What is a mutual?

Run by our partners for our partners

A mutual, mutual organisation, or mutual society is an organisation (which is often, but not always, a company or business) based on the principle of mutuality. In the UK, they tend to be companies "limited by guarantee".
Unlike a cooperative, members (or partners) usually do not contribute to the capital of the company by direct investment, but derive their right to profits and votes through their customer relationship.
A mutual organisation or society is often simply referred to as a mutual.
A mutual exists with the purpose of raising funds from its partnership or customers (collectively called its partners), which can then be used to provide common services to all partners of the organisation or society.
A mutual is therefore owned by, and run for the benefit of, its partners - it has no external shareholders to pay in the form of dividends, and as such does not usually seek to maximise and make large profits or capital gains.
Mutuals can be very profitable, like the Nationwide and NFU Mutual in the UK, which translates as significant benefits for mutual partners.
Mutuals are usually run transparently as the partners are the owners.
Mutuals exist for the partners to benefit from the services they provide and often do not pay income tax.
Profits made will usually be re-invested in the mutual for the benefit of the partners, although some profit may also be necessary for internal financing to sustain or grow the organisation, and to make sure it remains safe and secure.
Should PropertyMutual make profits for its partners, they can vote on various ways in which they can distribute those profits:
- Gift to charity.
- Reduced subscriptions.
- Cash bonus.
- Social impact like affordable housing projects or alleviating homelessness.
- etc.

Our Commitment to Mutuality and Charitable Assignment

If you are thinking of joining PropertyMutual & Partners, please take a few minutes to read this IMPORTANT INFORMATION and retain for future reference.

We are fully committed to the principles of mutuality believing that this is the best way of providing sustainable value for money to our partners.

As a mutual we have no shareholders and pay no dividends. We are committed to ensuring that the combined benefits of our mutuality and a low expense ratio are passed on to our property professional partners via keen prices, a wide range of relevant products and good service.

In order to demonstrate our long term commitment and ensure that the service we can provide to our partners is not disrupted by speculators taking out a partnership in the hope of receiving a windfall if we were to demutualise, all new partners joining PropertyMutual must consent to a Charitable Assignment condition. Effectively this means that in the unlikely event of PropertyMutual wishing to de-mutualise, any windfall benefit arising from the partnership you are taking out would be transferred to the PropertyMutual Charitable Trust, or other charity as determined by the Board of Directors, rather than to you as the partner.

You may read the full detail of the current Charitable Assignment condition by clicking the link below. A brief summary of each paragraph is provided below (the full wording of the condition is not limited by this summary).

You agree to transfer to charity any right to windfall benefits on a demutualisation of PropertyMutual.
The charity which would receive those benefits is the PropertyMutual Charitable Trust or other charity as determined by the Board of Directors.
You agree to sign any documents that may be required to enable us to transfer the benefits to the charity.
You allow us to take any steps on your behalf which may be needed to carry out the transfer.
You allow us to provide information about you and your policy to the charity.

Charitable Assignment Condition

This condition forms part of the terms on which your partnership is issued. Words printed in capitals in this condition are explained in paragraph 4 below.

Unless paragraph 3 applies, YOU agree with US and the CHARITY that YOU will transfer to the CHARITY the right to any WINDFALL which YOU would otherwise be entitled to receive in respect of the partnership and any renewal or reissue of it.
To ensure that the agreement YOU have entered into in paragraph 1 can be effectively carried out:
1. YOU authorise US to transfer and WINDFALL direct to the CHARITY;
2. YOU agree to sign any documents and to do anything else which may be needed to transfer any WINDFALL, and YOUR right to receive the WINDFALL, to the CHARITY;
3. YOU appoint US and any of OUR officers and (as a separate appointment) the CHARITY and any of its officers to be YOUR agent to take any of the steps mentioned in b. above on your behalf;
4. YOU authorise US to provide the CHARITY with any information it reasonably requires about YOU and any membership YOU hold with US, and YOU consent to US and the CHARITY holding and processing such information for this purpose;
5. YOU cannot revoke the authority contained in a. or d. above, or the appointment contained in c. above.
Paragraph 1 shall not apply in respect of any WINDFALL which arises from a BUSINESS TRANSFER to any company or other body corporate which is at the time of such transfer OUR subsidiary, in circumstances where such transfer is not in any way related to a DEMUTUALISATION or to any sale or other disposal (or proposed sale or other disposal) of such subsidiary.
In this condition:
1. The “CHARITY” is the PropertyMutual Charitable Trust or, if it ceases to exist, any charity which becomes entitled to the benefit of the agreement YOU have entered into in paragraph1;
2. “BUSINESS TRANSFER” means a transfer of part or all or OUR business to any other person, firm or company;
3. “DEMUTUALISATION” means a change (or proposed change) in OUR constitution or corporate status (whether or not involving or associated with a BUSINESS TRANSFER) which has the effect that WE cease to be a MUTUAL ORGANSIATION;
4. “MUTUAL ORGANISATION” means a company or other body whose constitution limits membership and voting rights wholly or mainly to persons purchasing goods or services or otherwise trading with it;
5. “WE”, “US” and “OUR” refer to CREVALA Ltd and any company or other organisation which becomes entitled to all or part of its business;
6. A “WINDFALL” means any benefit to which YOU become entitled as one of OUR members on or in connection with any future BUSINESS TRANSFER or DEMUTUALISATION;
7. “YOU” and “YOUR” refer to the member.

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Mutuality

Here for the long term, due to charitable assignment.

What is a mutual?

Run by our partners for our partners

Our Commitment to Mutuality and Charitable Assignment

If you are thinking of joining PropertyMutual & Partners, please take a few minutes to read this IMPORTANT INFORMATION and retain for future reference.

PropertyMutual - for the consumer

PropertyMutual - for the professional