What is the typical makeup of a carriers general account?

Note that every carrier’s investment strategy is different but, typically, the general account portfolio predominantly consists of investment-grade bonds and mortgages. According to SNL Financial as of year-end 2011, life insurance carriers investment portfolio consisted of 77.5% bonds and 9.9% mortgage loans. 36% of the bond portfolio had maturities less than 5 years; 44% had maturities between 5 and 20 years; and 20% had maturities greater than 20 years.

Note that due to volatility, common stock and other equity investments are limited in the general account and last year comprised less than 5% of the overall investment portfolio for carriers.