N-VPFS 1 tm249717d1_nvpfs.htm N-VPFS

 

TABLE OF CONTENTS

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT  
   
Investments SA-1
Financial Statements:  
      Statements of Assets and Liabilities SA-5
      Statements of Operations SA-16
      Statements of Changes in Net Assets SA-27
Financial Highlights SA-60
Notes to Financial Statements SA-78
Report of Independent Registered Public Accounting Firm SA-84

 

 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

INVESTMENTS

DECEMBER 31, 2023

 

    Each variable account invests in shares of the corresponding portfolio (with the same name). The shares owned and value of investments as of December 31, 2023; and the cost of purchases and proceeds from sales of investments for the year or period ended December 31, 2023, were as follows:

 

           Cost of   Proceeds 
Variable Accounts  Shares Owned   Value   Purchases   from Sales 
Core Income Class I *   864,480   $10,358,538   $6,615,295   $1,749,809 
Core Income Class P *   2,284    27,851    28,981    2,381 
Diversified Bond Class I *   7,380,484    74,295,915    10,927,915    8,625,907 
Diversified Bond Class P *   449,509    6,164,820    3,408,726    274,895 
Floating Rate Income Class I *   2,124,862    32,793,292    2,606,147    6,735,949 
Floating Rate Income Class P *   65,472    1,030,810    489,124    146,216 
High Yield Bond Class I *   8,347,839    83,060,035    25,251,986    22,225,468 
High Yield Bond Class P *   119,543    1,314,277    1,584,431    857,325 
Inflation Managed Class I *   6,255,650    75,484,936    12,798,756    6,079,577 
Inflation Managed Class P *   132,949    1,838,539    1,553,986    659,943 
Intermediate Bond Class P *   211,132    1,947,377    2,025,501    397,879 
Managed Bond Class I *   18,975,081    256,568,386    12,660,322    23,194,174 
Managed Bond Class P *   293,191    4,414,624    2,347,993    409,368 
Short Duration Bond Class I *   8,168,861    87,520,247    17,151,156    8,750,651 
Short Duration Bond Class P *   408,117    4,590,945    2,684,499    658,724 
Emerging Markets Debt Class I *   458,844    5,696,946    231,709    250,896 
Emerging Markets Debt Class P *   11,150    141,632    52,836    10,619 
Dividend Growth Class I *   2,913,637    108,999,250    3,536,330    10,657,314 
Dividend Growth Class P *   92,566    3,837,819    2,305,033    385,832 
Equity Index Class I *   9,427,824    1,155,074,123    55,777,393    58,948,391 
Equity Index Class P *   1,537,124    196,450,621    87,414,531    9,067,416 
Focused Growth Class I *   756,864    43,579,942    2,259,081    5,045,020 
Growth Class I *   5,166,290    312,633,530    805,009    20,661,937 
Growth Class P *   97,722    6,445,565    2,383,145    303,480 
Hedged Equity Class P *   394,740    4,453,237    3,074,356    1,043,290 
Large-Cap Core Class I *   3,413,333    236,408,009    2,249,816    19,275,676 
Large-Cap Core Class P *   24,002    1,868,674    1,045,833    305,214 
Large-Cap Growth Class I *   3,987,607    88,537,806    11,424,204    7,500,250 
Large-Cap Growth Class P *   40,410    1,066,844    805,095    130,686 
Large-Cap Value Class I *   4,429,029    163,459,688    5,432,597    12,674,776 
Large-Cap Value Class P *   82,927    3,391,949    1,096,638    326,275 
Mid-Cap Equity Class I *   4,558,550    148,700,091    5,769,181    7,557,305 
Mid-Cap Growth Class I *   3,191,638    84,764,812    5,572,645    5,487,542 
Mid-Cap Growth Class P *   42,392    1,246,342    525,932    119,404 
Mid-Cap Value Class I *   754,744    22,329,567    2,330,780    2,003,002 
Mid-Cap Value Class P *   15,989    706,446    463,876    182,461 
Small-Cap Equity Class I *   1,046,549    31,098,842    3,271,811    1,609,347 
Small-Cap Equity Class P *   20,034    783,956    235,748    158,964 
Small-Cap Growth Class I *   864,454    23,132,242    7,674    1,930,088 
Small-Cap Index Class I *   7,505,516    243,169,677    5,449,011    10,503,015 
Small-Cap Index Class P *   777,538    25,780,722    11,433,734    679,182 
Small-Cap Value Class I *   2,600,285    71,691,604    2,314,680    5,118,807 
Small-Cap Value Class P *   32,142    1,089,550    758,937    311,246 
Value Class I *   3,217,003    64,969,594    1,914,141    3,309,507 
Value Class P *   17,706    413,063    213,636    50,572 
Value Advantage Class I *   407,249    10,453,175    1,020,931    4,680,250 
Value Advantage Class P *   59,492    1,559,950    463,272    263,112 
Emerging Markets Class I *   8,002,570    144,225,895    9,056,500    10,310,312 
Emerging Markets Class P *   225,008    4,240,923    2,466,272    326,922 
International Growth Class P *   39,785    354,181    557,521    226,619 
International Large-Cap Class I *   18,001,272    249,556,981    14,142,650    15,386,706 
International Large-Cap Class P *   324,482    4,884,132    2,903,305    475,328 
International Small-Cap Class I *   3,050,297    39,377,622    1,397,854    1,895,268 
International Small-Cap Class P *   64,304    1,155,762    332,109    86,056 

 

See Notes to Financial StatementsSA-1See explanation of symbol on page SA-4

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

INVESTMENTS (Continued)

DECEMBER 31, 2023

               

           Cost of   Proceeds 
Variable Accounts  Shares Owned   Value   Purchases   from Sales 
International Value Class I *   8,884,520   $150,403,476   $1,996,986   $12,530,299 
Health Sciences Class I *   1,366,534    86,173,588    2,170,737    9,387,649 
Health Sciences Class P *   28,770    2,007,819    684,203    543,916 
Real Estate Class I *   2,696,317    90,497,793    3,681,149    4,899,139 
Real Estate Class P *   2,305    81,529    53,434    28,427 
Technology Class I *   2,961,884    48,109,835    4,821,614    6,522,505 
Technology Class P *   110,562    2,296,425    642,233    151,784 
ESG Diversified Class P *   14,208    147,604    145,640    33,781 
ESG Diversified Growth Class P *   129,549    1,266,969    980,160    270,890 
PSF Avantis Balanced Allocation Class D *   713,167    11,678,161    967,655    1,595,088 
PSF Avantis Balanced Allocation Class P *   58,838    973,693    298,604    199,198 
Pacific Dynamix - Conservative Growth Class I *   821,234    16,291,503    495,738    1,388,227 
Pacific Dynamix - Conservative Growth Class P *   412,092    8,243,505    4,582,589    1,696,604 
Pacific Dynamix - Moderate Growth Class I *   2,667,036    72,123,471    2,618,409    4,002,085 
Pacific Dynamix - Moderate Growth Class P *   1,957,883    53,394,148    20,211,756    8,491,185 
Pacific Dynamix - Growth Class I *   3,893,097    125,134,040    7,831,901    10,168,870 
Pacific Dynamix - Growth Class P *   1,401,891    45,440,329    19,034,336    4,740,921 
Portfolio Optimization Conservative Class I *   904,619    13,065,465    1,214,086    2,635,384 
Portfolio Optimization Conservative Class P *   1,194    17,394    3,602    44,704 
Portfolio Optimization Moderate-Conservative Class I *   2,824,976    47,484,644    1,053,395    3,003,587 
Portfolio Optimization Moderate-Conservative Class P *   11,160    189,168    275,516    125,367 
Portfolio Optimization Moderate Class I *   11,608,230    223,772,803    3,183,597    18,909,452 
Portfolio Optimization Moderate Class P *   42,914    834,183    322,057    120,229 
Portfolio Optimization Growth Class I *   17,179,817    369,511,041    3,984,942    21,302,051 
Portfolio Optimization Growth Class P *   167,125    3,624,722    1,089,785    284,954 
Portfolio Optimization Aggressive-Growth Class I *   8,102,110    185,185,897    2,537,676    13,362,054 
Portfolio Optimization Aggressive-Growth Class P *   105,762    2,437,601    524,475    251,428 
Invesco® V.I. Discovery Mid Cap Growth Series I *   37    2,316    3,466    1,339 
Invesco® V.I. EQV International Equity Series I   67,726    2,308,779    742,367    147,511 
Invesco® V.I. EQV International Equity Series II   957,497    32,047,430    3,637,130    2,603,824 
Invesco® V.I. Global Series I   65,551    2,396,556    873,604    162,225 
Invesco® V.I. Global Series II   416,186    14,774,591    3,475,291    5,734,046 
Invesco® V.I. Main Street Small Cap Fund® Series I   458,732    12,344,491    5,602,024    456,770 
American Century Inflation Protection Class I   3,131    29,402    16,155    3,735 
American Century VP Mid Cap Value Class I   106,106    2,062,696    1,002,115    132,374 
American Century VP Mid Cap Value Class II   2,152,494    41,909,067    8,114,482    2,940,904 
American Funds IS American High-Income Trust Class 2   185,851    1,622,483    991,129    284,317 
American Funds IS Asset Allocation Class 2   1,169,567    27,519,917    11,476,570    1,633,657 
American Funds IS Asset Allocation Class 4   4,381,198    102,257,160    14,582,283    4,318,727 
American Funds IS Capital World Bond Class 2 *   5,115    51,304    32,890    1,864 
American Funds IS Growth Class 2   193,182    18,970,449    7,371,827    940,830 
American Funds IS Growth Class 4   1,692,022    161,926,503    17,248,908    13,202,233 
American Funds IS Growth-Income Class 2   213,485    12,446,162    4,377,862    564,572 
American Funds IS Growth-Income Class 4   2,207,316    126,567,526    10,669,187    9,076,239 
American Funds IS International Class 2   163,213    2,841,542    1,065,893    341,325 
American Funds IS New World Fund® Class 2   104,428    2,628,449    760,227    322,661 
BlackRock® 60/40 Target Allocation ETF V.I. Class I   1,818,456    24,094,541    4,989,121    3,092,721 
BlackRock® Basic Value V.I. Class III   2,214,264    28,276,155    4,669,151    2,701,722 
BlackRock® Global Allocation V.I. Class I   374,306    6,104,930    3,846,376    299,295 
BlackRock® Global Allocation V.I. Class III   5,399,689    70,357,942    3,720,795    4,999,646 
BNY Mellon VIF Appreciation Service Shares   149,842    5,136,596    3,487,109    1,718,352 
DFA VA International Small Institutional Class   477,487    5,672,545    3,150,826    481,630 
DFA VA International Value Institutional Class   214,873    2,924,415    1,905,095    907,983 
DFA VA Short-Term Fixed Institutional Class   789,427    7,917,954    6,109,595    1,501,792 
DFA VA US Large Value Institutional Class   195,746    6,369,577    3,869,833    1,105,221 
DFA VA US Targeted Value Institutional Class   182,051    4,114,359    2,506,371    746,024 
Fidelity® VIP Bond Index Initial Class   2,438,898    23,584,139    18,689,870    3,061,624 
Fidelity® VIP Bond Index Service Class 2   474,456    4,569,012    3,000,108    433,267 

 

See Notes to Financial StatementsSA-2See explanation of symbol on page SA-4

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

INVESTMENTS (Continued)

DECEMBER 31, 2023                

 

           Cost of   Proceeds 
Variable Accounts  Shares Owned   Value   Purchases   from Sales 
Fidelity® VIP Contrafund® Initial Class   53,839   $2,618,170   $1,101,688   $282,943 
Fidelity® VIP Contrafund® Service Class 2   1,885,976    88,320,256    6,981,751    6,986,933 
Fidelity® VIP Freedom 2010 Portfolio℠ Service Class 2   99,268    1,113,790    590,093    403,364 
Fidelity® VIP Freedom 2015 Portfolio℠ Service Class 2   234,694    2,677,858    251,179    138,270 
Fidelity® VIP Freedom 2020 Portfolio℠ Service Class 2   450,998    5,592,375    403,968    955,824 
Fidelity® VIP Freedom 2025 Portfolio℠ Initial Class   17,441    264,573    213,585    46,986 
Fidelity® VIP Freedom 2025 Portfolio℠ Service Class 2   938,273    14,083,478    1,258,211    1,757,927 
Fidelity® VIP Freedom 2030 Portfolio℠ Initial Class   41,587    638,772    502,685    382,034 
Fidelity® VIP Freedom 2030 Portfolio℠ Service Class 2   1,036,285    15,803,347    2,435,790    2,335,621 
Fidelity® VIP Freedom 2035 Portfolio℠ Initial Class   157,632    4,096,845    1,800,264    413,646 
Fidelity® VIP Freedom 2035 Portfolio℠ Service Class 2   645,780    16,609,469    2,803,627    2,387,764 
Fidelity® VIP Freedom 2045 Portfolio℠ Initial Class   181,582    4,577,691    2,443,377    436,534 
Fidelity® VIP Freedom 2045 Portfolio℠ Service Class 2   728,685    18,202,543    3,564,440    2,020,560 
Fidelity® VIP Freedom 2055 Portfolio℠ Initial Class   1,087    13,843    11,238    3,809 
Fidelity® VIP Freedom Income Portfolio℠ Initial Class   24,541    269,215    158,322    90,918 
Fidelity® VIP Freedom Income Portfolio℠ Service Class 2   179,200    1,956,863    650,056    1,107,227 
Fidelity® VIP Government Money Market Service Class   287,113,646    287,113,646    191,271,746    201,761,161 
Fidelity® VIP Growth Initial Class   2,082    193,873    106,731    1,420 
Fidelity® VIP Growth Service Class 2   654,538    58,856,051    19,823,324    5,414,443 
Fidelity® VIP International Index Initial Class   2,194,762    23,286,428    13,353,754    1,237,619 
Fidelity® VIP International Index Service Class 2   389,468    4,112,784    2,776,086    708,637 
Fidelity® VIP Mid Cap Initial Class   115,237    4,199,229    1,680,051    272,125 
Fidelity® VIP Mid Cap Service Class 2   1,279,184    44,374,906    3,700,094    1,721,330 
Fidelity® VIP Total Market Index Initial Class   3,701,818    63,893,378    26,581,196    6,052,091 
Fidelity® VIP Total Market Index Service Class 2   390,136    6,706,434    3,183,337    711,626 
Fidelity® VIP Value Strategies Service Class 2   766,473    12,838,431    1,593,702    2,685,030 
Templeton Foreign VIP Class 1   61,707    899,065    335,884    164,416 
Templeton Foreign VIP Class 2   1,359,805    19,363,617    2,647,913    3,948,061 
Templeton Global Bond VIP Class 1 *   38,220    518,647    260,968    81,020 
Templeton Global Bond VIP Class 2 *   1,718,868    22,070,260    1,287,685    1,640,456 
Goldman Sachs VIT Multi-Strategy Alternatives Institutional Shares   5,761    51,157    53,374    1,802 
Janus Henderson Enterprise Institutional Shares   10,862    831,127    399,238    97,764 
Janus Henderson Enterprise Service Shares   469,128    32,074,260    4,864,572    7,640,307 
Janus Henderson Overseas Institutional Shares   30,613    1,287,869    777,926    204,878 
Janus Henderson Overseas Service Shares   677,502    27,154,275    1,961,601    2,045,500 
Lazard Retirement Global Dynamic Multi-Asset Investor Shares   24,138    290,382    64,819    37,159 
Lazard Retirement Global Dynamic Multi-Asset Service Shares   119,590    1,432,683    183,557    183,067 
Lazard Retirement International Equity Service Shares   291,193    2,646,943    399,404    336,430 
ClearBridge Variable Aggressive Growth - Class I   21,500    368,072    135,208    75,632 
ClearBridge Variable Aggressive Growth - Class II   1,500,727    24,852,033    3,916,516    1,739,712 
ClearBridge Variable Mid Cap - Class I   88,584    2,021,492    421,443    187,389 
ClearBridge Variable Mid Cap - Class II   591,261    13,344,766    634,088    1,337,296 
ClearBridge Variable Small Cap Growth - Class I *   61,270    1,675,731    934,110    151,175 
Western Asset Variable Global High Yield Bond - Class I   92,868    559,067    624,026    79,012 
Western Asset Variable Global High Yield Bond - Class II   108,390    678,523    160,972    245,990 
Lord Abbett Bond Debenture Class VC   2,457,821    25,364,713    5,234,381    1,237,915 
Lord Abbett Developing Growth Class VC *   533,159    12,774,481    -    1,433,183 
Lord Abbett Fundamental Equity Class VC   410,181    6,886,933    515,874    539,337 
Lord Abbett Total Return Class VC   5,966,442    84,723,473    12,479,453    8,158,620 
M Capital Appreciation   3,357,566    82,025,328    11,060,073    3,816,292 
M International Equity   6,579,381    89,413,794    11,040,015    4,530,220 
M Large Cap Growth   2,856,958    83,023,210    9,846,404    6,767,683 
M Large Cap Value   2,945,190    43,205,934    7,160,065    6,706,252 
MFS® New Discovery Series - Initial Class *   148,589    1,922,741    537,337    208,692 
MFS® New Discovery Series - Service Class *   2,251,558    22,740,734    2,234,946    2,721,914 
MFS® Total Return Series - Initial Class   56,255    1,308,497    421,890    166,961 
MFS® Utilities Series - Initial Class   4,008    129,255    95,328    45,991 
MFS® Utilities Series - Service Class   442,535    13,957,542    2,037,089    2,769,598 

 

See Notes to Financial StatementsSA-3See explanation of symbol on page SA-4

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

INVESTMENTS (Continued)

DECEMBER 31, 2023

           

           Cost of   Proceeds 
Variable Accounts  Shares Owned   Value   Purchases   from Sales 
MFS® Value Series - Initial Class   265,209   $5,640,995   $2,338,862   $363,205 
MFS® Value Series - Service Class   1,462,635    30,291,172    5,708,104    3,104,624 
MFS® Government Securities - Initial Class   6,069    65,975    68,585    2,782 
MFS® Research International - Initial Class   4,587    77,423    38,241    4,239 
MFS® Blended Research® Small Cap Equity - Initial Class   4,089    40,927    32,010    1,783 
MFS® Global Real Estate - Initial Class   2,984    39,029    20,256    5,737 
Neuberger Berman Sustainable Equity Class I   69,145    2,305,992    1,233,251    877,003 
PIMCO CommodityRealReturn® Strategy - Institutional Class   3,095    16,464    14,575    2,322 
PIMCO Global Managed Asset Allocation - Advisor Class   716,640    6,736,413    1,451,506    1,328,340 
PIMCO Global Managed Asset Allocation - Institutional Class   19,397    180,783    113,972    85,579 
PIMCO Income - Administrative Class   1,094,743    10,892,694    14,154,972    17,277,240 
Royce Micro-Cap Service Class *   432,470    3,840,335    656,279    843,635 
State Street Total Return V.I.S. Class 3   178,309    2,628,273    284,012    112,013 
T. Rowe Price Blue Chip Growth - I *   288,690    13,334,602    4,320,352    1,400,705 
T. Rowe Price Blue Chip Growth - II *   3,870,138    168,505,801    9,927,434    16,069,082 
T. Rowe Price Equity Income - I   220,501    6,121,110    3,078,992    609,382 
T. Rowe Price Equity Income - II   3,498,219    96,515,875    7,903,364    5,215,636 
VanEck VIP Global Resources Initial Class   1,066,238    28,351,275    4,367,297    5,198,978 
Vanguard® VIF Global Bond Index  *   14,814    275,531    307,690    46,328 
Vanguard® VIF High Yield Bond   741,443    5,464,439    3,100,283    535,855 
Vanguard® VIF Mid-Cap Index   1,391,647    33,302,124    14,993,795    862,775 
Vanguard® VIF Real Estate Index   607,617    7,242,791    3,500,042    832,349 
Vanguard® VIF Total Bond Market Index   159,830    1,698,993    1,527,770    504,704 
Vanguard® VIF Total Stock Market Index   9,339    461,825    421,711    30,756 

 

* The variable account did not receive any dividend or capital gain distributions from its underlying portfolio during the reporting period.                                

 

See Notes to Financial StatementsSA-4

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES

DECEMBER 31, 2023      

 

   Variable Accounts 
   Core   Core   Diversified   Diversified   Floating   Floating 
   Income   Income   Bond   Bond   Rate Income   Rate Income 
   Class I   Class P   Class I   Class P   Class I   Class P 
ASSETS                              
Investments in mutual funds, at value  $10,358,538   $27,851   $74,295,915   $6,164,820   $32,793,292   $1,030,810 
Receivables:                              
Due from Pacific Life Insurance Company   4,373    -    -    3,272    57,271    20,774 
Investments sold   -    -    7,347    -    -    - 
Total Assets   10,362,911    27,851    74,303,262    6,168,092    32,850,563    1,051,584 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    7,319    -    -    - 
Investments purchased   4,375    -    -    3,273    57,274    20,773 
Total Liabilities   4,375    -    7,319    3,273    57,274    20,773 
NET ASSETS  $10,358,536   $27,851   $74,295,943   $6,164,819   $32,793,289   $1,030,811 
Units Outstanding   859,138    2,807    4,348,153    659,653    2,125,736    81,867 
Accumulation Unit Value  $12.06   $9.92   $17.09   $9.35   $15.43   $12.59 
Cost of Investments  $10,126,318   $26,734   $78,791,255   $6,338,085   $28,014,213   $946,220 

 

   High Yield   High Yield   Inflation   Inflation   Intermediate   Managed 
   Bond   Bond   Managed   Managed   Bond   Bond 
   Class I   Class P   Class I   Class P   Class P   Class I 
ASSETS                              
Investments in mutual funds, at value  $83,060,035   $1,314,277   $75,484,936   $1,838,539   $1,947,377   $256,568,386 
Receivables:                              
Due from Pacific Life Insurance Company   10,228    412    6,424    28,677    4,991    - 
Investments sold   -    -    -    -    -    6,666 
Total Assets   83,070,263    1,314,689    75,491,360    1,867,216    1,952,368    256,575,052 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    6,646 
Investments purchased   10,098    412    6,517    28,678    4,991    - 
Total Liabilities   10,098    412    6,517    28,678    4,991    6,646 
NET ASSETS  $83,060,165   $1,314,277   $75,484,843   $1,838,538   $1,947,377   $256,568,406 
Units Outstanding   887,306    112,518    1,083,563    168,959    192,026    3,476,149 
Accumulation Unit Value  $93.61   $11.68   $69.66   $10.88   $10.14   $73.81 
Cost of Investments  $77,423,853   $1,239,913   $69,519,260   $1,789,711   $1,870,450   $239,795,418 

 

   Managed   Short Duration   Short Duration   Emerging   Emerging   Dividend 
   Bond   Bond   Bond   Markets Debt   Markets Debt   Growth 
   Class P   Class I   Class P   Class I   Class P   Class I 
ASSETS                              
Investments in mutual funds, at value  $4,414,624   $87,520,247   $4,590,945   $5,696,946   $141,632   $108,999,250 
Receivables:                              
Due from Pacific Life Insurance Company   1,293    22,726    1    71    -    - 
Investments sold   -    -    -    -    -    16,355 
Total Assets   4,415,917    87,542,973    4,590,946    5,697,017    141,632    109,015,605 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    16,157 
Investments purchased   1,293    22,519    -    78    -    - 
Total Liabilities   1,293    22,519    -    78    -    16,157 
NET ASSETS  $4,414,624   $87,520,454   $4,590,946   $5,696,939   $141,632   $108,999,448 
Units Outstanding   447,120    6,133,357    437,731    448,848    14,049    1,893,598 
Accumulation Unit Value  $9.87   $14.27   $10.49   $12.69   $10.08   $57.56 
Cost of Investments  $4,284,053   $85,564,231   $4,421,793   $5,518,743   $131,348   $57,343,502 

 

See Notes to Financial StatementsSA-5

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2023      

 

   Variable Accounts 
   Dividend   Equity   Equity   Focused         
   Growth   Index   Index   Growth   Growth   Growth 
   Class P   Class I   Class P   Class I   Class I   Class P 
ASSETS                              
Investments in mutual funds, at value  $3,837,819   $1,155,074,123   $196,450,621   $43,579,942   $312,633,530   $6,445,565 
Receivables:                              
Due from Pacific Life Insurance Company   33,341    73,802    765,766    -    20,110    4,612 
Investments sold   -    -    -    32,837    -    - 
Total Assets   3,871,160    1,155,147,925    197,216,387    43,612,779    312,653,640    6,450,177 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    32,811    -    - 
Investments purchased   33,342    73,807    765,791    -    19,949    4,617 
Total Liabilities   33,342    73,807    765,791    32,811    19,949    4,617 
NET ASSETS  $3,837,818   $1,155,074,118   $196,450,596   $43,579,968   $312,633,691   $6,445,560 
Units Outstanding   237,555    4,742,868    10,938,798    624,081    1,372,312    381,864 
Accumulation Unit Value  $16.16   $243.54   $17.96   $69.83   $227.82   $16.88 
Cost of Investments  $3,493,276   $496,344,572   $171,091,125   $23,372,495   $128,354,504   $5,632,373 

 

   Hedged   Large-Cap   Large-Cap   Large-Cap   Large-Cap   Large-Cap 
   Equity   Core   Core   Growth   Growth   Value 
   Class P   Class I   Class P   Class I   Class P   Class I 
ASSETS                              
Investments in mutual funds, at value  $4,453,237   $236,408,009   $1,868,674   $88,537,806   $1,066,844   $163,459,688 
Receivables:                              
Due from Pacific Life Insurance Company   29,315    -    15,658    -    -    - 
Investments sold   -    14,869    -    33,817    -    3,265 
Total Assets   4,482,552    236,422,878    1,884,332    88,571,623    1,066,844    163,462,953 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    14,834    -    33,745    -    2,482 
Investments purchased   29,314    -    15,658    -    -    - 
Total Liabilities   29,314    14,834    15,658    33,745    -    2,482 
NET ASSETS  $4,453,238   $236,408,044   $1,868,674   $88,537,878   $1,066,844   $163,460,471 
Units Outstanding   394,371    1,120,006    113,652    2,385,505    78,180    2,873,762 
Accumulation Unit Value  $11.29   $211.08   $16.44   $37.11   $13.65   $56.88 
Cost of Investments  $4,133,017   $89,963,612   $1,673,363   $69,279,309   $851,448   $84,143,031 

  

   Large-Cap   Mid-Cap   Mid-Cap   Mid-Cap   Mid-Cap   Mid-Cap 
   Value   Equity   Growth   Growth   Value   Value 
   Class P   Class I   Class I   Class P   Class I   Class P 
ASSETS                              
Investments in mutual funds, at value  $3,391,949   $148,700,091   $84,764,812   $1,246,342   $22,329,567   $706,446 
Receivables:                              
Due from Pacific Life Insurance Company   72    -    17,652    63    -    116 
Investments sold   -    16,010    -    -    25,896    - 
Total Assets   3,392,021    148,716,101    84,782,464    1,246,405    22,355,463    706,562 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    15,526    -    -    25,939    - 
Investments purchased   72    -    17,942    64    -    115 
Total Liabilities   72    15,526    17,942    64    25,939    115 
NET ASSETS  $3,391,949   $148,700,575   $84,764,522   $1,246,341   $22,329,524   $706,447 
Units Outstanding   208,457    1,713,717    1,999,781    76,731    386,436    43,085 
Accumulation Unit Value  $16.27   $86.77   $42.39   $16.24   $57.78   $16.40 
Cost of Investments  $3,016,472   $93,399,053   $82,520,113   $1,183,702   $15,869,790   $630,232 

 

See Notes to Financial StatementsSA-6

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2023                  

 

   Variable Accounts 
   Small-Cap   Small-Cap   Small-Cap   Small-Cap   Small-Cap   Small-Cap 
   Equity   Equity   Growth   Index   Index   Value 
   Class I   Class P   Class I   Class I   Class P   Class I 
ASSETS                        
Investments in mutual funds, at value  $31,098,842   $783,956   $23,132,242   $243,169,677   $25,780,722   $71,691,604 
Receivables:                              
Due from Pacific Life Insurance Company   -    684    -    46,835    64,516    15,190 
Investments sold   33,721    -    215    -    -    - 
Total Assets   31,132,563    784,640    23,132,457    243,216,512    25,845,238    71,706,794 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   33,602    -    35    -    -    - 
Investments purchased   -    684    -    47,458    64,524    15,123 
Total Liabilities   33,602    684    35    47,458    64,524    15,123 
NET ASSETS  $31,098,961   $783,956   $23,132,422   $243,169,054   $25,780,714   $71,691,671 
Units Outstanding   648,870    50,512    499,467    4,230,079    1,779,220    1,024,687 
Accumulation Unit Value  $47.93   $15.52   $46.31   $57.49   $14.49   $69.96 
Cost of Investments  $24,202,170   $736,844   $8,974,996   $164,962,611   $24,044,597   $51,875,854 

 

   Small-Cap           Value   Value   Emerging 
   Value   Value   Value   Advantage   Advantage   Markets 
   Class P   Class I   Class P   Class I   Class P   Class I 
ASSETS                        
Investments in mutual funds, at value  $1,089,550   $64,969,594   $413,063   $10,453,175   $1,559,950   $144,225,895 
Receivables:                              
Due from Pacific Life Insurance Company   15,375    -    46    2,189    11,870    2,160 
Investments sold   -    8,893    -    -    -    - 
Total Assets   1,104,925    64,978,487    413,109    10,455,364    1,571,820    144,228,055 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    8,542    -    -    -    - 
Investments purchased   15,374    -    47    2,192    11,870    2,375 
Total Liabilities   15,374    8,542    47    2,192    11,870    2,375 
NET ASSETS  $1,089,551   $64,969,945   $413,062   $10,453,172   $1,559,950   $144,225,680 
Units Outstanding   74,326    1,951,447    30,130    407,226    102,273    2,915,227 
Accumulation Unit Value  $14.66   $33.29   $13.71   $25.67   $15.25   $49.47 
Cost of Investments  $1,017,089   $42,199,481   $390,120   $9,662,341   $1,416,961   $134,853,830 

 

   Emerging   International   International   International   International   International 
   Markets   Growth   Large-Cap   Large-Cap   Small-Cap   Small-Cap 
   Class P   Class P   Class I   Class P   Class I   Class P 
ASSETS                              
Investments in mutual funds, at value  $4,240,923   $354,181   $249,556,981   $4,884,132   $39,377,622   $1,155,762 
Receivables:                              
Due from Pacific Life Insurance Company   651    -    7,131    430    22,592    - 
Investments sold   -    -    -    -    -    - 
Total Assets   4,241,574    354,181    249,564,112    4,884,562    39,400,214    1,155,762 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    - 
Investments purchased   651    -    7,398    431    22,529    - 
Total Liabilities   651    -    7,398    431    22,529    - 
NET ASSETS  $4,240,923   $354,181   $249,556,714   $4,884,131   $39,377,685   $1,155,762 
Units Outstanding   409,498    31,647    9,020,775    335,229    2,015,162    83,155 
Accumulation Unit Value  $10.36   $11.19   $27.66   $14.57   $19.54   $13.90 
Cost of Investments  $4,344,484   $343,016   $160,307,489   $4,419,554   $32,896,678   $1,053,196 

 

See Notes to Financial StatementsSA-7

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2023                  

 

   Variable Accounts 
   International   Health   Health   Real   Real     
   Value   Sciences   Sciences   Estate   Estate   Technology 
   Class I   Class I   Class P   Class I   Class P   Class I 
ASSETS                              
Investments in mutual funds, at value  $150,403,476   $86,173,588   $2,007,819   $90,497,793   $81,529   $48,109,835 
Receivables:                              
Due from Pacific Life Insurance Company   -    -    1,663    -    -    2,526 
Investments sold   5,863    13,269    -    43,205    -    - 
Total Assets   150,409,339    86,186,857    2,009,482    90,540,998    81,529    48,112,361 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   5,926    13,209    -    43,316    -    - 
Investments purchased   -    -    1,665    -    -    2,677 
Total Liabilities   5,926    13,209    1,665    43,316    -    2,677 
NET ASSETS  $150,403,413   $86,173,648   $2,007,817   $90,497,682   $81,529   $48,109,684 
Units Outstanding   3,522,357    809,629    133,078    937,930    6,784    1,688,057 
Accumulation Unit Value  $42.70   $106.44   $15.09   $96.49   $12.02   $28.50 
Cost of Investments  $94,547,607   $51,926,874   $1,922,221   $65,113,478   $75,787   $34,342,716 

 

                       Pacific 
           ESG   PSF Avantis   PSF Avantis   Dynamix - 
       ESG   Diversified   Balanced   Balanced   Conservative 
   Technology   Diversified   Growth   Allocation   Allocation   Growth 
   Class P   Class P   Class P   Class D   Class P   Class I 
ASSETS                              
Investments in mutual funds, at value  $2,296,425   $147,604   $1,266,969   $11,678,161   $973,693   $16,291,503 
Receivables:                              
Due from Pacific Life Insurance Company   1,398    1,092    2    -    -    347 
Investments sold   -    -    -    41,764    -    - 
Total Assets   2,297,823    148,696    1,266,971    11,719,925    973,693    16,291,850 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    41,764    -    - 
Investments purchased   1,399    1,092    3    -    -    350 
Total Liabilities   1,399    1,092    3    41,764    -    350 
NET ASSETS  $2,296,424   $147,604   $1,266,968   $11,678,161   $973,693   $16,291,500 
Units Outstanding   124,702    14,240    114,290    715,343    76,244    675,329 
Accumulation Unit Value  $18.42   $10.37   $11.09   $16.33   $12.77   $24.12 
Cost of Investments  $1,977,890   $137,129   $1,155,365   $10,163,947   $887,023   $13,944,177 

 

   Pacific   Pacific   Pacific             
   Dynamix -   Dynamix -   Dynamix -   Pacific   Pacific   Portfolio 
   Conservative   Moderate   Moderate   Dynamix -   Dynamix -   Optimization 
   Growth   Growth   Growth   Growth   Growth   Conservative 
   Class P   Class I   Class P   Class I   Class P   Class I 
ASSETS                              
Investments in mutual funds, at value  $8,243,505   $72,123,471   $53,394,148   $125,134,040   $45,440,329   $13,065,465 
Receivables:                              
Due from Pacific Life Insurance Company   9,900    39    97,953    144,074    77,145    481 
Investments sold   -    -    -    -    -    - 
Total Assets   8,253,405    72,123,510    53,492,101    125,278,114    45,517,474    13,065,946 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    - 
Investments purchased   9,901    67    97,968    144,057    77,150    510 
Total Liabilities   9,901    67    97,968    144,057    77,150    510 
NET ASSETS  $8,243,504   $72,123,443   $53,394,133   $125,134,057   $45,440,324   $13,065,436 
Units Outstanding   697,023    2,364,646    4,147,496    3,342,062    3,326,491    874,457 
Accumulation Unit Value  $11.83   $30.50   $12.87   $37.44   $13.66   $14.94 
Cost of Investments  $7,711,666   $53,883,368   $49,104,251   $93,322,947   $42,110,031   $12,435,413 

 

See Notes to Financial StatementsSA-8

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2023                  

 

   Variable Accounts 
       Portfolio   Portfolio             
   Portfolio   Optimization   Optimization   Portfolio   Portfolio   Portfolio 
   Optimization   Moderate-   Moderate -   Optimization   Optimization   Optimization 
   Conservative   Conservative   Conservative   Moderate   Moderate   Growth 
   Class P   Class I   Class P   Class I   Class P   Class I 
ASSETS                        
Investments in mutual funds, at value  $17,394   $47,484,644   $189,168   $223,772,803   $834,183   $369,511,041 
Receivables:                              
Due from Pacific Life Insurance Company   -    39    -    4,033    1    - 
Investments sold   -    -    -    -    -    60,457 
Total Assets   17,394    47,484,683    189,168    223,776,836    834,184    369,571,498 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    60,495 
Investments purchased   -    -    -    3,661    -    - 
Total Liabilities   -    -    -    3,661    -    60,495 
NET ASSETS  $17,394   $47,484,683   $189,168   $223,773,175   $834,184   $369,511,003 
Units Outstanding   1,637    2,740,547    16,576    11,298,893    68,383    16,797,425 
Accumulation Unit Value  $10.63   $17.33   $11.41   $19.80   $12.20   $22.00 
Cost of Investments  $16,294   $35,123,827   $178,709   $136,695,564   $782,356   $198,077,434 

 

       Portfolio   Portfolio   Invesco V.I.   Invesco V.I.   Invesco V.I. 
   Portfolio   Optimization   Optimization   Discovery   EQV  

EQV

 
   Optimization   Aggressive-   Aggressive-   Mid Cap   International   International 
   Growth   Growth   Growth   Growth   Equity   Equity 
   Class P   Class I   Class P   Series I   Series I   Series II 
ASSETS                        
Investments in mutual funds, at value  $3,624,722   $185,185,897   $2,437,601   $2,316   $2,308,779   $32,047,430 
Receivables:                              
Due from Pacific Life Insurance Company   -    9,315    -    -    345    - 
Investments sold   -    -    -    -    -    20,705 
Total Assets   3,624,722    185,195,212    2,437,601    2,316    2,309,124    32,068,135 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    1    -    -    20,733 
Investments purchased   -    9,590    -    -    345    - 
Total Liabilities   -    9,590    1    -    345    20,733 
NET ASSETS  $3,624,722   $185,185,622   $2,437,600   $2,316   $2,308,779   $32,047,402 
Units Outstanding   284,185    7,952,729    185,002    164    177,592    1,729,410 
Accumulation Unit Value  $12.75   $23.29   $13.18   $14.08   $13.00   $18.53 
Cost of Investments  $3,448,897   $103,385,453   $2,219,090   $2,163   $2,239,901   $33,759,192 

 

           Invesco V.I.   American   American   American 
           Main Street   Century   Century   Century 
   Invesco V.I.   Invesco V.I.   Small Cap   Inflation   VP Mid Cap  VP Mid Cap 
   Global   Global   Fund   Protection   Value   Value 
   Series I   Series II   Series I   Class I   Class I   Class II 
ASSETS                              
Investments in mutual funds, at value  $2,396,556   $14,774,591   $12,344,491   $29,402   $2,062,696   $41,909,067 
Receivables:                              
Due from Pacific Life Insurance Company   11,208    926    2,779    883    2,712    - 
Investments sold   -    -    -    -    -    15,309 
Total Assets   2,407,764    14,775,517    12,347,270    30,285    2,065,408    41,924,376 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    15,316 
Investments purchased   11,208    205    2,782    883    2,713    - 
Total Liabilities   11,208    205    2,782    883    2,713    15,316 
NET ASSETS  $2,396,556   $14,775,312   $12,344,488   $29,402   $2,062,695   $41,909,060 
Units Outstanding   152,651    582,436    749,753    2,805    136,941    1,329,129 
Accumulation Unit Value  $15.70   $25.37   $16.46   $10.48   $15.06   $31.53 
Cost of Investments  $2,648,625   $16,479,146   $12,010,880   $29,276   $2,194,993   $43,174,006 

 

See Notes to Financial StatementsSA-9

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2023                  

 

   Variable Accounts 
   American Funds                     
   IS American   American Funds   American Funds   American Funds         
   High-Income   IS Asset   IS Asset   IS Capital   American Funds   American Funds 
   Trust   Allocation   Allocation   World Bond   IS Growth   IS Growth 
   Class 2   Class 2   Class 4   Class 2   Class 2   Class 4 
ASSETS                        
Investments in mutual funds, at value  $1,622,483   $27,519,917   $102,257,160   $51,304   $18,970,449   $161,926,503 
Receivables:                              
Due from Pacific Life Insurance Company   3,609    14,747    28,874    -    20,078    41,566 
Investments sold   -    -    -    -    -    - 
Total Assets   1,626,092    27,534,664    102,286,034    51,304    18,990,527    161,968,069 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    - 
Investments purchased   3,609    14,730    28,874    -    20,069    41,626 
Total Liabilities   3,609    14,730    28,874    -    20,069    41,626 
NET ASSETS  $1,622,483   $27,519,934   $102,257,160   $51,304   $18,970,458   $161,926,443 
Units Outstanding   131,641    1,969,867    2,486,647    5,070    909,490    2,213,596 
Accumulation Unit Value  $12.33   $13.97   $41.12   $10.12   $20.86   $73.15 
Cost of Investments  $1,633,397   $27,661,186   $101,743,385   $48,242   $17,817,587   $141,505,095 

 

   American Funds   American Funds      American Funds   BlackRock    
   IS   IS   American Funds   IS   60/40 Target   BlackRock 
   Growth-Income   Growth-Income   IS International   New World Fund   Allocation ETF   Basic Value 
   Class 2   Class 4   Class 2   Class 2   V.I. Class I   V.I. Class III 
ASSETS                              
Investments in mutual funds, at value  $12,446,162   $126,567,526   $2,841,542   $2,628,449   $24,094,541   $28,276,155 
Receivables:                              
Due from Pacific Life Insurance Company   21,142    38,908    42,399    8,855    8,484    - 
Investments sold   -    -    -    -    -    8,703 
Total Assets   12,467,304    126,606,434    2,883,941    2,637,304    24,103,025    28,284,858 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    8,672 
Investments purchased   21,145    38,925    42,400    8,855    8,482    - 
Total Liabilities   21,145    38,925    42,400    8,855    8,482    8,672 
NET ASSETS  $12,446,159   $126,567,509   $2,841,541   $2,628,449   $24,094,543   $28,276,186 
Units Outstanding   746,541    2,552,068    242,680    198,381    1,451,447    772,207 
Accumulation Unit Value  $16.67   $49.59   $11.71   $13.25   $16.60   $36.62 
Cost of Investments  $11,736,980   $106,295,869   $2,903,813   $2,611,351   $24,092,932   $29,605,206 

 

             DFA VA   DFA VA   DFA VA 
   BlackRock   BlackRock      International   International   Short-Term 
   Global   Global   BNY Mellon   Small   Value   Fixed 
   Allocation   Allocation   VIF Appreciation   Institutional   Institutional   Institutional 
   V.I. Class I   V.I. Class III   Service Shares   Class   Class   Class 
ASSETS                              
Investments in mutual funds, at value  $6,104,930   $70,357,942   $5,136,596   $5,672,545   $2,924,415   $7,917,954 
Receivables:                              
Due from Pacific Life Insurance Company   1,024    -    260    19,700    185    25,093 
Investments sold   -    16,014    -    -    -    - 
Total Assets   6,105,954    70,373,956    5,136,856    5,692,245    2,924,600    7,943,047 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    16,049    -    -    -    - 
Investments purchased   1,025    -    261    19,698    186    25,099 
Total Liabilities   1,025    16,049    261    19,698    186    25,099 
NET ASSETS  $6,104,929   $70,357,907   $5,136,595   $5,672,547   $2,924,414   $7,917,948 
Units Outstanding   459,608    2,331,554    166,470    403,074    191,361    764,419 
Accumulation Unit Value  $13.28   $30.18   $30.86   $14.07   $15.28   $10.36 
Cost of Investments  $6,060,665   $77,531,645   $4,825,437   $5,463,881   $2,742,527   $7,974,324 

 

See Notes to Financial StatementsSA-10

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2023                  

 

   Variable Accounts  
   DFA VA   DFA VA US                 
   US Large Value   Targeted Value   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP 
   Institutional   Institutional   Bond Index   Bond Index   Contrafund   Contrafund 
   Class   Class   Initial Class   Service Class 2   Initial Class   Service Class 2 
ASSETS                        
Investments in mutual funds, at value  $6,369,577   $4,114,359   $23,584,139   $4,569,012   $2,618,170   $88,320,256 
Receivables:                              
Due from Pacific Life Insurance Company   11,450    2,247    141,712    159,108    3,747    17,587 
Investments sold   -    -    -    -    -    - 
Total Assets   6,381,027    4,116,606    23,725,851    4,728,120    2,621,917    88,337,843 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    - 
Investments purchased   11,455    2,247    141,703    159,106    3,747    17,789 
Total Liabilities   11,455    2,247    141,703    159,106    3,747    17,789 
NET ASSETS  $6,369,572   $4,114,359   $23,584,148   $4,569,014   $2,618,170   $88,320,054 
Units Outstanding   411,314    207,218    2,600,870    480,781    143,092    1,497,423 
Accumulation Unit Value  $15.49   $19.86   $9.07   $9.50   $18.30   $58.98 
Cost of Investments  $6,048,583   $3,932,442   $23,154,327   $4,586,342   $2,353,737   $70,635,640 

 

   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP 
   Freedom 2010   Freedom 2015   Freedom 2020   Freedom 2025   Freedom 2025   Freedom 2030 
   Portfolio   Portfolio   Portfolio   Portfolio   Portfolio   Portfolio 
   Service Class 2   Service Class 2   Service Class 2   Initial Class   Service Class 2   Initial Class 
ASSETS                              
Investments in mutual funds, at value  $1,113,790   $2,677,858   $5,592,375   $264,573   $14,083,478   $638,772 
Receivables:                              
Due from Pacific Life Insurance Company   -    -    10    1    17    - 
Investments sold   -    -    -    -    -    - 
Total Assets   1,113,790    2,677,858    5,592,385    264,574    14,083,495    638,772 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   2    13    -    -    -    - 
Investments purchased   -    -    -    -    -    - 
Total Liabilities   2    13    -    -    -    - 
NET ASSETS  $1,113,788   $2,677,845   $5,592,385   $264,574   $14,083,495   $638,772 
Units Outstanding   56,249    128,616    261,833    21,355    611,331    46,512 
Accumulation Unit Value  $19.80   $20.82   $21.36   $12.39   $23.04   $13.73 
Cost of Investments  $1,221,227   $2,971,151   $6,087,717   $250,863   $14,098,642   $604,964 

 

   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP 
   Freedom 2030   Freedom 2035   Freedom 2035   Freedom 2045   Freedom 2045   Freedom 2055 
   Portfolio   Portfolio   Portfolio   Portfolio   Portfolio   Portfolio 
   Service Class 2   Initial Class   Service Class 2   Initial Class   Service Class 2   Initial Class 
ASSETS                              
Investments in mutual funds, at value  $15,803,347   $4,096,845   $16,609,469   $4,577,691   $18,202,543   $13,843 
Receivables:                              
Due from Pacific Life Insurance Company   32,864    3,832    141,649    4,500    313    - 
Investments sold   -    -    -    -    -    - 
Total Assets   15,836,211    4,100,677    16,751,118    4,582,191    18,202,856    13,843 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    - 
Investments purchased   32,850    3,830    141,626    4,498    314    - 
Total Liabilities   32,850    3,830    141,626    4,498    314    - 
NET ASSETS  $15,803,361   $4,096,847   $16,609,492   $4,577,693   $18,202,542   $13,843 
Units Outstanding   669,645    279,164    626,574    295,867    647,351    1,217 
Accumulation Unit Value  $23.60   $14.68   $26.51   $15.47   $28.12   $11.38 
Cost of Investments  $15,675,521   $3,687,964   $15,571,953   $4,267,405   $16,759,340   $12,761 

 

See Notes to Financial StatementsSA-11

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2023      

 

   Variable Accounts 
   Fidelity VIP   Fidelity VIP   Fidelity VIP           Fidelity VIP 
   Freedom Income   Freedom Income   Government   Fidelity VIP   Fidelity VIP   International 
   Portfolio   Portfolio   Money Market   Growth   Growth   Index 
   Initial Class   Service Class 2   Service Class   Initial Class   Service Class 2   Initial Class 
ASSETS                        
Investments in mutual funds, at value  $269,215   $1,956,863   $287,113,646   $193,873   $58,856,051   $23,286,428 
Receivables:                              
Due from Pacific Life Insurance Company   -    1    194,625    -    82,331    62,260 
Investments sold   -    -    -    -    -    - 
Total Assets   269,215    1,956,864    287,308,271    193,873    58,938,382    23,348,688 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    - 
Investments purchased   -    -    194,760    -    82,297    62,268 
Total Liabilities   -    -    194,760    -    82,297    62,268 
NET ASSETS  $269,215   $1,956,864   $287,113,511   $193,873   $58,856,085   $23,286,420 
Units Outstanding   24,160    115,269    25,857,232    11,788    812,465    1,776,787 
Accumulation Unit Value  $11.14   $16.98   $11.10   $16.45   $72.44   $13.11 
Cost of Investments  $274,026   $2,019,278   $287,113,646   $167,366   $56,025,832   $22,243,081 

 

   Fidelity VIP
International		   Fidelity VIP   Fidelity VIP   Fidelity VIP
Total Market		   Fidelity VIP
Total Market		   Fidelity VIP 
   Index   Mid Cap   Mid Cap   Index   Index   Value Strategies 
   Service Class 2   Initial Class   Service Class 2   Initial Class   Service Class 2   Service Class 2 
ASSETS                              
Investments in mutual funds, at value  $4,112,784   $4,199,229   $44,374,906   $63,893,378   $6,706,434   $12,838,431 
Receivables:                              
Due from Pacific Life Insurance Company   -    13,971    13,632    1,625,986    9,088    - 
Investments sold   -    -    -    -    -    13,436 
Total Assets   4,112,784    4,213,200    44,388,538    65,519,364    6,715,522    12,851,867 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    13,431 
Investments purchased   -    13,970    13,443    1,625,968    9,090    - 
Total Liabilities   -    13,970    13,443    1,625,968    9,090    13,431 
NET ASSETS  $4,112,784   $4,199,230   $44,375,095   $63,893,396   $6,706,432   $12,838,436 
Units Outstanding   313,608    254,882    920,151    3,874,765    386,367    286,340 
Accumulation Unit Value  $13.11   $16.48   $48.23   $16.49   $17.36   $44.84 
Cost of Investments  $3,837,291   $4,257,811   $42,530,623   $57,302,891   $6,059,947   $12,119,473 

 

                   Goldman Sachs
VIT		   Janus 
                   Multi-Strategy   Henderson 
   Templeton   Templeton   Templeton   Templeton   Alternatives   Enterprise 
   Foreign   Foreign   Global Bond   Global Bond   Institutional   Institutional 
   VIP Class 1   VIP Class 2   VIP Class 1   VIP Class 2   Shares   Shares 
ASSETS                              
Investments in mutual funds, at value  $899,065   $19,363,617   $518,647   $22,070,260   $51,157   $831,127 
Receivables:                              
Due from Pacific Life Insurance Company   -    2,220    -    1,382    -    4,108 
Investments sold   -    -    -    -    -    - 
Total Assets   899,065    19,365,837    518,647    22,071,642    51,157    835,235 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    - 
Investments purchased   -    1,334    -    1,342    -    4,110 
Total Liabilities   -    1,334    -    1,342    -    4,110 
NET ASSETS  $899,065   $19,364,503   $518,647   $22,070,300   $51,157   $831,125 
Units Outstanding   67,727    1,263,062    57,537    1,937,934    5,008    55,021 
Accumulation Unit Value  $13.27   $15.33   $9.01   $11.39   $10.21   $15.11 
Cost of Investments  $817,304   $17,769,779   $505,130   $26,272,187   $51,591   $790,526 

 

See Notes to Financial StatementsSA-12

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2023                  

 

   Variable Accounts 
   Janus   Janus
Henderson		   Janus   Lazard
Retirement		   Lazard
Retirement		   Lazard
Retirement		 
   Henderson  Overseas   Henderson   Global Dynamic   Global Dynamic   International 
   Enterprise  Institutional   Overseas   Multi-Asset   Multi-Asset   Equity 
   Service Shares   Shares   Service Shares   Investor Shares   Service Shares   Service Shares 
ASSETS                        
Investments in mutual funds, at value  $32,074,260   $1,287,869   $27,154,275   $290,382   $1,432,683   $2,646,943 
Receivables:                              
Due from Pacific Life Insurance Company   35,275    627    26,095    -    2    2,517 
Investments sold   -    -    -    -    -    - 
Total Assets   32,109,535    1,288,496    27,180,370    290,382    1,432,685    2,649,460 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    -    - 
Investments purchased   35,278    627    26,319    -    -    2,515 
Total Liabilities   35,278    627    26,319    -    -    2,515 
NET ASSETS  $32,074,257   $1,287,869   $27,154,051   $290,382   $1,432,685   $2,646,945 
Units Outstanding   612,801    80,459    1,739,316    25,889    99,866    223,556 
Accumulation Unit Value  $52.34   $16.01   $15.61   $11.22   $14.35   $11.84 
Cost of Investments  $33,357,843   $1,226,196   $23,344,442   $314,051   $1,517,833   $2,688,134 

 

   ClearBridge               ClearBridge    
   Variable   ClearBridge   ClearBridge   ClearBridge   Variable   Western Asset 
   Aggressive   Variable   Variable   Variable   Small Cap   Variable Global 
   Growth -   Aggressive   Mid Cap -   Mid Cap -   Growth -   High Yield Bond - 
   Class I   Growth - Class II   Class I   Class II   Class I   Class I 
ASSETS                        
Investments in mutual funds, at value  $368,072   $24,852,033   $2,021,492   $13,344,766   $1,675,731   $559,067 
Receivables:                              
Due from Pacific Life Insurance Company   -    1,239    2,631    -    268    - 
Investments sold   -    -    -    25,485    -    - 
Total Assets   368,072    24,853,272    2,024,123    13,370,251    1,675,999    559,067 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    25,513    -    2 
Investments purchased   -    1,256    2,630    -    268    - 
Total Liabilities   -    1,256    2,630    25,513    268    2 
NET ASSETS  $368,072   $24,852,016   $2,021,493   $13,344,738   $1,675,731   $559,065 
Units Outstanding   27,080    776,847    144,206    426,162    115,008    52,705 
Accumulation Unit Value  $13.59   $31.99   $14.02   $31.31   $14.57   $10.61 
Cost of Investments  $381,899   $33,507,371   $2,076,505   $12,628,811   $1,608,132   $551,605 

 

   Western Asset   Lord Abbett   Lord Abbett   Lord Abbett         
   Variable Global   Bond   Developing   Fundamental   Lord Abbett     
   High Yield Bond -   Debenture   Growth   Equity   Total Return   M Capital 
   Class II   Class VC   Class VC   Class VC   Class VC   Appreciation 
ASSETS                        
Investments in mutual funds, at value  $678,523   $25,364,713   $12,774,481   $6,886,933   $84,723,473   $82,025,328 
Receivables:                              
Due from Pacific Life Insurance Company   1    7,117    -    175    52,797    - 
Investments sold   -    -    13,636    -    -    7,098 
Total Assets   678,524    25,371,830    12,788,117    6,887,108    84,776,270    82,032,426 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    13,839    -    -    6,693 
Investments purchased   -    7,093    -    171    52,791    - 
Total Liabilities   -    7,093    13,839    171    52,791    6,693 
NET ASSETS  $678,524   $25,364,737   $12,774,278   $6,886,937   $84,723,479   $82,025,733 
Units Outstanding   53,262    1,856,434    423,997    229,035    7,262,675    552,842 
Accumulation Unit Value  $12.74   $13.66   $30.13   $30.07   $11.67   $148.37 
Cost of Investments  $743,867   $28,604,761   $24,588,000   $6,620,255   $93,299,488   $84,659,121 

 

See Notes to Financial StatementsSA-13

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2023                  

 

   Variable Accounts 
               MFS   MFS   MFS 
               New Discovery   New Discovery   Total Return 
   M International   M Large Cap   M Large Cap   Series -   Series -   Series - 
   Equity   Growth   Value   Initial Class   Service Class   Initial Class 
ASSETS                        
Investments in mutual funds, at value  $89,413,794   $83,023,210   $43,205,934   $1,922,741   $22,740,734   $1,308,497 
Receivables:                              
Due from Pacific Life Insurance Company   4,093    -    -    9,425    -    - 
Investments sold   -    22,305    14,692    -    12,973    - 
Total Assets   89,417,887    83,045,515    43,220,626    1,932,166    22,753,707    1,308,497 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    22,305    15,088    -    12,988    - 
Investments purchased   4,169    -    -    9,425    -    - 
Total Liabilities   4,169    22,305    15,088    9,425    12,988    - 
NET ASSETS  $89,413,718   $83,023,210   $43,205,538   $1,922,741   $22,740,719   $1,308,497 
Units Outstanding   1,946,177    667,817    966,442    142,599    570,731    96,669 
Accumulation Unit Value  $45.94   $124.32   $44.71   $13.48   $39.84   $13.54 
Cost of Investments  $80,845,140   $80,233,029   $39,423,786   $2,228,207   $34,096,538   $1,373,119 

 

   MFS   MFS   MFS   MFS   MFS   MFS 
   Utilities   Utilities   Value   Value   Government   Research 
   Series -   Series -   Series -   Series -   Securities -   International - 
   Initial Class   Service Class   Initial Class   Service Class   Initial Class   Initial Class 
ASSETS                        
Investments in mutual funds, at value  $129,255   $13,957,542   $5,640,995   $30,291,172   $65,975   $77,423 
Receivables:                              
Due from Pacific Life Insurance Company   -    -    8,777    -    -    2,136 
Investments sold   -    52,452    -    73,974    -    - 
Total Assets   129,255    14,009,994    5,649,772    30,365,146    65,975    79,559 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    52,414    -    73,959    -    - 
Investments purchased   -    -    8,780    -    -    2,136 
Total Liabilities   -    52,414    8,780    73,959    -    2,136 
NET ASSETS  $129,255   $13,957,580   $5,640,992   $30,291,187   $65,975   $77,423 
Units Outstanding   10,104    508,647    380,150    1,540,197    7,306    5,534 
Accumulation Unit Value  $12.79   $27.44   $14.84   $19.67   $9.03   $13.99 
Cost of Investments  $137,141   $15,166,193   $5,825,978   $29,401,647   $66,098   $71,299 

 

   MFS       Neuberger   PIMCO         
   Blended   MFS   Berman   Commodity-   PIMCO   PIMCO Global 
   Research   Global   Sustainable   RealReturn   Global Managed   Managed Asset 
   Small Cap Equity -   Real Estate -   Equity   Strategy -   Asset Allocation -   Allocation - 
   Initial Class   Initial Class   Class I   Institutional Class   Advisor Class   Institutional Class 
ASSETS                              
Investments in mutual funds, at value  $40,927   $39,029   $2,305,992   $16,464   $6,736,413   $180,783 
Receivables:                              
Due from Pacific Life Insurance Company   -    1,142    3,280    -    -    - 
Investments sold   -    -    -    -    -    - 
Total Assets   40,927    40,171    2,309,272    16,464    6,736,413    180,783 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    128    - 
Investments purchased   -    1,142    3,280    -    -    - 
Total Liabilities   -    1,142    3,280    -    128    - 
NET ASSETS  $40,927   $39,029   $2,305,992   $16,464   $6,736,285   $180,783 
Units Outstanding   2,321    2,915    73,693    888    445,261    13,757 
Accumulation Unit Value  $17.63   $13.39   $31.29   $18.54   $15.13   $13.14 
Cost of Investments  $36,330   $37,680   $2,061,240   $19,443   $7,610,207   $176,298 

 

See Notes to Financial StatementsSA-14

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

DECEMBER 31, 2023                  

 

   Variable Accounts 
   PIMCO Income -   Royce   State Street   T. Rowe Price   T. Rowe Price   T. Rowe Price 
   Administrative   Micro-Cap   Total Return   Blue Chip   Blue Chip   Equity 
   Class   Service Class   V.I.S. Class 3   Growth - I   Growth - II   Income - I 
ASSETS                        
Investments in mutual funds, at value  $10,892,694   $3,840,335   $2,628,273   $13,334,602   $168,505,801   $6,121,110 
Receivables:                              
Due from Pacific Life Insurance Company   26,540    1,154    -    21,104    -    8,025 
Investments sold   -    -    -    -    45,078    - 
Total Assets   10,919,234    3,841,489    2,628,273    13,355,706    168,550,879    6,129,135 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   -    -    -    -    45,350    - 
Investments purchased   26,534    1,217    -    21,105    -    8,024 
Total Liabilities   26,534    1,217    -    21,105    45,350    8,024 
NET ASSETS  $10,892,700   $3,840,272   $2,628,273   $13,334,601   $168,505,529   $6,121,111 
Units Outstanding   914,741    174,245    126,157    831,469    2,582,644    399,596 
Accumulation Unit Value  $11.91   $22.04   $20.83   $16.04   $65.25   $15.32 
Cost of Investments  $10,686,993   $4,536,159   $2,806,100   $12,114,438   $132,176,853   $6,210,949 

 

   T. Rowe Price   VanEck VIP    Vanguard VIF             
   Equity   Global Resources   Global Bond   Vanguard VIF   Vanguard VIF   Vanguard VIF 
   Income - II   Initial Class   Index   High Yield Bond   Mid-Cap Index   Real Estate Index 
ASSETS                        
Investments in mutual funds, at value  $96,515,875   $28,351,275   $275,531   $5,464,439   $33,302,124   $7,242,791 
Receivables:                              
Due from Pacific Life Insurance Company   -    -    15,959    24,725    79,091    12,491 
Investments sold   23,182    21,844    -    -    -    - 
Total Assets   96,539,057    28,373,119    291,490    5,489,164    33,381,215    7,255,282 
LIABILITIES                              
Payables:                              
Due to Pacific Life Insurance Company   23,319    21,861    -    -    -    - 
Investments purchased   -    -    15,959    24,724    79,088    12,492 
Total Liabilities   23,319    21,861    15,959    24,724    79,088    12,492 
NET ASSETS  $96,515,738   $28,351,258   $275,531   $5,464,440   $33,302,127   $7,242,790 
Units Outstanding   2,687,628    1,154,516    26,827    478,424    2,281,602    662,369 
Accumulation Unit Value  $35.91   $24.56   $10.27   $11.42   $14.60   $10.93 
Cost of Investments  $95,154,093   $23,552,938   $261,866   $5,177,312   $32,194,923   $7,290,093 

 

   Vanguard VIF   Vanguard VIF                                 
   Total Bond   Total Stock                                 
   Market Index   Market Index                                 
ASSETS                                          
Investments in mutual funds, at value  $1,698,993   $461,825                                 
Receivables:                                          
Due from Pacific Life Insurance Company   -    -                                 
Investments sold   -    -                                 
Total Assets   1,698,993    461,825                                 
LIABILITIES                                          
Payables:                                          
Due to Pacific Life Insurance Company   -    1                                 
Investments purchased   -    -                                 
Total Liabilities   -    1                                 
NET ASSETS  $1,698,993   $461,824                                 
Units Outstanding   175,943    26,436                                 
Accumulation Unit Value  $9.66   $17.47                                 
Cost of Investments  $1,652,217   $420,388                                 

 

See Notes to Financial StatementsSA-15

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2023                      

 

   Variable Accounts 
   Core   Core   Diversified   Diversified   Floating   Floating 
   Income   Income   Bond   Bond   Rate Income   Rate Income 
   Class I   Class P   Class I   Class P   Class I   Class P 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (22,030)   (16)   (8,037)   (52,874)   1,050,742    7,126 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   (22,030)   (16)   (8,037)   (52,874)   1,050,742    7,126 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   665,762    1,121    2,566,452    229,443    3,113,884    84,814 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $643,732   $1,105   $2,558,415   $176,569   $4,164,626   $91,940 

 

   High Yield   High Yield   Inflation   Inflation   Intermediate   Managed 
   Bond   Bond   Managed   Managed   Bond   Bond 
   Class I   Class P   Class I   Class P   Class P   Class I 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   1,754,133    5,763    782,139    (35,374)   9,282    2,777,666 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   1,754,133    5,763    782,139    (35,374)   9,282    2,777,666 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   7,072,812    95,239    1,893,714    96,811    75,637    13,303,897 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $8,826,945   $101,002   $2,675,853   $61,437   $84,919   $16,081,563 

 

