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Exhibit 99.1

|North Pointe Holdings Corporation



Investment Policy and Guidelines




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Investment Philosophy

Insurance and investment risk are inextricably linked. Consequently, the assumption of risk in either area has
significant impact on the company's ability to assume risk in the other.  It is imperative, therefore, that the
investment policy provide a framework to manage and adjust investment portfolio risk profiles to accommodate
present and future corporate insurance risk preferences.

Investment Policy

The company will manage its total investments so that at all times there are fixed income securities which are
adequate in amount and duration to meet the cash requirements of current operations as well as longer term
liabilities.  To the extent that there are funds available for investment beyond these requirements, the investment
objective for such funds will be to aim for the highest possible levels of book yield/net investment income, while
maximize after-tax total return within a prudent level of risk, taking into account the potential impact on the
volatility of reported earnings and reserves.

Investment Objectives

 Company's assets shall be invested to achieve the following objectives:



   Meet insurance regulatory requirements with respect to investments under applicable


    insurance laws.



   The portfolio must ensure the preservation and enhancement of invested capital and insurance surplus



   Maintain an appropriate level of liquidity to satisfy the cash requirements of current

    operations and longer term obligations.



   Adjust investment risk to offset or complement insurance risk based on total enterprise

    risk tolerance.



   Subject to the foregoing objectives and specific guidelines set forth below, realize the

    highest possible levels of book yield/investment income while generating competitive after-tax total

    rates of return.

Investment Policy
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|Portfolio Characteristics

  The duration neutral position (target) is derived in the context of an Enterprise Based Asset AllocationSM  reflecting

    return/risk opportunities from differing investment strategies and insurance underwriting activities and the insurer's

    expressed capacity for risk.



   The duration target is to be within +/- 20% of the established benchmark.



   Average portfolio credit quality will be A/A2 or better.



   Both federal income and state premium taxes will be considered in determining asset allocation.



   Fixed Income Investments shall be BBB/Baa2 or better at the time of purchase.  Maximum exposure to Triple-B

    securities will be 20% of invested assets.



   Direct investment in real estate, mortgages, and private placements are prohibited.



   Any bonds that have unrealized losses of more than 5% will require approval and documentation prior to disposition.

    Other than temporary impairments (OTTI) will be considered prior to realizing losses in securities. The investment

    manager will communicate cumulative realized losses/gains if they exceed $50,000 in any individual quarter.



   Inherited securities shall be exempt from guidelines but will be reviewed quarterly if deficiencies exist.

Permitted Investments

(Based on % of book value)      Min      Max

Cash                  0      100

Governments (1)             0        50

Agencies               0        50

Corporates           0        60

MBS                    0        30

CMO                    0        20

ABS (Includes CMBS)            0        30

MBS/CMO/ABS                 0        50

Municipals (based on company profitability)         0        50

Preferreds               0        20

Converts/Equity           0        20

Foreign (2)               0        10

144A securities           0        10

(1)  U.S. Treasury and other obligations with full faith and credit

(2) U.S. Pay only

Investment Policy
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Diversification

Performance Benchmark

Limitation on the amount of bonds owned of any one issuer (except governments and agencies) is as
follows by portfolio:



Rating Agency/                       % of Admitted Assets        % of Invested Assets

       NAIC                                       Limit Per Issuer             Limit By Rating



      AAA/1                                    5%                      None



      AA/1                                    4%                     None



      A/1                                    3%                      35%



      BBB/2             2%                      20%



      Lower than BBB/2                               .5%                        5%





      Other (%of Admitted Assets):



      Municipal maximum per state                     15%

      Corporate maximum per industry

   Financial      50%

   Utility      30%

   Industrial      30%

      Preferred issuer exposure                                           5%

      Equity issuer exposure                                           3%



      Minimum issue size                                    $100 million

To be developed through an Enterprise Based Asset AllocationSM and will be reviewed annually.

Investment Policy
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|Glossary

Duration

Quoted in years, duration measures the sensitivity of a bond's price to changes in interest rates.  It is the approximate
percentage change in price (stated in years) for a 100 basis point change in yield.  Duration is the weighted average
term to maturity of the security's cash flows.  The weights are the present value of the cash flows as a percent of the
present value of all cash flows.  The duration is shorter than the stated term to maturity on all securities except zero
coupon bonds, in which case they are equal.  The greater the duration of a bond, the greater its percentage volatility.



Fixed Income Investments

Examples of fixed income investments include government securities, corporates, municipal bonds, other structured
securities (OSS includes asset backed securities; nonresidential mortgages, or CMBS; and other securitized instruments
such as collateralized loan obligations or CLOs; or collateralized bond obligations, or CBOs), mortgage-backed
securities (MBS) and collateralized mortgage obligations (CMOs).



Rating System:



Fixed Income

Investments

NAIC Class   Description   Moody's   Standard & Poor's



     1*   Highest Quality   Aaa;Aa 1,2,3; A 1,2,3   AAA, AA+, AA, AA-, A+, A, A-

     2*   High Quality   Baa 1,2,3   BBB+, BBB, BBB-

     3   Medium Quality   Ba 1,2,3   BB+, BB, BB-

     4   Low Quality   B 1,2,3,   B+, B, B-

     5   Lowest Quality   Caa 1,2,3; Ca, C   CCC+, CCC, CCC-, CC, C

     6   In or near default   Caa 1,2,3; Ca, C   C, D





Commercial Paper

NAIC Class   Description   Moody's   Standard & Poor's



     1*   Highest Quality   P-1      A1+, A-1



*Investment Grade Quality

Investment Policy
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