An insurance company invests deposits for fixed annuities into their General Account. The General Account is made up of mostly US Treasuries, along with Corporate Bonds, public debt issues, real estate, & some equities.
The exact ratio and makeup of the General Account varies from company to company. But for the consumer, what matters is the interest rate of the annuity and what that particular product is offering. As long as the insurance company is well rated by an independent rating firm, the makeup of the General Account has no meaningful impact on the policy owner.
It is important to know that insurance companies are required to invest enough money into treasuries to be able to cover all guarantees promised in contracts they issue. So any guarantee they have made is mostly backed by treasuries.
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The exact ratio and makeup of the General Account varies from company to company. But for the consumer, what matters is the interest rate of the annuity and what that particular product is offering. As long as the insurance company is well rated by an independent rating firm, the makeup of the General Account has no meaningful impact on the policy owner.
It is important to know that insurance companies are required to invest enough money into treasuries to be able to cover all guarantees promised in contracts they issue. So any guarantee they have made is mostly backed by treasuries.