    Managed    Short Duration    Short Duration    Emerging    Emerging    Dividend 
    Bond    Bond    Bond    Markets Debt    Markets Debt    Growth 
    Class P     Class I    Class P     Class I    Class P     Class I 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (58,785)   498,503    (22,372)   (5,238)   (1,091)   6,960,826 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   (58,785)   498,503    (22,372)   (5,238)   (1,091)   6,960,826 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   305,595    3,498,280    207,430    626,016    15,281    6,132,462 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $246,810   $3,996,783   $185,058   $620,778   $14,190   $13,093,288 

 

See Notes to Financial StatementsSA-16

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE YEAR ENDED DECEMBER 31, 2023                      

 

   Variable Accounts 
   Dividend   Equity   Equity   Focused         
   Growth   Index   Index   Growth   Growth   Growth 
   Class P   Class I   Class P   Class I   Class I   Class P 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   29,402    46,050,509    63,298    3,017,864    15,945,010    4,639 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   29,402    46,050,509    63,298    3,017,864    15,945,010    4,639 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   346,658    189,861,624    31,601,911    9,437,760    69,484,754    1,356,711 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $376,060   $235,912,133   $31,665,209   $12,455,624   $85,429,764   $1,361,350 

 

   Hedged   Large-Cap   Large-Cap   Large-Cap   Large-Cap   Large-Cap 
   Equity   Core   Core   Growth   Growth   Value 
   Class P   Class I   Class P   Class I   Class P   Class I 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   87,064    13,431,181    15,000    4,515,065    24,526    8,572,087 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   87,064    13,431,181    15,000    4,515,065    24,526    8,572,087 
CHANGE IN NET UNREALIZED APPRECIATION  (DEPRECIATION) ON INVESTMENTS   321,110    39,019,288    289,318    21,727,950    219,459    12,833,376 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $408,174   $52,450,469   $304,318   $26,243,015   $243,985   $21,405,463 

 

   Large-Cap   Mid-Cap   Mid-Cap   Mid-Cap   Mid-Cap   Mid-Cap 
   Value   Equity   Growth   Growth   Value   Value 
   Class P   Class I   Class I   Class P   Class I   Class P 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   15,184    5,116,866    1,784,202    (26,237)   770,560    5,482 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   15,184    5,116,866    1,784,202    (26,237)   770,560    5,482 
CHANGE IN NET UNREALIZED APPRECIATION  (DEPRECIATION) ON INVESTMENTS   398,587    14,814,382    12,047,576    193,948    2,353,287    82,472 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $413,771   $19,931,248   $13,831,778   $167,711   $3,123,847   $87,954 

 

See Notes to Financial StatementsSA-17

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE YEAR ENDED DECEMBER 31, 2023                      

 

   Variable Accounts 
   Small-Cap   Small-Cap   Small-Cap   Small-Cap   Small-Cap   Small-Cap 
   Equity   Equity   Growth   Index   Index   Value 
   Class I   Class P   Class I   Class I   Class P   Class I 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   496,411    12,035    1,240,757    6,659,409    (145,714)   2,112,750 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   496,411    12,035    1,240,757    6,659,409    (145,714)   2,112,750 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   3,009,241    81,500    1,757,918    27,588,024    3,314,854    2,997,591 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $3,505,652   $93,535   $2,998,675   $34,247,433   $3,169,140   $5,110,341 

  

   Small-Cap           Value   Value   Emerging 
   Value   Value   Value   Advantage   Advantage   Markets 
   Class P   Class I   Class P   Class I   Class P   Class I 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (53,643)   1,589,863    6,409    526,637    30,479    1,693,157 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   (53,643)   1,589,863    6,409    526,637    30,479    1,693,157 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   139,105    775,102    12,590    426,790    112,581    10,180,856 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $85,462   $2,364,965   $18,999   $953,427   $143,060   $11,874,013 

  

   Emerging   International   International   International   International   International 
   Markets   Growth   Large-Cap   Large-Cap   Small-Cap   Small-Cap 
   Class P   Class P   Class I   Class P   Class I   Class P 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (126,812)   3,310    7,648,268    8,265    503,079    (12,342)
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   (126,812)   3,310    7,648,268    8,265    503,079    (12,342)
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   337,079    11,156    31,368,214    562,450    5,302,825    165,251 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $210,267   $14,466   $39,016,482   $570,715   $5,805,904   $152,909 

 

See Notes to Financial StatementsSA-18

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE YEAR ENDED DECEMBER 31, 2023                      

 

   Variable Accounts 
   International   Health   Health   Real   Real     
   Value   Sciences   Sciences   Estate   Estate   Technology 
   Class I   Class I   Class P   Class I   Class P   Class I 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   5,756,024    5,644,741    20,624    2,082,073    (3,227)   2,426,903 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   5,756,024    5,644,741    20,624    2,082,073    (3,227)   2,426,903 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   20,437,910    (2,854,536)   52,862    8,386,152    12,106    14,632,834 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $26,193,934   $2,790,205   $73,486   $10,468,225   $8,879   $17,059,737 

 

                       Pacific 
           ESG   PSF Avantis   PSF Avantis   Dynamix - 
       ESG   Diversified   Balanced   Balanced   Conservative 
   Technology   Diversified   Growth   Allocation   Allocation   Growth 
   Class P   Class P   Class P   Class D   Class P   Class I 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (10,538)   1,871    35,399    387,085    (16,594)   334,066 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   (10,538)   1,871    35,399    387,085    (16,594)   334,066 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   700,741    10,309    100,685    1,119,814    133,143    1,410,100 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $690,203   $12,180   $136,084   $1,506,899   $116,549   $1,744,166 

 

   Pacific   Pacific   Pacific             
   Dynamix -   Dynamix -   Dynamix -   Pacific   Pacific   Portfolio 
   Conservative   Moderate   Moderate   Dynamix -   Dynamix -   Optimization 
   Growth   Growth   Growth   Growth   Growth   Conservative 
   Class P   Class I   Class P   Class I   Class P   Class I 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (161,407)   1,417,951    (844,708)   4,495,616    (298,536)   219,903 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   (161,407)   1,417,951    (844,708)   4,495,616    (298,536)   219,903 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   896,838    8,088,410    7,100,257    14,035,826    5,866,250    913,631 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $735,431   $9,506,361   $6,255,549   $18,531,442   $5,567,714   $1,133,534 

 

See Notes to Financial StatementsSA-19

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2023                      

 

   Variable Accounts 
       Portfolio   Portfolio             
   Portfolio   Optimization   Optimization   Portfolio   Portfolio   Portfolio 
   Optimization   Moderate-   Moderate -   Optimization   Optimization   Optimization 
   Conservative   Conservative   Conservative   Moderate   Moderate   Growth 
   Class P   Class I   Class P   Class I   Class P   Class I 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $-   $- 
Net Investment Income   -    -    -    -    -    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (5,786)   1,073,803    2,108    8,782,616    (910)   11,241,876 
Capital gain distributions   -    -    -    -    -    - 
Realized Gain (Loss) on Investments   (5,786)   1,073,803    2,108    8,782,616    (910)   11,241,876 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   8,077    3,735,150    10,519    19,365,467    90,037    36,512,345 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $2,291   $4,808,953   $12,627   $28,148,083   $89,127   $47,754,221 

 

       Portfolio   Portfolio   Invesco V.I.   Invesco V.I.   Invesco V.I. 
   Portfolio   Optimization   Optimization   Discovery   EQV   EQV 
   Optimization   Aggressive-   Aggressive-   Mid Cap   International   International 
   Growth   Growth   Growth   Growth   Equity   Equity 
   Class P   Class I   Class P   Series I (1)   Series I   Series II 
INVESTMENT INCOME                              
Dividends  $-   $-   $-   $-   $4,062   $- 
Net Investment Income   -    -    -    -    4,062    - 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (34,029)   7,442,083    22,252    36    (63,235)   (319,870)
Capital gain distributions   -    -    -    -    1,521    22,768 
Realized Gain (Loss) on Investments   (34,029)   7,442,083    22,252    36    (61,714)   (297,102)
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   443,420    18,779,629    306,634    153    364,893    5,031,748 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $409,391   $26,221,712   $328,886   $189   $307,241   $4,734,646 

 

              Invesco V.I.    American    American    American 
             Main Street    Century    Century    Century 
    Invesco V.I.    Invesco V.I.    Small Cap    Inflation    VP Mid Cap    VP Mid Cap 
    Global    Global     Fund    Protection     Value     Value 
    Series I    Series II    Series I    Class I    Class I    Class II 
INVESTMENT INCOME                              
Dividends  $4,781   $-   $116,778   $833   $37,136   $860,338 
Net Investment Income   4,781    -    116,778    833    37,136    860,338 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (94,222)   (585,004)   39,165    (7)   (20,051)   (342,136)
Capital gain distributions   241,782    1,569,025    -    -    144,219    4,348,909 
Realized Gain (Loss) on Investments   147,560    984,021    39,165    (7)   124,168    4,006,773 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   396,522    3,453,763    1,330,176    93    (43,664)   (2,514,582)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $548,863   $4,437,784   $1,486,119   $919   $117,640   $2,352,529 

 

(1) Operations commenced or resumed during 2023 (See Financial Highlights for commencement date of operations).                                                

 

See Notes to Financial StatementsSA-20

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE YEAR ENDED DECEMBER 31, 2023                      

 

   Variable Accounts 
   American Funds                     
   IS American   American Funds   American Funds   American Funds         
   High-Income   IS Asset  

IS Asset

   IS Capital   American Funds   American Funds 
   Trust   Allocation   Allocation   World Bond   IS Growth   IS Growth 
   Class 2   Class 2   Class 4   Class 2   Class 2   Class 4 
INVESTMENT INCOME                              
Dividends  $99,794   $552,862   $1,891,627   $-   $54,179   $249,332 
Net Investment Income   99,794    552,862    1,891,627    -    54,179    249,332 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (55,262)   (282,620)   271,143    114    (397,349)   2,816,747 
Capital gain distributions   -    825,024    3,500,004    -    757,987    8,273,893 
Realized Gain (Loss) on Investments   (55,262)   542,404    3,771,147    114    360,638    11,090,640 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   109,993    2,026,756    6,576,317    2,392    3,971,443    34,413,550 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $154,525   $3,122,022   $12,239,091   $2,506   $4,386,260   $45,753,522 

 

   American Funds   American Funds      American Funds   BlackRock     
   IS   IS   American Funds   IS   60/40 Target   BlackRock 
   Growth-Income   Growth-Income   IS International   New World Fund   Allocation ETF   Basic Value 
   Class 2   Class 4   Class 2   Class 2   V.I. Class I   V.I. Class III 
INVESTMENT INCOME                              
Dividends  $145,410   $1,367,780   $33,455   $35,660   $474,017   $390,328 
Net Investment Income   145,410    1,367,780    33,455    35,660    474,017    390,328 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (25,800)   1,042,795    (150,149)   (121,716)   (117,085)   (462,260)
Capital gain distributions   486,537    6,190,836    -    -    -    1,033,053 
Realized Gain (Loss) on Investments   460,737    7,233,631    (150,149)   (121,716)   (117,085)   570,793 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   1,655,415    17,968,760    452,729    422,666    2,836,902    2,818,737 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $2,261,562   $26,570,171   $336,035   $336,610   $3,193,834   $3,779,858 

 

               DFA VA   DFA VA   DFA VA 
   BlackRock   BlackRock       International   International   Short-Term 
   Global   Global   BNY Mellon   Small   Value   Fixed 
   Allocation   Allocation   VIF Appreciation   Institutional  Institutional  Institutional 
   V.I. Class I   V.I. Class III   Service Shares   Class   Class   Class 
INVESTMENT INCOME                              
Dividends  $130,140   $1,702,902   $20,297   $167,175   $129,054   $291,821 
Net Investment Income   130,140    1,702,902    20,297    167,175    129,054    291,821 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (97,782)   (1,376,444)   (770,823)   (130,449)   (8,507)   17,451 
Capital gain distributions   -    -    285,427    -    25,755    - 
Realized Gain (Loss) on Investments   (97,782)   (1,376,444)   (485,396)   (130,449)   17,248    17,451 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   486,090    7,613,392    1,271,507    523,667    234,262    (19,455)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $518,448   $7,939,850   $806,408   $560,393   $380,564   $289,817 

 

See Notes to Financial StatementsSA-21

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE YEAR ENDED DECEMBER 31, 2023                      

 

   Variable Accounts 
   DFA VA   DFA VA US             
   US Large Value   Targeted Value   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP 
   Institutional  Institutional   Bond Index   Bond Index   Contrafund   Contrafund 
   Class   Class   Initial Class   Service Class 2   Initial Class   Service Class 2 
INVESTMENT INCOME                              
Dividends  $131,939   $57,204   $481,373   $86,198   $11,226   $209,992 
Net Investment Income   131,939    57,204    481,373    86,198    11,226    209,992 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (51,826)   (96,170)   (276,264)   (77,084)   (85,174)   1,362,025 
Capital gain distributions   80,413    254,546    -    -    74,645    2,950,220 
Realized Gain (Loss) on Investments   28,587    158,376    (276,264)   (77,084)   (10,529)   4,312,245 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   411,978    394,103    789,199    182,710    535,509    17,959,074 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $572,504   $609,683   $994,308   $191,824   $536,206   $22,481,311 

 

   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP 
   Freedom 2010   Freedom 2015   Freedom 2020   Freedom 2025   Freedom 2025   Freedom 2030 
   Portfolio   Portfolio   Portfolio   Portfolio   Portfolio   Portfolio 
   Service Class 2   Service Class 2   Service Class 2   Initial Class   Service Class 2   Initial Class 
INVESTMENT INCOME                              
Dividends  $39,036   $87,203   $166,104   $5,805   $349,910   $14,358 
Net Investment Income   39,036    87,203    166,104    5,805    349,910    14,358 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (125,115)   (16,894)   (60,134)   (1,470)   (23,902)   (61,843)
Capital gain distributions   66,428    48,991    41,091    -    -    - 
Realized Gain (Loss) on Investments   (58,687)   32,097    (19,043)   (1,470)   (23,902)   (61,843)
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   100,823    140,215    508,563    17,788    1,368,782    124,316 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $81,172   $259,515   $655,624   $22,123   $1,694,790   $76,831 

 

   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP   Fidelity VIP 
   Freedom 2030   Freedom 2035   Freedom 2035   Freedom 2045   Freedom 2045   Freedom 2055 
   Portfolio   Portfolio   Portfolio   Portfolio   Portfolio   Portfolio 
   Service Class 2   Initial Class   Service Class 2   Initial Class   Service Class 2   Initial Class 
INVESTMENT INCOME                              
Dividends  $333,859   $72,634   $267,444   $59,138   $211,603   $176 
Net Investment Income   333,859    72,634    267,444    59,138    211,603    176 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (56,919)   19,131    191,614    (99,909)   208,008    440 
Capital gain distributions   -    5,753    30,897    36,619    245,653    82 
Realized Gain (Loss) on Investments   (56,919)   24,884    222,511    (63,290)   453,661    522 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   1,753,034    402,520    1,808,690    604,354    2,153,718    916 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $2,029,974   $500,038   $2,298,645   $600,202   $2,818,982   $1,614 

 

See Notes to Financial StatementsSA-22

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2023                      

 

   Variable Accounts 
   Fidelity VIP   Fidelity VIP   Fidelity VIP           Fidelity VIP 
   Freedom Income   Freedom Income   Government   Fidelity VIP   Fidelity VIP   International 
   Portfolio   Portfolio   Money Market   Growth   Growth   Index 
   Initial Class   Service Class 2   Service Class   Initial Class   Service Class 2   Initial Class 
INVESTMENT INCOME                              
Dividends  $10,551   $83,558   $14,393,230   $214   $1,476   $556,069 
Net Investment Income   10,551    83,558    14,393,230    214    1,476    556,069 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (15,603)   (104,084)   -    (123)   546,894    (208,393)
Capital gain distributions   -    -    -    7,173    2,219,736    - 
Realized Gain (Loss) on Investments   (15,603)   (104,084)   -    7,050    2,766,630    (208,393)
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   22,233    192,847    -    35,837    10,134,342    2,010,701 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $17,181   $172,321   $14,393,230   $43,101   $12,902,448   $2,358,377 

 

   Fidelity VIP           Fidelity VIP   Fidelity VIP     
   International   Fidelity VIP   Fidelity VIP   Total Market   Total Market   Fidelity VIP 
   Index   Mid Cap   Mid Cap   Index   Index   Value Strategies 
   Service Class 2   Initial Class   Service Class 2   Initial Class   Service Class 2   Service Class 2 
INVESTMENT INCOME                              
Dividends  $90,938   $23,646   $161,577   $571,165   $50,650   $108,327 
Net Investment Income   90,938    23,646    161,577    571,165    50,650    108,327 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (79,171)   (40,589)   (1,591)   (586,794)   (13,168)   705,825 
Capital gain distributions   -    104,901    1,200,296    -    -    457,436 
Realized Gain (Loss) on Investments   (79,171)   64,312    1,198,705    (586,794)   (13,168)   1,163,261 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   411,933    410,252    4,309,152    10,686,754    1,126,087    1,021,317 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $423,700   $498,210   $5,669,434   $10,671,125   $1,163,569   $2,292,905 

 

                   Goldman Sachs     
                   VIT   Janus 
                   Multi-Strategy   Henderson 
   Templeton   Templeton   Templeton   Templeton   Alternatives   Enterprise 
   Foreign   Foreign   Global Bond   Global Bond   Institutional   Institutional 
   VIP Class 1   VIP Class 2   VIP Class 1   VIP Class 2   Shares (1)   Shares 
INVESTMENT INCOME                              
Dividends  $23,932   $590,907   $-   $-   $3,374   $1,215 
Net Investment Income   23,932    590,907    -    -    3,374    1,215 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (7,968)   (500,434)   (6,031)   (555,648)   20    (32,404)
Capital gain distributions   -    -    -    -    -    37,109 
Realized Gain (Loss) on Investments   (7,968)   (500,434)   (6,031)   (555,648)   20    4,705 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   120,809    3,387,369    23,603    1,182,553    (434)   92,761 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $136,773   $3,477,842   $17,572   $626,905   $2,960   $98,681 

 

(1) Operations commenced or resumed during 2023 (See Financial Highlights for commencement date of operations).    

 

See Notes to Financial StatementsSA-23

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE YEAR ENDED DECEMBER 31, 2023                      

 

   Variable Accounts 
       Janus       Lazard   Lazard   Lazard 
   Janus   Henderson   Janus   Retirement   Retirement   Retirement 
   Henderson   Overseas   Henderson   Global Dynamic   Global Dynamic   International 
   Enterprise  Institutional   Overseas   Multi-Asset   Multi-Asset   Equity 
   Service Shares   Shares   Service Shares   Investor Shares   Service Shares   Service Shares 
INVESTMENT INCOME                              
Dividends  $28,000   $14,737   $374,537   $-   $-   $31,653 
Net Investment Income   28,000    14,737    374,537    -    -    31,653 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (327,823)   (16,444)   472,618    (8,120)   (31,186)   (56,910)
Capital gain distributions   2,634,465    -    -    14,469    76,737    - 
Realized Gain (Loss) on Investments   2,306,642    (16,444)   472,618    6,349    45,551    (56,910)
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   3,071,710    100,994    1,789,922    22,790    100,694    382,565 
 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $5,406,352   $99,287   $2,637,077   $29,139   $146,245   $357,308 

 

   ClearBridge               ClearBridge     
   Variable   ClearBridge   ClearBridge   ClearBridge   Variable   Western Asset 
  Aggressive   Variable   Variable   Variable   Small Cap   Variable Global 
   Growth -   Aggressive   Mid Cap -   Mid Cap -   Growth -   High Yield Bond - 
   Class I   Growth - Class II   Class I   Class II   Class I   Class I 
INVESTMENT INCOME                              
Dividends  $937   $14,650   $2,385   $2,825   $-   $28,603 
Net Investment Income   937    14,650    2,385    2,825    -    28,603 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (42,220)   (1,018,609)   (83,264)   (98,927)   (87,461)   (799)
Capital gain distributions   31,011    2,374,733    10,636    81,314    -    - 
Realized Gain (Loss) on Investments   (11,209)   1,356,124    (72,628)   (17,613)   (87,461)   (799)
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   77,885    3,499,243    289,940    1,557,908    198,295    7,615 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $67,613   $4,870,017   $219,697   $1,543,120   $110,834   $35,419 

 

   Western Asset   Lord Abbett   Lord Abbett   Lord Abbett         
   Variable Global   Bond   Developing   Fundamental   Lord Abbett     
   High Yield Bond -   Debenture   Growth   Equity   Total Return   M Capital 
   Class II   Class VC   Class VC   Class VC   Class VC   Appreciation 
INVESTMENT INCOME                              
Dividends  $33,758   $1,274,340   $-   $38,391   $3,600,979   $333,008 
Net Investment Income   33,758    1,274,340    -    38,391    3,600,979    333,008 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (53,379)   (118,077)   (1,657,473)   (85,735)   (1,546,300)   (1,192,969)
Capital gain distributions   -    -    -    194,281    -    5,018,222 
Realized Gain (Loss) on Investments   (53,379)   (118,077)   (1,657,473)   108,546    (1,546,300)   3,825,253 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   84,927    358,061    2,673,436    754,667    2,959,972    11,271,063 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $65,306   $1,514,324   $1,015,963   $901,604   $5,014,651   $15,429,324 

  

See Notes to Financial StatementsSA-24

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE YEAR ENDED DECEMBER 31, 2023

 

   Variable Accounts 
               MFS   MFS   MFS 
               New Discovery   New Discovery   Total Return 
   M International   M Large Cap   M Large Cap   Series -   Series -   Series - 
   Equity   Growth   Value   Initial Class   Service Class   Initial Class 
INVESTMENT INCOME                              
Dividends  $2,530,862   $-   $928,488   $-   $-   $22,859 
Net Investment Income   2,530,862    -    928,488    -    -    22,859 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   131,191    698,258    720,270    (267,252)   (4,583,213)   (30,486)
Capital gain distributions   -    4,191,843    623,316    -    -    47,608 
Realized Gain (Loss) on Investments   131,191    4,890,101    1,343,586    (267,252)   (4,583,213)   17,122 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   9,342,011    15,415,590    803,599    486,487    7,450,569    78,087 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $12,004,064   $20,305,691   $3,075,673   $219,235   $2,867,356   $118,068 

 

   MFS   MFS   MFS   MFS   MFS   MFS 
   Utilities   Utilities   Value   Value   Government   Research 
   Series -   Series -   Series -   Series -   Securities -   International - 
   Initial Class   Service Class   Initial Class   Service Class   Initial Class   Initial Class 
INVESTMENT INCOME                              
Dividends  $3,605   $466,280   $78,260   $407,790   $962   $613 
Net Investment Income   3,605    466,280    78,260    407,790    962    613 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (5,579)   365,958    (17,506)   254,134    (67)   277 
Capital gain distributions   5,578    782,118    328,949    2,044,068    -    - 
Realized Gain (Loss) on Investments   (1)   1,148,076    311,443    2,298,202    (67)   277 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   (4,626)   (1,962,916)   8,692    (551,350)   (109)   5,831 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $(1,022)  $(348,560)  $398,395   $2,154,642   $786   $6,721 

 

   MFS           PIMCO         
   Blended   MFS   Neuberger Berman   Commodity-   PIMCO   PIMCO Global 
   Research   Global   Sustainable   RealReturn   Global Managed   Managed Asset 
   Small Cap Equity -   Real Estate -   Equity   Strategy -   Asset Allocation -   Allocation - 
   Initial Class   Initial Class   Class I   Institutional Class   Advisor Class   Institutional Class 
INVESTMENT INCOME                              
Dividends  $260   $262   $6,536   $2,592   $147,996   $5,038 
Net Investment Income   260    262    6,536    2,592    147,996    5,038 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (35)   (384)   (151,714)   (413)   (541,359)   (39,436)
Capital gain distributions   1,139    2,131    30,840    -    -    - 
Realized Gain (Loss) on Investments   1,104    1,747    (120,874)   (413)   (541,359)   (39,436)
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   4,903    1,769    584,608    (3,046)   1,130,088    51,660 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $6,267   $3,778   $470,270   $(867)  $736,725   $17,262 

 

See Notes to Financial Statements SA-25 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF OPERATIONS (Continued)

FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2023                      

 

   Variable Accounts 
   PIMCO Income -   Royce   State Street   T. Rowe Price   T. Rowe Price   T. Rowe Price 
   Administrative   Micro-Cap   Total Return   Blue Chip   Blue Chip   Equity 
   Class   Service Class   V.I.S. Class 3   Growth - I   Growth - II   Income - I 
INVESTMENT INCOME                              
Dividends  $602,488   $-   $51,361   $-   $-   $107,138 
Net Investment Income   602,488    -    51,361    -    -    107,138 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (594,542)   (661,739)   138    (396,965)   7,056,140    51,306 
Capital gain distributions   -    -    -    -    -    248,665 
Realized Gain (Loss) on Investments   (594,542)   (661,739)   138    (396,965)   7,056,140    299,971 
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   732,832    1,259,599    287,396    4,279,579    49,673,328    114,249 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $740,778   $597,860   $338,895   $3,882,614   $56,729,468   $521,358 

 

   T. Rowe Price   VanEck VIP   Vanguard VIF             
   Equity   Global Resources   Global Bond   Vanguard VIF   Vanguard VIF   Vanguard VIF 
   Income - II   Initial Class   Index (1)   High Yield Bond   Mid-Cap Index   Real Estate Index 
INVESTMENT INCOME                              
Dividends  $1,721,710   $821,982   $-   $140,769   $265,905   $117,776 
Net Investment Income   1,721,710    821,982    -    140,769    265,905    117,776 
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (363,104)   953,336    504    (80,014)   (192,492)   (324,196)
Capital gain distributions   3,972,349    -    -    -    333,688    222,192 
Realized Gain (Loss) on Investments   3,609,245    953,336    504    (80,014)   141,196    (102,004)
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   3,010,217    (2,841,802)   13,665    404,312    3,502,660    733,153 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $8,341,172   $(1,066,484)  $14,169   $465,067   $3,909,761   $748,925 

 

    Vanguard VIF    Vanguard VIF                     
    Total Bond    Total Stock                     
    Market Index    Market Index                     
INVESTMENT INCOME                              
Dividends  $19,063   $3,119                     
Net Investment Income   19,063    3,119                     
REALIZED GAIN (LOSS) ON INVESTMENTS                              
Realized gain (loss) on sale of investments   (13,087)   1,893                     
Capital gain distributions   -    15,199                     
Realized Gain (Loss) on Investments   (13,087)   17,092                     
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS   55,796    41,234                     
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $61,772   $61,445                     

 

(1) Operations commenced or resumed during 2023 (See Financial Highlights for commencement date of operations).

 

See Notes to Financial Statements SA-26 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Core Income   Core Income   Diversified Bond 
   Class I   Class P   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (22,030)   4,497    (16)   (1,469)   (8,037)   1,255,229 
Change in net unrealized appreciation  (depreciation) on investments   665,762    (675,618)   1,121    (261)   2,566,452    (20,185,749)
Net Increase (Decrease) in Net Assets  Resulting from Operations   643,732    (671,121)   1,105    (1,730)   2,558,415    (18,930,520)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   317,909    280,899    7,829    5,713    2,246,388    2,372,601 
Transfers between variable and fixed accounts, net   5,227,495    268,799    -    2,271    3,891,530    (617,472)
Policy maintenance charges   (293,212)   (197,107)   (2,378)   (2,121)   (2,351,658)   (2,653,850)
Policy benefits and terminations   (146,097)   (351,252)   -    (239)   (981,574)   (12,257,137)
Policy loans and loan repayments   (239,834)   (109,370)   21,150    (19,051)   (496,096)   (417,447)
Other   (774)   1,906    (1)   4    (6,585)   18,599 
Net Increase (Decrease) in Net Assets  Derived from Policy Transactions   4,865,487    (106,125)   26,600    (13,423)   2,302,005    (13,554,706)
NET INCREASE (DECREASE) IN NET ASSETS   5,509,219    (777,246)   27,705    (15,153)   4,860,420    (32,485,226)
NET ASSETS                              
Beginning of Year   4,849,317    5,626,563    146    15,299    69,435,523    101,920,749 
End of Year  $10,358,536   $4,849,317   $27,851   $146   $74,295,943   $69,435,523 

 

   Diversified Bond   Floating Rate Income   Floating Rate Income 
   Class P   Class I   Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (52,874)   (39,994)   1,050,742    971,028    7,126    (814)
Change in net unrealized appreciation (depreciation) on investments   229,443    (414,774)   3,113,884    (1,614,105)   84,814    (3,231)
Net Increase (Decrease) in Net Assets Resulting from Operations   176,569    (454,768)   4,164,626    (643,077)   91,940    (4,045)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,355,603    569,820    1,197,143    1,187,758    279,509    99,733 
Transfers between variable and fixed accounts, net   2,415,039    910,653    (949,692)   (3,560,437)   142,906    403,672 
Policy maintenance charges   (598,097)   (345,084)   (1,065,915)   (1,210,997)   (79,823)   (66,146)
Policy benefits and terminations   (28,486)   (8,095)   (1,294,373)   (1,145,387)   -    (8,001)
Policy loans and loan repayments   (9,633)   (4,488)   (2,014,985)   (145,152)   (5)   (17,161)
Other   (596)   (621)   (1,988)   (684)   322    (16)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   3,133,830    1,122,185    (4,129,810)   (4,874,899)   342,909    412,081 
NET INCREASE (DECREASE) IN NET ASSETS   3,310,399    667,417    34,816    (5,517,976)   434,849    408,036 
NET ASSETS                              
Beginning of Year   2,854,420    2,187,003    32,758,473    38,276,449    595,962    187,926 
End of Year  $6,164,819   $2,854,420   $32,793,289   $32,758,473   $1,030,811   $595,962 

 

See Notes to Financial Statements SA-27 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year/Period Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   High Yield Bond   High Yield Bond   Inflation Managed 
   Class I   Class P   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   1,754,133    2,382,284    5,763    (13,283)   782,139    1,591,968 
Change in net unrealized appreciation (depreciation) on investments   7,072,812    (10,991,037)   95,239    (29,904)   1,893,714    (11,025,590)
Net Increase (Decrease) in Net Assets Resulting from Operations   8,826,945    (8,608,753)   101,002    (43,187)   2,675,853    (9,433,622)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   2,616,012    2,573,829    334,023    156,881    2,506,955    2,330,967 
Transfers between variable and fixed accounts, net   5,109,307    (4,571,760)   502,521    124,065    9,359,620    (345,705)
Policy maintenance charges   (3,073,215)   (3,214,779)   (107,873)   (80,944)   (2,976,728)   (3,009,874)
Policy benefits and terminations   (1,340,570)   (1,820,647)   (2,698)   (1,142)   (1,909,625)   (2,168,376)
Policy loans and loan repayments   (275,474)   (111,867)   (2,573)   (31,540)   (262,552)   (365,060)
Other   (9,527)   2,120    3,707    92    1,505    587 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   3,026,533    (7,143,104)   727,107    167,412    6,719,175    (3,557,461)
NET INCREASE (DECREASE) IN NET ASSETS   11,853,478    (15,751,857)   828,109    124,225    9,395,028    (12,991,083)
NET ASSETS                              
Beginning of Year   71,206,687    86,958,544    486,168    361,943    66,089,815    79,080,898 
End of Year  $83,060,165   $71,206,687   $1,314,277   $486,168   $75,484,843   $66,089,815 

 

   Inflation Managed   Intermediate Bond   Managed Bond 
   Class P   Class P (1)   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (35,374)   1,706    9,282    (406)   2,777,666    3,100,080 
Change in net unrealized appreciation (depreciation) on investments   96,811    (59,564)   75,637    1,290    13,303,897    (45,076,623)
Net Increase (Decrease) in Net Assets Resulting from Operations   61,437    (57,858)   84,919    884    16,081,563    (41,976,543)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   538,047    536,210    211,921    9,313    8,498,467    8,610,144 
Transfers between variable and fixed accounts, net   490,978    228,950    1,540,282    233,759    (4,442,146)   (1,691,097)
Policy maintenance charges   (126,011)   (65,007)   (106,850)   (8,528)   (10,093,014)   (10,131,284)
Policy benefits and terminations   (8,039)   -    -    -    (4,096,984)   (8,993,654)
Policy loans and loan repayments   (52)   (14,098)   (18,107)   -    (377,370)   (569,784)
Other   (881)   (13)   376    (592)   (22,810)   10,091 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   894,042    686,042    1,627,622    233,952    (10,533,857)   (12,765,584)
NET INCREASE (DECREASE) IN NET ASSETS   955,479    628,184    1,712,541    234,836    5,547,706    (54,742,127)
NET ASSETS                              
Beginning of Year or Period   883,059    254,875    234,836    -    251,020,700    305,762,827 
End of Year or Period  $1,838,538   $883,059   $1,947,377   $234,836   $256,568,406   $251,020,700 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).

 

See Notes to Financial Statements SA-28 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Managed Bond   Short Duration Bond   Short Duration Bond 
   Class P   Class I   Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (58,785)   (19,485)   498,503    1,376,089    (22,372)   (20,359)
Change in net unrealized appreciation (depreciation) on investments   305,595    (177,204)   3,498,280    (5,812,723)   207,430    (35,300)
Net Increase (Decrease) in Net Assets Resulting from Operations   246,810    (196,689)   3,996,783    (4,436,634)   185,058    (55,659)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,521,730    496,953    4,522,257    5,078,791    584,873    604,062 
Transfers between variable and fixed accounts, net   786,041    1,226,165    11,354,329    (16,218,002)   1,835,690    1,073,946 
Policy maintenance charges   (349,661)   (171,065)   (4,018,992)   (4,146,951)   (414,866)   (262,660)
Policy benefits and terminations   (197)   (1,063)   (3,091,216)   (3,806,175)   (4,995)   - 
Policy loans and loan repayments   (20,306)   146    (362,805)   (88,498)   24,522    (22,835)
Other   1,019    (1,318)   (3,049)   166    552    (139)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   1,938,626    1,549,818    8,400,524    (19,180,669)   2,025,776    1,392,374 
NET INCREASE (DECREASE) IN NET ASSETS   2,185,436    1,353,129    12,397,307    (23,617,303)   2,210,834    1,336,715 
NET ASSETS                              
Beginning of Year   2,229,188    876,059    75,123,147    98,740,450    2,380,112    1,043,397 
End of Year  $4,414,624   $2,229,188   $87,520,454   $75,123,147   $4,590,946   $2,380,112 

 

   Emerging Markets Debt   Emerging Markets Debt   Dividend Growth 
   Class I   Class P   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (5,238)   (27,288)   (1,091)   (2,018)   6,960,826    6,045,525 
Change in net unrealized appreciation  (depreciation) on investments   626,016    (508,040)   15,281    (2,948)   6,132,462    (18,611,357)
Net Increase (Decrease) in Net Assets  Resulting from Operations   620,778    (535,328)   14,190    (4,966)   13,093,288    (12,565,832)
INCREASE (DECREASE) IN NET ASSETS  FROM POLICY TRANSACTIONS                              
Payments received from policyholders   116,664    142,889    21,593    19,894    2,417,203    2,637,544 
Transfers between variable and fixed accounts, net   68,047    (252,618)   32,259    22,219    (1,368,596)   164,730 
Policy maintenance charges   (130,838)   (130,732)   (11,640)   (9,249)   (2,941,240)   (3,046,069)
Policy benefits and terminations   (66,305)   (145,815)   -    -    (2,805,373)   (2,894,976)
Policy loans and loan repayments   (6,732)   (19,133)   -    -    (2,405,056)   (693,243)
Other   (25)   717    6    (92)   (17,897)   18,914 
Net Increase (Decrease) in Net Assets   Derived from Policy Transactions   (19,189)   (404,692)   42,218    32,772    (7,120,959)   (3,813,100)
NET INCREASE (DECREASE) IN NET ASSETS   601,589    (940,020)   56,408    27,806    5,972,329    (16,378,932)
NET ASSETS                              
Beginning of Year   5,095,350    6,035,370    85,224    57,418    103,027,119    119,406,051 
End of Year  $5,696,939   $5,095,350   $141,632   $85,224   $108,999,448   $103,027,119 

 

See Notes to Financial Statements SA-29 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Dividend Growth   Equity Index   Equity Index 
   Class P   Class I   Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   29,402    23,890    46,050,509    58,999,870    63,298    (123,857)
Change in net unrealized appreciation (depreciation) on investments   346,658    (95,525)   189,861,624    (269,338,221)   31,601,911    (8,061,211)
Net Increase (Decrease) in Net Assets Resulting from Operations   376,060    (71,635)   235,912,133    (210,338,351)   31,665,209    (8,185,068)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   433,028    333,502    23,902,597    24,930,904    35,747,323    22,239,478 
Transfers between variable and fixed accounts, net   1,751,976    690,586    25,414,192    (15,298,415)   63,071,608    52,437,473 
Policy maintenance charges   (261,798)   (155,399)   (26,966,551)   (26,127,030)   (20,124,980)   (9,992,506)
Policy benefits and terminations   -    (3,885)   (21,167,585)   (19,564,413)   (3,764,695)   (236,097)
Policy loans and loan repayments   (2,612)   -    (4,373,745)   (550,453)   3,399,683    (2,362,344)
Other   (1,394)   2,438    19,290    162,300    18,140    (141,444)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   1,919,200    867,242    (3,171,802)   (36,447,107)   78,347,079    61,944,560 
NET INCREASE (DECREASE) IN NET ASSETS   2,295,260    795,607    232,740,331    (246,785,458)   110,012,288    53,759,492 
NET ASSETS                              
Beginning of Year   1,542,558    746,951    922,333,787    1,169,119,245    86,438,308    32,678,816 
End of Year  $3,837,818   $1,542,558   $1,155,074,118   $922,333,787   $196,450,596   $86,438,308 

 

   Focused Growth   Growth   Growth 
   Class I   Class I   Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   3,017,864    1,992,548    15,945,010    30,816,319    4,639    1,867 
Change in net unrealized appreciation (depreciation) on investments   9,437,760    (19,651,268)   69,484,754    (150,433,952)   1,356,711    (856,818)
Net Increase (Decrease) in Net Assets Resulting from Operations   12,455,624    (17,658,720)   85,429,764    (119,617,633)   1,361,350    (854,951)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,062,278    1,324,600    5,963,555    6,221,471    1,469,586    876,968 
Transfers between variable and fixed accounts, net   (1,213,092)   (527,422)   (7,599,931)   (23,871,269)   1,365,276    1,202,055 
Policy maintenance charges   (1,234,456)   (1,248,985)   (10,174,986)   (10,106,620)   (689,924)   (444,162)
Policy benefits and terminations   (1,243,946)   (532,163)   (7,383,352)   (9,306,891)   (17,981)   (12,080)
Policy loans and loan repayments   (152,358)   69,845    (665,394)   (248,095)   (45,603)   (15,499)
Other   (4,361)   2,093    3,222    71,376    (1,693)   (6,205)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (2,785,935)   (912,032)   (19,856,886)   (37,240,028)   2,079,661    1,601,077 
NET INCREASE (DECREASE) IN NET ASSETS   9,669,689    (18,570,752)   65,572,878    (156,857,661)   3,441,011    746,126 
NET ASSETS                              
Beginning of Year   33,910,279    52,481,031    247,060,813    403,918,474    3,004,549    2,258,423 
End of Year  $43,579,968   $33,910,279   $312,633,691   $247,060,813   $6,445,560   $3,004,549 

 

See Notes to Financial Statements SA-30 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year/Period Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Hedged Equity   Large-Cap Core   Large-Cap Core 
   Class P   Class I   Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   87,064    (27,461)   13,431,181    9,809,877    15,000    (2,857)
Change in net unrealized appreciation (depreciation) on investments   321,110    (5,571)   39,019,288    (64,038,722)   289,318    (173,089)
Net Increase (Decrease) in Net Assets  Resulting from Operations   408,174    (33,032)   52,450,469    (54,228,845)   304,318    (175,946)
INCREASE (DECREASE) IN NET ASSETS  FROM POLICY TRANSACTIONS                              
Payments received from policyholders   840,037    447,175    5,043,643    5,247,217    240,037    193,614 
Transfers between variable and fixed accounts, net   1,926,145    1,572,261    (2,827,595)   (1,161,761)   668,496    179,273 
Policy maintenance charges   (670,830)   (386,444)   (9,519,863)   (9,465,972)   (203,953)   (125,371)
Policy benefits and terminations   (3,870)   (320)   (9,025,636)   (7,114,172)   -    - 
Policy loans and loan repayments   (60,013)   441    (654,831)   37,391    37,629    (17,854)
Other   (401)   2,908    (41,570)   5,695    (1,591)   (96)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   2,031,068    1,636,021    (17,025,852)   (12,451,602)   740,618    229,566 
NET INCREASE (DECREASE) IN NET ASSETS   2,439,242    1,602,989    35,424,617    (66,680,447)   1,044,936    53,620 
NET ASSETS                              
Beginning of Year   2,013,996    411,007    200,983,427    267,663,874    823,738    770,118 
End of Year  $4,453,238   $2,013,996   $236,408,044   $200,983,427   $1,868,674   $823,738 

 

   Large-Cap Growth   Large-Cap Growth   Large-Cap Value 
   Class I   Class P (1)   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   4,515,065    2,856,134    24,526    (175)   8,572,087    10,098,805 
Change in net unrealized appreciation (depreciation) on investments   21,727,950    (38,701,208)   219,459    (4,063)   12,833,376    (21,909,518)
Net Increase (Decrease) in Net Assets Resulting from Operations   26,243,015    (35,845,074)   243,985    (4,238)   21,405,463    (11,810,713)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   2,149,342    2,315,580    449,343    90,880    3,271,883    3,464,836 
Transfers between variable and fixed accounts, net   7,044,690    1,243,583    281,074    65,229    1,662,400    (3,995,694)
Policy maintenance charges   (2,843,810)   (2,687,687)   (55,954)   (3,124)   (4,787,648)   (4,575,934)
Policy benefits and terminations   (1,659,213)   (1,721,444)   -    -    (4,935,876)   (3,770,204)
Policy loans and loan repayments   (766,747)   (163,788)   -    -    (2,466,649)   (569,277)
Other   (282)   (14,133)   (53)   (298)   13,818    (8,654)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   3,923,980    (1,027,889)   674,410    152,687    (7,242,072)   (9,454,927)
NET INCREASE (DECREASE) IN NET ASSETS   30,166,995    (36,872,963)   918,395    148,449    14,163,391    (21,265,640)
NET ASSETS                              
Beginning of Year or Period   58,370,883    95,243,846    148,449    -    149,297,080    170,562,720 
End of Year or Period  $88,537,878   $58,370,883   $1,066,844   $148,449   $163,460,471   $149,297,080 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).                                                                  

 

See Notes to Financial Statements SA-31 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Large-Cap Value   Mid-Cap Equity   Mid-Cap Growth 
   Class P   Class I   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   15,184    21,169    5,116,866    7,043,356    1,784,202    13,194,351 
Change in net unrealized appreciation (depreciation) on investments   398,587    (147,770)   14,814,382    (35,022,716)   12,047,576    (49,668,875)
Net Increase (Decrease) in Net Assets Resulting from Operations   413,771    (126,601)   19,931,248    (27,979,360)   13,831,778    (36,474,524)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   610,319    393,889    3,376,114    3,591,069    2,217,497    2,561,981 
Transfers between variable and fixed accounts, net   534,582    313,643    3,278,193    (3,083,268)   3,110,709    (23,510,910)
Policy maintenance charges   (418,818)   (328,347)   (4,138,587)   (4,192,083)   (2,311,585)   (2,484,780)
Policy benefits and terminations   (5,378)   -    (3,550,749)   (3,014,037)   (2,516,564)   (2,100,833)
Policy loans and loan repayments   49,927    2,030    (754,773)   (71,755)   (400,116)   (276,328)
Other   (268)   (660)   1,751    (2,061)   (14,874)   9,724 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   770,364    380,555    (1,788,051)   (6,772,135)   85,067    (25,801,146)
NET INCREASE (DECREASE) IN NET ASSETS   1,184,135    253,954    18,143,197    (34,751,495)   13,916,845    (62,275,670)
NET ASSETS                              
Beginning of Year   2,207,814    1,953,860    130,557,378    165,308,873    70,847,677    133,123,347 
End of Year  $3,391,949   $2,207,814   $148,700,575   $130,557,378   $84,764,522   $70,847,677 

 

   Mid-Cap Growth   Mid-Cap Value   Mid-Cap Value 
   Class P   Class I   Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (26,237)   (27,954)   770,560    877,356    5,482    5,349 
Change in net unrealized appreciation (depreciation) on investments   193,948    (170,377)   2,353,287    (2,452,367)   82,472    (20,692)
Net Increase (Decrease) in Net Assets Resulting from Operations   167,711    (198,331)   3,123,847    (1,575,011)   87,954    (15,343)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   468,804    325,281    710,774    745,903    215,514    74,498 
Transfers between variable and fixed accounts, net   102,585    91,293    638,583    658,676    124,764    188,969 
Policy maintenance charges   (149,383)   (125,023)   (642,920)   (678,351)   (61,434)   (31,530)
Policy benefits and terminations   (2,154)   -    (309,744)   (440,731)   (5,668)   (2,114)
Policy loans and loan repayments   (12,753)   1,368    (72,980)   (102,538)   6,125    (5,641)
Other   (572)   (1,345)   4,061    1,651    2,115    121 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   406,527    291,574    327,774    184,610    281,416    224,303 
NET INCREASE (DECREASE) IN NET ASSETS   574,238    93,243    3,451,621    (1,390,401)   369,370    208,960 
NET ASSETS                              
Beginning of Year   672,103    578,860    18,877,903    20,268,304    337,077    128,117 
End of Year  $1,246,341   $672,103   $22,329,524   $18,877,903   $706,447   $337,077 

 

See Notes to Financial Statements SA-32 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Small-Cap Equity   Small-Cap Equity   Small-Cap Growth 
   Class I   Class P   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   496,411    1,805,768    12,035    27,336    1,240,757    1,160,337 
Change in net unrealized appreciation (depreciation) on investments   3,009,241    (5,882,432)   81,500    (107,999)   1,757,918    (11,118,675)
Net Increase (Decrease) in Net Assets Resulting from Operations   3,505,652    (4,076,664)   93,535    (80,663)   2,998,675    (9,958,338)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   902,679    950,083    126,995    96,336    -    - 
Transfers between variable and fixed accounts, net   2,278,023    (3,092,550)   69,137    117,229    (713,822)   (414,145)
Policy maintenance charges   (942,625)   (1,010,986)   (116,701)   (100,476)   (628,113)   (675,269)
Policy benefits and terminations   (403,105)   (382,984)   (2,690)   (3,441)   (428,583)   (534,494)
Policy loans and loan repayments   (171,506)   (167,691)   (29)   -    (153,495)   (140,079)
Other   (983)   10,438    72    (78)   1,622    (3,170)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   1,662,483    (3,693,690)   76,784    109,570    (1,922,391)   (1,767,157)
NET INCREASE (DECREASE) IN NET ASSETS   5,168,135    (7,770,354)   170,319    28,907    1,076,284    (11,725,495)
NET ASSETS                              
Beginning of Year   25,930,826    33,701,180    613,637    584,730    22,056,138    33,781,633 
End of Year  $31,098,961   $25,930,826   $783,956   $613,637   $23,132,422   $22,056,138 

 

   Small-Cap Index   Small-Cap Index   Small-Cap Value 
   Class I   Class P   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   6,659,409    9,332,008    (145,714)   (160,499)   2,112,750    6,649,580 
Change in net unrealized appreciation (depreciation) on investments   27,588,024    (67,172,932)   3,314,854    (1,593,232)   2,997,591    (21,867,064)
Net Increase (Decrease) in Net Assets  Resulting from Operations   34,247,433    (57,840,924)   3,169,140    (1,753,731)   5,110,341    (15,217,484)
INCREASE (DECREASE) IN NET ASSETS  FROM POLICY TRANSACTIONS                              
Payments received from policyholders   5,535,861    6,126,383    4,890,921    2,570,110    2,020,050    2,087,576 
Transfers between variable and fixed accounts, net   3,084,148    3,443,300    8,896,139    6,432,043    (1,478,846)   (6,925,843)
Policy maintenance charges   (7,731,375)   (8,034,776)   (2,905,634)   (1,736,383)   (2,060,382)   (2,242,413)
Policy benefits and terminations   (5,491,448)   (9,778,621)   (81,823)   (28,420)   (1,090,852)   (3,198,571)
Policy loans and loan repayments   (467,311)   512,623    (48,449)   (108,129)   (197,897)   (152,288)
Other   16,055    (17,229)   3,393    9,949    3,809    4,068 
Net Increase (Decrease) in Net Assets  Derived from Policy Transactions   (5,054,070)   (7,748,320)   10,754,547    7,139,170    (2,804,118)   (10,427,471)
NET INCREASE (DECREASE) IN NET ASSETS   29,193,363    (65,589,244)   13,923,687    5,385,439    2,306,223    (25,644,955)
NET ASSETS                              
Beginning of Year   213,975,691    279,564,935    11,857,027    6,471,588    69,385,448    95,030,403 
End of Year  $243,169,054   $213,975,691   $25,780,714   $11,857,027   $71,691,671   $69,385,448 

 

See Notes to Financial Statements SA-33 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Small-Cap Value   Value   Value 
   Class P   Class I   Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (53,643)   15,453    1,589,863    3,388,903    6,409    8,247 
Change in net unrealized appreciation (depreciation) on investments   139,105    (104,568)   775,102    (3,858,870)   12,590    (7,165)
Net Increase (Decrease) in Net Assets Resulting from Operations   85,462    (89,115)   2,364,965    (469,967)   18,999    1,082 
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   273,688    191,802    3,107,341    3,271,766    83,698    75,686 
Transfers between variable and fixed accounts, net   323,063    182,837    (15,932)   (4,493,058)   152,442    61,576 
Policy maintenance charges   (140,453)   (106,080)   (2,577,673)   (2,765,724)   (71,728)   (50,907)
Policy benefits and terminations   (1,106)   (34)   (1,715,222)   (1,391,953)   -    - 
Policy loans and loan repayments   (8,866)   (7,118)   (194,332)   (363,168)   (1,384)   - 
Other   1,366    (547)   480    3,577    35    324 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   447,692    260,860    (1,395,338)   (5,738,560)   163,063    86,679 
NET INCREASE (DECREASE) IN NET ASSETS   533,154    171,745    969,627    (6,208,527)   182,062    87,761 
NET ASSETS                              
Beginning of Year   556,397    384,652    64,000,318    70,208,845    231,000    143,239 
End of Year  $1,089,551   $556,397   $64,969,945   $64,000,318   $413,062   $231,000 

 

   Value Advantage   Value Advantage   Emerging Markets 
   Class I   Class P   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   526,637    2,131,851    30,479    31,492    1,693,157    2,443,225 
Change in net unrealized appreciation (depreciation) on investments   426,790    (2,483,043)   112,581    (41,789)   10,180,856    (46,665,017)
Net Increase (Decrease) in Net Assets Resulting from Operations   953,427    (351,192)   143,060    (10,297)   11,874,013    (44,221,792)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   500,804    587,003    183,919    275,243    4,891,971    4,686,719 
Transfers between variable and fixed accounts, net   (3,503,308)   (879,218)   206,649    691,331    678,887    5,882,651 
Policy maintenance charges   (374,954)   (374,909)   (189,042)   (138,096)   (4,235,674)   (4,214,861)
Policy benefits and terminations   (224,628)   (44,344)   -    (2,453)   (2,389,049)   (4,972,688)
Policy loans and loan repayments   (57,158)   3,139    (1,064)   887    (200,901)   (94,923)
Other   (78)   (88)   (302)   3,016    935    29,498 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (3,659,322)   (708,417)   200,160    829,928    (1,253,831)   1,316,396 
NET INCREASE (DECREASE) IN NET ASSETS   (2,705,895)   (1,059,609)   343,220    819,631    10,620,182    (42,905,396)
NET ASSETS                              
Beginning of Year   13,159,067    14,218,676    1,216,730    397,099    133,605,498    176,510,894 
End of Year  $10,453,172   $13,159,067   $1,559,950   $1,216,730   $144,225,680   $133,605,498 

 

See Notes to Financial Statements SA-34 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year/Period Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Emerging Markets   International Growth   International Large-Cap 
   Class P   Class P (1)   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (126,812)   (84,136)   3,310    165    7,648,268    8,099,795 
Change in net unrealized appreciation (depreciation) on investments   337,079    (327,118)   11,156    9    31,368,214    (46,412,772)
Net Increase (Decrease) in Net Assets Resulting from Operations   210,267    (411,254)   14,466    174    39,016,482    (38,312,977)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   977,585    440,441    17,396    219    7,295,574    7,576,333 
Transfers between variable and fixed accounts, net   1,426,016    738,629    337,121    8,466    3,017,391    (1,575,349)
Policy maintenance charges   (290,236)   (222,067)   (22,064)   (285)   (6,425,994)   (6,290,818)
Policy benefits and terminations   (2,001)   -    -    -    (4,413,653)   (4,747,245)
Policy loans and loan repayments   25,908    (8,394)   (1,369)   -    (707,766)   (334,082)
Other   2,077    (1,939)   (182)   239    (9,644)   12,222 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   2,139,349    946,670    330,902    8,639    (1,244,092)   (5,358,939)
NET INCREASE (DECREASE) IN NET ASSETS   2,349,616    535,416    345,368    8,813    37,772,390    (43,671,916)
NET ASSETS                              
Beginning of Year or Period   1,891,307    1,355,891    8,813    -    211,784,324    255,456,240 
End of Year or Period  $4,240,923   $1,891,307   $354,181   $8,813   $249,556,714   $211,784,324 

 

   International Large-Cap   International Small-Cap   International Small-Cap 
   Class P   Class I   Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   8,265    94    503,079    794,074    (12,342)   (7,301)
Change in net unrealized appreciation (depreciation) on investments   562,450    (172,291)   5,302,825    (7,971,975)   165,251    (68,322)
Net Increase (Decrease) in Net Assets Resulting from Operations   570,715    (172,197)   5,805,904    (7,177,901)   152,909    (75,623)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,257,614    397,621    1,006,642    1,054,119    250,643    145,778 
Transfers between variable and fixed accounts, net   1,481,220    677,803    88,752    (271,884)   151,873    374,372 
Policy maintenance charges   (299,117)   (180,680)   (980,907)   (992,841)   (154,917)   (95,899)
Policy benefits and terminations   (5,528)   (167)   (523,615)   (929,022)   (231)   - 
Policy loans and loan repayments   (9,315)   1,057    (90,528)   (62,972)   (1,036)   (4,355)
Other   3,103    56    2,257    3,615    (280)   (227)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   2,427,977    895,690    (497,399)   (1,198,985)   246,052    419,669 
NET INCREASE (DECREASE) IN NET ASSETS   2,998,692    723,493    5,308,505    (8,376,886)   398,961    344,046 
NET ASSETS                              
Beginning of Year   1,885,439    1,161,946    34,069,180    42,446,066    756,801    412,755 
End of Year  $4,884,131   $1,885,439   $39,377,685   $34,069,180   $1,155,762   $756,801 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).                                                

 

See Notes to Financial Statements SA-35 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   International Value   Health Sciences   Health Sciences 
   Class I   Class I   Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   5,756,024    3,175,547    5,644,741    4,519,909    20,624    15,517 
Change in net unrealized appreciation (depreciation) on investments   20,437,910    (5,086,859)   (2,854,536)   (10,506,189)   52,862    (72,046)
Net Increase (Decrease) in Net Assets Resulting from Operations   26,193,934    (1,911,312)   2,790,205    (5,986,280)   73,486    (56,529)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   5,058,267    5,478,954    2,523,366    2,738,243    582,212    410,016 
Transfers between variable and fixed accounts, net   (6,261,217)   (3,132,733)   (3,849,338)   (1,075,521)   269,205    299,595 
Policy maintenance charges   (5,725,154)   (5,531,684)   (2,709,741)   (2,771,684)   (327,579)   (264,713)
Policy benefits and terminations   (3,457,737)   (4,813,303)   (2,642,900)   (2,215,207)   (337,630)   (5,563)
Policy loans and loan repayments   (135,087)   36,630    (519,412)   (384,702)   (45,932)   (5,691)
Other   (12,404)   7,259    (18,880)   (14,673)   10    (3,037)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (10,533,332)   (7,954,877)   (7,216,905)   (3,723,544)   140,286    430,607 
NET INCREASE (DECREASE) IN NET ASSETS   15,660,602    (9,866,189)   (4,426,700)   (9,709,824)   213,772    374,078 
NET ASSETS                              
Beginning of Year   134,742,811    144,609,000    90,600,348    100,310,172    1,794,045    1,419,967 
End of Year  $150,403,413   $134,742,811   $86,173,648   $90,600,348   $2,007,817   $1,794,045 

 

   Real Estate   Real Estate   Technology 
   Class I   Class P   Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   2,082,073    3,845,805    (3,227)   2,328    2,426,903    1,713,863 
Change in net unrealized appreciation (depreciation) on investments   8,386,152    (32,806,041)   12,106    (14,551)   14,632,834    (20,176,248)
Net Increase (Decrease) in Net Assets Resulting from Operations   10,468,225    (28,960,236)   8,879    (12,223)   17,059,737    (18,462,385)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   2,510,842    2,572,665    29,752    14,710    1,318,429    1,400,431 
Transfers between variable and fixed accounts, net   1,179,237    (2,509,583)   18,926    23,491    1,178,514    (148,365)
Policy maintenance charges   (2,846,830)   (3,079,668)   (23,524)   (19,025)   (1,287,081)   (1,223,161)
Policy benefits and terminations   (1,598,171)   (1,941,946)   -    -    (2,535,996)   (493,941)
Policy loans and loan repayments   (447,669)   (152,937)   -    -    (362,615)   (156,668)
Other   (15,412)   494    (148)   (7)   (12,199)   371 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (1,218,003)   (5,110,975)   25,006    19,169    (1,700,948)   (621,333)
NET INCREASE (DECREASE) IN NET ASSETS   9,250,222    (34,071,211)   33,885    6,946    15,358,789    (19,083,718)
NET ASSETS                              
Beginning of Year   81,247,460    115,318,671    47,644    40,698    32,750,895    51,834,613 
End of Year  $90,497,682   $81,247,460   $81,529   $47,644   $48,109,684   $32,750,895 

 

See Notes to Financial Statements SA-36 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year/Period Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Technology   ESG Diversified   ESG Diversified Growth 
   Class P   Class P   Class P (1) 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (10,538)   (3,916)   1,871    (1,066)   35,399    319,264 
Change in net unrealized appreciation (depreciation) on investments   700,741    (470,041)   10,309    120    100,685    10,919 
Net Increase (Decrease) in Net Assets Resulting from Operations   690,203    (473,957)   12,180    (946)   136,084    330,183 
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   661,754    427,687    44,227    4,317    310,031    25,930 
Transfers between variable and fixed accounts, net   161,179    170,581    97,954    22,737    626,874    220,623 
Policy maintenance charges   (312,139)   (213,263)   (30,165)   (9,010)   (250,133)   (122,197)
Policy benefits and terminations   (12,004)   -    -    -    (1,189)   - 
Policy loans and loan repayments   (8,231)   (738)   -    -    22,887    (26,400)
Other   (111)   (1,538)   (158)   (36)   799    (6,524)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   490,448    382,729    111,858    18,008    709,269    91,432 
NET INCREASE (DECREASE) IN NET ASSETS   1,180,651    (91,228)   124,038    17,062    845,353    421,615 
NET ASSETS                              
Beginning of Year or Period   1,115,773    1,207,001    23,566    6,504    421,615    - 
End of Year or Period  $2,296,424   $1,115,773   $147,604   $23,566   $1,266,968   $421,615 

 

   PSF Avantis   PSF Avantis   Pacific Dynamix - 
   Balanced Allocation Class D   Balanced Allocation Class P   Conservative Growth Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   387,085    129,342    (16,594)   (5,554)   334,066    197,892 
Change in net unrealized appreciation (depreciation) on investments   1,119,814    (1,905,534)   133,143    (59,971)   1,410,100    (2,736,282)
Net Increase (Decrease) in Net Assets Resulting from Operations   1,506,899    (1,776,192)   116,549    (65,525)   1,744,166    (2,538,390)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,162,656    1,191,863    251,535    188,782    887,088    1,062,564 
Transfers between variable and fixed accounts, net   (736,268)   632,277    14,523    511,146    (407,185)   804,082 
Policy maintenance charges   (752,141)   (775,677)   (172,920)   (137,855)   (927,691)   (980,631)
Policy benefits and terminations   (184,395)   (65,496)   -    -    (387,262)   (204,531)
Policy loans and loan repayments   (112,461)   394    6,211    (10,053)   (63,410)   121,652 
Other   (4,822)   865    57    1,607    5,970    (217)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (627,431)   984,226    99,406    553,627    (892,490)   802,919 
NET INCREASE (DECREASE) IN NET ASSETS   879,468    (791,966)   215,955    488,102    851,676    (1,735,471)
NET ASSETS                              
Beginning of Year   10,798,693    11,590,659    757,738    269,636    15,439,824    17,175,295 
End of Year  $11,678,161   $10,798,693   $973,693   $757,738   $16,291,500   $15,439,824 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).                                                                  

 

See Notes to Financial Statements SA-37 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Pacific Dynamix -   Pacific Dynamix -   Pacific Dynamix - 
   Conservative Growth Class P   Moderate Growth Class I   Moderate Growth Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (161,407)   (53,170)   1,417,951    1,522,740    (844,708)   (970,233)
Change in net unrealized appreciation (depreciation) on investments   896,838    (430,075)   8,088,410    (13,753,165)   7,100,257    (3,192,272)
Net Increase (Decrease) in Net Assets Resulting from Operations   735,431    (483,245)   9,506,361    (12,230,425)   6,255,549    (4,162,505)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,519,430    759,953    5,056,556    5,340,655    7,069,402    7,898,559 
Transfers between variable and fixed accounts, net   2,815,230    2,005,081    (66,313)   (1,662,568)   10,578,412    14,151,091 
Policy maintenance charges   (1,292,794)   (547,733)   (4,403,766)   (4,527,155)   (5,819,764)   (4,216,769)
Policy benefits and terminations   (183,755)   (1,174)   (1,486,988)   (1,114,169)   (79,572)   (22,433)
Policy loans and loan repayments   22,930    (33,588)   (482,286)   (234,547)   (22,466)   (139,050)
Other   4,944    122    (859)   22,985    (5,430)   13,059 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   2,885,985    2,182,661    (1,383,656)   (2,174,799)   11,720,582    17,684,457 
NET INCREASE (DECREASE) IN NET ASSETS   3,621,416    1,699,416    8,122,705    (14,405,224)   17,976,131    13,521,952 
NET ASSETS                              
Beginning of Year   4,622,088    2,922,672    64,000,738    78,405,962    35,418,002    21,896,050 
End of Year  $8,243,504   $4,622,088   $72,123,443   $64,000,738   $53,394,133   $35,418,002 

 

