AM Best: Australia’s Guild Insurance Credit Ratings Unchanged After Partnership

KUALA LUMPUR, March 11 (Bernama) -- AM Best has commented that the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Australia’s Guild Insurance Limited (GIL) remain unchanged following the announcement of its new strategic partnership with EML Group.

EML Group comprises Employers Mutual Limited and ASWIG Management Pty Ltd as trustee for the ASWIG Management Trust on behalf of its underlying investor shareholders.

Under the terms of the transaction announced on Feb 25, GIL’s ultimate owner, The Pharmacy Guild of Australia (PGOA), has agreed to sell a majority stake in GIL to Employers Mutual Limited and the shareholders of ASWIG Management Pty Ltd.

Meanwhile, a minority stake will be retained by Guild Group Holdings Limited, the commercial arm of the PGOA. The transaction is expected to close on or around July 1 and remains subject to regulatory approval, according to AM Best in a statement.

A global credit rating agency, news publisher and data analytics provider specialising in the insurance industry, AM Best expects the prospective change to the shareholding structure to have a neutral impact on GIL’s credit rating fundamentals.

-- BERNAMA