Fitch Ratings Affs Pacific Life's Rtgs; Assigns 'F1+' CP Rating.Business Editors CHICAGO--(BUSINESS WIRE)--March 13, 2002 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the 'AA+' insurer financial strength ratings of Pacific Life Insurance Company (Pacific Life) and Pacific Life & Annuity Insurance Company. In addition, Fitch has affirmed Pacific Life's 'AA-' surplus note rating. Pacific Life's commercial paper program has been assigned a 'F1+' rating. The 'AA+' rating on the medium-term notes Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. issued by Pacific Life Funding, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , was also affirmed. The Rating Outlook is Stable. Fitch's ratings reflect the organization's strong financial position that includes a solid balance sheet and excellent capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , strong and controlled business growth, broad business diversity and good long-term earnings. Over time, the company has maintained strong profitability through favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. investment results and interest margins, low mortality and solid expense management. Pacific Life's strong balance sheet fundamentals include a high quality asset portfolio and extensive liquidity supported by sound asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. . The balance sheet quality is augmented in Fitch's opinion by a very strong capital position. Fitch's ratings also consider that the company's earnings are exposed to changes in interest rates or stock market performance. While long-term operating trends are considered good, the company's earnings exposure to these external factors can cause modest earnings variability earnings variability Fluctuations in a corporation's net income or earnings per share during a given period. Past earnings variability is generally considered undesirable because it makes investors less certain of future earnings per share and dividends. year-over-year. In addition, Pacific Life's business mix includes highly competitive target markets, which may impact future profit margins and growth prospects. Given the company's interests in the asset accumulation business, Pacific Life competes with other insurance companies, banks and mutual funds. To date, competitive conditions have not adversely impacted the company's financial position. Pacific Life's primary business lines include individual life, institutional products, annuities and mutual funds, asset management and group life and health insurance. In addition, the company owns and operates a broker dealer network with approximately 3,200 agents. Pacific Life beneficially owns approximately 30% of PIMCO PIMCO Pacific Investment Management Company , a leading fixed income investment management organization that has been majority-owned by Allianz AG since May 2000. Recent and future organizational changes, including the transition to a mutual holding company in 1997 and the potential acquisition of the company's ownership interests in PIMCO by Allianz, is not expected to transition the company's focus away from its current disciplined approach. Controlled, profitable growth and strong capitalization are expected to remain in place over the foreseeable future. Entity/Issue/Type Action Rating/Outlook Pacific Life Insurance Company -- Insurer financial strength Affirm 'AA+'/Stable; -- Surplus notes Affirm 'AA-'/Stable; -- Commercial paper Assign 'F1+'. Pacific Life & Annuity Insurance Company -- Insurer financial strength Affirm 'AA+'/Stable. Pacific Life Funding, LLC -- Medium-term notes Affirm 'AA+'/Stable. |
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