Definition of "Return on equity ratio"

LaShawn  Milton real estate agent

Written by

LaShawn Miltonelite badge icon

Realtor RealNet of Tampa Bay

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Addition to the homeowners INSURANCE POLICY AND COMMERCIAL PACKAGE POLICY that provides liability and medical coverage for damages resulting from the operation of motor boats too large to ...

Act passed in 1996 that includes: an increase in the amount a nonworking spouse can contribute to an INDIVIDUAL RETIREMENT ACCOUNT (IRA) increased from $250 to $2000; creation of the ...

Highly visible form of marketing communication with the public with these objectives: (1) encourage agents and brokers to sell insurance company products, (2) predispose customers to be ...

Policy that has an initial premium with flexible premiums thereafter. Within limits, a policy owner can select both the future amount and frequency of premiums, or can stop and start ...

Action by insurance companies and agents to voluntarily refrain from business conduct that is misleading, fraudulent, and in general would have adverse consequences for the purchaser of the ...

Workers' premiums in a contributory employee benefit plan. ...

Coverage in the event of property damage or destruction resulting from wrongful installation of equipment. ...

Insurance company whose corporate charter and bylaws prevent assessment of its policyowners, regardless of how adverse its loss and expense experience may become. ...

Risk distribution included by type of coverage, by kind of risk, and by geographical location. ...

Popular Insurance Questions