OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with developing implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” of Investors Heritage Life Insurance Company (Investors Heritage Life). Concurrently, A.M. Best has placed under review with developing implications the Long-Term ICR of “bb-” of the company’s ultimate parent, Investors Heritage Capital Corporation (IHCC) (OTC:IHRC). Both companies are domiciled in Frankfort, KY.
This Credit Rating (rating) action follows the recent announcement that Aquarian Investors Heritage Holdings (Aquarian) intends to acquire 100% of IHCC and its subsidiaries. The transaction is expected to close in the first quarter of 2018, and is subject to regulatory approvals and other customary closing conditions. Investors Heritage Life will continue to offer primarily final expense and pre-need life insurance products, as well as third-party administrative services. Aquarian plans to infuse capital into Investors Heritage Life, thereby enabling the company to expand its products and services to new states.
The potential rating impact is uncertain given that the ratings are placed under review with developing implications. A.M. Best anticipates that the ratings of Investors Heritage Life and IHCC will remain under review pending the completion of the transaction and the conclusion of its discussions with management. Additionally, A.M. Best will review Aquarian’s business strategy and financial condition.
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