OLDWICK, N.J.--(BUSINESS WIRE)--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.
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