Pacific Life Offers Insured LDI Solution

February 8, 2011 ( - Pacific Life has introduced Insured LDI, a liability-driven investment strategy that provides a guarantee to match the liability benchmark.

“From an economic perspective, the cash flow schedule associated with Insured LDI will match the cash flows of the plan’s pension benefit obligation as provided by the plan sponsor. From an accounting perspective, the valuation of the asset (the Insured LDI contract), and the related liability (the pension benefit obligation), move together with changes in discount rates since both are valued using the same discount curve. This mitigates unexpected shifts in funding status, thereby reducing balance sheet and income statement volatility for the plan sponsor,” said Dave Fanger, director, Institutional & Structured Products, Retirement Solutions Division, in a press release.  

“Insured LDI provides contractholder options to amend cash flows, take additional withdrawals, annuitize, or terminate prior to maturity. Contract value is based on an externally published discount curve, and separately paid fees are clearly disclosed. All transactions are at contract value with no hidden fees or surrender charges,” added Richard Taube, vice president, Institutional & Structured Products, Retirement Solutions Division.  

Marketing materials and additional information regarding Insured LDI are available at under the Institutional Products section.