what is a mutual company 
a mutual company is a private firm that is owned by its customers or policyholders the company s customers are also its owners as such they are entitled to receive a share of the profits generated by the mutual company the distribution of profits is typically made in the form of dividends paid on a pro rata basis based on the amount of business each customer conducts with the mutual company alternately some mutual companies choose to use their profits to reduce members premiums a mutual company is sometimes referred to as a cooperative 