General account

Is an investment vehicle specific to life insurance and endowment contracts. It is capital-guaranteed by the insurer. A minimum interest rate is guaranteed, either annually (the usual case) or for a specific period (as was the case in the 2000s or in Germany). The general account is mainly invested in bonds to minimize risks (and thus the regular capital insurer’s burden) and to facilitate the forecasting and management of the rates of return provided.

Synonyms:

• Euro Fund
• General Euro Account
• Guaranteed Fund

General Assets: includes the various contract premiums as well as the insurer’s own funds.