Insurance in support of Angola’s key economic sectors

Angola

Leandro Sousa, chairman of STA Seguros, talks to The Energy Year about the company’s evolution, its competitive edge in the Angolan insurance market, its role in supporting the country’s energy sector and the implications of the 2022 insurance law and partial privatisation of the national insurance regulator ARSEG. STA Seguros is an Angolan insurance company.

How has STA Seguros evolved since 2023 in its service offering to the energy sector?
Our journey at STA Seguros over the past few years has been one of strategic evolution firmly rooted in enhancing our capabilities to serve the Angolan market with the highest standards. We recognised early on the critical need for agility and technological advancement.
Consequently, we’ve significantly invested in digitising our operations, streamlining everything from policy issuance to claims processing. This isn’t just about efficiency; it’s about providing greater transparency and responsiveness to our business clients, who operate in dynamic and often demanding environments.
Our early adoption of digital communication channels, for instance, has become a benchmark in the local market, ensuring our clients have immediate access to the information they need.
Alongside digitalisation, we’ve focused heavily on refining our risk assessment methods, especially for complex industries such as oil and gas. We’ve invested in team training and data-driven methodologies to better understand client-specific risks.
Reinsurance is also a cornerstone of our strategy. We maintain strong partnerships with reputable global markets, particularly in London, which allows us to manage large and complex risks while safeguarding our capital and ensuring claims can be honoured reliably.
Our benchmark is always international standards. We apply them rigorously across underwriting, claims and governance because we believe this is essential for building a robust insurance market in Angola.

What specific services do you offer oil and gas companies?
We are among the select group of Angolan insurers authorised to underwrite upstream oil and gas operations. It’s a restricted segment, and we’re proud to be part of this co-insurance pool.
In the oil and gas sector, our involvement includes providing coverage for various stages of the value chain, from upstream exploration and production activities, including support for offshore operations and facilities, to downstream assets such as depots and transportation infrastructure.
While specific project details are confidential, our work with important entities underscores our role in supporting critical infrastructure within the sector. We have also positioned ourselves to support developments in oil refining as the country seeks to increase its domestic processing capacity.
Our client portfolio includes significant names, including both state-owned and private investors. Some of our partners are also local correspondents to large multinational brokers. We empower and help those partners service the multinational accounts and thrive in the global scene. These relationships are a testament to our capacity to understand and meet the complex insurance needs of large-scale operations.
Our competitive edge lies in a few key areas. Firstly, our digital platforms and streamlined processes provide a level of accessibility and efficiency that sets us apart. In today’s fast-paced business environment, prompt and transparent service is not a luxury but a necessity, and we deliver on that.
Second is our specialised expertise, particularly in sectors vital to the Angolan economy, such as energy and industry. The investment in our training programmes is crucial here, as this ensures our team and partners are equipped with the highest level of technical knowledge. Ultimately, every policy originates from rigorous analysis and attentive listening. We apply our technical expertise to provide tailored solutions.
Finally, and perhaps most importantly, our competitive edge is rooted in our unwavering commitment to client relationships and claims excellence. Our ever more proactive approach to claims handling, aimed at fair and swift resolution, builds the trust and confidence that are paramount to long-term partnerships.

Has the 2022 insurance law improved the market, or are further regulatory changes needed?
The 2022 legal overhaul was a pivotal moment. It introduced a more sophisticated regulatory framework that empowered both the market and the regulator, ARSEG. The new structure enforces stricter oversight on key areas such as company incorporation and solvency requirements. As a result, Angola now has a more capable system for handling future sectoral challenges.

What effect could ENSA’s partial privatisation have on the market and your operations?
It certainly brings more transparency and credibility to have ENSA listed on the stock exchange. This transparency benefits the entire industry and could increase financial capacity by attracting more investment.
However, ENSA still holds the leadership in co-insurance panels. While the majority state ownership remains, we’re curious whether this shift will open the door to a different leadership model. Many insurers have long advocated for such a change to ensure greater inclusivity. We will keep a close eye on this and maintain privileged communication channels open.

Do you believe other insurers will have more opportunities to lead co-insurance pools?
The privatisation wasn’t full-scale, so we don’t expect a radical change in leadership immediately. That said, we do foresee increasing market pressure for a different system, which would create space for more players to take on leadership roles.
What we do see, however, is space to build the industry’s ability to retain risk locally. Currently, upstream risks are mostly covered through reinsurance, which limits local content. Expanding local retention would not only build knowledge but also empower local insurers, enhancing service quality for operators.

What structural challenges are Angolan insurers facing, and how is STA Seguros responding?
We view positive growth estimates for the Angolan insurance sector with optimism. They reflect a market with significant potential. At STA Seguros, we will not just experience this expansion; we will be actively contributing to it.
Our past consistent growth in key sectors often outpaces the market average in some areas, which indicates that our strategy resonates with clients.
However, we are also realistic about the challenges that persist within the Angolan economic environment. Factors such as inflationary pressures and currency fluctuations require careful navigation. We address these by maintaining prudent financial management, diversifying our portfolio and working closely with our clients to structure policies that offer appropriate protection in this context.
The new board of directors reflects our renewed focus. Our CFO, for example, comes from the oil and gas sector, bringing a results-driven, multi-sectoral approach. We tailor client policies carefully to the local economic context and see rising demand in areas where we have invested our expertise, such as corporate and industrial insurance, particularly in infrastructure and energy.

Given the economic environment and sector growth, what are your medium-term goals?
Our ambition is to support Angola’s energy evolution across oil, gas and renewables. We are also a key player in Angola’s energy transition. As solar and hydropower gain momentum, we offer coverage for construction and operational risks for these projects. Supporting energy diversification is a priority area of growth for us.
In the next five years, we aim for consistent double-digit annual growth. We’re committed to our boutique approach, ensuring no loyal client is ever left behind for the sake of growth. Our philosophy is simple: We grow together. We also want to strengthen ties with global brokers by supporting their multinational clients locally.

How will you support this growth strategy moving forwards?
Over the next five years, our objectives for STA Seguros are ambitious yet firmly grounded in our track record and market potential. Our primary target is to structure ourselves to set on an even stronger growth trajectory. We aim for consistent double-digit growth.
To achieve this, we have several key strategic pillars. We will continue to invest heavily in our digital transformation to enhance efficiency, improve the customer experience and expand our reach. Strengthening our distribution channels and expanding our presence across key economic hubs in Angola are also high priorities.
To conclude, our presence in the Angolan market, and particularly our role in supporting critical sectors such as energy, is guided by the core principles of the STA Seguros brand. We are not merely providers of insurance policies; we are partners dedicated to offering confidence.
In a world that is constantly evolving, we strive to be a constant presence for our clients, acting with responsibility and proximity. Our focus is on delivering clarity, providing solutions and, fundamentally, keeping the commitments we make.
We are here to protect what is essential, enabling our clients to build and project their future with tranquillity and ambition. We are small enough to care for each client, yet large enough to protect many. This is the promise of STA Seguros, today, tomorrow and for the generations to come.

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