First Mutual Holdings Limited has reported a sharp rebound in financial performance for the year ended 31 December 2025, posting a profit after tax of $14.3 million compared with a $26.2 million loss in 2024. The results reflect improved investment returns, steady premium growth, and disciplined cost control across the diversified financial services group, despite a tight monetary environment and persistent fiscal pressures in Zimbabwe.
In his message to shareholders, Chairman Amos Manzai noted that 2025 was defined by the Government of Zimbabwe’s inability to meet revenue and expenditure targets. The Reserve Bank of Zimbabwe maintained a tight monetary policy stance to pursue macroeconomic stability, holding the Bank Policy Rate for the Zimbabwe Gold currency at 35%, well above inflation and official exchange rate movements. Statutory reserve requirements remained elevated at 15% for savings and time deposits and 30% for call and demand deposits, for both ZWG and USD. Liquidity was further constrained as the RBZ continued to mop up excess funds through Non-Negotiable Certificates of Deposit.
Against this backdrop, the United States Dollar continued to dominate transactional activity. Group Chief Executive Officer Douglas Hoto reported that USD-denominated income accounted for approximately 85% of total revenue for the year, up from 75% in 2024, underscoring customer preference for USD-denominated products to preserve value.
The Group’s financial statements, prepared under IFRS and presented in United States Dollars, show insurance contract revenue rose 10% to $176.8 million, supported by growth across key product lines and sustained customer retention. The insurance service result decreased marginally to $27.6 million from $28 million in the prior year, due to adjustments for pipeline premiums at the reinsurance cluster.
Rental income increased 3% to $8.5 million, while net interest and fee income from microfinance was $3.96 million. The Group recorded a significant turnaround in investment performance, with net fair value gains on investment property of $3.92 million, compared with losses of $50.5 million in 2024 that had stemmed largely from functional currency transition adjustments under IAS 21. Net investment return improved to $7.2 million from $1.7 million, and asset management fees were $1.13 million.
Total assets grew to $280.8 million from $256.5 million, while equity attributable to equity holders of the parent rose to $63.8 million. Basic and headline earnings per share recovered to 1.96 US cents, from a loss of 3.59 US cents in 2024. The market price per share was ZWG 285.00 cents at 31 December 2025.Cluster Review:
First Mutual Health increased insurance contract revenue 22% to $73.5 million, driven by higher uptake of USD-denominated policies. Profit was $5.4 million, down 6% due to lower investment income on ZSE-listed equities. First Mutual Life grew ICR 22% to $15.3 million and profit surged 313% to $3.5 million, underpinned by group risk schemes, retail funeral products, cost management, and positive investment returns.
NicozDiamond Insurance posted ICR of $40.4 million, down 3% as clients shifted to shorter-term policies under “cash-before-cover” regulations. Profit was $2.1 million, down 12%. Diamond Seguros in Mozambique grew ICR 3% to $4.9 million but recorded a $0.2 million loss due to adverse reinsurance performance.
First Mutual Reinsurance Zimbabwe increased ICR 10% to $15.9 million and profit 158% to $0.3 million, supported by treaty growth and investment gains. FMRE Property and Casualty Botswana grew ICR 7% to $24.3 million and profit 49% to $3.2 million.
First Mutual Properties generated $8.1 million in rental income, up 4%, but profit fell 29% to $4.2 million on reduced fair value gains. First Mutual Microfinance saw net interest and fee income decline 16% to $3.9 million and posted a $0.3 million loss amid lower market rates and SME expansion costs. First Mutual Wealth Management raised investment fees 5% to $1.5 million, though profit fell 30% due to lower fee rates and capacity investments. Funds under management grew to $170.8 million from $151 million.
The Group is embedding sustainability into risk management and decision-making, aligning reporting with IFRS Sustainability Standards S1 and S2 and working to comply with the PAAB roadmap for sustainability reporting in Zimbabwe. Chairman Manzai welcomed the Government’s policy to review regulatory frameworks to reduce red tape and compliance costs, saying the measures are essential to incentivize informal operators to enter the formal economy and broaden the tax base.
Through the First Mutual Foundation, the Group supported 105 students with tuition, levies, stationery, and exam fees in 2025. The tertiary scholarship programme expanded from 6 to 15 scholarships across six state-owned universities, and two Actuarial Science students graduated during the year.
First Mutual Life Assurance Company continues to work with the Insurance and Pensions Commission to finalize issues from the FML forensic audit. The financial statements incorporate adjustments from expert findings, which remain subject to ongoing IPEC engagements.
The Board reported with deep regret the passing of Mr Samuel Rushwaya, recognizing his long and distinguished contribution to the Group. It welcomed Mr Joel Makombe and Dr Passmore Matupire, appointed in July 2025.
The Board declared a final dividend of $1.4 million for the period ended 31 December 2025, bringing the total dividend to $2.05 million. The final dividend will be paid as $1.12 million, or USD 0.1531 cents per share, and $0.28 million, or ZWG 0.9679 cents per share. Details will follow in a separate announcement.
Looking ahead, management said stable macroeconomic conditions support revenue growth and allow diversification into real assets to manage regional and local risks. The Group plans significant technology investment to develop innovative solutions and respond to market shifts.“Understanding and responding to our customers is at the heart of everything we do,” said GCEO Douglas Hoto. “This customer focus, combined with a strong financial foundation and growing regional presence, positions the Group for sustainable growth.”Chairman Manzai concluded: “We remain focused on value creation, fostering innovation and upholding the highest standards of integrity as we build a resilient and purposeful Group.”
