Guild Insurance has responded to reports it may be an acquisition target by saying it has robust operations and a strong balance sheet, while not ruling out options for the business.

The Australian Financial Review Street Talk column says Guild has brought in UBS bankers to advise it, and that Suncorp and Employers Mutual Limited are among potential suitors keeping “a watching brief” on the business.

The column points to a weaker overall profit for Guild Insurance in fiscal 2024, with its annual report noting the severity of NSW workers’ compensation claims, an increase in arson attacks and large property claims, and major storms on the east coast.

“Media speculation was published overnight regarding strategic discussions between Guild Insurance and its adviser that contains inaccuracies,” Guild Insurance EGM Scott Simmons said in a statement to insuranceNEWS.com.au today.

“Guild Insurance has grown strongly in recent years, outpacing the broader insurance sector and delivering healthy underlying profitability.”

AM Best has assigned the insurer an A- (excellent) financial strength rating, he says.

The business, established in 1963 by the Pharmacy Guild of Australia, has more than 80,000 customers and works with more than 130 associations across healthcare, community services and broader business sectors.  

“Like any business, we consider opportunities to work with others to accelerate realising the potential of our business,” Mr Simmons said.

“We seek advice to assess the merits of possible strategic relationships that may create value for all our stakeholders, including our customers, by enhancing our unique model, culture and sector focus.”