Best’s News & Research Service - December 21, 2017 02:08 PM (EST)
A.M. Best Places Credit Ratings of Investors Heritage Life Insurance Co. and Parent Under Review with Developing Implications
- December 21, 2017 02:08 PM (EST)
Oldwick //BestWire// - 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.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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