Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Why Return on Equity Matters

29 Apr 2025 · 0 min

Watch on YouTube

0:28

Short excerpt from a YouTube video in which Richard Canfield explains why return on equity (ROE) matters for mutual insurance companies. He contrasts mutuals with stock-based insurers, emphasizing that mutuals balance profitability with policyholder benefits and that ROE indicates an insurer's ability and stability to deliver dividends that affect policy cash value and death benefit growth.

You sparked me around like return on equity and stuff for mutual companies. And it says, unlike stock based insurers, mutual companies don't aim to maximize shareholder value. Instead, their goal is to balance profitability with policyholder benefits. Return on equity tells you how well they're doing this for business owners exploring this option, like incorporating ibc, what have you, Return on equity offers a great insight into the insurer's ability and stability to deliver on promises like dividends that directly impact cash value growth and death benefit growth in a policy.