Return On Equity Ratio


Definition of "Return on equity ratio"

LaShawn  Milton
  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.



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