AM Best has opened an office in Singapore as part of its Asia-Pacific growth in the lead-up to creation of the Association of Southeast Asian Nations (ASEAN) single market.

The office – to offer ratings to insurers, reinsurers and takaful operators in Singapore and across the ASEAN region – will be led by Roger Sellek, CEO of the ratings agency’s operations in emerging markets, the Middle East and Africa and Asia-Pacific.

London-based Dr Sellek is relocating to Singapore, which will host the agency’s second branch in Asia-Pacific after Hong Kong.

He believes the office “will ensure we are even closer to our expanding client base of insurers and reinsurers in southeast Asia, Australia and New Zealand”.

Dr Sellek says growth in insurance markets such as Indonesia, the Philippines, Thailand, Vietnam and Malaysia means scope for expansion in southeast Asia is significant.

Insurers wanting to conduct cross-border business in the 10-member ASEAN Economic Community – due to begin on December 31 – will need a rating from an international ratings agency.

“Singapore is the obvious choice for a credit rating agency serving the insurance sector because it is home to almost 250 insurers, reinsurers, captives and broking companies,” Dr Sellek said.

AM Best currently has “live” credit ratings for 13 Singapore-based companies and almost 40 live ratings across ASEAN.