Stock Insurer

What Does Stock Insurer Mean?

A stock insurer is an insurance company that operates using the funds from shares held by its stockholders. Its financial goal is to generate profits for these stockholders, typically through the distribution of dividends.

Insuranceopedia Explains Stock Insurer

The capital of a stock insurer consists of funds in the form of shares owned by stockholders. In other words, the stockholders are the owners of the stock insurer. A stock company returns profits to its stockholders through the distribution of dividends.

In addition to the shares of stock, a stock insurer must also maintain surplus or reserve funds. These funds are primarily used to pay claims and cover any other expenses that may arise at the end of a fiscal year.