Niche underwriter Guild Insurance says it will fast-track growth after EML acquired a majority stake in the business.

Currently, Guild Insurance is 100% owned by Guild Group Holdings, the commercial subsidiary of the Pharmacy Guild of Australia. After the deal – reported in an exclusive Breaking News bulletin last week – Guild Group will retain 30%, with EML Group (comprising Employers Mutual Limited and the ASWIG Partners) acquiring 70%.

Guild Group CEO Paul Cassidy told insuranceNEWS.com.au the partnership will enable greater growth and provide access to top-notch technology solutions.

“I think it's fair to say that [the Pharmacy Guild’s] focus is primarily on fostering excellence in pharmacy, as opposed to building the optimal insurance company,” he said. “And they’re a not-for-profit, so they’ve got limited capacity to contribute financial support to Guild Insurance, which is a natural limiter on the investment we can make in the operations, but probably more importantly, the level of growth. 

“The financial strength the new partners bring to this equation will help just take the shackles off. We will be able to take advantage of growth opportunities which didn't exist prior to this partnership.”

Guild EGM Scott Simmons says EML’s expertise in technology is key.

“The fight around AI and technology, that’s not a cheap battle, and we’re a niche player, so we’ve got limited resource,” he said.

“Working with somebody who’s already done this work in AI, who’s already done a really a great job in technology, and bringing that into the general insurance space – we think it will actually accelerate not just our growth, but our customer service, and improve it further.”

EML says the deal broadens its workers’ compensation offering and it plans to turbocharge its technology spend and help Guild expand in general insurance lines.

“We’ve been focused for a fair while on how we’re going to enter into the privately underwritten workers’ compensation states, and this gives us a warm entry and licences without having to go around and just do it slowly,” CEO of EML Solutions Angus McCullagh told insuranceNEWS.com.au.

“We become effectively the only true national offering for someone who wants to deal with one claims manager or underwriter across the country.

“The secondary driver is that we think we’ve got a lot to add through our insurance platforms that we build in-house. After this goes through, we will be increasing the spend by about 50% on our technology, and it’s already big. We think that will make a massive difference to personal injury as the core, but also to all the general lines.”

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

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

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