What type of insurer is owned by stockholders rather than policyholders?

A stock insurer is characterized by its ownership structure, where the company is owned by stockholders, who may or may not be policyholders. The primary goal of a stock insurer is to generate profit for the shareholders, and it operates under the principles of making a profit. Stock insurers issue stock that can be bought and sold, allowing for capital raising and investment from a wide pool of investors.

In contrast, a mutual insurer is owned by the policyholders themselves, meaning that they collectively share in the profits or losses of the company, often receiving dividends when the company performs well. A cooperative insurer, by definition, serves its members and is also based on mutual ownership. A fraternal insurer typically operates under a lodge or society structure, providing insurance to its members who share a common bond, and is also not owned by stockholders in the same way a stock insurer is. This understanding highlights the unique nature of stock insurers in the insurance landscape.