CORRECTING and REPLACING NYMAGIC, INC. Reports 2008 First Quarter Results

NEW YORK--(Business Wire)--
In Net investment (loss) income results table, investment expenses
for 2008 should read $(1.1) (sted $(1.18)). All figures are in
millions.

The corrected release reads:

NYMAGIC, INC. REPORTS 2008 FIRST QUARTER RESULTS

NYMAGIC, INC. (NYSE: NYM) reported today the results of
consolidated operations for the first quarter ended March 31, 2008.
The Company reported a net loss for the three months ended March 31,
2008 of $29.7 million, or $3.42 per share, compared with net earnings
of $7.5 million, or $.82 per diluted share, for the first quarter of
2007.

Net realized investment losses after taxes were $21.0 million or
$2.41 per share for the first quarter of 2008 as compared to net
realized investment gains of $172,000, or $.02 per diluted share, for
the first quarter of 2007. The realized investment losses in the first
quarter of 2008 were almost entirely attributable to the decline in
the current market value of "super senior" residential mortgage backed
securities held by the Company. These securities are rated AAA by S&P,
are collateralized by pools of "Alt A" mortgages, and receive priority
payments from these pools. "Alt A" mortgages are not considered
subprime mortgages. The Company expects to collect the full amount of
its investment if these securities are held to maturity, but current
conditions in the financial markets have led the Company to record
other-than-temporary declines in their current market value in its
financial statements. The Company continues to receive all interest
and principal payments due on these securities.

Net investment income (loss) amounted to $(13.0) million for the
first quarter of 2008 as compared to $11.9 million for the same period
of 2007. Investment income in the first quarter of 2008 reflects
investment losses of $3.0 million from limited partnerships and $11.9
million due to a decline in the market value of investments
categorized as trading securities. These trading securities included
municipal bonds, preferred stocks, commercial middle market debt,
hedged positions and exchange-traded funds.

Gross premiums written of $71.6 million and net premiums written
of $59.9 million for the first quarter of 2008 increased by 4% and
13%, respectively, from the same period of 2007. Gross and net
premiums written in the first quarter of 2008 reflected increases in
the excess workers' compensation and casualty lines contained within
the Other Liability segment.

The Company's loss ratio was 57.9% for the first quarter of 2008,
as compared with a loss ratio of 55.1% during the first quarter of
2007. Favorable loss reserve development amounted to $1.0 million and
$1.4 million during the first quarters of 2008 and 2007, respectively.
The increase in the loss ratio was largely related to a changing mix
of business, a large portion of which was due to increases in excess
workers' compensation insurance. The Company's combined ratio was
99.4% for the three months ended March 31, 2008 as compared with 97.8%
for the same period of 2007.

Total revenues for the first quarter of 2008 were $(301,000)
compared with $52.1 million for the same period of 2007. While net
premiums earned increased by $5.2 million to $44.9 million during the
first quarter, this was more than offset by declines in net investment
income of $24.9 million and realized investment losses of $32.5
million.

At March 31, 2008 the Company's total cash, investments and net
receivable for securities sold amounted to $634.0 million. The
investment portfolio at March 31, 2008 consisted of cash, short-term
investments and net receivable for securities sold of $111.0 million,
or 17.5%; fixed maturities and other debt investments of $245.9
million, or 38.8%, limited partnership hedge funds of $181.1 million,
or 28.6%; and preferred stocks and equity securities of $96.0 million,
or 15.1%. The Company's portfolio of "super senior" mortgage
securities was carried at $99.2 million as of March 31, 2008 and was
included within the fixed maturities total.

During the first quarter of 2008, the Company repurchased 20,300
shares of its common stock at an average price of $22.97.

Book value per share declined to $28.10 at March 31, 2008, from
book value per share of $31.56 at December 31, 2007.

George Kallop, President and Chief Executive Officer, in
commenting on the overall results for the first quarter said, "Our
insurance operations continued to perform quite well during the first
quarter of 2008. Net premiums written and net premiums earned
increased by 13% over the first quarter of 2007. At the same time our
loss ratio of 57.9% was well within acceptable limits. Although the
loss ratio is somewhat higher than last year, this is substantially
attributable to our growing book of excess workers' compensation
insurance. We were also pleased to announce the acquisition of a book
of professional liability business oriented to insurance brokers and
agents, and the formation of MMO Agencies. MMO Agencies has been
staffed with experienced industry veterans and will focus on
generating additional premium growth through a network of general
agents with binding authority subject to underwriting criteria
established and monitored by NYM.

"Regrettably, continued turmoil in the financial markets resulted
in significant declines in the market value of most investment assets
as recorded in the Company's financial statements. As a consequence,
the Company recorded substantial losses in investment income as well
as realized losses. It is important to point out, however, that the
Company still owns most of the securities affected by these
write-downs and if they recover in market value the Company will
benefit from any such recoveries. In addition, all of the Company's
fixed maturities continue to pay interest and dividends when due, and
the effective yield on these investments will increase substantially
due to the write down in carrying values. Further, the credit quality
of these assets remains solid. Our 'super senior' mortgage securities
are still rated AAA and are backed by subordination levels, currently
at 27-50%, our municipal bonds have ratings on average of AA without
regard to any insurance, our preferred stocks are rated on average
AA-, and our holdings in cash and short term investments are rated
AAA. Lastly, we remain comfortable with our overall position in hedge
funds, although culling of selective funds will continue as we monitor
their performance over time.

