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Definity FinancialFRA:XR6 +0.85%77 Return-on-Tangible-Equity is 13.14% as of Mar. 2026, which is 12% below its 10-year median of 14.90. GuruFocus rates FRA:XR6 with a GF Score™ of 77/100 and a GF Value™ of €43.78. The stock has 5 warning signs investors should review. Among 496 Insurance companies, Definity Financial ranks better than 66.13% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Definity Financial's annualized net income for the quarter that ended in Mar. 2026 was €161 Mil. Definity Financial's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,226 Mil. Therefore, Definity Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.14%.
The historical rank and industry rank for Definity Financial's Return-on-Tangible-Equity or its related term are showing as below:
FRA:XR6'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.39 Med: 14.9 Max: 24.32
Current: 18.59
During the past 6 years, Definity Financial's highest Return-on-Tangible-Equity was 24.32%. The lowest was 5.39%. And the median was 14.90%.
FRA:XR6's Return-on-Tangible-Equity is ranked better than 66.13% of 496
companies
in the Insurance industry
Industry Median: 13.245
vs FRA:XR6: 18.59
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Definity Financial Return-on-Tangible-Equity Related Terms
Definity Financial Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Definity Financial's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:XR6 vs CB, PGR, TRV: Return-on-Tangible-Equity Comparison
For the Insurance - Property & Casualty subindustry, Definity Financial's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Definity Financial Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Definity Financial's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Definity Financial's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.14% mean?
Definity Financial (FRA:XR6) has a Return-on-Tangible-Equity of 13.14% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Definity Financial and its competitors. This is 12% below median its historical median of 14.90. Over the past decade, Definity Financial's Return-on-Tangible-Equity has ranged from 5.39 to 24.32. According to the industry distribution chart, Definity Financial ranks #168 out of 496 companies in the Insurance industry, placing it in the top 33.9%.
Is Definity Financial's Return-on-Tangible-Equity too high?
Definity Financial's current Return-on-Tangible-Equity of 13.14% is 12% below median its 10-year median of 14.90. Over the past 10 years, this metric has ranged from a low of 5.39 to a high of 24.32. The Insurance industry median Return-on-Tangible-Equity is 13.25. Definity Financial's value of 13.14% is 0.8% below this industry median. Based on the distribution chart, Definity Financial ranks #168 out of 496 companies in the Insurance industry, which is above the industry midpoint. Overall, Definity Financial has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Definity Financial's Return-on-Tangible-Equity compare to CB and PGR?
According to the Insurance industry distribution chart, Definity Financial ranks #168 out of 496 companies for Return-on-Tangible-Equity. This puts Definity Financial in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.25. Definity Financial's value of 13.14% is 0.8% below this benchmark. Historically, Definity Financial's own Return-on-Tangible-Equity has ranged from 5.39 to 24.32 over the past decade. While the company's 10-year median is 14.90 vs. the industry median of 13.25, Definity Financial has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.25, based on 496 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Definity Financial's current Return-on-Tangible-Equity of 13.14% is 0.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Definity Financial and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Definity Financial's current Return-on-Tangible-Equity is 13.14%, which is 12% below median its own 10-year median of 14.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Definity Financial stock overvalued right now?
Definity Financial (FRA:XR6) has a current Return-on-Tangible-Equity of 13.14%. The stock's GF Value™ is €43.78, compared to a current price of €47.40 — trading 8.3% above its estimated fair value. The current Return-on-Tangible-Equity is 13.14%, which is 12% below median its 10-year median of 14.90 and 0.8% below the Insurance industry median of 13.25. Definity Financial's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Definity Financial (FRA:XR6), the current Return-on-Tangible-Equity is 13.14% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Definity Financial (FRA:XR6) Overvalued in 2026?
Based on GuruFocus' analysis, Definity Financial stock appears to be overvalued.
The current stock price of €47.40 is trading 8.3% above its estimated GF Value™ of €43.78.
Key valuation signals for FRA:XR6:
Return-on-Tangible-Equity: 13.14% (12% below median its 10-year median of 14.90)
GF Value™: €43.78 vs. price of €47.40 (8.3% above fair value)
Industry Position: 0.8% below the Insurance median (#168 of 496)
No single metric tells the full story. See the FRA:XR6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Definity Financial Corp is a property and casualty insurance services provider. It serves the insurance needs of individual, commercial, and farm customers. Its product portfolio includes Personal auto insurance, Personal home insurance, Group auto insurance, Group home insurance, Business property insurance, Business liability insurance, Commercial vehicle insurance, Surety bonds, Oilfield services insurance, General farm insurance, Premier cash crop insurance, and Winery insurance.
77GF Score
Get the complete analysis for FRA:XR6
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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