Having it both ways: looking to broaden their financial options, mutual insurance companies are increasingly considering the mutual holding company option
Article Abstract:
Mutual insurance companies seeking to convert into for-profit status can demutualize, undergo a merger or turn into a mutual holding company. Demutualization connotes becoming a stock company which provides the opportunity to raise capital. Mergers, on the other hand, minimize expenses and strengthen solvency. Mutual holding companies provide short-to-medium term capital. Such restructuring options on the part of mutual insurers are instigated by minimal surplus growth, limited capital access and additional taxes that characterize their nonprofit status.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1997
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Industry leaders heeding wake up call
Article Abstract:
Insurance industry leaders discuss survival strategies in the oversaturated, highly competitive market. Successful insurance companies have cut staff, merged with competitors, and developed distribution strategies with agents who can determine the best target markets. Direct marketing and sales through financial institutions, combined with traditional agent distribution, will maximize profit and increase competitiveness.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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