   Pacific Dynamix -   Pacific Dynamix -   Portfolio Optimization 
   Growth Class I   Growth Class P   Conservative Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   4,495,616    1,935,601    (298,536)   108,838    219,903    217,330 
Change in net unrealized appreciation (depreciation) on investments   14,035,826    (22,381,564)   5,866,250    (3,483,783)   913,631    (2,348,782)
Net Increase (Decrease) in Net Assets Resulting from Operations   18,531,442    (20,445,963)   5,567,714    (3,374,945)   1,133,534    (2,131,452)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   12,041,312    12,913,889    7,742,386    5,130,970    205,218    1,236,016 
Transfers between variable and fixed accounts, net   (4,780,443)   2,796,097    12,348,538    10,366,996    220,577    (164,771)
Policy maintenance charges   (5,779,563)   (5,872,887)   (5,419,809)   (3,836,962)   (1,136,889)   (1,178,451)
Policy benefits and terminations   (2,546,137)   (1,419,383)   (278,495)   (140,935)   (1,336,981)   (439,468)
Policy loans and loan repayments   (1,282,975)   (24,141)   (93,243)   30,808    642,095    129,491 
Other   10,842    19,656    (5,960)   25,001    (15,325)   592 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (2,336,964)   8,413,231    14,293,417    11,575,878    (1,421,305)   (416,591)
NET INCREASE (DECREASE) IN NET ASSETS   16,194,478    (12,032,732)   19,861,131    8,200,933    (287,771)   (2,548,043)
NET ASSETS                              
Beginning of Year   108,939,579    120,972,311    25,579,193    17,378,260    13,353,207    15,901,250 
End of Year  $125,134,057   $108,939,579   $45,440,324   $25,579,193   $13,065,436   $13,353,207 

 

See Notes to Financial Statements SA-38 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Portfolio Optimization   Portfolio Optimization   Portfolio Optimization 
   Conservative Class P   Moderate-Conservative Class I   Moderate-Conservative Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (5,786)   (238)   1,073,803    1,381,608    2,108    1,326 
Change in net unrealized appreciation (depreciation) on investments   8,077    (7,250)   3,735,150    (9,443,360)   10,519    (1,664)
Net Increase (Decrease) in Net Assets Resulting from Operations   2,291    (7,488)   4,808,953    (8,061,752)   12,627    (338)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   3,885    14,394    1,424,681    1,811,830    97,428    16,692 
Transfers between variable and fixed accounts, net   (40,984)   2,354    (433,237)   (1,509,617)   63,957    (4,224)
Policy maintenance charges   (4,004)   (8,678)   (2,153,175)   (2,126,131)   (11,346)   (4,134)
Policy benefits and terminations   -    -    (648,176)   (722,573)   -    - 
Policy loans and loan repayments   -    -    (140,058)   (77,811)   -    - 
Other   1    (2)   (185)   (42)   110    (20)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (41,102)   8,068    (1,950,150)   (2,624,344)   150,149    8,314 
NET INCREASE (DECREASE) IN NET ASSETS   (38,811)   580    2,858,803    (10,686,096)   162,776    7,976 
NET ASSETS                              
Beginning of Year   56,205    55,625    44,625,880    55,311,976    26,392    18,416 
End of Year  $17,394   $56,205   $47,484,683   $44,625,880   $189,168   $26,392 

 

   Portfolio Optimization   Portfolio Optimization   Portfolio Optimization 
   Moderate Class I   Moderate Class P   Growth Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   8,782,616    7,220,680    (910)   912    11,241,876    9,311,143 
Change in net unrealized appreciation (depreciation) on investments   19,365,467    (48,586,675)   90,037    (73,664)   36,512,345    (80,003,933)
Net Increase (Decrease) in Net Assets Resulting from Operations   28,148,083    (41,365,995)   89,127    (72,752)   47,754,221    (70,692,790)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   8,438,742    9,357,202    322,785    235,479    14,387,707    14,319,493 
Transfers between variable and fixed accounts, net   (2,256,121)   (3,209,782)   42,314    58,981    (6,525,508)   (8,048,986)
Policy maintenance charges   (11,096,001)   (11,444,380)   (163,437)   (140,802)   (11,569,774)   (11,873,589)
Policy benefits and terminations   (10,140,933)   (6,848,696)   -    -    (11,542,211)   (7,819,215)
Policy loans and loan repayments   (689,519)   (1,430,600)   -    -    (2,062,728)   (100,179)
Other   18,080    1,912    167    19    (4,515)   17,928 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (15,725,752)   (13,574,344)   201,829    153,677    (17,317,029)   (13,504,548)
NET INCREASE (DECREASE) IN NET ASSETS   12,422,331    (54,940,339)   290,956    80,925    30,437,192    (84,197,338)
NET ASSETS                              
Beginning of Year   211,350,844    266,291,183    543,228    462,303    339,073,811    423,271,149 
End of Year  $223,773,175   $211,350,844   $834,184   $543,228   $369,511,003   $339,073,811 

 

See Notes to Financial Statements SA-39 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year/Period Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Portfolio Optimization   Portfolio Optimization   Portfolio Optimization 
   Growth Class P   Aggressive-Growth Class I   Aggressive-Growth Class P 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $-   $- 
Realized gain (loss) on investments   (34,029)   69,329    7,442,083    3,991,833    22,252    8,045 
Change in net unrealized appreciation (depreciation) on investments   443,420    (490,327)   18,779,629    (40,717,167)   306,634    (192,856)
Net Increase (Decrease) in Net Assets Resulting from Operations   409,391    (420,998)   26,221,712    (36,725,334)   328,886    (184,811)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,023,328    1,342,665    6,564,887    7,523,983    612,319    525,390 
Transfers between variable and fixed accounts, net   213,523    (274,779)   (7,147,966)   (1,811,610)   (16,665)   856,223 
Policy maintenance charges   (435,323)   (327,929)   (5,403,751)   (5,567,135)   (280,596)   (196,808)
Policy benefits and terminations   (7,678)   -    (3,734,952)   (2,602,510)   (15,504)   (1,504)
Policy loans and loan repayments   11,574    14,618    (1,088,377)   665,055    (26,191)   140 
Other   (592)   (6,627)   (14,192)   (2,289)   (316)   (61)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   804,832    747,948    (10,824,351)   (1,794,506)   273,047    1,183,380 
NET INCREASE (DECREASE) IN NET ASSETS   1,214,223    326,950    15,397,361    (38,519,840)   601,933    998,569 
NET ASSETS                              
Beginning of Year   2,410,499    2,083,549    169,788,261    208,308,101    1,835,667    837,098 
End of Year  $3,624,722   $2,410,499   $185,185,622   $169,788,261   $2,437,600   $1,835,667 

 

   Invesco V.I. Discovery   Invesco V.I. EQV International   Invesco V.I. EQV International 
   Mid Cap Growth Series I (1)   Equity Series I   Equity Series II 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-        $4,062   $23,227   $-   $398,346 
Realized gain (loss) on investments   36         (61,714)   98,929    (297,102)   3,024,471 
Change in net unrealized appreciation (depreciation) on investments   153         364,893    (271,212)   5,031,748    (9,784,836)
Net Increase (Decrease) in Net Assets Resulting from Operations   189         307,241    (149,056)   4,734,646    (6,362,019)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   72         489,499    347,210    1,213,349    1,386,615 
Transfers between variable and fixed accounts, net   3,384         361,710    614,374    1,731,568    (1,654,137)
Policy maintenance charges   (1,329)        (235,055)   (175,685)   (1,154,278)   (1,148,533)
Policy benefits and terminations   -         (499)   (3,612)   (635,392)   (883,401)
Policy loans and loan repayments   -         (26,615)   (7,199)   (140,074)   (123,692)
Other   -         233    8,107    (4,638)   7,743 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   2,127         589,273    783,195    1,010,535    (2,415,405)
NET INCREASE (DECREASE) IN NET ASSETS   2,316         896,514    634,139    5,745,181    (8,777,424)
NET ASSETS                              
Beginning of Year or Period   -         1,412,265    778,126    26,302,221    35,079,645 
End of Year or Period  $2,316        $2,308,779   $1,412,265   $32,047,402   $26,302,221 

 

(1) Operations commenced or resumed during 2023 (See Financial Highlights for commencement date of operations).                                                                  

 

See Notes to Financial Statements SA-40 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year/Period Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Invesco V.I.   Invesco V.I.   Invesco V.I. Main Street 
   Global Series I   Global Series II   Small Cap Fund Series I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $4,781   $-   $-   $-   $116,778   $32,162 
Realized gain (loss) on investments   147,560    197,870    984,021    2,583,061    39,165    972,186 
Change in net unrealized appreciation (depreciation) on investments   396,522    (666,690)   3,453,763    (9,326,337)   1,330,176    (1,952,580)
Net Increase (Decrease) in Net Assets Resulting from Operations   548,863    (468,820)   4,437,784    (6,743,276)   1,486,119    (948,232)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   420,297    331,762    566,114    669,514    540,407    441,776 
Transfers between variable and fixed accounts, net   358,430    508,348    (3,021,218)   799,969    4,948,131    780,408 
Policy maintenance charges   (302,220)   (237,773)   (547,335)   (543,611)   (403,597)   (321,375)
Policy benefits and terminations   (8,731)   (932)   (620,677)   (667,975)   (44,603)   (109,444)
Policy loans and loan repayments   (2,071)   (8,035)   (208,239)   (191,952)   (12,115)   (16,389)
Other   (890)   (74)   3,755    11    252    (1,134)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   464,815    593,296    (3,827,600)   65,956    5,028,475    773,842 
NET INCREASE (DECREASE) IN NET ASSETS   1,013,678    124,476    610,184    (6,677,320)   6,514,594    (174,390)
NET ASSETS                              
Beginning of Year   1,382,878    1,258,402    14,165,128    20,842,448    5,829,894    6,004,284 
End of Year  $2,396,556   $1,382,878   $14,775,312   $14,165,128   $12,344,488   $5,829,894 

 

   American Century   American Century   American Century 
   Inflation Protection Class I (1)   VP Mid Cap Value Class I   VP Mid Cap Value Class II 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $833   $-   $37,136   $23,550   $860,338   $819,603 
Realized gain (loss) on investments   (7)   12    124,168    129,896    4,006,773    5,245,487 
Change in net unrealized appreciation (depreciation) on investments   93    33    (43,664)   (157,194)   (2,514,582)   (6,641,672)
Net Increase (Decrease) in Net Assets Resulting from Operations   919    45    117,640    (3,748)   2,352,529    (576,582)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   13,264    1,214    614,906    406,209    1,611,710    1,586,039 
Transfers between variable and fixed accounts, net   2,074    16,137    388,304    381,463    395,064    (54,147)
Policy maintenance charges   (3,752)   (570)   (300,083)   (219,855)   (1,374,924)   (1,411,432)
Policy benefits and terminations   -    -    (176)   (3,772)   (375,029)   (1,392,782)
Policy loans and loan repayments   -    -    (13,751)   (8,378)   (289,665)   (170,681)
Other   -    71    (814)   555    (2,828)   10,640 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   11,586    16,852    688,386    556,222    (35,672)   (1,432,363)
NET INCREASE (DECREASE) IN NET ASSETS   12,505    16,897    806,026    552,474    2,316,857    (2,008,945)
NET ASSETS                              
Beginning of Year or Period   16,897    -    1,256,669    704,195    39,592,203    41,601,148 
End of Year or Period  $29,402   $16,897   $2,062,695   $1,256,669   $41,909,060   $39,592,203 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).                                                                  

 

See Notes to Financial Statements SA-41 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year/Period Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   American Funds IS American   American Funds IS Asset   American Funds IS Asset 
   High-Income Trust Class 2   Allocation Class 2   Allocation Class 4 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $99,794   $65,475   $552,862   $262,562   $1,891,627   $1,486,215 
Realized gain (loss) on investments   (55,262)   (12,289)   542,404    1,136,445    3,771,147    10,692,515 
Change in net unrealized appreciation (depreciation) on investments   109,993    (110,413)   2,026,756    (2,737,158)   6,576,317    (26,374,783)
Net Increase (Decrease) in Net Assets Resulting from Operations   154,525    (57,227)   3,122,022    (1,338,151)   12,239,091    (14,196,053)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   196,485    197,765    4,951,515    4,241,993    5,235,484    5,631,710 
Transfers between variable and fixed accounts, net   681,007    327,473    6,562,964    6,735,497    5,419,203    (4,806,450)
Policy maintenance charges   (242,447)   (167,221)   (2,800,946)   (1,920,706)   (4,138,537)   (4,159,508)
Policy benefits and terminations   (27,463)   (690)   (236,289)   (48,515)   (1,324,378)   (2,026,774)
Policy loans and loan repayments   (1,512)   (6,649)   (28,172)   (57,870)   (321,884)   121,871 
Other   947    345    15,973    1,484    2,021    11,590 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   607,017    351,023    8,465,045    8,951,883    4,871,909    (5,227,561)
NET INCREASE (DECREASE) IN NET ASSETS   761,542    293,796    11,587,067    7,613,732    17,111,000    (19,423,614)
NET ASSETS                              
Beginning of Year   860,941    567,145    15,932,867    8,319,135    85,146,160    104,569,774 
End of Year  $1,622,483   $860,941   $27,519,934   $15,932,867   $102,257,160   $85,146,160 

 

   American Funds IS   American Funds IS   American Funds IS 
   Capital World Bond Class 2 (1)   Growth Class 2   Growth Class 4 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $54,179   $27,132   $249,332   $140,444 
Realized gain (loss) on investments   114    9    360,638    681,638    11,090,640    22,384,974 
Change in net unrealized appreciation (depreciation) on investments   2,392    670    3,971,443    (3,064,376)   34,413,550    (73,639,376)
Net Increase (Decrease) in Net Assets Resulting from Operations   2,506    679    4,386,260    (2,355,606)   45,753,522    (51,113,958)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   32,683    10,392    3,884,102    3,054,644    4,659,743    4,679,251 
Transfers between variable and fixed accounts, net   (455)   7,126    3,787,098    3,419,105    (438,335)   3,569,902 
Policy maintenance charges   (1,201)   (426)   (2,015,705)   (1,434,504)   (4,486,681)   (4,356,198)
Policy benefits and terminations   -    -    (73,197)   (64,801)   (3,065,760)   (2,838,978)
Policy loans and loan repayments   -    -    41,396    (92,752)   (1,111,574)   (530,358)
Other   -    -    (4,860)   (4,418)   (33,965)   26,028 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   31,027    17,092    5,618,834    4,877,274    (4,476,572)   549,647 
NET INCREASE (DECREASE) IN NET ASSETS   33,533    17,771    10,005,094    2,521,668    41,276,950    (50,564,311)
NET ASSETS                              
Beginning of Year or Period   17,771    -    8,965,364    6,443,696    120,649,493    171,213,804 
End of Year or Period  $51,304   $17,771   $18,970,458   $8,965,364   $161,926,443   $120,649,493 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).                                                                  

 

See Notes to Financial Statements SA-42 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   American Funds IS   American Funds IS   American Funds IS 
   Growth-Income Class 2   Growth-Income Class 4   International Class 2 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $145,410   $72,418   $1,367,780   $1,200,487   $33,455   $30,890 
Realized gain (loss) on investments   460,737    518,273    7,233,631    12,375,983    (150,149)   142,483 
Change in net unrealized appreciation (depreciation) on investments   1,655,415    (1,351,384)   17,968,760    (35,642,667)   452,729    (468,943)
Net Increase (Decrease) in Net Assets Resulting from Operations   2,261,562    (760,693)   26,570,171    (22,066,197)   336,035    (295,570)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,972,648    1,445,875    3,807,679    4,323,872    425,224    478,365 
Transfers between variable and fixed accounts, net   2,482,460    3,190,430    145,160    (1,818,697)   671,859    614,173 
Policy maintenance charges   (1,242,479)   (932,811)   (4,247,173)   (4,424,979)   (401,827)   (317,488)
Policy benefits and terminations   (11,481)   (60,876)   (4,807,077)   (2,329,216)   (3,454)   - 
Policy loans and loan repayments   (22,521)   30,549    (875,904)   (549,183)   375    (1,828)
Other   2,714    (1,382)   11,645    3,680    (1,064)   3,790 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   3,181,341    3,671,785    (5,965,670)   (4,794,523)   691,113    777,012 
NET INCREASE (DECREASE) IN NET ASSETS   5,442,903    2,911,092    20,604,501    (26,860,720)   1,027,148    481,442 
NET ASSETS                              
Beginning of Year   7,003,256    4,092,164    105,963,008    132,823,728    1,814,393    1,332,951 
End of Year  $12,446,159   $7,003,256   $126,567,509   $105,963,008   $2,841,541   $1,814,393 

 

   American Funds IS   BlackRock 60/40 Target   BlackRock Basic Value 
   New World Fund Class 2   Allocation ETF V.I. Class I   V.I. Class III 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $35,660   $23,350   $474,017   $419,418   $390,328   $291,333 
Realized gain (loss) on investments   (121,716)   51,428    (117,085)   68,509    570,793    2,244,094 
Change in net unrealized appreciation (depreciation) on investments   422,666    (392,951)   2,836,902    (3,284,201)   2,818,737    (3,865,762)
Net Increase (Decrease) in Net Assets Resulting from Operations   336,610    (318,173)   3,193,834    (2,796,274)   3,779,858    (1,330,335)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   495,011    494,271    1,428,476    2,242,600    691,197    766,323 
Transfers between variable and fixed accounts, net   424,827    821,066    2,452,871    5,147,995    1,268,949    298,527 
Policy maintenance charges   (478,366)   (386,847)   (2,176,155)   (1,851,865)   (742,801)   (748,117)
Policy benefits and terminations   (30,155)   (3,098)   (260,171)   (188,844)   (542,251)   (276,045)
Policy loans and loan repayments   (8,844)   (5,174)   (12,206)   47,710    (131,649)   (76,753)
Other   (568)   4,396    (10,437)   37,191    615    (410)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   401,905    924,614    1,422,378    5,434,787    544,060    (36,475)
NET INCREASE (DECREASE) IN NET ASSETS   738,515    606,441    4,616,212    2,638,513    4,323,918    (1,366,810)
NET ASSETS                              
Beginning of Year   1,889,934    1,283,493    19,478,331    16,839,818    23,952,268    25,319,078 
End of Year  $2,628,449   $1,889,934   $24,094,543   $19,478,331   $28,276,186   $23,952,268 

 

See Notes to Financial Statements SA-43 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   BlackRock Global Allocation   BlackRock Global Allocation   BNY Mellon VIF 
   V.I. Class I   V.I. Class III   Appreciation Service Shares 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $130,140   $-   $1,702,902   $-   $20,297   $13,142 
Realized gain (loss) on investments   (97,782)   (44,068)   (1,376,444)   204,800    (485,396)   898,755 
Change in net unrealized appreciation (depreciation) on investments   486,090    (260,784)   7,613,392    (12,967,126)   1,271,507    (1,546,234)
Net Increase (Decrease) in Net Assets Resulting from Operations   518,448    (304,852)   7,939,850    (12,762,326)   806,408    (634,337)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   518,428    439,692    3,459,461    3,343,228    116,820    39,777 
Transfers between variable and fixed accounts, net   3,466,270    803,912    (1,850,295)   (722,589)   1,468,547    166,631 
Policy maintenance charges   (516,851)   (401,682)   (3,087,249)   (3,153,348)   (78,250)   (59,379)
Policy benefits and terminations   (51,278)   -    (1,479,612)   (1,006,463)   (85,258)   (20,275)
Policy loans and loan repayments   2,611    (5,556)   (18,665)   487,136    41,593    (17,610)
Other   (2,240)   826    (5,393)   4,851    (420)   177 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   3,416,940    837,192    (2,981,753)   (1,047,185)   1,463,032    109,321 
NET INCREASE (DECREASE) IN NET ASSETS   3,935,388    532,340    4,958,097    (13,809,511)   2,269,440    (525,016)
NET ASSETS                              
Beginning of Year   2,169,541    1,637,201    65,399,810    79,209,321    2,867,155    3,392,171 
End of Year  $6,104,929   $2,169,541   $70,357,907   $65,399,810   $5,136,595   $2,867,155 

 

   DFA VA International Small   DFA VA International Value   DFA VA Short-Term Fixed 
   Institutional Class   Institutional Class   Institutional Class 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $167,175   $66,177   $129,054   $65,143   $291,821   $39,053 
Realized gain (loss) on investments   (130,449)   (48,860)   17,248    19,376    17,451    (16,103)
Change in net unrealized appreciation (depreciation) on investments   523,667    (263,121)   234,262    (44,629)   (19,455)   (35,178)
Net Increase (Decrease) in Net Assets Resulting from Operations   560,393    (245,804)   380,564    39,890    289,817    (12,228)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   716,733    654,162    486,609    465,243    1,240,238    446,747 
Transfers between variable and fixed accounts, net   2,333,802    1,024,725    705,034    742,452    3,899,630    2,435,177 
Policy maintenance charges   (502,366)   (281,439)   (324,296)   (163,210)   (862,329)   (444,089)
Policy benefits and terminations   (10,779)   (397)   (3,589)   -    (11,008)   (1,034)
Policy loans and loan repayments   (36,580)   (5)   (22,239)   (8,378)   49,104    (50,874)
Other   1,213    (40)   781    3,316    343    391 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   2,502,023    1,397,006    842,300    1,039,423    4,315,978    2,386,318 
NET INCREASE (DECREASE) IN NET ASSETS   3,062,416    1,151,202    1,222,864    1,079,313    4,605,795    2,374,090 
NET ASSETS                              
Beginning of Year   2,610,131    1,458,929    1,701,550    622,237    3,312,153    938,063 
End of Year  $5,672,547   $2,610,131   $2,924,414   $1,701,550   $7,917,948   $3,312,153 

 

See Notes to Financial Statements SA-44 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   DFA VA US Large Value   DFA VA US Targeted Value   Fidelity VIP Bond Index 
   Institutional Class   Institutional Class   Initial Class 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $131,939   $72,950   $57,204   $24,946   $481,373   $82,055 
Realized gain (loss) on investments   28,587    67,097    158,376    166,711    (276,264)   (251,787)
Change in net unrealized appreciation (depreciation) on investments   411,978    (173,440)   394,103    (214,876)   789,199    (336,045)
Net Increase (Decrease) in Net Assets Resulting from Operations   572,504    (33,393)   609,683    (23,219)   994,308    (505,777)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,391,679    928,121    972,777    776,548    2,604,399    1,082,743 
Transfers between variable and fixed accounts, net   1,713,355    1,372,512    926,098    651,909    14,426,277    4,675,285 
Policy maintenance charges   (596,900)   (319,057)   (426,223)   (259,137)   (1,840,001)   (625,652)
Policy benefits and terminations   (11,447)   (974)   (17,777)   -    (8,408)   (516)
Policy loans and loan repayments   49,452    (85,030)   (8,462)   (28,134)   (37,975)   (8,708)
Other   6,115    (3,918)   2,184    (889)   2,592    10,504 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   2,552,254    1,891,654    1,448,597    1,140,297    15,146,884    5,133,656 
NET INCREASE (DECREASE) IN NET ASSETS   3,124,758    1,858,261    2,058,280    1,117,078    16,141,192    4,627,879 
NET ASSETS                              
Beginning of Year   3,244,814    1,386,553    2,056,079    939,001    7,442,956    2,815,077 
End of Year  $6,369,572   $3,244,814   $4,114,359   $2,056,079   $23,584,148   $7,442,956 

 

   Fidelity VIP Bond Index   Fidelity VIP Contrafund   Fidelity VIP Contrafund 
   Service Class 2   Initial Class   Service Class 2 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $86,198   $22,504   $11,226   $6,891   $209,992   $202,435 
Realized gain (loss) on investments   (77,084)   (24,089)   (10,529)   49,103    4,312,245    4,337,689 
Change in net unrealized appreciation (depreciation) on investments   182,710    (179,486)   535,509    (345,428)   17,959,074    (28,732,591)
Net Increase (Decrease) in Net Assets Resulting from Operations   191,824    (181,071)   536,206    (289,434)   22,481,311    (24,192,467)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   629,041    322,913    745,515    664,900    2,398,215    2,681,612 
Transfers between variable and fixed accounts, net   2,280,168    787,458    367,993    411,279    275,534    2,454,193 
Policy maintenance charges   (440,485)   (250,207)   (326,474)   (217,958)   (2,419,839)   (2,313,488)
Policy benefits and terminations   (18,793)   (556)   (52,802)   (11,707)   (1,497,282)   (1,143,903)
Policy loans and loan repayments   32,174    (30,213)   (1,515)   (55,666)   (1,919,790)   (179,553)
Other   (1,460)   (67)   157    2,794    (2,281)   45,471 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   2,480,645    829,328    732,874    793,642    (3,165,443)   1,544,332 
NET INCREASE (DECREASE) IN NET ASSETS   2,672,469    648,257    1,269,080    504,208    19,315,868    (22,648,135)
NET ASSETS                              
Beginning of Year   1,896,545    1,248,288    1,349,090    844,882    69,004,186    91,652,321 
End of Year  $4,569,014   $1,896,545   $2,618,170   $1,349,090   $88,320,054   $69,004,186 

 

See Notes to Financial Statements SA-45 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Fidelity VIP Freedom 2010   Fidelity VIP Freedom 2015   Fidelity VIP Freedom 2020 
   Portfolio Service Class 2   Portfolio Service Class 2   Portfolio Service Class 2 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $39,036   $26,312   $87,203   $48,439   $166,104   $110,087 
Realized gain (loss) on investments   (58,687)   49,093    32,097    259,681    (19,043)   557,827 
Change in net unrealized appreciation (depreciation) on investments   100,823    (333,269)   140,215    (725,773)   508,563    (1,729,918)
Net Increase (Decrease) in Net Assets Resulting from Operations   81,172    (257,864)   259,515    (417,653)   655,624    (1,062,004)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   89,023    86,996    91,262    144,587    124,717    141,850 
Transfers between variable and fixed accounts, net   108,341    (774,737)   19,726    (64,102)   (393,299)   66,029 
Policy maintenance charges   (70,743)   (80,161)   (104,126)   (108,709)   (242,759)   (254,238)
Policy benefits and terminations   (42,956)   (64,253)   (41,120)   (2,166)   (91,253)   (14,090)
Policy loans and loan repayments   (2,556)   200    10,893    (10,073)   (159,091)   (79,852)
Other   156    (8)   79    (691)   2,634    1,740 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   81,265    (831,963)   (23,286)   (41,154)   (759,051)   (138,561)
NET INCREASE (DECREASE) IN NET ASSETS   162,437    (1,089,827)   236,229    (458,807)   (103,427)   (1,200,565)
NET ASSETS                              
Beginning of Year   951,351    2,041,178    2,441,616    2,900,423    5,695,812    6,896,377 
End of Year  $1,113,788   $951,351   $2,677,845   $2,441,616   $5,592,385   $5,695,812 

 

   Fidelity VIP Freedom 2025   Fidelity VIP Freedom 2025   Fidelity VIP Freedom 2030 
   Portfolio Initial Class   Portfolio Service Class 2   Portfolio Initial Class 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $5,805   $1,424   $349,910   $251,609   $14,358   $8,639 
Realized gain (loss) on investments   (1,470)   (4,076)   (23,902)   945,684    (61,843)   22,157 
Change in net unrealized appreciation (depreciation) on investments   17,788    (4,024)   1,368,782    (3,882,722)   124,316    (107,874)
Net Increase (Decrease) in Net Assets Resulting from Operations   22,123    (6,676)   1,694,790    (2,685,429)   76,831    (77,078)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   83,137    58,764    663,428    856,891    204,894    162,010 
Transfers between variable and fixed accounts, net   120,132    29,318    (115,411)   644,458    177,307    12,764 
Policy maintenance charges   (10,202)   (8,015)   (640,507)   (655,900)   (21,298)   (15,241)
Policy benefits and terminations   (34,438)   -    (555,366)   (828,914)   (257,094)   - 
Policy loans and loan repayments   1,767    (12,541)   (202,897)   (5,398)   -    - 
Other   399    73    1,130    683    2,484    (27)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   160,795    67,599    (849,623)   11,820    106,293    159,506 
NET INCREASE (DECREASE) IN NET ASSETS   182,918    60,923    845,167    (2,673,609)   183,124    82,428 
NET ASSETS                              
Beginning of Year   81,656    20,733    13,238,328    15,911,937    455,648    373,220 
End of Year  $264,574   $81,656   $14,083,495   $13,238,328   $638,772   $455,648 

 

See Notes to Financial Statements SA-46 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year/Period Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Fidelity VIP Freedom 2030   Fidelity VIP Freedom 2035   Fidelity VIP Freedom 2035 
   Portfolio Service Class 2   Portfolio Initial Class   Portfolio Service Class 2 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $333,859   $265,284   $72,634   $33,482   $267,444   $217,210 
Realized gain (loss) on investments   (56,919)   1,397,386    24,884    (106,710)   222,511    1,169,942 
Change in net unrealized appreciation (depreciation) on investments   1,753,034    (4,806,872)   402,520    (37,542)   1,808,690    (4,290,037)
Net Increase (Decrease) in Net Assets Resulting from Operations   2,029,974    (3,144,202)   500,038    (110,770)   2,298,645    (2,902,885)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,029,851    1,199,686    933,721    644,419    1,433,363    1,419,274 
Transfers between variable and fixed accounts, net   (167,183)   (1,000,570)   749,432    1,199,804    1,259,847    330,216 
Policy maintenance charges   (692,211)   (692,477)   (347,862)   (173,037)   (802,822)   (828,311)
Policy benefits and terminations   (144,592)   (1,021,308)   (25,930)   -    (262,321)   (122,107)
Policy loans and loan repayments   (256,758)   (416,593)   61    (2,244)   (1,511,078)   4,357 
Other   (2,797)   287    (1,190)   (5,678)   534    1,984 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (233,690)   (1,930,975)   1,308,232    1,663,264    117,523    805,413 
NET INCREASE (DECREASE) IN NET ASSETS   1,796,284    (5,075,177)   1,808,270    1,552,494    2,416,168    (2,097,472)
NET ASSETS                              
Beginning of Year   14,007,077    19,082,254    2,288,577    736,083    14,193,324    16,290,796 
End of Year  $15,803,361   $14,007,077   $4,096,847   $2,288,577   $16,609,492   $14,193,324 

 

   Fidelity VIP Freedom 2045   Fidelity VIP Freedom 2045   Fidelity VIP Freedom 2055 
   Portfolio Initial Class   Portfolio Service Class 2   Portfolio Initial Class (1) 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $59,138   $30,117   $211,603   $201,507   $176   $69 
Realized gain (loss) on investments   (63,290)   66,132    453,661    1,280,722    522    35 
Change in net unrealized appreciation (depreciation) on investments   604,354    (335,079)   2,153,718    (4,328,450)   916    166 
Net Increase (Decrease) in Net Assets Resulting from Operations   600,202    (238,830)   2,818,982    (2,846,221)   1,614    270 
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,331,462    697,478    1,494,214    1,604,851    11,484    3,122 
Transfers between variable and fixed accounts, net   1,186,700    756,414    853,354    1,612,822    (3,051)   2,189 
Policy maintenance charges   (452,397)   (271,835)   (837,887)   (941,698)   (1,260)   (524)
Policy benefits and terminations   (149,213)   (5,105)   (231,855)   (110,077)   -    - 
Policy loans and loan repayments   (5,159)   -    (191,941)   25,980    -    - 
Other   (306)   1,555    733    1,322    (1)   - 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   1,911,087    1,178,507    1,086,618    2,193,200    7,172    4,787 
NET INCREASE (DECREASE) IN NET ASSETS   2,511,289    939,677    3,905,600    (653,021)   8,786    5,057 
NET ASSETS                              
Beginning of Year or Period   2,066,404    1,126,727    14,296,942    14,949,963    5,057    - 
End of Year or Period  $4,577,693   $2,066,404   $18,202,542   $14,296,942   $13,843   $5,057 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).                                                                  

 

See Notes to Financial Statements SA-47 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                                                                        

 

   Variable Accounts 
   Year Ended   Year/Period Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Fidelity VIP Freedom Income   Fidelity VIP Freedom Income   Fidelity VIP Government 
   Portfolio Initial Class   Portfolio Service Class 2   Money Market Service Class 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $10,551   $4,269   $83,558   $47,687   $14,393,230   $3,879,286 
Realized gain (loss) on investments   (15,603)   1,071    (104,084)   23,916    -    - 
Change in net unrealized appreciation (depreciation) on investments   22,233    (28,724)   192,847    (405,061)   -    - 
Net Increase (Decrease) in Net Assets Resulting from Operations   17,181    (23,384)   172,321    (333,458)   14,393,230    3,879,286 
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   69,617    52,460    45,961    106,065    320,700,962    266,456,954 
Transfers between variable and fixed accounts, net   15,843    18,966    (440,408)   2,324    (297,727,532)   (116,041,469)
Policy maintenance charges   (28,429)   (19,521)   (92,128)   (107,333)   (28,255,701)   (23,050,791)
Policy benefits and terminations   -    -    (37,613)   (9,298)   (11,942,883)   (12,593,225)
Policy loans and loan repayments   -    -    (16,600)   499    (7,695,595)   (13,217,131)
Other   (177)   11    60    521    37,905    (5,050)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   56,854    51,916    (540,728)   (7,222)   (24,882,844)   101,549,288 
NET INCREASE (DECREASE) IN NET ASSETS   74,035    28,532    (368,407)   (340,680)   (10,489,614)   105,428,574 
NET ASSETS                              
Beginning of Year   195,180    166,648    2,325,271    2,665,951    297,603,125    192,174,551 
End of Year  $269,215   $195,180   $1,956,864   $2,325,271   $287,113,511   $297,603,125 

 

   Fidelity VIP   Fidelity VIP   Fidelity VIP 
   Growth Initial Class (1)   Growth Service Class 2   International Index Initial Class 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $214   $132   $1,476   $98,106   $556,069   $200,445 
Realized gain (loss) on investments   7,050    559    2,766,630    2,917,435    (208,393)   (240,318)
Change in net unrealized appreciation (depreciation) on investments   35,837    (9,330)   10,134,342    (11,952,108)   2,010,701    (865,357)
Net Increase (Decrease) in Net Assets Resulting from Operations   43,101    (8,639)   12,902,448    (8,936,567)   2,358,377    (905,230)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   41,405    43,900    1,001,351    1,050,894    3,332,852    1,972,564 
Transfers between variable and fixed accounts, net   58,214    19,177    13,523,902    8,750,137    10,799,627    5,253,906 
Policy maintenance charges   (1,695)   (1,413)   (867,890)   (666,936)   (2,485,707)   (1,394,269)
Policy benefits and terminations   -    -    (946,719)   (658,552)   (35,456)   (819)
Policy loans and loan repayments   -    -    (515,547)   (138,975)   (49,007)   (7,999)
Other   (1)   (176)   (7,419)   5,847    (2,249)   9,367 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   97,923    61,488    12,187,678    8,342,415    11,560,060    5,832,750 
NET INCREASE (DECREASE) IN NET ASSETS   141,024    52,849    25,090,126    (594,152)   13,918,437    4,927,520 
NET ASSETS                              
Beginning of Year or Period   52,849    -    33,765,959    34,360,111    9,367,983    4,440,463 
End of Year or Period  $193,873   $52,849   $58,856,085   $33,765,959   $23,286,420   $9,367,983 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).                                                                  

 

See Notes to Financial Statements SA-48 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Fidelity VIP   Fidelity VIP   Fidelity VIP 
   International Index Service Class 2   Mid Cap Initial Class   Mid Cap Service Class 2 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $90,938   $35,339   $23,646   $11,688   $161,577   $107,540 
Realized gain (loss) on investments   (79,171)   (57,795)   64,312    163,722    1,198,705    2,768,958 
Change in net unrealized appreciation (depreciation) on investments   411,933    (147,079)   410,252    (439,599)   4,309,152    (9,598,354)
Net Increase (Decrease) in Net Assets Resulting from Operations   423,700    (169,535)   498,210    (264,189)   5,669,434    (6,721,856)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   577,609    695,056    901,028    479,082    1,971,000    1,940,625 
Transfers between variable and fixed accounts, net   1,744,028    752,035    1,004,309    894,192    1,049,424    (150,663)
Policy maintenance charges   (446,342)   (313,653)   (586,910)   (388,614)   (1,541,758)   (1,537,513)
Policy benefits and terminations   (19,260)   (5,020)   (33,460)   (13,449)   (745,311)   (612,038)
Policy loans and loan repayments   117,053    (116,547)   (2,639)   (7,152)   (116,070)   5,400 
Other   3,423    2,497    (2,948)   -    (370)   (1,110)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   1,976,511    1,014,368    1,279,380    964,059    616,915    (355,299)
NET INCREASE (DECREASE) IN NET ASSETS   2,400,211    844,833    1,777,590    699,870    6,286,349    (7,077,155)
NET ASSETS                              
Beginning of Year   1,712,573    867,740    2,421,640    1,721,770    38,088,746    45,165,901 
End of Year  $4,112,784   $1,712,573   $4,199,230   $2,421,640   $44,375,095   $38,088,746 

 

   Fidelity VIP Total Market Index   Fidelity VIP Total Market Index   Fidelity VIP Value 
    Initial Class    Service Class 2   Strategies Service Class 2 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $571,165   $459,195   $50,650   $39,862   $108,327   $110,274 
Realized gain (loss) on investments   (586,794)   (659,828)   (13,168)   31,086    1,163,261    897,734 
Change in net unrealized appreciation (depreciation) on investments   10,686,754    (4,410,341)   1,126,087    (654,494)   1,021,317    (1,959,896)
Net Increase (Decrease) in Net Assets Resulting from Operations   10,671,125    (4,610,974)   1,163,569    (583,546)   2,292,905    (951,888)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   10,735,689    5,687,178    1,767,036    1,090,882    385,229    443,837 
Transfers between variable and fixed accounts, net   16,753,703    22,071,082    1,579,582    986,668    (774,101)   1,638,476 
Policy maintenance charges   (7,298,862)   (4,333,151)   (952,869)   (521,604)   (380,798)   (374,415)
Policy benefits and terminations   (42,370)   (3,393)   (10,271)   (37,107)   (790,816)   (265,055)
Policy loans and loan repayments   (199,416)   (32,937)   34,886    (48,516)   (103,417)   (57,855)
Other   9,205    80,291    2,696    1,478    6,811    1,170 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   19,957,949    23,469,070    2,421,060    1,471,801    (1,657,092)   1,386,158 
NET INCREASE (DECREASE) IN NET ASSETS   30,629,074    18,858,096    3,584,629    888,255    635,813    434,270 
NET ASSETS                              
Beginning of Year   33,264,322    14,406,226    3,121,803    2,233,548    12,202,623    11,768,353 
End of Year  $63,893,396   $33,264,322   $6,706,432   $3,121,803   $12,838,436   $12,202,623 

  

See Notes to Financial StatementsSA-49 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

 

   Variable Accounts 
   Year Ended   Year Ended   Year/Period Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Templeton   Templeton   Templeton 
    Foreign VIP Class 1    Foreign VIP Class 2    Global Bond VIP Class 1 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $23,932   $16,076   $590,907   $615,879   $-   $- 
Realized gain (loss) on investments   (7,968)   4,254    (500,434)   (515,478)   (6,031)   (4,077)
Change in net unrealized appreciation (depreciation) on investments   120,809    (48,532)   3,387,369    (1,876,269)   23,603    (6,458)
Net Increase (Decrease) in Net Assets Resulting from Operations   136,773    (28,202)   3,477,842    (1,775,868)   17,572    (10,535)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   274,990    211,622    1,126,031    1,258,715    111,133    93,595 
Transfers between variable and fixed accounts, net   30,023    143,999    710,071    (3,644,998)   171,330    102,176 
Policy maintenance charges   (156,681)   (128,757)   (1,011,092)   (1,024,501)   (101,912)   (72,804)
Policy benefits and terminations   (2,701)   (3,383)   (2,347,536)   (142,863)   (2,655)   (2,138)
Policy loans and loan repayments   1,827    (1,597)   (373,263)   (47,805)   2,356    (5,445)
Other   77    50    4,887    (25,601)   (304)   206 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   147,535    221,934    (1,890,902)   (3,627,053)   179,948    115,590 
NET INCREASE (DECREASE) IN NET ASSETS   284,308    193,732    1,586,940    (5,402,921)   197,520    105,055 
NET ASSETS                              
Beginning of Year   614,757    421,025    17,777,563    23,180,484    321,127    216,072 
End of Year  $899,065   $614,757   $19,364,503   $17,777,563   $518,647   $321,127 
                               
    Templeton     Goldman Sachs VIT Multi-Strategy    Janus Henderson 
    Global Bond VIP Class 2    Alternatives Institutional Shares (1)    Enterprise Institutional Shares 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $3,374        $1,215   $567 
Realized gain (loss) on investments   (555,648)   (1,092,613)   20         4,705    19,532 
Change in net unrealized appreciation (depreciation) on investments   1,182,553    (144,551)   (434)        92,761    (63,666)
Net Increase (Decrease) in Net Assets Resulting from Operations   626,905    (1,237,164)   2,960         98,681    (43,567)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,117,249    1,199,015    -         327,725    183,336 
Transfers between variable and fixed accounts, net   135,083    (1,110,416)   50,000         47,389    132,764 
Policy maintenance charges   (883,661)   (933,956)   (1,802)        (94,483)   (55,254)
Policy benefits and terminations   (472,801)   (1,416,291)   -         (9,234)   (997)
Policy loans and loan repayments   (246,107)   61    -         (7,873)   711 
Other   (2,524)   (166)   (1)        (375)   971 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (352,761)   (2,261,753)   48,197         263,149    261,531 
NET INCREASE (DECREASE) IN NET ASSETS   274,144    (3,498,917)   51,157         361,830    217,964 
NET ASSETS                              
Beginning of Year or Period   21,796,156    25,295,073    -         469,295    251,331 
End of Year or Period  $22,070,300   $21,796,156   $51,157        $831,125   $469,295 

 

(1) Operations commenced or resumed during 2023 (See Financial Highlights for commencement date of operations).

 

See Notes to Financial StatementsSA-50 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)  

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Janus Henderson   Janus Henderson   Janus Henderson 
   Enterprise Service Shares   Overseas Institutional Shares   Overseas Service Shares 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $28,000   $26,687   $14,737   $10,482   $374,537   $418,676 
Realized gain (loss) on investments   2,306,642    6,089,786    (16,444)   (15,910)   472,618    431,099 
Change in net unrealized appreciation (depreciation) on investments   3,071,710    (12,410,327)   100,994    (39,364)   1,789,922    (3,345,465)
Net Increase (Decrease) in Net Assets Resulting from Operations   5,406,352    (6,293,854)   99,287    (44,792)   2,637,077    (2,495,690)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   929,882    983,463    294,003    176,294    1,053,220    948,411 
Transfers between variable and fixed accounts, net   (3,687,271)   (163,422)   452,208    87,883    (466,131)   (259,360)
Policy maintenance charges   (881,382)   (885,695)   (175,246)   (118,510)   (673,458)   (640,704)
Policy benefits and terminations   (1,422,268)   (907,682)   (1,899)   -    (226,462)   (402,893)
Policy loans and loan repayments   (385,034)   (276,774)   (10,797)   (10)   (143,965)   (37,628)
Other   7,867    3,623    42    192    (1,666)   4,829 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (5,438,206)   (1,246,487)   558,311    145,849    (458,462)   (387,345)
NET INCREASE (DECREASE) IN NET ASSETS   (31,854)   (7,540,341)   657,598    101,057    2,178,615    (2,883,035)
NET ASSETS                              
Beginning of Year   32,106,111    39,646,452    630,271    529,214    24,975,436    27,858,471 
End of Year  $32,074,257   $32,106,111   $1,287,869   $630,271   $27,154,051   $24,975,436 
                               
    Lazard Retirement Global    Lazard Retirement Global    Lazard Retirement 
    Dynamic Multi-Asset Investor Shares    Dynamic Multi-Asset Service Shares    International Equity Service Shares 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $565   $-   $1,187   $31,653   $79,691 
Realized gain (loss) on investments   6,349    9,176    45,551    81,467    (56,910)   232,406 
Change in net unrealized appreciation (depreciation) on investments   22,790    (55,589)   100,694    (364,193)   382,565    (646,353)
Net Increase (Decrease) in Net Assets Resulting from Operations   29,139    (45,848)   146,245    (281,539)   357,308    (334,256)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   52,732    60,649    115,284    121,118    302,810    280,617 
Transfers between variable and fixed accounts, net   (2,901)   11,350    (74,626)   (60,554)   (56,362)   283,273 
Policy maintenance charges   (36,644)   (33,393)   (50,493)   (50,666)   (154,506)   (138,082)
Policy benefits and terminations   -    -    (72,952)   1,532    (63,745)   (4,287)
Policy loans and loan repayments   -    -    6,538    (46,340)   3,414    7,527 
Other   4    (48)   3    (62)   (291)   (510)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   13,191    38,558    (76,246)   (34,972)   31,320    428,538 
NET INCREASE (DECREASE) IN NET ASSETS   42,330    (7,290)   69,999    (316,511)   388,628    94,282 
NET ASSETS                              
Beginning of Year   248,052    255,342    1,362,686    1,679,197    2,258,317    2,164,035 
End of Year  $290,382   $248,052   $1,432,685   $1,362,686   $2,646,945   $2,258,317 

 

See Notes to Financial StatementsSA-51 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year/Period Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   ClearBridge Variable   ClearBridge Variable   ClearBridge Variable 
    Aggressive Growth - Class I    Aggressive Growth - Class II    Mid Cap - Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $937   $1,124   $14,650   $-   $2,385   $5,600 
Realized gain (loss) on investments   (11,209)   5,913    1,356,124    2,519,333    (72,628)   41,116 
Change in net unrealized appreciation (depreciation) on investments   77,885    (66,739)   3,499,243    (9,560,928)   289,940    (325,795)
Net Increase (Decrease) in Net Assets Resulting from Operations   67,613    (59,702)   4,870,017    (7,041,595)   219,697    (279,079)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   115,484    111,548    1,689,138    1,809,917    330,562    324,244 
Transfers between variable and fixed accounts, net   2,435    168,790    28,218    747,368    185,163    880,351 
Policy maintenance charges   (83,834)   (78,138)   (1,217,074)   (1,270,444)   (287,799)   (210,684)
Policy benefits and terminations   (2,735)   -    (584,304)   (255,342)   (4,290)   (3,748)
Policy loans and loan repayments   (3,617)   (7,192)   (135,304)   (146,213)   (1,728)   (6,251)
Other   (105)   (488)   6,742    542    (874)   550 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   27,628    194,520    (212,584)   885,828    221,034    984,462 
NET INCREASE (DECREASE) IN NET ASSETS   95,241    134,818    4,657,433    (6,155,767)   440,731    705,383 
NET ASSETS                              
Beginning of Year   272,831    138,013    20,194,583    26,350,350    1,580,762    875,379 
End of Year  $368,072   $272,831   $24,852,016   $20,194,583   $2,021,493   $1,580,762 
                               
    ClearBridge Variable    ClearBridge Variable    Western Asset Variable 
    Mid Cap - Class II    Small Cap Growth - Class I    Global High Yield Bond - Class I (1) 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $2,825   $13,005   $-   $-   $28,603   $508 
Realized gain (loss) on investments   (17,613)   891,287    (87,461)   (45,970)   (799)   (14)
Change in net unrealized appreciation (depreciation) on investments   1,557,908    (5,195,403)   198,295    (89,395)   7,615    (153)
Net Increase (Decrease) in Net Assets Resulting from Operations   1,543,120    (4,291,111)   110,834    (135,365)   35,419    341 
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   441,590    433,193    292,581    125,264    19,718    7,880 
Transfers between variable and fixed accounts, net   (105,145)   171,837    694,942    508,822    506,507    - 
Policy maintenance charges   (358,048)   (388,902)   (263,065)   (132,219)   (10,335)   (932)
Policy benefits and terminations   (678,064)   (230,369)   (209)   -    -    - 
Policy loans and loan repayments   (83,350)   (11,538)   60,854    (2,681)   -    - 
Other   (4,339)   906    (2,167)   1,109    519    (52)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (787,356)   (24,873)   782,936    500,295    516,409    6,896 
NET INCREASE (DECREASE) IN NET ASSETS   755,764    (4,315,984)   893,770    364,930    551,828    7,237 
NET ASSETS                              
Beginning of Year or Period   12,588,974    16,904,958    781,961    417,031    7,237    - 
End of Year or Period  $13,344,738   $12,588,974   $1,675,731   $781,961   $559,065   $7,237 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).

 

See Notes to Financial StatementsSA-52 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   Western Asset Variable   Lord Abbett   Lord Abbett 
   Global High Yield Bond - Class II   Bond Debenture Class VC   Developing Growth Class VC 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $33,758   $47,150   $1,274,340   $974,570   $-   $- 
Realized gain (loss) on investments   (53,379)   (12,448)   (118,077)   (159,762)   (1,657,473)   (1,700,478)
Change in net unrealized appreciation (depreciation) on investments   84,927    (137,815)   358,061    (3,837,700)   2,673,436    (6,444,250)
Net Increase (Decrease) in Net Assets Resulting from Operations   65,306    (103,113)   1,514,324    (3,022,892)   1,015,963    (8,144,728)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   38,202    38,894    2,140,242    2,071,437    (953)   - 
Transfers between variable and fixed accounts, net   (67,242)   39,141    2,703,027    1,037,206    (596,614)   (1,318,060)
Policy maintenance charges   (40,065)   (39,643)   (1,695,264)   (1,487,918)   (412,329)   (516,428)
Policy benefits and terminations   744    (208)   (335,370)   (2,440,066)   (366,850)   (206,943)
Policy loans and loan repayments   (50,405)   706    (92,601)   (248,471)   (53,992)   (155,457)
Other   (10)   -    2,102    406    (2,461)   (4,996)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (118,776)   38,890    2,722,136    (1,067,406)   (1,433,199)   (2,201,884)
NET INCREASE (DECREASE) IN NET ASSETS   (53,470)   (64,223)   4,236,460    (4,090,298)   (417,236)   (10,346,612)
NET ASSETS                              
Beginning of Year   731,994    796,217    21,128,277    25,218,575    13,191,514    23,538,126 
End of Year  $678,524   $731,994   $25,364,737   $21,128,277   $12,774,278   $13,191,514 
                               
    Lord Abbett    Lord Abbett           
    Fundamental Equity Class VC    Total Return Class VC    M Capital Appreciation 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $38,391   $69,594   $3,600,979   $2,052,298   $333,008   $- 
Realized gain (loss) on investments   108,546    867,701    (1,546,300)   (718,583)   3,825,253    4,898,250 
Change in net unrealized appreciation (depreciation) on investments   754,667    (1,792,189)   2,959,972    (11,321,122)   11,271,063    (19,204,912)
Net Increase (Decrease) in Net Assets Resulting from Operations   901,604    (854,894)   5,014,651    (9,987,407)   15,429,324    (14,306,662)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   246,728    246,984    6,157,056    5,674,494    2,554,542    2,139,709 
Transfers between variable and fixed accounts, net   (132,472)   (96,266)   1,315,848    19,438,658    2,608,291    573,971 
Policy maintenance charges   (251,356)   (266,506)   (4,096,885)   (3,884,513)   (2,286,670)   (2,085,601)
Policy benefits and terminations   (74,734)   (31,737)   (2,642,972)   (1,126,689)   (482,051)   (593,859)
Policy loans and loan repayments   (41,748)   (3,513)   (9,655)   (372,957)   (503,921)   68,071 
Other   (2,553)   311    (3,544)   (4,190)   2,439    3,262 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (256,135)   (150,727)   719,848    19,724,803    1,892,630    105,553 
NET INCREASE (DECREASE) IN NET ASSETS   645,469    (1,005,621)   5,734,499    9,737,396    17,321,954    (14,201,109)
NET ASSETS                              
Beginning of Year   6,241,468    7,247,089    78,988,980    69,251,584    64,703,779    78,904,888 
End of Year  $6,886,937   $6,241,468   $84,723,479   $78,988,980   $82,025,733   $64,703,779 

 

See Notes to Financial StatementsSA-53 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                              

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   M International Equity   M Large Cap Growth   M Large Cap Value 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $2,530,862   $2,046,221   $-   $-   $928,488   $845,759 
Realized gain (loss) on investments   131,191    91,491    4,890,101    5,791,719    1,343,586    2,729,001 
Change in net unrealized appreciation (depreciation) on investments   9,342,011    (14,154,442)   15,415,590    (27,305,200)   803,599    (4,232,417)
Net Increase (Decrease) in Net Assets Resulting from Operations   12,004,064    (12,016,730)   20,305,691    (21,513,481)   3,075,673    (657,657)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   3,441,597    2,740,976    2,852,074    2,315,603    1,780,712    1,402,899 
Transfers between variable and fixed accounts, net   4,107,413    (1,802,102)   2,164,317    1,572,218    (313,979)   1,025,167 
Policy maintenance charges   (2,039,660)   (1,837,093)   (2,715,987)   (2,261,329)   (1,626,915)   (1,351,414)
Policy benefits and terminations   (899,422)   (995,925)   (1,101,090)   (946,459)   (625,181)   (678,659)
Policy loans and loan repayments   (639,827)   (63,212)   (2,328,464)   (205,281)   (309,619)   (91,002)
Other   8,820    8,752    16,031    6,608    (3,034)   10,248 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   3,978,921    (1,948,604)   (1,113,119)   481,360    (1,098,016)   317,239 
NET INCREASE (DECREASE) IN NET ASSETS   15,982,985    (13,965,334)   19,192,572    (21,032,121)   1,977,657    (340,418)
NET ASSETS                              
Beginning of Year   73,430,733    87,396,067    63,830,638    84,862,759    41,227,881    41,568,299 
End of Year  $89,413,718   $73,430,733   $83,023,210   $63,830,638   $43,205,538   $41,227,881 
                               
    MFS New Discovery Series -    MFS New Discovery Series -    MFS Total Return Series - 
    Initial Class   Service Class    Initial Class 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $22,859   $16,327 
Realized gain (loss) on investments   (267,252)   258,728    (4,583,213)   3,804,442    17,122    77,898 
Change in net unrealized appreciation (depreciation) on investments   486,487    (686,008)   7,450,569    (13,406,799)   78,087    (174,557)
Net Increase (Decrease) in Net Assets Resulting from Operations   219,235    (427,280)   2,867,356    (9,602,357)   118,068    (80,332)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   540,191    393,023    1,346,750    1,481,872    249,322    158,521 
Transfers between variable and fixed accounts, net   109,676    383,593    (257,913)   (3,308,492)   169,931    279,429 
Policy maintenance charges   (316,923)   (270,880)   (907,246)   (960,033)   (165,526)   (137,149)
Policy benefits and terminations   (3,878)   (100)   (535,968)   (269,650)   (54,852)   - 
Policy loans and loan repayments   (244)   854    (141,479)   (217,807)   (13,319)   2,869 
Other   (177)   363    8,888    103    (1,093)   415 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   328,645    506,853    (486,968)   (3,274,007)   184,463    304,085 
NET INCREASE (DECREASE) IN NET ASSETS   547,880    79,573    2,380,388    (12,876,364)   302,531    223,753 
NET ASSETS                              
Beginning of Year   1,374,861    1,295,288    20,360,331    33,236,695    1,005,966    782,213 
End of Year  $1,922,741   $1,374,861   $22,740,719   $20,360,331   $1,308,497   $1,005,966 

 

See Notes to Financial StatementsSA-54 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year/Period Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   MFS Utilities Series -   MFS Utilities Series -   MFS Value Series - 
   Initial Class   Service Class   Initial Class 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $3,605   $1,689   $466,280   $353,034   $78,260   $43,408 
Realized gain (loss) on investments   (1)   3,651    1,148,076    1,187,490    311,443    215,555 
Change in net unrealized appreciation (depreciation) on investments   (4,626)   (6,065)   (1,962,916)   (1,479,197)   8,692    (358,824)
Net Increase (Decrease) in Net Assets Resulting from Operations   (1,022)   (725)   (348,560)   61,327    398,395    (99,861)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   46,191    23,057    681,179    619,615    861,003    719,804 
Transfers between variable and fixed accounts, net   33,682    49,600    (1,727,691)   1,209,452    1,215,154    1,006,767 
Policy maintenance charges   (36,026)   (23,123)   (628,884)   (523,189)   (473,769)   (351,762)
Policy benefits and terminations   (1,762)   -    (199,796)   (495,382)   (5,395)   (1,701)
Policy loans and loan repayments   (1,834)   -    (105,854)   (166,588)   (26,583)   (12,107)
Other   (97)   415    137    (11)   (1,962)   7,139 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   40,154    49,949    (1,980,909)   643,897    1,568,448    1,368,140 
NET INCREASE (DECREASE) IN NET ASSETS   39,132    49,224    (2,329,469)   705,224    1,966,843    1,268,279 
NET ASSETS                              
Beginning of Year   90,123    40,899    16,287,049    15,581,825    3,674,149    2,405,870 
End of Year  $129,255   $90,123   $13,957,580   $16,287,049   $5,640,992   $3,674,149 
                               
    MFS Value Series -     MFS Government    MFS Research 
    Service Class    Securities - Initial Class    International - Initial Class (1) 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $407,790   $342,613   $962   $59   $613   $- 
Realized gain (loss) on investments   2,298,202    2,223,462    (67)   (4,878)   277    118 
Change in net unrealized appreciation (depreciation) on investments   (551,350)   (4,713,916)   (109)   673    5,831    293 
Net Increase (Decrease) in Net Assets Resulting from Operations   2,154,642    (2,147,841)   786    (4,146)   6,721    411 
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,481,568    1,546,720    18,267    13,331    31,149    3,466 
Transfers between variable and fixed accounts, net   329,770    (2,180,306)   -    4,896    6,998    34,110 
Policy maintenance charges   (1,154,867)   (1,215,130)   (2,756)   (2,121)   (4,758)   (1,094)
Policy benefits and terminations   (404,191)   (1,629,390)   -    (625)   -    - 
Policy loans and loan repayments   (100,010)   (161,389)   49,330    (47,482)   -    - 
Other   (641)   10,968    -    24    -    420 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   151,629    (3,628,527)   64,841    (31,977)   33,389    36,902 
NET INCREASE (DECREASE) IN NET ASSETS   2,306,271    (5,776,368)   65,627    (36,123)   40,110    37,313 
NET ASSETS                              
Beginning of Year or Period   27,984,916    33,761,284    348    36,471    37,313    - 
End of Year or Period  $30,291,187   $27,984,916   $65,975   $348   $77,423   $37,313 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).

 

See Notes to Financial StatementsSA-55 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)  

 

   Variable Accounts 
   Year Ended   Period Ended   Year Ended   Year/Period Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   MFS Blended Research   MFS Global   Neuberger Berman 
   Small Cap Equity - Initial Class (1)   Real Estate - Initial Class (1)   Sustainable Equity Class I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $260   $31   $262   $-   $6,536   $6,659 
Realized gain (loss) on investments   1,104    (334)   1,747    10    (120,874)   136,122 
Change in net unrealized appreciation (depreciation) on investments   4,903    (306)   1,769    (420)   584,608    (487,263)
Net Increase (Decrease) in Net Assets Resulting from Operations   6,267    (609)   3,778    (410)   470,270    (344,482)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   16,510    5,231    17,412    1,651    244,638    127,625 
Transfers between variable and fixed accounts, net   1,971    13,739    (1,791)   22,299    218,746    (267,102)
Policy maintenance charges   (1,832)   (1,111)   (3,498)   (570)   (123,772)   (93,498)
Policy benefits and terminations   -    -    -    -    (32,812)   (29,649)
Policy loans and loan repayments   12,177    (11,290)   -    -    12,333    3,133 
Other   2    (128)   2    156    (261)   (369)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   28,828    6,441    12,125    23,536    318,872    (259,860)
NET INCREASE (DECREASE) IN NET ASSETS   35,095    5,832    15,903    23,126    789,142    (604,342)
NET ASSETS                              
Beginning of Year or Period   5,832    -    23,126    -    1,516,850    2,121,192 
End of Year or Period  $40,927   $5,832   $39,029   $23,126   $2,305,992   $1,516,850 
                               
    PIMCO CommodityRealReturn    PIMCO Global Managed    PIMCO Global Managed 
    Strategy - Institutional Class (1)    Asset Allocation - Advisor Class    Asset Allocation - Institutional Class 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $2,592   $-   $147,996   $122,533   $5,038   $3,074 
Realized gain (loss) on investments   (413)   (2)   (541,359)   1,111,109    (39,436)   19,289 
Change in net unrealized appreciation (depreciation) on investments   (3,046)   67    1,130,088    (2,603,451)   51,660    (49,740)
Net Increase (Decrease) in Net Assets Resulting from Operations   (867)   65    736,725    (1,369,809)   17,262    (27,377)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   -    -    362,463    279,157    36,994    4,354 
Transfers between variable and fixed accounts, net   11,983    7,754    80,473    (52,227)   (231)   47,007 
Policy maintenance charges   (2,322)   (148)   (259,735)   (289,073)   (13,407)   (10,965)
Policy benefits and terminations   -    -    (192,515)   (71,205)   -    - 
Policy loans and loan repayments   -    -    (15,157)   (402)   -    - 
Other   -    (1)   (372)   68    -    (3)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   9,661    7,605    (24,843)   (133,682)   23,356    40,393 
NET INCREASE (DECREASE) IN NET ASSETS   8,794    7,670    711,882    (1,503,491)   40,618    13,016 
NET ASSETS                              
Beginning of Year or Period   7,670    -    6,024,403    7,527,894    140,165    127,149 
End of Year or Period  $16,464   $7,670   $6,736,285   $6,024,403   $180,783   $140,165 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).

