Honan Insurance Group has been granted a broking licence from the Monetary Authority of Singapore (MAS), paving the way for the company to expand in the Asian financial centre.

The approval allows Honan to complete the acquisition of privately owned Singapore company Macs Insurance Brokers, in which it took up an initial 15% stake more than two years ago.

Honan’s expertise in Australia includes the technology sector, where the company sources cover for classes including professional indemnity, directors’ and officers’ and cyber risk.

“We are exporting our expertise into Singapore and southeast Asia,” CEO Damien Honan told insuranceNEWS.com.au. “We are very excited about it.”

Honan moved into Singapore in 2010 through agency business after expanding in New Zealand and Australia.

The process of acquiring the broking licence took the company about two years, including about six months of internal preparation and 18 months working with the MAS.

Honan will have 16 staff in Singapore following the acquisition of Macs, which earns about $S10 million ($8.7 million) in premium.

A significant amount of business is placed through the Lloyd’s Singapore market, which has expanded rapidly in the past few years.

“In order to accomplish our goals and thrive in the global insurance marketplace we have needed to adopt new business strategies and penetrate key international markets,” Mr Honan said.

The effects of the global financial crisis had also encouraged businesses from the US, Europe and Australia to seek opportunities in the Asia-Pacific region, he said.

Honan Insurance, which is part of the Worldwide Broker Network, may look at further expansion opportunities in Asia after the Singapore purchase is bedded down.