Pacific Life has over $74 billion in assets under management and $5.8 billion in equity as of December 31, 2004. The Investment Management Division has a significant presence in the global capital markets, investing in corporate, municipal, mortgage and asset-backed bonds, preferred stock, and private equity. We are experienced fixed income managers with approximately $26 billion of fixed maturity securities under management as of December 31, 2004.

The Investment Management Division, on behalf of Pacific Life and its subsidiaries, purchases a variety of public and private placement securities and monitors these investments closely to maintain the quality of our underlying assets. We have an experienced team of 28 investment professionals with an average of 17 years investment experience each. Our team includes the Asset/Liability Strategies group, whose members use derivatives to hedge our liabilities and better manage the risks in our portfolio. The Investment Management Division works alongside the Enterprise Risk Management group of the Corporate Division, whose experienced and well-trained staff of 5 values and models our complicated securities and independently focuses on the risk in the portfolio.

Our investment philosophy is to maintain safety of principal, measure and control interest rate risk, and ensure adequate liquidity to satisfy policyholder demands.