A maturing insurance market in Angola

Angola

Alexandre Carreira, CEO of NOSSA Seguros, talks to The Energy Year about the company’s significant growth in 2024, its progress in the renewables sector, why it is focusing on digitalisation and the importance of reinsurance for the Angola market. NOSSA Seguros is an insurance provider.

What have been the most significant developments for NOSSA Seguros over the past year?
2024 was incredibly positive for us, with the company growing by 44%. We further consolidated our position as the leading private insurance company in Angola, a title we first claimed three years ago.
In 2024, we successfully widened the gap between us and our competitors. Despite a challenging economic environment, we navigated effectively and delivered strong results.
Our sales growth (in gross written premiums) exceeded 40%, and we maintained a very controlled claims ratio of 31%. Our net profits have surpassed AOA 10 billion [USD 10.9 million], marking a 30% growth. Additionally, our return on equity was above 30%, outpacing the returns of the financial instruments available on the market, thereby delivering strong returns to shareholders. All that happened while the company preserved its financial strength, attested to, for example, by its very strong solvency margin and provision coverage ratio.

What key factors contributed to NOSSA Seguros’ continued success?
Our greatest asset is our people. Although we have fewer than 200 employees, our team is highly capable and dedicated. We have also built strong partnerships that enhance our operations, recognising that we are part of a larger ecosystem in the insurance sector. One of our key partners is Banco BAI, our largest shareholder, holding 72% of our capital.
However, while some may assume our success is mostly due to the bank’s support, that is not the case. Last year, we generated total revenues of AOA 78 billion [USD 85.4 million], with just AOA 10 billion [USD 10.9 million] coming from the bancassurance business. Moreover, it is our understanding that the market increasingly values the quality of our solutions and the experience that customers have with us.

What progress has NOSSA Seguros made in the renewables sector?
We are pursuing growth opportunities in energy, particularly in solar projects. While we haven’t finalised deals yet, we are very close. We are also exploring opportunities with companies in dam construction and maintenance. We have already secured business with energy firms through health insurance and aim to expand further into infrastructure and construction projects.
Recognising that we can’t have all expertise in-house, we have international partnerships to bring in specialised knowledge and services for these clients.

Reinsurance is a crucial aspect of the Angolan insurance market. How does NOSSA Seguros approach this?
Local insurers remain relatively small compared to Angola’s large-scale assets, making international reinsurance essential. We act as a bridge to the global market, having built long-standing relationships with international reinsurers.
Our reputation for transparency and financial discipline strengthens our credibility. We publish financial results annually, hold press conferences to engage with the media and maintain a Fitch rating. Importantly, since 2015, we have had clean external audit reports conducted by major international audit firms. These factors reassure global partners and reinforce our leadership in the Angolan market.

How is NOSSA Seguros leveraging digitalisation to enhance operations and customer experience?
Digitalisation is a key priority for us. We are making major investments in technology to improve operational efficiency, automate processes and enhance customer interaction. We are about to launch a corporate portal for client companies, allowing them to manage policies and interact with us digitally.
Many clients, such as one with 11,000 insured members, currently rely on Excel spreadsheets. Our new platform will simplify data management, making it easier to update records and track policy changes. We are in the final testing phase and plan to launch later this year.

Where does digital innovation fit into your long-term strategy?
It remains a core focus. Our strategic plan includes over 700 milestones, with more than 300 milestones dedicated to digitalisation. We are finalising a new CRM [customer relationship management] system and making substantial investments in data analytics, which will eventually enable AI-driven decision-making.
These improvements, while not always visible to customers, will optimise our processes and enhance service quality. In addition to the corporate portal, we are working on major upgrades to our app and website to provide a seamless customer experience.

What message would you like to share with Angola’s energy sector regarding the role of insurance?
Insurance penetration in Angola is just 0.6% of GDP, well below regional and African averages. There is immense room for growth, but cultural barriers persist. We have been vocal in raising awareness about the critical role of insurance for economic stability and development.
Comprehensive insurance packages, including health, life and personal accident coverage, can help companies attract and retain high-potential and top-talent employees. This, in turn, improves business performance. A robust insurance culture also creates a more favourable investment environment, which is crucial for both local and foreign investors.
We track progress through the insurance penetration rate, a key metric for industry growth. The sector must work collectively – beyond competition – to raise awareness and improve financial literacy. The energy sector can be a part of this initiative, adhering to insurance solutions and creating incentives for its suppliers to join in as well. Through collaboration, training, communication and contractual arrangements with our suppliers, we can strengthen Angola’s economy and create a more secure business landscape.

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