FIRST Mutual Holdings Limited (FMHL) is targeting rapid growth for its newly-launched health insurance unit in Botswana, seeking to replicate the twenty-fold expansion it achieved in the country’s reinsurance market over the past decade.
The financial services group, which secured its Botswana operating licence on May 5, is capitalising on rising demand for cross-border health insurance under the Southern African Development Community Protocol on Financial Services — despite challenges such as foreign currency repatriation constraints in Zimbabwe.
FMHL’s regional operations span Botswana, Mozambique, and Malawi, with insurance risk exposure totalling US$160,05 million as of December 2024. Of this, US$138,18 million was domestic, while US$21,86 million came from its regional business.
The group has invested over US$450 000 in the Botswana venture, with key personnel already in place.
FMHL chief executive officer Douglas Hoto told businessdigest the company is optimistic about the unit’s prospects, leveraging its strong regional expertise and the growing Sadc health insurance market.
“We have obtained a licence to do health insurance in Botswana, and we have actually found offices. We have registered, and we have appointed Chris Hwingwiri from here as the general manager and a Botswana person is the principal officer as required by the law to start the operation,” Hoto said.
“We have spent about US$450 000 on that project. In terms of growth, if we go by what we experienced in the reinsurance office, we think there is a big market.
“If I just use approximations from the reinsurance, when we entered the market, we were doing about P20 million (US$1,43 million) in premiums. Now, we are doing close to P400 million (US$28,65 million). That is about 20 times in about 10 or 12 years. That is the sort of growth we expect.”
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He said business development operations for the Botswana unit were expected to be launched this second half.
Businessdigest understands First Mutual Reinsurance plans to venture into East Africa, after consolidating in Botswana.
“We have a standard strategy. That is why I talked about Malawi, Mozambique, and we are exploring further opportunities in the rest of the Sadc market, in particular Tanzania and Rwanda. Our front foot is the registrar’s office,” Hoto said.
“Remember, Botswana is the reinsurance office.”
Hoto added that the group’s direct insurance company, Diamond Seguros, had expanded into health insurance in Mozambique.
FMHL is also working on recapitalising Malawi based United General Insurance Company Limited (UGI) to enhance operations.
According to its 2024 annual report released in June, FMHL held a 23,8% shareholding in UGI, one of its associate companies alongside Diamond Seguros in Mozambique, in which it has a 71,4% stake.
The company’s focus on growing assets under management enables it to leverage regional expansion and innovative financial products as part of its growth strategy.
