demutualization

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Definition of demutualization in English English dictionary

The act or process of demutualizing

Demutualization (or demutualisation) is the process by which mutual organizations or companies (mutuals) convert themselves to for-profit (or profit-making) public companies which distribute profits to their shareholders in the form of dividends

The process of converting from a mutual company to a stock company A mutual company is owned by its voting policyholders, while a stock company is owned by its shareholders For more information, visit the Office of the Superintendent of Financial Institutions Web site

The process of converting a stock insurance company to a mutual insurance company

The process whereby a mutual insurance company changes the form of ownership of the company to a stock insurance company One of the main reasons for this transformation is to allow the insurance company to raise additional capital from new sources

The conversion of insurance companies from mutual companies owned by their policyholders into publicly-traded stock companies

Demutualization is the conversion of an insurance company from a mutual company that is owned by its policyholders to a publicly traded company that is owned by stockholders

The process of changing the legal structure of an insurance company from a mutual form of ownership to a stock form of ownership

A term to describe the conversion of a mutual insurer into a stock insurer

(Démutualisation) Demutualization is the process by which a mutual life insurance company is converted into a company with common shares A mutual company is owned by its participating policyholders, but the ownership rights are not tradable or exchangeable Under the process of demutualization, common shares are issued to eligible participating policyholders who then have the opportunity to retain or sell the shares