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Demutualization
(redirected from demutualizing)

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Demutualization
Refers to the process that has come about as the result of many not-for-profit exchanges (mutual companies owned by groups of members) converting to for-profit and then shareholder companies in order to go public.

Demutualization
The process by which a mutual company becomes a publicly-traded company. A mutual company is a company owned by its members or users for the benefit of those members or users. In demutualization, the members give up their rights and receive shares in the company in return, which the (now former) members may then sell. Demutualization happens most often when a stock exchange owned by its members goes public.

As an aside, a mutual company should not be confused with a mutual fund.


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private investment firm The Blackstone Group, said that some state legislatures view mutual holding companies as conversions that allow many benefits of demutualizing except they don't deliver value to policyholders.
The taxpayer began exploring the possibility of demutualizing, by which it would become a stock insurance company.
Conning also found that the equity markets carefully evaluate the financial performance of demutualizing insurers - both pre- and post-demutualization - a factor that it believes may have a significant influence on future life insurer demutualizations.
 
 
 
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