 

See Notes to Financial StatementsSA-56 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)                              

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   PIMCO Income -   Royce   State Street 
   Administrative Class   Micro-Cap Service Class   Total Return V.I.S. Class 3 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $602,488   $255,744   $-   $-   $51,361   $9,451 
Realized gain (loss) on investments   (594,542)   (75,724)   (661,739)   857,742    138    (2,159)
Change in net unrealized appreciation (depreciation) on investments   732,832    (600,020)   1,259,599    (2,180,118)   287,396    (430,870)
Net Increase (Decrease) in Net Assets Resulting from Operations   740,778    (420,000)   597,860    (1,322,376)   338,895    (423,578)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   564,940    417,658    205,796    201,042    199,975    215,143 
Transfers between variable and fixed accounts, net   9,804,374    9,062,794    26,329    (2,155,331)   55,878    (478)
Policy maintenance charges   (646,258)   (423,171)   (117,571)   (131,640)   (129,418)   (131,164)
Policy benefits and terminations   (272,807)   (35,369)   (253,034)   (46,409)   (8,464)   (31,147)
Policy loans and loan repayments   (13,175,441)   (461,249)   (47,461)   (15,398)   2,580    (889)
Other   430    37    (1,428)   (117)   87    (128)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (3,724,762)   8,560,700    (187,369)   (2,147,853)   120,638    51,337 
NET INCREASE (DECREASE) IN NET ASSETS   (2,983,984)   8,140,700    410,491    (3,470,229)   459,533    (372,241)
NET ASSETS                              
Beginning of Year   13,876,684    5,735,954    3,429,781    6,900,010    2,168,740    2,540,981 
End of Year  $10,892,700   $13,876,654   $3,840,272   $3,429,781   $2,628,273   $2,168,740 
                               
    T. Rowe Price    T. Rowe Price    T. Rowe Price 
    Blue Chip Growth - I    Blue Chip Growth - II    Equity Income - I 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $-   $-   $-   $-   $107,138   $55,728 
Realized gain (loss) on investments   (396,965)   167,525    7,056,140    13,759,366    299,971    278,673 
Change in net unrealized appreciation (depreciation) on investments   4,279,579    (2,998,188)   49,673,328    (89,820,267)   114,249    (411,704)
Net Increase (Decrease) in Net Assets Resulting from Operations   3,882,614    (2,830,663)   56,729,468    (76,060,901)   521,358    (77,303)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   2,718,982    1,904,063    6,311,260    7,034,860    739,016    466,479 
Transfers between variable and fixed accounts, net   1,823,963    2,375,876    (1,587,425)   3,379,788    2,043,821    1,179,265 
Policy maintenance charges   (1,537,687)   (1,173,452)   (5,201,248)   (5,114,878)   (594,647)   (365,570)
Policy benefits and terminations   (46,433)   (9,091)   (4,783,952)   (3,568,705)   (64,806)   (18,285)
Policy loans and loan repayments   (38,480)   (10,520)   (891,755)   (660,394)   (4,358)   49 
Other   (698)   16,667    11,370    (6,970)   (5,220)   1,216 
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   2,919,647    3,103,543    (6,141,750)   1,063,701    2,113,806    1,263,154 
NET INCREASE (DECREASE) IN NET ASSETS   6,802,261    272,880    50,587,718    (74,997,200)   2,635,164    1,185,851 
NET ASSETS                              
Beginning of Year   6,532,340    6,259,460    117,917,811    192,915,011    3,485,947    2,300,096 
End of Year  $13,334,601   $6,532,340   $168,505,529   $117,917,811   $6,121,111   $3,485,947 

 

See Notes to Financial StatementsSA-57 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

 

   Variable Accounts 
   Year Ended   Year Ended   Year Ended   Year Ended   Year/Period Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31,   December 31,   December 31, 
   2023   2022   2023   2022   2023   2022 
                         
   T. Rowe Price   VanEck VIP   Vanguard VIF 
   Equity Income - II   Global Resources Initial Class   Global Bond Index (1) 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $1,721,710   $1,563,655   $821,982   $526,893   $-      
Realized gain (loss) on investments   3,609,245    4,991,207    953,336    1,460,436    504      
Change in net unrealized appreciation (depreciation) on investments   3,010,217    (10,113,897)   (2,841,802)   459,946    13,665      
Net Increase (Decrease) in Net Assets Resulting from Operations   8,341,172    (3,559,035)   (1,066,484)   2,447,275    14,169      
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   3,710,107    4,034,920    1,479,295    1,194,081    28,272      
Transfers between variable and fixed accounts, net   (1,718,869)   (21,134)   (1,260,394)   (2,453,428)   245,231      
Policy maintenance charges   (3,136,286)   (3,357,906)   (1,114,451)   (1,132,121)   (12,139)     
Policy benefits and terminations   (1,521,740)   (1,356,117)   (865,833)   (747,197)   -      
Policy loans and loan repayments   (323,505)   (250,358)   102,676    (195,503)   -      
Other   (16,046)   (7,375)   5,045    (4,756)   (2)     
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   (3,006,339)   (957,970)   (1,653,662)   (3,338,924)   261,362      
NET INCREASE (DECREASE) IN NET ASSETS   5,334,833    (4,517,005)   (2,720,146)   (891,649)   275,531      
NET ASSETS                              
Beginning of Year or Period   91,180,905    95,697,910    31,071,404    31,963,053    -      
End of Year or Period  $96,515,738   $91,180,905   $28,351,258   $31,071,404   $275,531      
                               
    Vanguard VIF    Vanguard VIF    Vanguard VIF 
    High Yield Bond    Mid-Cap Index    Real Estate Index 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                              
Net investment income  $140,769   $75,071   $265,905   $100,366   $117,776   $46,638 
Realized gain (loss) on investments   (80,014)   (64,220)   141,196    832,152    (102,004)   85,842 
Change in net unrealized appreciation (depreciation) on investments   404,312    (135,667)   3,502,660    (2,795,235)   733,153    (1,012,323)
Net Increase (Decrease) in Net Assets Resulting from Operations   465,067    (124,816)   3,909,761    (1,862,717)   748,925    (879,843)
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                              
Payments received from policyholders   1,003,761    581,572    6,308,202    3,022,225    1,431,101    1,000,401 
Transfers between variable and fixed accounts, net   2,000,489    1,172,587    11,342,035    9,270,488    1,860,174    2,641,912 
Policy maintenance charges   (580,744)   (342,576)   (4,051,799)   (2,342,152)   (918,774)   (669,125)
Policy benefits and terminations   (786)   (294)   (119,730)   (29,415)   (34,509)   (9,151)
Policy loans and loan repayments   (1,521)   (1,479)   34,938    (120,597)   (14,183)   (2,011)
Other   2,461    (893)   17,779    5,253    3,914    (593)
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   2,423,660    1,408,917    13,531,425    9,805,802    2,327,723    2,961,433 
NET INCREASE (DECREASE) IN NET ASSETS   2,888,727    1,284,101    17,441,186    7,943,085    3,076,648    2,081,590 
NET ASSETS                              
Beginning of Year   2,575,713    1,291,612    15,860,941    7,917,856    4,166,142    2,084,552 
End of Year  $5,464,440   $2,575,713   $33,302,127   $15,860,941   $7,242,790   $4,166,142 

 

(1) Operations commenced or resumed during 2023 (See Financial Highlights for commencement date of operations).

 

See Notes to Financial StatementsSA-58 

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

 

   Variable Accounts                 
   Year Ended   Period Ended   Year Ended   Period Ended                 
   December 31,   December 31,   December 31,   December 31,                 
   2023   2022   2023   2022                 
                                 
   Vanguard VIF   Vanguard VIF                 
   Total Bond Market Index (1)   Total Stock Market Index (1)                 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS                                    
Net investment income  $19,063   $-   $3,119   $-                 
Realized gain (loss) on investments   (13,087)   (583)   17,092    (10)                
Change in net unrealized appreciation (depreciation) on investments   55,796    (9,020)   41,234    203                 
Net Increase (Decrease) in Net Assets Resulting from Operations   61,772    (9,603)   61,445    193                 
INCREASE (DECREASE) IN NET ASSETS FROM POLICY TRANSACTIONS                                    
Payments received from policyholders   561,279    659,147    140,021    18,883                 
Transfers between variable and fixed accounts, net   569,990    -    272,012    11,957                 
Policy maintenance charges   (127,507)   (17,130)   (40,453)   (2,964)                
Policy benefits and terminations   -    -    -    -                 
Policy loans and loan repayments   -    -    -    -                 
Other   240    805    1,055    (325)                
Net Increase (Decrease) in Net Assets Derived from Policy Transactions   1,004,002    642,822    372,635    27,551                 
NET INCREASE (DECREASE) IN NET ASSETS   1,065,774    633,219    434,080    27,744                 
NET ASSETS                                    
Beginning of Year or Period   633,219    -    27,744    -                 
End of Year or Period  $1,698,993   $633,219   $461,824   $27,744                 

 

(1) Operations commenced or resumed during 2022 (See Financial Highlights for commencement date of operations).

 

See Notes to Financial StatementsSA-59 

 

 

 PACIFIC SELECT EXEC SEPARATE ACCOUNT

FINANCIAL HIGHLIGHTS

 

     A summary of accumulation unit values ("AUV"), units outstanding, net assets, investment income ratios, expense ratios, and total returns for each year or period ended December 31 are presented in the table below.  

 

   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Core Income Class I                              
2023  $12.06    859,138   $10,358,536    0.00%   0.00%   7.98%
2022   11.17    434,293    4,849,317    0.00%   0.00%   (12.40)%
2021   12.75    441,405    5,626,563    0.00%   0.00%   (0.39)%
2020   12.80    499,894    6,397,271    0.00%   0.00%   9.58%
2019   11.68    416,898    4,868,941    0.00%   0.00%   10.92%
Core Income Class P                              
2023  $9.92    2,807   $27,851    0.00%   0.00%   8.19%
2022   9.17    16    146    0.00%   0.00%   (12.23)%
05/19/2021 - 12/31/2021   10.45    1,464    15,299    0.00%   0.00%   1.79%
Diversified Bond Class I                              
2023  $17.09    4,348,153   $74,295,943    0.00%   0.00%   3.60%
2022   16.49    4,210,060    69,435,523    0.00%   0.00%   (18.62)%
2021   20.27    5,029,050    101,920,749    0.00%   0.00%   (1.93)%
2020   20.66    4,751,437    98,187,388    0.00%   0.00%   10.35%
2019   18.73    4,750,329    88,954,434    0.00%   0.00%   13.00%
Diversified Bond Class P                              
2023  $9.35    659,653   $6,164,819    0.00%   0.00%   3.81%
2022   9.00    317,064    2,854,420    0.00%   0.00%   (18.46)%
2021   11.04    198,091    2,187,003    0.00%   0.00%   (1.73)%
01/23/2020 - 12/31/2020   11.23    40,143    451,002    0.00%   0.00%   9.31%
Floating Rate Income Class I                              
2023  $15.43    2,125,736   $32,793,289    0.00%   0.00%   13.66%
2022   13.57    2,413,477    32,758,473    0.00%   0.00%   (1.54)%
2021   13.79    2,776,498    38,276,449    0.00%   0.00%   4.62%
2020   13.18    2,103,143    27,712,971    0.00%   0.00%   4.71%
2019   12.58    2,626,548    33,054,004    0.00%   0.00%   8.11%
Floating Rate Income Class P                              
2023  $12.59    81,867   $1,030,811    0.00%   0.00%   13.76%
2022   11.07    53,846    595,962    0.00%   0.00%   (1.35)%
2021   11.22    16,750    187,926    0.00%   0.00%   4.83%
01/29/2020 - 12/31/2020   10.70    564    6,039    0.00%   0.00%   4.70%
High Yield Bond Class I                              
2023  $93.61    887,306   $83,060,165    0.00%   0.00%   12.22%
2022   83.42    853,642    71,206,687    0.00%   0.00%   (10.35)%
2021   93.04    934,610    86,958,544    0.00%   0.00%   5.42%
2020   88.26    880,521    77,713,482    0.00%   0.00%   5.74%
2019   83.46    924,934    77,198,296    0.00%   0.00%   13.98%
High Yield Bond Class P                               
2023  $11.68    112,518   $1,314,277    0.00%   0.00%   12.45%
2022   10.39    46,802    486,168    0.00%   0.00%   (10.17)%
2021   11.56    31,300    361,943    0.00%   0.00%   5.63%
2020   10.95    4,861    53,219    0.00%   0.00%   5.96%
12/20/2019 - 12/31/2019   10.33    8    85    0.00%   0.00%   0.09%
Inflation Managed Class I                              
2023  $69.66    1,083,563   $75,484,843    0.00%   0.00%   3.67%
2022   67.20    983,506    66,089,815    0.00%   0.00%   (11.87)%
2021   76.25    1,037,110    79,080,898    0.00%   0.00%   5.69%
2020   72.15    985,790    71,121,228    0.00%   0.00%   11.42%
2019   64.75    1,078,327    69,823,639    0.00%   0.00%   8.64%
Inflation Managed Class P                              
2023  $10.88    168,959   $1,838,538    0.00%   0.00%   3.88%
2022   10.48    84,298    883,059    0.00%   0.00%   (11.70)%
2021   11.86    21,485    254,875    0.00%   0.00%   5.90%
02/03/2020 - 12/31/2020   11.20    3,493    39,125    0.00%   0.00%   9.62%
Intermediate Bond Class P                               
2023  $10.14    192,026   $1,947,377    0.00%   0.00%   5.95%
08/04/2022 - 12/31/2022   9.57    24,534    234,836    0.00%   0.00%   (5.11)%

 

See Notes to Financial StatementsSA-60 See explanation of references on page SA-77

 

 

 PACIFIC SELECT EXEC SEPARATE ACCOUNT

 FINANCIAL HIGHLIGHTS (Continued) 

 

   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Managed Bond Class I                              
2023  $73.81    3,476,149   $256,568,406    0.00%   0.00%   6.55%
2022   69.27    3,623,777    251,020,700    0.00%   0.00%   (14.02)%
2021   80.57    3,795,129    305,762,827    0.00%   0.00%   (1.13)%
2020   81.49    3,672,883    299,302,631    0.00%   0.00%   8.34%
2019   75.22    3,396,868    255,502,200    0.00%   0.00%   8.49%
Managed Bond Class P                               
2023  $9.87    447,120   $4,414,624    0.00%   0.00%   6.76%
2022   9.25    241,047    2,229,188    0.00%   0.00%   (13.85)%
2021   10.73    81,611    876,059    0.00%   0.00%   (0.93)%
2020   10.84    14,222    154,108    0.00%   0.00%   8.56%
12/20/2019 - 12/31/2019   9.98    23    234    0.00%   0.00%   0.13%
Short Duration Bond Class I                              
2023  $14.27    6,133,357   $87,520,454    0.00%   0.00%   4.87%
2022   13.61    5,521,198    75,123,147    0.00%   0.00%   (4.58)%
2021   14.26    6,924,820    98,740,450    0.00%   0.00%   (0.45)%
2020   14.32    7,577,343    108,534,436    0.00%   0.00%   3.73%
2019   13.81    6,308,357    87,104,910    0.00%   0.00%   4.22%
Short Duration Bond Class P                              
2023  $10.49    437,731   $4,590,946    0.00%   0.00%   5.08%
2022   9.98    238,475    2,380,112    0.00%   0.00%   (4.39)%
2021   10.44    99,958    1,043,397    0.00%   0.00%   (0.25)%
01/17/2020 - 12/31/2020   10.46    26,431    276,594    0.00%   0.00%   3.73%
Emerging Markets Debt Class I                              
2023  $12.69    448,848   $5,696,939    0.00%   0.00%   12.35%
2022   11.30    451,033    5,095,350    0.00%   0.00%   (9.27)%
2021   12.45    484,728    6,035,370    0.00%   0.00%   (6.12)%
2020   13.26    444,906    5,900,885    0.00%   0.00%   1.75%
2019   13.03    820,079    10,689,519    0.00%   0.00%   9.52%
Emerging Markets Debt Class P                              
2023  $10.08    14,049   $141,632    0.00%   0.00%   12.57%
2022   8.96    9,516    85,224    0.00%   0.00%   (9.08)%
2021   9.85    5,829    57,418    0.00%   0.00%   (5.94)%
03/09/2020 - 12/31/2020   10.47    998    10,455    0.00%   0.00%   10.19%
Dividend Growth Class I                              
2023  $57.56    1,893,598   $108,999,448    0.00%   0.00%   13.32%
2022   50.80    2,028,217    103,027,119    0.00%   0.00%   (10.49)%
2021   56.75    2,104,046    119,406,051    0.00%   0.00%   25.80%
2020   45.11    2,130,471    96,110,636    0.00%   0.00%   13.44%
2019   39.77    2,207,768    87,800,331    0.00%   0.00%   30.64%
Dividend Growth Class P                              
2023  $16.16    237,555   $3,837,818    0.00%   0.00%   13.54%
2022   14.23    108,415    1,542,558    0.00%   0.00%   (10.31)%
2021   15.86    47,084    746,951    0.00%   0.00%   26.05%
01/17/2020 - 12/31/2020   12.59    15,799    198,834    0.00%   0.00%   10.47%
Equity Index Class I                              
2023  $243.54    4,742,868   $1,155,074,118    0.00%   0.00%   25.93%
2022   193.39    4,769,399    922,333,787    0.00%   0.00%   (18.31)%
2021   236.73    4,938,614    1,169,119,245    0.00%   0.00%   28.37%
2020   184.41    5,094,685    939,526,761    0.00%   0.00%   18.11%
2019   156.14    5,233,653    817,172,061    0.00%   0.00%   31.10%
Equity Index Class P                              
2023  $17.96    10,938,798   $196,450,596    0.00%   0.00%   26.19%
2022   14.23    6,073,436    86,438,308    0.00%   0.00%   (18.15)%
2021   17.39    1,879,469    32,678,816    0.00%   0.00%   28.63%
2020   13.52    207,723    2,807,925    0.00%   0.00%   18.35%
12/05/2019 - 12/31/2019   11.42    171    1,955    0.00%   0.00%   3.74%

  

See Notes to Financial StatementsSA-61 See explanation of references on page SA-77

 

 

 PACIFIC SELECT EXEC SEPARATE ACCOUNT

 FINANCIAL HIGHLIGHTS (Continued) 

 

   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Focused Growth Class I                              
2023  $69.83    624,081   $43,579,968    0.00%   0.00%   37.96%
2022   50.62    669,958    33,910,279    0.00%   0.00%   (33.80)%
2021   76.46    686,421    52,481,031    0.00%   0.00%   19.79%
2020   63.83    734,685    46,892,974    0.00%   0.00%   38.29%
2019   46.15    882,612    40,736,219    0.00%   0.00%   35.46%
Growth Class I                              
2023  $227.82    1,372,312   $312,633,691    0.00%   0.00%   35.55%
2022   168.07    1,469,956    247,060,813    0.00%   0.00%   (31.21)%
2021   244.34    1,653,122    403,918,474    0.00%   0.00%   23.42%
2020   197.97    1,628,439    322,375,433    0.00%   0.00%   31.56%
2019   150.48    1,916,770    288,429,171    0.00%   0.00%   38.13%
Growth Class P                              
2023  $16.88    381,864   $6,445,560    0.00%   0.00%   35.82%
2022   12.43    241,756    3,004,549    0.00%   0.00%   (31.07)%
2021   18.03    125,252    2,258,423    0.00%   0.00%   23.67%
01/15/2020 - 12/31/2020   14.58    49,360    719,664    0.00%   0.00%   27.07%
Hedged Equity Class P                              
2023  $11.29    394,371   $4,453,238    0.00%   0.00%   15.92%
2022   9.74    206,747    2,013,996    0.00%   0.00%   (7.76)%
06/02/2021 - 12/31/2021   10.56    38,917    411,007    0.00%   0.00%   4.86%
Large-Cap Core Class I                              
2023  $211.08    1,120,006   $236,408,044    0.00%   0.00%   27.06%
2022   166.12    1,209,833    200,983,427    0.00%   0.00%   (20.61)%
2021   209.26    1,279,073    267,663,874    0.00%   0.00%   27.76%
2020   163.79    1,363,467    223,326,153    0.00%   0.00%   13.94%
2019   143.76    1,519,570    218,453,104    0.00%   0.00%   32.13%
Large-Cap Core Class P                              
2023  $16.44    113,652   $1,868,674    0.00%   0.00%   27.31%
2022   12.91    63,783    823,738    0.00%   0.00%   (20.46)%
2021   16.24    47,433    770,118    0.00%   0.00%   28.02%
01/27/2020 - 12/31/2020   12.68    7,287    92,415    0.00%   0.00%   13.62%
Large-Cap Growth Class I                              
2023  $37.11    2,385,505   $88,537,878    0.00%   0.00%   45.12%
2022   25.58    2,282,241    58,370,883    0.00%   0.00%   (37.90)%
2021   41.18    2,312,587    95,243,846    0.00%   0.00%   20.27%
2020   34.24    2,738,015    93,758,985    0.00%   0.00%   38.35%
2019   24.75    2,812,419    69,613,091    0.00%   0.00%   32.34%
Large-Cap Growth Class P                              
2023  $13.65    78,180   $1,066,844    0.00%   0.00%   45.41%
07/22/2022 - 12/31/2022   9.38    15,818    148,449    0.00%   0.00%   (12.15)%
Large-Cap Value Class I                              
2023  $56.88    2,873,762   $163,460,471    0.00%   0.00%   14.91%
2022   49.50    3,016,157    149,297,080    0.00%   0.00%   (6.63)%
2021   53.01    3,217,307    170,562,720    0.00%   0.00%   26.12%
2020   42.04    3,261,543    137,101,538    0.00%   0.00%   5.87%
2019   39.70    3,301,612    131,089,688    0.00%   0.00%   28.46%
Large-Cap Value Class P                               
2023  $16.27    208,457   $3,391,949    0.00%   0.00%   15.14%
2022   14.13    156,229    2,207,814    0.00%   0.00%   (6.44)%
2021   15.11    129,350    1,953,860    0.00%   0.00%   26.37%
2020   11.95    12,188    145,690    0.00%   0.00%   6.08%
12/20/2019 - 12/31/2019   11.27    25    277    0.00%   0.00%   0.33%
Mid-Cap Equity Class I                              
2023  $86.77    1,713,717   $148,700,575    0.00%   0.00%   15.35%
2022   75.23    1,735,544    130,557,378    0.00%   0.00%   (17.26)%
2021   90.91    1,818,299    165,308,873    0.00%   0.00%   16.40%
2020   78.10    2,047,589    159,926,831    0.00%   0.00%   27.51%
2019   61.25    2,160,175    132,314,856    0.00%   0.00%   20.84%

  

See Notes to Financial StatementsSA-62 See explanation of references on page SA-77

 

 

 PACIFIC SELECT EXEC SEPARATE ACCOUNT

 FINANCIAL HIGHLIGHTS (Continued) 

 

   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Mid-Cap Growth Class I                              
2023  $42.39    1,999,781   $84,764,522    0.00%   0.00%   19.62%
2022   35.43    1,999,378    70,847,677    0.00%   0.00%   (30.72)%
2021   51.15    2,602,565    133,123,347    0.00%   0.00%   16.67%
2020   43.84    2,288,591    100,338,327    0.00%   0.00%   50.14%
2019   29.20    2,846,759    83,131,496    0.00%   0.00%   38.45%
Mid-Cap Growth Class P                              
2023  $16.24    76,731   $1,246,341    0.00%   0.00%   19.86%
2022   13.55    49,595    672,103    0.00%   0.00%   (30.59)%
2021   19.52    29,650    578,860    0.00%   0.00%   16.90%
01/21/2020 - 12/31/2020   16.70    7,357    122,860    0.00%   0.00%   44.86%
Mid-Cap Value Class I                              
2023  $57.78    386,436   $22,329,524    0.00%   0.00%   16.39%
2022   49.65    380,243    18,877,903    0.00%   0.00%   (7.26)%
2021   53.54    378,591    20,268,304    0.00%   0.00%   27.03%
2020   42.14    376,647    15,873,340    0.00%   0.00%   5.52%
2019   39.94    351,564    14,041,545    0.00%   0.00%   29.94%
Mid-Cap Value Class P                              
2023  $16.40    43,085   $706,447    0.00%   0.00%   16.62%
2022   14.06    23,975    337,077    0.00%   0.00%   (7.08)%
2021   15.13    8,467    128,117    0.00%   0.00%   27.29%
2020   11.89    3,800    45,172    0.00%   0.00%   5.73%
12/05/2019 - 12/31/2019   11.24    23    253    0.00%   0.00%   3.26%
Small-Cap Equity Class I                              
2023  $47.93    648,870   $31,098,961    0.00%   0.00%   12.97%
2022   42.43    611,206    25,930,826    0.00%   0.00%   (12.92)%
2021   48.72    691,738    33,701,180    0.00%   0.00%   26.46%
2020   38.53    711,468    27,410,364    0.00%   0.00%   5.42%
2019   36.55    691,300    25,264,681    0.00%   0.00%   23.96%
Small-Cap Equity Class P                              
2023  $15.52    50,512   $783,956    0.00%   0.00%   13.20%
2022   13.71    44,755    613,637    0.00%   0.00%   (12.74)%
2021   15.71    37,212    584,730    0.00%   0.00%   26.71%
01/29/2020 - 12/31/2020   12.40    12,845    159,298    0.00%   0.00%   8.71%
Small-Cap Growth Class I                              
2023  $46.31    499,467   $23,132,422    0.00%   0.00%   14.20%
2022   40.56    543,845    22,056,138    0.00%   0.00%   (29.92)%
2021   57.87    583,726    33,781,633    0.00%   0.00%   1.69%
2020   56.91    614,710    34,983,226    0.00%   0.00%   55.58%
2019   36.58    673,172    24,624,848    0.00%   0.00%   31.90%
Small-Cap Index Class I                              
2023  $57.49    4,230,079   $243,169,054    0.00%   0.00%   16.20%
2022   49.47    4,325,265    213,975,691    0.00%   0.00%   (20.86)%
2021   62.51    4,472,064    279,564,935    0.00%   0.00%   14.24%
2020   54.72    4,716,091    258,077,471    0.00%   0.00%   19.16%
2019   45.93    5,121,812    235,221,748    0.00%   0.00%   24.80%
Small-Cap Index Class P                              
2023  $14.49    1,779,220   $25,780,714    0.00%   0.00%   16.43%
2022   12.44    952,767    11,857,027    0.00%   0.00%   (20.70)%
2021   15.69    412,353    6,471,588    0.00%   0.00%   14.47%
2020   13.71    43,361    594,521    0.00%   0.00%   19.39%
12/05/2019 - 12/31/2019   11.48    22    254    0.00%   0.00%   3.44%
Small-Cap Value Class I                              
2023  $69.96    1,024,687   $71,691,671    0.00%   0.00%   7.53%
2022   65.07    1,066,375    69,385,448    0.00%   0.00%   (16.81)%
2021   78.21    1,214,998    95,030,403    0.00%   0.00%   35.61%
2020   57.68    1,222,962    70,537,176    0.00%   0.00%   3.44%
2019   55.76    1,220,268    68,043,066    0.00%   0.00%   22.58%

  

See Notes to Financial StatementsSA-63 See explanation of references on page SA-77

 

 

 PACIFIC SELECT EXEC SEPARATE ACCOUNT

 FINANCIAL HIGHLIGHTS (Continued) 

 

   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Small-Cap Value Class P                              
2023  $14.66    74,326   $1,089,551    0.00%   0.00%   7.74%
2022   13.61    40,894    556,397    0.00%   0.00%   (16.64)%
2021   16.32    23,566    384,652    0.00%   0.00%   35.88%
2020   12.01    8,934    107,321    0.00%   0.00%   3.64%
12/31/2019 - 12/31/2019   11.59    110    1,275    0.00%   0.00%   (0.39)%
Value Class I                              
2023  $33.29    1,951,447   $64,969,945    0.00%   0.00%   3.77%
2022   32.08    1,994,777    64,000,318    0.00%   0.00%   (0.53)%
2021   32.26    2,176,582    70,208,845    0.00%   0.00%   21.64%
2020   26.52    2,224,404    58,984,616    0.00%   0.00%   (6.94)%
2019   28.49    2,220,468    63,269,136    0.00%   0.00%   24.72%
Value Class P                              
2023  $13.71    30,130   $413,062    0.00%   0.00%   3.98%
2022   13.19    17,520    231,000    0.00%   0.00%   (0.34)%
2021   13.23    10,827    143,239    0.00%   0.00%   21.89%
01/21/2020 - 12/31/2020   10.85    5,457    59,227    0.00%   0.00%   (6.79)%
Value Advantage Class I                              
2023  $25.67    407,226   $10,453,172    0.00%   0.00%   9.60%
2022   23.42    561,871    13,159,067    0.00%   0.00%   (4.07)%
2021   24.41    582,422    14,218,676    0.00%   0.00%   28.52%
2020   18.99    338,926    6,437,851    0.00%   0.00%   (2.78)%
2019   19.54    287,948    5,625,687    0.00%   0.00%   26.96%
Value Advantage Class P                              
2023  $15.25    102,273   $1,559,950    0.00%   0.00%   9.82%
2022   13.89    87,606    1,216,730    0.00%   0.00%   (3.87)%
2021   14.45    27,484    397,099    0.00%   0.00%   28.78%
01/17/2020 - 12/31/2020   11.22    17,208    193,058    0.00%   0.00%   (3.30)%
Emerging Markets Class I                              
2023  $49.47    2,915,227   $144,225,680    0.00%   0.00%   8.95%
2022   45.41    2,942,304    133,605,498    0.00%   0.00%   (25.27)%
2021   60.77    2,904,791    176,510,894    0.00%   0.00%   (8.28)%
2020   66.25    2,828,376    187,390,846    0.00%   0.00%   17.33%
2019   56.47    3,072,067    173,475,670    0.00%   0.00%   25.60%
Emerging Markets Class P                              
2023  $10.36    409,498   $4,240,923    0.00%   0.00%   9.17%
2022   9.49    199,368    1,891,307    0.00%   0.00%   (25.12)%
2021   12.67    107,021    1,355,891    0.00%   0.00%   (8.10)%
2020   13.79    19,963    275,214    0.00%   0.00%   17.56%
12/20/2019 - 12/31/2019   11.73    289    3,394    0.00%   0.00%   0.18%
International Growth Class P                              
2023  $11.19    31,647   $354,181    0.00%   0.00%   14.16%
11/02/2022 - 12/31/2022   9.80    899    8,813    0.00%   0.00%   9.25%
International Large-Cap Class I                              
2023  $27.66    9,020,775   $249,556,714    0.00%   0.00%   18.65%
2022   23.32    9,083,211    211,784,324    0.00%   0.00%   (15.19)%
2021   27.49    9,291,527    255,456,240    0.00%   0.00%   14.78%
2020   23.95    9,954,397    238,444,383    0.00%   0.00%   10.74%
2019   21.63    9,991,096    216,113,684    0.00%   0.00%   28.03%
International Large-Cap Class P                               
2023  $14.57    335,229   $4,884,131    0.00%   0.00%   18.89%
2022   12.25    153,853    1,885,439    0.00%   0.00%   (15.02)%
2021   14.42    80,570    1,161,946    0.00%   0.00%   15.01%
2020   12.54    17,794    223,134    0.00%   0.00%   10.96%
12/20/2019 - 12/31/2019   11.30    729    8,242    0.00%   0.00%   0.54%
International Small-Cap Class I                              
2022  $19.54    2,015,162   $39,377,685    0.00%   0.00%   17.23%
2022   16.67    2,043,904    34,069,180    0.00%   0.00%   (17.09)%
2021   20.10    2,111,329    42,446,066    0.00%   0.00%   13.87%
2020   17.65    2,233,322    39,429,037    0.00%   0.00%   8.42%
2019   16.28    2,709,524    44,120,555    0.00%   0.00%   20.07%

  

See Notes to Financial StatementsSA-64 See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT
FINANCIAL HIGHLIGHTS (Continued)
                         
   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
International Small-Cap Class P                              
2023  $13.90    83,155   $1,155,762    0.00%   0.00%   17.46%
2022   11.83    63,960    756,801    0.00%   0.00%   (16.92)%
2021   14.24    28,981    412,755    0.00%   0.00%   14.10%
2020   12.48    5,893    73,560    0.00%   0.00%   8.64%
12/20/2019 - 12/31/2019   11.49    229    2,636    0.00%   0.00%   0.92%
International Value Class I                              
2023  $42.70    3,522,357   $150,403,413    0.00%   0.00%   20.20%
2022   35.52    3,793,170    134,742,811    0.00%   0.00%   (1.26)%
2021   35.98    4,019,454    144,609,000    0.00%   0.00%   20.36%
2020   29.89    4,162,321    124,416,910    0.00%   0.00%   (7.17)%
2019   32.20    4,156,543    133,840,159    0.00%   0.00%   16.60%
Health Sciences Class I                              
2023  $106.44    809,629   $86,173,648    0.00%   0.00%   3.42%
2022   102.91    880,344    90,600,348    0.00%   0.00%   (5.80)%
2021   109.26    918,119    100,310,172    0.00%   0.00%   12.38%
2020   97.22    927,859    90,203,729    0.00%   0.00%   18.79%
2019   81.84    969,508    79,347,224    0.00%   0.00%   25.77%
Health Sciences Class P                              
2023  $15.09    133,078   $2,007,817    0.00%   0.00%   3.63%
2022   14.56    123,224    1,794,045    0.00%   0.00%   (5.61)%
2021   15.43    92,055    1,419,967    0.00%   0.00%   12.61%
03/11/2020 - 12/31/2020   13.70    35,114    480,989    0.00%   0.00%   30.88%
Real Estate Class I                              
2023  $96.49    937,930   $90,497,682    0.00%   0.00%   13.01%
2022   85.38    951,629    81,247,460    0.00%   0.00%   (25.64)%
2021   114.82    1,004,376    115,318,671    0.00%   0.00%   40.32%
2020   81.82    1,019,829    83,446,833    0.00%   0.00%   (3.28)%
2019   84.60    1,097,955    92,882,541    0.00%   0.00%   31.28%
Real Estate Class  P                              
2023  $12.02    6,784   $81,529    0.00%   0.00%   13.24%
2022   10.61    4,489    47,644    0.00%   0.00%   (25.49)%
2021   14.24    2,857    40,698    0.00%   0.00%   40.60%
03/04/2020 - 12/31/2020   10.13    2,133    21,610    0.00%   0.00%   (4.71)%
Technology Class I                              
2023  $28.50    1,688,057   $48,109,684    0.00%   0.00%   53.68%
2022   18.55    1,765,977    32,750,895    0.00%   0.00%   (36.06)%
2021   29.00    1,787,109    51,834,613    0.00%   0.00%   13.86%
2020   25.47    2,088,789    53,209,091    0.00%   0.00%   47.24%
2019   17.30    1,784,422    30,872,221    0.00%   0.00%   36.32%
Technology Class P                              
2023  $18.42    124,702   $2,296,424    0.00%   0.00%   53.98%
2022   11.96    93,298    1,115,773    0.00%   0.00%   (35.93)%
2021   18.67    64,662    1,207,001    0.00%   0.00%   14.09%
2020   16.36    27,415    448,532    0.00%   0.00%   47.54%
12/31/2019 - 12/31/2019   11.09    230    2,551    0.00%   0.00%   1.83%
ESG Diversified Class P                              
2023  $10.37    14,240   $147,604    0.00%   0.00%   16.01%
2022   8.93    2,638    23,566    0.00%   0.00%   (16.43)%
10/04/2021 - 12/31/2021   10.69    608    6,504    0.00%   0.00%   5.21%
ESG Diversified Growth Class P                              
2023  $11.09    114,290   $1,266,968    0.00%   0.00%   17.90%
06/01/2022 - 12/31/2022   9.40    44,839    421,615    0.00%   0.00%   (4.98)%
PSF Avantis Balanced Allocation Class D                              
2023  $16.33    715,343   $11,678,161    0.00%   0.00%   13.83%
2022   14.34    752,956    10,798,693    0.00%   0.00%   (14.99)%
2021   16.87    687,015    11,590,659    0.00%   0.00%   12.50%
2020   15.00    704,036    10,558,160    0.00%   0.00%   12.11%
2019   13.38    678,497    9,076,243    0.00%   0.00%   19.75%

  

See Notes to Financial StatementsSA-65 See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT
FINANCIAL HIGHLIGHTS (Continued)
                         
   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
PSF Avantis Balanced Allocation Class P                              
2023  $12.77    76,244   $973,693    0.00%   0.00%   14.12%
2022   11.19    67,709    757,738    0.00%   0.00%   (14.78)%
2021   13.13    20,533    269,636    0.00%   0.00%   12.78%
03/09/2020 - 12/31/2020   11.64    6,281    73,136    0.00%   0.00%   23.74%
Pacific Dynamix - Conservative Growth Class I                              
2023  $24.12    675,329   $16,291,500    0.00%   0.00%   11.68%
2022   21.60    714,793    15,439,824    0.00%   0.00%   (14.38)%
2021   25.23    680,836    17,175,295    0.00%   0.00%   6.44%
2020   23.70    648,379    15,366,499    0.00%   0.00%   12.21%
2019   21.12    579,729    12,244,024    0.00%   0.00%   15.47%
Pacific Dynamix - Conservative Growth Class P                              
2023  $11.83    697,023   $8,243,504    0.00%   0.00%   11.91%
2022   10.57    437,347    4,622,088    0.00%   0.00%   (14.20)%
2021   12.32    237,267    2,922,672    0.00%   0.00%   6.66%
01/27/2020 - 12/31/2020   11.55    43,308    500,162    0.00%   0.00%   11.97%
Pacific Dynamix - Moderate Growth Class I                              
2023  $30.50    2,364,646   $72,123,443    0.00%   0.00%   15.04%
2022   26.51    2,413,963    64,000,738    0.00%   0.00%   (15.69)%
2021   31.45    2,493,186    78,405,962    0.00%   0.00%   10.62%
2020   28.43    2,463,729    70,042,996    0.00%   0.00%   14.58%
2019   24.81    2,619,824    65,004,271    0.00%   0.00%   18.94%
Pacific Dynamix - Moderate Growth Class P                              
2023  $12.87    4,147,496   $53,394,133    0.00%   0.00%   15.27%
2022   11.17    3,171,323    35,418,002    0.00%   0.00%   (15.52)%
2021   13.22    1,656,196    21,896,050    0.00%   0.00%   10.85%
2020   11.93    88,015    1,049,750    0.00%   0.00%   14.81%
12/23/2019 - 12/31/2019   10.39    4,556    47,334    0.00%   0.00%   0.18%
Pacific Dynamix - Growth Class I                              
2023  $37.44    3,342,062   $125,134,057    0.00%   0.00%   16.98%
2022   32.01    3,403,642    108,939,579    0.00%   0.00%   (16.69)%
2021   38.42    3,148,866    120,972,311    0.00%   0.00%   14.33%
2020   33.60    3,087,728    103,751,133    0.00%   0.00%   15.79%
2019   29.02    2,924,588    84,870,166    0.00%   0.00%   22.94%
Pacific Dynamix - Growth Class P                              
2023  $13.66    3,326,491   $45,440,324    0.00%   0.00%   17.22%
2022   11.65    2,194,922    25,579,193    0.00%   0.00%   (16.52)%
2021   13.96    1,244,853    17,378,260    0.00%   0.00%   14.57%
01/08/2020 - 12/31/2020   12.18    245,207    2,987,787    0.00%   0.00%   15.56%
Portfolio Optimization Conservative Class I                              
2023  $14.94    874,457   $13,065,436    0.00%   0.00%   9.22%
2022   13.68    976,146    13,353,207    0.00%   0.00%   (13.67)%
2021   15.85    1,003,548    15,901,250    0.00%   0.00%   2.20%
2020   15.50    1,124,746    17,437,289    0.00%   0.00%   7.88%
2019   14.37    1,144,298    16,443,939    0.00%   0.00%   12.20%
Portfolio Optimization Conservative Class P                              
2023  $10.63    1,637   $17,394    0.00%   0.00%   9.44%
2022   9.71    5,788    56,205    0.00%   0.00%   (13.49)%
2021   11.23    4,955    55,625    0.00%   0.00%   2.41%
03/09/2020 - 12/31/2020   10.96    607    6,657    0.00%   0.00%   10.30%
Portfolio Optimization Moderate-Conservative Class I                              
2023  $17.33    2,740,547   $47,484,683    0.00%   0.00%   11.06%
2022   15.60    2,860,354    44,625,880    0.00%   0.00%   (14.90)%
2021   18.33    3,016,948    55,311,976    0.00%   0.00%   6.28%
2020   17.25    3,138,211    54,135,722    0.00%   0.00%   9.97%
2019   15.69    3,430,829    53,817,810    0.00%   0.00%   15.28%
Portfolio Optimization Moderate-Conservative Class P                              
2023  $11.41    16,576   $189,168    0.00%   0.00%   11.28%
2022   10.26    2,574    26,392    0.00%   0.00%   (14.73)%
2021   12.03    1,531    18,416    0.00%   0.00%   6.49%
03/09/2020 - 12/31/2020   11.29    1,426    16,100    0.00%   0.00%   16.74%

 

See Notes to Financial StatementsSA-66 See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT
FINANCIAL HIGHLIGHTS (Continued)
                         
   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Portfolio Optimization Moderate Class I                              
2023  $19.80    11,298,893   $223,773,175    0.00%   0.00%   13.88%
2022   17.39    12,152,414    211,350,844    0.00%   0.00%   (15.72)%
2021   20.63    12,905,053    266,291,183    0.00%   0.00%   9.18%
2020   18.90    13,311,873    251,587,848    0.00%   0.00%   11.83%
2019   16.90    14,309,533    241,840,587    0.00%   0.00%   18.46%
Portfolio Optimization Moderate Class P                              
2023  $12.20    68,383   $834,184    0.00%   0.00%   14.10%
2022   10.69    50,812    543,228    0.00%   0.00%   (15.55)%
2021   12.66    36,520    462,303    0.00%   0.00%   9.40%
01/09/2020 - 12/31/2020   11.57    22,515    260,533    0.00%   0.00%   11.30%
Portfolio Optimization Growth Class I                              
2023  $22.00    16,797,425   $369,511,003    0.00%   0.00%   14.45%
2022   19.22    17,640,667    339,073,811    0.00%   0.00%   (16.88)%
2021   23.12    18,304,643    423,271,149    0.00%   0.00%   13.12%
2020   20.44    18,690,684    382,080,784    0.00%   0.00%   12.72%
2019   18.13    19,347,325    350,862,318    0.00%   0.00%   21.65%
Portfolio Optimization Growth Class P                              
2023  $12.75    284,185   $3,624,722    0.00%   0.00%   14.68%
2022   11.12    216,724    2,410,499    0.00%   0.00%   (16.71)%
2021   13.35    156,026    2,083,549    0.00%   0.00%   13.34%
01/27/2020 - 12/31/2020   11.78    83,963    989,233    0.00%   0.00%   13.10%
Portfolio Optimization Aggressive-Growth Class I                              
2023  $23.29    7,952,729   $185,185,622    0.00%   0.00%   15.96%
2022   20.08    8,455,306    169,788,261    0.00%   0.00%   (17.51)%
2021   24.34    8,557,598    208,308,101    0.00%   0.00%   15.68%
2020   21.04    8,901,060    187,292,082    0.00%   0.00%   12.46%
2019   18.71    9,136,572    170,953,835    0.00%   0.00%   23.76%
Portfolio Optimization Aggressive-Growth Class P                              
2023  $13.18    185,002   $2,437,600    0.00%   0.00%   16.19%
2022   11.34    161,878    1,835,667    0.00%   0.00%   (17.34)%
2021   13.72    61,019    837,098    0.00%   0.00%   15.92%
02/26/2020 - 12/31/2020   11.83    29,566    349,916    0.00%   0.00%   17.52%
Invesco V.I. Discovery Mid Cap Growth Series I (4)                              
01/20/2023 - 12/31/2023  $14.08    164   $2,316    0.00%   0.00%   11.66%
Invesco V.I. EQV International Equity Series I                              
2023  $13.00    177,592   $2,308,779    0.23%   0.00%   18.15%
2022   11.00    128,343    1,412,265    2.40%   0.00%   (18.31)%
2021   13.47    57,770    778,126    1.87%   0.00%   5.89%
2020   12.72    19,790    251,734    4.42%   0.00%   14.00%
12/31/2019 - 12/31/2019   11.16    190    2,126    0.00%   0.00%   0.00%
Invesco V.I. EQV International Equity Series II                              
2023  $18.53    1,729,410   $32,047,402    0.00%   0.00%   17.87%
2022   15.72    1,672,964    26,302,221    1.43%   0.00%   (18.50)%
2021   19.29    1,818,385    35,079,645    1.05%   0.00%   5.61%
2020   18.27    1,879,345    34,331,022    2.17%   0.00%   13.74%
2019   16.06    1,978,911    31,782,959    1.29%   0.00%   28.24%
Invesco V.I. Global Series I                              
2023  $15.70    152,651   $2,396,556    0.25%   0.00%   34.73%
2022   11.65    118,679    1,382,878    0.00%   0.00%   (31.76)%
2021   17.08    73,692    1,258,402    0.00%   0.00%   15.49%
01/23/2020 - 12/31/2020   14.79    16,937    250,437    1.16%   0.00%   23.57%
Invesco V.I. Global Series II                              
2023  $25.37    582,436   $14,775,312    0.00%   0.00%   34.45%
2022   18.87    750,722    14,165,128    0.00%   0.00%   (31.94)%
2021   27.72    751,836    20,842,448    0.00%   0.00%   15.17%
2020   24.07    708,959    17,064,953    0.45%   0.00%   27.34%
2019   18.90    736,252    13,917,335    0.65%   0.00%   31.45%

  

See Notes to Financial StatementsSA-67 See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT
FINANCIAL HIGHLIGHTS (Continued)
                         
   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Invesco V.I. Main Street Small Cap Fund Series I                              
2023  $16.46    749,753   $12,344,488    1.52%   0.00%   18.13%
2022   13.94    418,275    5,829,894    0.61%   0.00%   (15.83)%
2021   16.56    362,576    6,004,284    0.41%   0.00%   22.55%
2020   13.51    239,949    3,242,332    0.75%   0.00%   19.93%
2019   11.27    79,010    890,220    0.21%   0.00%   26.47%
American Century Inflation Protection Class I                              
2023  $10.48    2,805   $29,402    3.85%   0.00%   3.60%
11/22/2022 - 12/31/2022   10.12    1,670    16,897    0.00%   0.00%   0.21%
American Century VP Mid Cap Value Class I                              
2023  $15.06    136,941   $2,062,695    2.36%   0.00%   6.13%
2022   14.19    88,547    1,256,669    2.33%   0.00%   (1.19)%
2021   14.36    49,027    704,195    1.44%   0.00%   23.20%
2020   11.66    14,722    171,630    2.20%   0.00%   1.21%
12/31/2019 - 12/31/2019   11.52    148    1,700    0.00%   0.00%   0.00%
American Century VP Mid Cap Value Class II                              
2023  $31.53    1,329,129   $41,909,060    2.17%   0.00%   6.03%
2022   29.74    1,331,319    39,592,203    2.10%   0.00%   (1.38)%
2021   30.16    1,379,498    41,601,148    1.02%   0.00%   23.02%
2020   24.51    1,473,310    36,117,545    1.69%   0.00%   1.11%
2019   24.25    1,432,391    34,728,746    1.91%   0.00%   28.99%
American Funds IS American High-Income Trust Class 2                              
2023  $12.33    131,641   $1,622,483    8.04%   0.00%   12.45%
2022   10.96    78,552    860,941    9.35%   0.00%   (9.26)%
2021   12.08    46,952    567,145    7.96%   0.00%   8.42%
01/29/2020 - 12/31/2020   11.14    8,461    94,272    15.95%   0.00%   7.50%
American Funds IS Asset Allocation Class 2                              
2023  $13.97    1,969,867   $27,519,934    2.58%   0.00%   14.27%
2022   12.23    1,303,203    15,932,867    2.33%   0.00%   (13.40)%
2021   14.12    589,241    8,319,135    1.87%   0.00%   15.10%
2020   12.27    260,888    3,200,086    2.78%   0.00%   12.46%
12/27/2019 - 12/31/2019   10.91    1,674    18,254    0.00%   0.00%   (0.34)%
American Funds IS Asset Allocation Class 4                              
2023  $41.12    2,486,647   $102,257,160    2.07%   0.00%   14.02%
2022   36.06    2,360,923    85,146,160    1.65%   0.00%   (13.66)%
2021   41.77    2,503,361    104,569,774    1.38%   0.00%   14.84%
2020   36.37    2,408,347    87,599,605    1.50%   0.00%   12.16%
2019   32.43    2,317,682    75,162,694    1.85%   0.00%   20.93%
American Funds IS Capital World Bond Class 2                              
2023  $10.12    5,070   $51,304    0.00%   0.00%   6.14%
09/29/2022 - 12/31/2022   9.53    1,864    17,771    0.00%   0.00%   5.82%
American Funds IS Growth Class 2                              
2023  $20.86    909,490   $18,970,458    0.39%   0.00%   38.48%
2022   15.06    595,222    8,965,364    0.39%   0.00%   (29.94)%
2021   21.50    299,735    6,443,696    0.28%   0.00%   21.99%
2020   17.62    81,789    1,441,354    0.32%   0.00%   52.08%
12/20/2019 - 12/31/2019   11.59    1,103    12,782    0.00%   0.00%   0.19%
American Funds IS Growth Class 4                              
2023  $73.15    2,213,596   $161,926,443    0.18%   0.00%   38.14%
2022   52.96    2,278,326    120,649,493    0.11%   0.00%   (30.11)%
2021   75.77    2,259,531    171,213,804    0.06%   0.00%   21.68%
2020   62.27    2,196,682    136,790,246    0.21%   0.00%   51.71%
2019   41.05    2,277,276    93,471,721    0.57%   0.00%   30.44%
American Funds IS Growth-Income Class 2                              
2023  $16.67    746,541   $12,446,159    1.54%   0.00%   26.14%
2022   13.22    529,860    7,003,256    1.51%   0.00%   (16.49)%
2021   15.83    258,546    4,092,164    1.50%   0.00%   24.10%
2020   12.75    73,571    938,359    2.26%   0.00%   13.55%
12/20/2019 - 12/31/2019   11.23    284    3,195    0.00%   0.00%   0.06%

  

See Notes to Financial StatementsSA-68 See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT
FINANCIAL HIGHLIGHTS (Continued)
                         
   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
American Funds IS Growth-Income Class 4                              
2023  $49.59    2,552,068   $126,567,509    1.19%   0.00%   25.82%
2022   39.42    2,688,378    105,963,008    1.07%   0.00%   (16.71)%
2021   47.32    2,806,895    132,823,728    0.96%   0.00%   23.80%
2020   38.22    2,870,552    109,722,745    1.18%   0.00%   13.25%
2019   33.75    3,036,847    102,500,031    1.52%   0.00%   25.85%
American Funds IS International Class 2                              
2023  $11.71    242,680   $2,841,541    1.46%   0.00%   15.84%
2022   10.11    179,509    1,814,393    2.05%   0.00%   (20.79)%
2021   12.76    104,466    1,332,951    4.11%   0.00%   (1.50)%
01/16/2020 - 12/31/2020   12.95    28,182    365,051    1.02%   0.00%   12.03%
American Funds IS New World Fund Class 2                              
2023  $13.25    198,381   $2,628,449    1.55%   0.00%   16.00%
2022   11.42    165,458    1,889,934    1.55%   0.00%   (22.10)%
2021   14.66    87,538    1,283,493    1.22%   0.00%   4.92%
01/09/2020 - 12/31/2020   13.97    18,681    261,060    0.06%   0.00%   22.15%
BlackRock 60/40 Target Allocation ETF V.I. Class I                              
2023  $16.60    1,451,447   $24,094,543    2.25%   0.00%   15.62%
2022   14.36    1,356,591    19,478,331    2.37%   0.00%   (14.82)%
2021   16.86    998,968    16,839,818    2.37%   0.00%   11.99%
2020   15.05    667,393    10,045,689    2.47%   0.00%   14.67%
2019   13.13    250,553    3,288,960    3.81%   0.00%   21.41%
BlackRock Basic Value V.I. Class III                              
2023  $36.62    772,207   $28,276,186    1.56%   0.00%   16.24%
2022   31.50    760,358    23,952,268    1.19%   0.00%   (5.12)%
2021   33.20    762,559    25,319,078    1.12%   0.00%   21.34%
2020   27.36    780,279    21,351,585    2.08%   0.00%   3.13%
2019   26.53    778,206    20,648,537    2.19%   0.00%   23.53%
BlackRock Global Allocation V.I. Class I                              
2023  $13.28    459,608   $6,104,929    4.34%   0.00%   12.83%
2022   11.77    184,286    2,169,541    0.00%   0.00%   (15.86)%
2021   13.99    117,014    1,637,201    1.26%   0.00%   6.67%
01/15/2020 - 12/31/2020   13.12    36,869    483,578    2.96%   0.00%   19.54%
BlackRock Global Allocation V.I. Class III                              
2023  $30.18    2,331,554   $70,357,907    2.55%   0.00%   12.49%
2022   26.83    2,437,935    65,399,810    0.00%   0.00%   (16.07)%
2021   31.96    2,478,104    79,209,321    0.83%   0.00%   6.42%
2020   30.04    2,468,204    74,136,590    1.32%   0.00%   20.71%
2019   24.88    2,562,814    63,772,435    1.27%   0.00%   17.75%
BNY Mellon VIF Appreciation Service Shares                              
2023  $30.86    166,470   $5,136,595    0.50%   0.00%   20.67%
2022   25.57    112,125    2,867,155    0.44%   0.00%   (18.25)%
2021   31.28    108,442    3,392,171    0.17%   0.00%   26.77%
2020   24.68    70,603    1,742,139    0.55%   0.00%   23.38%
2019   20.00    58,055    1,161,046    0.89%   0.00%   35.78%
DFA VA International Small Institutional Class                              
2023  $14.07    403,074   $5,672,547    4.08%   0.00%   14.11%
2022   12.33    211,639    2,610,131    3.57%   0.00%   (17.64)%
01/29/2021 - 12/31/2021   14.98    97,424    1,458,929    7.79%   0.00%   15.35%
DFA VA International Value Institutional Class                              
2023  $15.28    191,361   $2,924,414    5.93%   0.00%   17.86%
2022   12.97    131,227    1,701,550    6.38%   0.00%   (3.46)%
2021   13.43    46,329    622,237    9.18%   0.00%   18.11%
2020   11.37    7,478    85,032    5.67%   0.00%   (1.76)%
12/20/2019 - 12/31/2019   11.58    11    128    0.00%   0.00%   0.33%
DFA VA Short-Term Fixed Institutional Class                              
2023  $10.36    764,419   $7,917,948    5.04%   0.00%   4.98%
2022   9.87    335,692    3,312,153    2.07%   0.00%   (1.16)%
01/29/2021 - 12/31/2021   9.98    93,975    938,063    0.01%   0.00%   (0.19)%

  

See Notes to Financial StatementsSA-69 See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT
FINANCIAL HIGHLIGHTS (Continued)
                         
   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
DFA VA US Large Value Institutional Class                              
2023  $15.49    411,314   $6,369,572    2.92%   0.00%   10.92%
2022   13.96    232,418    3,244,814    3.38%   0.00%   (4.88)%
2021   14.68    94,470    1,386,553    3.49%   0.00%   27.04%
01/29/2020 - 12/31/2020   11.55    21,979    253,935    5.63%   0.00%   1.40%
DFA VA US Targeted Value Institutional Class                              
2023  $19.86    207,218   $4,114,359    1.94%   0.00%   20.03%
2022   16.54    124,298    2,056,079    1.77%   0.00%   (4.21)%
2021   17.27    54,375    939,001    3.19%   0.00%   39.68%
03/30/2020 - 12/31/2020   12.36    10,798    133,495    5.08%   0.00%   72.00%
Fidelity VIP Bond Index Initial Class                              
2023  $9.07    2,600,870   $23,584,148    3.32%   0.00%   5.47%
2022   8.60    865,735    7,442,956    2.04%   0.00%   (13.19)%
01/29/2021 - 12/31/2021   9.90    284,249    2,815,077    2.23%   0.00%   (1.17)%
Fidelity VIP Bond Index Service Class 2                              
2023  $9.50    480,781   $4,569,014    2.85%   0.00%   5.13%
2022   9.04    209,800    1,896,545    1.70%   0.00%   (13.38)%
2021   10.44    119,613    1,248,288    1.32%   0.00%   (2.24)%
01/09/2020 - 12/31/2020   10.68    25,461    271,803    2.35%   0.00%   6.96%
Fidelity VIP Contrafund Initial Class                              
2023  $18.30    143,092   $2,618,170    0.60%   0.00%   33.45%
2022   13.71    98,396    1,349,090    0.65%   0.00%   (26.31)%
2021   18.61    45,407    844,882    0.04%   0.00%   27.83%
2020   14.56    20,132    293,026    0.23%   0.00%   30.57%
12/20/2019 - 12/31/2019   11.15    574    6,394    0.00%   0.00%   0.19%
Fidelity VIP Contrafund Service Class 2                              
2023  $58.98    1,497,423   $88,320,054    0.26%   0.00%   33.12%
2022   44.31    1,557,366    69,004,186    0.28%   0.00%   (26.49)%
2021   60.27    1,520,612    91,652,321    0.03%   0.00%   27.51%
2020   47.27    1,595,287    75,408,138    0.08%   0.00%   30.23%
2019   36.30    1,714,933    62,244,855    0.22%   0.00%   31.27%
Fidelity VIP Freedom 2010 Portfolio Service Class 2                              
2023  $19.80    56,249   $1,113,788    3.76%   0.00%   9.08%
2022   18.15    52,410    951,351    1.77%   0.00%   (13.66)%
2021   21.02    97,086    2,041,178    0.97%   0.00%   5.60%
2020   19.91    93,137    1,854,381    1.03%   0.00%   12.24%
2019   17.74    88,951    1,577,897    1.91%   0.00%   15.75%
Fidelity VIP Freedom 2015 Portfolio Service Class 2                              
2023  $20.82    128,616   $2,677,845    3.43%   0.00%   10.64%
2022   18.82    129,749    2,441,616    1.91%   0.00%   (14.79)%
2021   22.08    131,337    2,900,423    0.87%   0.00%   7.39%
2020   20.56    132,576    2,726,252    1.07%   0.00%   13.56%
2019   18.11    132,674    2,402,373    1.88%   0.00%   17.97%
Fidelity VIP Freedom 2020 Portfolio Service Class 2                              
2023  $21.36    261,833   $5,592,385    2.94%   0.00%   12.22%
2022   19.03    299,268    5,695,812    1.89%   0.00%   (15.97)%
2021   22.65    304,488    6,896,377    0.84%   0.00%   9.26%
2020   20.73    340,986    7,068,269    0.96%   0.00%   14.72%
2019   18.07    446,994    8,076,758    1.76%   0.00%   19.88%
Fidelity VIP Freedom 2025 Portfolio Initial Class                              
2023  $12.39    21,355   $264,574    3.28%   0.00%   13.62%
2022   10.90    7,488    81,656    2.48%   0.00%   (16.43)%
11/03/2021 - 12/31/2021   13.05    1,589    20,733    6.30%   0.00%   0.01%
Fidelity VIP Freedom 2025 Portfolio Service Class 2                              
2023  $23.04    611,331   $14,083,495    2.58%   0.00%   13.32%
2022   20.33    651,209    13,238,328    1.82%   0.00%   (16.64)%
2021   24.39    652,495    15,911,937    0.84%   0.00%   10.55%
2020   22.06    651,352    14,368,350    0.99%   0.00%   15.68%
2019   19.07    699,574    13,340,689    1.98%   0.00%   21.51%

 

See Notes to Financial StatementsSA-70 See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT
FINANCIAL HIGHLIGHTS (Continued)
                         
   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Fidelity VIP Freedom 2030 Portfolio Initial Class                        
2023  $13.73    46,512   $638,772    2.40%   0.00%   14.70%
2022   11.97    38,054    455,648    1.97%   0.00%   (16.87)%
2021   14.40    25,911    373,220    1.34%   0.00%   12.37%
01/28/2020 - 12/31/2020   12.82    8,184    104,900    1.35%   0.00%   16.05%
Fidelity VIP Freedom 2030 Portfolio Service Class 2                              
2023  $23.60    669,645   $15,803,361    2.26%   0.00%   14.46%
2022   20.62    679,338    14,007,077    1.73%   0.00%   (17.09)%
2021   24.87    767,355    19,082,254    0.92%   0.00%   12.07%
2020   22.19    676,116    15,002,539    0.99%   0.00%   16.64%
2019   19.02    705,639    13,423,558    1.88%   0.00%   24.11%
Fidelity VIP Freedom 2035 Portfolio Initial Class                              
2023  $14.68    279,164   $4,096,847    2.23%   0.00%   16.85%
2022   12.56    182,222    2,288,577    2.76%   0.00%   (17.69)%
2021   15.26    48,239    736,083    1.57%   0.00%   15.46%
02/10/2020 - 12/31/2020   13.22    14,876    196,612    2.74%   0.00%   16.38%
Fidelity VIP Freedom 2035 Portfolio Service Class 2                              
2023  $26.51    626,574   $16,609,492    1.77%   0.00%   16.53%
2022   22.75    623,923    14,193,324    1.53%   0.00%   (17.89)%
2021   27.70    588,023    16,290,796    0.80%   0.00%   15.18%
2020   24.05    587,688    14,136,214    0.91%   0.00%   17.96%
2019   20.39    564,887    11,519,396    1.74%   0.00%   27.13%
Fidelity VIP Freedom 2045 Portfolio Initial Class                              
2023  $15.47    295,867   $4,577,693    1.82%   0.00%   19.46%
2022   12.95    159,552    2,066,404    2.00%   0.00%   (18.25)%
2021   15.84    71,119    1,126,727    1.56%   0.00%   17.83%
01/21/2020 - 12/31/2020   13.45    10,512    141,337    2.46%   0.00%   16.84%
Fidelity VIP Freedom 2045 Portfolio Service Class 2                              
2023  $28.12    647,351   $18,202,542    1.31%   0.00%   19.18%
2022   23.59    605,979    14,296,942    1.45%   0.00%   (18.45)%
2021   28.93    516,728    14,949,963    0.70%   0.00%   17.53%
2020   24.62    509,138    12,533,196    0.79%   0.00%   18.97%
2019   20.69    493,443    10,210,423    1.70%   0.00%   28.25%
Fidelity VIP Freedom 2055 Portfolio Initial Class                              
2023  $11.38    1,217   $13,843    1.98%   0.00%   19.48%
09/29/2022 - 12/31/2022   9.52    531    5,057    7.92%   0.00%   10.02%
Fidelity VIP Freedom Income Portfolio Initial Class                              
2023  $11.14    24,160   $269,215    4.21%   0.00%   7.91%
2022   10.33    18,902    195,180    2.30%   0.00%   (12.05)%
2021   11.74    14,195    166,648    1.27%   0.00%   3.35%
01/15/2020 - 12/31/2020   11.36    5,783    65,689    2.24%   0.00%   9.55%
Fidelity VIP Freedom Income Portfolio Service Class 2                              
2023  $16.98    115,269   $1,956,864    3.51%   0.00%   7.65%
2022   15.77    147,446    2,325,271    1.99%   0.00%   (12.26)%
2021   17.97    148,323    2,665,951    0.82%   0.00%   3.03%
2020   17.45    156,764    2,734,872    1.20%   0.00%   10.29%
2019   15.82    91,392    1,445,712    1.85%   0.00%   11.63%
Fidelity VIP Government Money Market Service Class                              
2023  $11.10    25,857,232   $287,113,511    4.69%   0.00%   4.80%
2022   10.60    28,088,730    297,603,125    1.43%   0.00%   1.36%
2021   10.45    18,385,177    192,174,551    0.01%   0.00%   0.01%
2020   10.45    22,555,301    235,739,053    0.23%   0.00%   0.28%
2019   10.42    15,544,800    162,012,845    1.89%   0.00%   1.92%
Fidelity VIP Growth Initial Class                              
2023  $16.45    11,788   $193,873    0.16%   0.00%   36.24%
02/23/2022 - 12/31/2022   12.07    4,378    52,849    0.42%   0.00%   (10.71)%
Fidelity VIP Growth Service Class 2                              
2023  $72.44    812,465   $58,856,085    0.00%   0.00%   35.89%
2022   53.31    633,394    33,765,959    0.32%   0.00%   (24.64)%
2021   70.74    485,699    34,360,111    0.00%   0.00%   22.90%
2020   57.56    407,079    23,431,734    0.03%   0.00%   43.55%
2019   40.10    282,546    11,329,627    0.05%   0.00%   33.98%

  

See Notes to Financial StatementsSA-71 See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT
FINANCIAL HIGHLIGHTS (Continued)
                         
