A mutual company is a private firm that is owned by its customers or policyholders. The company\'s customers are also its owners. As such, they are entitled to receive a share of the profits generated by the mutual company. Mutual financial institutions (banks and insurance companies) do not have shareholders. They are owned by depositors and certain borrowers (ownership metrics vary). This means mutual holders run the institution, and the institution is run for the benefit of mutual holders. Mutuals have a social ethos and are part of the fabric of the communities they operate in. Mutual societies do not pay dividends (as they have no shareholders). Profits are reinvested into the business to benefit members and future members.