AM Best Comments on Credit Ratings of Pacific LifeCorp and Its Rated Insurance Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)--Sep 9, 2019--
AM Best has commented that the Credit Ratings (ratings) of Pacific LifeCorp and its insurance subsidiaries, the members of Pacific Life Group (Pacific Life) (headquartered in Newport Beach, CA): Pacific Life Insurance Company and Pacific Life & Annuity Company, remain unchanged following the announcement of the all-cash sale of their 75.5% share in Aviation Capital Group (ACG) to Tokyo Century Corporation. Tokyo Century Corporation currently has a 24.5% share in ACG, which it acquired in 2017 and subsequently contributed additional equity.
ACG was owned indirectly by Pacific Life, carried as a Schedule BA asset for $1.9 billion on Pacific Life Insurance Company’s statutory statement as of year-end 2018. While the impact to Pacific Life’s balance sheet is material given its size, AM Best notes that the insurer’s risk-adjusted capitalization will remain supportive of its assessment of Pacific Life’s current balance sheet strength and ratings. Existing debt at AGC is non-recourse to Pacific Life. AM Best expects the sale to increase liquidity and available capital to deploy into Pacific Life’s core businesses. The transaction is expected to close in the fourth quarter of 2019.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: FINANCE BANKING PROFESSIONAL SERVICES INSURANCE
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 09/09/2019 05:04 PM/DISC: 09/09/2019 05:04 PM