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A.M. Best Revises Outlook to Positive for Guild Insurance Limited

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© Business Wire 2014
2014-02-14 20:31:05 -

A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Guild Insurance Limited (GIL) (Australia).

The rating affirmations reflect GIL’s strong balance sheet, prudent reserving practice and established business profile in providing insurance products to the Australian allied health sector. The change in outlook recognizes the company’s continued initiatives to improve the sustainability of its earnings through remedial underwriting, product rationalization and process improvement.

These positive rating factors are partially offset by some uncertainty associated with GIL’s business expansion. As part of its strategy to transform itself from a niche allied health liability underwriter into a more broadly based mid-tier commercial insurance company, the company has

expansion plans aiming at new distribution channels. The prospective profitability of GIL’s operation will depend on how effectively this major transition is managed.

Positive rating actions may occur if GIL can continue to improve its underwriting performance, especially for the business underwritten through its new distribution channels. Negative rating actions could occur if there is a significant deterioration in risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), accompanied by a downward trend in underwriting results.

The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at : .. .

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This rating announcement has been issued by A.M. Best Asia-Pacific Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit : .. .

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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A.M. Best Company, Inc.Jason Shum, +852-2827-3430Financial
Analyst : orKen

Chow, +852-2827-3426Senior Financial Analyst : orRachelle
Morrow, +(1) 908-439-2200, ext. 5378Senior Manager, Public
Relations : orJim

Peavy, +(1) 908-439-2200, ext. 5644Assistant Vice
President, Public Relations :

Hossam Abdel-Kader
Phone: +43 1 9582319

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