Which type of insurer is owned by stockholders?

A stock insurer is an insurance company that is owned by stockholders. These stockholders invest capital in the company and, in return, may receive dividends based on the company's profitability. The primary aim of a stock insurer is to generate profits for its stockholders, which distinguishes it from other types of insurers.

In contrast, a mutual insurer is owned by its policyholders, who benefit from any profits made by the insurer in the form of dividends or reduced premiums. A reciprocal insurer involves members who exchange insurance among themselves without a profit motive for shareholders. Lastly, a fraternal insurer is a type of mutual organization that provides insurance to members of a specific social, religious, or ethnic group, focusing on mutual aid rather than profit. These differences clarify why the stock insurer is the only one that operates under stockholder ownership, reinforcing the fundamental distinction of ownership structure in various types of insurance organizations.