AM Best Revises Outlooks to Positive for Lincoln Heritage Life Insurance Company
2024年7月18日 - 3:51AM
ビジネスワイヤ(英語)
AM Best has revised the outlooks to positive from stable
and affirmed the Financial Strength Rating of A- (Excellent) and
the Long-Term Issuer Credit Rating of “a-” (Excellent) of Lincoln
Heritage Life Insurance Company (Lincoln Heritage) (Springfield,
IL).
The Credit Ratings reflect Lincoln Heritage’s balance sheet
strength, which AM Best assesses as very strong, as well as its
adequate operating performance, limited business profile and
appropriate enterprise risk management.
The revised outlooks for Lincoln Heritage reflect a trend of
favorable operating performance observed over the past few years.
Underwriting performance improved in 2022, from the company
reporting a net underwriting loss in 2021, to a net underwriting
gain position in 2022, with continued improvement through 2023 that
more than doubled 2022’s underwriting gain. The increase was driven
by a trend of normalized claims experience post-COVID. In 2023, net
investment income also improved approximately 25% due to higher
invested assets and higher yields available in the market. The
company reported a record year for operating earnings from both a
pre-tax and post-tax perspective. Lincoln Heritage’s
return-on-equity ratio exceeds the industry average on both a one-
and five-year basis by a significant margin. The company’s
favorable operating performance in recent years has improved its
capitalization on both a risk-adjusted and absolute basis.
Lincoln Heritage is a mono-line final expense writer that is
licensed in 49 states and the District of Columbia. The company
targets the senior market with a special focus on the Hispanic
market. While the market for final expense is rather competitive
due to the commodity-like nature of the product, Lincoln Heritage
has a strong market position with an estimated 22% of new final
expense business in 2023. Partially offsetting these positive
factors are the company’s product concentration and moderate
geographic concentration.
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.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Tyler Samani Financial Analyst +1 908 882
2296 tyler.samani@ambest.com
Wayne Kaminski Associate Director +1 908 882
1916 wayne.kaminski@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com