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AT THE COMPANY:
    
    AT FINANCIAL RELATIONS BOARD:Brian J. Roney
    
    Leslie Loyet
    
    Tim GraceSenior Vice President-Finance
    
    General Inquiries
    
    Media InquiriesTelephone: (248) 358-1171
    
    (312) 640-6672
    
    (312) 640-6667E-mail: invrelations@npte.com
 FOR IMMEDIATE RELEASE
THURSDAY, MAY 11, 2006
 NORTH POINTE HOLDINGS CORPORATION REPORTS
FIRST QUARTER 2006 RESULTS;
Impacts of Increased Reinsurance Costs and Losses from Midwest Storm Activity
 
    
    Gross premiums written of $45.6 million in the first quarter of 2006 vs. $45.8 million a
year ago. Commercial lines increased 13% in the quarter, while Personal lines declined 10%
compared with the prior year period.
    
    Net premiums earned of $20.2 million in the first quarter of 2006 vs. $22.1 million in
the first quarter of 2005. Compared with the previous year, net premiums earned for
Personal lines declined 30%, while Commercial lines increased slightly.
    
    First quarter loss ratio of 46.0% vs. 40.4% in 2005; contributing factors included
higher ceded premiums and increased losses in Midwest homeowners due to storms.
    
    First quarter net income per diluted share of $0.18 vs. $0.52 in the first quarter of
2005.
    
    Successful issuance of 30-year trust preferred securities.
    
    Cash and investments of $171.5 million; book value of $9.17 per share.
 SOUTHFIELD, MI  May 11, 2006  North Pointe Holdings Corporation (Nasdaq: NPTE)
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North Pointe Holding Corporation
Add 1
  First Quarter 2006 Highlights
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North Pointe Holdings Corporation
Add 2
 Conference Call Details
 www.npte.com
  About North Pointe Holdings Corporation
  Safe Harbor Statement
 Statements in this release that are forward-looking statements are based on current expectations
and assumptions that are subject to risks and uncertainties. Actual results could differ
materially because of factors such as: North Pointe pricing accurately the risks it underwrites;
the establishment of adequate loss and loss adjustment expense reserves; retention and recruiting
of independent agents; failure to pay claims accurately; risks associated with high concentration
of North Pointes business in certain geographic markets; inability to implement North Pointes
growth strategies; possible assessments for guaranty funds, other insurance-related assessments and
mandatory reinsurance arrangements and North Pointes ability to recover such assessments through
future surcharges or other rate changes; the occurrence of severe weather conditions and other
catastrophes; the cyclical and seasonal nature of the industries within which North Pointe
operates; intense competition with other insurance companies; the potential loss of key personnel;
North Pointes ability to obtain and retain trade association endorsements; performance of North
Pointes various operating subsidiaries; restrictions that may limit the ability of North Pointes
subsidiaries to pay dividends to North Pointe; existing and future regulations by the local, state
and federal governments; the compliance of subsidiaries with minimum capital and surplus
requirements; ratings of North Pointes insurance company subsidiaries by A.M. Best; the
availability and pricing of reinsurance; the potential for non-payment or delay in payment by
reinsurers; the outcome of current industry investigations; potential regulation limiting the use
of undisclosed contingent commission arrangements with independent agents; adverse market
conditions that could negatively impact North Pointes investment portfolio; reliance on
information technology and telecommunication systems; and managements ability to effectively
manage a public company.
 To learn more about North Pointe Holdings Corporation, please visit www.npte.com
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North Pointe Holdings Corporation
Add 3
 North Pointe Holdings Corporation and Subsidiaries
Results of Operations for the
Three Months Ended March 31, 2006 and 2005
 2006
    
    
    2005(Dollars in thousands)Gross premiums written:Commercial lines
    
    $
    20,991
    
    
    $
    18,622Personal lines
    
    
    24,577
    
    
    
    27,199Total gross premiums written
    
    
    45,568
    
    
    
    45,821Net premiums written:Commercial lines
    
    
    15,675
    
    
    
    15,685Personal lines
    
    
    21,481
    
    
    
    25,981Total net premiums written
    
    
    37,156
    
    
    
    41,666Revenues:Net premiums earned:Commercial lines
    
    
    15,456
    
    
    
    15,330Personal lines
    
    
    4,735
    
    
    
    6,805Total net premiums earned
    
    
    20,191
    
    
    
    22,135Investment income, net
    
    
    1,298
    
    
    
    762Net realized capital losses
    
    
    (369
    )
    
    
    (133
    )Fees and other income
    
    
    453
    
    
    
    343Total revenues
    
    
    21,573
    
    
    
    23,107Expenses:Losses and loss adjustment expenses, net
    
    
    9,494
    
    
    
    9,091Policy acquisition costs
    
    
    5,647
    
    
    
    6,029Other underwriting and operating
expenses
    
    
    3,706
    
    
    
    3,865Interest expense
    
    
    249
    
    
    
    230Total expenses
    
    
    19,096
    
    
    
    19,215Income before federal income tax expense
    
    
    2,477
    
    
    
    3,892Federal income tax expense
    
    
    850
    
    
    
