AM Best Affirms Stable Credit Ratings for Pacific Life Insurance Group

AM Best has affirmed the Financial Strength Ratings of Pacific Life Insurance Company and Pacific Life & Annuity Company at A+ (Superior) and their Long-Term Issuer Credit Ratings at 'aa' (Superior). Additionally, the intermediate holding company, Pacific LifeCorp, received an affirmed Long-Term Issuer Credit Rating of 'a' (Excellent). These ratings come with a stable outlook, reflecting Pacific Life Group's robust financial position and operating performance. The affirmation highlights Pacific Life Group's very strong balance sheet, underpinned by resilient risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio (BCAR). Recent financial management strategies, such as de-risking product liability structures and a robust asset/liability framework, support this strong balance sheet assessment. Pacific Life's favorable business profile is driven by its diverse product offerings spanning life insurance, annuities, and investment services, alongside its reinsurance operations supporting protection, savings, and retirement sectors. The group has achieved strong sales growth through product, distribution, and operational initiatives. Earnings are diversified across consumer markets, institutional, and reinsurance segments. The company employs comprehensive enterprise risk management (ERM) practices focused on safeguarding capital from extreme market and event risks. While earnings are sensitive to financial market changes due to interest rate exposure, the company mitigates risk through hedging strategies and product design enhancements. Key affirmed long-term notes include senior unsecured notes by Pacific LifeCorp maturing between 2033 and 2050, and surplus notes by Pacific Life Insurance Company maturing in 2039 and 2067. The company's short-term commercial paper rating remains at AMB-1+ (Strongest). These affirmations underscore Pacific Life Group's sustained creditworthiness and operational stability within the U.S. insurance market, with a focus on balance sheet strength, risk management, and diversified earnings streams.