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The historical rank and industry rank for Premier Insurance Co's ROE % or its related term are showing as below:
XNEP:PIC's ROE % is not ranked *
in the Insurance industry.
Industry Median: 11.64 * Ranked among companies with meaningful ROE % only.
Premier Insurance Co (XNEP:PIC) 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 four times the quarterly (Jul. 2022) net income data. The Revenue data used here is four times the quarterly (Jul. 2022) 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.
* 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 - Property & Casualty subindustry, Premier Insurance Co'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.
Premier Insurance Co ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Premier Insurance Co's ROE % distribution charts can be found below:
* The bar in red indicates where Premier Insurance Co'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 four times the quarterly (Jul. 2022) net income data.
ROE % is displayed in the 30-year financial page.
Premier Insurance Co (XNEP:PIC) has a ROE % of 14.53% as of Jul. 2022. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Premier Insurance Co and its competitors.
Is Premier Insurance Co's ROE % too high?
Premier Insurance Co's current ROE % is 14.53%. The Insurance industry median ROE % is 11.64. Premier Insurance Co's value of 14.53% is 24.8% above this industry median. Overall, Premier Insurance Co has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Premier Insurance Co's ROE % compare to CB and PGR?
Premier Insurance Co's ROE % of 14.53% can be compared against companies in the Insurance industry. The industry median ROE % is 11.64. Premier Insurance Co's value of 14.53% is 24.8% above this benchmark. 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 11.64, based on 501 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. Premier Insurance Co's current ROE % of 14.53% is 24.8% 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 Premier Insurance Co and its competitors. For the Insurance industry, the median ROE % is 11.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Premier Insurance Co's current ROE % is 14.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Premier Insurance Co stock overvalued right now?
Premier Insurance Co (XNEP:PIC) has a current ROE % of 14.53%. The current ROE % is 14.53% and 24.8% above the Insurance industry median of 11.64. Premier Insurance Co's overall GF Score™ is 21/100. 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 Premier Insurance Co (XNEP:PIC), the current ROE % is 14.53% as of Jul. 2022. 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.
Premier Insurance Co Ltd is an insurance company. The company operates through the following segments: Aviation; Crops and cattle; Engineering; Fire; Marine; Micro; Miscellaneous and Motor.
21GF Score
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