What Is a Mutual Insurance Company?
And what it means for you.
A mutual insurance company is owned by its policyholders, not outside shareholders. At Amica, that structure helps us focus on the people we insure, the service they rely on and the long-term strength of our company.
Why it matters: Mutual ownership can influence how a company uses its financial results to support long-term financial strength, service and potential policyholder benefits.
How mutual insurance companies work
Policyholder needs guide decisions
Without outside shareholders, a mutual insurer can keep its policyholders’ needs at the center of its decisions.
Focused on long-term strength
Premiums and financial results help the company pay covered claims, prepare for future risks and remain dependable over time.
Eligible policyholders may receive dividends
When performance and business conditions allow, eligible policyholders may receive dividends.1
Mutual vs. stock insurance companies
Mutual and stock insurance companies both provide coverage and pay eligible claims. The main differences are who owns the company and how financial results may be used.
| Feature | Mutual Insurance Company | Stock Insurance Company |
|---|---|---|
| Ownership | Policyholders | Shareholders |
| Financial results | May support reserves, company strength and potential policyholder benefits (such as dividends) | May be reinvested in the business or returned to shareholders |
FAQs about mutual insurance companies
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Home
Award-winning home insurance for your home, your possessions and the life you've built.
Life
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1 Dividend policies are not available in every state, may not be available on all policy types, and are not guaranteed. To be eligible to receive a declared dividend, you must be a policyholder when, and if, dividends are declared. Should your policy cancel or terminate for any reason before the end of its full term, you would not be eligible for a declared dividend payment.
2 Based on internal Amica data on representative tenure (Jan. 2024 - Nov. 2025) compared to publicly available industry averages. Individual experience may vary and this statement is not a guarantee of any specific customer outcome or service experience.
3 As of Dec. 31, 2025, for Amica auto and home policyholders.
4 A+ (Superior) is the second highest of 13 company ratings. Ratings range from A++ (Superior) to D (Poor). AM Best's ratings measure an insurer's financial strength.
AMIC-01-081828