Participating companies are characterized by what feature?

Participating companies are defined by the fact that they are owned by their policyholders and share their profits with them. This structure allows policyholders not only to hold a stake in the company but also to receive dividends based on the company's financial performance. These dividends represent a distribution of profits that can be used in various ways, such as reducing premium costs, purchasing additional insurance, or taking as cash.

This feature of participatory ownership distinguishes these companies from non-participating ones, which do not share profits in this manner, nor do they provide policyholders with a stake in the company's financial success. Hence, the essence of participating companies lies in their commitment to rewarding those who have invested in them (the policyholders) rather than focusing solely on maximizing profits for outside shareholders.