"While the first quarter financial results are disappointing, we
remain focused on building shareholder value over time."

NYMAGIC, INC. will hold a conference call on its first quarter
2008 financial results live on Tuesday, May 6, 2008 at 9:00 A.M. ET.
The call will last for up to one hour.

Investors and interested parties will have the opportunity to
listen to and join in the call by calling 800-374-0763 entering ID#
44418910 and registering with the operator. Please call no later than
10 minutes prior to the start of the call to register. A replay of the
conference call will be available for 30 days by dialing 800-642-1687
and entering ID# 44418910.

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 in New York and Chicago.

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 that 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.

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*T
NYMAGIC, INC.
TABLE OF RESULTS
(Unaudited)
(In thousands, except per share data)

Three Months Ended
March 31,
2008 2007
------------ ------------
Revenues:
--------------------------------------------
Net premiums earned $ 44,905 $ 39,742
Net investment (loss) income (13,017) 11,866
Net realized investment (losses) gains (32,248) 264
Commission and other income 59 229
---------- -----------

Total revenues (301) 52,101

Expenses:
--------------------------------------------
Net losses & loss adjustment expenses 26,021 21,891
Policy acquisition expenses 9,835 8,752
General & administrative expenses 8,766 8,228
Interest expense 1,677 1,674
---------- -----------

Total expenses 46,299 40,545
---------- -----------

(Loss) Income before income taxes (46,600) 11,556

Total income tax (benefit) expense (16,852) 4,037
----------- -----------

Net (loss) earnings ($29,748) $ 7,519
----------- -----------

(Loss) earnings per share:
Basic ($3.42) $ .85
----------- -----------
Diluted ($3.42) $ .82
----------- -----------

Weighted average shares outstanding:
Basic 8,707 8,862
Diluted 8,707 9,222

Balance sheet data: March 31, December 31,
--------------------------------------------
2008 2007
----------- ------------

Shareholders' equity $ 248,809 $ 279,446
Book value per share (1) $ 28.10 $ 31.56

(1) Calculated on a fully diluted basis.
*T

Supplementary information:

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*T
NYMAGIC Gross Premiums Written By Segment
----------------------------------------------------------------------
Three months ended March 31,
----------------------------------------------------------------------
2008 2007 Change
----------------------------------------------------------------------
(dollars in thousands)
Ocean marine $ 22,241 $ 25,493 (13)%
Inland marine/fire 3,568 3,597 (1)%
Other liability 45,774 39,465 16%
-------- -------- ---------
Subtotal 71,583 68,555 4%
Runoff lines (Aircraft) 45 19 NM
----------------------------------------------------------------------
Total $ 71,628 $ 68,574 4%
----------------------------------------------------------------------
*T

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*T
NYMAGIC Net Premiums Written By Segment
----------------------------------------------------------------------
Three months ended March 31,
----------------------------------------------------------------------
2008 2007 Change
----------------------------------------------------------------------
(dollars in thousands)
----------------------------------------------------------------------
Ocean marine $ 17,554 $ 18,187 (3)%
Inland marine/fire 1,241 1,277 (3)%
Other liability 41,044 33,471 23%
-------- -------- ---------
Subtotal 59,839 52,935 13%
Runoff lines (Aircraft) 78 27 NM
----------------------------------------------------------------------
Total $ 59,917 $ 52,962 13%
----------------------------------------------------------------------
*T

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NYMAGIC Net Premiums Earned By Segment
----------------------------------------------------------------------
Three months ended March 31,
----------------------------------------------------------------------

2008 2007 Change
----------------------------------------------------------------------
(dollars in thousands)
Ocean marine $ 17,823 $ 18,764 (5)%
Inland marine/fire 1,645 1,329 24%
Other liability 25,359 19,622 29%
--------- -------- ---------
Subtotal 44,827 39,715 13%
Runoff lines (Aircraft) 78 27 NM
----------------------------------------------------------------------
Total $ 44,905 $ 39,742 13%
----------------------------------------------------------------------
*T

Net investment (loss) income results:

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Three months ended March
31,
---------------------------------------------------------------------
2008 2007
---------------------------------------------------------------------
(in millions)
Fixed maturities, available for sale $ $2.0 $ 4.3
Fixed maturities, trading securities (11.9) 0.6
Short-term investments 1.0 1.8
Equity in earnings (loss) of limited
partnerships (3.0) 6.0
----------- -----------
Total investment (loss) income (11.9) 12.7
Investment expenses (1.1) (0.8)
---------------------------------------------------------------------
Net investment (loss) income $ (13.0) $ 11.9
---------------------------------------------------------------------
*T

NYMAGIC, INC.
George R. Trumbull / A. George Kallop, 212-551-0610
or
Richard Lewis Communications
Richard Lewis / Mary Kate Dubuss, 212-827-0020

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