The Mutual Insurance Group Company: an innovative business model which respects the basic values of mutual insurance
MAAF and MMA were the first to seize the opportunity of the SGAM with the creation of Covéa in 2003.
Like all other competitor companies in the business sector, mutual insurance companies need to merge and cooperate. By law, they cannot call upon the financial markets to do so.
Until 2002, they had few legal instruments at their disposal.
Introduced that same year into French law, the Mutual Insurance Group Company (SGAM) is a legal structure allowing mutual insurance companies or similar companies (mutual health or pension funds) to set up a group, and to display and organise major long-term links of solidarity within it.
The conditions for the membership, commitment and organisation of the SGAM are left to the discretion of the affiliated parties.
The latter are governed by the articles of association of the group thus constituted and by the affiliation agreements signed by and between each of them.
Thanks to the flexibility of the SGAM, each affiliated members can profit from the common power thus created, while maintaining its values of mutual insurance, its own identity, and the pre-eminence of its own interests.
By definition, a SGAM does not provide insurance coverage.