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). The outlook of these Credit Ratings is stable.
GIL is considered a small insurer in Australia’s non-life sector, with GWP of AU$ 264 million and an overall market share of below 1% in 2022. 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.
The ratings reflect GIL’s strong balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management.
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 2022 (June 30th 2022) and is expected to remain at this level over the medium term.
GIL’s operating performance is adequate, with an average return on equity of 3.7% (fiscal years 2018-2022). In fiscal year 2022, GIL recorded a favourable pre-tax income of AUD 28.4 million primarily due to the release of COVID-19-related provisions. Prospectively, AM Best expects an adequate level of operating performance to be maintained and underpinned by positive technical profits, supported by expense efficiencies over the medium term.
Overall, AM Best believes that GIL’s rating reflects its strong balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management.
