Stock Insurer

Published: | Updated: May 25, 2017

Definition - What does Stock Insurer mean?

A stock insurer is an insurance company that operates on the money from the shares held by its stockholders. Its financial aim is to turn out profits for those stockholders through the distribution of dividends.

Insuranceopedia explains Stock Insurer

The capital of a stock insurer is money in the form of shares owned by stockholders. In other words, the owners of a stock insurer are the stockholders themselves. A stock company returns profits to its stockholders when it distributes dividends.

Aside from the shares of stocks, the stock insurer must also have surplus or reserve funds. The latter are especially used to pay claims and any other expense that might need to be taken care of at the end of a fiscal year.

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