A.M. Best has established a new office in Singapore as part of its continuing growth in the Asia Pacific Region.
The office will offer ratings to insurers, reinsurers, takaful operators and captives in Singapore and across the Association of Southeast Asian Nations (ASEAN) and Australasia regions.
The agency has stated that the development of the Asia Pacific region’s economies was the telling factor in the decision.
The new office, located in the heart of Singapore’s central business district, will be led by Roger Sellek, CEO of A.M. Best’s operations outside of the Americas.
Sellek is relocating from A.M. Best’s London office, which was established in 1998 as the group’s first office outside of the US.
Globally, A.M. Best undertakes almost 3,500 ratings for individual insurance and reinsurance entities.
Singapore is A.M. Best’s second office in Asia Pacific after Hong Kong, where the group opened 16 years ago. The Hong Kong office will continue to support A.M. Best’s client base in Greater China, Japan and Korea.
Sellek commented: “We are delighted to announce the opening of our new Singapore office, which we believe will ensure we are even closer to our expanding client base of insurers and reinsurers in Southeast Asia, Australia and New Zealand.”
“Singapore is the obvious choice for a credit rating agency serving the insurance sector as it is home to almost 250 insurers, reinsurers, captives and broking companies. It can truly lay claim to be the international insurance and reinsurance hub of Southeast Asia.”
Sellek also touted the country’s “forward-looking” regulator in the Monetary Authority of Singapore as well as an “excellent legal system and a highly trained workforce”.
A.M. Best currently has ‘live’ credit ratings for 13 Singapore-based companies and it has close to 40 live ratings across the ASEAN region.
Sellek said the scope for expansion in Southeast Asia was significant given the continuing rapid growth of many insurance markets in countries including Indonesia, the Philippines, Thailand, Vietnam and Malaysia.
A specific driver for A.M. Best’s new Singapore base was the impending arrival of the ASEAN Single Market, which is due to come into being at the end of 2015.
A.M. Best has stated that it believes a rating from an international rating agency will be a prerequisite for insurers that wish to conduct cross-border business within the Single Market in the future.
The A.M. Best staff in Singapore comprises a team of specialist credit rating analysts led by MM Lee, head of analytics for Asia Pacific, who has transferred from A.M. Best’s Hong Kong office, together with business development staff.
