2021 was a dynamic and eventful year for Pacific Life. The ongoing uncertainties of the COVID-19 pandemic along with a continued low interest rate environment brought challenges. But we met them head on through continued growth and a strong performing investment organization, maintaining Pacific Life’s position of strength for long-term success as a leader in the financial services industry.
The necessity and value of life insurance and retirement income was never made clearer than in 2021. As the global pandemic continued to grip the lives of countless families, individuals and businesses, Pacific Life remained steadfast in ensuring our products provided value and peace of mind as policyholders navigated through an uncertain and unnerving time. Our company and industry were built to manage and respond in times of crisis, backed by a long-term promise that we will be here when you need us the most. The past year was no exception, as Pacific Life paid out more than $3.4 billion in insurance and annuity benefits, a record for the company. We also continue to invest heavily and are committed to the future in our efforts to create a positive impact for our people, our communities, our customers, and our environment. I invite you to learn more about these efforts at www.PacificLife.com.
“ Our company and industry were built to manage and respond in times of crisis, backed by a long-term promise that we will be here when you need us the most. „
Darryl Button, President and Chief Executive Officer
Pacific Life delivered solid 2021 financial results with net income of $1.1 billion, driven by strong investment returns, and partially offset by higher COVID-19- related claims. Our businesses grew substantially while continuing to focus on new initiatives designed to help meet or exceed policyholders’ needs in the future. The retirement solutions business expanded its offerings tailored to registered investment advisors (RIAs) – a rapidly expanding market – with two new products and a concierge experience making it easier for RIAs to integrate annuities into client portfolios.
Our life insurance business continued its momentum as the number one ranked provider of universal life and indexed universal life products. To meet the growing demand from plan sponsors for pension risk-transfer solutions, the institutional business invested in developing new and innovative capabilities and digital initiatives to improve the customer experience. Our global reinsurance operation, Pacific Life Re, continued its support of clients in Europe, Asia, Australia, and North America, through an expansion of analytical proficiency with the creation of a new medical analytics team to help strengthen data science and emerging risk capabilities.
Throughout 2021, we continued our focus on making it easier to do business with Pacific Life by investing in improving the customer experience for both our financial professionals and our policyholders. We once again received DALBAR Service Awards recognizing this service excellence and were named one of the World’s Most Ethical Companies® for the fifth consecutive year. Moody’s upgraded Pacific Life’s financial strength rating in July to Aa3 from A1, reflecting the company’s strong market position, excellent financial strength, and ongoing commitment to risk management discipline and its mutual philosophy. The firm also cited Pacific Life’s top-tier market share in the sale of life insurance and a competitive position in the sale of annuities, both of which have been bolstered by product and distribution diversity.
We are focused on markets and areas that present growth opportunities across our businesses while continuing an unwavering prioritization of the needs of our customers. We continue to operate from a position of strength thanks to a solid balance sheet and well-diversified mix of businesses and will continue to build on this strength by offering exceptional products and services to the distributors and consumers we serve. Throughout the company’s 154-year history, Pacific Life has had an uncompromising focus to remain the partner of choice by meeting the evolving expectations of consumers, advisors and clients. I look forward to continuing this strong legacy as president and CEO of Pacific Life and take great pride in having the opportunity to serve you.
Pacific Life is recognized as a leader in the financial services industry and has experienced tremendous growth in recent years. We surpassed $200 billion in assets under management for the first time in 2021, successfully navigated the COVID-19 pandemic, and saw a marked rise in policyholders who rely on the strength of Pacific Life to help secure financial futures for themselves and their loved ones.
I am honored and humbled to have been elected by the board of directors of Pacific Mutual Holding Company to serve as its Chair, beginning this year. The board works closely with the CEO to set the company’s strategy and oversees and monitors management in executing on that strategy. This model ensures that Pacific Life both optimizes long-term financial returns and maintains its sound financial condition. In particular, the board is charged with protecting the interests of its members, both current and future, enabling the company to honor our commitments to them.
One of the key roles of a board is to select the chief executive officer of the organization. In April 2022, Jim Morris retired after an impressive 40 years of dutiful service to the company, including 15 years as its CEO. Jim’s passion for Pacific Life, the insurance industry, and the value our products and solutions provide is unmatched. He successfully steered Pacific Life through significant economic challenges, all while building a culture focused on customer service, growth, innovation, and above all else, high moral and ethical character. On behalf of the board, thank you to Jim for his exceptional leadership as chairman, president and CEO. Jim leaves a strong legacy and an organization well-positioned for the future. We look forward to his continued service on our board over the course of the next year.
“ On behalf of the board, thank you to Jim for his exceptional leadership as chairman, president and CEO. „
Mariann Byerwalter, chair, Pacific Mutual Holding Company
The board is highly confident in Darryl Button, who became Pacific Life’s 15th president and CEO on April 1, 2022. Darryl is the right person at the right time to successfully lead Pacific Life. His industry knowledge, strategic vision, and corporate stewardship, exemplified in the value he’s added to the organization since joining Pacific Life as chief financial officer in 2017, makes him ideally suited to continue Pacific Life’s growth in our chosen markets.
Maria Teresa Tejada, expert partner in the global financial services practice at Bain & Company, joined the board in August. Ms. Tejada’s experiences in financial services, risk management, and transformational change are a critical asset as we continue to accelerate Pacific Life’s digital capabilities and look to evolve how we serve our policyholders.
As a mutual holding company, we have the benefit of long horizon thinking, which aligns with our products and services, and allows us to invest in and focus on the needs of the future. This focus benefits our policyholders, and on behalf of the board, we thank you for the trust and confidence you’ve placed in Pacific Life.