CHAIRMAN’S STATEMENT
ECONOMIC OVERVIEW
The Reserve Bank of Zimbabwe (RBZ) maintained its tight monetary policy stance during 2025 in pursuit of macroeconomic stability. The Bank Policy Rate for the Zimbabwe Gold (ZWG) was held at 35%, significantly above inflation and exchange rate movements on the official and alternative markets. Statutory reserve requirements were maintained at elevated levels, namely 15% for savings and time deposits and 30% for call and demand deposits, for both ZWG and USD currencies. Additionally, liquidity remained tight as the RBZ continued to mop up excess liquidity through the issuance of Non-Negotiable Certificates of Deposit.
These measures collectively supported a relatively stable macroeconomic environment during 2025. The resulting stability brought greater predictability and improved the ability of businesses to plan and distribute resources more effectively.
Despite these positives, structural challenges persisted. According to a report issued by the Zimbabwe National Statistics Agency, the informal sector accounted for 76% of economic activity. While the financial services sector remains one of the most formalised segments of the economy. The rapid expansion of informal sector is a contributor to the failure to meet revenue and expenditure targets by the fiscus in 2025, posing risks through reduced transaction visibility and weakened tax collection efficiency. The enhanced role of the informal sector is believed to be a major contributor to the Government of Zimbabwe’s inability to meet its revenue and expenditure targets in 2025.
We are encouraged by the recently announced Government policy to review and update regulatory frameworks with a view to reducing bureaucratic red tape and lowering compliance costs, thereby enhancing the ease of doing business. These measures are essential to incentivise informal operators to integrate into the formal economy, broaden the tax base and improve overall economic efficiency.
Stable macroeconomic conditions support revenue growth while mitigating investment portfolio fluctuations. The current environment also allows the Group to explore new avenues, including diversification into real assets to manage regional and local risks over the medium to long term.
First Mutual remains dedicated to proactive policy engagement and community initiatives that foster sustainable economic development in Zimbabwe.
FIRST MUTUAL LIFE SETTLEMENT AGREEMENT
First Mutual Life Assurance Company (Private) Limited (FML) continues to work with the Insurance and Pensions Commission (IPEC) to bring finality to issues arising from the FML forensic audit. These financial statements incorporate the adjustments resulting from the findings of the experts even though they are still subject to ongoing engagements with IPEC.
FINANCIAL HIGHLIGHTS
FINANCIAL PERFORMANCE
I am pleased to report that the Group delivered a strong financial performance for the year ended 31 December 2025, 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. The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and are presented in United States Dollars, the functional currency of the Group.
Insurance contract revenue increased by 10% to $176.8 million, supported by growth across key product lines and sustained customer retention. The insurance service result decreased to $27.6 million from $28 million in the prior year as a result of adjustments for pipeline premiums at the reinsurance cluster. The Group continued on its path as reflected by prudent underwriting practices, effective claims management and ongoing operational efficiencies. While reinsurance costs remained significant, they continued to play an important role in protecting the Group’s balance sheet and maintaining risk exposure within acceptable limits.
Our diversified income streams continued to provide stability and growth. Rental income remained steady, increasing by 3% from 2024, while our health services and asset management units delivered solid contributions. These segments remain integral to our long-term strategy of building a balanced and resilient financial services group.
Investment performance strengthened considerably during the year. The Group recorded positive fair value gains on investment properties of $3.9 million, compared to substantial losses in the prior period which arose largely from functional currency transition adjustments required under International Accounting Standard 21, The Effects of Changes in Foreign Exchange Rates. This was complemented by improved positive returns from equities.
The Group maintained a disciplined approach to cost management. Administrative expenses were carefully controlled, while targeted strategic investments were made to support digital transformation. As a result, the Group recorded a profit after tax of $14.3 million for the year, compared to a loss of $26.2 million in 2024.
SUSTAINABILITY
Sustainability is fully integrated into ‘the fabric of our day to day operational risk management and decision-making that ensures resilience, sustainability and ultimately preserve stakeholder value.
The Group enhanced its reporting by aligning with IFRS Sustainability Standards (S1 and S2) linking sustainability to financial performance while reflecting broader economic, environmental, and social impacts. This integrated approach ensures transparency, credibility, and a long-term focus on building a resilient, purpose-driven organisation that delivers sustainable value for all stakeholders. The Group is working to comply with the Public Accountants and Auditors Board (PAAB) roadmap for adoption of sustainability reporting in Zimbabwe.
FIRST MUTUAL IN THE COMMUNITY
During the year under review, First Mutual Holdings Limited continued to advance its Corporate Social Responsibility agenda through the First Mutual Foundation, with a strong focus on educational support for vulnerable learners. A total of 105 students received assistance covering tuition, levies, stationery, and examination fees, supporting progression from primary to tertiary education.
The scholarship programme expanded significantly at tertiary level, growing from 6 to 15 scholarships across six state-owned universities, including longstanding partners such as the University of Zimbabwe, Chinhoyi University of Technology, and Africa University. The year also saw the graduation of two Actuarial Science students, reflecting the programme’s focus on investing in the insurance industry at a tertiary level.
Beyond education, the Group continued to support the health sector through free wellness initiatives, screenings, and targeted community sponsorships, reinforcing its commitment to sustainable social impact.
OUTLOOK
The Group remains positive about future economic growth in the country and region and is investing significantly in its businesses to extract value for its stakeholders. Through technology we will seek to develop growth opportunities that provide innovative solutions that will be key to responding to market shifts and deliver lasting stakeholder value.
DIRECTORATE
It is with deep regret that the Board records the passing of Mr Samuel Rushwaya. The Group is deeply saddened by this loss. Mr Rushwaya had a long and distinguished association with the First Mutual Holdings Limited Group, during which he made a significant and valued contribution to the development and success of the organisation. The Board extends its sincere condolences to his family, friends and colleagues during this difficult time.
The Board also welcomes Mr. Joel Makombe and Dr. Passmore Matupire, who were appointed in July 2025. The Board looks forward to their contribution and insight as they join the organisation.
DIVIDEND
The Board resolved that a final dividend of $1.4 million be declared from the reserves of the Company for the period ended 31 December 2025 bringing the total dividend for the year to $2.05 million. The dividend will be payable in the split of $1.12 million (USD0.1531 cents per share) in United States Dollars and the balance of $0.28 million (ZWG0.9679 cents per share) in local currency. Further details on the payment of the dividend will be communicated in a separate dividend announcement.
APPRECIATION
We are grateful to our customers, employees, shareholders and the community at large for your support and trust. Your commitment and collaboration inspires us to deliver with purpose and pursue bold long term goals. We remain focused on value creation, fostering innovation and upholding the highest standards of integrity as we build a resilient and purposeful Group.
Amos Manzai
Chairman
27 March 2026
Related Downloads
FMHL – Abridged Audited Financial Statements for the year ended 31 December 2025.pdf
