AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of Lincoln Heritage Life Insurance Company (Lincoln Heritage) (Springfield, IL). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect Lincoln Heritage’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The upgrading of the ratings for Lincoln Heritage reflects a trend of strong and consistent operating performance, with three consecutive years of record operating, underwriting, and investment earnings. The company’s strong operating performance is further evidenced in the return on equity ratios, which exceed 20% on a one-, three- and five-year basis. This trend of improved operating performance began in 2022, when the company reported strong underwriting gains mainly driven by a significant decline in death claims. This trend of underwriting income continued through 2024, and continues through first-quarter 2025, as claims trends have moderated over time post the COVID-19 pandemic. Investment income has also increased significantly in recent years, largely driven by growth in invested assets and an improvement in investment yield from the investment portfolio. Lincoln Heritage’s strong operating results have been accretive to the balance sheet, with risk-adjusted capital and liquidity metrics improving as its capital has accumulated over the long term.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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