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 2016, life insurance carriers investment portfolio consisted of 75.86% bonds and 11.69% mortgage loans. 33% of the bond portfolio had maturities less than 5 years; 46% had maturities between 5 and 20 years; and 21% 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 2% of the overall investment portfolio for carriers.