FIRST Mutual Holdings Limited (FMHL) managed to overturn its loss-making position to post a profit after tax of US$14,32 million for its financial year ended December 31, 2025, as its turnaround strategy improved overall earnings.
The profit after tax is from a prior year loss of US$26,27 million.
FMHL’s profitability was driven by the group recording a net gain on its fair value adjustments to investment properties of US$3,92 million, compared to a prior year loss of US$50,47 million.
These fair value adjustments to saw the group’s investment property portfolio reach US$139,66 million, up from the prior year’s US$134,18 million.
Further to this, the group posted a net investment return of nearly US$5,5 million for the review period, driven by a US$3,44 million net investment return from FMHL’s equities investments.
“The group delivered a strong financial performance for the year ended December 31, 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,” FMHL chairman Amos Manzai said in a statement attached to the group’s financial year results for the period ended December 31, 2025.
He said the insurance contract revenue increased by 10% to US$176,8 million, supported by growth across key product lines and sustained customer retention.
“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,” Manzai said.
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“These segments remain integral to our long-term strategy of building a balanced and resilient financial services group.”
The group also maintained a disciplined approach to cost management, with administrative expenses carefully being controlled, while targeted strategic investments were made to support digital transformation.
“While the Zimbabwe Gold (ZiG) currency maintained relative stability throughout the period, the United States dollar (USD) continued to dominate transactional activity,” FMHL chief executive officer Douglas Hoto said.
“This trend was reflected in the group’s revenue composition, with USD-denominated income accounting for approximately 85% of total revenue for the year ended December 31, 2025, up from 75% in the prior year.”
He said this shift underscored the customers’ increasing preference for US dollar-denominated products as a means of preserving value and ensuring confidence in the real worth of benefits payable at the claim stage.
“Amidst this environment, the group maintained disciplined execution of its strategic priorities,” Hoto said.
“The inherent diversity of our operations continues to underpin stable performance, reinforcing our capacity to navigate economic uncertainty while delivering on our commitments.”
FMHL’s fair value adjustments on its investment properties, followed by increases in equity securities at fair value through profit or loss and cash and cash equivalents, drove total assets to US$280,8 million.
This was an increase of 9,5% from the prior year.
The group, through its First Mutual Wealth Management subsidiary, now sits on funds under management worth US$170,1 million, up from the prior year’s US$151 million, demonstrating continued client confidence and the effective acquisition of new mandates.
“Understanding and responding to our customers is at the heart of everything we do, ensuring our products remain relevant in a changing world,” Hoto said.
“This customer focus, combined with a strong financial foundation and growing regional presence, positions the group for sustainable growth.
“We are strengthening this position further through targeted investment in technology and innovation, enhancing how we deliver service and how our customers experience our brand, thereby securing our long-term competitive advantage.”
