A.M. Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to "aa" from "aa-" and affirmed the Financial Strength Rating of A+ (Superior) of the members of Pacific Life Group (Pacific Life) (headquartered in Newport Beach, CA): Pacific Life Insurance Co. and Pacific Life & Annuity Co. Additionally, A.M. Best has upgraded the Long-Term ICR to "a" from "a-" for the group's holding company, Pacific LifeCorp (Wilmington, DE). A.M. Best also has upgraded the Long-Term Issue Credit Ratings (Long-Term IR) of Pacific LifeCorp and its operating subsidiaries. The outlook of the Long-Term ICRs and the Long-Term IRs have been revised to stable from positive, while the outlook for the FSR remains stable.
The ratings reflect Pacific Life's balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management (ERM). The rating actions reflect Pacific Life's ability to strengthen its risk-adjusted capitalization through strong and consistent operating performance.
Pacific Life's balance sheet is supported by its historically strong and improving trend in risk-adjusted capitalization, diversified operating profile, strong liquidity resources and solid earnings, which are supported by being one of the industry's leading sales organizations in its key product lines. Pacific Life is a prominent leader in the affluent market segments for individual life insurance and is considered a top-tier writer of life insurance sales, holding leading market positions in universal life, indexed universal life and variable universal life insurance. The company's earnings profile benefits from diversification within the life insurance and retirement services segments, along with the company's aircraft leasing business. Pacific Life's ratings reflect the company's robust ERM program, which puts a strong focus on protecting the balance sheet from event-driven risks.