Which type of insurer is owned by stockholders who provide capital and share in profits or losses?

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Ownership by investors defines a stock company. A stock insurer is financed by selling shares to stockholders who provide the capital to run the business. Those stockholders then share in the company’s profits or losses through dividends and changes in stock value. Policyholders themselves don’t participate in these profits in a stock company, and the company may issue nonparticipating policies that don’t pay dividends to policyowners. By contrast, a mutual company is owned by the policyowners, who may receive dividends or premium discounts as profits. Reinsurers are entities that insure other insurers, not direct consumers, so they aren’t described by ownership tied to stockholders and policyholder profits.