AM Best Upgrades Fidelity Life Association Credit Rating
The rating agency increased Fidelity Life Association’s credit standing following its 2024 acquisition.
Updated on Oct. 16, 2026 in Insurance
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AM Best has upgraded the credit ratings of Fidelity Life Association to A from A- for its Financial Strength Rating and to a from a- for its Long-Term Issuer Credit Rating. This action follows the 2024 acquisition and integration of its parent company, Vericity Inc.
Why it matters
The upgrade reflects the stronger position of Fidelity Life Association as a member of the IA American Life Group. The company is expected to play a key role in the expansion of these operations throughout the United States.
Fidelity Life Association now holds an A Financial Strength Rating and an a Long-Term Issuer Credit Rating. Meanwhile, parent company Industrial Alliance retains an A+ and aa- rating, respectively.
The players
AM Best
This is a global credit rating agency that specializes in the insurance industry.
Fidelity Life Association
This is a U.S. insurance provider and a member of the IA American Life Group.
Industrial Alliance Insurance and Financial Services Inc.
This is a Canadian financial and insurance company that acts as the parent entity for these U.S. operations.
The details
The decision to upgrade Fidelity Life Association reflects its successful integration after being acquired by the IA American Life Group. Simultaneously, AM Best affirmed the strong credit ratings of the parent company, Industrial Alliance Insurance and Financial Services Inc., which is headquartered in Quebec, Canada.
Timeline
The acquisition of Vericity Inc. was completed in 2024.
The updated credit ratings for the companies were announced on October 16, 2026.
Market Dynamics
The rating upgrade marks a shift in the competitive landscape following the 2024 acquisition of Vericity Inc. This move aligns with broader industry trends where insurers consolidate to improve balance sheet strength and scale operations.
This credit upgrade signals increased stability for the insurer, which may reassure policyholders and stakeholders regarding its long-term financial health. The improved rating generally reflects a higher capacity for the company to meet its future obligations.
The takeaway
An upgrade in credit ratings typically indicates that a company has improved its financial stability and operational profile. Policyholders can view this as a positive sign of the insurer's ability to maintain its commitments over the long term.
Further reading
For more on industry financial health, visit United States Insurance.
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