Where Are Premiums From Fixed Annuities Invested?

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   Steve Savant

   Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

   Life and annuity companies generally purchase investment grade government bonds as their dominant portfolio position. Similar to a bank, an insurance company attempts to generate a return from their portfolio, keep a portion of that return for their profit margin and pass on the rest to it's policy holder.

   Answered on September 14, 2013

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