Assets held by life insurers back the companies' life, annuity, and health liabilities. Accumulating these assets, via the collection of premiums from policyholders and earnings on investments, provides the U.S. economy with a important source of investment capital.
At the end of 2008, life insurers held $4.6 trillion in total assets. Ninety-two percent of the industry's total assets are invested in the U.S. economy; 8% are held in foreign investments.
Life insurers' assets are distributed among all segments of our economy:
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42% are in corporate bonds
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24% are in stocks
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14% are in government and agency bonds
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7% are in commercial mortgages
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12% are in other assets