SINGAPORE, 18 June 2025—AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Guild Insurance Limited (GIL) (Australia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect GIL’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. In addition, the ratings factor in a neutral holding company impact from GIL’s ultimate ownership by The Pharmacy Guild of Australia (PGOA).

GIL’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the very strong level as of fiscal year-end 2024 (30 June 2024), as measured by Best’s Capital Adequacy Ratio (BCAR). GIL’s financial flexibility is considered limited given its ultimate ownership by a not-for-profit organisation. Despite so, the company is viewed to have prudent capital management in place to support its strong regulatory solvency position, as well as its risk-adjusted capitalisation, which is expected to be at the strongest level over the medium term. Whilst the company adopts an appropriate reserving approach, GIL’s sizeable exposure to medium-to long-tail liability business could create additional uncertainty in its insurance liabilities.

AM Best views GIL’s operating performance as adequate, with the company generally recording operating profits. However, underwriting results had exhibited volatility over the past five fiscal years, primarily due to liability loss experience, the impact of COVID-19-related provisions and weather events. In fiscal year 2024, GIL recorded limited underwriting profits with a reported combined ratio (net/net, IFRS 17) of 101.2%, as calculated by AM Best, primarily driven by increased claim frequency and prior-year reserve strengthening. Investment income remains a key contributor to overall earnings, with the company reporting net investment return of 4.5% in fiscal year 2024. Prospectively, AM Best expects an adequate level of operating performance to be maintained, underpinned by positive technical profits and investment income.

AM Best views GIL’s business profile as neutral. The company is considered a small insurer in Australia’s non-life sector, with an overall market share of less than 1% in fiscal year 2024. However, GIL is a leading provider of insurance protection to allied health professional associations, supported by its direct access to members of its parent, PGOA, which is a national employers’ organisation representing community pharmacies across Australia.