AM Best


A.M. Best Upgrades Rating of Lincoln Heritage Life Insurance Company


CONTACTS:

Analyst(s)

Steven Crotteau

(908) 439-2200, ext. 5447

steven.crotteau@ambest.com



Raj Shah

(908) 439-2200, ext. 5409

raj.shah@ambest.com
Public Relations

Jim Peavy

(908) 439-2200, ext. 5644

james.peavy@ambest.com

Rachelle Striegel

(908) 439-2200, ext. 5378

rachelle.striegel@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK, N.J. - APRIL 14, 2006 12:00 AM (EDT)
A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Very Good) of Lincoln Heritage Life Insurance Company (Springfield, Illinois). The rating outlook is stable.

This rating action reflects Lincoln Heritage's strong risk-adjusted capitalization, consistently positive statutory earnings trend, improved balance-sheet quality and dominant market position in its core final expense business segment. Over the past five years, Lincoln Heritage has generated consistent earnings performance despite its accelerated new business growth, while maintaining strong risk-adjusted capitalization as measured by A.M. Best Capital Adequacy Ratio (BCAR). Among factors driving its positive statutory earnings results have been its strong competitive market position in the senior products line of business, good underwriting focus and growing critical mass to afford overall expense efficiency.

Partially offsetting these strengths are the challenges of growing its final expense and Medicare supplemental businesses in the highly competitive senior marketplace and their impact on Lincoln Heritage's future earnings.

For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit Best's Life Health Center.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.

Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.

AMB# Company Name
006694 Lincoln Heritage Life Insurance Company