Pacific Life Awards PIMCO Contract to Manage a Portion of Pacific Life’s General Account Assets

Pacific Life Insurance Company recently awarded PIMCO the opportunity, beginning July 1, to manage a portion of Pacific Life's general account assets. The goal of the contract is to further diversify Pacific Life's investment profile by employing PIMCO's complementary, but different, investment approach. PIMCO will manage an initial investment portfolio of $250 million, with the potential to grow that amount over time. Pacific Life's current bond portfolio is valued at approximately $28 billion.

PIMCO was selected after Pacific Life conducted a comprehensive search involving six of the leading investment firms that have the capability to manage insurance company assets. Unlike total return-oriented investment mandates, insurance company asset management is subject to a number of regulatory, actuarial, and accounting constraints that add several layers of complexity to the process. This new arrangement will give PIMCO the ability to invest for Pacific Life across a full spectrum of fixed income securities.

"Pacific Life is among the first of large life insurance companies to employ this new investment structure," said Mark Holmlund, Pacific Life's Chief Investment Officer. "PIMCO currently manages over $10 billion of Pacific Life policyholder funds within our separate account offerings. This new agreement extends the relationship to our general account insurance products and allows Pacific Life to gain further access to PIMCO's proven investment approach that has allowed them to consistently achieve outstanding results for nearly 40 years."

Elaborating further, Mr. Holmlund stated: "PIMCO's macroeconomic outlook and their significant expertise in a wide variety of research areas, combined with Pacific Life's in-house expertise focused on corporate bonds, private placements, mortgage-backed securities, and commercial mortgages, will make for a powerful combination in providing real value to Pacific Life's policyholders. We are excited to be on the cutting edge of this new investment trend."

According to PIMCO's CEO and co-CIO Mohamed A. El-Erian, "PIMCO is extremely proud and delighted to have been selected by Pacific Life for this important mandate. We greatly welcome this important opportunity to work with Pacific Life, and we look forward to helping them maximize their general account investment returns and value for their policyholders." About Pacific Life Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life also counts more than half of the 100 largest U.S. companies as its clients. For additional company information, including current financial strength ratings, visit Pacific Life online at www.PacificLife.com.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of April 2010 is compiled by Pacific Life using the 2010 FORTUNE 500® list. About PIMCO PIMCO, founded in 1971, is a global asset management firm that manages investments for an array of clients, including retirement and other assets that reach more than 8 million people in the U.S. and millions more around the world. Our clients include state, municipal and union pension and retirement plans whose beneficiaries come from all walks of life, from educators to healthcare workers to public safety employees. We have a substantial individual investor client base, and work in partnership with financial intermediaries such as Registered Investment Advisors, broker/dealers, trust banks and insurance companies. We are also advisors and asset managers to central banks, corporations, universities, foundations and endowments. With offices in North America, Europe, Asia and Australia, we manage investments across a full spectrum of global financial markets. PIMCO is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group, a leading global insurance company.