Demutualization (or demutualisation) is the process by which mutual organizations or companies (mutuals) convert themselves to for-profit (or profit-making) public companies which distribute profits to their shareholders in the form of dividends.Mutualization (or mutualisation) is the opposite process, wherein a public company is converted into a mutual company. Demutualization usually involves the sale or reorganization of a mutual, by its members, to or into a non-mutual company whose shares can be traded on a stock market. This maneuver generally improves the company's access to investment capital, and so increases its value as a viable business
The process of converting a stock insurance company's corporate form of organization to that of a mutual company See also mutual insurance company, demutualization, and stock insurance company