17,384				17,972				-3	%
Total other-than-temporary impairment losses			(263	)			(251	)			5	%
Portion of loss recognized in other comprehensive income (before tax)			22				170				-87	%
Net other-than-temporary impairment losses recognized in earnings			(241	)			(81	)		NM
Net realized gains (losses)			(1,389	)			6,113				-123	%
Other income			991				1,070				-7	%
Total revenues			169,223				189,143				-11	%
Expenses:
Net losses and loss adjustment expenses			116,788				103,807				13	%
Commission expenses			26,200				25,316				3	%
Other operating expenses			36,575				34,586				6	%
Interest expense			2,046				2,044				0	%
Total expenses			181,609				165,753				10	%
Income before income taxes			(12,386	)			23,390				-153	%
Income tax expense (benefit)			(4,493	)			6,345				-171	%
Net income (loss)		$	(7,893	)		$	17,045				-146	%
Per Share Data
Net income per common share:
Basic		$	(0.50	)		$	1.02				-149	%
Diluted		$	(0.50	)		$	1.00				-150	%
Average common shares outstanding:
Basic			15,739				16,641
Diluted			15,739				16,979
Underwriting Ratios
Loss Ratio			76.6	%			63.3	%
Expense Ratio			40.5	%			35.8	%
Combined Ratio			117.1	%			99.1	%

		March 31,				Dec. 31,
Balance Sheet Data		2011				2010
Stockholders’ equity		$	815,172			$	829,354				-2	%
Book value per share		$	52.29			$	52.68				-1	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($ in thousands, except share data)

		March 31,				December 31,
		2011				2010
		(unaudited)
ASSETS
Investments and cash:
Fixed maturities, available-for-sale, at fair value (amortized cost: 2011, $1,821,971; 2010, $1,855,598)		$	1,844,978			$	1,882,245
Equity securities, available-for-sale, at fair value (cost: 2011, $64,586; 2010, $64,793)			90,912				87,258
Short-term investments, at cost which approximates fair value			169,510				153,057
Cash			39,284				31,768
Total investments and cash			2,144,684				2,154,328
Premiums receivable			251,577				188,368
Prepaid reinsurance premiums			163,564				156,869
Reinsurance recoverable on paid losses			57,920				56,658
Reinsurance recoverable on unpaid losses and loss adjustment expenses			865,212				843,296
Deferred policy acquisition costs			63,992				55,201
Accrued investment income			16,055				15,590
Goodwill and other intangible assets			7,009				6,925
Current income tax receivable, net			6,205				1,054
Deferred income tax, net			15,852				15,141
Other assets			45,040				38,029
Total assets		$	3,637,110			$	3,531,459
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserves for losses and loss adjustment expenses		$	2,034,263			$	1,985,838
Unearned premiums			511,294				463,515
Reinsurance balances payable			131,803				105,904
Senior notes			114,171				114,138
Accounts payable and other liabilities			30,407				32,710
Total liabilities			2,821,938				2,702,105
Stockholders’ equity:
Preferred stock, $.10 par value, authorized 1,000,000 shares, none issued			—				—
Common stock, $.10 par value, authorized 50,000,000 shares, issued 17,377,022 shares for 2011 and 17,274,440 shares for 2010			1,829				1,728
Additional paid-in capital			318,281				312,588
Treasury stock, at cost (1,788,367 shares for 2011 and 1,532,273 shares for 2010)			(77,987	)			(64,935	)
Retained earnings			531,619				539,512
Accumulated other comprehensive income			41,430				40,461
Total stockholders’ equity			815,172				829,354
Total liabilities and stockholders’ equity		$	3,637,110			$	3,531,459

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Comparative Premium Data
($ in thousands)

		Three Months
		2011				2010				Change
Gross Written Premiums:
Insurance Companies:
Marine		$	70,348			$	67,526				4	%
Property Casualty			112,888				79,346				42	%
Professional Liability			23,540				30,966				-24	%
			206,776				177,838				16	%
Lloyd’s Operations:
Marine			61,155				59,141				3	%
Property Casualty			19,302				19,959				-3	%
Professional Liability			9,050				13,207				-31	%
			89,507				92,307				-3	%
Total		$	296,283			$	270,145				10	%

