First Mutual Holdings Limited recorded broad-based operational growth across its business clusters in 2025, with rising demand for United States dollar-denominated products emerging as a key driver behind the Group’s return to profitability.

USD-denominated policies accounted for 85 percent of total revenue during the year, up from 75 percent in 2024, reflecting shifting customer preferences toward currency stability in an evolving economic environment.

The strong operational momentum supported a significant financial turnaround, with the Group posting profit after tax of US$14,3 million compared to a loss of US$26,2 million recorded in the previous year.

 Insurance contract revenue grew 10 percent to US$176,8 million, while total assets expanded to US$280,8 million from US$256,5 million.

Board chairman Amos Manzai said the performance demonstrated the strength of the Group’s diversified structure.

“I am pleased to report that the Group delivered a strong financial performance for the year, marking a significant turnaround from the prior year and reflecting the resilience of our diversified business model and the disciplined execution of our strategic priorities,” Manzai said.

Life and Health cluster leads growth

Operational performance was strongest within the Life and Health cluster, where First Mutual Health recorded a 22 percent increase in revenue to US$73,5 million, driven by growing uptake of medical cover and enhanced service offerings.

The reinsurance business also contributed positively to earnings growth. The Botswana-based FMRE Property and Casualty unit achieved a 49 percent increase in profit after tax to US$3,2 million, highlighting expanding regional diversification.

In the Investments cluster, First Mutual Wealth Management saw funds under management rise from US$151 million to US$170,8 million, reflecting sustained investor confidence and stronger asset accumulation during the year.

Group chief executive officer Douglas Hoto said customer needs and innovation remained central to operational strategy.

“Understanding and responding to our customers is at the heart of everything we do. This customer focus, combined with a strong financial foundation and growing regional presence, positions the Group for sustainable growth,” Hoto said.

Stable economy, persistent structural risks

The Group noted that Zimbabwe’s operating environment showed relative stability in 2025, supported by tight monetary policy measures implemented by the Reserve Bank of Zimbabwe.

Despite improved stability, structural challenges remain, particularly the continued expansion of the informal sector, now estimated to account for 76 percent of economic activity. The Group warned that rising informality weakens transaction visibility and tax collection while limiting growth prospects for formal businesses.

Regulatory frameworks such as the cash-before-cover requirement in the general insurance sector continue to influence customer purchasing behaviour, with many clients opting for shorter-duration insurance policies. At the same time, global inflationary pressures linked to geopolitical tensions have pushed up costs for fuel and energy, increasing operational risks.

Dividend and forward strategy

Reflecting the improved financial performance, the Board declared a final dividend of US$1,4 million, bringing total dividends for the year to US$2,05 million.

The dividend will be paid in a split structure comprising US$1,12 million in United States dollars and US$0,28 million in Zimbabwe Gold.

First Mutual Holdings said it will continue investing in technology and innovation to enhance customer experience, strengthen service delivery and maintain competitiveness across regional markets.

Management indicated that sustained focus on digital transformation, customer-centric solutions and regional expansion will remain central to unlocking long-term shareholder value while navigating ongoing economic uncertainties.