Mutual company

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Mutual company

A corporation that is owned by a group of members and that distributes income in proportion to the amount of business that members do with the company.

Mutual Company

A company structure in which the company's owners are also its clients. That is, the mutual company's profits are distributed to its participating customers each year in proportion to their individual exposures to the company. Many insurance companies are structured as mutual companies, meaning that policyholders have the right to receive portions of the company's profits, and often may elect the company's management. Savings & loan associations are also common structured as mutual companies.

mutual company

A company owned by its customers rather than by a separate group of stockholders. Many thrifts and insurance companies (for example, Metropolitan and Prudential) are mutual companies. Compare stock company.

Mutual company.

A mutual company is a privately held company owned by its policyholders, depositors, or other customers. A share of the profits is distributed as dividends, allocated in proportion to the amount of business each customer does with the company.

Insurance companies, federal savings and loan associations, and savings banks are examples of mutual companies, although each type operates somewhat differently.

References in periodicals archive ?
Mutual companies, as we all know, tend to be more concerned about solvency and creating comfortable cushions of capital to the benefit of the policyholders.
It held that Belgian mutual companies practice economic activities when they provide supplementary sickness insurance: the principle of solidarity cannot be invoked and mutual companies compete on this market with commercial insurers, such as banks and insurance companies.
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.
Mutual companies have been converting to stock ownership as a way to access capital for acquisitions and to provide management incentives.
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.
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.
As a result, these mutual companies can effectively serve their policyholders without full-time associates.
The three principal mutual companies of the group, Liberty Mutual Insurance Company, Liberty Mutual Fire Insurance Company and Employers Insurance Company of Wausau, each became separate stock insurance companies under the ownership of Liberty Mutual Holding Company, Inc.