section_path: Insurance companies/Mutual versus proprietary
section_name: Mutual versus proprietary
paragraph_text: Mutual versus proprietary
  
  Insurance companies are commonly classified as either mutual or proprietary companies. Mutual companies are owned by the policyholders, while shareholders (who may or may not own policies) own proprietary insurance companies.
  
  Demutualization of mutual insurers to form stock companies, as well as the formation of a hybrid known as a mutual holding company, became common in some countries, such as the United States, in the late 20th century. However, not all states permit mutual holding companies.