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.
Lib Dem councillor Jerry Roodhouse his group is urging more staff involvement in the running of joined-up public services, by creating mutual companies and workers' co-operatives.
Tripoli, (SANA)-Secretary of the General People's Committee in Libya Al-Baghdadi al-Mahmoudi discussed on Monday with Finance Minister Muhammad al-Hussein means of enhancing bilateral relations between Syria and Libya in various fields.During the meeting, both sides underlined the importance of developing cooperation in the fields of economy, trade, increasing bilateral investment projects and upgrading the performance of the mutual companies in both countries.They agreed to hold the Syrian-Libyan Higher Committee in Tripoli during the first quarter of the current year.Manal Ismael/Mazen
Stuto also said that "since mutual companies cannot issue stock or debt instruments, growth through acquisition must be funded largely by surplus.
And the mutual companies charge a higher premium than they need to operate at cost, and therefore, the resulting overpayment is retained in this account called policyholder surplus." The IRS, by contrast, claims that policyholders paid nothing for the distributions, and therefore must pay taxes on the full amount.
Mutual companies should be subject to a mirror Sarbanes-Oxley Act, like that being considered by the NAICC, said 59 percent of the respondents.
banks, brokerages, mutual companies, and other financial service companies are planning to relocate 500,000 jobs offshore--8 percent of their workforce--in the next five years.
Most Japanese life insurers are mutual companies and the meetings of representative policyholders are the equivalent of shareholders' meetings at stock companies.
banks, brokerages, mutual companies and other financial services companies are planning to relocate 500,000 jobs offshore, or 8 percent of their work force, over the next five years."
In mutual companies, a portion of profits (divisible surplus) gets returned to the policyholder as dividends, but the amount paid varies from company to company.
This will not change the position of mutual companies, which are owned by their with profit policyholders and have no shareholders.