Who owns the insurance company?


Editorial team Published on

Insurance companies are owned either by their shareholders (stock companies) or by their policyholders (mutual companies).

Stock Insurance Companies

  • Owners: Public or private shareholders who buy stock on an exchange.
  • Goal: Generate profit and a return on investment for investors.
  • Control: Shareholders elect the board of directors.
  • Examples: Travelers, Chubb, and Progressive.

Mutual Insurance Companies

  • Owners: The customers who hold insurance policies, functioning similar to a cooperative.
  • Goal: Operate for the benefit of policyholders, often providing lower rates or returning excess earnings as dividends.
  • Control: Policyholders vote to elect the board of directors.
  • Examples: State Farm, Liberty Mutual, Northwestern Mutual, and New York Life.