First Mutual Holdings Limited (FMHL) is a diversified financial services group headquartered in Harare, Zimbabwe, with a legacy stretching back over a century. Since its listing on the Zimbabwe Stock Exchange in 2003, FMHL has grown into one of the most prominent players in Zimbabwe’s insurance and investment sectors. The company has strategically positioned itself as a one stop shop for risk management and wealth creation services, leveraging its extensive network of subsidiaries and associates to provide life, health, short term insurance, reinsurance, property investments, and microfinance solutions.
Beyond Zimbabwe, FMHL has expanded regionally, establishing operations in Botswana and Mozambique, which provide a hard currency revenue base and hedge against local market volatility. The group’s long term strategy emphasises resilience, diversification, and digital innovation, key attributes in navigating Zimbabwe’s unpredictable economic landscape.
FMHL’s business model revolves around two pillars: managing risk and creating wealth. Through its life and health businesses (First Mutual Life Assurance and First Mutual Health), the company provides medical aid, clinics, and life cover solutions. Its general insurance and reinsurance arms (Nicoz Diamond and First Mutual Reinsurance) cover short term risk exposures, while its regional operations (FMRE Botswana and Diamond Seguros Mozambique) add foreign currency revenue stability.
Complementing its insurance activities, FMHL operates an investments cluster through First Mutual Properties, First Mutual Microfinance, and First Mutual Wealth.
These entities contribute rental income, microfinance lending, and asset management services, while also acting as an inflation hedge via tangible assets such as real estate. This diversification has helped the group withstand currency shocks, hyperinflation, and shifting regulations over time.
Financial performance
For the first half of 2025, FMHL reported strong revenue growth but faced profitability pressures. Insurance contract revenue (ICR) rose 15% to US$84 million, supported by expanding US dollar -denominated policies, which now account for about 80% of group revenue.
On a statutory IFRS basis, ICR grew by 19% to US$87,75 million, while total shareholder revenue increased 16% to US$96 million.
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The Life and Health cluster was the main driver, contributing 51% of group ICR. Notably, First Mutual Health posted a 30% jump in revenue to US$36,34 million, consolidating its position as the group’s largest contributor.
However, rising claims pushed its claims ratio to 85,25%, softening profitability.
The General Insurance cluster was mixed. Nicoz Diamond’s ICR fell 7% to US$18,4 million due to delayed renewals and regulatory changes, though profits grew 39% to US$948 000 thanks to lower claims. Diamond Seguros grew revenue 9% but remained loss making, though losses narrowed due to investment gains.
The Reinsurance cluster contributed 24% of ICR, with FMRE Botswana growing 5% to US$12,3 million, albeit with weaker profitability due to flood claims. In Zimbabwe, FMRE’s ICR rose 21% but higher claims weighed on operating income.
From a profitability standpoint, the group reported a 41% decline in profit to US$4,95 million on management accounts. On an IFRS basis, profit swung deeper into the red at -US$6,17 million, largely due to negative fair value adjustments tied to the Zimbabwe Stock Exchange (ZSE).
Management, however, attributed these losses to temporary market fluctuations. On the balance sheet, total assets grew 4% to US$265,2 million.
Key growth areas included foreign equity investments (+17% to US$9,4 million), insurance contract assets (+66%), and cash balances (+10% to US$34,7 million). Investment property remained steady at US$135,3 million, underlining FMHL’s continued bias toward real assets as a hedge.
FY25 outlook
Looking ahead to FY25, FMHL is expected to consolidate its recovery trajectory, although macroeconomic risks remain high. Based on HY25 momentum and historic seasonality, full year ICR could surpass US$170 million–175 million, driven by continued growth in the health and life clusters, and stabilisation in reinsurance.
Profitability is likely to improve modestly compared to FY24’s steep losses, provided equity market volatility subsides. I forecast FY25 profit after tax in the range of US$8 million –US$10 million, assuming normalised investment returns in H2. Key upside will come from lower claims ratios in health and general insurance, plus steady property rental growth.
On the balance sheet, total assets should expand moderately to US$270 million–US$280 million by year end, underpinned by property valuations, increased foreign equity exposure, and stronger cash balances. The group’s cautious strategy of holding real assets and diversifying into regional operations remains central to value preservation.
Conclusion
FMHL’s HY25 results highlight a company in transition, revenue growth is solid, but profitability is still being tested by investment market volatility and high claims costs.
Compared to FY24’s steep loss, the first half shows encouraging signs of operational stability, particularly in US dollar -denominated business lines.
As FY25 progresses, FMHL’s diversified model, regional exposure, and inflation - hedging asset base should allow it to deliver a stronger performance than the prior year.
While macroeconomic and regulatory uncertainties remain, FMHL’s fundamentals point to gradual improvement in revenue, profitability, and balance sheet strength.
Taimo is an investment analyst with a talent for writing about equities and addressing topical issues in local capital markets. He holds a First Class Degree in Finance and Banking from the University of Zimbabwe. He is an active member of the Investment Professionals of Zimbabwe community, pursuing the Chartered Financial Analyst charter designation.
