Heritage Life Insurance Company Surveillance Report
Rating Summary
The rating on HLIC reflects solid capitalization, a conservative liquidity position, and an experienced leadership team. HLIC’s year-end 2025 CAL RBC ratio of 444% has steadily improved in recent years, and was supported by recent capital infusions, including a $500 million equity contribution in 2024 and a $600 million equity contribution in 2025. Liquidity is strong, with HLIC maintaining nearly $2.4 billion in cash and equivalents as of 1Q26. The investment portfolio is well-diversified with roughly two-thirds of invested assets held in bonds, over 90% of which are investment-grade. Supplemental borrowing capacity through FHLB lines and bank facilities, together with a disciplined duration‐mismatch limit, further supports HLIC’s capital position. Executive leadership is long-tenured and has executed more than 40 reinsurance transactions with over 30 cedants since 2012.
Balancing these strengths are HLIC’s concentration in spread-based annuity reinsurance. This exposes…
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