2018 Financial Overview
Pacific Life Insurance Company reported $120.4 billion in total assets at year‑end 2018, up 5% from the prior year, while net income attributable to shareholders reached $1.5 billion, reflecting strong underwriting discipline and investment results. Premiums written totaled $13.8 billion, with a 3% increase in new business volume driven largely by life and annuity products.
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Key Financial Metrics
Core profitability and solvency indicators remained robust, supporting the company's AAA‑rated credit profile.
| Metric | 2018 | 2017 |
|---|---|---|
| Total Assets | $120.4 billion | $114.6 billion |
| Net Income | $1.5 billion | $1.3 billion |
| Written Premiums | $13.8 billion | $13.4 billion |
| Loss Ratio | 57.2% | 58.1% |
| Combined Ratio | 95.4% | 96.7% |
Revenue Composition
Premium income accounted for 68% of total revenue, while investment income contributed 32%. The investment portfolio, heavily weighted toward fixed‑income securities, delivered a 6.8% return on average invested assets, bolstering overall profitability.
Underwriting Performance
Life insurance underwriting produced a favorable loss ratio of 55.9%, driven by disciplined risk selection and lower claim frequencies. Annuity contracts posted a loss ratio of 60.4%, reflecting higher longevity assumptions and modest expense growth.
Capital Management
Pacific Life maintained a statutory surplus of $9.2 billion, providing a surplus ratio of 7.6% and satisfying regulatory capital adequacy requirements. The company repurchased $350 million of its own stock during the year, signaling confidence in its capital position.
Outlook and Considerations
While 2018 results were solid, future performance hinges on interest‑rate trends, mortality experience, and the competitive landscape for life and annuity products. The firm's strategic focus on digital distribution and product innovation aims to sustain growth in a low‑rate environment.