- First Mutual Holdings swung to a US$6.2 million profit in H1 2025, recovering from a US$32.7 million loss in the same period last year
- Insurance contract revenue rose 19% to US$87.7 million, as clients increasingly favoured USD-denominated products to preserve value amid currency volatility
- While First Mutual Health and Group Life Assurance faced profitability pressures, NicozDiamond Insurance, Properties, and Wealth Management delivered stronger bottom-line growth, supporting overall Group resilience
Harare - First Mutual Holdings Limited (FMHL) has staged strong turnaround, posting a profit after tax of US$6.2 million for the half year ended 30 June 2025, reversing a US$32.7 million loss recorded during the same period in 2024.
The recovery was underpinned by strong uptake of USD-denominated insurance policies, improved investment property valuations, and stabilisation in the Zimbabwean economy.
‘’ Clients continued to favour USD-denominated products, seeking stability and certainty of cover in the event of a claim. Insurance contract revenue for the period grew by 19%, from $73.5 million in 2024 to $87.7 million in 2025,’’Chairperson Amos Manzai said.
Group insurance contract revenue grew by 19% to US$87.7 million, as clients increasingly opted for USD-based products to safeguard value against currency volatility.
The Group also recorded fair value gains of US$1 million on investment property, a significant reversal from the US$50 million loss last year, while net investment returns increased nearly 200% to half a million dollars.
Rental income remained stable at US$4.3 million, reflecting effective lease management and upward rental reviews.
The rebound comes against a backdrop of tighter monetary policy by the Reserve Bank of Zimbabwe, which kept the policy rate at 35% and maintained elevated statutory reserve requirements to stabilise the Zimbabwe Gold (ZWG) currency.
This relative stability, allowed businesses to plan more effectively, even as the informal sector continued to dominate economic activity, accounting for 76% of output.
Despite growth in topline performance, some business clusters reported mixed outcomes. First Mutual Health grew revenue by 30% to US$36.3 million but recorded a loss of US$0.7 million due to high claims and negative equity market performance.
Group Life Assurance revenue rose 26% to US$7.5 million, though profit slipped 11% to US$0.2 million.
NicozDiamond Insurance saw revenue decline 7% to US$18.4 million but delivered a 30% increase in profit to US$0.9 million, attributed to favourable claims ratios and cost containment.
Meanwhile, First Mutual Properties posted an 11% rise in profit to US$2 million, while Wealth Management grew its Funds Under Management from US$114 million to US$150.3 million.
Beyond financials, FMHL deepened its sustainability commitments, advancing compliance with international reporting standards IFRS S1 and S2 to strengthen climate and ESG disclosures.
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