AM Best Upgrades Lincoln Heritage Life Insurance Company's Credit Ratings to A

AM Best has upgraded the Financial Strength Rating of Lincoln Heritage Life Insurance Company to A (Excellent) from A- (Excellent) and revised the outlook to stable from positive. This upgrade reflects Lincoln Heritage's very strong balance sheet, strong operating performance, and effective enterprise risk management. Over the past three years, the company has demonstrated consistent record earnings in operating, underwriting, and investment categories, supported by return on equity ratios exceeding 20% across multiple years.

The underwriting gains have been driven by a decrease in death claims post-COVID-19 pandemic, and investment income has grown due to an improved portfolio yield and increased invested assets. These positive trends have strengthened the company's capital and liquidity positions, enhancing its risk-adjusted capital metrics. AM Best's credit ratings provide a benchmark for insurer financial health and influence market and regulatory perceptions, making this upgrade significant to stakeholders within the insurance sector.