First Mutual Holdings Limited (FMHL) has reported a profit after tax of US$6.2 million for the half year ended 30 June 2025, reversing a US$32.7 million loss in the same period last year.
The turnaround was driven by strong uptake of US dollar-denominated insurance policies, improved property valuations and relative stability in Zimbabwe’s economy. Group insurance contract revenue rose 19% to US$87.7 million, reflecting growing preference for USD-based products.
FMHL also posted fair value gains of US$1 million on investment property, compared with a US$50 million loss in 2024. Net investment returns rose nearly 200% to US$0.5 million, while rental income held steady at US$4.3 million.
The recovery comes amid tight monetary policy, with the Reserve Bank of Zimbabwe maintaining its policy rate at 35% and high statutory reserve requirements to support the Zimbabwe Gold (ZWG) currency. The measures have provided some stability, though the informal sector continues to dominate, accounting for 76% of output.
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Performance across business units was mixed. First Mutual Health grew revenue 30% to US$36.3 million but posted a US$0.7 million loss due to high claims and weak equity markets. Group Life Assurance revenue increased 26% to US$7.5 million, while profit slipped 11% to US$0.2 million.
Nicoz Diamond Insurance reported a 7% decline in revenue to US$18.4 million but achieved a 30% rise in profit to US$0.9 million, supported by favorable claims ratios and cost controls. First Mutual Properties lifted profit 11% to US$2 million, while Wealth Management expanded funds under management from US$114 million to US$150.3 million.
