Zimbabwe’s FMHL expands health services with $10 million push

First Mutual Holdings Limited (FMHL), a leading Zimbabwe financial services group, is preparing to invest up to $10 million in 2026 to expand its health and funeral services operations. 

The move signals a sharper focus on resilient, cash-generating segments as the insurer adapts to persistent currency volatility and elevated demand for affordable healthcare solutions.

Health insurance uptake continues to rise across Zimbabwe, where economic pressure has intensified reliance on structured medical cover. FMHL is positioning its health division as a core growth engine, while its funeral services business remains a stable revenue contributor in Southern Africa’s insurance ecosystem.

Regional expansion deepens across Africa

FMHL is accelerating its geographic diversification strategy, extending its footprint into Rwanda and Mozambique while reinforcing existing operations in Botswana and Malawi. The company recently secured an insurance licence in Rwanda, a market increasingly viewed as a gateway to East Africa’s fast-growing financial services sector.

Management has highlighted Rwanda and Botswana as structurally attractive due to stronger payment systems, improved regulatory clarity, and relatively stable capital mobility. The expansion reduces exposure to Zimbabwe’s macroeconomic volatility while unlocking new underwriting opportunities in faster-growing markets.

Profit recovery strengthens balance sheet

The expansion comes on the back of a significant financial turnaround. FMHL returned to profitability in FY2025, reporting a $14.3 million profit compared with a $26.2 million loss in the prior year. Insurance contract revenue rose 10% to $176.8 million, driven largely by a growing U.S. dollar-denominated revenue base, now accounting for 85% of total earnings.

Improved underwriting discipline, tighter claims management, and stronger cost controls have underpinned the recovery across its insurance and asset management divisions.

Diversified platform supports long-term growth

FMHL’s core insurance operations continue to underpin earnings, supported by tighter underwriting discipline and upgraded claims management systems. Rising reinsurance costs remain a drag on margins, though the group maintains that reinsurance is essential for capital protection and risk transfer.

A diversified portfolio spanning life assurance, health insurance, short-term cover, reinsurance, wealth management and property continues to smooth earnings volatility, reinforcing FMHL’s position as a broad-based financial services group.

Under Chief Executive Douglas Hoto, the company has accelerated its structural expansion, including the establishment of First Mutual Reinsurance Company and other strategic units aimed at deepening capacity across the value chain. Regional operations in Mozambique, Malawi and Botswana provide an established platform for wider Southern African growth.

Listed on the Zimbabwe Stock Exchange, FMHL draws on more than a century of operating history, blending legacy underwriting expertise with modern financial services to support its next phase of regional expansion.