   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Fidelity VIP International Index Initial Class                              
2023  $13.11    1,776,787   $23,286,420    3.55%   0.00%   16.16%
2022   11.28    830,276    9,367,983    2.97%   0.00%   (16.02)%
01/08/2021 - 12/31/2021   13.43    330,515    4,440,463    7.07%   0.00%   3.92%
Fidelity VIP International Index Service Class 2                              
2023  $13.11    313,608   $4,112,784    3.02%   0.00%   15.88%
2022   11.32    151,323    1,712,573    2.90%   0.00%   (16.21)%
2021   13.51    64,244    867,740    4.17%   0.00%   7.48%
2020   12.57    15,287    192,121    2.38%   0.00%   10.34%
12/13/2019 - 12/31/2019   11.39    253    2,878    0.00%   0.00%   1.52%
Fidelity VIP Mid Cap Initial Class                              
2023  $16.48    254,882   $4,199,230    0.74%   0.00%   15.08%
2022   14.32    169,146    2,421,640    0.64%   0.00%   (14.74)%
2021   16.79    102,531    1,721,770    0.94%   0.00%   25.60%
01/09/2020 - 12/31/2020   13.37    41,645    556,783    0.81%   0.00%   18.23%
Fidelity VIP Mid Cap Service Class 2                              
2023  $48.23    920,151   $44,375,095    0.40%   0.00%   14.80%
2022   42.01    906,703    38,088,746    0.27%   0.00%   (14.97)%
2021   49.40    914,255    45,165,901    0.37%   0.00%   25.31%
2020   39.42    961,905    37,923,043    0.40%   0.00%   17.87%
2019   33.45    948,657    31,731,256    0.68%   0.00%   23.17%
Fidelity VIP Total Market Index Initial Class                              
2023  $16.49    3,874,765   $63,893,396    1.25%   0.00%   26.07%
2022   13.08    2,543,208    33,264,322    1.89%   0.00%   (19.22)%
01/08/2021 - 12/31/2021   16.19    889,753    14,406,226    3.73%   0.00%   22.81%
Fidelity VIP Total Market Index Service Class 2                              
2023  $17.36    386,367   $6,706,432    1.01%   0.00%   25.71%
2022   13.81    226,084    3,121,803    1.37%   0.00%   (19.41)%
2021   17.13    130,356    2,233,548    1.50%   0.00%   25.38%
01/07/2020 - 12/31/2020   13.67    20,080    274,414    3.14%   0.00%   19.77%
Fidelity VIP Value Strategies Service Class 2                              
2023  $44.84    286,340   $12,838,436    0.88%   0.00%   20.61%
2022   37.18    328,243    12,202,623    0.93%   0.00%   (7.35)%
2021   40.12    293,299    11,768,353    1.33%   0.00%   33.34%
2020   30.09    221,860    6,676,066    1.08%   0.00%   8.02%
2019   27.86    210,186    5,855,139    1.48%   0.00%   34.10%
Templeton Foreign VIP Class 1                              
2023  $13.27    67,727   $899,065    3.29%   0.00%   21.09%
2022   10.96    56,077    614,757    3.26%   0.00%   (7.39)%
2021   11.84    35,569    421,025    1.77%   0.00%   4.44%
01/27/2020 - 12/31/2020   11.33    13,918    157,744    3.16%   0.00%   1.95%
Templeton Foreign VIP Class 2                              
2023  $15.33    1,263,062   $19,364,503    3.22%   0.00%   20.76%
2022   12.70    1,400,234    17,777,563    3.02%   0.00%   (7.61)%
2021   13.74    1,686,933    23,180,484    1.88%   0.00%   4.16%
2020   13.19    1,726,026    22,770,787    3.38%   0.00%   (1.16)%
2019   13.35    1,551,281    20,705,105    1.73%   0.00%   12.53%
Templeton Global Bond VIP Class 1                              
2023  $9.01    57,537   $518,647    0.00%   0.00%   3.19%
2022   8.74    36,762    321,127    0.00%   0.00%   (4.85)%
2021   9.18    23,537    216,072    0.00%   0.00%   (4.62)%
2020   9.63    9,809    94,414    7.63%   0.00%   (5.07)%
12/13/2019 - 12/31/2019   10.14    284    2,880    0.00%   0.00%   1.58%
Templeton Global Bond VIP Class 2                              
2023  $11.39    1,937,934   $22,070,300    0.00%   0.00%   2.88%
2022   11.07    1,969,071    21,796,156    0.00%   0.00%   (4.95)%
2021   11.65    2,172,036    25,295,073    0.00%   0.00%   (4.99)%
2020   12.26    2,329,588    28,555,604    8.34%   0.00%   (5.28)%
2019   12.94    3,215,145    41,607,808    7.09%   0.00%   2.01%
Goldman Sachs VIT Multi-Strategy Alternatives Institutional Shares (4)                              
03/06/2023 - 12/31/2023  $10.21    5,008   $51,157    8.26%   0.00%   6.10%

  

See Notes to Financial StatementsSA-72 See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT
FINANCIAL HIGHLIGHTS (Continued)
                         
   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Janus Henderson Enterprise Institutional Shares                              
2023  $15.11    55,021   $831,125    0.20%   0.00%   18.07%
2022   12.79    36,682    469,295    0.19%   0.00%   (15.94)%
2021   15.22    16,513    251,331    0.28%   0.00%   16.83%
2020   13.03    7,943    103,470    0.06%   0.00%   19.47%
12/31/2019 - 12/31/2019   10.90    195    2,126    0.00%   0.00%   0.95%
Janus Henderson Enterprise Service Shares                              
2023  $52.34    612,801   $32,074,257    0.08%   0.00%   17.78%
2022   44.44    722,444    32,106,111    0.08%   0.00%   (16.15)%
2021   53.00    748,043    39,646,452    0.24%   0.00%   16.54%
2020   45.48    826,116    37,569,643    0.00%   0.00%   19.18%
2019   38.16    888,143    33,889,504    0.05%   0.00%   35.16%
Janus Henderson Overseas Institutional Shares                              
2023  $16.01    80,459   $1,287,869    1.66%   0.00%   10.87%
2022   14.44    43,658    630,271    1.93%   0.00%   (8.60)%
2021   15.80    33,503    529,214    2.46%   0.00%   13.58%
02/28/2020 - 12/31/2020   13.91    1,548    21,529    2.22%   0.00%   29.70%
Janus Henderson Overseas Service Shares                              
2023  $15.61    1,739,316   $27,154,051    1.44%   0.00%   10.58%
2022   14.12    1,769,088    24,975,436    1.69%   0.00%   (8.84)%
2021   15.49    1,798,949    27,858,471    1.10%   0.00%   13.29%
2020   13.67    1,354,016    18,508,941    1.22%   0.00%   16.02%
2019   11.78    1,412,667    16,643,856    1.84%   0.00%   26.71%
Lazard Retirement Global Dynamic Multi-Asset Investor Shares                              
2023  $11.22    25,889   $290,382    0.00%   0.00%   11.06%
2022   10.10    24,562    248,052    0.24%   0.00%   (17.28)%
03/16/2021 - 12/31/2021   12.21    20,914    255,342    4.24%   0.00%   11.09%
Lazard Retirement Global Dynamic Multi-Asset Service Shares                              
2023  $14.35    99,866   $1,432,685    0.00%   0.00%   10.81%
2022   12.95    105,258    1,362,686    0.08%   0.00%   (17.38)%
2021   15.67    107,169    1,679,197    2.75%   0.00%   11.94%
2020   14.00    107,429    1,503,771    0.61%   0.00%   0.81%
2019   13.89    106,485    1,478,601    0.05%   0.00%   17.79%
Lazard Retirement International Equity Service Shares                              
2023  $11.84    223,556   $2,646,945    1.30%   0.00%   15.88%
2022   10.22    221,020    2,258,317    3.82%   0.00%   (15.01)%
2021   12.02    180,005    2,164,035    0.99%   0.00%   5.83%
2020   11.36    153,907    1,748,302    2.40%   0.00%   8.24%
2019   10.49    100,044    1,049,940    0.40%   0.00%   21.00%
ClearBridge Variable Aggressive Growth - Class I                              
2023  $13.59    27,080   $368,072    0.31%   0.00%   24.42%
2022   10.92    24,976    272,831    0.52%   0.00%   (26.41)%
2021   14.84    9,297    138,013    0.16%   0.00%   10.30%
01/21/2020 - 12/31/2020   13.46    3,395    45,692    2.65%   0.00%   14.99%
ClearBridge Variable Aggressive Growth - Class II                              
2023  $31.99    776,847   $24,852,016    0.07%   0.00%   24.13%
2022   25.77    783,592    20,194,583    0.00%   0.00%   (26.59)%
2021   35.10    750,617    26,350,350    0.17%   0.00%   10.04%
2020   31.90    768,784    24,525,441    0.59%   0.00%   17.73%
2019   27.10    831,329    22,526,620    0.78%   0.00%   24.75%
ClearBridge Variable Mid-Cap - Class I                              
2023  $14.02    144,206   $2,021,493    0.14%   0.00%   12.92%
2022   12.41    127,333    1,580,762    0.49%   0.00%   (25.31)%
2021   16.62    52,664    875,379    0.02%   0.00%   28.71%
01/07/2020 - 12/31/2020   12.91    5,857    75,643    0.59%   0.00%   15.05%
ClearBridge Variable Mid Cap - Class II                              
2023  $31.31    426,162   $13,344,738    0.02%   0.00%   12.62%
2022   27.81    452,756    12,588,974    0.10%   0.00%   (25.50)%
2021   37.32    452,923    16,904,958    0.03%   0.00%   28.39%
2020   29.07    489,764    14,238,324    0.03%   0.00%   15.10%
2019   25.26    805,291    20,339,440    0.36%   0.00%   32.65%

 

See Notes to Financial StatementsSA-73 See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

FINANCIAL HIGHLIGHTS (Continued) 

 

   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
ClearBridge Variable Small Cap Growth - Class I                              
2023  $14.57    115,008   $1,675,731    0.00%   0.00%   8.40%
2022   13.44    58,177    781,961    0.00%   0.00%   (28.85)%
05/20/2021 - 12/31/2021   18.89    22,077    417,031    0.00%   0.00%   6.78%
Western Asset Variable Global High Yield Bond - Class I                               
2023  $10.61    52,705   $559,065    11.20%   0.00%   10.26%
09/01/2022 - 12/31/2022   9.62    752    7,237    See Note (5)    0.00%   1.17%
Western Asset Variable Global High Yield Bond - Class II                              
2023  $12.74    53,262   $678,524    4.86%   0.00%   9.96%
2022   11.59    63,180    731,994    6.77%   0.00%   (13.87)%
2021   13.45    59,194    796,217    4.69%   0.00%   1.04%
2020   13.31    51,140    680,779    4.58%   0.00%   7.12%
2019   12.43    40,942    508,800    5.07%   0.00%   14.01%
Lord Abbett Bond Debenture Class VC                              
2023  $13.66    1,856,434   $25,364,737    5.54%   0.00%   6.55%
2022   12.82    1,647,692    21,128,277    4.62%   0.00%   (12.80)%
2021   14.71    1,714,906    25,218,575    3.18%   0.00%   3.28%
2020   14.24    1,615,840    23,007,706    4.09%   0.00%   7.30%
2019   13.27    1,428,573    18,956,660    4.33%   0.00%   13.35%
Lord Abbett Developing Growth Class VC                              
2023  $30.13    423,997   $12,774,278    0.00%   0.00%   8.17%
2022   27.85    473,624    13,191,514    0.00%   0.00%   (35.98)%
2021   43.51    541,014    23,538,126    0.00%   0.00%   (2.75)%
2020   44.74    994,259    44,479,268    0.00%   0.00%   72.60%
2019   25.92    952,892    24,698,255    0.00%   0.00%   31.77%
Lord Abbett Fundamental Equity Class VC                              
2023  $30.07    229,035   $6,886,937    0.59%   0.00%   14.63%
2022   26.23    237,945    6,241,468    1.10%   0.00%   (11.98)%
2021   29.80    243,177    7,247,089    0.87%   0.00%   27.31%
2020   23.41    249,608    5,842,896    1.27%   0.00%   1.77%
2019   23.00    283,051    6,510,284    1.27%   0.00%   21.51%
Lord Abbett Total Return Class VC                              
2023  $11.67    7,262,675   $84,723,479    4.57%   0.00%   6.34%
2022   10.97    7,200,099    78,988,980    3.27%   0.00%   (14.05)%
2021   12.76    5,425,740    69,251,584    2.08%   0.00%   (0.24)%
2020   12.79    4,694,892    60,070,342    2.44%   0.00%   7.43%
2019   11.91    4,631,369    55,161,023    2.83%   0.00%   8.41%
M Capital Appreciation                              
2023  $148.37    552,842   $82,025,733    0.46%   0.00%   23.56%
2022   120.08    538,829    64,703,779    0.00%   0.00%   (18.14)%
2021   146.69    537,901    78,904,888    0.00%   0.00%   17.74%
2020   124.59    566,253    70,550,131    0.00%   0.00%   17.73%
2019   105.83    573,228    60,664,838    0.33%   0.00%   28.85%
M International Equity                              
2023  $45.94    1,946,177   $89,413,718    3.18%   0.00%   16.00%
2022   39.60    1,854,090    73,430,733    2.72%   0.00%   (14.16)%
2021   46.14    1,894,291    87,396,067    2.48%   0.00%   11.05%
2020   41.55    1,853,817    77,020,686    1.81%   0.00%   8.90%
2019   38.15    1,757,542    67,054,924    2.95%   0.00%   20.32%
M Large Cap Growth                              
2023  $124.32    667,817   $83,023,210    0.00%   0.00%   32.04%
2022   94.16    677,928    63,830,638    0.00%   0.00%   (25.41)%
2021   126.23    672,284    84,862,759    0.00%   0.00%   21.49%
2020   103.90    682,386    70,898,715    0.00%   0.00%   28.89%
2019   80.61    770,602    62,116,514    0.00%   0.00%   36.09%
M Large Cap Value                              
2023  $44.71    966,442   $43,205,538    2.22%   0.00%   7.60%
2022   41.55    992,337    41,227,881    2.06%   0.00%   (1.45)%
2021   42.16    986,020    41,568,299    1.70%   0.00%   30.01%
2020   32.43    891,099    28,895,941    2.08%   0.00%   (3.16)%
2019   33.49    863,778    28,924,514    1.73%   0.00%   21.52%

 

See Notes to Financial StatementsSA-74See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

FINANCIAL HIGHLIGHTS (Continued) 

 

   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
MFS New Discovery Series - Initial Class                               
2023  $13.48    142,599   $1,922,741    0.00%   0.00%   14.41%
2022   11.79    116,661    1,374,861    0.00%   0.00%   (29.76)%
2021   16.78    77,203    1,295,288    0.00%   0.00%   1.80%
2020   16.48    21,541    355,012    0.00%   0.00%   45.89%
12/13/2019 - 12/31/2019   11.30    385    4,353    0.00%   0.00%   2.37%
MFS New Discovery Series - Service Class                              
2023  $39.84    570,731   $22,740,719    0.00%   0.00%   14.25%
2022   34.87    583,823    20,360,331    0.00%   0.00%   (29.99)%
2021   49.82    667,183    33,236,695    0.00%   0.00%   1.57%
2020   49.05    606,632    29,752,274    0.00%   0.00%   45.58%
2019   33.69    876,290    29,521,030    0.00%   0.00%   41.27%
MFS Total Return Series - Initial Class                              
2023  $13.54    96,669   $1,308,497    2.07%   0.00%   10.44%
2022   12.26    82,080    1,005,966    1.91%   0.00%   (9.58)%
2021   13.55    57,707    782,213    1.50%   0.00%   14.12%
01/08/2020 - 12/31/2020   11.88    22,457    266,752    3.11%   0.00%   9.59%
MFS Utilities Series - Initial Class                              
2023  $12.79    10,104   $129,255    3.57%   0.00%   (2.11)%
2022   13.07    6,896    90,123    3.03%   0.00%   0.76%
2021   12.97    3,153    40,899    1.66%   0.00%   14.09%
02/24/2020 - 12/31/2020   11.37    1,839    20,910    3.15%   0.00%   0.39%
MFS Utilities Series - Service Class                              
2023  $27.44    508,647   $13,957,580    3.24%   0.00%   (2.33)%
2022   28.10    579,708    16,287,049    2.24%   0.00%   0.48%
2021   27.96    557,262    15,581,825    1.53%   0.00%   13.82%
2020   24.57    558,416    13,717,885    2.18%   0.00%   5.62%
2019   23.26    599,411    13,941,187    3.80%   0.00%   24.80%
MFS Value Series - Initial Class                               
2023  $14.84    380,150   $5,640,992    1.72%   0.00%   7.93%
2022   13.75    267,243    3,674,149    1.51%   0.00%   (5.91)%
2021   14.61    164,655    2,405,870    1.84%   0.00%   25.45%
2020   11.65    36,938    430,224    1.74%   0.00%   3.48%
12/13/2019 - 12/31/2019   11.26    384    4,323    0.00%   0.00%   1.65%
MFS Value Series - Service Class                              
2023  $19.67    1,540,197   $30,291,187    1.44%   0.00%   7.63%
2022   18.27    1,531,545    27,984,916    1.16%   0.00%   (6.14)%
2021   19.47    1,734,171    33,761,284    1.14%   0.00%   25.16%
2020   15.56    1,750,462    27,228,478    1.31%   0.00%   3.22%
2019   15.07    1,517,487    22,867,919    2.00%   0.00%   29.51%
MFS Government Securities - Initial Class                              
2023  $9.03    7,306   $65,975    2.18%   0.00%   4.15%
2022   8.67    40    348    0.17%   0.00%   (12.26)%
05/19/2021 - 12/31/2021   9.88    3,691    36,471    3.60%   0.00%   0.38%
MFS Research International - Initial Class                               
2023  $13.99    5,534   $77,423    1.14%   0.00%   13.01%
09/29/2022 - 12/31/2022   12.38    3,014    37,313    0.00%   0.00%   15.27%
MFS Blended Research Small Cap Equity - Initial Class                               
2023  $17.63    2,321   $40,927    1.01%   0.00%   18.96%
02/23/2022 - 12/31/2022   14.82    393    5,832    0.40%   0.00%   (10.17)%
MFS Global Real Estate - Initial Class                              
2023  $13.39    2,915   $39,029    0.91%   0.00%   11.46%
11/22/2022 - 12/31/2022   12.01    1,925    23,126    0.00%   0.00%   (1.92)%
Neuberger Berman Sustainable Equity Class I                              
2023  $31.29    73,693   $2,305,992    0.35%   0.00%   26.90%
2022   24.66    61,513    1,516,850    0.42%   0.00%   (18.45)%
2021   30.24    70,149    2,121,192    0.39%   0.00%   23.48%
2020   24.49    31,392    768,762    0.65%   0.00%   19.56%
2019   20.48    28,899    591,916    0.39%   0.00%   25.88%
PIMCO CommodityRealReturn Strategy - Institutional Class                              
2023  $18.54    888   $16,464    17.71%   0.00%   (7.74)%
12/20/2022 - 12/31/2022   20.09    382    7,670    0.00%   0.00%   0.88%

 

See Notes to Financial StatementsSA-75See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

FINANCIAL HIGHLIGHTS (Continued) 

 

   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
PIMCO Global Managed Asset Allocation - Advisor Class                              
2023  $15.13    445,261   $6,736,285    2.22%   0.00%   12.85%
2022   13.41    449,370    6,024,403    1.92%   0.00%   (18.40)%
2021   16.43    458,217    7,527,894    2.34%   0.00%   12.60%
2020   14.59    500,806    7,306,765    7.86%   0.00%   16.71%
2019   12.50    544,179    6,802,653    2.08%   0.00%   16.96%
PIMCO Global Managed Asset Allocation - Institutional Class                              
2023  $13.14    13,757   $180,783    2.60%   0.00%   13.12%
2022   11.62    12,066    140,165    2.28%   0.00%   (18.17)%
2021   14.20    8,956    127,149    2.17%   0.00%   12.77%
03/31/2020 - 12/31/2020   12.59    1,244    15,665    5.99%   0.00%   35.99%
PIMCO Income - Administrative Class                              
2023  $11.91    914,741   $10,892,700    5.18%   0.00%   8.27%
2022   11.00    1,261,667    13,876,684    3.93%   0.00%   (7.69)%
2021   11.92    481,383    5,735,954    2.90%   0.00%   2.00%
2020   11.68    365,721    4,272,481    4.62%   0.00%   6.52%
2019   10.97    281,310    3,085,100    3.52%   0.00%   8.58%
Royce Micro-Cap Service Class                              
2023  $22.04    174,245   $3,840,272    0.00%   0.00%   18.56%
2022   18.59    184,500    3,429,781    0.00%   0.00%   (22.65)%
2021   24.03    287,104    6,900,010    0.00%   0.00%   29.52%
2020   18.56    154,444    2,865,750    0.00%   0.00%   23.55%
2019   15.02    150,104    2,254,252    0.00%   0.00%   19.24%
State Street Total Return V.I.S. Class 3                              
2023  $20.83    126,157   $2,628,273    2.19%   0.00%   15.21%
2022   18.08    119,929    2,168,740    0.42%   0.00%   (16.72)%
2021   21.71    117,021    2,540,981    1.89%   0.00%   13.20%
2020   19.18    112,832    2,164,302    1.73%   0.00%   6.14%
2019   18.07    114,403    2,067,528    3.28%   0.00%   15.57%
T. Rowe Price Blue Chip Growth - I                              
2023  $16.04    831,469   $13,334,601    0.00%   0.00%   49.29%
2022   10.74    608,082    6,532,340    0.00%   0.00%   (38.50)%
2021   17.47    358,337    6,259,460    0.00%   0.00%   17.62%
2020   14.85    133,197    1,978,125    0.00%   0.00%   34.28%
12/05/2019 - 12/31/2019   11.06    679    7,511    0.00%   0.00%   3.72%
T. Rowe Price Blue Chip Growth - II                              
2023  $65.25    2,582,644   $168,505,529    0.00%   0.00%   48.96%
2022   43.80    2,692,089    117,917,811    0.00%   0.00%   (38.66)%
2021   71.41    2,701,478    192,915,011    0.00%   0.00%   17.33%
2020   60.86    2,952,258    179,684,418    0.00%   0.00%   33.92%
2019   45.45    3,267,610    148,508,466    0.00%   0.00%   29.58%
T. Rowe Price Equity Income - I                              
2023  $15.32    399,596   $6,121,111    2.21%   0.00%   9.54%
2022   13.98    249,279    3,485,947    2.03%   0.00%   (3.34)%
2021   14.47    158,982    2,300,096    1.73%   0.00%   25.55%
2020   11.52    72,266    832,759    2.91%   0.00%   1.18%
12/05/2019 - 12/31/2019   11.39    519    5,907    13.99%   0.00%   3.75%
T. Rowe Price Equity Income - II                              
2023  $35.91    2,687,628   $96,515,738    1.89%   0.00%   9.31%
2022   32.85    2,775,532    91,180,905    1.67%   0.00%   (3.59)%
2021   34.07    2,808,577    95,697,910    1.38%   0.00%   25.22%
2020   27.21    3,012,637    81,979,353    2.10%   0.00%   0.96%
2019   26.95    3,107,815    83,767,750    2.11%   0.00%   26.04%
VanEck VIP Global Resources Initial Class                              
2023  $24.56    1,154,516   $28,351,258    2.83%   0.00%   (3.58)%
2022   25.47    1,219,933    31,071,404    1.62%   0.00%   8.39%
2021   23.50    1,360,277    31,963,053    0.43%   0.00%   18.92%
2020   19.76    1,360,028    26,873,203    0.95%   0.00%   19.11%
2019   16.59    1,438,768    23,867,490    0.00%   0.00%   11.87%
Vanguard VIF Global Bond Index (4)                              
05/17/2023 - 12/31/2023  $10.27    26,827   $275,531    0.00%   0.00%   3.39%

 

See Notes to Financial StatementsSA-76See explanation of references on page SA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

FINANCIAL HIGHLIGHTS (Continued)   

 

   At the End of Each Year or Period             
Variable Accounts      Units   Net   Investment   Expense   Total 
For Each Year or Period  AUV   Outstanding   Assets   Income Ratios (1)   Ratios (2)   Returns (3) 
Vanguard VIF High Yield Bond                              
2023  $11.42    478,424   $5,464,440    3.68%   0.00%   11.67%
2022   10.23    251,818    2,575,713    4.12%   0.00%   (9.36)%
01/13/2021 - 12/31/2021   11.29    114,453    1,291,612    0.14%   0.00%   3.81%
Vanguard VIF Mid-Cap Index                              
2023  $14.60    2,281,602   $33,302,127    1.15%   0.00%   15.83%
2022   12.60    1,258,689    15,860,941    0.90%   0.00%   (18.82)%
2021   15.52    510,086    7,917,856    0.31%   0.00%   24.36%
2020   12.48    42,997    536,700    0.59%   0.00%   18.07%
12/20/2019 - 12/31/2019   10.57    24    256    0.00%   0.00%   0.29%
Vanguard VIF Real Estate Index                              
2023  $10.93    662,369   $7,242,790    2.11%   0.00%   11.70%
2022   9.79    425,573    4,166,142    1.51%   0.00%   (26.30)%
2021   13.28    156,943    2,084,552    0.80%   0.00%   40.21%
02/03/2020 - 12/31/2020   9.47    22,735    215,375    0.29%   0.00%   (6.22)%
Vanguard VIF Total Bond Market Index                              
2023  $9.66    175,943   $1,698,993    1.58%   0.00%   5.58%
09/02/2022 - 12/31/2022   9.15    69,232    633,219    0.00%   0.00%   (2.37)%
Vanguard VIF Total Stock Market Index                              
2023  $17.47    26,436   $461,824    1.26%   0.00%   25.95%
09/01/2022 - 12/31/2022   13.87    2,000    27,744    0.00%   0.00%   (2.91)%

 

(1)The investment income ratios represent the dividends, excluding distributions of capital gains, received by the variable accounts from the underlying portfolios, divided by the average daily net assets (See Note 3 in Notes to Financial Statements). These ratios exclude those expenses, such as mortality and expense risk ("M&E") fees that are assessed against policyholder accounts, either through reductions in the unit values or the redemption of units. The recognition of investment income by the variable accounts is affected by the timing of the declaration of dividends by the underlying portfolios in which the variable accounts invest. The investment income ratios for periods of less than one full year are annualized.
(2)There are no policy fees or expenses of the Separate Account that result in a direct reduction of unit values for each period indicated. The expense ratios exclude expenses of the underlying portfolios in which the variable accounts invest and charges made directly to policyholder accounts through the redemption of units (See Note 4 in Notes to Financial Statements).
(3)Total returns reflect changes in unit values of the underlying portfolios and do not include deductions at the separate account or policy level for any M&E fees, cost of insurance charges, premium loads, administrative charges, maintenance fees, premium tax charges, surrender charges, or other charges that may be incurred under a policy which, if incurred, would have resulted in lower returns. Total returns are calculated for each period indicated and are not annualized for periods of less than one full year.
(4)Operations commenced or resumed during 2023 (See Note 1 in Notes to Financial Statements).
(5)The annualized investment income ratio for the Western Asset Variable Global High Yield Bond - Class I Variable Account was 28.86%. The high investment income ratio was due to a large purchase received shortly before the annual investment income distribution in December 2022.

 

See Notes to Financial StatementsSA-77

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS

 

1. ORGANIZATION

 

The Pacific Select Exec Separate Account (the “Separate Account”) of Pacific Life Insurance Company (“Pacific Life”) is registered as a unit investment trust under the Investment Company Act of 1940, as amended. The Separate Account consists of subaccounts (each, a “Variable Account” and collectively, the “Variable Accounts”) which invest in shares of corresponding portfolios (each, a “Portfolio” and collectively, the “Portfolios”) of registered investment management companies (each, a “Fund” and collectively, the “Funds”). As of December 31, 2023, the Fund investment options are Pacific Select Fund (See Note 4), AIM Variable Insurance Funds (Invesco Variable Insurance Funds), American Century Variable Portfolios, Inc., American Funds Insurance Series®, BlackRock Variable Series Funds, Inc., BNY Mellon Variable Investment Fund, DFA Investment Dimensions Group Inc., Fidelity Variable Insurance Products Funds, Franklin Templeton Variable Insurance Products Trust, Goldman Sachs Variable Insurance Trust, Janus Aspen Series, Lazard Retirement Series, Inc., Legg Mason Partners Variable Equity Trust, Legg Mason Partners Variable Income Trust, Lord Abbett Series Fund, Inc., M Fund, Inc., MFS Variable Insurance Trust, MFS Variable Insurance Trust II, MFS Variable Insurance Trust III, Neuberger Berman Advisers Management Trust, PIMCO Variable Insurance Trust, Royce Capital Fund, State Street Variable Insurance Series Funds, Inc., T. Rowe Price Equity Series, Inc., VanEck VIP Trust, and Vanguard Variable Insurance Fund. The Variable Accounts which have not commenced operations as of December 31, 2023 are not presented in this annual report.

 

Each Portfolio pursues different investment objectives and policies. The financial statements of the Funds, including the schedules of investments, are provided separately and should be read in conjunction with the Separate Account’s financial statements.

 

The Invesco V.I. Discovery Mid Cap Growth Series I, Goldman Sachs VIT Multi-Strategy Alternatives Institutional Shares and Vanguard VIF Global Bond Index variable accounts commenced or resumed operations on January 20, 2023, March 6, 2023 and May 17, 2023 respectively.

 

Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the other assets and liabilities of Pacific Life. The assets of the Separate Account will not be charged with any liabilities arising out of any other business conducted by Pacific Life, but the obligations of the Separate Account, including benefits related to variable life insurance policies, are obligations of Pacific Life.

 

The Separate Account funds individual modified single premium, flexible premium, and last survivor flexible premium variable life insurance policies issued by Pacific Life. The investments of the Separate Account are carried at fair value.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following is a summary of the significant accounting policies followed by the Separate Account in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Separate Account qualifies as an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to Investment Companies Topic of U.S. GAAP.

 

A. Valuation of Investments

 

The fair value of the Variable Account’s investments in mutual funds is based on the computed net asset values (“NAV”) of the corresponding Portfolios, which are obtained from the transfer agents or Fund companies and reflect the fair values of the Portfolio investments. The NAV is calculated daily upon the close of the New York Stock Exchange and is based on the fair values of the underlying securities. Valuation of the underlying securities is discussed in the notes to the Funds’ financial statements.

 

B. Security Transactions and Income

 

Transactions are recorded on the trade date. Realized gains and losses on sales of investments are determined on the basis of identified cost. Dividends and capital gain distributions, if any, from mutual fund investments are recorded on the ex-dividend date.

 

C. Federal Income Taxes

 

The operations of the Separate Account are included within the total operations of Pacific Life, which files income tax returns as part of the Pacific Mutual Holding Company consolidated federal income tax return. Section 817(h) of the Internal Revenue Code (“the Code”) requires that the investments of the Separate Account must be adequately diversified in accordance with Treasury regulations in order to qualify as a life insurance policy under Section 72 of the Code. The Separate Account complies with the diversification requirements. Under the current tax law, no federal income taxes are expected to be paid with respect to the operations of the Separate Account. Pacific Life will periodically review the status of this policy in the event of changes in the tax law.

 

3. DIVIDENDS AND DISTRIBUTIONS FROM MUTUAL FUND INVESTMENTS

 

All dividend and capital gain distributions, if any, received from the Portfolios are reinvested in additional full and fractional shares of the related Portfolios and are recorded by the Variable Accounts on the ex-dividend date.

 

SA-78

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS (Continued) 

 

Each of the Portfolios in the Pacific Select Fund is treated as a partnership for federal income tax purposes only (the “Partnership Portfolios"). The Partnership Portfolios are not required to distribute taxable income and capital gains for federal income tax purposes. Therefore, no dividend or capital gain distributions were received from any Portfolios in the Pacific Select Fund nor were they recorded by the applicable Variable Accounts in the Statements of Operations for the year or period ended December 31, 2023.

 

4. CHARGES AND EXPENSES AND RELATED PARTY TRANSACTIONS

 

Pacific Life makes certain deductions from the net assets of each Variable Account through a redemption of units for charges for the mortality and expense risks ("M&E") and administrative expenses Pacific Life assumes, cost of insurance, charges for optional benefits provided by rider and any applicable surrender charges, and are shown as a decrease in net assets in the accompanying Statements of Changes in Net Assets. The mortality risk assumed by Pacific Life is the risk that those insured may die sooner than anticipated, resulting in Pacific Life paying an aggregate amount of death benefits greater than anticipated. The expense risk assumed is that expenses incurred in issuing and administering the policies will exceed the amounts realized from the administrative fees assessed against the policies. The cost of insurance charge is the primary charge under the policy for the death benefit provided by Pacific Life which may vary by policy based on underwriting criteria. For some policies, a surrender charge is imposed if the policy is partially or fully surrendered within the specified surrender charge period and charges will vary depending on the individual policy. Most policies offer optional benefits that can be added to the policy by rider. The charges for riders can range depending on the individual policy. All of the fees described above are assessed directly to each policyholder account through a redemption of units. Surrender charges are included in policy benefits and terminations; and charges for M&E, administrative expenses, cost of insurance, and optional benefits provided by rider are included in policy maintenance charges in the accompanying Statements of Changes in Net Assets. The operating expenses of the Separate Account are paid by Pacific Life and are not reflected in the accompanying financial statements.

 

In addition to charges and expenses described above, the Variable Accounts also indirectly bear a portion of the operating expenses of the applicable Portfolios in which they invest.

 

With respect to variable life insurance policies funded by the Separate Account, Pacific Life makes certain deductions from premiums before amounts are allocated to the Separate Account to help pay costs of distributing the policies and to pay state and local premium taxes, and any other taxes that might be imposed, and to compensate Pacific Life for certain costs or loss of investment opportunities resulting from amortization and delayed recognition of certain policy expenses for federal income tax purposes. These deductions are not reflected in the accompanying financial statements.

 

The assets of certain Variable Accounts invest in Class D, Class I, or Class P shares of the corresponding Portfolios of the Pacific Select Fund ("PSF"). Each Portfolio of PSF pays an advisory fee to Pacific Life Fund Advisors LLC (“PLFA”), a wholly-owned subsidiary of Pacific Life, pursuant to PSF's Investment Advisory Agreement and pays a class-specific non-12b-1 service fee for Class I shares and a class-specific 12b-1 distribution and service fee for Class D shares to Pacific Select Distributors, LLC ("PSD"), also a wholly-owned subsidiary of Pacific Life, for providing shareholder servicing activities under PSF's non-12b-1 Service Plan and 12b-1 Distribution and Service Plan. Each Portfolio of PSF also compensates Pacific Life and PLFA on an approximate cost basis pursuant to PSF Administration and Support Services Agreement for providing services to PSF that are outside the scope of the Investment Adviser’s responsibilities under the Investment Advisory Agreement. The advisory fee and distribution and/or service fee rates are disclosed in the notes to financial statements of PSF. For the year ended December 31, 2023, PLFA received net advisory fees from the Portfolios of PSF at effective annual rates ranging from 0.05% to 0.90%, and PSD received a non-12b-1 service fee of 0.20% on Class I shares only and a 12b-1 service fee of 0.20% and a distribution fee of 0.05% on Class D shares only, all of which are based on the average daily net assets of each Portfolio.

 

5. RELATED PARTY AGREEMENT

 

PSD serves as principal underwriter of variable life insurance policies funded by interests in the Separate Account, without remuneration from the Separate Account.

 

6. FAIR VALUE MEASUREMENTS

 

The Variable Accounts characterize their holdings in the Portfolios as Level 1, Level 2, or Level 3 based upon the various inputs or methodologies used to value the holdings. The three-tier hierarchy of inputs is summarized in the three broad levels:

 

Level 1 – Quoted prices (unadjusted) in active markets for identical holdings

Level 2 – Significant observable market-based inputs, other than Level 1 quoted prices, or unobservable inputs that are corroborated by market data

Level 3 – Significant unobservable inputs that are not corroborated by observable market data

 

The inputs or methodologies used for valuing the Variable Accounts' holdings are not necessarily an indication of risks associated with investing in those holdings. As of December 31, 2023, the Variable Accounts' holdings as presented in the Investments section were all categorized as Level 1 under the three-tier hierarchy of inputs.

 

SA-79

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS (Continued) 

 

7. CHANGES IN UNITS OUTSTANDING

 

The changes in units outstanding for the year or period ended December 31, 2023 and 2022 were as follows:

 

   2023   2022 
   Units   Units   Net Increase   Units   Units   Net Increase 
Variable Accounts  Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease) 
Core Income Class I   592,188    (167,343)   424,845    96,288    (103,400)   (7,112)
Core Income Class P   3,043    (252)   2,791    862    (2,310)   (1,448)
Diversified Bond Class I   1,019,494    (881,401)   138,093    934,705    (1,753,695)   (818,990)
Diversified Bond Class P   413,851    (71,262)   342,589    168,895    (49,922)   118,973 
Floating Rate Income Class I   273,301    (561,042)   (287,741)   453,663    (816,684)   (363,021)
Floating Rate Income Class P   42,205    (14,184)   28,021    47,354    (10,258)   37,096 
High Yield Bond Class I   363,294    (329,630)   33,664    256,842    (337,810)   (80,968)
High Yield Bond Class P   84,281    (18,565)   65,716    37,131    (21,629)   15,502 
Inflation Managed Class I   239,415    (139,358)   100,057    139,184    (192,788)   (53,604)
Inflation Managed Class P   107,689    (23,028)   84,661    75,216    (12,403)   62,813 
Intermediate Bond Class P   180,822    (13,330)   167,492    25,427    (893)   24,534 
Managed Bond Class I   384,035    (531,663)   (147,628)   378,502    (549,854)   (171,352)
Managed Bond Class P   263,147    (57,074)   206,073    186,434    (26,998)   159,436 
Short Duration Bond Class I   1,660,028    (1,047,869)   612,159    1,033,160    (2,436,782)   (1,403,622)
Short Duration Bond Class P   264,042    (64,786)   199,256    194,464    (55,947)   138,517 
Emerging Markets Debt Class I   28,312    (30,497)   (2,185)   26,587    (60,282)   (33,695)
Emerging Markets Debt Class P   6,163    (1,630)   4,533    4,912    (1,225)   3,687 
Dividend Growth Class I   181,580    (316,199)   (134,619)   215,105    (290,934)   (75,829)
Dividend Growth Class P   152,606    (23,466)   129,140    74,119    (12,788)   61,331 
Equity Index Class I   493,584    (520,115)   (26,531)   454,140    (623,355)   (169,215)
Equity Index Class P   6,632,744    (1,767,382)   4,865,362    5,200,383    (1,006,416)   4,193,967 
Focused Growth Class I   59,511    (105,388)   (45,877)   76,616    (93,079)   (16,463)
Growth Class I   45,302    (142,946)   (97,644)   70,299    (253,465)   (183,166)
Growth Class P   200,758    (60,650)   140,108    162,033    (45,529)   116,504 
Hedged Equity Class P   287,611    (99,987)   187,624    212,732    (44,902)   167,830 
Large-Cap Core Class I   46,474    (136,301)   (89,827)   44,933    (114,173)   (69,240)
Large-Cap Core Class P   67,457    (17,588)   49,869    29,195    (12,845)   16,350 
Large-Cap Growth Class I   451,416    (348,152)   103,264    261,047    (291,393)   (30,346)
Large-Cap Growth Class P   69,323    (6,961)   62,362    16,132    (314)   15,818 
Large-Cap Value Class I   241,733    (384,128)   (142,395)   298,223    (499,373)   (201,150)
Large-Cap Value Class P   96,956    (44,728)   52,228    67,214    (40,335)   26,879 
Mid-Cap Equity Class I   135,667    (157,494)   (21,827)   101,497    (184,252)   (82,755)
Mid-Cap Growth Class I   286,629    (286,226)   403    264,178    (867,365)   (603,187)
Mid-Cap Growth Class P   44,599    (17,463)   27,136    40,007    (20,062)   19,945 
Mid-Cap Value Class I   60,445    (54,252)   6,193    69,735    (68,083)   1,652 
Mid-Cap Value Class P   27,294    (8,184)   19,110    21,623    (6,115)   15,508 
Small-Cap Equity Class I   122,418    (84,754)   37,664    68,565    (149,097)   (80,532)
Small-Cap Equity Class P   20,799    (15,042)   5,757    15,035    (7,492)   7,543 
Small-Cap Growth Class I   17    (44,395)   (44,378)   33    (39,914)   (39,881)
Small-Cap Index Class I   299,036    (394,222)   (95,186)   354,657    (501,456)   (146,799)
Small-Cap Index Class P   1,116,095    (289,642)   826,453    720,685    (180,271)   540,414 
Small-Cap Value Class I   91,197    (132,885)   (41,688)   98,455    (247,078)   (148,623)
Small-Cap Value Class P   55,751    (22,319)   33,432    29,430    (12,102)   17,328 
Value Class I   174,908    (218,238)   (43,330)   179,089    (360,894)   (181,805)
Value Class P   19,099    (6,489)   12,610    12,496    (5,803)   6,693 
Value Advantage Class I   107,795    (262,440)   (154,645)   254,806    (275,357)   (20,551)
Value Advantage Class P   35,545    (20,878)   14,667    71,420    (11,298)   60,122 
Emerging Markets Class I   356,842    (383,919)   (27,077)   468,515    (431,002)   37,513 
Emerging Markets Class P   267,386    (57,256)   210,130    128,493    (36,146)   92,347 
International Growth Class P   33,170    (2,422)   30,748    927    (28)   899 
International Large-Cap Class I   1,071,407    (1,133,843)   (62,436)   1,089,054    (1,297,370)   (208,316)
International Large-Cap Class P   229,983    (48,607)   181,376    105,890    (32,607)   73,283 
International Small-Cap Class I   130,209    (158,951)   (28,742)   169,097    (236,522)   (67,425)

 

SA-80

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS (Continued)   

 

   2023   2022 
   Units   Units   Net Increase   Units   Units   Net Increase 
Variable Accounts  Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease) 
International Small-Cap Class P   37,755    (18,560)   19,195    43,885    (8,906)   34,979 
International Value Class I   240,200    (511,013)   (270,813)   377,431    (603,715)   (226,284)
Health Sciences Class I   84,287    (155,002)   (70,715)   82,235    (120,010)   (37,775)
Health Sciences Class P   69,005    (59,151)   9,854    57,092    (25,923)   31,169 
Real Estate Class I   106,990    (120,689)   (13,699)   81,664    (134,411)   (52,747)
Real Estate Class P   4,562    (2,267)   2,295    3,252    (1,620)   1,632 
Technology Class I   339,337    (417,257)   (77,920)   280,648    (301,780)   (21,132)
Technology Class P   64,253    (32,849)   31,404    48,002    (19,366)   28,636 
ESG Diversified Class P   15,160    (3,558)   11,602    3,026    (996)   2,030 
ESG Diversified Growth Class P   97,255    (27,804)   69,451    349,659    (304,820)   44,839 
PSF Avantis Balanced Allocation Class D   89,047    (126,660)   (37,613)   137,234    (71,293)   65,941 
PSF Avantis Balanced Allocation Class P   23,951    (15,416)   8,535    60,086    (12,910)   47,176 
Pacific Dynamix - Conservative Growth Class I   41,083    (80,547)   (39,464)   94,611    (60,654)   33,957 
Pacific Dynamix - Conservative Growth Class P   451,514    (191,838)   259,676    264,284    (64,204)   200,080 
Pacific Dynamix - Moderate Growth Class I   194,795    (244,112)   (49,317)   204,982    (284,205)   (79,223)
Pacific Dynamix - Moderate Growth Class P   1,903,130    (926,957)   976,173    2,155,853    (640,726)   1,515,127 
Pacific Dynamix - Growth Class I   402,138    (463,718)   (61,580)   562,454    (307,678)   254,776 
Pacific Dynamix - Growth Class P   1,685,509    (553,940)   1,131,569    1,397,629    (447,560)   950,069 
Portfolio Optimization Conservative Class I   108,108    (209,797)   (101,689)   107,415    (134,817)   (27,402)
Portfolio Optimization Conservative Class P   400    (4,551)   (4,151)   1,698    (865)   833 
Portfolio Optimization Moderate-Conservative Class I   106,354    (226,161)   (119,807)   123,841    (280,435)   (156,594)
Portfolio Optimization Moderate-Conservative Class P   15,168    (1,166)   14,002    2,679    (1,636)   1,043 
Portfolio Optimization Moderate Class I   578,787    (1,432,308)   (853,521)   567,751    (1,320,390)   (752,639)
Portfolio Optimization Moderate Class P   31,976    (14,405)   17,571    27,071    (12,779)   14,292 
Portfolio Optimization Growth Class I   750,022    (1,593,264)   (843,242)   764,308    (1,428,284)   (663,976)
Portfolio Optimization Growth Class P   104,840    (37,379)   67,461    131,458    (70,760)   60,698 
Portfolio Optimization Aggressive-Growth Class I   330,379    (832,956)   (502,577)   470,323    (572,615)   (102,292)
Portfolio Optimization Aggressive-Growth Class P   55,690    (32,566)   23,124    117,834    (16,975)   100,859 
Invesco V.I. Discovery Mid Cap Growth Series I   265    (101)   164                
Invesco V.I. EQV International Equity Series I   72,578    (23,329)   49,249    91,911    (21,338)   70,573 
Invesco V.I. EQV International Equity Series II   293,359    (236,913)   56,446    197,193    (342,614)   (145,421)
Invesco V.I. Global Series I   57,435    (23,463)   33,972    68,137    (23,150)   44,987 
Invesco V.I. Global Series II   112,120    (280,406)   (168,286)   125,001    (126,115)   (1,114)
Invesco V.I. Main Street Small Cap Fund Series I   399,124    (67,646)   331,478    200,221    (144,522)   55,699 
American Century Inflation Protection Class I   1,647    (512)   1,135    1,725    (55)   1,670 
American Century VP Mid Cap Value Class I   73,070    (24,676)   48,394    60,669    (21,149)   39,520 
American Century VP Mid Cap Value Class II   358,384    (360,574)   (2,190)   238,123    (286,302)   (48,179)
American Funds IS American High-Income Trust Class 2   77,914    (24,825)   53,089    47,823    (16,223)   31,600 
American Funds IS Asset Allocation Class 2   923,631    (256,967)   666,664    892,976    (179,014)   713,962 
American Funds IS Asset Allocation Class 4   356,093    (230,369)   125,724    234,663    (377,101)   (142,438)
American Funds IS Capital World Bond Class 2   3,421    (215)   3,206    1,910    (46)   1,864 
American Funds IS Growth Class 2   475,947    (161,679)   314,268    406,981    (111,494)   295,487 
American Funds IS Growth Class 4   300,792    (365,522)   (64,730)   301,976    (283,181)   18,795 
American Funds IS Growth-Income Class 2   312,061    (95,380)   216,681    357,302    (85,988)   271,314 
American Funds IS Growth-Income Class 4   173,459    (309,769)   (136,310)   221,885    (340,402)   (118,517)
American Funds IS International Class 2   102,508    (39,337)   63,171    106,420    (31,377)   75,043 
American Funds IS New World Fund Class 2   80,288    (47,365)   32,923    117,060    (39,140)   77,920 
BlackRock 60/40 Target Allocation ETF V.I. Class I   321,895    (227,039)   94,856    520,249    (162,626)   357,623 
BlackRock Basic Value V.I. Class III   113,241    (101,392)   11,849    103,305    (105,506)   (2,201)
BlackRock Global Allocation V.I. Class I   322,742    (47,420)   275,322    101,957    (34,685)   67,272 
BlackRock Global Allocation V.I. Class III   161,484    (267,865)   (106,381)   210,501    (250,670)   (40,169)
BNY Mellon VIF Appreciation Service Shares   147,971    (93,626)   54,345    43,356    (39,673)   3,683 
DFA VA International Small Institutional Class   242,778    (51,343)   191,435    148,659    (34,444)   114,215 
DFA VA International Value Institutional Class   107,728    (47,594)   60,134    103,630    (18,732)   84,898 
DFA VA Short-Term Fixed Institutional Class   551,998    (123,271)   428,727    332,586    (90,869)   241,717 
DFA VA US Large Value Institutional Class   240,700    (61,804)   178,896    172,008    (34,060)   137,948 

 

SA-81

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS (Continued) 

 

   2023   2022 
   Units   Units   Net Increase   Units   Units   Net Increase 
Variable Accounts  Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease) 
DFA VA US Targeted Value Institutional Class   119,181    (36,261)   82,920    90,920    (20,997)   69,923 
Fidelity VIP Bond Index Initial Class   1,982,066    (246,931)   1,735,135    789,999    (208,513)   581,486 
Fidelity VIP Bond Index Service Class 2   339,623    (68,642)   270,981    121,005    (30,818)   90,187 
Fidelity VIP Contrafund Initial Class   78,231    (33,535)   44,696    81,142    (28,153)   52,989 
Fidelity VIP Contrafund Service Class 2   136,540    (196,483)   (59,943)   172,671    (135,917)   36,754 
Fidelity VIP Freedom 2010 Portfolio Service Class 2   27,327    (23,488)   3,839    6,939    (51,615)   (44,676)
Fidelity VIP Freedom 2015 Portfolio Service Class 2   6,816    (7,949)   (1,133)   13,784    (15,372)   (1,588)
Fidelity VIP Freedom 2020 Portfolio Service Class 2   17,180    (54,615)   (37,435)   36,105    (41,325)   (5,220)
Fidelity VIP Freedom 2025 Portfolio Initial Class   18,262    (4,395)   13,867    7,963    (2,064)   5,899 
Fidelity VIP Freedom 2025 Portfolio Service Class 2   66,081    (105,959)   (39,878)   122,816    (124,102)   (1,286)
Fidelity VIP Freedom 2030 Portfolio Initial Class   40,327    (31,869)   8,458    19,121    (6,978)   12,143 
Fidelity VIP Freedom 2030 Portfolio Service Class 2   137,669    (147,362)   (9,693)   92,706    (180,723)   (88,017)
Fidelity VIP Freedom 2035 Portfolio Initial Class   134,898    (37,956)   96,942    155,997    (22,014)   133,983 
Fidelity VIP Freedom 2035 Portfolio Service Class 2   129,718    (127,067)   2,651    90,253    (54,353)   35,900 
Fidelity VIP Freedom 2045 Portfolio Initial Class   184,625    (48,310)   136,315    113,901    (25,468)   88,433 
Fidelity VIP Freedom 2045 Portfolio Service Class 2   148,969    (107,597)   41,372    145,806    (56,555)   89,251 
Fidelity VIP Freedom 2055 Portfolio Initial Class   1,106    (420)   686    593    (62)   531 
Fidelity VIP Freedom Income Portfolio Initial Class   11,053    (5,795)   5,258    6,572    (1,865)   4,707 
Fidelity VIP Freedom Income Portfolio Service Class 2   55,877    (88,054)   (32,177)   56,580    (57,457)   (877)
Fidelity VIP Government Money Market Service Class   44,394,652    (46,626,150)   (2,231,498)   46,531,112    (36,827,559)   9,703,553 
Fidelity VIP Growth Initial Class   7,531    (121)   7,410    6,853    (2,475)   4,378 
Fidelity VIP Growth Service Class 2   339,510    (160,439)   179,071    240,600    (92,905)   147,695 
Fidelity VIP International Index Initial Class   1,206,037    (259,526)   946,511    673,697    (173,936)   499,761 
Fidelity VIP International Index Service Class 2   218,163    (55,878)   162,285    130,154    (43,075)   87,079 
Fidelity VIP Mid Cap Initial Class   136,549    (50,813)   85,736    97,271    (30,656)   66,615 
Fidelity VIP Mid Cap Service Class 2   96,647    (83,199)   13,448    83,071    (90,623)   (7,552)
Fidelity VIP Total Market Index Initial Class   2,013,892    (682,335)   1,331,557    2,017,856    (364,401)   1,653,455 
Fidelity VIP Total Market Index Service Class 2   224,294    (64,011)   160,283    140,793    (45,065)   95,728 
Fidelity VIP Value Strategies Service Class 2   49,130    (91,033)   (41,903)   104,503    (69,559)   34,944 
Templeton Foreign VIP Class 1   30,790    (19,140)   11,650    35,547    (15,039)   20,508 
Templeton Foreign VIP Class 2   185,125    (322,297)   (137,172)   207,763    (494,462)   (286,699)
Templeton Global Bond VIP Class 1   36,282    (15,507)   20,775    22,766    (9,541)   13,225 
Templeton Global Bond VIP Class 2   227,842    (258,979)   (31,137)   206,170    (409,135)   (202,965)
Goldman Sachs VIT Multi-Strategy Alternatives Institutional Shares   5,193    (185)   5,008                
Janus Henderson Enterprise Institutional Shares   30,958    (12,619)   18,339    31,195    (11,026)   20,169 
Janus Henderson Enterprise Service Shares   78,981    (188,624)   (109,643)   117,890    (143,489)   (25,599)
Janus Henderson Overseas Institutional Shares   76,059    (39,258)   36,801    24,019    (13,864)   10,155 
Janus Henderson Overseas Service Shares   309,984    (339,756)   (29,772)   313,540    (343,401)   (29,861)
Lazard Retirement Global Dynamic Multi-Asset Investor Shares   5,221    (3,894)   1,327    6,882    (3,234)   3,648 
Lazard Retirement Global Dynamic Multi-Asset Service Shares   12,189    (17,581)   (5,392)   10,543    (12,454)   (1,911)
Lazard Retirement International Equity Service Shares   61,255    (58,719)   2,536    55,841    (14,826)   41,015 
ClearBridge Variable Aggressive Growth - Class I   10,050    (7,946)   2,104    22,859    (7,180)   15,679 
ClearBridge Variable Aggressive Growth - Class II   115,237    (121,982)   (6,745)   124,941    (91,966)   32,975 
ClearBridge Variable Mid Cap - Class I   41,489    (24,616)   16,873    93,723    (19,054)   74,669 
ClearBridge Variable Mid Cap - Class II   29,951    (56,545)   (26,594)   40,805    (40,972)   (167)
ClearBridge Variable Small Cap Growth - Class I   76,807    (19,976)   56,831    45,724    (9,624)   36,100 
Western Asset Variable Global High Yield Bond - Class I   58,408    (6,455)   51,953    850    (98)   752 
Western Asset Variable Global High Yield Bond - Class II   12,406    (22,324)   (9,918)   19,368    (15,382)   3,986 
Lord Abbett Bond Debenture Class VC   416,942    (208,200)   208,742    365,813    (433,027)   (67,214)
Lord Abbett Developing Growth Class VC   -    (49,627)   (49,627)   -    (67,390)   (67,390)
Lord Abbett Fundamental Equity Class VC   16,968    (25,878)   (8,910)   18,028    (23,260)   (5,232)
Lord Abbett Total Return Class VC   1,310,713    (1,248,137)   62,576    2,923,314    (1,148,955)   1,774,359 
M Capital Appreciation   88,169    (74,156)   14,013    58,665    (57,737)   928 
M International Equity   356,823    (264,736)   92,087    260,043    (300,244)   (40,201)
M Large Cap Growth   127,133    (137,244)   (10,111)   113,760    (108,116)   5,644 
M Large Cap Value   310,428    (336,323)   (25,895)   279,340    (273,023)   6,317 

 

SA-82

 

 

PACIFIC SELECT EXEC SEPARATE ACCOUNT

NOTES TO FINANCIAL STATEMENTS (Continued)

 

   2023   2022 
   Units   Units   Net Increase   Units   Units   Net Increase 
Variable Accounts  Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease) 
MFS New Discovery Series - Initial Class   59,792    (33,854)   25,938    66,037    (26,579)   39,458 
MFS New Discovery Series - Service Class   95,263    (108,355)   (13,092)   156,138    (239,498)   (83,360)
MFS Total Return Series - Initial Class   33,214    (18,625)   14,589    35,861    (11,488)   24,373 
MFS Utilities Series - Initial Class   7,385    (4,177)   3,208    5,677    (1,934)   3,743 
MFS Utilities Series - Service Class   67,626    (138,687)   (71,061)   161,598    (139,152)   22,446 
MFS Value Series - Initial Class   154,632    (41,725)   112,907    140,323    (37,735)   102,588 
MFS Value Series - Service Class   284,215    (275,563)   8,652    239,380    (442,006)   (202,626)
MFS Government Securities - Initial Class   7,581    (315)   7,266    2,030    (5,681)   (3,651)
MFS Research International - Initial Class   3,086    (566)   2,520    3,105    (91)   3,014 
MFS Blended Research Small Cap Equity - Initial Class   2,045    (117)   1,928    1,595    (1,202)   393 
MFS Global Real Estate - Initial Class   1,617    (627)   990    1,971    (46)   1,925 
Neuberger Berman Sustainable Equity Class I   46,226    (34,046)   12,180    19,492    (28,128)   (8,636)
PIMCO CommodityRealReturn Strategy - Institutional Class   628    (122)   506    408    (26)   382 
PIMCO Global Managed Asset Allocation - Advisor Class   105,560    (109,669)   (4,109)   30,316    (39,163)   (8,847)
PIMCO Global Managed Asset Allocation - Institutional Class   9,298    (7,607)   1,691    5,720    (2,610)   3,110 
PIMCO Income - Administrative Class   972,978    (1,319,904)   (346,926)   949,563    (169,279)   780,284 
Royce Micro-Cap Service Class   39,651    (49,906)   (10,255)   24,066    (126,670)   (102,604)
State Street Total Return V.I.S. Class 3   16,754    (10,526)   6,228    12,419    (9,511)   2,908 
T. Rowe Price Blue Chip Growth - I   412,483    (189,096)   223,387    356,667    (106,922)   249,745 
T. Rowe Price Blue Chip Growth - II   380,397    (489,842)   (109,445)   487,596    (496,985)   (9,389)
T. Rowe Price Equity Income - I   208,889    (58,572)   150,317    125,465    (35,168)   90,297 
T. Rowe Price Equity Income - II   228,457    (316,361)   (87,904)   431,073    (464,118)   (33,045)
VanEck VIP Global Resources Initial Class   240,804    (306,221)   (65,417)   353,795    (494,139)   (140,344)
Vanguard VIF Global Bond Index   28,074    (1,247)   26,827                
Vanguard VIF High Yield Bond   293,672    (67,066)   226,606    191,439    (54,074)   137,365 
Vanguard VIF Mid-Cap Index   1,376,522    (353,609)   1,022,913    960,142    (211,539)   748,603 
Vanguard VIF Real Estate Index   383,111    (146,315)   236,796    358,925    (90,295)   268,630 
Vanguard VIF Total Bond Market Index   120,847    (14,136)   106,711    71,125    (1,893)   69,232 
Vanguard VIF Total Stock Market Index   26,646    (2,210)   24,436    2,213    (213)   2,000 

 

SA-83

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors of

Pacific Life Insurance Company:

 

Opinion on the Financial Statements and Financial Highlights

 

We have audited the accompanying statements of assets and liabilities of Pacific Select Exec Separate Account of Pacific Life Insurance Company (the "Separate Account") comprising the variable accounts listed in Appendix A, including the schedules of investments as of December 31, 2023, the related statements of operations, statements of changes in net assets, and financial highlights for the periods indicated in Appendix A, and the related notes. In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Variable Accounts constituting the Pacific Select Exec Separate Account of Pacific Life Insurance Company as of December 31, 2023, the results of their operations, changes in their net assets, and financial highlights for each of the periods indicated in Appendix A, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on the Separate Account’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Separate Account is not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Separate Account’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of investments owned as of December 31, 2023, by correspondence with the transfer agents. We believe that our audits provide a reasonable basis for our opinion.

 

cid:image001.jpg@01D44A97.C01696D0

 

Costa Mesa, California

February 28, 2024

 

 

We have served as the auditor of Pacific Select Exec Separate Account of Pacific Life Insurance Company since 1988.

