Mutual Company

Also found in: Financial.

Mutual Company

A corporation in which members are the exclusive shareholders and the recipients of profits distributed as dividends in proportion to the business that such members did with the company.

The most common kind of mutual company is a mutual insurance company. In this type of organization, which is a cooperative association, the members are both the insurers and the insured. Such companies exist for the purpose of satisfying the insurance needs of their members at a minimal cost. The members contribute through a system of premiums or assessments, forming a fund from which all losses and liabilities are paid. Any profits are divided among the members of the company in amounts proportionate to their individual interests.

The members of a mutual company choose the management. Professional associations that offer their members insurance coverage often form mutual insurance companies.

See: partnership
References in periodicals archive ?
26, 2013 /PRNewswire/ -- Sentry Insurance a Mutual Company has been awarded a 2013 Stakeholder Team Accomplishment Recognition(TM) (STAR) award from Demotech, Inc.
Mitsui Life transformed itself from a mutual company to a stock firm in 2004 in a bid to raise funds more flexibly.
As a mutual company, we've worked very closely with the mine owners, International Coal Group, and we are going with them to meet with the mine families on an individual basis to walk them through the claims process and help them with the paperwork," Wessels said.
The trio is charged with voting as board members to use money from the mutual company to buy trucks for their private business, American Water Supply.
If a mutual company adheres to its intent, this may enhance a policy's cash value.
One of the advantages to a mutual company is the absence of shareholders, the report says.
The class action complaint alleged that Anthem did not pay the former mutual company members the fair value of their membership interests.
MILWAUKEE, April 12, 2012 /PRNewswire/ -- Northwestern Mutual offers a personal perspective on the value of planning in its online, interactive Annual Report, which outlines the enduring financial strength and stability of the 155-year-old mutual company.
Podiatry Insurance Company of America RRG, a Mutual Company, Springfield, Ill.
Steinike has been elected to the board of directors of Sentry Insurance a Mutual Company.
Demutualization: Conversion of a mutual company to another form of ownership, typically to stock.
15 /PRNewswire/ -- Employers Insurance Company of Nevada, A Mutual Company ("EICN") and its wholly owned subsidiary Employers Compensation Insurance Company ("ECIC") formerly known as Fremont Employers Insurance Company, (collectively the "Company"), today reported statutory financial results for the quarter ending September 30, 2003.

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