		Three Months
		2011				2010				Change
Net Written Premiums:
Insurance Companies:
Marine		$	54,218			$	51,003				6	%
Property Casualty			62,907				49,697				27	%
Professional Liability			13,615				20,640				-34	%
			130,740				121,340				8	%
Lloyd’s Operations:
Marine			49,671				49,642				0	%
Property Casualty			8,386				11,711				-28	%
Professional Liability			4,279				6,624				-35	%
			62,336				67,977				-8	%
Total		$	193,076			$	189,317				2	%

		Three Months
		2011				2010				Change
Net Earned Premiums:
Insurance Companies:
Marine		$	40,559			$	41,094				-1	%
Property Casualty			42,935				51,081				-16	%
Professional Liability			15,326				19,036				-19	%
			98,820				111,211				-11	%
Lloyd’s Operations:
Marine			36,978				35,560				4	%
Property Casualty			11,894				11,915				0	%
Professional Liability			4,786				5,383				-11	%
			53,658				52,858				2	%
Total		$	152,478			$	164,069				-7	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
March 31, 2011

($ in thousands)

		Insurance				Lloyd’s
		Companies				Operations				Corporate (1)				Total
Gross written premiums		$	206,776			$	89,507			$	—			$	296,283
Net written premiums			130,740				62,336				—				193,076
Net earned premiums			98,820				53,658				—				152,478
Net losses and loss adjustment expenses			(74,797	)			(41,991	)			—				(116,788	)
Commission expenses			(12,340	)			(14,407	)			547				(26,200	)
Other operating expenses			(26,799	)			(9,776	)			—				(36,575	)
Other income (expense)			1,691				(153	)			(547	)			991
Underwriting profit (loss)			(13,425	)			(12,669	)			0				(26,094	)
Net investment income			14,983				2,255				146				17,384
Net realized gains (losses)			(245	)			(1,385	)			0				(1,630	)
Interest expense			—				—				(2,046	)			(2,046	)
Income (loss) before income taxes			1,313				(11,799	)			(1,900	)			(12,386	)
Income tax expense (benefit)			228				(4,056	)			(665	)			(4,493	)
Net income (loss)		$	1,085			$	(7,743	)		$	(1,235	)		$	(7,893	)
Losses and loss adjustment expenses ratio			75.7	%			78.3	%							76.6	%
Commission expense ratio			12.5	%			26.8	%							17.2	%
Other operating expense ratio (2)			25.4	%			18.5	%							23.3	%
Combined ratio			113.6	%			123.6	%							117.1	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Segment Information
Three Months Ended
March 31, 2010

($ in thousands)

		Insurance				Lloyd’s
		Companies				Operations				Corporate (1)				Total
Gross written premiums		$	177,838			$	92,307			$	—			$	270,145
Net written premiums			121,340				67,977				—				189,317
Net earned premiums			111,211				52,858				—				164,069
Net losses and loss adjustment expenses			(68,403	)			(35,404	)			—				(103,807	)
Commission expenses			(14,362	)			(10,966	)			12				(25,316	)
Other operating expenses			(27,353	)			(7,243	)			—				(34,596	)
Other income (expense)			(977	)			2,069				(12	)			1,080
Underwriting profit			116				1,314				—				1,430
Net investment income			15,748				2,069				155				17,972
Net realized gains (losses)			5,205				713				114				6,032
Interest expense			—				—				(2,044	)			(2,044	)
Income (loss) before income taxes			21,069				4,096				(1,775	)			23,390
Income tax expense (benefit)			5,463				1,503				(621	)			6,345
Net income (loss)		$	15,606			$	2,593			$	(1,154	)		$	17,045
Losses and loss adjustment expenses ratio			61.5	%			67.0	%							63.3	%
Commission expense ratio			12.9	%			20.7	%							15.4	%
Other operating expense ratio (2)			25.5	%			9.8	%							20.4	%
Combined ratio			99.9	%			97.5	%							99.1	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Underwriting Results
($ in thousands)

