Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', BHFAO's return on equity was 10.2%, measuring profitability for shareholders. Industry average for Life Insurance in '2021' stood at 20.6%.
• In '2022', BHFAO's return on equity was 35.8%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Life Insurance in '2022' stood at 18.0%. Industry average declined by 2.6% from previous year.
• In '2023', BHFAO's return on equity was -21.2%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Life Insurance in '2023' stood at 32.3%. Industry average increased by 14.3% compared to previous year.
• In '2024', BHFAO's return on equity was 7.8%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Life Insurance in '2024' stood at 23.6%. Industry average declined by 8.8% from previous year.
Overall, BHFAO's return on equity has been volatile but showed a downward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.