Mutual company


Also found in: Legal.

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 ?
The mutual company of agricultural services in Majel Bel Abbes plans to export 45 tonnes of organic almonds next year and is preparing to expand its exports to organic pistachio and dried peach, its president Mohamed Farhi said in a statement to TAP.
"Since 2011 we have increased the dividend payout by 30 percent, far exceeding the three-year growth of our large mutual company peers.
following the completion of the conversion of ARI to a stock company from a mutual company, AmTrust said on Wednesday.
"The new practice provides solutions for all these concerns and demonstrates Guy Carpenter's long-term commitment to this distinctive market," said John Haldeman II, executive vice president of the Mutual Company Specialty Practice at Guy Carpenter, a member of Marsh & McLennan Cos.
As a mutual company, Farmers Union Mutual Insurance company is owned and governed by its policyholders in much the same way that a cooperative is owned and operated by its members.
A mutual company is owned by and run for the benefit of the policyholders rather than stockholders.
No year-on-year comparison is available because Dai-ichi Life did not release quarterly results as a mutual company a year earlier before becoming a stock company on April 1, 2010.
Public Mutual company said, Monday, that the fund allows investors to
It makes much of the virtues of its status as a mutual company where customers share in the profits.
"Because financial condition has an impact on bond and SIP losses, we have an obligation as a mutual company committed to credit unions to take certain actions and maintain our financial strength for all of our policy owners."
The Co-op, a mutual company owned by 2.5 million members, unveiled a three-year plan in April to double profits and invest pounds 1.5bn in transforming its retail estate.
Norwegian electricity and security group Hafslund ASA said on Wednesday (27 December) that it has formed a mutual company, BioWood Norway AS, together with More- og Romsdal Biobrensel AS, with the aim of establishing a factory for production of wooden pellets.

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