Healthcare-focused insurer Guild Insurance has appointed UBS as its financial adviser as it evaluates strategic options, a move that aligns with increasing consolidation activity in Australia’s insurance sector.
Guild Insurance, which provides professional indemnity and business insurance to over 80,000 allied health professionals across the country, has attracted attention from several industry participants.
Sources familiar with the matter told The Australian Financial Review (AFR) that Suncorp Group and Employers Mutual Limited (EML) are monitoring developments closely.
UBS’s mandate includes gauging interest from potential suitors, particularly as Suncorp refocuses solely on insurance following the divestiture of its banking arm to ANZ in 2024. Both Suncorp and EML are viewed as natural candidates given their established market presence and alignment with Guild’s specialist portfolio.
Established in 1963 to serve Australia’s pharmacy sector, Guild Insurance has grown to underwrite various lines including workers’ compensation, travel, home and contents, and pet insurance under the Vets Choice brand launched in 2019. The company operates under the Guild Group umbrella, owned by the Pharmacy Guild of Australia. The broader group also includes Meridian Lawyers, Gold Cross (a pharmacy endorsement program), Acerta, and Guild Solutions Inc.
In a broader reshuffling of assets, Guild Group exited the superannuation space last year, selling Guild Super – its fund for pharmacy and allied health professionals – to ethical investment manager Future Super.
According to the group’s latest regulatory filings, Guild Insurance reported a profit after tax of $5.8 million for the 2024 financial year, down from $15.8 million in the prior period. Insurance premium revenue rose 11% to $318.6 million.
The profit decline was largely attributed to higher-than-expected claims volumes, including large losses linked to property damage and arson, and an uptick in workers’ compensation claims in New South Wales.
Acerta, the group’s commercial underwriting agency, contributed 40% of total profit, its highest annual contribution to date.
Guild’s strategic review comes as the general insurance sector experiences heightened merger and acquisition activity.
In the past year, IAG acquired the Royal Automobile Club of Queensland’s (RACQ) insurance arm for $855 million, while Allianz took over the Royal Automobile Association of South Australia’s (RAA) business for $642 million. Both are still in contention for RAC WA, which was listed for sale in late 2024.
Meanwhile, Nib Holdings has engaged Jarden to explore divestment or restructuring options for its travel insurance unit. Market speculation points to Zurich, owner of Cover-More, as a likely contender.
Recent data from WTW showed M&A deals are regaining momentum. Its Q1 2025 report found that acquiring firms globally outperformed market benchmarks by 1.5 percentage points – the first such occurrence since late 2022. The study reviewed 163 deals valued above US$100 million completed between January and March.
Asia Pacific accounted for much of the quarter’s deal value growth, led by China, while North America saw deal volume decline. In contrast, European and UK-based buyers posted strong relative performance.
