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AM Best Affirms Credit Ratings of Guild Insurance Limited

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 the company’s ultimate ownership by The Pharmacy Guild of Australia (PGOA).

GIL’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which was at the strongest level in fiscal year-end 2023 (30 June 2023). Whilst GIL’s financial flexibility is considered limited given its ultimate ownership by a not-for-profit organisation, the company has prudent capital management in place to support its regulatory solvency position, as well as maintain its risk-adjusted capitalisation at the strongest level over the medium term. GIL has a sizable exposure to medium-to long-tail liability business, which could create additional uncertainty in its insurance liabilities. However, the company adopts a conservative reserving approach by holding a buffer in held reserves above the regulatory-imposed minimum.

AM Best views GIL’s operating performance as adequate, with an average return-on-equity ratio of 4.7% (fiscal-years 2019-2023). Over this period, the operating performance metrics exhibited heightened volatility, due to the impact of COVID-19-related provisions, weather events and volatility in the financial markets. Despite this, GIL’s expense ratio improved as a result of increased operational scale and cost management initiatives. Prospectively, AM Best expects an adequate level of operating performance to be maintained and 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 gross premiums of AUD 287 million and an overall market share of below 1% in 2023. 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.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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