Are all mutuals the same? Evidence from CEO turnover in the US property–casualty insurance industry

Jiang CHENG*, David J. CUMMINS, Tzuting LIN

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

2 Citations (Scopus)


Organizational form in insurance has been widely studied in the prior literature. Although researchers have recognized sub-types of stock insurers, mutuals have always been considered as a single homogeneous category. To the extent that mutual sub-types behave differently, considering all mutuals the same can result in misleading conclusions. The present study aims to remedy this gap in the literature by considering the full range of mutual firm types. Mutuals are classified as family-controlled, association-controlled, and pure mutuals with various sub-types within each group. We analyze corporate governance among mutual sub-types in the U.S. property–casualty (P–C) insurance industry by studying CEO turnover, particularly nonroutine turnover. Multinomial probit analysis is used to test for relationships between mutual sub-types and turnover. The principal finding is that all mutuals are not the same. The probability of nonroutine CEO turnover is lowest for family-controlled, non-association mutuals and highest for association-controlled mutuals. Non-association mutuals with family-member CEOs have the lowest turnover rates among all ownership types. Thus, future research should utilize more detailed organizational form categories than the traditional literature.
Original languageEnglish
Pages (from-to)175–205
Number of pages31
JournalGENEVA Risk and Insurance Review
Issue number2
Early online date10 Nov 2020
Publication statusPublished - Sept 2021

Bibliographical note

The online version of this article ( contains supplementary material, which is available to authorized users.

Publisher Copyright:
© 2020, The Author(s), under exclusive licence to Springer Nature Limited part of Springer Nature.


  • Association-controlled insurers
  • CEO turnover
  • Family CEOs
  • Family-controlled insurers
  • G22
  • G32
  • G34
  • Mutuals
  • Property–casualty insurance


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