Sydney: 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) for Australia's Guild Insurance Limited (GIL). The outlook for both ratings remains stable.

According to BERNAMA News Agency, the ratings reflect GIL's exceptionally strong balance sheet, coupled with adequate operating performance, a neutral business profile, and suitable enterprise risk management. GIL's capital position continues to reinforce its balance sheet, with risk-adjusted capitalisation assessed at the strongest level by the end of fiscal year 2025, as measured by Best's Capital Adequacy Ratio.

While AM Best acknowledges the limited financial flexibility due to GIL's ownership by The Pharmacy Guild of Australia, it recognizes the insurer's careful capital management and strong regulatory compliance. The agency expects capitalisation to remain at a very strong level over the medium term, though acknowledges potential volatility in reserves due to exposure to medium- and long-tail liability lines.

GIL's operating performance is deemed adequate, supported by consistent profitability over the past five fiscal years and the first half of fiscal 2026. Earnings have experienced some fluctuations due to liability loss experiences, pandemic-related provisions, and weather events. In fiscal 2025, GIL achieved improved underwriting performance with a combined ratio of 89.5 percent under IFRS 17 metrics, following targeted management actions. Investment income continues to be a significant earnings contributor, with a reported net investment return of 6.6 percent.

AM Best considers GIL's business profile as neutral. Despite holding a market share of under one percent, the company maintains a strong niche position by serving allied health professionals through direct access to members of its parent organization, which represents community pharmacies nationwide.