Return on Equity

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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

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:

a: The business of insuring persons or property.

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.

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