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Scottish Re Group (Scottish Re Group) ROE % : -1,152.32% (As of Jun. 2011)


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What is Scottish Re Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Scottish Re Group's annualized net income for the quarter that ended in Jun. 2011 was $-722.66 Mil. Scottish Re Group's average Total Stockholders Equity over the quarter that ended in Jun. 2011 was $62.71 Mil. Therefore, Scottish Re Group's annualized ROE % for the quarter that ended in Jun. 2011 was -1,152.32%.

The historical rank and industry rank for Scottish Re Group's ROE % or its related term are showing as below:

SKRUF.PFD's ROE % is not ranked *
in the Insurance industry.
Industry Median: 10.28
* Ranked among companies with meaningful ROE % only.

Scottish Re Group ROE % Historical Data

The historical data trend for Scottish Re Group's ROE % can be seen below:

* 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.

* Premium members only.

Scottish Re Group ROE % Chart

Scottish Re Group Annual Data
Trend Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -31.49 -127.61 - Negative Equity 1,789.49

Scottish Re Group Quarterly Data
Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 920.03 299.22 -59.16 63.17 -1,152.32

Competitive Comparison of Scottish Re Group's ROE %

For the Insurance - Life subindustry, Scottish Re Group'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.


Scottish Re Group's ROE % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Scottish Re Group's ROE % distribution charts can be found below:

* The bar in red indicates where Scottish Re Group's ROE % falls into.



Scottish Re Group ROE % Calculation

Scottish Re Group's annualized ROE % for the fiscal year that ended in Dec. 2010 is calculated as

ROE %=Net Income (A: Dec. 2010 )/( (Total Stockholders Equity (A: Dec. 2009 )+Total Stockholders Equity (A: Dec. 2010 ))/ count )
=235.211/( (-104.156+130.444)/ 2 )
=235.211/13.144
=1,789.49 %

Scottish Re Group's annualized ROE % for the quarter that ended in Jun. 2011 is calculated as

ROE %=Net Income (Q: Jun. 2011 )/( (Total Stockholders Equity (Q: Mar. 2011 )+Total Stockholders Equity (Q: Jun. 2011 ))/ count )
=-722.656/( (152.97+-27.544)/ 2 )
=-722.656/62.713
=-1,152.32 %

* 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 (Jun. 2011) net income data. ROE % is displayed in the 30-year financial page.


Scottish Re Group  (OTCPK:SKRUF.PFD) 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:

ROE %(Q: Jun. 2011 )
=Net Income/Total Stockholders Equity
=-722.656/62.713
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-722.656 / 335.652)*(335.652 / 4683.868)*(4683.868 / 62.713)
=Net Margin %*Asset Turnover*Equity Multiplier
=-215.3 %*0.0717*74.6874
=ROA %*Equity Multiplier
=-15.44 %*74.6874
=-1,152.32 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2011 )
=Net Income/Total Stockholders Equity
=-722.656/62.713
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-722.656 / -761.932) * (-761.932 / -706.876) * (-706.876 / 335.652) * (335.652 / 4683.868) * (4683.868 / 62.713)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 0.9485 * 1.0779 * -210.6 % * 0.0717 * 74.6874
=-1,152.32 %

Note: The net income data used here is four times the quarterly (Jun. 2011) net income data. The Revenue data used here is four times the quarterly (Jun. 2011) 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.


Scottish Re Group ROE % Related Terms

Thank you for viewing the detailed overview of Scottish Re Group's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Scottish Re Group (Scottish Re Group) Business Description

Traded in Other Exchanges
N/A
Address
Crown House, First Floor, 4 Par-la-Ville Road, Hamilton, BMU, HM 08
Scottish Re Group is engaged in the reinsurance of life insurance, annuities and annuity-type products. It accepts part of the risk of insurance policies for a portion of the income earned by the policies. The company uses its headquarters in the tax-friendly Cayman Islands to provide wealth management and estate planning services to high net worth clients. It has operations in Bermuda, the Cayman Islands, Ireland, the United Kingdom, and the United States.
Executives
Richard M Rieder 10 percent owner 55 EAST 52ND STREET, NEW YORK NY 10055
Lehman Brothers Holdings Inc 10 percent owner 1271 AVENUE OF THE AMERICAS, NEW YORK NY 10020
Seth Gardner director CERBERUS CAPITAL MANAGEMENT, L.P., 299 PARK AVENUE, NEW YORK NY 10171
George Robert Zippel director, officer: President & CEO 700 MAIN STREET, LYNCHBURG VA 24505
Terry Eleftheriou officer: CFO 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Jeffrey Hughes director 811 HANSEN WAY, PALO ALTO CA 94303
Lenard Tessler director C/O ALBERTSONS COMPANIES, INC., 250 E. PARKCENTER BLVD., BOISE ID 83706
Robert Eugene Joyal director 352 WARDNER ROAD, WEST WINDSOR VT 05089
James N Chapman director 14 ALPINE ROAD, GREENWICH CT 06830
Thomas M Finke director BARINGS LLC, 300 SOUTH TRYON STREET, SUITE 2500, CHARLOTTE NC 28202
Michael Thomas Rollings director 1295 STATE STREET, SPRINGFIELD MA 01111
Larry Port director 230 PARK AVENUE, NEW YORK NY 10169
Stephen Feinberg 10 percent owner 875 THIRD AVENUE, 11TH FLOOR, NEW YORK NY 10022
Massachusetts Mutual Life Insurance Co 10 percent owner 1295 STATE STREET, SPRINGFIELD MA 01111
Glenn S Schafer director 151 DETROIT STREET, DENVER CO 80206

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