What is the average return on equity for a company in the financial services sector?

June 30, 2024 No Comments

A: Also known as return on net worth, a company’s return on equity (ROE) is a common metric used by investors to analyze profitability. Expressed as a percentage, ROE is calculated by dividing a company’s’ net income for the previous year by its shareholders’ equity.

What are the pros and cons of life insurance policy loans?

June 30, 2024 No Comments

A: Like with any type of loan, life insurance policy loans come with pros and cons. It is important to look at both aspects before deciding whether to borrow against your whole life insurance policy. Pros of a Life Insurance Policy Loan Getting a life insurance policy loan is

What is the average return on equity for a company in the insurance sector?

June 30, 2024 No Comments

A: The insurance sector offers an attractive investing opportunity for investors looking to diversify their portfolio with insurance companies that may offer appealing dividend yields. One way to assess an insurance company is to calculate its return on equity, which is one of the many

What are the tax implications of a life insurance policy loan?

June 30, 2024 No Comments

A: Taking out a loan against your life insurance policy does not count as taxable income, according to the IRS. However, if you surrender your policy or your policy lapses, the IRS is notified of this taxable event and you have to pay tax on

What barriers to entry exist in the financial services sector?

June 30, 2024 No Comments

A: Barriers to entry in financial services markets include licensure laws, capital requirements, access to financing, regulatory compliance and security concerns. Among different market sectors, the financial services sector has a uniquely complicated relationship with competition and barriers to entry. This is largely owed to

What countries represent the largest portion of the global banking sector?

June 30, 2024 No Comments

A: China, the United Kingdom, France and the United States represent the largest portions of the global banking sector. China’s two largest banks, the ICBC and CCB, control nearly $6 trillion worth of the global banking sector. In fact, all four of China’s major banks

What does the underwriter do in a new stock offering?

June 30, 2024 No Comments

A: The underwriter in a new stock offering serves as the intermediary between the company seeking to issue shares in an initial public offering (IPO) and investors. The underwriter helps the company prepare for the IPO, considering issues such as the amount of money sought

What effect did the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 have on debtors?

June 30, 2024 No Comments

A: Credit card companies and banks hate deadbeats who take from their bottom lines. They especially dislike the Chapter 7 bankruptcy that discharges a debtor and, if he or she has no saleable assets, eliminates their chances of reclaiming even a portion of the debt.

Is there a limit on the amount of disability insurance that I can buy?

June 30, 2024 No Comments

A: Disability insurance policies are designed to partially replace your income in the event that you become disabled and cannot continue to work. To help limit the amount of fraudulent disability claims, it is not feasible for the insurer to replace 100% of the income

Loss Ratio vs Combined Ratio

June 30, 2024 No Comments

A: The loss ratio and combined ratio are two ratios used to measure the profitability of an insurance company. The loss ratio measures the total incurred losses in relation to the total collected insurance premiums, while the combined ratio measures the incurred losses and expenses

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