AM Best Affirms Guild Insurance Credit Ratings At Excellent
KUALA LUMPUR, April 29 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Australia’s Guild Insurance Limited (GIL), with the outlook for both credit ratings (ratings) remaining stable.
The ratings reflect GIL’s very strong balance sheet strength, alongside adequate operating performance, neutral business profile and appropriate enterprise risk management, according to AM Best in a statement.
GIL’s capital position continues to underpin its balance sheet, with risk-adjusted capitalisation assessed at the strongest level at the end of fiscal year 2025 (June 30, 2025), as measured by Best’s Capital Adequacy Ratio.
While financial flexibility is viewed as limited due to its ownership by The Pharmacy Guild of Australia (PGOA), AM Best noted the insurer’s prudent capital management and solid regulatory standing.
Capitalisation is expected to remain at least at a very strong level over the medium term, though exposure to medium- and long-tail liability lines could introduce volatility in reserves.
Operating performance is assessed as adequate, supported by consistent profitability across most of the past five fiscal years and into the first half of fiscal 2026. Earnings have shown some volatility, driven by liability loss experience, pandemic-related provisions and weather events.
In fiscal 2025, GIL reported improved underwriting performance, posting a combined ratio of 89.5 per cent under IFRS 17 metrics. The result follows targeted management actions implemented during the year. Investment income remains a key earnings driver, with a reported net investment return of 6.6 per cent.
AM Best views GIL’s business profile as neutral. Despite its market share of under one per cent, the company maintains a strong niche position, serving allied health professionals through direct access to members of its parent organisation, which represents community pharmacies nationwide.
-- BERNAMA