 

SA-84

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)

APPENDIX A

 

Variable Account Comprising the
Separate Account		 Statement of Operations Statement of Changes in Net Assets Financial Highlights
Core Income Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Core Income Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from May 19, 2021 (commencement of operations) through December 31, 2021
Diversified Bond Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Diversified Bond Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 23, 2020 (commencement of operations) through December 31, 2020
Floating Rate Income Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Floating Rate Income Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 29, 2020 (commencement of operations) through December 31, 2020
High Yield Bond Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
High Yield Bond Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 20, 2019 (commencement of operations) through December 31, 2019
Inflation Managed Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Inflation Managed Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from February 3, 2020 (commencement of operations) through December 31, 2020
Intermediate Bond Class P For the year ended December 31, 2023 For the year ended December 31,2023 and the period from August 4, 2022 (commencement of operations) through December 31, 2022
Managed Bond Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Managed Bond Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 20, 2019 (commencement of operations) through December 31, 2019
Short Duration Bond Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Short Duration Bond Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 17, 2020 (commencement of operations) through December 31, 2020
Emerging Markets Debt Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Emerging Markets Debt Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from March 9, 2020 (commencement of operations) through December 31, 2020
Dividend Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Dividend Growth Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 17, 2020 (commencement of operations) through December 31, 2020
Equity Index Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Equity Index Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 5, 2019 (commencement of operations) through December 31, 2019

 

SA-85

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)

APPENDIX A (Continued)

 

Variable Account Comprising the
Separate Account		 Statement of Operations Statement of Changes in Net Assets Financial Highlights
Focused Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Growth Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 15, 2020 (commencement of operations) through December 31, 2020
Hedged Equity Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from June 2, 2021 (commencement of operations) through December 31, 2021
Large-Cap Core Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Large-Cap Core Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 27, 2020 (commencement of operations) through December 31, 2020
Large-Cap Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Large-Cap Growth Class P For the year ended December 31, 2023 For the year ended December 31, 2023, and the period from July 22, 2022 (commencement of operations) through December 31, 2022
Large-Cap Value Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Large-Cap Value Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 20, 2019 (commencement of operations) through December 31, 2019
Mid-Cap Equity Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Mid-Cap Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Mid-Cap Growth Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 21, 2020 (commencement of operations) through December 31, 2020
Mid-Cap Value Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Mid-Cap Value Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 5, 2019 (commencement of operations) through December 31, 2019
Small-Cap Equity Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Small-Cap Equity Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 29, 2020 (commencement of operations) through December 31, 2020
Small-Cap Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Small-Cap Index Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Small-Cap Index Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 5, 2019 (commencement of operations) through December 31, 2019
Small-Cap Value Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023

 

SA-86

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)

APPENDIX A (Continued)

 

Variable Account Comprising the
Separate Account		 Statement of Operations Statement of Changes in Net Assets Financial Highlights
Small-Cap Value Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 31, 2019 (commencement of operations) through December 31, 2019
Value Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Value Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 21, 2020 (commencement of operations) through December 31, 2020
Value Advantage Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Value Advantage Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 17, 2020 (commencement of operations) through December 31, 2020
Emerging Markets Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Emerging Markets Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 20, 2019 (commencement of operations) through December 31, 2019
International Growth Class P For the year ended December 31, 2023 For the year ended December 31, 2023, and the period from November 2, 2022 (commencement of operations) through December 31, 2022
International Large-Cap Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
International Large-Cap Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 20, 2019 (commencement of operations) through December 31, 2019
International Small-Cap Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
International Small-Cap Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 20, 2019 (commencement of operations) through December 31, 2019
International Value Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Health Sciences Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Health Sciences Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from March 11, 2020 (commencement of operations) through December 31, 2020
Real Estate Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Real Estate Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from March 4, 2020 (commencement of operations) through December 31, 2020
Technology Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Technology Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 31, 2019 (commencement of operations) through December 31, 2019
ESG Diversified Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from October 14, 2021 (commencement of operations) through December 31, 2021

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)

APPENDIX A (Continued)

 

Variable Account Comprising the Separate Account Statement of Operations Statement of Changes in Net Assets Financial Highlights
ESG Diversified Growth Class P For the year ended December 31, 2023 For the year ended December 31, 2023, and the period from June 1, 2022 (commencement of operations) through December 31, 2022
PSF Avantis Balanced Allocation Class D For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
PSF Avantis Balanced Allocation Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from March 9, 2020 (commencement of operations) through December 31, 2020
Pacific Dynamix - Conservative Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Pacific Dynamix - Conservative Growth Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 27, 2020 (commencement of operations) through December 31, 2020
Pacific Dynamix - Moderate Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Pacific Dynamix - Moderate Growth Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 23, 2019 (commencement of operations) through December 31, 2019
Pacific Dynamix - Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Pacific Dynamix - Growth Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 8, 2020 (commencement of operations) through December 31, 2020
Portfolio Optimization Conservative Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Portfolio Optimization Conservative Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from March 9, 2020 (commencement of operations) through December 31, 2020
Portfolio Optimization Moderate-Conservative Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Portfolio Optimization Moderate-Conservative Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from March 9, 2020 (commencement of operations) through December 31, 2020
Portfolio Optimization Moderate Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Portfolio Optimization Moderate Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 9, 2020 (commencement of operations) through December 31, 2020
Portfolio Optimization Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Portfolio Optimization Growth Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 27, 2020 (commencement of operations) through December 31, 2020
Portfolio Optimization Aggressive-Growth Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Portfolio Optimization Aggressive-Growth Class P For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from February 26, 2020 (commencement of operations) through December 31, 2020
Invesco® V.I. Discovery Mid Cap Growth Series I For the period January 20, 2023 (commencement of operations) through December 31, 2023
Invesco V.I. EQV International Equity Series I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 31, 2019 (commencement of operations) through December 31, 2019

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)

APPENDIX A (Continued)

 

Variable Account Comprising the
Separate Account		 Statement of Operations Statement of Changes in Net Assets Financial Highlights
Invesco V.I. EQV International Equity Series II For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Invesco® V.I. Global Series I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 23, 2020 (commencement of operations) through December 31, 2020
Invesco® V.I. Global Series II For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Invesco® V.I. Main Street Small Cap Fund Series I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
American Century Inflation Protection Class I For the year ended December 31, 2023 For the year ended December 31, 2023, and the period from November 22, 2022 (commencement of operations) through December 31, 2022
American Century VP Mid Cap Value Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 31, 2019 (commencement of operations) through December 31, 2019
American Century VP Mid Cap Value Class II For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
American Funds IS American High-Income Trust Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 29, 2020 (commencement of operations) through December 31, 2020
American Funds IS Asset Allocation Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 27, 2019 (commencement of operations) through December 31, 2019
American Funds IS Asset Allocation Class 4 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
American Funds IS Capital World Bond Class 2 For the year ended December 31, 2023 For the year ended December 31, 2023, and the period from September 22, 2022 (commencement of operations) through December 31, 2022
American Funds IS Growth Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 20, 2019 (commencement of operations) through December 31, 2019
American Funds IS Growth Class 4 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
American Funds IS Growth-Income Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 20, 2019 (commencement of operations) through December 31, 2019
American Funds IS Growth-Income Class 4 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
American Funds IS International Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 16, 2020 (commencement of operations) through December 31, 2020
American Funds IS New World Fund® Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 9, 2020 (commencement of operations) through December 31, 2020
BlackRock® 60/40 Target Allocation ETF V.I. Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
BlackRock® Basic Value V.I. Class III For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
BlackRock® Global Allocation V.I. Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 15, 2020 (commencement of operations) through December 31, 2020
BlackRock® Global Allocation V.I. Class III For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)

APPENDIX A (Continued)

 

Variable Account Comprising the
Separate Account		 Statement of Operations Statement of Changes in Net Assets Financial Highlights
BNY Mellon VIF Appreciation Service Shares For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
DFA VA International Small Institutional Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from January 29, 2021 (commencement of operations) through December 31, 2021
DFA VA International Value Institutional Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020 and the period from December 20, 2019 (commencement of operations) through December 31, 2019
DFA VA Short-Term Fixed Institutional Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from January 29, 2021 (commencement of operations) through December 31, 2021
DFA VA US Large Value Institutional Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from January 29, 2021 (commencement of operations) through December 31, 2021
DFA VA US Targeted Value Institutional Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from March 30, 2020 (commencement of operations) through December 31, 2020
Fidelity® VIP Bond Index Investor Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from January 29, 2021 (commencement of operations) through December 31, 2021
Fidelity® VIP Bond Index Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 9, 2020 (commencement of operations) through December 31, 2020
Fidelity® VIP Contrafund® Initial Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020 and the period from December 20, 2019 (commencement of operations) through December 31, 2019
Fidelity® VIP Contrafund® Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP Freedom 2010 Portfolio℠ Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP Freedom 2015 Portfolio℠ Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP Freedom 2020 Portfolio℠ Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP Freedom 2025 Portfolio℠ Initial Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from November 3, 2021 (commencement of operations) through December 31, 2021
Fidelity® VIP Freedom 2025 Portfolio℠ Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP Freedom 2030 Portfolio℠ Initial Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 28, 2020 (commencement of operations) through December 31, 2020
Fidelity® VIP Freedom 2030 Portfolio℠ Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP Freedom 2035 Portfolio℠ Initial Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from February 10, 2020 (commencement of operations) through December 31, 2020
Fidelity® VIP Freedom 2035 Portfolio℠ Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)

APPENDIX A (Continued)

 

Variable Account Comprising the
Separate Account		 Statement of Operations Statement of Changes in Net Assets Financial Highlights
Fidelity® VIP Freedom 2045 Portfolio℠ Initial Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 21, 2020 (commencement of operations) through December 31, 2020
Fidelity® VIP Freedom 2045 Portfolio℠ Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP Freedom 2055 Portfolio℠ Initial Class For the year ended December 31, 2023 For the year ended December 31, 2023, and the period from September 29, 2022 (commencement of operations) through December 31, 2022
Fidelity® VIP Freedom Income Portfolio℠ Initial Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 15, 2020 (commencement of operations) through December 31, 2020
Fidelity® VIP Freedom Income Portfolio℠ Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP Government Money Market Service Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP Growth Initial Class For the year ended December 31, 2023 For the year ended December 31, 2023, and the period from February 23, 2022 (commencement of operations) through December 31, 2022
Fidelity® VIP Growth Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP International Index Investor Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from January 8, 2021 (commencement of operations) through December 31, 2021
Fidelity® VIP International Index Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 13, 2019 (commencement of operations) through December 31, 2019
Fidelity® VIP Mid Cap Initial Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 9, 2020 (commencement of operations) through December 31, 2020
Fidelity® VIP Mid Cap Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Fidelity® VIP Total Market Index Investor Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from January 8, 2021 (commencement of operations) through December 31, 2021
Fidelity® VIP Total Market Index Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 7, 2020 (commencement of operations) through December 31, 2020
Fidelity® VIP Value Strategies Service Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Templeton Foreign VIP Class 1 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 27, 2020 (commencement of operations) through December 31, 2020
Templeton Foreign VIP Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Templeton Global Bond VIP Class 1 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 13, 2019 (commencement of operations) through December 31, 2019
Templeton Global Bond VIP Class 2 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Goldman Sachs VIT Multi-Strategy Alternatives Institutional Shares For the period March 6, 2023 (commencement of operations) through December 31, 2023
Janus Henderson Enterprise Institutional Shares For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 31, 2019 (commencement of operations) through December 31, 2019

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)

APPENDIX A (Continued)

 

Variable Account Comprising the Separate Account Statement of Operations Statement of Changes in Net Assets Financial Highlights
Janus Henderson Enterprise Service Shares For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Janus Henderson Overseas Institutional Shares For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from February 28, 2020 (commencement of operations) through December 31, 2020
Janus Henderson Overseas Service Shares For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Lazard Retirement Global Dynamic Multi-Asset Investor Shares For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from March 16, 2021 (commencement of operations) through December 31, 2021
Lazard Retirement Global Dynamic Multi-Asset Service Shares For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Lazard Retirement International Equity Service Shares For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
ClearBridge Variable Aggressive Growth - Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 21, 2020 (commencement of operations) through December 31, 2020
ClearBridge Variable Aggressive Growth - Class II For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
ClearBridge Variable Mid Cap - Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 7, 2020 (commencement of operations) through December 31, 2020
ClearBridge Variable Mid Cap - Class II For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
ClearBridge Variable Small Cap Growth - Class I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from May 20, 2021 (commencement of operations) through December 31, 2021
Western Asset Variable Global High Yield Bond - Class I For the year ended December 31, 2023 For the year ended December 31, 2023, and the period from September 1, 2022 (commencement of operations) through December 31, 2022
Western Asset Variable Global High Yield Bond - Class II For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Lord Abbett Bond Debenture Class VC For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Lord Abbett Developing Growth Class VC For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Lord Abbett Fundamental Equity Class VC For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Lord Abbett Total Return Class VC For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
M Capital Appreciation For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
M International Equity For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
M Large Cap Growth For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
M Large Cap Value For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
MFS® New Discovery Series - Initial Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 13, 2019 (commencement of operations) through December 31, 2019
MFS® New Discovery Series - Service Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)

APPENDIX A (Continued)

 

Variable Account Comprising the
Separate Account		 Statement of Operations Statement of Changes in Net Assets Financial Highlights

MFS® Total Return Series -

Initial Class

 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from January 8, 2020 (commencement of operations) through December 31, 2020
MFS® Utilities Series - Initial Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from February 24, 2020 (commencement of operations) through December 31, 2020
MFS® Utilities Series - Service Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
MFS® Value Series - Initial Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 13, 2019 (commencement of operations) through December 31, 2019
MFS® Value Series - Service Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023

MFS® Government Securities - Initial Class

 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022 and the period from May 19, 2021 (commencement of operations) through December 31, 2021

MFS® Research International - Initial Class

 For the year ended December 31, 2023 For the year ended December 31, 2023 and for the period September 29, 2022 (commencement of operations) through December 31, 2022

MFS® Blended Research Small Cap Equity - Initial Class

 For the year ended December 31, 2023 For the year ended December 31, 2023 and for the period February 23, 2022 (commencement of operations) through December 31, 2022
MFS® Global Real Estate - Initial Class For the year ended December 31, 2023 For the year ended December 31, 2023 and for the period November 22, 2022 (commencement of operations) through December 31, 2022

Neuberger Berman Sustainable Equity Class I

 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023

PIMCO CommodityRealReturn® Strategy - Institutional Class

 For the year ended December 31, 2023 For the year ended December 31, 2023, and the period from December 20, 2022 (commencement of operations) through December 31, 2022

PIMCO Global Managed Asset Allocation - Advisor Class

 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023

PIMCO Global Managed Asset Allocation - Institutional Class

 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from March 31, 2020 (commencement of operations) through December 31, 2020

PIMCO Income - Administrative Class

 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Royce Micro-Cap Service Class For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023

State Street Total Return V.I.S. Class 3

 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
T. Rowe Price Blue Chip Growth - I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 5, 2019 (commencement of operations) through December 31, 2019
T. Rowe Price Blue Chip Growth - II For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
T. Rowe Price Equity Income - I For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2021, 2022, 2020, and the period from December 5, 2019 (commencement of operations) through December 31, 2019
T. Rowe Price Equity Income - II For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023

VanEck VIP Global Resources

Initial Class

 For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For each of the five years in the period ended December 31, 2023
Vanguard® VIF Global Bond Index For the period May 17, 2023 (commencement of operations) through December 31, 2023

 

SA-93

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)

APPENDIX A (Continued)

 

Variable Account Comprising the
Separate Account		 Statement of Operations Statement of Changes in Net Assets Financial Highlights
Vanguard® VIF High Yield Bond For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, and the period from January 13, 2021 (commencement of operations) through December 31, 2021
Vanguard® VIF Mid-Cap Index For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, 2020, and the period from December 20, 2019 (commencement of operations) through December 31, 2019
Vanguard® VIF Real Estate Index For the year ended December 31, 2023 For each of the two years in the period ended December 31, 2023 For the year ended December 31, 2023, 2022, 2021, and the period from February 3, 2020 (commencement of operations) through December 31, 2020
Vanguard® VIF Total Bond Market Index For the year ended December 31, 2023 For the period September 2, 2022 (commencement of operations) through December 31, 2023
Vanguard® VIF Total Stock Market Index For the year ended December 31, 2023 For the period September 1, 2022 (commencement of operations) through December 31, 2023

 

SA-94

 

 

 

 

PACIFIC LIFE INSURANCE COMPANY

 

Financial Statements - Statutory Basis

as of December 31, 2023 and 2022 and

for the years ended December 31, 2023, 2022 and 2021,

Supplemental Schedule of Selected Financial Data

as of and for the year ended December 31, 2023,

Supplemental Summary Investment Schedule,

Supplemental Schedule of Investment Risk Interrogatories,

and Supplemental Schedule of Reinsurance Disclosures

as of December 31, 2023

and Independent Auditor's Report

 

 

Deloitte & Touche LLP
695 Town Center Drive
Suite 1000
Costa Mesa, CA 92626
USA

Tel:    714 436 7100
Fax:   714 436 7200
www.deloitte.com

INDEPENDENT AUDITOR'S REPORT

 

Pacific Life Insurance Company:

 

Opinions

 

We have audited the statutory-basis financial statements of Pacific Life Insurance Company (the "Company"), which comprise the statements of admitted assets, liabilities, and capital and surplus - statutory basis as of December 31, 2023 and 2022, and the related statements of operations - statutory basis, capital and surplus - statutory basis, and cash flows - statutory basis for each of the three years in the period ended December 31, 2023, and the related notes to the statutory-basis financial statements (collectively referred to as the “statutory-basis financial statements”).

 

Unmodified Opinion on Statutory-Basis of Accounting

 

In our opinion, the accompanying statutory-basis financial statements present fairly, in all material respects, the admitted assets, liabilities, and capital and surplus of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in accordance with the accounting practices prescribed or permitted by the Nebraska Department of Insurance as described in Note 1.

 

Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

 

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America section of our report, the statutory-basis financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2023 and 2022, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2023.

 

Basis for Opinions

 

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Statutory- Basis Financial Statements section of our report. We are required to be independent of the Company, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

 

Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

 

As described in Note 1 to the statutory-basis financial statements, the statutory-basis financial statements are prepared by the Company using the accounting practices prescribed or permitted by the Nebraska Department of Insurance, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the Nebraska Department of Insurance. The effects on the statutory-basis financial statements of the variances between the statutory-basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material and pervasive.

 

Responsibilities of Management for the Statutory-Basis Financial Statements

 

Management is responsible for the preparation and fair presentation of the statutory-basis financial statements in accordance with the accounting practices prescribed or permitted by the Nebraska Department of Insurance. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of statutory-basis financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the statutory-basis financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that the statutory-basis financial statements are issued.

 

Auditor’s Responsibilities for the Audit of the Statutory-Basis Financial Statements

 

Our objectives are to obtain reasonable assurance about whether the statutory-basis financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the statutory-basis financial statements.

 

In performing an audit in accordance with GAAS, we:

 

●Exercise professional judgment and maintain professional skepticism throughout the audit.

 

●Identify and assess the risks of material misstatement of the statutory-basis financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the statutory-basis financial statements.

 

●Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.

 

●Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the statutory-basis financial statements.

 

●Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

 

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

 

Report on Supplemental Schedules

 

Our 2023 audit was conducted for the purpose of forming an opinion on the 2023 statutory-basis financial statements as a whole. The supplemental schedule of selected financial data, the supplemental summary investment schedule, the supplemental schedule of investment risk interrogatories, and the supplemental schedule of reinsurance disclosures as of and for the year ended December 31, 2023 are presented for purposes of additional analysis and are not a required part of the 2023 statutory- basis financial statements. These schedules are the responsibility of the Company's management and were derived from and relate directly to the underlying accounting and other records used to prepare the statutory-basis financial statements. Such schedules have been subjected to the auditing procedures applied in our audit of the 2023 statutory-basis financial statements and certain additional procedures, including comparing and reconciling such schedules directly to the underlying accounting and other records used to prepare the statutory-basis financial statements or to the statutory-basis financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, such schedules are fairly stated in all material respects in relation to the 2023 statutory-basis financial statements as a whole.

 

 

 

March 19, 2024

2

 

 

Pacific Life Insurance Company

 

S T A T E M E N T S   O F   A D M I T T E D   A S S E T S,

L I A B I L I T I E S   A N D   C A P I T A L   A N D   S U R P L U S - S T A T U T O R Y   B A S I S

 

   December 31, 
(In Millions, except share data)  2023   2022 
ADMITTED ASSETS        
Bonds  $76,921   $73,845 
Preferred stocks  1   4 
Common stocks  687   669 
Mortgage loans  18,648   19,028 
Real estate  120   153 
Cash, cash equivalents and short-term investments  3,018   888 
Contract loans  8,187   7,597 
Derivatives  2,530   1,434 
Securities lending reinvested collateral assets  3,096   2,828 
Other invested assets  10,710   10,026 
Investment income due and accrued  957   908 
Net deferred tax asset  746   334 
Other assets  2,038   1,965 
Separate account assets  65,576   58,636 
         
TOTAL ADMITTED ASSETS  $193,235   $178,315 
         
LIABILITIES AND CAPITAL AND SURPLUS        
Liabilities:        
Aggregate reserves  $72,346   $79,459 
Liability for deposit-type contracts  22,005   18,585 
Transfers to separate accounts due or accrued, net  (492)  (685)
Funds held under coinsurance  11,620   234 
Other liabilities  8,965   9,213 
Asset valuation reserve  1,423   1,171 
Separate account liabilities  65,576   58,636 
TOTAL LIABILITIES  181,443   166,613 
Capital and Surplus:        
Common stock - $50 par value; 600,000 shares authorized, issued and outstanding  30   30 
Paid-in surplus  2,536   2,536 
Other surplus adjustments  83   91 
Special surplus adjustments  231   328 
Unassigned surplus  7,457   7,129 
Surplus notes  1,455   1,588 
TOTAL CAPITAL AND SURPLUS  11,792   11,702 
         
TOTAL LIABILITIES AND CAPITAL AND SURPLUS  $193,235   $178,315 

 

See Notes to Financial Statements - Statutory Basis

3

 

Pacific Life Insurance Company

 

S T A T E M E N T S   O F   O P E R A T I O N S - S T A T U T O R Y   B A S I S

 

   Years Ended December 31, 
(In Millions)  2023   2022   2021 
REVENUES            
Premiums and annuity considerations  $3,955   $14,298   $13,984 
Net investment income  3,818   3,401   3,276 
Reserve adjustments on reinsurance ceded  (526)  (450)  (677)
Separate account fees  1,329   1,324   1,365 
Other income  169   157   287 
TOTAL REVENUES  8,745   18,730   18,235 
             
BENEFITS AND EXPENSES            
Current and future policy benefits  7,702   15,322   16,692 
Commission expense  1,078   1,057   1,000 
Operating expenses  1,177   1,210   1,084 
TOTAL BENEFITS AND EXPENSES  9,957   17,589   18,776 
             
NET GAIN (LOSS) BEFORE FEDERAL INCOME TAXES  (1,212)  1,141   (541)
Federal income tax expense (benefit)  (26)  9   210 
             
NET GAIN (LOSS) FROM OPERATIONS  (1,186)  1,132   (751)
Net realized capital gains (losses) less tax  1,237   (981)  1,612 
             
NET INCOME  $51   $151   $861 

 

See Notes to Financial Statements - Statutory Basis

4

 

Pacific Life Insurance Company

 

S T A T E M E N T S   O F   C A P I T A L   A N D   S U R P L U S - S T A T U T O R Y   B A S I S

 

(In Millions)  Common
Stock		   Paid-in
Surplus		   Other Surplus
Adjustments		   Special Surplus
Adjustments		   Unassigned
Surplus		   Surplus
Notes		   Total 
BALANCES, JANUARY 1, 2021  $30   $1,836   $131   $—   $7,693   $1,674   $11,364 
Net income                  861       861 
Change in net unrealized capital gains less tax                  318       318 
Change in net deferred income tax                  88       88 
Change in nonadmitted assets                  (84)      (84)
Change in asset valuation reserve                  (732)      (732)
Dividend to parent                  (450)      (450)
Surplus contributed to separate accounts                  (68)      (68)
Other changes in surplus in separate accounts                  68       68 
Other surplus adjustment for derivatives          (9)              (9)
Change in other surplus transactions                  (4)  1   (3)
BALANCES, DECEMBER 31, 2021  30   1,836   122   —   7,690   1,675   11,353 
Net income (loss)              254   (103)      151 
Change in net unrealized capital gains (losses) less tax              74   (247)      (173)
Change in net deferred income tax                  204       204 
Change in nonadmitted assets                  (445)      (445)
Capital contribution from parent      700                   700 
Change in asset valuation reserve                  30       30 
Surplus contributed to separate accounts                  (194)      (194)
Other changes in surplus in separate accounts                  194       194 
Other surplus adjustment for derivatives          (31)              (31)
Net change in surplus notes                      (87)  (87)
BALANCES, DECEMBER 31, 2022  30   2,536   91   328   7,129   1,588   11,702 
Net income (loss)              (108)  159       51 
Change in net unrealized capital gains (losses) less tax              (32)  113       81 
Change in net deferred income tax                  94       94 
Change in nonadmitted assets                  233       233 
Change in asset valuation reserve                  (252)      (252)
Surplus contributed to separate accounts                  (198)      (198)
Other changes in surplus in separate accounts                  198       198 
Other surplus adjustment for derivatives          (8)              (8)
Prior period adjustment              26   (5)      21 
Net change in surplus notes                      (133)  (133)
Change in other surplus transactions              17   (14)      3 
BALANCES, DECEMBER 31, 2023  $30   $2,536   $83   $231   $7,457   $1,455   $11,792 

 

See Notes to Financial Statements - Statutory Basis

5

 

Pacific Life Insurance Company

 

S T A T E M E N T S   O F   C A S H   F L O W S - S T A T U T O R Y   B A S I S

 

   Years Ended December 31, 
(In Millions)  2023   2022   2021 
CASH FLOWS FROM OPERATING ACTIVITIES            
Premiums collected, net of reinsurance  $15,354   $14,258   $13,658 
Net investment income  3,826   3,296   3,245 
Other income  1,115   1,321   1,073 
Benefits and loss related payments  (14,755)  (11,340)  (11,645)
Net transfers (to) from separate accounts  40   (285)  (261)
Commissions, expenses paid and other deductions  (2,304)  (2,190)  (1,998)
Dividends paid to policyholders  (8)  (8)  (9)
Federal income taxes (paid) recovered, net  4   358   (215)
NET CASH PROVIDED BY OPERATING ACTIVITIES  3,272   5,410   3,848 
             
CASH FLOWS FROM INVESTING ACTIVITIES            
Proceeds from investments sold, matured or repaid            
Bonds  6,211   8,369   8,034 
Stocks  124   138   50 
Mortgage loans  984   1,058   1,311 
Other invested assets  5,634   2,998   2,388 
Miscellaneous proceeds  2,705   2,182   2,063 
Cost of investments acquired            
Bonds  (9,359)  (15,342)  (15,960)
Stocks  (66)  (182)  (59)
Mortgage loans  (790)  (4,183)  (2,154)
Other invested assets  (6,232)  (6,571)  (3,280)
Miscellaneous applications  (1,986)  (2,427)  (1,881)
Net increase (decrease) in contract loans  (590)  (108)  201 
NET CASH USED IN INVESTING ACTIVITIES  (3,365)  (14,068)  (9,287)
(Continued)            

 

See Notes to Financial Statements - Statutory Basis

6

 

Pacific Life Insurance Company

 

S T A T E M E N T S   O F   C A S H   F L O W S - S T A T U T O R Y   B A S I S

 

   Years Ended December 31, 
(In Millions)  2023   2022   2021 
(Continued)            
CASH FLOWS FROM FINANCING AND MISCELLANEOUS ACTIVITIES            
Net deposits on deposit-type contracts  $2,975   $7,180   $4,241 
Net change in borrowed funds          (49)
Net change in surplus notes  (134)  (85)    
Contribution from parent      700     
Dividend to parent          (303)
Other cash provided (applied)  (618)  758   543 
NET CASH PROVIDED BY FINANCING AND MISCELLANEOUS ACTIVITIES  2,223   8,553   4,432 
             
Net change in cash, cash equivalents and short-term investments  2,130   (105)  (1,007)
Cash, cash equivalents and short-term investments, beginning of year  888   993   2,000 
             
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS, END OF YEAR  $3,018   $888   $993 
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION            
Interest paid  $112   $111   $100 
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION FOR NON-CASH TRANSACTIONS
Bonds disposed and acquired  $629   $947   $747 
Stocks disposed and acquired  184   515   27 
Federal tax credits received  257   239   22 
Bonds transferred to other invested assets  123   140     
Mortgage loans disposed and acquired      16   104 
Premium tax credits received  5   6   8 
Bond interest in-kind received  1   2   4 
Assets in-kind received as deposits          515 
Assets in-kind received as premiums, net of amounts transferred to the separate account          245 
Bond dividend paid to parent          147 
Reinsurance transaction  11,349         
Assets in-kind received due to sale of Pacific Asset Management, LLC  169         
Bond dividend received from subsidiary          20 

Bonds converted to stocks

 

Other invested assets transferred to affiliated fund

  1,043       10 
Interest purchased received as premiums          7 
Assets-in-kind transferred to Pacific Life & Annuity Company  49         

 

See Notes to Financial Statements - Statutory Basis

7

 

 

Pacific Life Insurance Company

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S - S T A T U T O R Y   B A S I S

 

 

1.NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

NATURE OF OPERATIONS

 

Pacific Life Insurance Company (Pacific Life or the Company) was established in 1868 and is domiciled in the State of Nebraska as a stock life insurance company. The Company is an indirect subsidiary of Pacific Mutual Holding Company (PMHC), a Nebraska mutual holding company, and a wholly owned subsidiary of Pacific LifeCorp, an intermediate Delaware stock holding company.

 

The Company and its subsidiaries have primary business operations consisting of life insurance, annuities, and reinsurance. The Company's primary business operations provide life insurance products, individual annuities and mutual funds, and offer a variety of investment products and services to individuals and businesses. The top geographic locations in the United States for statutory premiums and annuity considerations, and deposits were California, Texas, Missouri, and Florida representing 13%, 9%, 8%, and 8%, respectively, of total statutory premiums and annuity considerations, and deposits for the year ended December 31, 2023. No other jurisdiction accounted for more than 5% of the total.

 

BASIS OF PRESENTATION

 

The Company prepares its financial statements - statutory basis in accordance with accounting practices prescribed or permitted by the Nebraska Department of Insurance (NE DOI). The National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual (NAIC SAP) has been adopted as a component of prescribed or permitted practices by the NE DOI. Prescribed statutory accounting practices include state laws and regulations. Additionally, the Director of the NE DOI has the right to permit other specific practices, which deviate from prescribed practices.

 

The NE DOI has approved a permitted accounting practice, effective January 1, 2022, allowing the Company to calculate the policy reserves for funding agreements based on a methodology that differs from the NAIC SAP. Policy reserves for funding agreements are calculated based on Statement of Statutory Accounting Principle (SSAP) No. 52, Deposit-Type Contracts, and the reserving methodologies in Appendices A-820 and A-822 which utilizes a reference rate in the valuation interest rate calculation based on an average of a historical twelve-month period ending on June 30 of the calendar year of issue or purchase. In the permitted practice, the Company utilizes a reference rate in the valuation interest rate calculation based on the day of the funding agreement issuance which results in a policy reserve less than or equal to the NAIC SAP policy reserve.

8

 

The following table reconciles the Company's net income for the years ended December 31, 2023, 2022 and 2021 and statutory capital and surplus as of December 31, 2023 and 2022 between NAIC SAP and practices prescribed or permitted by the NE DOI:

 

   Years Ended December 31, 
   2023   2022   2021 
   (In Millions)     
Net income, Nebraska basis  $51   $151   $861 
State permitted practices that are an increase (decrease) from NAIC SAP Change in policy reserves  21   20     
Net income, NAIC SAP  $30   $131   $861 

 

   December 31,     
   2023   2022     
   (In Millions)     
Statutory capital and surplus, Nebraska basis  $11,792   $11,702     
State permitted practices that are an increase (decrease) from NAIC SAP Change in policy reserves  37   20     
Statutory capital and surplus, NAIC SAP  $11,755   $11,682     

 

NAIC SAP and accounting practices prescribed or permitted by the NE DOI differ in certain respects, which in some cases are materially different from accounting principles generally accepted in the United States of America (U.S. GAAP) (Note 2).

 

In October 2022, Pacific Life announced its agreement to sell its third-party credit asset management firm, Pacific Asset Management, LLC, (PAM), whose clients include Pacific Funds Series Trust, to Aristotle Capital Management, LLC and on April 17, 2023, Pacific Life completed the sale.

 

On September 15, 2023, the Company signed an indemnity reinsurance agreement with Hannover Life Reassurance Company of America (Bermuda) LTD to cede risks under certain indexed universal life insurance policies issued by the Company, effective December 31, 2023. Upon inception of the agreement, the Company recognized a funds held under coinsurance balance and a reduction to aggregate reserves. See Note 9.

 

The Company has evaluated events subsequent to December 31, 2023 through the date the financial statements - statutory basis were available to be issued and has concluded that no events have occurred that require adjustments to these financial statements - statutory basis.

 

USE OF ESTIMATES

 

The preparation of financial statements - statutory basis in conformity with accounting practices prescribed or permitted by regulatory authorities requires management to make estimates and assumptions that affect the reported amounts of admitted assets and liabilities. It also requires disclosure of contingent assets and liabilities at the date of the financial statements - statutory basis and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

9

 

RECONCILIATION FROM ANNUAL REPORT TO THE AUDITED FINANCIAL STATEMENTS - STATUTORY BASIS

 

Subsequent to the filing of the Company's 2022 Annual Statement, the Company determined the balances for investment income due and accrued and aggregate write-in for liabilities included in other liabilities were not properly presented as of December 31, 2022, which resulted in the reconciliations included in the table below. There was no impact to surplus, net income, or cash flows.

 

   Annual Report   Change   Audited Financial
Statements		 
       (In Millions)     
Statement of Admitted Assets, Liabilities and Capital and Surplus - Statutory Basis     
December 31, 2022:            
Assets:            
Investment income due and accrued  $1,390   ($482)  $908 
             
Total assets  178,797   (482)  178,315 
             
Liabilities:
Other liabilities		  $9,929   ($482)  $9,447 
             
Total liabilities  167,095   (482)  166,613 

 

ACCOUNTING CHANGES, CORRECTIONS OF ERRORS AND RECLASSIFICATIONS

 

In January 2024, the NAIC adopted INT 23-04T, Scottish Re Life Reinsurance Liquidation Questions (INT 23-04T), which addresses accounting and reporting for reinsurance receivables from Scottish Re's estate including impairment analysis and admissibility of reinsurance recoverables. See Note 9.

 

Effective August 2023, the Company adopted revisions in Interpretation 23-01, Net Negative (Disallowed) Interest Maintenance Reserve (INT 23-01) that provides amendments to SSAP No. 7, Asset Valuation Reserve and Interest Maintenance Reserve, and the annual statement instructions for the reporting of net negative (disallowed) Interest Maintenance Reserve (IMR) which provides optional, limited-time guidance allowing the admittance of net negative (disallowed) IMR up to 10% of adjusted capital and surplus. As detailed within the revisions, this change will be effective until December 31, 2025, and automatically nullified on January 1, 2026, but the effective date can be adjusted. Net negative (disallowed) IMR totals $18 million in aggregate and is allocated between the General Account and insulated Separate Account. The amount of negative IMR admitted in the General Account is $17 million and reported as an asset in the insulated Separate Account is $1 million. As of December 31, 2023, the calculated adjusted capital and surplus totals $11.0 billion. The percentage of admitted net negative (disallowed) IMR compared to the adjusted capital and surplus is 0.17% (total includes admitted General and Separate Account balance).

 

The Company attests to the following statements:

 

•Fixed income investments generating IMR losses comply with the reporting entity’s documented investment or liability management policies; there have been no deviations from this statement during 2023.

 

•IMR losses for fixed income related derivatives are all in accordance with prudent and documented risk management procedures, in accordance with a reporting entity’s derivative use plans and reflect symmetry with historical treatment in which unrealized derivative gains were reversed to IMR and amortized in lieu of being recognized as realized gains upon derivative termination.

 

•Asset sales that were generating admitted negative IMR were not compelled by liquidity pressures (e.g., to fund significant cash outflows including, but not limited to excess withdrawals and collateral calls).

10

 

During the fourth quarter of 2022, the NAIC revised Interpretation 22-02, Third Quarter 2022 through First Quarter 2023 Reporting of the Inflation Reduction Act – Corporate Alternative Minimum Tax (INT 22-02), that for a limited time provides a partial exception to SSAP No. 101, Income Taxes, and SSAP No. 9, Subsequent Events. Under INT 22-02, changes in estimates related to Corporate Alternative Minimum Tax (CAMT) that arise from the Inflation Reduction Act need not be recognized in the three months ended March 31, 2023 financial statements. In September 2023, the NAIC issued Inflation Reduction Act - Corporate Alternative Minimum Tax INT 23-03 (INT 23-03) which provides Corporate Alternative Minimum Tax (CAMT) reporting guidance effective for the year-end 2023 financial statements and periods thereafter. See Note 6.

 

Variable annuity contracts are subject to the Valuation Manual section VM-21 (VM-21). The Company determined a portion of the change in derivative fair value for derivatives hedging variable annuity guarantees that did not offset the designated portion of the VM-21 liability was not deferred during the year ended December 31, 2022. During 2023, the cumulative adjustment of $26 million, was recorded as an increase to the deferred asset, net derivative losses from variable annuity hedge, reported in other assets and an increase of $21 million, net of tax, to unassigned surplus and corresponding reallocation to variable annuity hedge reported in special surplus adjustments. In Note 5, the adjustment to the deferred asset was included in the current year deferred recognition.

 

During 2020, the NAIC issued Interpretation 20-01 to provide statutory accounting and reporting guidance for the adoption of Accounting Standards Update 2020-04 Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting issued by the Financial Accounting Standards Board. This Interpretation adopts, with minor modification, the U.S. GAAP adopted guidance, which provides optional expedients and exceptions for applying current accounting guidance to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met, through December 31, 2024. The Company will continue to evaluate its options under this Interpretation through December 31, 2024.

 

Effective December 31, 2022, the Company adopted revisions to SSAP No. 43R, Residual Tranches, which clarified that residual tranches shall be valued at the lower of amortized cost or fair value and shall be reported as other invested assets rather than bonds on the statements of admitted assets, liabilities and capital and surplus - statutory basis. The impact of this adoption on the Company's financial statements was immaterial.

 

FUTURE ADOPTION OF ACCOUNTING PRINCIPLES

 

During 2023, the NAIC adopted new statutory accounting principal (SAP) revisions related to the principles-based bond project. These changes are primarily captured in amendments to SSAP No. 26R – Bonds and SSAP No. 43R – Loan-Backed and Structured Securities, which refine guidance for the principles-based bond project and will become effective January 1, 2025.

 

INVESTMENTS AND DERIVATIVE INSTRUMENTS

 

Bonds not backed by other loans are generally stated at amortized cost using the effective interest method. Bonds, including loan- backed and structured securities (LBASS), with a NAIC designation of 6 are stated at the lower of amortized cost or fair value with changes in fair value recorded in unassigned surplus as a change in net unrealized capital gains (losses) less tax. Perpetual bonds that do not possess or no longer possess an effective call option shall be reported at fair value regardless of NAIC designation, otherwise reported at amortized cost.

 

LBASS are generally stated at amortized cost using the effective interest method. Income is determined considering anticipated cash flows based on industry prepayment models and internal estimates. These assumptions are consistent with the current interest rate and economic conditions at the time of valuation. For LBASS purchased with high credit quality and fixed interest rates, the effective yield is recalculated on a retrospective basis. For all other LBASS, including those where cash flows are deemed other than temporarily impaired, effective yield is recalculated on a prospective basis.

 

Preferred stocks are generally stated at amortized cost. Preferred stocks designated as low quality, lower quality and in or near default are stated at the lower of amortized cost or fair value with changes in fair value recorded in unassigned surplus as a change in net unrealized capital gains (losses) less tax. Perpetual preferred stocks are reported at fair value, not to exceed any current effective call price, with changes in fair value recorded in unassigned surplus as a change in net unrealized capital gains (losses) less tax.

 

Investments in unaffiliated common stocks are valued at fair value with changes in fair value recorded in unassigned surplus as a change in net unrealized capital gains (losses) less tax.

11

 

The Company has certain investments, including financial instruments, denominated in currencies other than the U.S. dollar. All assets and liabilities denominated in foreign currencies are remeasured at year end exchange rates, while revenue and expenses are measured at the transaction date and recorded in net unrealized capital gains (losses) less tax. The Company primarily uses foreign currency interest rate swaps to manage its foreign exchange risk.

 

Other than temporary impairment (OTTI) evaluation is a quantitative and qualitative process subject to significant estimates and management judgment. The Company has controls and procedures in place to monitor securities and identify those that are subject to greater analysis for OTTI. The Company has an investment impairment committee that reviews and evaluates investments for potential OTTI at least on a quarterly basis.

 

In determining whether a decline in value is other than temporary, the Company considers several factors including, but not limited to the following: the extent and duration of the decline in value, the reasons for the decline (credit event, currency or interest rate related including spread widening), the Company’s inability or lack of intent to retain the investment for a period of time sufficient to recover the amortized cost basis and the performance of the security’s underlying collateral and projected future cash flows. In projecting future cash flows, the Company incorporates inputs from third-party sources and applies reasonable judgment in developing assumptions used to estimate the probability and timing of collecting all contractual cash flows.

 

The Company writes down all investments that are deemed to be other than temporarily impaired in the period the securities are deemed to be impaired. The Company records an OTTI to fair value for common stock, preferred stock, and bonds, except for LBASS, which are written down to the present value of cash flows expected to be collected, discounted at the security's effective interest rate. The Company records an OTTI to fair value for any investment that the Company intends to sell or would be required to sell prior to recovery at a realized loss. The Company records OTTI in net realized capital gains (losses) less tax.

 

Mortgage loans on real estate are carried at their unpaid principal balance, net of deferred origination fees and impairment losses. Mortgage loans on real estate do not include accrued interest, which is included in investment income due and accrued. The Company generally recognizes interest income on its impaired loans upon receipt.

 

Investment real estate is valued at the lower of depreciated cost or market, less related mortgage debt, cumulative write downs and valuation adjustments. Depreciation of investment real estate is computed using the straight line method over estimated useful lives, which range from 5 to 30 years. Real estate investments are evaluated for impairment based on the future estimated undiscounted cash flows expected to be received during the estimated holding period. When the future estimated undiscounted cash flows are less than the current carrying value of the property (gross cost less accumulated depreciation), the property is considered impaired and is written-down to its fair value through net realized capital gains (losses) less tax.

 

Short-term investments are stated at amortized cost and approximate fair value. Short-term investments include, but are not limited to, bonds and commercial paper whose maturities at the time of purchase were greater than three months and less than or equal to one year. Cash and cash equivalents are stated at amortized cost and approximate fair value. Cash and cash equivalents include money market instruments, cash on deposit and highly liquid debt instruments with maturities of three months or less from purchase date.

 

Contract loans are carried at unpaid principal balances.

 

Other invested assets are generally carried at values based on the underlying audited equity of the investee as determined in accordance with U.S. GAAP with changes in value recorded in unassigned surplus as a change in net unrealized capital gains (losses) less tax. Other invested assets primarily consist of investments in joint ventures, hedge funds, and private equity funds. These investments include affiliated companies as well as those where the Company has minor ownership interests. An impairment occurs if it is probable that the Company will be unable to recover the carrying amount of the investment. The investment is written down to fair value as the new cost basis, and OTTI is recorded in net realized capital gains (losses) less tax.

 

The Company applies hedge accounting as prescribed by SSAP No. 86, Derivatives, by designating derivative instruments as either fair value or cash flow hedges on the inception date of the hedging relationship. At the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction. In this documentation, the Company specifically identifies the asset, liability, firm commitment, or forecasted transaction that has been designated as the hedged item and states how the hedging instrument is expected to hedge the risks related to the hedged item. The Company formally assesses and measures effectiveness of its hedging relationships both at the hedge inception date and on an ongoing basis in accordance with its risk management policy.

12

 

Derivative instruments used in hedging transactions that meet the criteria of a highly effective hedge are considered effective hedges and are reported in the financial statements - statutory basis in a manner consistent with the hedged asset or liability (amortized cost or fair value). Changes in the carrying value of derivatives that qualify for hedge accounting are recorded consistently with how the changes in the carrying value of the hedged asset or liability are recorded. For foreign currency swaps, changes in fair value attributable to changes in foreign exchange rates are reflected as adjustments to unassigned surplus as a change in net unrealized capital gains (losses) less tax consistent with the hedged items.

 

To the extent the Company chooses not to designate a derivative as a hedge or the designated derivative no longer meets the criteria of an effective hedge, the derivative is accounted for at fair value with changes in fair value recorded in unassigned surplus as a change in net unrealized capital gains (losses) less tax. When these derivative instruments are terminated, the gains and losses are reported as net realized capital gains (losses) less tax.

 

Carrying value is calculated based on the gross derivative asset or liability position. If the carrying value of the derivative is positive, the amount is recorded in derivatives. If the carrying value of the derivative is negative, the amount is recorded in other liabilities. 

The Company’s receivable for the return of cash collateral pledged is recorded in other invested assets. The Company’s obligation to return cash collateral received is recorded in other liabilities.

 

Gains and losses on terminated derivative instruments that are hedging bonds are subject to the IMR. Gains and losses on terminated forward starting swap positions that are hedging anticipatory purchases of bonds are deferred to unearned investment income, included in other liabilities, if the effective date of the forward starting swap is beyond the current fiscal year. Once the effective date is within the current fiscal year, the gains and losses are transferred from unearned investment income to the IMR and amortized to net investment income over the life of the bond. Gains and losses on terminated derivative instruments that are hedging the surplus notes are recorded directly to surplus in other surplus adjustments and amortized as an increase in net investment income over the life of the surplus notes utilizing the effective interest method.

 

Periodic net settlements on derivatives designated as hedges are recorded on an accrual basis consistent with the hedged items and for hedging derivatives designated under SSAP No. 108, Derivatives Hedging Variable Annuity Guarantees, in net investment income. Periodic net settlements on derivatives not designated as hedging are recorded on an accrual basis in net investment income.

 

The Company also applies hedge accounting as prescribed by SSAP No. 108, Derivatives Hedging Variable Annuity Guarantees. Designated derivatives are reported at fair value and fair value fluctuations attributable to the hedged risk that offsets the current period change in the designated portion of the VM-21 reserve liability are reported in realized capital gains (losses) less tax. Fair value fluctuations attributable to the hedged risk that do not offset the current period change in the designated portion of the VM-21 reserve liability are recognized as a deferred asset (admitted) reported in other assets or other liabilities. An amount equal to the net deferred asset or liability must be allocated from unassigned surplus and presented separately as special surplus adjustments. The deferred asset or liability is amortized on a straight-line basis over a period not to exceed 10 years into net realized capital gains (losses) less tax with a corresponding reallocation from special surplus adjustments to unassigned funds (surplus). See Note 5.

 

The asset valuation reserve (AVR) is computed in accordance with a prescribed formula and is designed to stabilize surplus against valuation and credit-related losses for certain investments. Changes to the AVR are reported as direct additions to, or deductions from, unassigned surplus. The IMR results in the deferral of after tax realized capital gains and losses attributable to interest rate fluctuations on bonds and other investments. These capital gains and losses are amortized into net investment income over the remaining life of the investment sold. The negative IMR of $17 million was included in other assets as of December 31, 2023. The IMR of $56 million was included in other liabilities as of December 31, 2022.

 

Net investment income consists of interest, dividend, accretion income, net of amortization and investment expenses, partnership realized income, and periodic net settlements on derivatives. Interest income for bonds and redeemable preferred stock is recognized on an accrual basis. Dividend income for perpetual preferred stock and common stock is recognized as earned on the ex-dividend date. Amortization and accretion are determined by the effective interest method based on estimated principal repayments. Accrual of interest income is suspended, and any existing accrual balances are written off, for bonds that are in default or when it is probable the interest due and accrued is uncollectible. Prepayment penalties for bonds and prepayment premiums for mortgage loans are recorded as net investment income. Investment income from subsidiaries, controlled and affiliated (SCA) entities is described below. Interest expense on surplus notes is also recorded in net investment income.

13

 

The Company accrues interest income on impaired loans to the extent it is deemed collectible. If any interest income due and accrued is deemed uncollectible, interest accrual ceases and previously accrued amounts are written off. Accrued interest income more than 180 days past due deemed collectible on mortgage loans in default is nonadmitted. All other investment income due and accrued over 90 days past due is nonadmitted. Gross and admitted amounts for interest income due and accrued were $958 million and $957 million as of December 31, 2023, respectively.

 

Net realized capital gains (losses) less tax are determined on the specific identification method and are presented net of Federal income taxes and transfers to the IMR.

 

INFORMATION CONCERNING PARENT, SUBSIDIARIES AND AFFILIATES

 

Included in common stocks and other invested assets are the Company's SCA entities in which the Company, with its affiliates, holds a voting interest of 10% or more. The Company holds no investments in SCA entities that exceed 10% of admitted assets of the Company as of December 31, 2023 and 2022.

 

The Company carries its wholly owned State of Arizona domiciled life insurance common stock subsidiary, Pacific Life & Annuity Company (PL&A), based on PL&A’s underlying audited statutory surplus. PL&A’s carrying value was $545 million and $474 million as of December 31, 2023 and 2022, respectively. During the years ended December 31, 2023, 2022, and 2021, the Company made capital contributions in the form of bonds of $49 million, zero, and zero, respectively, to PL&A.

 

The Company carries its wholly owned State of Vermont domiciled special purpose financial insurance company subsidiaries, Pacific Alliance Reinsurance Company of Vermont (PAR Vermont) and Pacific Baleine Reinsurance Company (PBRC) based on their underlying audited statutory surplus. However, the audited statutory surplus of PAR Vermont and PBRC both include an admitted asset based on approved practices in Vermont. Under NAIC SAP, these assets are not considered admitted assets. 

Based on the nonadmission of these assets, the Company nonadmits the carrying values of PAR Vermont and PBRC for reporting. The nonadmitted carrying values of PAR Vermont and PBRC were $191 million and $130 million, respectively as of December 31, 2023. The nonadmitted carrying values of PAR Vermont and PBRC were $227 million and $187 million, respectively, as of December 31, 2022.

 

The Company has investments in mutual funds managed by affiliates. Investments in affiliated mutual funds are carried at fair value. See Note 4. Investments in affiliated bonds are generally valued at amortized cost except those with an NAIC designation of 6, which are reported at the lower of amortized cost or fair value.

 

The Company generally carries its investments in joint ventures, partnerships and limited liability companies (LLCs) based on the underlying audited U.S. GAAP equity of the investee as determined in accordance with U.S. GAAP, except as otherwise disclosed below. These investments include affiliated companies as well as those where the Company has minor ownership interests. The carrying value of non-insurance SCAs where an audit was not performed are nonadmitted.

 

Distributions to the Company from subsidiaries, reflecting net revenues and expenses, net of taxes, are recorded by the Company as net investment income, with a corresponding reduction to unassigned surplus, when dividends are declared to the extent they are not in excess of undistributed accumulated earnings. Any dividends declared in excess of the undistributed accumulated earnings are recorded as a return of capital which is a reduction of the investment. Any undistributed net revenue and expense, net of tax, is recorded to unassigned surplus as a change in net unrealized capital gains (losses) less tax.

 

Pacific Asset Holding LLC (PAH) is a wholly owned LLC subsidiary that invests in mortgage loans, commercial real estate properties and ventures, and other private equity investments. PAH is accounted for under SSAP No. 97 8.b.iii, Investments in Subsidiary, Controlled and Affiliated Entities, which requires it to be carried based on its audited U.S. GAAP equity, without any statutory adjustments. As of December 31, 2023 and 2022, PAH's carrying value was $4,239 million and $3,575 million, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company made capital contributions of $1,061 million, $1,486 million and $292 million, respectively, to PAH. Distributions from PAH to the Company in the form of cash included in net investment income were $212 million, $115 million, and $152 million during the years ended December 31, 2023, 2022, and 2021, respectively. Distributions recorded as a return of capital were $249 million, $22 million, and $125 million during the years ended December 31, 2023, 2022, and 2021, respectively

14

 

Pacific Life Fund Advisors LLC (PLFA) is a non-life insurance LLC subsidiary 99% owned by the Company and 1% owned by PL&A. PLFA is the investment adviser for the Pacific Select Fund and the Pacific Funds Series Trust (PFST). The Pacific Select Fund is the investment vehicle provided to the Company's variable life insurance policyholders and variable annuity contract owners. PFST is the investment vehicle for the Company's mutual fund products and other funds. As a result of the sale of PAM LLC, PLFA no longer receives investment advisory fees from PFST. Distributions from PLFA to the Company in the form of cash included in net investment income for the years ended December 31, 2023, 2022 and 2021 were $98 million, $99 million and $119 million, respectively. PLFA is carried based on its underlying audited U.S. GAAP equity. As of December 31, 2023 and 2022, PLFA’s carrying value was $49 million and $45 million, respectively.

 

The Company carries Pacific Select Distributors, LLC (PSD), a wholly owned non-life insurance LLC broker-dealer subsidiary, based on its underlying audited U.S. GAAP equity, adjusted to a statutory basis of accounting. As of December 31, 2023 and 2022, PSD’s carrying value was $35 million and $41 million, respectively. PSD primarily serves as the distributor of registered investment- related products and services, principally variable life and annuity contracts issued by the Company and PL&A. In connection with PSD’s distribution of these variable life and annuity contracts for the Company and PL&A, the Company incurred commission expense of $486 million, $497 million and $603 million during the years ended December 31, 2023, 2022 and 2021, respectively. A service plan was adopted by the Pacific Select Fund whereby the Pacific Select Fund pays PSD, as distributor of the funds, a service fee in connection with services rendered or procured for shareholders of the fund or their variable contract owners. These services may include, but are not limited to, payment of compensation to broker-dealers, including PSD itself, and other financial institutions and organizations, which assist in providing any of the services. From these service fees, PSD reimbursed the Company $69 million, $74 million and $86 million, included in commission expense, for paying trail commissions on its behalf for the years ended December 31, 2023, 2022 and 2021, respectively. PSD also offers limited retail broker-dealer services that include selling variable annuities issued by the Company to customers advised by third-party fiduciaries such as trust companies and registered investment advisers. With respect to these sales, PSD acts as the broker-dealer of record for the initial sale, but does not receive commissions.

 

Pacific Global Asset Management LLC (PGAM) is a wholly owned non-insurance LLC subsidiary of the Company that serves as a holding company for Pacific Life's private equity asset management business. As of December 31, 2023 and 2022, the nonadmitted carrying value of PGAM was $23 million and $52 million, respectively. Distributions recorded as a return of capital from PGAM to the Company were $40 million, zero, and zero during the years ended December 31, 2023, 2022, and 2021, respectively.

 

The Company also has the following noninsurance SCA investments that are classified as SSAP No. 97, Subsidiary, Affiliated and Controlled Entities 8.b.iii entities:

 

   December 31, 2023   December 31, 2022 
           Admitted            Admitted 
   Gross   Nonadmitted   Asset   Gross    Nonadmitted   Asset 
Description: (2)   Amount   Amount   Amount   Amount    Amount   Amount 
                         
   (In Millions) 
Pacer Pacific Asset Floating              $38(1)       $38 
Pacific Funds ESG Core Bond Fund Adv Class              11(1)       11 
Pacific Funds ESG Core Bond Fund Class I              11(1)       11 
Pacific Funds Small-Cap Value, Advisor              8(1)       8 
Pacific Funds Ultra Short Income Class D              13(1)       13 
Pacific Funds Ultra Short Income Class I              13(1)       13 
Pacific Optimization Growth  $1(1)       $1   1(1)       1 
Pacific Optimization Moderate  1(1)       1   1(1)       1 
PSF ESG Diversified Growth Class I  13(1)       13   10(1)       10 
PSF ESG Diversified Portfolio Class I  11(1)       11   9(1)       9 
PSF Hedge Equity Portfolio Class I              15(1)       15 
Total  $26   $—   $26   $130    $—   $130 

 

(1) Includes NAIC Sub-2 filing types.
(2) The Company received responses from the NAIC for all required SCA filings and no SCA investment valuations were disallowed or required to be resubmitted.

15

 

The Company is the owner and beneficiary of life insurance policies captured under SSAP No. 21, Other Admitted Assets. As of December 31, 2023 and 2022, the cash surrender value was $208 million and $171 million, respectively. As of December 31, 2023, the investments in various fund structures of the underlying life insurance policies comprise investment characteristics of 99% of stocks and 1% of cash and short-term investments. As of December 31, 2022, the investments in various fund structures of the underlying life insurance policies comprise investment characteristics of 98% of stocks 2% and of cash and short-term investments.

 

The Company provides certain subsidiaries and affiliates with services that are routine in nature. Fees for these services are determined using cost allocations or a negotiated basis intended to reflect market prices. The Company provides investment and administrative services for certain subsidiaries and affiliates under administrative services agreements. For the years ended December 31, 2023, 2022 and 2021, the Company received $138 million, $127 million and $114 million, respectively, for services provided to, and paid $16 million, $27 million and $10 million, respectively, for services received from certain subsidiaries and affiliates, which are included in operating expenses. As of December 31, 2023 and 2022, the Company reported $75 million and $74 million, respectively, due from other affiliated companies. It is the Company’s practice to settle these amounts no later than 90 days after the due date.

 

In September 2021, the Company entered into a one year agreement with Pacific Life Re International Limited (RIBM), a wholly owned indirect subsidiary of Pacific LifeCorp, to lend up to $100 million at a fixed rate of 0.7%. The agreement was terminated May 6, 2022.

 

In June 2022, the Company entered into a promissory note with Pacific LifeCorp to borrow up to $200 million at a variable interest rate. There were no borrowings outstanding as of December 31, 2023 and 2022. The promissory note matures on March 31, 2025.

 

The Company’s structured settlement transactions are typically designed such that an affiliated assignment company assumes settlement obligations from external parties in exchange for consideration. The affiliated assignment company then funds the assumed settlement obligations by purchasing annuity contracts from the Company. Consequently, substantially all of the Company’s structured settlement annuities are sold to an affiliated assignment company. Included in the liability for aggregate reserves are insurance contracts with the affiliated assignment company with contract values of $3.5 billion and $3.4 billion as of December 31, 2023 and 2022, respectively. Related to these contracts, the Company received $241 million, $503 million and $197 million of premiums and annuity considerations and paid $217 million, $201 million and $183 million of current and future policy benefits for the years ended December 31, 2023, 2022 and 2021, respectively. In addition, included in the liability for deposit-type contracts are insurance contracts with the affiliated assignment company of $4.6 billion and $3.9 billion as of December 31, 2023 and 2022, respectively.

 

AGGREGATE RESERVES AND LIABILITY FOR DEPOSIT-TYPE CONTRACTS

 

Life insurance reserves are valued using the net level premium method, the Commissioners' Reserve Valuation Method (CRVM), or other modified reserve methods. Interest rate assumptions ranged from 2.0% to 6.0%. Reserves for individual variable annuities are held in accordance with VM-21. Reserves for individual fixed annuities are maintained using the Commissioners' Annuity Reserve Valuation Method, with appropriate statutory interest and mortality assumptions computed on the basis of interest rates ranging from 1.0% to 11.3%. Group annuity reserves are valued using the CRVM with statutory interest and mortality assumptions computed on the basis of interest rates ranging from 1.0% to 11.3%.

 

The Company establishes loss liabilities for claims that have been incurred before the valuation date, but have not yet been paid. An expense liability is established associated with paying those claims.

 

The Company waives deduction of deferred fractional premium upon death of insured. The Company does not return any portion of the final premium for periods beyond the date of death. Continuous or modal premium assumptions are used for all reserves. All reserves are equal to the greater of the computed reserve and surrender value or, on certain products, a higher alternative comparison value.

 

Payments received on deposit-type contracts, which do not incorporate any mortality or morbidity risk, are recorded directly to the liability for deposit-type contracts. Interest credited to deposit-type contracts is recorded as an expense in the statements of operations - statutory basis when earned under the terms of the contract. Payments to contract holders are recorded as current and future policy benefits expense to the extent that such payments differ from the recorded liability. Interest rates credited ranged primarily from 0.3% to 8.8%.

16

 

TRANSFERS TO SEPARATE ACCOUNTS DUE OR ACCRUED, NET

 

Transfers to separate accounts due or accrued, net consist primarily of amounts accrued from the separate account for expense allowances recognized in reserves. These amounts represent the excess of separate account contract values over statutory reserves held in the separate account.

 

REVENUES, BENEFITS AND EXPENSES

 

Life insurance premiums are recognized as income when due from the policyholder under the terms of the insurance contract. Premiums for flexible premium products are recognized when received from the policyholder. Annuity considerations are recognized as premiums when received.

 

Expenses incurred in connection with acquiring new insurance business, including acquisition costs such as sales commissions, are charged to operations as incurred.

 

FEDERAL INCOME TAXES

 

The Company is taxed as a life insurance company for income tax purposes and its operations are included in the consolidated Federal income tax return of PMHC. In addition to the Company, included in PMHC's consolidated return are the following entities: Pacific LifeCorp, PL&A, PAR Vermont, PBRC, PLFA, and Pacific Life Re Global Limited (RGBM).

 

The method of tax allocation between companies is subject to written tax sharing agreements, approved by the Company’s Board of Directors. Allocation is based upon separate return calculations with current credit for net losses to the extent utilized in the consolidated return. If the consolidated return has tax losses, intercompany balances are generally settled as refunds are received. If the consolidated return has a tax payable, the intercompany balances are generally settled as paid.

 

SEPARATE ACCOUNTS

 

Separate accounts primarily include variable life and annuity contracts, as well as other single separate accounts. The Company's separate accounts without guarantees consist of the variable annuities and variable life businesses where the assets of these accounts are carried at fair value and represent legally segregated contract holder funds. A separate account liability is recorded at fair value at an amount equal to the separate account asset. The investment results of separate account assets typically pass through to the contract holders so that the Company generally bears no investment risk on these assets. Amounts charged to the separate account for mortality, surrender and expense charges are included in separate account fees in other income.

 

The Company has separate accounts with guarantees comprised of the group annuities business where the general account guarantees annuity payments if the separate accounts is unable to do so. Assets of the group annuities business are carried at amortized cost and the Company establishes an AVR as required. The Company contractually guarantees either a minimum return or account value on these separate account products, for which liabilities have been recorded in aggregate reserves.

 

Separate account assets are primarily invested in mutual funds, but are also invested in bonds, mortgage loans, and hedge funds.

 

The variable annuities, variable universal life, and group annuities are classified as separate account products under statutory accounting principles. Variable annuities and variable universal life products are also classified as separate account products under U.S. GAAP, however, group annuities are classified as general account products under U.S. GAAP due to the investment risk being retained by the general account.

17

 

RISK-BASED CAPITAL

 

Risk-based capital is a method developed by the NAIC to measure the minimum amount of capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The formulas for determining the amount of risk-based capital specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Additionally, certain risks are required to be measured using actuarial cash flow modeling techniques, subject to formulaic minimums. The adequacy of a company's actual capital is measured by the risk-based capital results, as determined by the formulas and actuarial models. Companies below minimum risk-based capital requirements are classified within certain levels, each of which requires specified corrective action. As of December 31, 2023 and 2022, the Company exceeded the minimum risk-based capital requirements.

 

 

 

2.COMPARISON OF NAIC SAP TO U.S. GAAP

 

The objectives of U.S. GAAP reporting differ from the objectives of NAIC SAP reporting. U.S. GAAP stresses measurement of earnings of a business from period to period, while NAIC SAP stresses measurement of ability to pay claims in the future.

 

The Company prepares its financial statements - statutory basis in accordance with statutory accounting practices prescribed or permitted by the NE DOI, which is a comprehensive basis of accounting other than U.S. GAAP. NAIC SAP and accounting practices prescribed or permitted by the NE DOI (Note 1) primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, recognizing certain policy fees as revenue when billed, establishing future policy benefit liabilities using different actuarial assumptions and methods, reporting surplus notes as surplus instead of debt, as well as reporting investments and certain assets and accounting for deferred income taxes on a different basis.

18

 

 

3.INVESTMENTS

 

BONDS, SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS

 

The book/adjusted carrying value, fair value and net unrealized gains (losses) of bonds, short-term investments and cash equivalents are shown below. Short-term investments and cash equivalents as of December 31, 2023 and 2022 were $1.8 billion and $698 million, respectively. See Note 4 for information on the Company's fair value measurements.

 

  

Book/Adjusted

Carrying

Value

  Fair Value 

Net Unrealized

Losses

  
      (In Millions)     
December 31, 2023:           
U.S. Government  $1,037  $991  ($46)  
All other governments  663  622  (41)  
U.S. states, territories, and possessions  102  91  (11)  
U.S. political subdivisions of states, territories, and possessions  196  195  (1)  
U.S. special revenue and special assessment obligations  2,017  1,887  (130)  
Industrial and miscellaneous  54,965  50,771  (4,194)  
Bank loans  2,276  2,245  (31)  
Hybrid securities  23  21  (2)  
LBASS:           
Residential mortgage-backed securities (RMBS)  1,291  1,151  (140)  
Commercial mortgage-backed securities (CMBS)  3,574  3,219  (355)  
Other  12,543  12,123  (420)  
Total  $78,687  $73,316  ($5,371)  

 

  

Book/Adjusted

Carrying

Value

  Fair Value 

Net Unrealized

Losses

  
      (In Millions)     
December 31, 2022:           
U.S. Government  $1,038  $985  ($53)  
All other governments  638  572  (66)  
U.S. states, territories, and possessions  102  84  (18)  
U.S. political subdivisions of states, territories, and possessions  213  203  (10)  
U.S. special revenue and special assessment obligations  2,039  1,799  (240)  
Industrial and miscellaneous  54,274  48,098  (6,176)  
Bank loans  1,774  1,735  (39)  
Hybrid securities  23  21  (2)  
LBASS:           
RMBS  1,400  1,228  (172)  
CMBS  3,529  3,132  (397)  
Other  9,513  8,805  (708)  
Total  $74,543  $66,662  ($7,881)  

 

19

 

 

The book/adjusted carrying value and fair value of bonds, short-term investments and cash equivalents as of December 31, 2023, by contractual repayment date of principal, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

   Book/Adjusted
Carrying
Value		  Fair Value  
   (In Millions)  
Due in one year or less  $4,893  $4,849  
Due after one year through five years  19,378  18,745  
Due after five years through ten years  16,817  15,302  
Due after ten years  20,191  17,927  
   61,279  56,823  
LBASS  17,408  16,493  
Total  $78,687  $73,316  

 

20

 

 

The following tables present the fair value and gross unrealized losses for bonds where the fair value had declined and remained continuously below the amortized cost adjusted for OTTI for less than twelve months and for twelve months or greater:

 

    Less than 12 Months     12 Months or Greater     Total
    Fair Value    

Gross

Unrealized

Losses

     Fair Value    

Gross

Unrealized

Losses

     Fair Value    

Gross

Unrealized

Losses

  
    (In Millions)  
December 31, 2023:                                    
U.S. Government               $640     $47     $640     $47  
All other governments   $15           386     54     401     54  
U.S. states, territories, and possessions               84     12     84     12  
U.S. political subdivisions of states, territories, and possessions               116     6     116     6  
U.S. special revenue and special assessment obligations   7           1,038     177     1,045     177  
Industrial and miscellaneous   617     $10     41,604     4,563     42,221     4,573  
Bank loans   824     16     578     26     1,402     42  
Hybrid securities               17     4     17     4  
LBASS:                                    
RMBS   6           940     171     946     171  
CMBS   355     6     2,035     356     2,390     362  
Other   1,213     6     5,684     492     6,897     498  
Total   $3,037     $38     $53,122     $5,908     $56,159     $5,946  
                                     
December 31, 2022:                                    
U.S. Government   $626     $32     $40     $23     $666     $55  
All other governments   435     45     73     23     508     68  
U.S. states, territories, and possessions   74     14     $10     $4     84     18  
U.S. political subdivisions of states, territories, and possessions   150     13                 150     13  
U.S. special revenue and special assessment obligations   1,305     217     129     43     1,434     260  
Industrial and miscellaneous   39,955     4,847     5,001     1,460     44,956     6,307  
Bank loans   1,071     23     255     19     1,326     42  
Hybrid securities               16     4     16     4  
LBASS:                                    
RMBS   380     29     659     174     1,039     203  
CMBS   1,775     160     829     240     2,604     400  
Other   5,324     411     1,907     324     7,231     735  
Total   $51,095     $5,791     $8,919     $2,314     $60,014     $8,105  

 

The Company has evaluated investments with gross unrealized losses and determined that the unrealized losses are temporary. The Company does not have the intent to sell these securities and has the intent and ability to retain these investments for a period of time sufficient to recover the amortized cost basis.

 

21

 

 

The table below summarizes the OTTI by security type:

 

   Years Ended December 31,
   2023  2022  2021
   (In Millions)
Bonds:     
Industrial and miscellaneous     $13   $36 
Issuer obligation  $2         
Bank loans  8    1     
LBASS  66   2   34 
Mortgage loans  183    15     
Real estate  12         
Other invested assets  20   6   11 
Total OTTI  $291   $37   $81 

 

The following table presents all LBASS with an OTTI recognized during the year ended December 31, 2023, whereby the present value of cash flows expected to be collected is less than the amortized cost basis of the securities:

 

   

Amortized

Cost Before

Current Period

  

Present Value

of Projected

   Recognized   Amortized Cost   Fair Value at  

Date of

Financial

Statement

When

  
Cusip   OTTI   Cash Flows   OTTI   after OTTI   time of OTTI   Reported  
            (In Millions)              
23312RAG0    $60    $49   $11   $49    $49   3/31/2023  
23312RAG0   49       48           9/30/2023  
23312RAJ4   3       3           9/30/2023  
Total           $62              

 

The assignment of an NAIC 5GI designation to a debt security occurs when the necessary documentation for a full credit analysis does not exist but the security is current on all contractual payments and the Company expects the security to make full payment of all contractual principal and interest. The following table presents the number of investments, the book/adjusted carrying value, and the fair value for bonds with an NAIC 5GI designation:

 

   December 31, 2023  December 31, 2022  
   Number 

Book/Adjusted
Carrying Value

  Fair Value  Number 

Book/Adjusted

Carrying Value

  Fair Value  
   (In Millions)  (In Millions)  
Bank loans  1  $15  $12  1  $14  $11  
LBASS  3  4  6  3  7  6  
Total  4  $19  $18  4  $21  $17  

 

Proceeds, gross gains, and gross losses recognized on sales of bonds were $1.7 billion, $3 million, and $33 million, respectively, for the year ended December 31, 2023. Proceeds, gross gains, and gross losses recognized on sales of bonds were $4.3 billion, $10 million, and $190 million, respectively, for the year ended December 31, 2022. Proceeds, gross gains, and gross losses recognized on sales of bonds were $2.4 billion, $28 million, and $11 million, respectively, for the year ended December 31, 2021.

 

Bonds with a book/adjusted carrying value of $6 million as of December 31, 2023 and 2022, were held as restricted assets on deposit with government agencies as required by law in various jurisdictions in which the Company conducts business.

 

22

 

 

The Company received prepayment penalties and acceleration of fees of $4 million, $28 million and $117 million from 97, 192 and 249 securities for the years ended December 31, 2023, 2022 and 2021, respectively.

 

SECURITIES LENDING

 

The Company participates in a securities lending program administered by an authorized financial institution whereby certain investment securities are loaned to third parties for the purpose of enhancing income on securities held through reinvestment of cash collateral received upon lending. With respect to securities loaned, the Company requires initial cash collateral equal to a minimum of 102% of the fair value of domestic securities loaned. The Company monitors the fair value of securities loaned with additional collateral obtained as necessary. This collateral is not restricted, and there is no collateral that extends beyond one year from December 31, 2023. The borrower of the loaned securities is permitted to sell or repledge those securities. Upon default of the borrower, the Company has the right to purchase replacement securities using the cash collateral held. Similarly, upon default of the Company, the borrower has the right to sell the loaned securities and apply the proceeds from such sale to the Company’s obligation to return the cash collateral held. As of December 31, 2023 and 2022, there were no separate accounts securities lending arrangements.

 

For securities lending transactions, the carrying value of securities classified as bonds and on loan as of December 31, 2023 and 2022 was $3.2 billion and $4.2 billion, respectively. The Company recorded cash collateral received of $3.1 billion and $3.8 billion as of December 31, 2023 and 2022, respectively, and established a corresponding liability for the same amount, which is included in other liabilities. As of December 31, 2023 and 2022, the Company has not sold or repledged collateral received from securities lending agreements. The Company may occasionally utilize amounts from the cash collateral for short-term liquidity for general corporate purposes. As of December 31, 2023 and 2022, zero and $1.0 billion, respectively, were utilized for general corporate purposes.

 

The aggregate amount of collateral reinvested broken down by the maturity date of the invested asset is as follows (In Millions):

 

   December 31, 2023   December 31, 2022 
  

Amortized

Cost

   Fair Value  

Amortized

Cost

   Fair Value 
Overnight and continuous                
30 days or less  $1,396   $1,396   $928   $928 
31-60 days          300   300 
61 to 90 days  1,700   1,700   1,600   1,600 
Total collateral reinvested  $3,096   $3,096   $2,828   $2,828 

 

The Company invests the cash collateral received from its securities lending arrangements primarily into short-term investments.

 

To manage the mismatch of maturity dates between the security lending transactions and the related reinvestment of the collateral received, the Company reinvests in assets with a maturity date of 90 days or less.

 

REPURCHASE AGREEMENTS

 

In 2022, the Company entered into repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company sells bonds and receives cash in an amount equal to at least 102% of the estimated fair value of the bonds sold at the inception of the transaction, with a simultaneous agreement to repurchase such bonds at a future date or on demand in an amount equal to the cash initially received plus interest. The Company monitors the ratio of the cash-held to the estimated fair value of the bonds sold throughout the duration of the transaction and additional cash or securities are obtained as necessary. Bonds sold under such transactions may be sold or re-pledged by the transferee. Income and expense associated with repurchase agreements are recorded in net investment income. The repurchase agreements are both tri-party and bilateral trades. The maximum amount outstanding under repurchase agreements during the year ended December 31, 2023 was $16 million, which had a maturity time frame of overnight. The maximum amount outstanding under repurchase agreements during the year ended December 31, 2022 was $10 million, which had a maturity time frame of 2 days to 1 week. There are no amounts outstanding under these agreements as of December 31, 2023 and 2022.

 

23

 

 

The maximum fair value of securities sold outstanding under secured borrowing agreements during the years ended December 31, 2023 and 2022 were $17 million and $10 million, respectively. There were no outstanding securities sold as of December 31, 2023 and 2022.

 

The maximum amount of cash collateral received and securities collateral liability under secured borrowing agreements during the years ended December 31, 2023 and 2022 were $16 million and $10 million, respectively. There was no outstanding cash collateral received outstanding as of December 31, 2023 and 2022. There was no outstanding securities collateral liability outstanding as of December 31, 2023 and 2022.

 

REVERSE REPURCHASE AGREEMENTS

 

The Company invests cash collateral received into reverse repurchase agreements as part of its securities lending program. The Company requires that all reverse repurchase agreements must be collateralized by United States (U.S.) Treasury Securities, U.S. Agency Securities, U.S. Corporate bonds and/or U.S. Equities with a minimum margin of 102%. For the securities lending program, reverse repurchase agreements had a maximum maturity of 90 days and are indemnified by the Company's securities lending agent against counterparty default. When counterparty default and price movements of the collateral received present the primary risks for repurchase agreements, the Company mitigates such risks by mandating short maturities, applying proper haircuts and monitoring fair values daily.

 

In 2022, the Company entered into a reverse repurchase transaction commitment of $250 million with an unaffiliated financial institution. Under this agreement, the Company purchases U.S. Treasury Securities and loans cash, with a simultaneous agreement to resell such securities at a future date or on demand in an amount equal to the cash initially loaned plus interest. There were no amounts outstanding under this agreement as of December 31, 2023 and 2022. The reverse repurchase agreements used are both bilateral and tri-party trades.

 

The following tables present the maximum amount and ending value during and as of the periods presented of the allocation of reverse repurchase agreements by maturity (In Millions):

 

   Maximum Amount    Ending Balance 
December 31, 2023 

First

Quarter

 

Second

Quarter

 

Third

Quarter

 

Fourth

Quarter

   

First

Quarter

 

Second

Quarter

 

Third

Quarter

 

Fourth

Quarter

 
Overnight and continuous  $500  $575  $600  $400    $300  $400  $300    
30 days or less  3,170  2,610  2,970  1,900    1,535  1,610  1,210  $1,150 
31-90 days  2,835  2,900  2,500  2,850    1,700  1,600  2,000  1,700 

 

   Maximum Amount    Ending Balance 
December 31, 2022 

First

Quarter

 

Second

Quarter

 

Third

Quarter

 

Fourth

Quarter

   

First

Quarter

 

Second

Quarter

 

Third

Quarter

 

Fourth

Quarter

 
Overnight and continuous  $200  $250  $650  $200    $200     $150  $200 
30 days or less  1,175  1,100  1,950  1,450    400  $250  200  200 
31-90 days  2,925  3,175  2,875  4,250    2,925  2,675  2,125  1,900 

 

24

 

 

The maximum and ending fair value of the bonds acquired under reverse repurchase-secured borrowings during the years 2023 and 2022 is as follows (In Millions). None of the bonds acquired were nonadmitted.

 

December 31, 2023 First Quarter Second Quarter Third Quarter Fourth Quarter
Maximum Amount $4,828 $4,722 $4,219 $3,906
Ending Balance 3,723 3,789 3,678 3,026
         
December 31, 2022 First Quarter Second Quarter Third Quarter Fourth Quarter
Maximum Amount $3,800 $3,938 $4,836 $2,662
Ending Balance 3,750 3,117 2,617 2,442

 

The following table presents, by NAIC designation, the fair value of bonds acquired by the Company under reverse repurchase- secured borrowings as of December 31, 2023 and 2022 (In Millions):

 

   December 31,
  2023  2022
NAIC 1   $494   $947 
NAIC 2   899   702 
NAIC 3   609   242 
NAIC 4   1,024   551 
Total   $3,026   $2,442 

 

The Company has not sold or acquired any securities that resulted in default.

 

The following tables present the aggregate allocation of collateral pledged of repurchase agreements by remaining contractual maturity (In Millions):

 

   December 31, 2023  December 31, 2022  
  

Amortized

Cost

  Fair Value 

Amortized

Cost

  Fair Value  
30 days or less  $1,150  $1,150  $400  $400  
31-90 days  1,700  1,700  1,900  1,900  

 

The maximum amounts and ending balances of the cash collateral provided and recognized receivable for the return of collateral for reverse repurchase-secured borrowings during the years 2023 and 2022 is as follows (In Millions):

 

December 31, 2023 First Quarter Second Quarter Third Quarter Fourth Quarter
Maximum Amount $3,985 $3,990 $4,010 $3,710
Ending Balance 3,535 3,610 3,510 2,850
         
December 31, 2022 First Quarter Second Quarter Third Quarter Fourth Quarter
Maximum Amount $3,850 $3,675 $3,675 $4,950
Ending Balance 3,525 2,925 2,475 2,300

 

25

 

 

The maximum amounts and ending balances of the recognized liability to return collateral for reverse repurchase-secured borrowing securities sold/acquired with cash collateral during the years 2023 and 2022 is as follows (In Millions):

 

December 31, 2023 First Quarter Second Quarter Third Quarter Fourth Quarter
Maximum Amount $3,985 $3,990 $4,010 $3,710
Ending Balance 3,535 3,610 3,510 2,850
         
December 31, 2022 First Quarter Second Quarter Third Quarter Fourth Quarter
Maximum Amount $3,850 $3,675 $3,675 $4,950
Ending Balance 3,525 2,925 2,475 2,300

 

The Company did not have any transfers of financial assets accounted for as secured borrowings, excluding repurchase and reverse repurchase agreements disclosed above.

 

WORKING CAPITAL FINANCE INVESTMENTS

 

The tables below present the aggregate book/adjusted carrying value of working capital finance investments (WCFI) by designation as of December 31, 2023 and 2022.

 

  

Gross

Asset

 

Nonadmitted

Asset

 

Net Admitted

Asset

  
December 31, 2023:     (In Millions)     
WCFI Designation 1  $668     $668  
WCFI Designation 2  482  $11  471  
Total  $1,150  $11  $1,139  

 

   Gross
Asset		  Nonadmitted
Asset		  Net Admitted
Asset		  
December 31, 2022:     (In Millions)     
WCFI Designation 1  $764     $764  
WCFI Designation 2  544     544  
Total  $1,308  $—  $1,308  

 

The table below presents the aggregate maturity distribution on the underlying working capital finance programs. The Company did not have any events of default on WCFI.

 

   Book/Adjusted
Carrying Value		 
   December 31, 
   2023   2022 
   (In Millions) 
Up to 180 days  $1,041   $1,256 
181 to 365 days  109   52 
Total  $1,150   $1,308 

 

26

 

 

MORTGAGE LOANS

 

The maximum and minimum lending rates for newly issued mortgage loans, by category, are as follows:

 

  Maximum Minimum
Year Ended December 31, 2023:      
Farm 7.35% 5.70%
Construction and land development 8.91% 7.81%
Commercial 8.22% 6.11%
     
Year Ended December 31, 2022:    
Farm 6.10% 3.15%
Construction and land development 5.37% 5.37%
Commercial 7.10% 2.05%

 

The maximum percentage of any one loan to the value of security at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages was 99% and 100% as of December 31, 2023 and 2022, respectively.

 

The age analysis of mortgage loans by type and identification of mortgage loans in which the insurer is a participant or co-lender in a mortgage loan agreement is as follows:

 

   Farm  Residential  Commercial  Mezzanine  Total  
December 31, 2023:        (In Millions)        
Current  $947  $232  $17,042  $107  $18,328  
30-59 days past due  5     32     37  
60-89 days past due  4     225     229  
90-179 days past due              —  
180+ days past due  13     41     54  
Total  $969  $232  $17,340  $107  $18,648  
   
Participant or co-lender in a mortgage loan agreement:  
Recorded investment (1)  $19     $936  $107  $1,062  

 

 

   Farm  Residential  Commercial  Mezzanine  Total  
December 31, 2022:        (In Millions)        
Current  $980  $236  $17,690  $107  $19,013  
30-59 days past due              —  
60-89 days past due              —  
90-179 days past due  2           2  
180+ days past due  13           13  
Total  $995  $236  $17,690  $107  $19,028  
   
Participant or co-lender in a mortgage loan agreement:  
Recorded investment (1)  $20     $1,110  $107  $1,237  

 

(1)Excluded from the Commercial amounts are mortgage loan participations where the sole participants are the Company and PL&A. The total amounts were $2.8 billion and $2.9 billion as of December 31, 2023 and 2022, respectively.

 

27

 

 

The Company's investment in impaired commercial mortgage loans was $374 million and $72 million as of December 31, 2023 and 2022, respectively. Information on the Company's impaired commercial mortgage loans is as follows:

 

   Years Ended December 31,  
   2023  2022  2021  
      (In Millions)     
Impairment loss recorded  $183  $15     
Average recorded investment  112  46  $20  
Interest income recognized  22  4  3  
Recorded investment on nonaccrual status  73        
Mortgage loans derecognized as a result of foreclosure  30        
Real estate collateral recognized as a result of foreclosure  30        

 

The Company's mortgage loans finance various types of properties primarily throughout the U.S. and Canada. The geographic distributions of the mortgage loans book/adjusted carrying value were as follows (In Millions):

 

    December 31,       December 31,  
  2023       2022  
California   $4,263   California   $4,108  
Illinois   1,393   Illinois   1,444  
Texas   1,324   Texas   1,351  
Massachusetts   1,280   Massachusetts   1,243  
Washington   1,247   Washington   1,136  
Georgia   881   New York   969  
New York   713   Georgia   869  
New Jersey   712   District of Columbia   794  
Florida   678   Virginia   774  
District of Columbia   634   New Jersey   719  
All other   5,523   All other   5,621  
Total   $18,648   Total   $19,028  

 

As of December 31, 2023 and 2022, the largest carrying amount of one single commercial loan in California, the state with the highest geographical distribution, was $459 million or 2% and $440 million or 2% of the mortgage loan carrying value, respectively. This loan was secured by apartment buildings.

 

As of December 31, 2023, the largest total carrying value of multiple commercial loans with a single sponsor, a related party to the Company, was $639 million and 3% of the mortgage loan carrying value. As of December 31, 2023, these loans were located in various states and were mainly secured by apartment buildings. As of December 31, 2022, the largest total carrying value of multiple commercial loans with a single sponsor, a related party to the Company, was $622 million and 3% of the mortgage loan carrying value. As of December 31, 2022, these loans were located in various states and were mainly secured by apartment buildings.

 

For the years ended December 31, 2023, 2022 and 2021, the Company recognized in net investment income prepayment income of $4 million, $57 million and $30 million, respectively, from early pay off mortgage loans.

 

28

 

 

The Company reviews the performance and credit quality of commercial mortgage loans on an on-going basis, including loan payment delinquencies and collateral performance. Collateral performance includes a review of the most recent collateral inspection reports and financial statements. Analysts track each loan's debt service coverage ratio (DCR) and loan-to-value (LTV). The DCR compares the collateral’s net operating income to its debt service payments. DCRs less than 1.0 times indicate that the collateral operations do not generate enough income to cover the loan’s current debt payments. A larger DCR indicates a greater excess of net operating income over the debt service. The LTV compares the amount of the loan to the fair value of the collateral and is commonly expressed as a percentage. LTVs greater than 100% indicate that the loan amount exceeds the collateral value. A smaller LTV percentage indicates a greater excess of collateral value over the loan amount. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher LTV ratios and lower DCR. The DCR and LTV ratios are updated routinely.

 

The loan review process results in each loan being placed into a No Credit Concern category or one of three levels: Level 1 Minimal Credit Concern, Level 2 Moderate Credit Concern or Level 3 Significant Credit Concern. Loans in the No Credit Concern category are performing and no issues are noted. The collateral exhibits a strong DCR and LTV and there are no near term maturity concerns. The loan credit profile and borrower sponsorship have not experienced any significant changes and remain strong. For construction loans, projects are progressing as planned with no significant cost overruns or delays.

 

Level 1 loans are experiencing negative market pressure and outlook due to economic factors. Financial covenants may have been triggered due to declines in performance. There may be disputes between the borrower and contractors. Credit profile and/or borrower sponsorship remain stable but require monitoring. Near term (6 months or less) maturity requires monitoring due to negative trends. No impairment loss concerns exist under current conditions, however some possibility of loss may exist under stressed scenarios or changes in sponsorship financial strength. This includes troubled debt restructurings (TDR) performing as agreed for more than one year.

 

Level 2 loans are experiencing significant or prolonged negative market pressure and uncertain outlook due to economic factors; financial covenants may have been triggered due to declines in performance and/or the borrower may have requested covenant relief. There may be disputes between the borrower and contractors. Loan credit profile, borrower sponsorship and/or collateral value may have declined or given cause for concern. Near term maturity (12 months or less) coupled with negative market conditions, property performance and value and/or borrower stability result in increased refinance risk. Likelihood for TDR, impairment and loss is increased. This includes all loans performing as agreed during the first year of a TDR unless assigned to Level 3.

 

Level 3 loans are experiencing prolonged and/or severe negative market trends, declines in collateral performance and value, and/ or borrower financial difficulties exist. Borrower may have asked for modification of loan terms. Without additional capital infusion and/or acceptable modification to existing loan terms, default is likely and foreclosure the probable alternative. Impairment loss is possible depending on current fair market value of the collateral. This category includes loans in default and previously impaired restructured loans that underperform despite modified terms and/or for which future loss is probable.

 

Loans classified as Level 1 through Level 3 are placed on a watch list and monitored monthly, subject to the terms of the loan agreement. Loans that have been identified as Level 3 are evaluated to determine if the loan is impaired. A loan is impaired if it is probable that amounts due according to the contractual terms of the loan agreement will not be collected.

 

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The following tables set forth mortgage loan credit levels as of December 31, 2023 and 2022 ($ In Millions):

 

            December 31, 2023           
         Level 1  Level 2  Level 3        
         Minimal Credit  Moderate Credit  Significant Credit        
   No Credit Concern  Concern  Concern  Concern  Total  
   Carrying  Weighted
Average		  Carrying  Weighted
Average		  Carrying  Weighted
Average		  Carrying  Weighted
Average		  Carrying  Weighted
Average		  
Type  Amount  DCR  Amount  DCR  Amount  DCR  Amount  DCR  Amount  DCR  
Agricultural  $969  1.50                    $969  1.50  
Apartment  4,955  1.58                    4,955  1.58  
Golf course  10  2.21  $3  0.73              13  1.84  
Industrial  878  2.47                    878  2.47  
Lodging  973  3.19  177  1.27              1,150  2.89  
Mobile home park  238  3.02                    238  3.02  
Office  3,465  2.02        $60  1.62  $333  1.24  3,858  1.94  
Residential  39  1.87                    39  1.87  
Retail  2,686  1.95        225  1.34  373  0.66  3,284  1.76  
Construction (1)  3,108     43     113           3,264     
Total  $17,321  1.94  $223  1.26  $398  1.40  $706  0.93  $18,648  1.88  

 

            December 31, 2022           
         Level 1  Level 2  Level 3        
         Minimal Credit  Moderate Credit  Significant Credit        
   No Credit Concern  Concern  Concern  Concern  Total  
   Carrying  Weighted
Average		  Carrying  Weighted
Average		  Carrying  Weighted
Average		  Carrying  Weighted
Average		  Carrying  Weighted
Average		  
Type  Amount  DCR  Amount  DCR  Amount  DCR  Amount  DCR  Amount  DCR  
Agricultural  $995  2.23                    $995  2.23  
Apartment  4,969  1.72                    4,969  1.72  
Golf course  41  3.64  $4  0.80              45  3.37  
Industrial  828  2.24                    828  2.24  
Lodging  1,064  3.19  77  1.60  $160  1.12        1,301  2.85  
Mobile home park  239  3.27                    239  3.27  
Office  4,199  2.08        60  2.98  $72  1.08  4,331  2.07  
Residential  41  2.17                    41  2.17  
Retail  2,335  1.99  225  1.55        512  0.83  3,072  1.76  
Construction (1)  3,050     42     115           3,207     
Total  $17,761  2.07  $348  1.55  $335  1.63  $584  0.86  $19,028  2.01  

 

(1)Performance and credit quality does not consider DCRs for Construction loans. These loans are reviewed based on LTV, loan payment performance, and the construction progress and related costs for the underlying collateral project.

 

DEBT RESTRUCTURING

 

As of December 31, 2023 and 2022, the Company had investments in restructured loans and bonds of $333 million and $19 million, respectively. The realized capital losses related to these loans and bonds were zero, zero and $31 million for the years ended December 31, 2023, 2022 and 2021, respectively.

 

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During the year ended December 31, 2023, the Company modified two mortgage loans with a total carrying value of $323 million. The Company granted two term extensions on one of the loans with a carrying value of $291 million during the year ended December 31, 2023. The first modification extended the maturity date by five months, and the second modification further extended the maturity date by two months.The loan will mature in 2024. The Company granted a term extension of four months on the other loan with a carrying value of $32 million during the year ended December 31, 2023. This loan is in the process of foreclosure. The modifications qualified as TDRs, and a total impairment loss of $38 million was recorded. There were no TDRs during the years ended December 31, 2022 and 2021.

 

JOINT VENTURES, PARTNERSHIPS AND LLCS

 

The Company does not have investments in joint ventures, partnerships and limited liability companies that exceed 10% of admitted assets of the Company as of December 31, 2023 and 2022. For impaired investments in joint ventures, partnerships and limited liability companies, the Company recorded write downs of $20 million, $5 million and $11 million on 11, 4 and 6 investments during the years ended December 31, 2023, 2022 and 2021, respectively, based upon lower estimated future cash flows.

 

 

 

4.FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The Company's financial assets and liabilities that are carried at fair value have been classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100R, Fair Value. The determination of fair value requires the use of observable market data when available. The hierarchy consists of the following three levels that are prioritized based on observable and unobservable inputs.

 

Level 1Unadjusted quoted prices for identical instruments in active markets. Level 1 financial instruments include securities that are traded in an active exchange market.

 

Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in inactive markets, and model-derived valuations for which all significant inputs are observable market data.

 

Level 3Valuations derived from valuation techniques in which one or more significant inputs are not market observable.

 

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The following tables present, by fair value hierarchy level, the Company's financial instruments that are carried at fair value or net asset value (NAV) as of December 31, 2023 and 2022:

 

   Level 1  Level 2  Level 3  NAV  Total  
December 31, 2023:        (In Millions)        
Assets:                 
Bonds:                 
Issuer obligations        $7     $7  
Preferred stocks:                 
Industrial and miscellaneous        1     1  
Common stocks:                 
Industrial and miscellaneous  $51     65     116  
Affiliates (1)  26           26  
Total common stocks  77  —  65  —  142  
                  
Derivatives:                 
Foreign currency and interest rate swaps     $336        336  
Equity derivatives  36     2,093     2,129  
Total derivatives  36  336  2,093  —  2,465  
Other invested assets        169     169  
Separate account assets (2)  58,754        $1,193  59,947  
Total  $58,867  $336  $2,335  $1,193  $62,731  
                  
Liabilities:                 
Derivatives:                 
Foreign currency and interest rate swaps     $857        $857  
Equity derivatives        $17     17  
Total  $—  $857  $17  $—  $874  

 

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   Level 1  Level 2  Level 3  NAV  Total  
December 31, 2022:        (In Millions)        
Assets:                 
Bonds:                 
Issuer obligations        $14     $14  
LBASS        4     4  
Total bonds  —  —  18  —  18  
Preferred stocks:                 
Industrial and miscellaneous        4     4  
Common stocks:                 
Industrial and miscellaneous        65     65  
Affiliates (1)  $130           130  
Total common stocks  130  —  65  —  195  
                  
Derivatives:                 
Foreign currency and interest rate swaps     $459        459  
Equity derivatives  52     880     932  
Total derivatives  52  459  880  —  1,391  
Other invested assets        116     116  
Separate account assets (2)  53,895        $849  54,744  
Total  $54,077  $459  $1,083  $849  $56,468  
                  
Liabilities:                 
Derivatives:                 
Foreign currency and interest rate swaps     $452        $452  
Equity derivatives        $3     3  
Total  $—  $452  $3  $—  $455  

 

(1) Consists of mutual funds managed by affiliated entities.

(2) Consists of separate account assets that are primarily invested in mutual funds and hedge funds. Investment performance related to separate account assets is offset by corresponding amounts credited to contract holders whose liability is recorded in the separate account liabilities. Separate account liabilities are measured to equal the fair value of separate account assets.

 

FAIR VALUE MEASUREMENT

 

The following describes the valuation methodologies used by the Company to measure various types of financial instruments at fair value.

 

BONDS, PREFERRED STOCKS, COMMON STOCKS AND OTHER INVESTED ASSETS

 

The fair values of bonds, residual tranches (reported in Other Invested Assets), preferred stocks and common stocks are determined by management after considering external pricing sources and internal valuation techniques. For securities with sufficient trading volume, prices are obtained from third-party pricing services. For securities that are traded infrequently, fair values are determined after evaluating prices obtained from third-party pricing services and independent brokers or are valued internally using various valuation techniques.

 

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The Company's management analyzes and evaluates prices received from independent third parties and determines whether they are reasonable estimates of fair value. Management's analysis may include, but is not limited to, review of third-party pricing methodologies and inputs, analysis of recent trades, comparison to prices received from other third parties and development of internal models utilizing observable market data of comparable securities. The Company assesses the reasonableness of valuations received from independent brokers by considering current market dynamics and current pricing for similar securities.

 

For prices received from independent pricing services, the Company applies a formal process to challenge any prices received that are not considered representative of fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of fair value, independent non-binding broker quotations are obtained or an internally developed valuation is prepared. Upon evaluation, the Company determines which source represents the best estimate of fair value. Overrides of third-party prices to internally developed valuations of fair value did not produce material differences in the fair values for the majority of the portfolio; accordingly, overrides were not material. In the absence of such market observable activity, management’s best estimate is used.

 

Fair values determined by internally derived valuation tools use market-observable data if available. Generally, this includes using an actively traded comparable security as a benchmark for pricing. These internal valuation methods primarily represent discounted cash flow models that incorporate significant assumptive inputs such as spreads, discount rates, default rates, severity and prepayment speeds. These inputs are analyzed by the Company’s portfolio managers and analysts, investment accountants and risk managers. Internally developed estimates may also use unobservable data, which reflect the Company’s own assumptions about the inputs market participants would use.

 

Most securities priced by a major independent third-party service have been classified as Level 2, as management has verified that the significant inputs used in determining their fair values are market observable and appropriate. Externally priced securities for which fair value measurement inputs are not sufficiently transparent, such as securities valued based on broker quotations, have been classified as Level 3. Internally valued securities, including adjusted prices received from independent third parties, where significant management assumptions have been utilized in determining fair value, have been classified as Level 3. Securities categorized as Level 1 consist primarily of investments in mutual funds.

 

The Company applies controls over the valuation process. Prices are reviewed and approved by the Company’s professional credit analysts that have industry expertise and considerable knowledge of the issuers. Management performs validation checks to determine the completeness and reasonableness of the pricing information, which include, but are not limited to, changes from identified pricing sources, significant or unusual price fluctuations above predetermined tolerance levels from the prior period, and back-testing of fair values against prices of actual trades. A group comprised of the Company’s investment accountants, portfolio managers and analysts and risk managers meet to discuss any unusual items above the tolerance levels that may have been identified in the pricing review process. These items are investigated, further analysis is performed and resolutions are appropriately documented.

 

DERIVATIVE INSTRUMENTS

 

Derivative instruments are reported at fair value using pricing valuation models which utilize market data inputs or independent broker quotations or exchange prices for exchange-traded futures. The Company calculates the fair value of derivatives using market standard valuation methodologies for foreign currency, interest rate swaps, equity options and equity total return swaps. The derivatives are valued using mid-market inputs that are predominantly observable in the market. Inputs include, but are not limited to, interest swap rates, foreign currency forward and spot rates, credit spreads and correlations, interest volatility, equity volatility and equity index levels. The Company accounts for certain derivatives that are designated as cash flow hedges in the same manner as the hedged liability, which are determined using pricing models with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. On a monthly basis, the Company performs an analysis of derivative valuations, which includes both quantitative and qualitative analyses. Examples of procedures performed include, but are not limited to, review of pricing statistics and trends, analysis of the impacts of changes in the market environment and review of changes in the market value for each derivative by both risk managers and investment accountants. Internally calculated fair values are reviewed and compared to external broker fair values for reasonableness.

 

Derivative instruments classified as Level 1 are exchange-traded. Derivative instruments classified as Level 2 primarily include foreign currency and interest rate swaps. The derivative valuations are determined using pricing models with inputs that are observable in the market or can be derived principally from or corroborated by observable market data, primarily interest swap rates, interest rate volatility and foreign currency forward and spot rates.

 

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Derivative instruments classified as Level 3 include complex derivatives, such as equity options and total return swaps. These derivatives are valued using pricing models which utilize both observable and unobservable inputs, primarily interest rate volatility, equity volatility, equity index levels and, to a lesser extent, broker quotations. A derivative instrument containing Level 2 inputs would be classified as a Level 3 financial instrument in its entirety if it has at least one significant Level 3 input.

 

SEPARATE ACCOUNT ASSETS

 

The fair value of separate account assets is based on the fair value or NAV of the underlying assets. Separate account assets held at fair value primarily consist of investments in mutual funds and hedge funds.

 

Level 1 separate account assets include mutual funds that are valued based on reported net asset values provided by fund managers daily and can be redeemed without restriction. Management performs validation checks to determine the reasonableness of the pricing information, which include, but are not limited to, price fluctuations above predetermined thresholds from the prior day and validation against similar funds or indices. Variances are investigated, further analysis is performed and resolutions are appropriately documented.

 

The fair value of assets in the Separate Accounts in Level 2 consists of bonds based on the valuation methods described above in Bonds, Preferred Stocks, Common Stocks and Other Invested Assets. The fair value of assets in the Separate Accounts in Level 3 consist of bonds based on valuation methods described in Bonds, Preferred Stocks, Common Stocks and Other Invested Assets and mortgage loans based on the valuation method described below.

 

Investments Measured Using the NAV Practical Expedient

 

Separate account assets include hedge funds where the fair value is based on the net asset value obtained from the fund managers. Investment strategies related to separate account hedge funds include multi-strategy primarily invested in U.S. and international equity, fixed income, long/short equity, loans, precious metals, real estate, derivatives, privately held companies and private partnerships. The redemption frequency can be daily, monthly, quarterly, semi-annually and annually. The remaining lockup period ranges from zero to 39 months as of December 31, 2023. There are no unfunded commitments of investments measured using the NAV practical expedient as of December 31, 2023.

 

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LEVEL 3 RECONCILIATION

 

The tables below present a reconciliation of the beginning and ending balances of the Level 3 financial instruments that are carried at fair value using significant unobservable inputs:

 

                   Total Gains or (Losses)                  
   January 1,   Transfers Into     Transfers Out     Included in   Included in               December 31,  
   2023   Level 3 (1)     of Level 3 (1)     Net Income   Surplus   Purchases   Sales   Settlements   2023  
                                          
   (In Millions)  
Bonds                                         
Issuer                                 
Obligations  $14   $17  (2)  ($19)  (3)   ($1)        ($4)   $7  
LBASS  4        (4)  (2)                    
Preferred stocks                                   
Industrial and                                   
Misc  4               (3)            1  
Common stocks                                   
Industrial and                                   
Misc  65             5     56  ($59)  (2)  65  
Money Market                                 
Funds      7  (2) ($8)  (4) 1                  
Derivatives, net  877             727  249  1,154     (931)  2,076  
Other invested                                   
assets  116             (14)  20  168  (117)  (4)  169  
Total  $1,080   $24    ($31)    $719  $265  $1,378  ($176)  ($941)  $2,318  

 

                   Total Gains or (Losses)                  
   January 1,   Transfers Into     Transfers Out     Included in   Included in               December 31,  
   2022   Level 3 (1)     of Level 3 (1)     Net Loss   Surplus   Purchases   Sales   Settlements   2022  
                                          
   (In Millions)
Bonds                                 
Issuer                                 
Obligations     $25  (2)      ($13)  $3        ($1)  $14  
LBASS  $103  40  (2) ($116)  (5) (11)  (16)  $7     (3)  4  
Preferred stocks  1               (2)  5        4  
Common stocks  22            5     154  ($116)     65  
Derivatives, net  1,906            (672)  (333)  561     (585)  877  
Other invested                                 
assets     116  (5)                     116  
Total  $2,032  $181    ($116)    ($691)  ($348)  $727  ($116)  ($589)  $1,080  

 

(1) Transfers in and/or out are recognized at the end of each quarter. 

(2) Transferred into/out of Level 3 due to carrying value adjustments down to fair value and reclassifications to Issuer Obligations. 

(3) Transferred out of Level 3 due to changes in fair value. 

(4) Transferred out of Level 3 due to changes in classification. 

(5) Transferred into/out of Level 3 due to reclassification from LBASS to Other Invested Assets.

 

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The book/adjusted carrying values and fair values of the Company's financial instruments are presented in the following table:

 

   December 31, 2023
      Book/              Not
      Adjusted              Practicable
   Fair  Carrying              (Carrying
   Value  Value  Level 1  Level 2  Level 3  NAV  Value)
   (In Millions)
Assets:                     
Bonds  $71,551  $76,921     $64,220  $7,331      
Preferred stocks  1  1        1      
Common stocks (1)  143  142  $77     66      
Mortgage loans  16,238  18,648        16,238      
Cash, cash equivalents and short-term
investments		  3,018  3,018  2,941  22  55      
Contract loans  8,187  8,187        8,187      
Derivatives, net  1,149  1,612  36  (962)  2,075      
Securities lending reinvested collateral assets  3,096  3,096     3,096         
Other invested assets (1)  1,523  1,563     1,323  200      
Separate account assets  65,143  65,576  58,753  4,386  811  $1,193 
Liabilities:                     
Liability for deposit-type contracts (2)  21,669  21,914     15,964  5,705      
Separate account liability for deposit-type
contracts		  6  6        6      

 

   December 31, 2022
      Book/              Not
      Adjusted              Practicable
   Fair  Carrying              (Carrying
   Value  Value  Level 1  Level 2  Level 3  NAV  Value)
   (In Millions)
Assets:                      
Bonds  $65,965  $73,845     $61,162  $4,803       
Preferred stocks  4  4        4       
Common stocks (1)  195  195  $130     65       
Mortgage loans  16,705  19,028        16,705       
Cash, cash equivalents and short-term
investments		  888  888  855  19  14       
Contract loans  7,597  7,597        7,597       
Derivatives, net  (166)  215  52  (1,095)  877       
Securities lending reinvested collateral assets  2,828  2,828     2,828          
Other invested assets (1)  1,643  1,692     1,496  147       
Separate account assets  58,012  58,636  53,895  2,756  512  $849    
Liabilities:                      
Liability for deposit-type contracts (2)  17,856  18,503    13,138   4,718       
Separate account liability for deposit-type
contracts		  5  5        5       

 

(1) Excludes investments accounted for under the equity method. 

(2) Excludes deposit liabilities with no defined or contractual maturities.

 

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The tables above exclude the following financial instruments: investment income due and accrued, derivatives collateral receivable and payable and payable for securities lending. The fair value of these financial instruments, which are primarily classified as Level 2, approximates carrying value as they are short-term in nature such that there is minimal risk of material changes in fair value due to changes in interest rates or counterparty credit.

 

FAIR VALUE MEASUREMENT

 

The following methods and assumptions were used to estimate the fair value of these financial instruments as of December 31, 2023 and 2022:

 

MORTGAGE LOANS

 

The fair value of the mortgage loan portfolio is determined by discounting the estimated future cash flows, using current rates that are applicable to similar credit quality, property type and average maturity of the composite portfolio.

 

CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS (INCLUDING SECURITIES LENDING REINVESTED COLLATERAL ASSETS)

 

For cash and cash equivalents with maturities of three months or less from date of purchase, their fair values approximate their book/adjusted carrying values due to their short maturities. For short-term investments with maturities of one year or less from date of purchase, excluding cash equivalents and money market mutual funds, their fair values are determined using similar valuation techniques as described above for bonds. Cash equivalents that are money market mutual funds have fair values that approximate their book/adjusted carrying values due to the short maturities of the underlying investments of the funds. Securities lending reinvested collateral assets that are primarily reverse purchase agreements have fair values that approximate their book/adjusted carrying values due to their short maturities.

 

CONTRACT LOANS

 

Contract loans are not separable from their associated insurance contract and bear no credit risk since they do not exceed the contract's cash surrender value, making these assets fully secured by the cash surrender value of the contracts. Therefore, the carrying amount of the contract loans is a reasonable approximation of fair value.

 

OTHER INVESTED ASSETS

 

Other invested assets consist primarily of surplus note investments held from other insurance providers and WCFIs that are NAIC rated 1 or 2. The fair values of the surplus note investments are priced by an independent pricing service as described for bonds above. The WCFIs are held at accreted book value which approximates fair value due to the short-term nature of the investment.

 

LIABILITY FOR DEPOSIT-TYPE CONTRACTS

 

The primary methods used to determine the fair value of liability for deposit-type contracts are: discounted cash flow methodologies using significant unobservable inputs, discounted cash flow methodologies using current market risk-free interest rates and adding a spread to reflect nonperformance risk and the use of observable inputs, such as quoted prices for identical or similar instruments from third-party pricing services. The fair value of deposit-type contracts issued at floating rates or that are short-term in nature approximate their carrying value.

 

SEPARATE ACCOUNT LIABILITY FOR DEPOSIT-TYPE CONTRACTS

 

The statement value of separate account liability for deposit-type contracts is reported under separate account liabilities and is a reasonable estimate of their fair value because the contractual interest rates are variable and based on current market rates.

 

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5.DERIVATIVE INSTRUMENTS

 

The Company primarily utilizes derivative instruments to manage its exposure to interest rate risk, foreign currency risk and equity risk, collectively “market risk”, and credit risk. Derivative instruments are also used to manage the duration mismatch of general account assets and liabilities. Derivatives may be exchange-traded or contracted in the over-the-counter (OTC) market. The Company’s OTC derivatives are primarily bilateral contracts between two counterparties. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties. The Company utilizes a variety of derivative instruments including swaps, exchange-traded futures and options.

 

Market risk is the possibility that future changes in market conditions may make the derivative financial instrument less valuable. Credit risk is defined as the possibility that a loss may occur from the failure of another party to perform in accordance with the terms of the contract, which exceeds the value of existing collateral, if any. The Company mitigates these risks through established market and credit risk limits.

 

The following table summarizes the notional amount, net carrying value, and fair value of the Company's derivative instruments by derivative type. Cash collateral received from or pledged to counterparties is not included in the amounts below.

 

   Notional
Amount		  Net
Carrying
Value		  Fair Value
   (In Millions) 
December 31, 2023:            
Equity call options  $26,853   $2,077   $2,077 
Foreign currency swaps  8,807   197   136 
Interest rate swaps  9,294   (696)  (1,098)
Equity total return swaps  160   (2)  (2)
Equity futures  3,129   36   36 
Total  $48,243   $1,612   $1,149 
             
December 31, 2022:            
Equity call options  $24,922   $877   $877 
Foreign currency swaps  6,290   151   151 
Interest rate swaps  11,018   (865)  (1,246)
Equity total return swaps  136         
Equity futures  3,657   52   52 
Total  $46,023   $215   ($166)

 

Notional amount represents a standard of measurement of the volume of derivatives. Notional amount is not a quantification of market risk or credit risk and is not recorded in the statements of admitted assets, liabilities and capital and surplus - statutory basis. Notional amounts generally represent those amounts used to calculate contractual cash flows to be exchanged and are not paid or received, except for certain contracts such as foreign currency swaps.

 

COLLATERAL

 

For OTC and OTC-cleared derivatives, the Company pledges and receives cash and asset collateral. Cash collateral received from counterparties was $1.5 billion and $185 million as of December 31, 2023 and 2022, respectively. Cash collateral pledged to counterparties was $344 million and $682 million as of December 31, 2023 and 2022, respectively.

 

As of December 31, 2023 and 2022, the Company had also accepted collateral, consisting of various securities, with a fair value of $44 million and zero, respectively, which are held in separate custodial accounts. As of December 31, 2023 and 2022, none of this collateral had been repledged.

 

39

 

 

The Company is required to pledge initial margin for all futures contracts. The amount of required margin is determined by the exchange on which it is traded. The Company pledged cash and assets to satisfy this collateral requirement. Cash pledged for initial margin was $36 million and $52 million as of December 31, 2023 and 2022, respectively. Assets pledged to satisfy this requirement for initial margin had a fair value of $118 million and $187 million as of December 31, 2023 and 2022, respectively.

 

As of December 31, 2023 and 2022, the Company provided collateral in the form of various securities with a carrying value of $1.0 billion and $1.4 billion, respectively, which are included in bonds. The counterparties are permitted by contract to sell or repledge this collateral.

 

DERIVATIVES DESIGNATED AS FAIR VALUE HEDGES

 

The Company offers life insurance products with indexed account options. The interest credited on the indexed accounts is a function of the underlying domestic and/or international equity index, subject to various caps, thresholds and participation rates.

 

The Company utilizes equity call options to hedge the credit paid to the policyholder on the underlying index for its life insurance products with indexed account options. These equity call options are contracts to buy the index at a predetermined time at a contracted price. The contracts will be net settled in cash based on differentials in the index at the time of exercise and the strike price subject to a cap, net of option premiums. These equity call options are designated as a fair value hedge under statutory accounting principles with changes in fair value recorded in net realized capital gains (losses) less tax.

 

The Company utilizes foreign currency interest rate swap agreements to convert floating foreign denominated liabilities to floating U.S. dollar liabilities. A foreign currency interest rate swap involves the exchange of an initial principal amount in two currencies, and the agreement to re-exchange the currencies at a future date, at an agreed-upon exchange rate. There are also periodic exchanges of interest payments in the two currencies at specified intervals, calculated using agreed-upon interest rates, exchange rates and the exchanged principal amounts. The Company enters into these agreements primarily to manage the currency risk associated with investments and liabilities that are denominated in foreign currencies.

 

For the years ended December 31, 2023, 2022 and 2021, $841 million, $728 million and $554 million, respectively, of option premium expense recorded in net investment income for equity options hedging indexed life insurance products was excluded from the assessment of hedge effectiveness. For all other hedging relationships, no component of the hedging instrument’s fair value was excluded from the assessment of hedge effectiveness.

 

For the years ended December 31, 2023, 2022 and 2021, the Company recorded $30 million, $36 million and $15 million, respectively, in unrealized capital gain resulting from derivatives that no longer qualified for hedge accounting.

 

DERIVATIVES DESIGNATED AS CASH FLOW HEDGES

 

The Company utilizes foreign currency interest rate swap agreements to convert fixed or floating foreign denominated liabilities to U.S. dollar fixed liabilities.

 

The Company also utilizes interest rate swaps to hedge against reinvestment risk embedded in products with long durations. An interest rate swap agreement involves the exchange, at specified intervals, of interest payments resulting from the difference between fixed rate and floating rate interest amounts calculated by reference to an underlying notional amount. Generally, no cash is exchanged at the outset of the contract and no principal payments are made by either party.

 

The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is 39 years. The Company may discontinue cash flow hedge accounting because it is no longer probable that the forecasted transaction will occur by the end of the originally specified time period or within two months of the anticipated date. The Company did not have cash flow hedges that have been discontinued.

 

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

 

The Company offers a rider on certain variable annuity contracts that guarantees net principal over specified periods, as well as riders on certain variable annuity contracts that guarantee a minimum withdrawal benefit over specified periods, subject to certain restrictions.

 

40

 

 

The Company utilizes total return swaps, exchange-traded futures and equity put options based upon domestic and international equity market indices to economically hedge the equity risk of the guarantees in its variable annuity products. Total return swaps are swaps whereby the Company agrees to exchange the difference between the economic risk and reward of an equity index and a floating rate of interest, calculated by reference to an agreed upon notional amount. Cash is paid and received over the life of the contract based on the terms of the swap. In exchange-traded futures transactions, the Company agrees to purchase or sell a specified number of contracts, the values of which are determined by the underlying equity indices, and to post variation margin on a daily basis in an amount equal to the change in the daily fair value of those contracts. The equity put options involve the exchange of an upfront payment for the return, at the end of the option agreement, of the equity index below a specified strike price. The Company also utilizes interest rate swaps to manage interest rate risk in the variable annuity products.

 

The Company offers fixed indexed annuity products where interest is credited to the policyholder’s account balance based on domestic and/or international equity index changes, subject to various caps or participation rates. The Company utilizes total return swaps, exchange-traded equity futures and equity call options based upon market indices to economically hedge the interest credited to the policyholder based upon the underlying equity index. These equity call option contracts involve the exchange of an upfront premium payment for the return, at the end of the option agreement, of the differentials in the index at the time of exercise and the strike price subject to a cap.

 

Interest rate swaps are used by the Company to reduce market risk from changes in interest rates and other interest rate exposure arising from duration mismatches between assets and liabilities.

 

Foreign currency interest rate swap agreements are used to convert foreign-denominated assets or liabilities to U.S. dollar assets or liabilities.

 

The average and ending fair value of derivatives not designated as hedging instruments are as follows:

 

   Average Fair Value  Ending Fair Value
   Years Ended December 31,  as of December 31,
   2023  2022  2023  2022
       Asset  Liability  Asset  Liability
       (In Millions)   
Equity call options  $236   $184   $349       $103     
Equity total return swaps  (2)  1       $2         
Equity futures  44   79   36       52     
Foreign currency swaps  232   210   297   121   271   $18 
Interest rate swaps  (137)  (228)  29   150   39   181 
Equity put options  1                     
Total  $374   $246   $711   $273   $465   $199 

 

41

 

 

The following table summarizes the surplus and net realized capital gains (losses) impact on derivative instruments not designated as hedging instruments:

 

   Years Ended December 31,  Years Ended December 31,  
   2023  2022  2021  2023  2022  2021  
   Surplus  Net Realized Capital Gains (Losses)
       
   (In Millions)  
Equity total return swaps  ($2)   $2   ($2)              
Equity futures  (163)   104   15   ($201)  $233   ($416 )
Foreign currency swaps  (80)   94   25       128   69  
Interest rate swaps  (1)   3   (165)  (8)  (1,100)      
Equity call options  250    (336)  (36)  164   132   769  
Equity put options           (1)              
Total  $4    ($133)  ($164)  ($45)  ($607)  $422  

 

For the years ended December 31, 2023, 2022 and 2021, net losses from periodic net settlements and amortization recorded in net investment income were $271 million, $188 million and $176 million, respectively.

 

For equity call options with deferred financing premiums which are paid at the end of the derivative contract, summarized in the tables below are the undiscounted future settled premium commitments, equity call option fair value and equity call option fair value excluding impact of discounted future settled premiums (In Millions):

 

Years Ending December 31: Premium
Payments Due (1)
2024 $282
2025 50
2026 49
2027 123
Thereafter 26
Total undiscounted future settled premium commitments $530

 

(1) Premium payments are expected to be made monthly, based upon current maturity date of derivative contracts.

 

  Years Ended December 31,
  2023 2022
  (In Millions)
Undiscounted future premium commitments $530 $1,067
Equity call option fair value 697 774
Equity call option fair value excluding impact of discounted future settled premiums 697 774

 

DERIVATIVES DESIGNATED AS HEDGING UNDER SSAP NO. 108    

 

The hedged obligation consists of a portion of the Company's guaranteed benefits on variable annuity contracts, including related minimum benefit guarantees that is sensitive to interest rate movement. Changes in interest rates impact the present value of future product cash flows (discount rate), as well as the value of the investments comprising the account value to be assessed against the guarantee. The hedged portion of the block is determined on a monthly basis based on the percentage of the economic liability being hedged.

 

42

 

 

Interest rate risk may be hedged by a duration matched portfolio of interest sensitive derivatives, such as treasury futures, interest rate swaps, interest rate swaptions or treasury caps/floors. The Company entered into this hedging relationship effective January 1, 2022 and no changes have been made to the hedging strategy since inception. Hedge effectiveness is measured in accordance with the requirements outlined under SSAP No. 108 on a quarterly basis, both prospectively and retrospectively, and remains highly effective as of December 31, 2023.

 

The following table summarizes the scheduled amortization for the recognition of gains/losses and deferred assets and liabilities (In Millions):

 

Amortization Year  Deferred Assets  Deferred Liabilities
2024  $27     
2025  27     
2026  27     
2027  27     
2028 and thereafter  106     
Total  $214   $— 

 

The following table presents the rollforward of future amortization and total deferred balance (In Millions):

 

   December 31,
   2023  2022
Prior year total deferred balance  $328     
Current year amortization  (38)  ($19)
Current year deferred recognition  (76)  347 
Ending deferred balance  $214   $328 

 

The following table presents the open derivative removed from SSAP No. 108 and captured in scope of SSAP No. 86 (In Millions):

 

   December 31, 
   2023   2022 
Total derivative fair value change  $7   ($26)
Change in fair value reflected as a deferred asset/liability under SSAP No. 108  (4)  24 
Unrealized gain/loss recognized for derivative under SSAP No. 86  $3   ($2)

 

The following table presents the open derivative removed from SSAP No. 86 and captured in scope of SSAP No. 108 (In Millions):

 

   December 31, 
   2023   2022 
Total derivative fair value change  $6   ($271)
Unrealized gain/loss recognized prior to reclassification to SSAP No. 108      43 
Fair value changes available for applicants under SSAP No. 108  $6   ($228)

 

The Company did not have any hedging strategies no longer identified as highly effective previously captured within the scope of SSAP No. 108. The Company did not elect to terminate the hedging strategy and/or discontinue the special accounting provisions permitted within SSAP No. 108.

 

43

 

 

DERIVATIVE CREDIT EXPOSURE

 

The Company is exposed to credit-related losses in the event of nonperformance by derivative counterparties to OTC derivatives. The Company manages its credit risk by dealing with creditworthy counterparties, establishing risk-control limits, executing legally enforceable master netting agreements, and obtaining collateral where appropriate. In addition, the Company evaluates the financial stability of each counterparty before entering into each agreement and throughout the period that the financial instrument is owned.

 

The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives.

 

For OTC derivative transactions, the Company enters into legally enforceable master netting agreements which provide for the netting of payments and receipts with a single counterparty. The net position with each counterparty is calculated as the aggregate fair value of all derivative instruments with each counterparty, net of income or expense accruals and collateral paid or received. These master netting agreements include collateral arrangements with derivative counterparties, which require positions be marked to market and margined on a daily basis by the daily settlement of variation margin. The Company has minimal counterparty exposure to credit-related losses in the event of nonperformance by these counterparties.

 

The OTC agreements may include a termination event clause associated with financial strength ratings assigned by certain independent rating agencies. If these financial strength ratings were to fall below a specified level, as defined within each counterparty master agreement, or if one of the rating agencies were to cease to provide a financial strength rating, the counterparty could terminate the master agreement with payment due based on the net fair value of the underlying derivatives. As of December 31, 2023 and 2022, the Company’s financial strength ratings were above the specified level.

 

The Company’s credit exposure is measured on a counterparty basis as the net positive fair value of all derivative positions with the counterparty, net of income or expense accruals and collateral received. All of the net credit exposure for the Company from derivative contracts is with investment-grade counterparties. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance for the years ended December 31, 2023, 2022 and 2021. The Company does not expect any counterparties to fail to meet their obligations given their investment-grade ratings.

 

44

 

 

6.INCOME TAXES

 

The components of net admitted deferred tax assets are as follows:

 

  December 31, 2023   December 31, 2022
  Ordinary Capital Total   Ordinary Capital Total
    (In Millions)       (In Millions)  
Gross deferred tax assets $1,676 $81 $1,757   $1,118 $106 $1,224
Statutory valuation allowance adjustment              
Adjusted gross deferred tax assets 1,676 81 1,757   1,118 106 1,224
Deferred tax assets nonadmitted 337   337   435   435
Net admitted deferred tax asset 1,339 81 1,420   683 106 789
Deferred tax liabilities 125 549 674   132 $323 455

Net admitted deferred tax asset (net

deferred tax liability)

 

$1,214

 

($468)

 

$746

  

 

$551

 

($217)

 

$334

 

 

  

 

 

 

Change during 2023

    Ordinary Capital Total
      (In Millions)  
Gross deferred tax assets   $558 ($25) $533
Statutory valuation allowance adjustment        
Adjusted gross deferred tax assets   558 (25) 533
Deferred tax assets nonadmitted   (98)   (98)
Net admitted deferred tax asset   656 (25) 631
Deferred tax liabilities   (7) 226 219

Net admitted deferred tax asset (net

deferred tax liability)

  

 

$663

 

($251)

 

$412


 

45

 

 

The admission calculation components of SSAP No. 101, Income Taxes, are as follows:

 

  December 31, 2023   December 31, 2022
  Ordinary Capital Total   Ordinary Capital Total
  (In Millions)   (In Millions)
Federal income taxes paid in prior years recoverable through loss carrybacks              
Adjusted gross deferred tax assets expected to be realized after application of the threshold limitation $746   $746   $334   $334
Adjusted gross deferred tax assets expected to be realized following the balance sheet date

 

746

  

 

746

  

 

334

  

 

334

Adjusted gross deferred tax assets allowed per limitation threshold    

 

1,656

      

 

1,703

Adjusted gross deferred tax assets offset by gross deferred tax liabilities

 

125

 

$549

 

674

  

 

132

 

$323

 

455

Deferred tax assets admitted as the result of application of SSAP No. 101

 

$871

 

$549

 

$1,420

  

 

$466

 

$323

 

$789


 

  Change during 2023
  Ordinary Capital Total
  (In Millions)
     
Federal income taxes paid in prior years recoverable
through loss carrybacks		 $—    $— 
Adjusted gross deferred tax assets expected to be realized
after application of the threshold limitation		 412    412 
Adjusted gross deferred tax assets expected to be
realized following the balance sheet date		   412    412 
Adjusted gross deferred tax assets allowed per limitation
threshold		     (47)
Adjusted gross deferred tax assets offset by gross deferred
tax liabilities		   (7)   $226 219 
Deferred tax assets admitted as the result of application of
SSAP No. 101		   $405    $226   $631 

 

The ratio percentage and adjusted capital and surplus used to determine recovery period and threshold limitation are as follows ($ In Millions):

 

  December 31,
  2023 2022

Ratio percentage used to determine recovery period and threshold limitation amount

 

1,017%

 

973% 

Amount of adjusted capital and surplus used to determine recovery period and threshold limitation $11,037  $11,357

 

46

 

 

The impacts of tax planning strategies as of December 31, 2023 and 2022 are as follows ($ In Millions):

 

  December 31, 2023
  Ordinary Capital
Adjusted gross deferred tax assets $1,676 $81
Percent of total adjusted gross deferred tax assets 0% 0%

 

Net admitted adjusted gross deferred tax assets

 

$1,339

 

$81

Percent of total net admitted adjusted gross deferred tax assets 0% 0%
  December 31, 2022
  Ordinary Capital
Adjusted gross deferred tax assets $1,118 $106
Percent of total adjusted gross deferred tax assets 0% 0%

 

Net admitted adjusted gross deferred tax assets

 

$683

 

$106

Percent of total net admitted adjusted gross deferred tax assets 0% 0%

 

The Company's tax planning strategies do not include the use of reinsurance as of December 31, 2023 and 2022.

 

Federal income taxes are as follows:

 

  Years Ended December 31, Change Change
  2023 2022 2021 2023-2022 2022-2021
  (In Millions)

Federal income tax expense (benefit)

($26)

$9

$210 

($35)

($201)

Federal income taxes on net capital gains (loss) 57  22 (7) 35  29 
Other 5      5  — 
Federal income tax expense (benefit) $36  $31 $203  $5  ($172)

 

47

 

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows.

 

  December 31,  
Deferred tax assets: 2023 2022 Change
Ordinary: (In Millions)
Policyholder reserves $753 $486 $267 
Deferred acquisition costs 549 501 48 
Tax credit carryforward 255 34 221 
Compensation and benefits accrual 74 72 2 
Fixed assets 32 11 21 
Policyholder dividend accruals 2 2  
Other 11 12 (1)
Total 1,676 1,118 558 
Statutory valuation allowance adjustment      
Nonadmitted 337 435 (98)
Admitted ordinary deferred tax assets 1,339 683 656 

 

Capital:

      
Investments 81 106 (25)
Admitted capital deferred tax assets 81 106 (25)
       
Admitted deferred tax assets 1,420 789 631 

 

Deferred tax liabilities:

      
Ordinary:      
Investments 118 126 (8)
Fixed assets     — 
Other 7 6 1 
Total deferred tax liabilities 125 132 (7)

 

Capital:

      
Investments 549 323 226 
Total 549 323 226 

 

Deferred tax liabilities

 

674

 

455

 

219 

 

Net admitted deferred tax assets

 

$746

 

$334

 

$412 

 

48

 

 

The change in net deferred income taxes, exclusive of the nonadmitted assets, is as follows:

 

  December 31,  
  2023 2022 Change
  (In Millions)
Total deferred tax assets $1,756 $1,224 $532
Total deferred tax liabilities 674 455 219
Net deferred tax asset $1,082 $769 313
Tax effect of unrealized activities     2
Change in net deferred income tax     315

Solar energy tax credits not reflected in change in net deferred income tax

    

 

(221)

Change in net operating deferred income tax     $94

 

Federal income tax expense (benefit) is different from that which would be obtained by applying the statutory Federal income tax rate of 21% to income before income taxes. The significant items causing these differences are as follows:

 

  Years Ended December 31,
  2023 2022 2021
    (In Millions)  
Provision computed at statutory rate $1  $11  $225 
Tax impact from affiliates (3) 19  41 
Benefit of NOL carryback under CARES Act     (18)
Tax impact from surplus activities (20) (13)  
Foreign tax reclaims 5     
Prior year tax adjustments (8)    
Tax credits (18) (17) (21)
Taxes allocated under tax sharing agreement (19) (23) (24)
Dividend received deduction (26) (31) (33)
Tax impact from derivative gains (losses) from surplus 46  (112) (43)
Other (16) (7) (12)
Total statutory income tax ($58) ($173) $115 

 

Federal income tax expense (benefit)

 

$36 

 

$31 

 

$203 

Change in net deferred income taxes (94) (204) (88)
Total statutory income tax ($58) ($173) $115 

 

49

 

The Company has no low income housing and foreign tax credit carryforwards. The Company has a $255 million solar tax credit that originated in 2023 and will expire in 2043. The Company had no Alternative Minimum Tax credit carryforward. The Company had no adjustments of deferred tax assets (DTAs) and deferred tax liabilities (DTLs) for enacted changes in tax laws or a change in tax status. The Company had no adjustments to gross DTAs because of a change in circumstances that causes a change in judgment about the realizability of the related DTAs. The Company had no deposits under Section 6603 of the Internal Revenue Code.

 

The following are estimated Federal income taxes in the current and prior years that will be available for recoupment in the event of future net losses (In Millions):

 

  Ordinary Capital
2023 estimated    
2022   $29
2021   79

 

 

The Company had no federal or foreign income tax loss contingencies for which it is reasonably possible that the total liability will significantly increase within 12 months from December 31, 2023.

 

The Company's policy is to recognize interest expense and penalties related to tax contingencies as a component of Federal and foreign income taxes. During the years ended December 31, 2023, 2022 and 2021, the Company paid an immaterial amount of interest and penalties to state tax authorities.

 

PMHC and its subsidiaries file income tax returns in the U.S. Federal and various state jurisdictions. PMHC is under continuous audit by the Internal Revenue Service (IRS) and is audited periodically by some state taxing authorities. The IRS is currently examining PMHC’s tax returns for the years ended December 31, 2013 through 2018. In Q4 2023, the Company was notified that the exam for tax years ended December 31, 2019, 2020, and 2021 would commence in January 2024. The exam of the Federal tax returns through tax years ended December 31, 2012 has been completed and certain issues are under appeals. The State of California is auditing the tax year ended December 31, 2009 and certain issues are under protest. The Company does not expect the current Federal and California audits to result in any material assessments.

 

The Inflation Reduction Act enacted on August 16, 2022 is effective January 1, 2023 and imposes a 15% CAMT on corporations with three-year average adjusted financial statement income over $1.0 billion. The CAMT is payable to the extent the CAMT liability exceeds the regular corporate income tax liability; however, any CAMT paid would be available as a credit with indefinite carryover that could reduce future regular tax in excess of CAMT.

 

Following the guidance of Statutory Accounting Principles Working Group INT 23-03, the Company has determined that it is a nonapplicable reporting entity as the consolidated group of corporations of which the Company is a member does not expect to be subject to the CAMT in 2023. The Company expects to be subject to the CAMT after 2023; however, the Company has not determined if it expects to be liable for the CAMT. Accordingly, the year ended December 31, 2023 financial statements - statutory basis do not include an estimated impact of the CAMT.

 

 

7.BORROWED MONEY

 

The Company maintains a commercial paper program with available borrowings up to $1.0 billion and $700 million as of December 31, 2023 and December 31, 2022, respectively. There was no commercial paper debt outstanding as of December 31, 2023 and 2022. The Company maintains a $1.0 billion senior revolving credit facility available to both borrowers (the Company and Pacific LifeCorp) up to the full commitment amount with a maturity date of June 2026. This facility serves as a back-up line of credit to the commercial paper program. Interest is at variable rates. This facility had no debt outstanding as of December 31, 2023 and 2022. The revolving credit facility has certain debt covenants and the Company was in compliance with those debt covenants as of December 31, 2023.

 

The Company maintains a reverse repurchase line of credit with an unaffiliated financial institution. There was no debt outstanding in connection with this line of credit as of December 31, 2023 and 2022.

 

50

 

 

The Company is a member of the FHLB of Topeka. The Company is eligible to receive advances from the FHLB based on a percentage of the Company’s statutory general account assets provided it has sufficient available eligible collateral and is in compliance with the FHLB requirements, debt covenant restrictions and insurance laws and regulations. The Company's estimated maximum borrowing capacity (after taking into account required collateralization levels) was $6.0 billion and $3.5 billion as of December 31, 2023 and 2022, respectively. However, asset eligibility determination is subject to the FHLB's discretion and to the availability of qualifying assets at the Company. The Company received advances under short-term debt arrangements to provide for additional liquidity, which were accounted for as borrowed money under SSAP No. 15, Debt and Holding Company Obligations. There was no debt outstanding with the FHLB as of December 31, 2023 and 2022.

 

Through its membership, the Company has issued funding agreements to the FHLB in exchange for cash advances. The Company uses these funds in an investment spread strategy, consistent with its other investment spread business. As such, the Company applies SSAP No. 52, Deposit-Type Contracts, accounting treatment to these funds, consistent with its other deposit-type contracts. The funding agreement liabilities are included in liability for deposit-type contracts.

 

The collateral pledged to the FHLB is as follows:

 

  Fair Value Carrying
Value		 Aggregate
Total
Borrowing		 Fair Value Carrying
Value		 Aggregate
Total
Borrowing
  December 31, 2023 December 31, 2022
  (In Millions)
General Account: (1)            
Total collateral pledged $8,193 $9,271 $1,424 $4,747 $5,289 $1,342
Maximum collateral pledged 8,193 9,271 1,424 4,758 5,299 1,556

 

(1)  In 2023, the Company entered into a Subsidiary Collateral and Security Agreement with PAH to pledge certain affiliate collateral to the FHLB on behalf of the Company.

 

The amount borrowed from the FHLB as of December 31, 2023 and 2022 is as follows (In Millions):

 

  General
Account		 Funding
Agreement
Reserves
Established		 General
Account		 Funding
Agreement
Reserves
Established
  December 31, 2023 December 31, 2022
Debt  
Funding agreements $1,424 $1,429 $1,342 $1,347
Total $1,424 $1,429 $1,342 $1,347

 

The maximum borrowing from FHLB during the years ended December 31, 2023 and 2022 is as follows (In Millions):

 

  General Account
  Years Ended December 31,
  2023 2022
Debt $540 $887
Funding agreements 1,457 1,386
Total $1,997 $2,273

 

The Company's debt borrowings from FHLB are not subject to prepayment obligations. The Company's funding agreements with the FHLB are subject to prepayment obligations.

 

51

 

 

 

The Company is required to purchase stock in FHLB of Topeka each time it receives an advance. As of December 31, 2023 and 2022, the Company held $66 million and $62 million, respectively, of FHLB of Topeka stock, primarily consisting of membership Class B stock, which is recorded in common stock. None of the membership stock is eligible for redemption.

 

 

8.CAPITAL AND SURPLUS

 

DIVIDEND RESTRICTIONS

 

The payment of dividends by the Company to Pacific LifeCorp is subject to restrictions set forth in the State of Nebraska insurance laws. These laws require (i) notification to the NE DOI for the declaration and payment of any dividend and (ii) approval by the NE DOI for accumulated dividends within the preceding twelve months that exceed the greater of 10% of statutory policyholder surplus as of the preceding December 31 or statutory net gain from operations for the preceding twelve months ended December 31. Based on these restrictions and 2023 statutory results, the Company could pay up to $746 million in dividends in 2024 to Pacific LifeCorp, without prior approval by the NE DOI, subject to the notification requirement. Within the dividend restrictions, there are no restrictions placed on the portion of Company profits that may be paid as ordinary dividends to stockholders. There are no other restrictions on unassigned surplus.

 

No dividends were paid during the years ended December 31, 2023 and 2022. During the year ended December 31, 2021, the Company paid an ordinary dividend in the form of cash and bonds to Pacific LifeCorp of $450 million.

 

UNASSIGNED SURPLUS

 

The portion of unassigned surplus represented by cumulative unrealized gains, net, as of December 31, 2023 and 2022 was $682 million and $590 million, respectively.

 

SURPLUS NOTES

 

The carrying values of surplus notes are shown below:

 

  December 31,
  2023 2022
  (In Millions)
1993 Surplus Notes   $134
2009 Surplus Notes $300 300
2013 Surplus Note 406 405
2017 Surplus Notes 749 749
Total surplus notes $1,455 $1,588

 

1993 Surplus Notes:

 

In December 1993, the Company issued Contribution Certificates, also referred to as surplus notes (1993 Surplus Notes) in the principal amount of $150 million for net cash proceeds of approximately $147 million at an interest rate of 7.90% December 2023. Interest was payable semiannually on June 30 and December 30. Prior to the maturity of these surplus notes, total interest and principal paid on a cumulative basis was $352 million and $150 million, respectively, as of December 31, 2023. Interest paid on the 1993 Surplus Notes amounted to $11 million for the years ended December 31, 2023, 2022 and 2021 respectively, and is included in net investment income. Prior to the maturity of these surplus notes, there was zero principal paid during the years ended December 31, 2022 and 2021. In December 2023, with the approval of the NE DOI, the Company repaid the full $134 million. The Company had entered into interest rate swaps converting these surplus notes to variable rate notes based upon the London Interbank Offered Rate (LIBOR). During the year ended December 31, 2011, the interest rate swaps were terminated. Deferred gains related to the termination of the interest rate swaps were recorded directly to surplus in other surplus adjustments and were amortized as a reduction of interest expense over the life of the surplus notes using the effective interest method. As of December 31, 2023, all deferred gains were amortized into income. Amortization totaled $5 million for the years ended December 31, 2023, 2022 and 2021.

 

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The 1993 Surplus Notes were issued pursuant to Rule 144A under the Securities Act of 1933, underwritten by Merrill Lynch & Co., Goldman Sachs & Co., and J.P. Morgan Securities, Inc., and were administered by JPMorgan Chase Bank.

 

2009 Surplus Notes:

 

In June 2009, the Company issued $1 billion of surplus notes at a fixed interest rate of 9.25%, maturing in June 2039 (2009 Surplus Notes). Interest is payable semiannually on June 15 and December 15. Total interest and principal paid on a cumulative basis was and $1.1 billion and $700 million, respectively, as of December 31, 2023. Interest paid on the 2009 Surplus Notes amounted to $28 million, $63 million and $36 million for the years ended December 31, 2023, 2022 and 2021, respectively, and is included in net investment income. During the year ended December 31, 2023, no principal was paid. In September 2022, with the approval of the Director of the NE DOI, the Company repurchased and retired $85 million of the 2009 Surplus Notes. There was no principal paid during the year ended December 31, 2021. The Company may redeem all or a portion of the 2009 Surplus Notes at its option, subject to the prior approval of the Director of the NE DOI for such optional redemption. The 2009 Surplus Notes are unsecured and subordinated to all present and future senior indebtedness and policy claims of the Company. Each payment of interest on and the repayment of principal of the 2009 Surplus Notes may be made only out of the Company’s surplus and with the prior approval of the Director of the NE DOI. The Company had entered into interest rate swaps converting these surplus notes to variable rate notes based upon the LIBOR. During the year ended December 31, 2011, the interest rate swaps were terminated. Deferred gains related to the termination of the interest rate swaps were recorded directly to surplus in other surplus adjustments and are amortized as a reduction of interest expense over the life of the surplus notes using the effective interest method. As of December 31, 2023, total unamortized gains were $84 million. Amortization totaled $3 million for the years ended December 31, 2023, 2022 and 2021, respectively.

 

The 2009 Surplus Notes were issued pursuant to Rule 144A under the Securities Act of 1933, underwritten by Goldman Sachs & Co., UBS Investment Bank and Wachovia Securities. U.S. Bank has been appointed as fiscal agent to act as registrar, principal paying agent and transfer agent with respect to the 2009 Surplus Notes. The 2009 Surplus Notes are held by bank custodians for unaffiliated investors and may hold 10% or more of the outstanding notes at any time.

 

2013 Surplus Note:

 

In January 2013, the Company issued a $500 million, 30-year surplus note to its parent, Pacific LifeCorp, at a fixed interest rate of 5.125%, with semi-annual interest payments due January 25 and July 25, maturing in January 2043 (2013 Surplus Note). Each payment of interest on and the repayment of principal of the 2013 Surplus Notes may be made only out of the Company’s surplus and with the prior approval of the Director of the NE DOI. The 2013 Surplus Note is unsecured and subordinated to all present and future senior indebtedness and policy claims of the Company. Total interest and principal paid on a cumulative basis was $242 million and $90 million, respectively, as of December 31, 2023. Interest paid on the 2013 Surplus Note amounted to $21 million, $20 million and $21 million for the years ended December 31, 2023, 2022 and 2021, respectively, and is included in net investment income. There was no principal paid during the years ended December 31, 2023, 2022 and 2021.

 

2017 Surplus Notes:

 

In October 2017, with the approval of the Director of the NE DOI, the Company issued $750 million of 4.3% surplus notes maturing in October 2067 (2017 Surplus Notes). The 2017 Surplus Notes accrue interest at a fixed rate of 4.3% through October 23, 2047, and thereafter until maturity at a floating rate equal to the three-month LIBOR for deposits in U.S. dollars plus 2.796%. The loan agreement contains fallback language in the event LIBOR becomes unavailable. Interest is payable semiannually on April 24 and October 24 until and including October of 2047, and thereafter quarterly on January 24, April 24, July 24 and October 24 of each year, commencing on January 24, 2048. Total interest and principal paid on a cumulative basis was $193 million and zero, respectively, as of December 31, 2023. Interest paid on the 2017 Surplus Notes amounted to $32 million for the years ended December 31, 2023, 2022 and 2021, and is included in net investment income. There was no principal paid during the years ended December 31, 2023, 2022 and 2021.

 

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The 2017 Surplus Notes were issued pursuant to Rule 144A under the Securities Act of 1933, underwritten by Barclays, Citigroup, Credit Suisse, Wells Fargo Securities, and Goldman Sachs & Co. LLC. The Company may redeem all or a portion of the 2017 Surplus Notes at its option any time on or after October 2047 at the redemption price described under the terms of the 2017 Surplus Notes subject to the prior approval of the Director of the NE DOI for such optional redemption. Each payment of interest on and the repayment of principal of the 2017 Surplus Notes may be made only out of the Company’s surplus and with the prior approval of the Director of the NE DOI. The 2017 Surplus Notes are held by bank custodians for unaffiliated investors and may hold 10% or more of the outstanding notes at any time. The 2017 Surplus Notes are unsecured and subordinated to all present and future senior indebtedness and policy claims of the Company.

 

 

9.REINSURANCE

 

The Company has reinsurance contracts with other insurance companies and affiliates to limit potential losses, reduce exposure from larger mortality risks, and provide additional capacity for growth. As part of its risk management process, the Company routinely evaluates its reinsurance programs and may change retention limits, reinsurers, or other features at any time.

 

The ceding of risk does not discharge the Company from its primary obligations to contract owners. To the extent that the assuming companies become unable to meet their obligations under reinsurance contracts, the Company remains liable. Each reinsurer is reviewed to evaluate its financial stability before entering into each reinsurance contract and throughout the period that the reinsurance contract is in place.

 

Reserve adjustments on reinsurance ceded in the statements of operations - statutory basis relate to amounts ceded by the Company in connection with modified coinsurance reinsurance agreements. The amounts included in revenue adjustments on reinsurance ceded primarily represent ceded current and future policy benefits, net investment income, and net realized capital gains (losses) less tax, related to these agreements.

 

All assets associated with business reinsured on a modified coinsurance basis remain with, and under the control of, the Company.

 

For the years ended December 31, 2023, 2022 and 2021, premiums assumed were $1.0 billion, $1.2 billion and $2.5 billion, and premiums ceded were $12.7 billion, $2.6 billion and $1.8 billion, respectively. As of December 31, 2023 and 2022, reserve credits recorded on ceded reinsurance were $17.1 billion and $5.7 billion, respectively.

 

Amounts recoverable from reinsurers on paid losses, included in other assets, were $355 million and $194 million as of December 31, 2023 and 2022, respectively. Reinsurance recoveries for unpaid losses, included in other liabilities, totaled $334 million and $387 million as of December 31, 2023 and 2022, respectively.

 

The Company had ceded and assumed reinsurance contracts in place with Scottish Re (U.S.), Inc. (Scottish Re), a reinsurer whose financial stability deteriorated. In March 2019, Scottish Re's domiciliary state regulator issued a rehabilitation and injunction order, in which the regulator shall conduct and continue business of the reinsurer. In July 2023, the court granted a liquidation order for Scottish Re, which terminated the reinsurance contracts as of September 30, 2023. For the year ended December 31, 2023, the Company wrote off $39 million of claims incurred and $3 million of other for uncollectible reinsurance from Scottish Re. The impairment was reported in the statements of operations - statutory basis and was reclassified from a change in nonadmitted assets on the statements of capital and surplus - statutory basis. Therefore, there was no impact on total capital and surplus as of December 31, 2023. As of December 31, 2023, timing of expected settlements of the reinsurance recoverables is not certain. The Company does not expect the financial deterioration of the reinsurer to have a material adverse effect on the Company's financial statements - statutory basis as of December 31, 2023.

 

Scottish Re's reinsurance recoverable amounts from paid claims incurred prior to the reinsurance contract cancellation and which are not in dispute were $14 million as of December 31, 2023 and are reported in other assets. Total amounts recoverable from Scottish Re's estate for claims incurred before the reinsurance contract cancellation and other amounts expected to be recovered were $2 million and $10 million, respectively, as of December 31, 2023 and were nonadmitted. The net amount owed to Scottish Re’s estate was $53 million as of December 31, 2023, consisting of $62 million of contract claims reported in other liabilities and $9 million of uncollected premiums reported in other assets.

 

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As part of a strategic alliance, the Company reinsures risks associated with policies written by an independent producer group primarily through modified coinsurance arrangements with this producer group's reinsurance company. Premiums ceded to this producer group amounted to $423 million, $423 million and $371 million for the years ended December 31, 2023, 2022 and 2021, respectively. Direct premiums written or produced by this producer group amounted to $409 million, $319 million and $146 million for the years ended December 31, 2023, 2022 and 2021, respectively.

 

The estimated amount of the aggregate reduction in surplus of termination of all reinsurance agreements, by either party, was $2.3 billion and $2.7 billion as of December 31, 2023 and 2022, respectively. On September 15, 2023, the Company signed an indemnity reinsurance agreement with Hannover Life Reassurance Company of America (Bermuda) LTD to cede risks under certain indexed universal life insurance policies issued by the Company, effective December 31, 2023. The reinsurance will be on a coinsurance basis in respect of the Coinsurance Benefits under the Coinsured Policies and on a Yearly Renewable Term (YRT) basis in respect of the YRT Benefits under the YRT Reinsured Policies. The amount of reserve credits taken for new agreements or amendments to existing agreements, which included policies or contracts that were in force or which had existing reserves established by the Company, was $11.3 billion as of December 31, 2023.

 

The Company entered into a YRT reinsurance agreement with Swiss Re effective January 1, 2023, through which the Company cedes mortality risk on a certain block of permanent business.

 

Effective April 1, 2023, the Company entered into an agreement with Security Life of Denver Insurance Company (SLD) to recapture two coinsurance/YRT agreements ceding varying amounts of mortality risk related to specific life business. The coinsurance/YRT reserves recaptured were $354 million, reported in current and future policy benefits, and the assets received were $215 million, reported in premiums and annuity considerations.

 

CEDED AFFILIATED REINSURANCE

 

The Company cedes certain statutory reserves to affiliated special purpose financial insurance companies and affiliated captive reinsurance companies that are supported by a combination of cash, invested and other assets and third-party excess of loss reinsurance agreement or note facilities. As of December 31, 2023 and 2022, the Company’s total statutory reserve credit was $3.6 billion and $3.4 billion, respectively, which was partially supported by third-party excess of loss reinsurance agreement and note facilities.

 

The Company utilizes affiliated reinsurers to mitigate the statutory capital impact of NAIC Model Regulation “Valuation of Life Insurance Polices” (Regulation XXX) and NAIC Actuarial Guideline 38 on the Company’s universal life products with flexible duration no lapse guarantee rider (FDNLGR) benefits. PAR Vermont and PBRC are Vermont based special purpose financial insurance companies subject to regulatory supervision by the Vermont Department of Financial Regulation (Vermont Department). PAR Vermont and PBRC are wholly-owned subsidiaries of the Company and accredited authorized reinsurers in Nebraska. The Company cedes certain level term life insurance to PBRC and FDNLGR benefits to PAR Vermont and PBRC. Economic reserves, as defined in the PAR Vermont and PBRC reinsurance agreements, are supported by cash and invested and other assets, including funds withheld at the Company.

 

The Company has reinsurance agreements with RGBM, a wholly-owned, indirect subsidiary of Pacific LifeCorp domiciled in Bermuda, through which the Company retrocedes statutory reserves for a majority of the underlying YRT treaties on a 100% coinsurance basis to RGBM.

 

The Company has assumed reinsurance agreements with affiliated reinsurer Pacific Life Re International Limited UK Branch (RIBM UK) through which the Company provides two longevity reinsurance solutions associated with individual annuities and pension schemes. Reserves assumed through this agreement totaled $2.7 billion and $2.1 billion as of December 31, 2023 and 2022, respectively.

 

The Company executed a single reinsurance agreement subject to the requirements of NAIC Actuarial Guideline 48. The reinsurance agreement with PBRC was effective January 1, 2015 and covers certain level term insurance policies and the FDNLGR benefits on certain covered policies issued from January 1, 2015 through December 31, 2019. For this reinsurance agreement, funds consisting of certain defined assets (Primary Security) in an amount at least equal to the minimum amount required of Primary Security are held by the Company as security under the reinsurance agreement on a funds withheld basis. Funds consisting of other security in an amount at least equal to the portion of the statutory reserves, as to which Primary Security is not held, are held in a trust on behalf of the Company as security under the reinsurance agreement. As of December 31, 2023 and 2022, the Company did not have any non-zero Primary Security Shortfalls.

 

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The Company has policies issued that have been reinsured by Union Hamilton Reinsurance, Ltd., which is chartered in a country other than the U.S. that is owned in excess of 10% by a person not primarily engaged in the insurance business. Union Hamilton Reinsurance, Ltd., a Bermuda based subsidiary, which is wholly-owned by Wells Fargo & Company, provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services.

 

 

10.EMPLOYEE BENEFIT PLANS

 

PENSION PLAN

 

The Company maintains a Supplemental Executive Retirement Plan (SERP) for certain eligible employees. The SERP is a non- qualified defined benefit plan. As of December 31, 2023 and 2022, the benefit obligation and total liability recognized were $80 million. The accrued benefit costs were $64 million and $62 million and the liability for pension benefits was $16 million and $18 million as of December 31, 2023 and 2022, respectively. The fair value of plan assets as of December 31, 2023 and 2022 was zero.

 

The following is a summary of pension benefits as of December 31, 2023 and 2022:

 

  Years Ended December 31,
  2023 2022 2021
  (In Millions)
       
Total net periodic benefit cost $14 $8 $9

 

 

  December 31,
  2023 2022
  (In Millions)
Amounts in unassigned funds (surplus) that have not yet been recognized as components of net periodic benefit cost:    
Net prior service cost $1 $1
Net recognized gains or losses $16 $17

 

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Weighted average assumptions are as follows:

 

  Years Ended December 31,
Net Periodic Benefit Costs: 2023 2022 2021
Weighted average discount rate 5.30% 2.55% 2.05%
Interest crediting rates /Pre-1994 Retiree Reimbursement Agreement (RRA) subsidy increase (for cash balance plan and other plans with promised interest crediting rates) 5.00% 2.75% 2.40%

 

 

  December 31,
  2023 2022
Projected Benefit Obligations:    
Weighted average discount rate 5.65% 5.30%
Interest crediting rates/Pre-1994 RRA subsidy increase (for cash balance plan and other plans with promised interest crediting rates) 5.45%  5.00%

 

The following estimated future payments, which reflect expected future service, as appropriate, are expected to be paid for the pension and postretirement plans for the years ending December 31 (In Millions):

 

2024 2025 2026 2027 2028 2029 through 2033
$6 $7 $7 $8 $8 $47

 

POSTRETIREMENT BENEFIT PLAN

 

The Company provides a postretirement defined benefit health care reimbursement plan (the Plan) that provides benefits for eligible retirees and their dependents. As of December 31, 2023 and 2022, the benefit obligation and total liability recognized were $3 million and $4 million, respectively. The accrued benefit costs were $5 million and $6 million and the liability for pension benefits was ($2) million as of December 31, 2023 and 2022. The fair value of the plan assets as of December 31, 2023 and 2022 was zero. The Company reserves the right to modify or terminate the Plan at any time. As in the past, the general policy is to fund these benefits on a pay-as-you-go basis.

 

RETIREMENT INCENTIVE SAVINGS PLAN

 

The Company provides a Retirement Incentive Savings Plan (RISP) covering all eligible employees. The Company’s RISP matches 75% of each employee’s contribution, up to a maximum of 6% of eligible employee compensation. The Company’s match plus other contributions made by the Company to the RISP amounted to $51 million, $47 million and $41 million for the years ended December 31, 2023, 2022 and 2021, respectively.

 

OTHER PLANS

 

The Company has deferred compensation plans that permit eligible employees to defer portions of their compensation and earn interest on the deferred amounts. The interest rate is determined quarterly. The compensation that has been deferred has been accrued and the primary expense related to this plan, other than compensation, is interest on the deferred amounts. As of December 31, 2023 and 2022, the deferred amounts were $166 million and $145 million, respectively. The plan was credited $11 million, $9 million and $6 million for the years ended December 31, 2023, 2022 and 2021, respectively.

 

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11.RESERVES FOR LIFE CONTRACTS AND ANNUITY CONTRACTS AND CHANGE IN INCURRED LOSSES AND LOSS ADJUSTMENT EXPENSES

 

For whole life and term life policies with flat extra premium, the reserve consists of the regular standard reserve plus 50% of such extra premium. For whole life policies with a substandard rating, the reserve consists of the regular standard reserve plus an extra reserve based on an appropriate multiple of the valuation mortality table. For other policies with a substandard rating or flat extra, mean reserves are based on an appropriate multiple of or addition to the valuation mortality table.

 

As of December 31, 2023 and 2022, the Company had $15.6 billion and $18.0 billion, respectively, of insurance in force for which gross premiums are less than the net premiums according to the valuation standard set by the State of Nebraska.

 

For traditional policies, tabular interest, tabular less actual reserve released, and tabular cost have been determined by formula as described by the NAIC instructions. For non-traditional universal life type policies, the tabular interest and tabular cost are based on the actual interest credited to and monthly deductions from the policies. For some deferred annuity policies and some immediate payout policies, tabular interest was calculated using basic data.

 

The tabular interest on deposit funds not involving life contingencies has been determined from actual interest credited to deposits.

 

The components for other reserve changes are as follows:

 

  Ordinary Group   Ordinary Group  
  Life
Insurance		 Individual
Annuities		 Annuities Total Life
Insurance		 Individual
Annuities		 Annuities Total
  December 31,
  2023 2022
  (In Millions)
Includes the change of separate account fair value, surrender or alternative comparison values, partial withdrawals, changes in deficiency reserves, change in CRVM expense allowances and changes in additional actuarial reserves for AGXXXVIII $426 $10 $98 $534 $270 ($27) ($166) $77

 

As of December 31, 2023 and 2022, there were $14 million and $15 million, respectively, in aggregate reserves for accident and health contracts. There were no significant changes in methodology or assumptions of the reserves during the year ended December 31, 2023.

 

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12.ANALYSIS OF ANNUITY ACTUARIAL RESERVES AND DEPOSIT TYPE CONTRACT LIABILITIES BY WITHDRAWAL CHARACTERISTICS

 

The tables below describe withdrawal characteristics of individual annuities, group annuities and deposit-type contracts:

 

Individual Annuities:  December 31, 2023
   General  Separate Account     % of
   Account  Nonguaranteed  Total  Total
      ($ In Millions)      
Subject to discretionary withdrawal:            
With market value adjustment  $17,390     $17,390  21%
At book value less current surrender charge of 5% or more (1)  2,092     2,092  3%
At fair value     $46,795  46,795  56%
Total with market value adjustment or at fair value  19,482  46,795  66,277  80%
At book value without adjustment  10,263     10,263  12%
Not subject to discretionary withdrawal  6,942  2  6,944  8%
Total (gross: direct + assumed)  36,687  46,797  83,484  100%
Reinsurance ceded  1,766     1,766   
Total (net)  $34,921  $46,797  $81,718   
             
Amount included at book value less current surrender charge of 5% or more that will move to at book value without adjustment for the first time within the year after the statement date:  $310  $310      

 

(1) Withdrawal characteristic categories were evaluated using effective surrender charge rates, where applicable.

 

Group Annuities:  December 31, 2023
   General
Account		  Separate Account
With Guarantees		  Total  % of
Total
      ($ In Millions)      
Subject to discretionary withdrawal:            
With market value adjustment            
Not subject to discretionary withdrawal   7,966  $6,432  $14,398  100%
Total (gross: direct + assumed)   7,966  6,432  14,398  100%
Reinsurance ceded            
Total (net)   $7,966  $6,432  $14,398   

 

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Deposit-type Contracts:  December 31, 2023
   General
Account		  Separate Account
Nonguaranteed		  Total  % of
Total
      ($ In Millions)      
Subject to discretionary withdrawal:            
With market value adjustment  $153     $153  1%
At fair value     $6  6   
Total with market value adjustment or at fair value  153  6  159  1%
At book value without adjustment  3,957     3,957  18%
Not subject to discretionary withdrawal  17,895     17,895  81%
Total (gross: direct + assumed)  22,005  6  22,011  100%
Reinsurance ceded            
Total (net)  $22,005  $6  $22,011   

 

Total Individual and Group Annuities and Deposit-type Contracts:  December 31, 2023
   General
Account		  Separate Account
With Guarantees		  Separate Account
Nonguaranteed		  Total  % of
Total
      ($ In Millions)      
Subject to discretionary withdrawal:               
With market value adjustment  $17,543        $17,543  14%
At book value less current surrender charge of 5% or more (1) 

 

2,092

    

 

 

  2,092 

 

2%

At fair value        $46,801  46,801  39%
Total with market value adjustment or at fair value  19,635     46,801  66,436  55%
At book value without adjustment  14,220        14,220  12%
Not subject to discretionary withdrawal  32,803  $6,432  2  39,237  33%
Total (gross: direct + assumed)  66,658  6,432  46,803  119,893  100%
Reinsurance ceded  1,766        1,766   
Total (net)  $64,892  $6,432  $46,803  $118,127   

 

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Total Individual and Group Annuities and Deposit-type Contracts:  December 31, 2022
   General
Account		  Separate Account
With Guarantees		  Separate Account
Nonguaranteed		  Total  % of
Total
      ($ In Millions)      
Subject to discretionary withdrawal:               
With market value adjustment  $15,932        $15,932  15%
At book value less current surrender charge of 5% or more (1)  1,510        1,510  1%
At fair value        $43,889  43,889  40%
Total with market value adjustment or at fair value  17,442     43,889  61,331  56%
At book value without adjustment  14,170        14,170  13%
Not subject to discretionary withdrawal  29,207  $4,364  2  33,573  31%
Total (gross: direct + assumed)  60,819  4,364  43,891  109,074  100%
Reinsurance ceded  1,572        1,572   
Total (net)  $59,247  $4,364  $43,891  $107,502   

 

(1) Withdrawal characteristic categories were evaluated using effective surrender charge rates, where applicable.

 

The following information is obtained from the applicable exhibit in the Company's Annual Statement and related Separate Accounts Annual Statement, both of which are filed with the NE DOI, and are provided to reconcile annuity reserves and deposit- type contract funds and other liabilities without life or disability contingencies to amounts reported in the Annual Statement:

 

   December 31,
   2023  2022
   (In Millions)
Annual Statement:      
Annuities  $42,884  $40,659
Supplementary contracts with life contingencies  3  3
Deposit-type contracts and funding agreements  22,005  18,585
Subtotal  64,892  59,247
       
Separate Accounts Annual Statement:      
Annuities  53,229  48,251
Other contract deposit funds  6  4
Subtotal  53,235  48,255
       
Combined total  $118,127  $107,502

 

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13.ANALYSIS OF LIFE ACTUARIAL RESERVES BY WITHDRAWAL CHARACTERISTICS

 

The tables below describe withdrawal characteristics of life actuarial reserves as of December 31, 2023 and 2022:

 

December 31, 2023  General Account  Separate Account -
Nonguaranteed
   Account
Value		  Cash
Value		  Reserve  Account
Value		  Cash
Value		  Reserve
   (In Millions)
Subject to discretionary withdrawal, surrender values, or contract loans:
Universal life  $2,687  $3,160  $3,258         
Universal life with secondary guarantees  5,567  5,524  8,586         
Indexed universal life  128  86  108         
Indexed universal life with secondary guarantees  16,244  14,715  16,015         
Other permanent cash value life insurance  9,672  10,451  10,792         
Variable universal life  3,666  3,630  3,796  $11,984  $11,817  $11,811
Miscellaneous reserves  1  1  2         

 

Not subject to discretionary withdrawal or no cash values:

               
Term policies without cash value        1,282         
Disability - active lives (1)        13         
Disability - disabled lives        16         
Miscellaneous reserves        867         
Total (direct + assumed)   37,965  37,567  44,735  11,984  11,817  11,811
Reinsurance ceded        15,290         
Total (net)   $37,965  $37,567  $29,445  $11,984  $11,817  $11,811

 

(1) Certain disability - active lives were reported in the first section instead of the Disability - active lives row in the second section since they are subject to discretionary withdrawal.

 

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December 31, 2022   General Account   Separate Account -
Nonguaranteed
    Account
Value		   Cash
Value		   Reserve   Account
Value		   Cash
Value		   Reserve
    (In Millions)
Subject to discretionary withdrawal, surrender values, or contract loans:
Universal life  $2,758  $3,242  $3,327         
Universal life with secondary guarantees  5,548  5,516  8,418         
Indexed universal life  71  42  46         
Indexed universal life with secondary guarantees  14,376  13,675  14,214         
Other permanent cash value life insurance  9,932  10,693  11,034         
Variable universal life  3,752  3,728  3,858  $9,815  $9,678  $9,671
Miscellaneous reserves  2  2  7         

 

Not subject to discretionary withdrawal or no cash values:

               
Term policies without cash value        1,116         
Disability - active lives (1)        10         
Disability - disabled lives        14         
Miscellaneous reserves        879         
Total (direct + assumed)   36,439  36,898  42,923  9,815  9,678  9,671
Reinsurance ceded        4,140         
Total (net)   $36,439  $36,898  $38,783  $9,815  $9,678  $9,671

 

(1) Certain disability - active lives were reported in the first section instead of the Disability - active lives row in the second section since they are subject to discretionary withdrawal.

 

The table below describes the total withdrawal characteristics of life actuarial reserves for life and accident and health and separate accounts annual statements.

 

   December 31,
   2023  2022
Annual Statement:  (In Millions)
Life insurance section  $28,357  $37,723
Disability - active lives section  663  624
Disability - disabled lives section  11  10
Miscellaneous reserves section  414  426
Subtotal  29,445  38,783
       
Separate Accounts Annual Statement:      
Life insurance section  11,811  9,671
Combined total  $41,256  $48,454

 

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14.PREMIUM AND ANNUITY CONSIDERATIONS DEFERRED AND UNCOLLECTED

 

Deferred and uncollected life insurance premiums and annuity considerations are as follows:

 

  December 31, 2023 December 31, 2022
  Gross Net of
Loading		 Gross Net of
Loading
    (In Millions)  
Ordinary new business $2 ($27) $2 ($17)
Ordinary renewal 110 107 171 168
Group annuity 51 51 42 42
Total $163 $131 $215 $193

 

 

15.ELECTRONIC DATA PROCESSING EQUIPMENT AND SOFTWARE

 

Electronic data processing (EDP) equipment and non-operating software are carried at cost less accumulated depreciation and amortization and are included in other assets. The net amount of all non-operating software is nonadmitted. Depreciation and amortization expense is computed using the straight-line method over the lesser of the estimated useful life or three years for EDP equipment and five years for non-operating software. Costs incurred for the development of internal use non-operating software are capitalized and amortized using the straight-line method over the lesser of the estimated useful life or five years. Depreciation and amortization expense related to EDP equipment and non-operating software amounted to $25 million, $24 million and $22 million for the years ended December 31, 2023, 2022 and 2021, respectively.

 

Net admitted EDP equipment and non-operating software consist of the following:

 

  December 31,
  2023 2022
  (In Millions)
EDP equipment $37 $38
Non-operating system software 348 298
Total 385 336
Accumulated depreciation and amortization 244 231
Net 141 105
Nonadmitted 131 94
Net admitted $10 $11

 

16.SEPARATE ACCOUNTS

 

The Company utilizes Separate Accounts to record and account for assets and liabilities related to variable annuities, variable universal life and group annuities. The liabilities consist of reserves established to meet withdrawal and future benefit payment contractual provisions. Investment risk associated with market value changes are generally borne by the contract holders, except to the extent of the minimum guarantees made by the Company with respect to certain Separate Accounts.

 

In accordance with the products recorded within the Separate Accounts, some assets are considered legally insulated whereas others are not legally insulated from the General Account. The legal insulation of the separate account assets prevents such assets from being generally available to satisfy claims resulting from the General Account.

 

 64

 

 

As of December 31, 2023 and 2022, the Company’s Separate Accounts Annual Statement included legally insulated assets of $65.6 billion and $58.6 billion, respectively. The assets legally insulated and not legally insulated from the general account as of December 31, 2023 are attributed to the following products (In Millions):

 

Product Separate Account Assets
Legally Insulated		   Separate Account Assets
Not Legally Insulated
Variable annuities $47,633    
Variable universal life 11,985    
Group annuities 5,958    
Total $65,576   $—

 

In accordance with the products recorded within the Separate Account, some separate account liabilities are guaranteed by the General Account. In accordance with guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the General Account.

 

To compensate the General Account for the risk taken, the Separate Account paid risk charges as follows for the years ended December 31, 2023, 2022, 2021, 2020, and 2019 of $355 million, $352 million, $347 million, $300 million, and $293 million, respectively.

 

For the years ended December 31, 2023, 2022, 2021, 2020, and 2019, the General Account of the Company had paid $31 million, $35 million, $10 million, $15 million, and $14 million, respectively, toward the Separate Account guarantees.

 

The Company does not engage in securities lending transactions within the Separate Account.

 

The Company has Separate Accounts with guarantees comprised of the group annuities business where the General Account guarantees annuity payments if the Separate Accounts is unable to do so. Assets of the group annuities business are carried at amortized cost and the Company establishes an AVR as required. The Company's Separate Accounts without guarantees consist of the variable annuities and variable universal life businesses where the assets of these accounts are carried at fair value.

 

For the assets not measured at fair value, the following table shows the comparison of the amortized cost to the fair value and the unrealized gain (loss) that would have been recorded if the assets had been reported at fair value (In Millions):

 

December 31, 2023 December 31, 2022
Assets Held At
Amortized Cost		 Fair
Value		 Unrecorded Unrealized
Gain (Loss)		 Assets Held At
Amortized Cost		 Fair
Value		 Unrecorded Unrealized
Gain (Loss)
(In Millions)
$5,957 $5,526 ($431) $4,052 $3,428 ($624)

 

 65

 

 

Information regarding the separate accounts is as follows:

 

  Separate Accounts with
Guarantees  		     Separate Accounts with
Guarantees 		   
Nonindexed Guarantee     Nonindexed Guarantee    
  4% or
Less 		More than
4% 		Without
Guarantees 		Total 4% or
Less 		More than
4% 		Without
Guarantees		 Total
  Years Ended December 31,
2023 2022
(In Millions)
Premiums, considerations or deposits ($4) $2,064 $3,827 $5,886 $632 $885 $3,991 $5,508

 

  December 31,
  2023 2022
Reserves for accounts with assets at: (In Millions)
Fair value     $58,613 $58,613     $53,562 $53,562
Amortized cost $3,204 $3,228   6,432 $3,394 $970   4,364
Total reserves $3,204 $3,228 $58,613 $65,045 $3,394 $970 $53,562 $57,926
                 
Reserves by withdrawal characteristics:
Subject to discretionary withdrawal at fair value		     $58,611 $58,611   $53,560 $53,560
Not subject to discretionary withdrawal $3,204 $3,228 2 6,434 $3,394 $970 2 4,366
Total $3,204 $3,228 $58,613 $65,045 $3,394 $970 $53,562 $57,926

 

  Years Ended December 31,  
  2023 2022 2021  
  (In Millions)  

Transfers as reported in the summary of operations - statutory basis of the Separate Accounts Annual Statement:

        
Transfers to separate accounts $5,884 $5,507 $6,937  
Transfers from separate accounts 5,928 5,307 6,593  
Net transfers from separate accounts (44) 200 344  
Reconciling adjustments:        
Net lag loss for annuities in general account only (1) (1) (1)  
Transfers as reported in current and future policy benefits in the accompanying statements of operations - statutory basis ($45) $199 $343  

 

17.COMMITMENTS AND CONTINGENCIES

 

As of December 31, 2023, the Company had $1.7 billion and $13 million of outstanding mortgage loan commitments in the General Account and Separate Account, respectively, which were primarily advances available for construction loans. Construction loan advances are made during the term of the construction loan as the borrower meets certain loan advance requirements.

 

As of December 31, 2023, the Company had $5.5 billion of commitments to fund investments in SCA entities, joint ventures, partnerships and limited liability companies.

 

 66

 

 

 

As of December 31, 2023, the Company had $962 million and $37 million of outstanding contractual obligations to acquire private placement securities for the General Account and Separate Account, respectively.

 

The Company has an agreement with PL&A to lend up to $100 million at a variable interest rate. There was no amount outstanding as of December 31, 2023. The Company also has an intercompany uncommitted revolving credit facility with affiliates to lend or borrow funds. Under the agreement, the Company can lend or borrow up to 3% of the Company's admitted assets to certain affiliates as of the preceding December 31. The aggregate total borrowing of all outstanding loans is limited to $1.0 billion including any outstanding loans under other affiliate lending agreements. There were no borrowings outstanding under the facility as of December 31, 2023 and 2022.

 

In connection with the operations of certain subsidiaries, Pacific Life has made commitments to provide for additional capital funding as may be required. In connection with the operations of PSD, the Company made capital contributions to PSD of zero, $19 million and $19 million for the years ended December 31, 2023, 2022 and 2021, respectively. In connection with the operations of PLFA, the Company and PL&A are obligated to contribute additional capital funding as may be required according to their respective membership percentages. There were no capital contributions to PLFA for the years ended December 31, 2023, 2022 and 2021.

 

The Company has operating leases for office space and equipment of its primary operating centers in Newport Beach, California, Omaha, Nebraska and for its various field offices, which in most, but not all cases, are noncancelable. Rental expense, which is included in operating expenses, in connection with these leases was $12 million, $12 million and $12 million for the years ended December 31, 2023, 2022 and 2021, respectively. Aggregate minimum future commitments are as follows (In Millions):

 

  Year Ending December 31:    
  2024 $12  
  2025 11  
  2026 7  
  2027 7  
  2028 and thereafter 5  
  Total $42  

 

Certain rental commitments have renewal options extending through the year 2028. Some of these renewals are subject to adjustments in future periods.

 

The Company entered into agreements with Pacific Life Re (Australia) Pty Limited (PLRA), RIBM and RGBM, all such entities being wholly-owned indirect subsidiaries of Pacific LifeCorp, to guarantee the performance of reinsurance obligations of PLRA, RIBM and RGBM, respectively. The guarantees for PLRA and RIBM are secondary to the guarantees provided by Pacific LifeCorp and would only be triggered in the event of nonperformance by PLRA or RIBM and Pacific LifeCorp. PLRA, RIBM and RGBM each pay the Company a fee for their respective guarantees. Effective January 1, 2023, the Company no longer provides guarantees for the performance of certain obligations of Pacific Life Re Limited. Management believes that additional obligations, if any, related to the guarantee agreements are not likely to have a material adverse impact on the Company's financial statements - statutory basis.

 

CONTINGENCIES - LITIGATION

 

The Company is a respondent in a number of legal proceedings, some of which involve allegations for extra-contractual damages. Although the Company is confident of its position in these matters, success is not a certainty and a judge or jury could rule against the Company. In the opinion of management, the outcome of such proceedings is not likely to have a material adverse effect on the Company's financial statements - statutory basis. The Company believes adequate provision has been made in its financial statements - statutory basis for all probable and reasonably estimable losses for litigation claims against the Company, if any.

 

 67

 

 

CONTINGENCIES - IRS REVENUE RULING

 

In 2007, the IRS issued Rev. Rul. 2007-54, interpreting then-current tax law regarding the computation of the dividend received deduction (DRD). Later in 2007, the IRS issued Rev. Rul. 2007-61, suspending Rev. Rul. 2007-54 and indicating that the IRS would re-address this issue in a future regulation project. In 2014, the IRS issued Rev. Rul. 2014-7, stating that it would not address this issue through regulation, but instead would defer to legislative action. Rev. Rul. 2014-7 also expressly superseded Rev. Rul. 2007-54, and declared Rev. Rul. 2007-61 obsolete. With the enactment the Act on December 22, 2017, DRD computations have been modified effective January 1, 2018. Therefore, the Company does not expect that any of the rulings described above will affect DRD computations in the future. However, in open tax years before 2018, the Company could still lose a substantial portion of its DRD claims, which could in turn have a material adverse effect on the Company's financial statements - statutory basis.

 

CONTINGENCIES - OTHER

 

In the course of its business, the Company provides certain indemnifications related to dispositions, acquisitions, investments, lease agreements or other transactions that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. These obligations are typically subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. Because the amounts of these types of indemnifications often are not explicitly stated, the overall maximum amount of the obligation under such indemnifications cannot be reasonably estimated. The Company has not historically made material payments for these types of indemnifications. The estimated maximum potential amount of future payments under these obligations is not determinable due to the lack of a stated maximum liability for certain matters, and therefore, the Company may record a contingent reserve for such matters. Management believes that Company liabilities related to such matters are not likely to have a material adverse effect on the Company's financial statements - statutory basis.

 

The Company issues synthetic guaranteed interest contracts to Employee Retirement Income Security Act of 1974 (ERISA) qualified defined contribution employee benefit plans and 529 plans. The plan uses the contract in its stable value fixed income option. The Company receives a fee for providing book value accounting for the plan’s stable value fixed income option. In the event that plan participant elections exceed the fair value of the assets or if the contract is terminated and at the end of the termination period the book value under the contract exceeds the fair value of the assets, then the Company is required to pay the plan the difference between book value and fair value. The Company mitigates the investment risk through pre-approval and compliance monitoring of the investment guidelines, and contractual provisions including the credited rate reset formula that reflects the actual investment and cash flow experience of the underlying plan.

 

The Company is required by law to participate in the guaranty associations of the various states in which it is licensed to do business. The state guaranty associations ensure payments of guaranteed benefits, with certain restrictions, to policyholders of impaired or insolvent insurance companies by assessing all other companies operating in similar lines of business. The Company has not received notification of any insolvency that is expected to result in a material guaranty fund assessment.

 

The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. As of December 31, 2023 and 2022, the estimated liability was $4 million and $2 million, respectively. As of December 31, 2023 and 2022, the related premium tax receivable was $3 million and $2 million, respectively. These amounts represent management’s best estimate based on information received from the state in which the Company writes business and may change due to many factors including the Company’s share of the ultimate cost of current insolvencies. Future guaranty fund assessments are expected to be paid based on anticipated funding periods for each guaranty association obligation. Premium tax offsets are expected to be realized based on regulations set forth by various state taxing authorities.

 

See Note 5 for discussion of other contingencies related to derivative instruments.

 

See Note 6 for discussion of other contingencies related to income taxes.

 

See Note 9 for discussion of other contingencies related to reinsurance.

 

 68

 

 

Pacific Life Insurance Company

 

S U P P L E M E N T A L S C H E D U L E O F S E L E C T E D F I N A N C I A L D A T A
A S O F A N D F O R T H E Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 3

(In Millions)

 

Investment Income Earned  
U.S. Government bonds $26
Bonds exempt from U.S. tax  
Other bonds (unaffiliated) 3,339
Bonds of affiliates  
Preferred stocks (unaffiliated)  
Preferred stocks of affiliates  
Common stocks (unaffiliated) 9
Common stocks of affiliates 3
Mortgage loans 896
Real estate 39
Contract loans 358
Cash, cash equivalents and short-term investments 78
Derivative instruments (1,192)
Other invested assets 521
Aggregate write-ins for investment income 9
Gross Investment Income $4,086
   
Real Estate Owned - Book Value Less Encumbrances $120
   
Mortgage Loans - Book Value:  
Farm mortgages $969
Residential mortgages 232
Commercial mortgages 17,340
Mezzanine 107
Total Mortgage Loans $18,648
   
Mortgage Loans By Standing - Book Value:  
Good standing $18,260
Good standing with restructured terms $301
Interest overdue more than 90 days, not in foreclosure $10
Foreclosure in process $77
   
Other Long-Term Assets - Carrying Value $10,257
Bonds and Stocks of Parents, Subsidiaries and Affiliates - Carrying Value:  
Bonds  
Preferred stocks  
Common stocks $892

 

 69

 

 

Bonds and Short-Term Investments by NAIC Designation and Maturity:  
Bonds by Maturity - Statement Value:  
Due within one year or less   $5,736
Over 1 year through 5 years 29,264
Over 5 years through 10 years 20,407
Over 10 years through 20 years 9,434
Over 20 years 12,158
No maturity date  
Total by Maturity $76,999
   
Bonds by NAIC Designation - Statement Value: NAIC 1     $35,927
NAIC 2 36,778
NAIC 3 3,445
NAIC 4 734
NAIC 5 87
NAIC 6 28
Total by NAIC Designation $76,999
   
Total Bonds Publicly Traded   $34,020
Total Bonds Privately Traded $42,979
Preferred Stocks - Statement Value $1
Common Stocks - Unaffiliated - Fair Value $116
Common Stocks - Affiliated - Fair Value $26
Common Stocks - Subsidiaries - Statement Value $866
Short-term Investments - Carrying Value $77
Options, Caps & Floors Owned - Statement Value $2,077
Options, Caps & Floors Written and In Force - Statement Value  
Collar, Swap & Forward Agreements Open - Statement Value   ($501)
Futures Contracts Open - Current Value $152
Cash Equivalents $1,688
Cash on Deposit $1,253
   
Life Insurance In Force:  
Industrial  
Ordinary       $542,428
Credit Life  
Group Life   $14
   
Amount of Accidental Death Insurance In Force Under Ordinary Policies $44
   
Life Insurance Policies with Disability Provisions In Force:    
Industrial  
Ordinary       $16,548
Credit Life  

 

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Supplementary Contracts In Force:  
Ordinary - Not Involving Life Contingencies  
Amount on Deposit $17
Income Payable $1
Ordinary - Involving Life Contingencies  
Income Payable  
Group - Not Involving Life Contingencies  
Amount on Deposit  
Income Payable  
Group - Involving Life Contingencies  
Income Payable  
   
Annuities:  
Ordinary  
Immediate - Amount of Income Payable $1,047
Deferred - Fully Paid Account Balance $27,029
Deferred - Not Fully Paid - Account Balance $60
   
Group  
Amount of Income Payable $1,035
Fully Paid Account Balance  
Not Fully Paid - Account Balance  
   
Accident and Health Insurance - Premiums In Force:  
Other $8
Group  
Credit  
   
Deposit Funds and Dividend Accumulations:  
Deposit Funds - Account Balance $21,964
Dividend Accumulations - Account Balance $23

 

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Claim Payments 2023:  
Group Accident and Health - Year Ended December 31, 2023 2023  
2022  
2021  
2020  
2019  
Prior  
   
Other Accident and Health  
2023 $8
2022  
2021  
2020  
2019  
Prior  
   
Other Coverages that Use Developmental Methods to Calculate Claim Reserves 2023  
2022  
2021  
2020  
2019  
Prior  

 

 72

 

 

Pacific Life Insurance Company

 

S U P P L E M E N T A L S U M M A R Y I N V E S T M E N T S C H E D U L E
D E C E M B E R 3 1 , 2 0 2 3

($ In Millions)

 

  Gross Investment Holdings *   Admitted Assets as Reported in the Annual Statement
  Amount Percentage   Amount Securities
Lending
Reinvested
Collateral
Amount		 Total Percentage
Long-term bonds:              
U.S. Governments $804 0.647%   $804   $804 0.649%
All other governments 663 0.534%   663   663 0.535%
U.S. states, territories, and possessions, etc., guaranteed   102   0.082%     102     102   0.082%
U.S. political subdivisions of states, territories, and possessions, guaranteed   203   0.163%     203     203   0.164%
U.S. special revenue and special assessment obligations, etc., non-guaranteed   2,312   1.861%     2,312     2,312   1.866%
Industrial and miscellaneous 70,580 56.793%   70,580   70,580 56.957%
Hybrid securities 33 0.026%   33   33 0.026%
Unaffiliated bank loans 2,224 1.790%   2,224   2,224 1.795%
Total long-term bonds 76,921 61.896%   76,921 — 76,921 62.074%
               
Preferred stocks:              
Industrial and miscellaneous (unaffiliated) 1 0.001%   1   1 0.001%
Total preferred stocks 1 0.001%   1 — 1 0.001%
               
Common stocks:              
Industrial and miscellaneous other (unaffiliated) 68 0.053%   66   66 0.053%
Parent, subsidiaries and affiliates publicly traded 23 0.018%   23   23 0.018%
Parent, subsidiaries and affiliates other 866 0.699%   547   547 0.442%
Mutual funds 51 0.041%   51   51 0.041%
Total common stocks 1,008 0.811%   687 — 687 0.554%

 

(Continued)

*Gross Investment Holdings as valued in compliance with NAIC Accounting Practices and Procedures Manual.

 

 73

 

 

    Gross Investment Holdings *   Admitted Assets as Reported in the Annual Statement
    Amount   Percentage   Amount  

Securities

 

Lending

 

Reinvested

 

Collateral

 

Amount

   Total   Percentage
Mortgage loans:                        
Farm mortgages   $969   0.780%   $969       $969   0.782%
Residential mortgages   232   0.186%   232       232   0.187%
Commercial mortgages   17,340   13.953%   17,340       17,340   13.993%
Mezzanine real estate loans   107   0.086%   107       107   0.086%
Total mortgage loans   18,648   15.005%   18,648   —   18,648   15.048%
                         
Real estate:                        
Properties occupied by company   76   0.061%   76       76   0.061%
Properties held for production of income   44   0.035%   44       44   0.035%
Total real estate   120   0.096%   120   —   120   0.096%
                         
Cash, cash equivalents, and short-term investments:                        
Cash   1,253   1.008%   1,253       1,253   1.011%
Cash equivalents   1,688   1.359%   1,688   $3,096   4,784   3.861%
Short-term investments   77   0.062%   77       77   0.062%
Total cash, cash equivalents, and short-term investments   3,018   2.429%   3,018   3,096   6,114   4.934%
                         
Contract loans   8,187   6.589%   8,187       8,187   6.607%
Derivatives   2,530   2.036%   2,530       2,530   2.042%
Receivables for securities**   106   0.085%   106       106   0.085%
Securities lending   3,096   2.491%   3,096            
Other invested assets   10,640   8.561%   10,604       10,604   8.559%
Total invested assets   $124,275   100.000%   $123,918   $3,096   $123,918   100.000%

  

*Gross Investment Holdings as valued in compliance with NAIC Accounting Practices and Procedures Manual.

**Included in Other invested assets in the Annual Statement.

 

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Pacific Life Insurance Company

 

S U P P L E M E N T A L S C H E D U L E O F I N V E S T M E N T R I S K I N T E R R O G A T O R I E S
D E C E M B E R 3 1 , 2 0 2 3

 

 

The Company's total admitted assets, excluding separate accounts, as reported in the Statements of Admitted Assets, Liabilities and Capital and Surplus (Total Admitted Assets) was $127.7 billion as of December 31, 2023.

 

1.The 10 largest exposures to a single issuer/borrower/investment as of December 31, 2023, are as follows:

 

    Percentage
of Total
  (In Millions) Admitted Assets
Commercial loan (Mortgage Loan) $639 0.5%
Commercial loan (Mortgage Loan) 585 0.5%
Commercial loan (Mortgage Loan) 550 0.4%
Commercial loan (Mortgage Loan) 546 0.4%
Pacific Life & Annuity Company (Common Stock) (Subsidiary) 545 0.4%
Commercial loan (Mortgage Loan) 474 0.4%
Commercial loan (Mortgage Loan) 459 0.4%
Commercial loan (Mortgage Loan) 440 0.3%
Commercial loan (Mortgage Loan) 407 0.3%
Commercial loan (Mortgage Loan) 382 0.3%

 

2.The amounts and percentages of Total Admitted Assets held in bonds and preferred stocks by NAIC designation as of December 31, 2023, are as follows:

 

    (In Millions)   Percentage
of Total
Admitted Assets		       (In Millions)   Percentage
of Total
Admitted Assets
Bonds:           Preferred Stock:        
NAIC 1   $35,927   28.1%   NAIC 1        
NAIC 2   36,778   28.8%   NAIC 2        
NAIC 3   3,445   2.7%   NAIC 3        
NAIC 4   734   0.6%   NAIC 4        
NAIC 5   87   0.1%   NAIC 5        
NAIC 6   28   0.0%   NAIC 6   $1   0.0%

 

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3.Assets held in foreign investments as of December 31, 2023, totaled $21.5 billion, which represents 16.8% of Total Admitted Assets.

 

a.The aggregate foreign investment exposure, categorized by NAIC sovereign designation as of December 31, 2023, is as follows:

 

  (In Millions)

Percentage

 

of Total

 

Admitted Assets

Countries designated NAIC 1 $19,396 15.2%
Countries designated NAIC 2 1,536 1.2%
Countries designated NAIC 3 or below 539 0.4%

 

b.The largest foreign investment exposures in a single country, categorized by the country’s NAIC sovereign designation as of December 31, 2023, are as follows:

 

  (In Millions)

Percentage

 

of Total

 

Admitted Assets

Countries designated NAIC 1    
Country: Cayman Islands $5,799 4.5%
Country: United Kingdom (Great Britain) 3,728 2.9%
Countries designated NAIC 2    
Country: Mexico 444 0.3%
Country: India 275 0.2%
Countries designated NAIC 3 or below    
Country: Colombia 181 0.1%
Country: Brazil 80 0.1%

 

c.The aggregate unhedged foreign currency exposure as of December 31, 2023, totaled $270 million, which represents 0.2% of Total Admitted Assets.

 

d.The aggregate unhedged foreign currency exposure categorized by country’s NAIC sovereign designation as of December 31, 2023 is as follows:

 

  (In Millions)

Percentage

 

of Total

 

Admitted Assets

Countries designated NAIC 1 $270 0.2%

 

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e.The largest unhedged foreign currency exposures by country, categorized by the country's NAIC sovereign designation as of December 31, 2023 are as follows:

 

  (In Millions)

Percentage

 

of Total

 

Admitted Assets

  Countries designated NAIC 1

Country: Switzerland

 $89 0.1%
Country: United Kingdom (Great Britain) 80 0.1%

 

f.The 10 largest non-sovereign (i.e., non-governmental) foreign issues as of December 31, 2023 are as follows:

 

NAIC Designation Issuer (In Millions)

Percentage

 

of Total

 

Admitted Assets

1.G FE/2.A FE/2.C FE BNP Paribas $278 0.2%
1.G FE Anheuser-Busch Companies Inc 222 0.2%
1.E FE/2.A FE/2.B FE Groupe BPCE 214 0.2%
1.E FE/2.A FE Barclays Bank PLC 205 0.2%
1.E FE/1.G FE UBS A.G. 193 0.2%
1.D FE/1.G FE/2.A FE Credit Agricole SA/London 184 0.1%
2.B FE/2.C FE Societe Generale 170 0.1%
1.G FE/2.A FE/2.C FE HSBC Holdings PLC 158 0.1%
1.E FE/1.G FE/2.A FE Lloyds TSB Bank Group PLC 155 0.1%
1.E FE/1.G FE Mitsubishi UFJ Financial Group 153 0.1%

 

4.The aggregate amount and percentage of Total Admitted Assets held in Canadian investments and unhedged Canadian currency exposure are less than 2.5% of Total Admitted Assets as of December 31, 2023.

 

5.The aggregate amount and percentage of Total Admitted Assets held in investments with contractual sales restrictions are less than 2.5% of Total Admitted Assets as of December 31, 2023.

 

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6.The amounts and percentages of Total Admitted Assets held in the largest 10 equity interests as of December 31, 2023 are as follows:

 

Issuer (In Millions)

Percentage

 

of Total

 

Admitted Assets

Pacific Asset Holdings, LLC $4,239 3.3%
Pacific Life & Annuity Co 545 0.4%
Pacific Private Equity Opportunities Fund III, L.P. 385 0.3%
Pacific Private Equity Opportunities Fund IV, L.P. 381 0.3%
Pacific Private Equity Fund II LP 288 0.2%
Pacific Private Equity Opportunities Fund V, L.P. 186 0.1%
Pacific Private Credit Fund IV, L.P. 179 0.1%
Pacific Co-Invest Opportunities Fund II L.P. 142 0.1%
Pacific Private Credit Fund V, L.P. 129 0.1%
Pacific Private Credit Fund III, L.P. 113 0.1%

 

7.Assets held in nonaffiliated, privately placed equities are less than 2.5% of Total Admitted Assets as of December 31, 2023.

 

a.The 10 largest fund managers as of December 31, 2023 are as follows:

 

 

Total

 

Invested

 Diversified
Fund Manager (In Millions)
Aristotle $268 $268
Carbon VII GP LLC 109 109
Manulife Investment Management 90 90
CRSEF Lux GP. S.A.R.L. 77 77
Avanath AH Renaissance GP LLC 73 73
Montana Capital Partners AG 71 71
Brookfield Real Estate Finance Fund VI GP 68 68
Churchill Stateside 66 66
Astorg Asset Management, S.A R.L. 65 65
OPEP VIII General Partner, L.P. 65 65

  

8.Assets held in general partnership interests are less than 2.5% of Total Admitted Assets as of December 31, 2023.

 

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9.The amounts and percentages of Total Admitted Assets held in mortgage loans as of December 31, 2023 are as follows:

 

a.The 10 largest aggregate mortgage interests sharing the same property or group of properties as of December 31, 2023 are as follows:

 

Type (Residential, Commercial, Agricultural) (In Millions)

Percentage

 

of Total

 

Admitted Assets

Commercial loan $550 0.4%
Commercial loan 459 0.4%
Commercial loan 407 0.3%
Commercial loan 375 0.3%
Commercial loan 360 0.3%
Commercial loan 345 0.3%
Commercial loan 335 0.3%
Commercial loan 333 0.3%
Commercial loan 332 0.3%
Commercial loan 332 0.3%

 

10.The amounts and percentages of Total Admitted Assets held in the following categories of mortgage loans as of December 31, 2023 are as follows:

 

  (In Millions)

Percentage

 

of Total

 

Admitted Assets

Construction loans $3,264 2.6%
Mortgage loans over 90 days past due 10 0.0%
Mortgage loans in the process of foreclosure 77 0.1%
Mortgage loans foreclosed 30 0.0%
Restructured mortgage loans 301 0.2%

 

11.The aggregate mortgage loans having the following loan-to-value ratios as determined from the most current appraisals as of December 31, 2023 are as follows:

 

  (In Millions)

Percentage

 

of Total

 

Admitted Assets

 (In Millions)

Percentage

 

of Total

 

Admitted Assets

 (In Millions)

Percentage

 

of Total

 

Admitted Assets

  Residential: Commercial: Agricultural:
Above 95%     $374 0.3%    
91% to 95%            
81% to 90%            
71% to 80%     482 0.4% $1 0.0%
Below 70% $232 0.2% 16,591 13.0% 968 0.8%

  

12.Assets held in real estate are less than 2.5% of Total Admitted Assets as of December 31, 2023.

 

13.Assets held in investments held in mezzanine real estate loans are less than 2.5% of Total Admitted Assets as of December 31, 2023.

 

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14.The amounts and percentages of Total Admitted Assets subject to the following types of agreements as of December 31, 2023 and each of the preceding three quarters are as follows ($ In Millions):

 

    Percentage      
  December 31, of Total As of Each Quarter End
  2023 Admitted Assets 1st Quarter 2nd Quarter 3rd Quarter
Securities lending agreements $3,096 2.4% $4,190 $4,167 $3,962

 

15.The amounts and percentages of Total Admitted Assets for warrants not attached to other financial instruments, options, caps, and floors as of December 31, 2023, are as follows ($ In Millions):

 

 

December 31,

 

2023

Percentage

 

of Total

 

Admitted Assets

December 31,

 

2023

Percentage

 

of Total

 

Admitted Assets

  Owned: Written:
Hedging $2,077 1.6%    

 

 

16.The amounts and percentages of Total Admitted Assets of potential exposure for collars, swaps, and forwards as of December 31, 2023 and each of the preceding three quarters are as follows ($ In Millions):

 

    Percentage      
  December 31, of Total As of Each Quarter End
  2023 Admitted Assets 1st Quarter 2nd Quarter 3rd Quarter
Hedging $360 0.3% $347 $360 $354

 

 

17.The amounts and percentages of Total Admitted Assets of potential exposure for futures contracts as of December 31, 2023 and each of the preceding three quarters are as follows ($ In Millions):

 

    Percentage      
  December 31, of Total As of Each Quarter End
  2023 Admitted Assets 1st Quarter 2nd Quarter 3rd Quarter
Hedging $152 0.1% $256 $160 $173

 

 

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Pacific Life Insurance Company

 

S U P P L E M E N T A L S C H E D U L E O F R E I N S U R A N C E D I S C L O S U R E S
D E C E M B E R 3 1 , 2 0 2 3

 

The following information regarding reinsurance contracts is presented to satisfy the disclosure requirements in SSAP No. 61R, Life, Deposit-Type and Accident and Health Reinsurance, which apply to reinsurance contracts entered into, renewed or amended on or after January 1, 1996.

 

1.The Company has not reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is subject to Appendix A-791, Life and Health Reinsurance Agreements, that includes a provision that limits the reinsurer's assumption of significant risks identified in Appendix A-791.

 

2.The Company has not reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is not subject to Appendix A-791, for which reinsurance accounting was applied and includes a provision that limits the reinsurer's assumption of risk.

 

3.The Company does not have any reinsurance contracts (other than reinsurance contracts with a federal or state facility) that contain one or more of the following features which may result in delays in payment in form or in fact:

 

a.Provisions that permit the reporting of losses, or settlements to be made, less frequently than quarterly;

 

b.Provisions that permit payments due from the reinsurer to not be made in cash within 90 days of the settlement date (unless there is no activity during the period); or

 

c.The existence of payment schedules, accumulating retentions from multiple years, or any features inherently designed to delay timing of the reimbursement to the ceding entity.

 

4.The Company has not reflected reinsurance accounting credit for any contracts that are not subject to Appendix A-791 and not yearly renewable term reinsurance, which meet the risk transfer requirements of SSAP No. 61R.

 

5.The Company has not ceded any risk, which is not subject to Appendix A-791 and not yearly renewable term reinsurance, under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the year ended December 31, 2023 and are accounted for the contract as reinsurance under SAP and as a deposit under GAAP.

 

6.The Company has not ceded any risk, which is not subject to Appendix A-791 and not yearly renewable term reinsurance, under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the year ended December 31, 2023 and accounted for the contract as reinsurance under GAAP and as a deposit under SAP.

 

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