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PT Lippo General Insurance Tbk (ISX:LPGI) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Jun. 2026) net income data. The Revenue data used here is two times the semi-annual (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
PT Lippo General Insurance Tbk ROE % Related Terms
PT Lippo General Insurance Tbk ROE % Historical Data
* 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.
For the Insurance - Diversified subindustry, PT Lippo General Insurance Tbk's ROE %, along with its competitors' market caps and ROE % 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.
PT Lippo General Insurance Tbk ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, PT Lippo General Insurance Tbk's ROE % distribution charts can be found below:
* The bar in red indicates where PT Lippo General Insurance Tbk's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
PT Lippo General Insurance Tbk (ISX:LPGI) has a ROE % of 22.13% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on PT Lippo General Insurance Tbk and its competitors. This is 186% above median its historical median of 7.74. Over the past decade, PT Lippo General Insurance Tbk's ROE % has ranged from 3.15 to 15.11. According to the industry distribution chart, PT Lippo General Insurance Tbk ranks #180 out of 500 companies in the Insurance industry, placing it in the top 36%.
Is PT Lippo General Insurance Tbk's ROE % too high?
PT Lippo General Insurance Tbk's current ROE % of 22.13% is 186% above median its 10-year median of 7.74. Over the past 10 years, this metric has ranged from a low of 3.15 to a high of 15.11. The Insurance industry median ROE % is 12.08. PT Lippo General Insurance Tbk's value of 22.13% is 83.3% above this industry median. Based on the distribution chart, PT Lippo General Insurance Tbk ranks #180 out of 500 companies in the Insurance industry, which is above the industry midpoint. Overall, PT Lippo General Insurance Tbk has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does PT Lippo General Insurance Tbk's ROE % compare to BRK.A and AIG?
According to the Insurance industry distribution chart, PT Lippo General Insurance Tbk ranks #180 out of 500 companies for ROE %. This puts PT Lippo General Insurance Tbk in the upper half of its industry. The industry median ROE % is 12.08. PT Lippo General Insurance Tbk's value of 22.13% is 83.3% above this benchmark. Historically, PT Lippo General Insurance Tbk's own ROE % has ranged from 3.15 to 15.11 over the past decade. While the company's 10-year median is 7.74 vs. the industry median of 12.08, PT Lippo General Insurance Tbk has consistently been above 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 ROE % for an Insurance company?
The median ROE % among Insurance companies is 12.08, based on 500 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PT Lippo General Insurance Tbk's current ROE % of 22.13% is 83.3% above 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on PT Lippo General Insurance Tbk and its competitors. For the Insurance industry, the median ROE % is 12.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Lippo General Insurance Tbk's current ROE % is 22.13%, which is 186% above median its own 10-year median of 7.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Lippo General Insurance Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Lippo General Insurance Tbk (ISX:LPGI) is currently considered Fairly Valued. The stock's GF Value™ is Rp628.70, compared to a current price of Rp645.00 — trading 2.6% above its estimated fair value. The current ROE % is 22.13%, which is 186% above median its 10-year median of 7.74 and 83.3% above the Insurance industry median of 12.08. PT Lippo General Insurance Tbk's overall GF Score™ is 68/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For PT Lippo General Insurance Tbk (ISX:LPGI), the current ROE % is 22.13% as of Jun. 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 PT Lippo General Insurance Tbk (ISX:LPGI) Overvalued in 2026?
Based on GuruFocus' analysis, PT Lippo General Insurance Tbk stock appears to be overvalued.
The current stock price of Rp645.00 is trading 2.6% above its estimated GF Value™ of Rp628.70.
GuruFocus considers PT Lippo General Insurance Tbk to be Fairly Valued.
Key valuation signals for ISX:LPGI:
ROE %: 22.13% (186% above median its 10-year median of 7.74)
GF Value™: Rp628.70 vs. price of Rp645.00 (2.6% above fair value)
Industry Position: 83.3% above the Insurance median (#180 of 500)
No single metric tells the full story. See the ISX:LPGI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Lippo General Insurance Tbk is a company that provides general insurance services. Its operating segments are Fire insurance, Motor Vehicle Insurance, Marine Cargo insurance, Health insurance and miscellaneous insurance. Geographically, the group carries operations in Indonesia in the areas of Jabodetabek, Sumatera, Jawa Timur, Jawa Barat, Jawa Tengah, Makassar, Bali, and Balikpapan. It derives key revenue from the Health insurance segment.
68GF Score
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