AM Best revised the outlook on Investors Heritage Life Insurance Company's Long-Term Issuer Credit Rating (Long-Term ICR) to negative from stable and affirmed its Financial Strength Rating (FSR) of B++ and Long-Term ICR of "bbb+". The agency said risk-adjusted capitalization, measured by Best's Capital Adequacy Ratio (BCAR), declined to adequate from strong because of higher non-equity security and interest rate risks, and it also pointed to a larger allocation to private credit assets. AM Best said the company has used affiliated and unaffiliated reinsurance to ease new business strain and improved operating performance in 2025, posting its first pre-tax operating gain since 2022 as lower annuity-related new sales strain, lower commission expense and a smaller increase in selling, general and administrative expenses offset a slight decline in net investment income tied to statutory accounting for its equity risk hedging program. The agency said earnings momentum from late 2025 through first-quarter 2026 has been positive, supporting strong growth in pre-tax operating earnings and net income, while it continues to monitor capital as liabilities expand.