In essence, mutual companies
prepay the tax on income later distributed to policyholders as policyholder dividends.
According to the group the number of mutual companies
has fallen sharply during the past five years, with building societies alone dropping to just 65 from 339.
Despite the decline in the number of mutuals, six in ten people still have financial products with mutual companies
Nigel Snell, head of external affairs at Liverpool Victoria, said: ``People appear to recognise the importance of retaining a thriving base of mutual companies
driven by the needs of the customers who own them, rather than the demands of a small number of City shareholders.
The Wall Street community doesn't look at mutual companies
have been converting to stock ownership as a way to access capital for acquisitions and to provide management incentives.
Otherwise, mutual companies
are affected by the market, legislators, regulators, reinsurance markets and the risk environment as are other companies.
Additional information about the Atlantic Mutual Companies
can be found on the Internet at http://www.
The company is the third-largest general insurer with a market share of approximately 18% and is part of a group of mutual companies
active in general insurance, life insurance, pension and financial services.
Some observers say the split is generally between stock and mutual companies
has affirmed the financial strength rating (FSR) of B- (Fair) and the issuer credit ratings (ICR) of "bb-"of the Atlantic Mutual Companies
(Atlantic) and its property/casualty members.
One advantage of Rule 144A to mutual companies
is the ability to use existing statutory-basis financial statements in the offering circular.