Who owns a stock insurance company?

A stock insurance company is owned by shareholders who hold shares of the company's stock. These shareholders have a financial interest in the company and typically expect to earn a profit through dividends or an increase in the value of their shares. This structure differentiates stock insurance companies from mutual insurance companies, which are owned by policyholders.

In a stock insurance company, the governance and major decisions are made by a board of directors, but it is the shareholders who ultimately hold the ownership rights. State governments do not have ownership in stock insurance companies; rather, they regulate them to ensure compliance with insurance laws and protect consumers. This regulation does not equate to ownership. Policyholders have a contractual relationship with the company through the insurance policies they purchase but do not have ownership rights in the company itself. Therefore, the correct understanding of a stock insurance company's ownership clearly identifies shareholders as the owners.