NYMAGIC, INC. Provides Update on Investments and Operations

During August, the Company incurred additional realized and unrealized investment losses of approximately $7 million on its preferred stocks, exchange traded funds and mortgage backed securities. As of September 1, 2008, the Company had sold all of its FNMA and FRE preferred stock and all of its exchange-traded funds. The Company continues to receive monthly principal reductions arising from prepayments of the mortgages underlying its mortgage backed securities, which have recently been in the range of $500,000 to $1 million per month. Delinquency rates among the mortgages underlying the Company's mortgage backed securities increased from a range of 7.3% to 28.5% as of July 1, 2008 to a range of 8.3% to 29.3% as of September 1, 2008. Delinquency rates are not the same as loss rates, but are an indication of the potential for some degree of loss in future periods. The Company has not received updates on subordination levels among the mortgages underlying its mortgaged backed securities as of this date; but as of July 1, 2008, those subordination levels ranged from 27% to 51%, and in each case, they were substantially in excess of pool delinquency rates as of that date. As of September 1, 2008, the fair value of the Company's mortgage backed securities was $82.9 million, which is approximately 62% of original cost.

Based on modeling provided by its reinsurance intermediary, the Company believes that net losses from itsGulf of Mexico platform and drilling vessel exposures attributable to Hurricane Gustav, if any, may be in the order of magnitude of $1 million. The Company noted, however, that it is too early to make any definitive pronouncement about such losses.

The Company also reported that since June 30, 2008, it had repurchased approximately 140,000 shares of its Common Stock, $1 par value, at an average price of approximately $19.25 per share.

NYMAGIC, INC. is an insurance holding company whose property and casualty insurance subsidiaries specialize in writing ocean marine, inland marine and non-marine liability insurance, and whose agency subsidiaries specialize in establishing markets for such business. The Company maintains offices inNew York andChicago.

This report contains certain forward-looking statements concerning the Company's operations, economic performance and financial condition, including, in particular, the likelihood of the Company's success in developing and expanding its business. Any forward-looking statements concerning the Company's operations, economic performance and financial condition contained herein, including statements related to the outlook for the Company's performance in 2008 and beyond, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon a number of assumptions and estimates which inherently are subject to uncertainties and contingencies, many of which are beyond the control of the Company. Some of these assumptions may not materialize and unanticipated events may occur which could cause actual results to differ materially from such statements. These include, but are not limited to, the cyclical nature of the insurance and reinsurance industry, premium rates, investment results and risk assessments, the estimation of loss reserves and loss reserve development, uncertainties associated with asbestos and environmental claims, including difficulties with assessing latent injuries and the impact of litigation settlements, bankruptcies and potential legislation, the uncertainty surrounding the loss amounts related to the attacks of September 11, 2001, and hurricanes Katrina and Rita, the occurrence and effects of wars and acts of terrorism, net loss retention, the effect of competition, the ability to collect reinsurance receivables and the timing of such collections, the availability and cost of reinsurance, the possibility that the outcome of any litigation or arbitration proceeding is unfavorable, the ability to pay dividends, regulatory changes, changes in the ratings assigned to the Company by rating agencies, failure to retain key personnel, the possibility that our relationship with Mariner Partners, Inc. could terminate or change, and the fact that ownership of our common stock is concentrated among a few major stockholders and is subject to the voting agreement, as well as assumptions underlying any of the foregoing and are generally expressed with words such as "intends," "intend," "intended," "believes," "estimates," "expects," "anticipates," "plans," "projects," "forecasts," "goals," "could have," "may have" and similar expressions. These and other risks could cause actual results for the 2008 year and beyond to differ materially from those expressed in any forward-looking statements made. The Company undertakes no obligation to update publicly or revise any forward-looking statements made.

    CONTACT:
    NYMAGIC, INC.
    A. George Kallop, 212-551-0610
           or
    Richard Lewis Communications, Inc.
    212-827-0020
    Cecelia Heer
    cheer@rlcinc.com
    or Gregory Tiberend
    gtiberend@rlcinc.com

SOURCE NYMAGIC, INC.

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Copyright © 2008, NewsBlaze, Daily News

Tags: ,INS,MAR,ERP,NY-NYM-Update-Ops-Inv

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