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 ?
The agreement between State Farm and Desjardins, combined with the support of our long-term French partner, CrA(c)dit Mutuel, brings together three financial cooperative and mutual organizations to create an insurance leader in Canada," Leroux continued.
Major transaction in Canada's financial sector among Canadian, American and European cooperative and mutual organizations
While most Japanese life insurers are mutual organizations, many are considering becoming stock companies to better survive harsh competition amid growing industry consolidation.
They had little in common with Protestant workers because there was no intermarriage, no kin connections, nor any mutual organizations in which they could join.
The partnership will allow specialized products to be made more widely available in expanded coverage areas through insurers, financial institutions, mutual organizations, and unions.
While most Japanese life insurers are mutual organizations, many are considering becoming stock companies to take advantage of more flexible operations amid growing industry consolidation.
The rating reflects MCR's maintenance of an excellent risk-adjusted capitalization and a very good niche business profile as reinsurer of mutual organizations within the Monceau group, a medium size mutual insurance group of which MCR is an integral member.
The combined services of our mutual organizations complement each other very well, and will provide tremendous value to our customers.
Three major industrial and commercial property insurance companies -- Allendale Insurance, Arkwright and Protection Mutual Insurance -- own or direct the Factory Mutual organizations.

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