A total of 26 insurance companies were operating during Angola's colonial rule, providing the risk coverage a country needs to move ahead with development. But when Angola won its independence from Portugal, those companies folded and left a huge gap that threatened to bring the newly formed nation to a standstill.
In order to fill the void, the government stepped in to create the Angolan National Insurance and Reinsurance Company (ENSA) and staffed it with experienced experts in the field who were acutely sensitive to the realities of the nation.

ALEIXO AUGUSTO President and Director-General, ENSA Seguros de Angola

The country's civil war, which had a devastating effect on the national economy, likewise took its toll on ENSA, the only company during the conflict to provide insurance coverage.
Its strategy, according to ENSA president and director general Aleixo Augusto, was to build up relationships within the international insurance market in the areas of reinsurance, brokerage, expertise and technical consultancy, allowing the company to keep pace with the growth of the nation.

The Angolan insurance market has matured following legislation a couple of years ago that liberalized the sector and paved the way for the eventual sell-off of a large stake in state-owned ENSA.
But entry into the market is not a free-for-all. "There are legal requirements to form companies," says Mr. Augusto. "The Finance Ministry has created the Insurance Supervision Institute to oversee the activity. It would have been impossible to open up the market without monitoring the industry."
ENSA, which already has healthy commercial relations with many U.S. brokers, will likely attract more interest from overseas during its privatization process. It is also confident that it will hang on to its market share despite the newcomers.

"The privatization of ENSA has already been established by government strategy," Mr. Augusto explains. "The first phase will be a 49% sell-off followed later by further percentages."
The benefits of dropping its status as a public company are twofold. "It will inject fresh capital into the company and bring in the know-how allowing us to swiftly train new national managers" that will result in further growth for the company.
"A lot of development needs to be done here, and there lie the advantages for companies and potential investors. I know the results will be compensating," Mr. Augusto concludes.