Mutual Insurers Narrowed Financial Gap in 2025

Policyholders saw increased dividends as mutual carriers improved financial strength relative to stock-owned competitors.

Updated on Sept. 29, 2026 in Insurance

Bold flat-color editorial illustration showing a balanced scale with architectural structures, representing financial industry stability and performance. — Mutual insurance companies increased surplus growth by 16.2% in 2025, outperforming stock-based competitors and closing the sector's performance gap. AI Illustration. Upload story photo >

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In 2025, mutual insurance companies grew their surplus by 16.2%, significantly outperforming the 8.7% growth seen by stock insurers. This shift helped mutual carriers close the long-standing financial performance gap observed throughout 2024.

Why it matters

Mutual insurers prioritize returning value to policyholders through dividends and claims payments, resulting in higher payout ratios than stock-owned firms. This structure means policyholders often benefit directly from improved underwriting performance and financial strength.

Mutual insurers held $1.27 in surplus per dollar of net premiums in 2025, outpacing the $1.25 held by stock insurers. Mutual carriers also paid out 1.3% of net premiums in policyholder dividends, compared to just 0.1% for stock competitors.

The players

Aon

A global professional services firm that provides risk management and insurance brokerage solutions to corporations and individuals.

NAMIC

The National Association of Mutual Insurance Companies, which represents mutual insurers and advocates for their policyholder-focused business model.

The details

Mutual insurance companies improved their underwriting performance in 2025 after years of facing pressure from inflation and catastrophe losses. By maintaining lower expense and net commission ratios than their stock-based counterparts, these firms were able to allocate more capital toward claims, loss-adjustment expenses, and direct dividends for their policyholders.

2024 saw a wider performance gap between mutual and stock insurers.
2025 marked the period of improved financial results for mutual carriers.
September 28, 2026, was the date the Aon-NAMIC report was released.

Money Landscape

This performance shift marks a departure from the wider gap observed in 2024, highlighting a period of improved underwriting discipline. It situates mutual insurers in a stronger relative position compared to their historical range for surplus growth.

Policyholders at mutual companies may benefit from increased dividend payments or stabilized premiums driven by stronger surplus levels. Consult with a qualified financial professional to review how your specific policy type and provider structure might affect your coverage costs.

The takeaway

Mutual insurers are currently leveraging lower expense ratios to bolster their financial reserves and return capital to policyholders. Policyholders should review their annual insurance statements to see if their provider offers dividend distributions or premium credits.