    1,346Net income
    
    $
    1,627
    
    
    $
    2,546Loss Ratio:Commercial lines
    
    
    33.8
    %
    
    
    43.3
    %Personal lines
    
    
    90.1
    %
    
    
    36.0
    %Consolidated
    
    
    46.0
    %
    
    
    40.4
    %Expense Ratio
    
    
    45.3
    %
    
    
    44.0
    %Combined Ratio
    
    
    91.3
    %
    
    
    84.4
    %
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North Pointe Holding Corporation
Add 4
 North Pointe Holdings Corporation and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2006 and December 31, 2005
 2006
    
    
    2005(Dollars in thousands, except share data)ASSETSInvestmentsDebt securities, available for sale, at fair value (amortized cost
of $98,379 and $100,337, respectively)
    
    $
    95,210
    
    
    $
    98,018Common stocks, available for sale, at fair value (cost of $8,739
and $8,681, respectively)
    
    
    10,407
    
    
    
    10,001Other investments
    
    
    553
    
    
    
    553Total investments
    
    
    106,170
    
    
    
    108,572Cash and cash equivalents
    
    
    65,154
    
    
    
    34,119Restricted cash
    
    
    200
    
    
    
    200Accrued investment income
    
    
    803
    
    
    
    840Premiums and agents balances receivable, net
    
    
    21,144
    
    
    
    21,324Reinsurance recoverables onPaid losses
    
    
    12,080
    
    
    
    11,470Unpaid losses
    
    
    53,327
    
    
    
    65,989Prepaid reinsurance premiums
    
    
    6,825
    
    
    
    7,424Deferred policy acquisition costs
    
    
    11,427
    
    
    
    9,578Deferred federal income taxes, net
    
    
    6,090
    
    
    
    5,843Federal income tax recoverable
    
    
    1,274
    
    
    
    2,199Fixed assets, net of accumulated depreciation
    
    
    5,500
    
    
    
    4,990Prepaid expenses and other assets
    
    
    3,806
    
    
    
    2,488Total assets
    
    $
    293,800
    
    
    $
    275,036LIABILITIES AND SHAREHOLDERS EQUITYLiabilitiesUnpaid losses and loss adjustment expenses
    
    $
    107,809
    
    
    $
    117,778Unearned premiums
    
    
    62,741
    
    
    
    44,701Debt
    
    
    23,231
    
    
    
    5,026Amounts due to reinsurers
    
    
    4,862
    
    
    
    3,048Accrued expenses and other liabilities
    
    
    10,472
    
    
    
    15,160Premiums in advance
    
    
    1,080
    
    
    
    7,096Total liabilities
    
    
    210,195
    
    
    
    192,809Commitments and Contingent LiabilitiesShareholders EquityCommon stock, no par value; 50,000,000 shares authorized; 9,116,687
issued
and outstanding in 2006 and 2005
    
    
    50,315
    
    
    
    50,233Preferred stock, no par value; 5,000,000 shares authorized and 0 issued
and
outstanding in 2006 and 2005
    
    
    
    
    
    
    Retained earnings
    
    
    34,280
    
    
    
    32,653Accumulated other comprehensive lossNet
unrealized losses on investments, net of deferred federal incometax benefit of $511 and $340, respectively
    
    
    (990
    )
    
    
    (659
    )Total shareholders equity
    
    
    83,605
    
    
    
    82,227Total liabilities and shareholders equity
    
    $
    293,800
    
    
    $
    275,036
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North Pointe Holdings Corporation
Add 5
 North Pointe Holdings Corporation and Subsidiaries
Consolidated Statements of Income
For the Three Months Ended March 31, 2006 and 2005
 2006
    
    
    2005(Dollars in thousands, except share data)RevenuesDirect premiums written
    
    $
    45,564
    
    
    $
    45,194Assumed premiums written
    
    
    4
    
    
    
    627Gross premiums written
    
    
    45,568
    
    
    
    45,821Premiums ceded
    
    
    (8,412
    )
    
    
    (4,155
    )Net premiums written
    
    
    37,156
    
    
    
    41,666Increase in net unearned premiums
    
    
    (16,965
    )
    
    
    (19,531
    )Net premiums earned
    
    
    20,191
    
    
    
    22,135Investment income, net of investment expenses
    
    
    1,298
    
    
    
    762Net realized capital losses
    
    
    (369
    )
    
    
    (133
    )Fees and other income
    
    
    453
    
    
    
    343Total revenues
    
    
    21,573
    
    
    
    23,107ExpensesLosses and loss adjustment expenses, net
    
    
    9,494
    
    
    
    9,091Policy acquisition costs
    
    
    5,647
    
    
    
    6,029Other underwriting and operating expenses
    
    
    3,706
    
    
    
    3,865Interest expense
    
    
    249
    
    
    
    230Total expenses
    
    
    19,096
    
    
    
    19,215Income before federal income tax expense
    
    
    2,477
    
    
    
    3,892Federal income tax expense
    
    
    850
    
    
    
    1,346Net income
    
    $
    1,627
    
    
    $
    2,546Earnings Per ShareBasic
    
    $
    0.18
    
    
    $
    0.52Diluted
    
    
    0.18
    
    
    
    0.52Weighted average number of common shares
outstandingBasic
    
    
    9,114,187
    
    
    
    4,889,187Diluted
    
    
    9,114,631
    
    
    
    4,889,187