CHAIRMAN’S STATEMENT
ECONOMIC OVERVIEW
The Reserve Bank of Zimbabwe (RBZ) continued to maintain a generally tight monetary policy stance in pursuit of macroeconomic stability. The Bank Policy Rate for the Zimbabwe Gold (ZWG) was maintained at 35% at the beginning of the year before being reduced to 30% at the Monetary Policy Committee meeting held on 15 June 2026. Notwithstanding this adjustment, the policy rate remained at a significant premium to prevailing inflation rates. Statutory reserve requirements were maintained at 15% for savings and time deposits and 30% for call and demand deposits. The RBZ continued to employ prudential liquidity management measures to ensure that liquidity conditions remained consistent with the objective of preserving ZWG stability and supporting sustainable economic growth.
These measures collectively supported a relatively stable macroeconomic environment during the first half of 2026, which was favourable for the financial services industry. Inflation remained in single-digit territory averaging 4.2%, whilst exchange rate stability was largely sustained, enhancing business confidence and improving the ability of corporates and households to plan and allocate resources more effectively.
Despite these positive developments, structural challenges persisted with significant economic output in the cash economy or informal sector. The prevalence of informality remains a significant structural challenge for the economy, limiting tax revenue mobilisation, reducing transparency in economic activity and constraining financial sector intermediation. While the financial services sector remains one of the most formalised segments of the economy, the continued dominance of informal enterprises poses risks to formal businesses through reduced revenue visibility and an uneven regulatory environment. The challenge of broadening the tax base remains a key policy priority, prompting Government to introduce a National Formalisation Strategy in 2026 aimed at encouraging the transition of informal businesses into the formal economy.
We are encouraged by the Government of Zimbabwe’s continued commitment to improving the business operating environment through regulatory reforms aimed at reducing bureaucratic red tape and lowering compliance costs. Such measures are essential in incentivising informal operators to integrate into the formal economy, broadening the tax base, improving access to financial services and enhancing overall economic efficiency.
For FMHL, sustained macroeconomic stability will enhance prospects for consistent revenue growth and reduce investment portfolio volatility. The current environment enables the Group to pursue additional opportunities, including further diversification into real assets to manage both local and regional risk over the medium to long term. The Group remains committed to constructive policy advocacy and community initiatives that contribute meaningfully to the growth and performance of the economy.
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
Statement of Comprehensive Income – Highlights
FINANCIAL PERFORMANCE
On behalf of the Board of Directors, I am pleased to present the Group’s unaudited financial results for the half-year ended 30 June 2026. These results reflect overall positive performance, underpinned by the resilience of our core operations and major contribution from our investment and property portfolios.
Our core insurance business continues to demonstrate steady growth, with insurance contract revenue increasing by 6% to $92.8 million. This reflects our ongoing commitment to customer retention, product innovation, and disciplined underwriting. While the insurance service result declined by 7% to $13.1 million, this is well within our expectations and primarily attributable to a higher claims experience and a rise in insurance contract acquisition costs. We remain focused on enhancing underwriting efficiency and expect this metric to improve in the second half of the year. Rental income increased by 1% to $4.4 million, reflecting consistent occupancy levels across our property portfolio.
The standout drivers of our half-year performance were the large gains from our investment and property portfolios. Net investment return surged by 568% to $13.7 million, reflecting favourable movements in the equities markets and higher yields on fixed-income securities. Fair value gains on investment property increased by 1,257% to $13.8 million resulting in a total investment property value of $150 million, driven by significant revaluations gains in the portfolio. These gains underscore the strategic value of our diversified asset base. However, it is important to note that these gains are market-driven and may not be replicated at the same magnitude in future periods.
SUSTAINABILITY
Sustainability continues to be a core element of both the Group’s day-today operations and its broader strategic direction, with Environmental, Social, and Governance (ESG) principles being woven into value-creation activities, regulatory compliance efforts, and corporate citizenship programmes. Building on the groundwork initiated in 2024 aimed at achieving full adherence to the IFRS Sustainability Disclosure Standards (S1 and S2), the Group persisted in harmonising its sustainability practices and reporting with relevant regulatory mandates as well as with developing sustainability reporting frameworks. Following the release of the PAAB sustainability reporting roadmap in April 2026, the Group achieved substantial headway towards meeting all applicable ESG disclosure obligations. These advancements further enhance both the robustness and uniformity of the Group’s sustainability reporting, bolster stakeholder trust in its financial and extra-financial performance and reaffirm its dedication to making sustainability an integral part of its operations, governance structures, and strategic planning.
FIRST MUTUAL IN THE COMMUNITY
Since its establishment in 2014, the First Mutual Foundation Scholarship Fund has played an essential role in supporting disadvantaged learners across all levels of education. During the first half of 2026, the programme has continued to provide comprehensive assistance, covering tuition, learning materials, accommodation, and living expenses—thereby ensuring that beneficiaries receive well-rounded support. The initiative’s impact remains considerable, with recipients showing marked improvements in attendance, retention, and academic progression, and many are distinguishing themselves in high-demand fields such as Actuarial Science, Data Science, and Computer Engineering. Throughout the first six months of the year, the programme has maintained its positive momentum, with ongoing support contributing to higher academic achievement and improved student retention. This continued success underscores the initiative’s critical role in empowering vulnerable students and fostering both their educational and professional development. In addition to its educational efforts, First Mutual Holdings Limited, through its subsidiary First Mutual Health, partnered with the Global Aid Mission to support Zimbabwe’s Skin Cancer Prevention and Clinical Capacity Programme for people living with albinism. This comprehensive training initiative is specifically designed to address skin cancer prevention, early detection, and treatment tailored to the unique needs of individuals with albinism in Zimbabwe. The programme reflects the Group’s broader commitment to advancing health and well-being within the communities it serves.
DIVIDEND
The Board resolved that an interim dividend of $1 million be declared from the profits of the Company for the period ended 30 June 2026. The dividend will be payable in the split of $0.80 million (USD0.109 cents per share) in United States Dollars and the balance of $0.20 million (ZWG0.737 cents per share) in local currency. Further details on the payment of the dividend will be communicated in a separate dividend announcement.
APPRECIATION
On behalf of the Board, I wish to express our sincere appreciation to our clients and stakeholders for the continued trust and support they have extended to the Group. I also extend my gratitude to management and all employees for their dedication, hard work, and resilience in navigating an ever-evolving operating environment. My thanks further go to my fellow Board members for their invaluable guidance and strategic oversight.
These collective contributions have laid a solid foundation for sustainable growth and long-term resilience, and they remain central to the Group’s continued success.
Amos Manzai
Chairman
11 September 2026
Related Downloads
FMHL – Abridged Unaudited Financial Results For the Half Year ended 30 June 2026
