1. to convert (a mutual organization, such as an insurance company or building society) from a mutual structure into a joint-stock company with shareholders
Usage: finance; business

Examples

• The insurance company decided to demutualize in order to raise capital from investors.
• When the building society demutualizes, members will receive shares in the new public company.
• Several major mutual insurers have chosen to demutualize over the past two decades.
• The board voted to demutualize the organization to compete more effectively in the market.
• After demutualizing, the former mutual became a publicly traded corporation.
• Members of the mutual fund were notified of the plan to demutualize next year.