		Three Months Ended March 31, 2011
		Net				Losses
		Earned				and LAE				Underwriting				Underwriting				Loss				Expense				Combined
		Premiums				Incurred				Expenses				Profit (Loss)				Ratio				Ratio				Ratio
Insurance Companies:
Marine		$	40,559			$	27,998			$	13,798			$	(1,237	)			69.0	%			34.0	%			103.0	%
Property Casualty			42,935				35,934				17,598				(10,597	)			83.7	%			41.0	%			124.7	%
Professional Liability			15,326				10,865				6,052				(1,591	)			70.9	%			39.5	%			110.4	%
			98,820				74,797				37,448				(13,425	)			75.7	%			37.9	%			113.6	%
Lloyd’s Operations			53,658				41,991				24,336				(12,669	)			78.3	%			45.3	%			123.6	%
Total		$	152,478			$	116,788			$	61,784			$	(26,094	)			76.6	%			40.5	%			117.1	%

		Three Months Ended March 31, 2010
		Net				Losses
		Earned				and LAE				Underwriting				Underwriting				Loss				Expense				Combined
		Premiums				Incurred				Expenses				Profit (Loss)				Ratio				Ratio				Ratio
Insurance Companies:
Marine		$	41,094			$	26,133			$	14,928			$	33				63.6	%			36.3	%			99.9	%
Property Casualty			51,081				32,126				20,316				(1,361	)			62.9	%			39.8	%			102.7	%
Professional Liability			19,036				10,144				7,448				1,444				53.3	%			39.1	%			92.4	%
			111,211				68,403				42,692				116				61.5	%			38.4	%			99.9	%
Lloyd’s Operations			52,858				35,404				16,140				1,314				67.0	%			30.5	%			97.5	%
Total		$	164,069			$	103,807			$	58,832			$	1,430				63.3	%			35.8	%			99.1	%

		Amounts								Loss Ratio
		Mar. 31,				Mar. 31,				Mar. 31,				Mar. 31,
		2011				2010				2011				2010
Net Incurred Loss Activity
For the Three Months Ended:
Insurance Companies:
Loss and LAE payments		$	66,693			$	72,673				67.5	%			65.3	%
Change in reserves			8,104				(4,270	)			8.2	%			-3.8	%
Net incurred loss and LAE			74,797				68,403				75.7	%			61.5	%
Lloyd’s Operations:
Loss and LAE payments			23,587				26,222				44.0	%			49.6	%
Change in reserves			18,404				9,182				34.3	%			17.4	%
Net incurred loss and LAE			41,991				35,404				78.3	%			67.0	%
Total Loss and LAE payments			90,280				98,895				59.2	%			60.3	%
Change in reserves			26,508				4,912				17.4	%			3.0	%
Net incurred loss and LAE		$	116,788			$	103,807				76.6	%			63.3	%

		Amounts								Loss Ratio Impact
		Mar. 31,				Mar. 31,				Mar. 31,				Mar. 31,
		2011				2010				2011				2010
Impact of Prior Years Reserves Favorable / (Unfavorable) Development
For the Three Months Ended:
Insurance Companies		$	(1,222	)		$	653				-1.2	%			0.6	%
Lloyd’s Operations			(2,211	)			593				-4.1	%			1.1	%
Total		$	(3,433	)		$	1,246				-2.3	%			0.8	%

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Net Loss Data
($ in thousands)

		Case				IBNR
		Reserves				Reserves				Total
Net Loss Reserves, March 31, 2011:
Insurance Companies:
Marine		$	106,894			$	115,173			$	222,067
Property Casualty			159,135				311,470				470,605
Professional Liability			56,372				67,487				123,859
Total Insurance Companies			322,401				494,130				816,531
Lloyd’s Operations:
Marine			110,905				120,781				231,686
Property Casualty			33,613				31,707				65,320
Professional Liability			10,985				44,529				55,514
Total Lloyd’s Operations			155,503				197,017				352,520
Total Net Loss Reserves		$	477,904			$	691,147			$	1,169,051

