2018 Mutual Factor

The 2018 Mutual Factor was developed jointly by NAMIC and Robert Hartwig, Ph.D., director of the Center for Risk and Uncertainty Management at the University of South Carolina. The analysis evaluated 16 different performance metrics for 2017, comparing mutuals, stock companies, and other insurers.

Among the key findings of the study were:

1. Mutual insurers were less leveraged than their stock counterparts in 2017, with $1.89 in policyholder surplus backing up each dollar in net premiums written, compared to $1.64 for other insurers.
2. The dividend ratio, a gauge of the proportion of premium returned to policyholders, was eight times larger for mutuals.
3. Mutual companies are more likely to temper the pace of rate increases, resulting in greater price stability, because they are not as driven by the need for short-term profitability.
4. Capital and surplus in the mutual segment grew by more than 8 percent in 2017 – very strong by historical standards and despite heavy CAT losses.