What does Return on Equity mean? Read on to discover the definition & meaning of the term Return on Equity - to help you better understand the language used in insurance policies.
Return on Equity
Return on Equity (ROE) is a percentage that reflects how much a company has earned if its net income is pitted against the money invested by its shareholders. A high percentage usually indicates that the company is highly profitable.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Return on Equity. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: