Pacific Life and Allianz have agreed that PacLife will not exercise its option to sell Allianz the remaining portion of its ownership of investment manager PIMCO, approximately a third, over the next two years. After Allianz purchased the lion’s share of the company in 2000, it structured its agreement with PacLife with put and call options for the two parties to exercise any time starting in 2003.

"Together with Pacific Life, we have reached the conclusion that both sides would benefit from a continuation of the close cooperation and a prolongation of the ownership structure," Allianz officials said in a statement.

Allianz lost nearly $1.3 billion in 2002. Strapped for cash, the company apparently is looking to unload some of its assets, not spend between $1.6 and $2.1 billion dollars for the remaining portion of PIMCO.

Instead, the companies have altered their agreement, and "it is the mutual understanding of both sides that this revision should last over the coming years."

Officials did not specify the exact nature of the changes to the agreement or how long they expect to maintain the current ownership structure.

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