Return On Equity Ratio
Definition of "Return on equity ratio"
Insurance company's net gain from operations divided by its adjusted surplus. This is the accounting rate of return on stockholder's equity since the ratio shows the rate of return the company is earning on its capital and surplus committed to conducting its insurance business and investments made. The greater this ratio, the greater the use the company is making of the funds invested in it by its stockholders.
Popular Insurance Terms
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Present value of a series of payments such that the first payment is due one period hence, the second payment two periods hence, and so forth. The continued payment is contingent upon the ...
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part of the Model Uniform Life and Health Insurance Policy Provisions Law giving an insurer a time limit on contesting coverage for preexisting conditions or misrepresentation. This law, ...
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Allocation of monetary resources to equities. ...
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