ENSA specializes in insuring the future and well-being of the Angolan people

he insurance sector in Angola has reflected the country’s transition from colonization to Cold War interests and internal conflict, and finally to peace and democracy. Before 1975, the sector was flourishing, with more than 20 agencies providing the country’s coverage. With the onset of civil war, these companies either closed or left Angola.

The national state insurance entity, the Angolan National Insurance and Reinsurance Company (ENSA), was created in 1978 and enjoyed over two decades of monopoly in the sector. As the company’s monopoly coincided with the boom in oil expansion in the country, ENSA’s primary activity became centered on insuring the oil sector, which until recently has continued to be the company’s focus. Also during this time the company cultivated numerous international partnerships in reinsurance, brokering, and staff training, enabling it to keep pace with trends in the industry.

In 1999, the Angolan government passed legislation opening up the insurance sector as part of its pledge to reform the country's crippled economy and in line with recommendations from the International Monetary Fund and the World Bank.

The reform of the insurance sector ended ENSA’s 21-year monopoly and paved the way for an eventual sell-off of a large stake in the state-owned company, in addition to stipulating that foreign investors would have to find local partners to move into the market. Furthermore, the Insurance Supervision Institute was created to oversee the sector’s development.

Since 2002, ENSA has undergone massive restructuring and has implemented an ambitious strategy for the expansion and diversification of its activities. The company has been divided into three parts: the holding company ENSA Group, the insurance company ENSA SARL, and the reinsurance company Angore, the first to be established in Angola.

BERNARDO MAKOMBE CEO of ENSA

Further branching off is planned through the creation of subsidiaries of these three main companies. ENSA CEO Bernardo Makombe relates, “The ENSA Group was established as a result of the study by a commission created to launch a new strategy for progress. From ENSA, new companies will be formed for the participation in and management of ENSA Group investments.”

The company’s new expansion plans are partly due to the oil boom in Angola, which has been reflected in the growth of ENSA. According to Mr. Makombe, starting capital investments for the new base companies will be US$50 million for ENSA Group, US$20 million for ENSA SARL, and an initial US$15 million for Angore, which will later be increased to US$50 million.

As well as the increased development of life and personal insurances, ENSA Group will diversify and expand into non-insurance sectors such as property development and medical clinics, primarily as a support for its insurance activities.

Mr. Makombe elaborates, “The strategy and objectives in light of the diversification of the insurance activity will give place to the creation of ten more companies, which will be subsidiaries and groups of small companies, for example, car workshops, medical clinics, etc. that will not be directly involved with the insurance activity but will support it.”

ENSA Group and the two main companies of ENSA, SARL and Angore, will continue to be the main focus and provide the company’s core business, but they will also manage the new subsidiaries. The role of the subsidiaries, as Mr. Makombe explains, is secondary support for ENSA Group’s expansion through the reduction of the costs associated with casualty. The company plans to set up medical clinics in order to support its health and personal insurance and has already acquired two Angolan hospitals for this purpose.

The Angolan National Insurance and Reinsurance Company (ENSA) offices in Luanda

Regarding car insurance, the company intends to open its own garages where cars insured with ENSA can be repaired. Mr. Makombe explains, “We intend to establish car workshops and the establishment of contracts with some concessionaries or car import companies, as a way of reducing costs with the casualties and making car insurance more profitable. These cars could also be incorporated into other companies that will also emerge from ENSA Group, like a rent-a-car company and a car assistance company.”

ENSA is actively seeking new foreign partnerships as it enters this new stage of its development according to Mr. Makombe, who says that the company is currently reviewing proposals from four assistance and risk management companies for medical assistance, managing clinics, and the supply of hospital equipment.

Mr. Makombe urges American investors to consider the new opportunities opening up in all sectors in Angola as the country has abundant resources and offers many possibilities. He also believes that Angolans can benefit from international partnerships and the exchange of technological know-how with the U.S.
“During wartime, Angola was divided into two sides. Now we have peace and the two sides are one, we are a nation, a new country, and one people. We are thinking now about new elections and a new government chosen by the people. We have the conditions for seeking new foreign investment, cooperation, new businesses, and experiences,” he states.

“We have a saying here that when God walked about the earth distributing resources, he arrived in Angola and the bag he had that was labeled ‘Wealth’ burst, so he said, ‘You keep it’. Today all the rich resources of Angola can benefit from American technology, while improving the lives of Angolan people.”