Home > Glossary



Process in which a mutual insurer changes its legal form to that of a stock insurer. As a stock company, the insurer can more easily raise capital, offer better compensation to its management through stock options, achieve superior operating and financial flexibility, and enjoy positive tax benefits. A major drawback is the high expenses associated with the process due to various legal, accounting, regulatory, and tax hurdles.

Get started IRMI Sidebar ad
Agricon sidebar banner


Social Media

User ID: Subscriber Status:Free