Stock vs Mutual Insurer

Its policyholders, who may receive dividends from surplus — A mutual insurer is owned by its policyholders, not shareholders. Profits are returned to policyholders as dividends or retained as surplus for the policyholders' benefit. A stock insurer, by contrast, is owned by shareholders who provide capital and expect a return on their investment. This ownership distinction affects how surplus is distributed, who elects the board, and how the company is governed. Mutual companies are organized to serve their members, which is why participating policyholders may receive dividends from surplus.

National insurance concept

Owned by its policyholders, while a stock company is owned by its shareholders — A mutual insurer is owned by its policyholders, who elect directors and may receive dividends or premium refunds when operations are profitable. A stock insurer is owned by shareholders who invested capital, profits may be distributed to them, and policyholders generally have no ownership interest. Both types are subject to the same solvency regulation and must maintain reserves. The ownership structure affects how profits are distributed, but it does not change the fundamental coverage obligations the company owes to policyholders.

National insurance concept