This glossary includes the most essential property and casualty insurance and life insurance terminology as well as financial statements terms used in Sampo Group. Because of different meanings in some cases in property and casualty insurance vs. life insurance, there are two different explations for some of the insurance terms.
You can move from an English word to an equivalent Finnish word by clicking the 'Suomeksi' button on the upper right hand corner of the web page.
Return on equity
Return on equite (RoE) indicates how much return the company is able to generate for the money shareholders have invested in (simplified formula: profit after tax/average equity during the year). The more liabilities the company has relative to equity, the more volatile RoE is to variations in profit. The RoE is also useful for comparing profitability of different firms in the same industry.