AM Best Upgrades Issuer Credit Rating of Investors Heritage Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Investors Heritage Life Insurance Company (IHLIC) (Frankfort, KY), which is a subsidiary of Aquarian Insurance Holdings LLC (Aquarian). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect IHLIC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The upgrade of the Long-Term ICR reflects a change in AM Best’s assessment of IHLIC’s operating performance to adequate from marginal, driven by execution on the business plan. More specifically, the group experienced its growth in investment income, premium, and is profitable while in growth mode. Investors Heritage has experienced significant premium development over the past four years through the addition of new annuity products and management’s ability to capitalize on opportunities. In 2020, the company’s decline of premium was a strategic decision, as management didn’t see good opportunities in the market and acted conservatively. The company’s investment income has grown in recent years due an increasing asset base, driven by capital contributions while maintaining a high net yield compared to the life segment.

The strong balance sheet assessment reflects IHLIC’s consolidated risk-adjusted capitalization as well as capital contributions. It also reflects the holding company’s support as it provided sufficient capital injection to support the growth in 2021. IHLIC’s business profile is limited, but its geographic concentration and product diversification has been improving, with the introduction of a fixed indexed annuity in 2021. Furthermore, the ERM program is appropriate for the risk profile of the organization and the company performs ongoing sensitivity testing.

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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