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However, in modern times many of these old cooperatives have demutualized and converted into stock companies to pursue higher profits.
Faced with the pressure from its members to demutualise , the corporate strategy is often to reaffirm the commitment to remain a mutual for as long as that format is in the best interests of policyholders.
You don't have to demutualize when you have a strong capital base.
There are disturbing parallels here with the insurance mutuals, building societies and friendly societies that have already demutualised or are actively contemplating demutualisation.
Looking at other mutual insurers that have demutualised in the past, endowment and pension payouts have fallen faster for the quoted companies than for mutual insurers.
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