EML Group has secured a majority stake in Guild Insurance, in a strategic partnership that aims to open up growth opportunities and fast-track development of tech and AI.

The companies say Guild’s “long-standing expertise” in general insurance and workers’ compensation products will complement EML’s specialist injury claims management and technology-enabled solutions.

Today’s announcement follows speculation last year that Guild was an acquisition target, with EML named as a possible suitor.

Guild Insurance will continue to operate as a standalone insurer under its current brand and operational management, and the Guild Group remains “a key shareholder”. Acerta, the intermediated division of Guild, will also retain its current branding.

Guild Group CEO Paul Cassidy says the deal facilitates the insurer’s growth ambitions through greater investment and access to technology.

“This partnership enables continued investment in the future of Guild Insurance, supporting faster modernisation of customer experiences while continuing to build on strong foundations,” he said.

Currently, Guild Insurance is 100% owned by Guild Group Holdings, the commercial subsidiary of the Pharmacy Guild of Australia. After the deal completes, Guild Group will retain 30%, with EML Group (comprising Employers Mutual Limited and the ASWIG Partners) acquiring 70%.

The financial details of the transaction have not been disclosed.

Guild – which has 300 staff and writes $350 million in annual premium – says the deal is not the result of performance concerns, with “incredible growth” continuing and record profits made last year.

“There is no financial reason requiring us to do this transaction,” Mr Cassidy told insuranceNEWS.com.au. “But this really takes the shackles off in terms of growth.”

While the two companies’ workers’ compensation teams may be merged, they expect minimal impact on staff.

EML Group says the deal gives it access to privately run workers’ compensation schemes, and it aims to increase its technology spend by 50%.

“Partnering with Guild Insurance enables us to support more customers with an expanded insurance offering, while also being able to offer technology-enabled solutions that improve recovery and claims outcomes,” executive chairman Cameron McCullagh said.

The partnership, which takes effect in July, is subject to regulatory approval.

Guild Insurance, established in 1963 by the Pharmacy Guild of Australia, offers business and professional indemnity insurance to a range of occupations, plus workers’ compensation, home, pet and travel insurance, through PassportCard. It operates direct but also has an intermediated arm, Acerta.

EML, which was formed by five bakers in 1910, has 4000 staff and describes itself as Australia’s largest personal injury claims manager.