By: Caribbean Business Staff

When choosing the right insurance company for your property and casualty needs, you want a solid firm that is adequately prepared to meet the needs of its policyholders. In order to help both individuals and businesses make well-informed decisions, Antilles Insurance Co. continues to provide its clients and producers with the latest industry results in ranking Puerto Rico’s insurance companies by profitability, leverage, liquidity and loss revenue. “My father started doing this three decades ago because those who buy insurance aren’t always aware of a company’s financial statement.” Said Jaime J. González, chairman, president and CEO of Antilles Insurance Co. “Many have found these rankings to be extremely valuable because if there is a major catastrophe, you want a company that performs well in all of these areas.”

By compiling the report using figures provided annually by the National Association of Insurance Commissioners (NAIC), González said his company’s objective is to provide a general overview of the island’s top insurers’ financial results. “There are a number of tests that the NAIC does every year; I put the results together, and we publish the overall ranking,” he said, pointing out that Antilles consistently tops the list with flying colors. “We are proud to report that in comparison with our peers, Antilles Insurance Co. placed first during 2007 in seven of the 16 areas tested,” he said. “Only Antilles and four other companies had adequate loss reserves in each of the prior five years as shown by the Development to Policyholder results.” Areas tested included loss and expense ratios, net and gross leverage and quick, current and overall liquidity.

González also noted that these rankings prove that bigger isn’t always better. “Biggest doesn’t always mean the most solid,” he said. “If you compare net-written premiums to surplus, we’re very conservative. But that also makes us less exposed and puts us in a better position to be there for our clients as well as our stockholders.” He added that given the highly competitive environment of the commercial insurance market, some companies are charging inadequate premiums and then relying on investment rather than premium income to make up for any losses. “If you buy a hammer for $80, you can’t sell it for $60,” he said. “But some companies are looking to put business on the books at whatever price.”

In addition to the insurance company ranking report, Antilles has also put together a set of numbers related to auto insurance so that consumers can understand just how much extra they are paying when a five-year multiannual policy is factored into a car loan versus opting for a policy that is renewed on an annual basis. “Consumers need to be educated on this and understand that there are a number of choices and options.” He said. “Rather than compounding that five-year policy amount into a fixed-rate contract, there are ways to save money and put more back into people’s pockets.” He added that it’s important for consumers to shop around to find a financial institution that is willing to help the car buyer look at the various policy options available.