"Our customer base and our workforce reflect the diversity of our great nation, something we take great pride in," the company said. "We will not be advertising on Mr Carlson's show in the coming weeks as we re-evaluate our relationship with his program." The Fortune 500 company is based in Newport Beach, California.
Pacific Life's pullout has come amid the death of 7-year-old Jakelin Caal, a Guatemalan girl who died in custody of U.S. border agents from dehydration and exhaustion.
The issue - another Fox News host who lost advertiser support over controversial comments - drew a sharp rebuke from the network.
"It is a shame that left-wing advocacy groups, under the guise of being supposed 'media watchdogs' weaponise social media against companies in an effort to stifle free speech," network spokeswoman Carly Shanahan said in a statement. "We continue to stand by and work with our advertisers through these unfortunate and unnecessary distractions."
Pacific Life has run commercials on Carlson's show for just over a year, spokesman Steven Chesterman told The Washington Post on Saturday. The company is not running any ads for other Fox News programs at this time, he said.
Carlson has been a frequent critic of immigration. In March, he voiced concern that America's demographics were changing too quickly without "debate."
In his Thursday monologue, Carlson rolled footage of Mexican protesters critical of the caravan, suggesting some were criminals mounting an "invasion," in an echo of President Donald Trump's rhetoric.
"That sounds like a Trump rally. When did Mexican citizens start talking like this? It's confusing, and of course, deeply hilarious and satisfying to watch," Carlson said.
The network has defended itself against similar advertiser pullouts driven by public scrutiny.
In March, half a dozen companies yanked commercials during Laura Ingraham's program after she taunted former Parkland student David Hogg. She later apologised, but Fox News co-president Jack Abernethy decried the move as "agenda-driven intimidation efforts" and censorship.