		Case				IBNR
		Reserves				Reserves				Total
Net Loss Reserves, December 31, 2010:
Insurance Companies:
Marine		$	107,147			$	109,361			$	216,508
Property Casualty			158,740				308,613				467,353
Professional Liability			46,096				78,469				124,565
Total Insurance Companies			311,983				496,443				808,426
Lloyd’s Operations:
Marine			111,914				112,708				224,622
Property Casualty			30,327				29,792				60,119
Professional Liability			9,904				39,471				49,375
Total Lloyd’s Operations			152,145				181,971				334,116
Total Net Loss Reserves		$	464,128			$	678,414			$	1,142,542

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Investment Data
March 31, 2011
($ in thousands)

At March 31, 2011, the average quality of the investment portfolio as rated by S&P and Moody’s was AA/Aa with an average duration of 4.1 years. The Company## does not own any collateralized debt obligations (CDO’s), collateralized loan obligations (CLO’s) or asset backed commercial paper.

At March 31, 2011, the Company owned two asset-backed securities approximating $0.9 million with subprime mortgage exposures. The securities have an effective maturity of 5.4 years. In addition, the Company owned a total of seven collateralized mortgage obligations and asset-backed securities approximating $2.4 million classified as Alt-A which is a credit category between prime and subprime. They have an effective maturity of 6.0 years. Such subprime and Alt-A categories are as defined by S&P. The Company is receiving principal and/or interest payments on all these securities and believes such amounts are fully collectible.

The following table sets forth our cash and investments at March 31, 2011:

						Gross				Gross				Cost or				OTTI
		Fair				Unrealized				Unrealized				Amortized				Recognized
March 31, 2011		Value				Gains				(Losses)				Cost				in OCI
		($ in thousands)
Fixed maturities:
U.S. Government Treasury bonds, agency bonds and foreign government bonds		$	288,734			$	4,475			$	(2,839	)		$	287,098			$	—
States, municipalities and political subdivisions			373,352				10,312				(2,915	)			365,955				—
Mortgage- and asset-backed securities:
Agency mortgage-backed securities			359,610				9,254				(3,430	)			353,786				—
Residential mortgage obligations			21,235				77				(2,051	)			23,209				(1,260	)
Asset-backed securities			42,914				230				(226	)			42,910				—
Commercial mortgage-backed securities			207,018				4,896				(1,991	)			204,113				—
Subtotal			630,777				14,457				(7,698	)			624,018				(1,260	)
Corporate bonds			552,115				13,718				(6,503	)			544,900				—
Total fixed maturities			1,844,978				42,962				(19,955	)			1,821,971				(1,260	)
Equity securities — common stocks			90,912				26,366				(40	)			64,586				—
Cash			39,284				—				—				39,284				—
Short-term investments			169,510				—				—				169,510				—
Total		$	2,144,684			$	69,328			$	(19,995	)		$	2,095,351			$	(1,260	)

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THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES
Investment Data
March 31, 2011
($ in thousands)

The following tables set forth our agency mortgage-backed securities and residential mortgage obligations, categorized by those issued by GNMA, FNMA and FHLMC and the quality category (prime, Alt-A and subprime) for all other such investments at March 31, 2011:

						Gross				Gross				Cost or
		Fair				Unrealized				Unrealized				Amortized
		Value				Gains				(Losses)				Cost
Agency mortgage-backed securities:
GNMA		$	125,351			$	3,155			$	(1,202	)		$	123,398
FNMA			189,807				4,978				(1,663	)			186,492
FHLMC			44,452				1,121				(565	)			43,896
Total		$	359,610			$	9,254			$	(3,430	)		$	353,786

						Gross				Gross				Cost or
		Fair				Unrealized				Unrealized				Amortized
		Value				Gains				(Losses)				Cost
Residential mortgage obligations:
Prime		$	16,214			$	77			$	(1,661	)		$	17,798
Alt-A			2,390				—				(373	)			2,763
Subprime			—				—				—				—
Non-US RMBS			2,631				—				(17	)			2,648
Total		$	21,235			$	77			$	(2,051	)		$	23,209