AM Best Affirms Credit Ratings of Guild Insurance Limited

SINGAPORE--(BUSINESS WIRE)--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.

GIL’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level as of fiscal year-end 2025 (30 June 2025), as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best views GIL’s financial flexibility as limited, given its ultimate ownership by The Pharmacy Guild of Australia (PGOA), a not-for-profit organisation. Notwithstanding that, the company is considered to have prudent capital management, which supports its strong regulatory position, as well as its risk-adjusted capitalisation, which is expected to be at least at the very strong level over the medium term. Whilst the company adopts an appropriate reserving approach, its sizeable exposure to medium- to long-tail liability business can potentially create volatility in its insurance liabilities.

AM Best views GIL’s operating performance as adequate, with the company reporting positive earnings in most of the last five years (fiscal years 2021 – 2025), and for the first half of fiscal year 2026. The company’s operating results exhibited a level of volatility during the last five fiscal years primarily due to its liability loss experience, the impact of COVID-19-related provisions and weather events. In fiscal year 2025, GIL recorded improved insurance service results, with a combined ratio (net/net, IFRS 17) of 89.5%, as calculated by AM Best. This follows a series of management actions implemented during the fiscal year. Investment income remains a key contributor to overall earnings, with the company reporting a net investment return of 6.6% in fiscal year 2025.

AM Best views GIL’s business profile as neutral. Despite its small market share of less than 1% in 2025, 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 www.ambest.com.

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