Dave's ESL Cafe's Student Discussion Forums

[KejciorF]

Hi Everybody,

is there something missing in this sentence? If not, then what does 'mutual' mean?

Aberdeen is one of the country's smaller life insurance companies. It was set up in 1920 as a mutual.

TIA,

Kate.

[asterix]

mutual in this instance means mutual insurance company.
A mutual insurance company gives the policyholders certain ownership rights, such as the ability to elect the management of the organization and to participate in a distribution of any net assets or surplus should the organization cease doing business.