DIVERSIFIED financial services group, ZimRe Holdings Limited (ZHL) has made expansion into continental Africa, a strategic growth perspective for the group after strengthening its balance sheet and recording a 95% increase in cash flows.
Part of ZHL’s plans for the rest of the continent include the listing of its subsidiary, EmeritusRe International, on the Botswana Stock Exchange through a planned US$40 million capital raise, which as of January was still to be completed.
This comes as ZHL reported a 196% increase in profit after tax to US$16,7 million for its financial year ended December 31, 2025, with all key operating units achieving profitability.
Major contributors to this profit include life and pensions, property and local reinsurance.
Supporting this was total income growing by 40% to US$122,16 million from the year prior, propelled by strong income growth from the short-term business, reinsurance cluster and the property business.
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So far, the group has highlighted regional markets Botswana, Zambia, Malawi and Mozambique as areas of interest.
“From a strategic growth perspective, the next phase of the group’s evolution will also be anchored by a deliberate expansion into continental Africa, the Great Africa Trek,” ZHL chairman Desmond Matete said.
“The reinsurance cluster will be the cornerstone of this endeavour as it provides both scale and depth in support of the group’s broader business interests, namely property, infrastructure and wealth management.”
The group’s insurance service result increased by 154% to US$14,04 million last year, from US$5,53 million, owing to improved retention and underwriting strategies focusing on profitable business and diversified product offerings locally and regionally.
“With a proven track record of regional expansion, ZHL is uniquely positioned to leverage its intellectual capital, technical depth, strengthened balance sheet and long-standing market relationships to drive this next stage of growth,” Matete said.
He said overall, the group’s outlook for 2026 was positive.
“With renewed operational momentum, strengthened financial performance and a clear continental expansion strategic pathway, ZHL is well positioned to unlock new growth opportunities, reinforce stakeholder value and advance its ambition of becoming a recognised PanAfrican brand, thereby delivering on its longstanding promise of security, growth and profitability,” Matete exclaimed.
Key drivers for the increase in profit were the robust topline growth, improved retention, lower expense ratios and balance sheet resilience.
“The group’s total assets grew by 43% to US$298,28 million, driven by a strong performance in financial assets at fair value,” Matete said.
“This growth was anchored by notable gains in the investment markets the group is directly invested in, namely the Malawi Stock Exchange through its Malawi-based operations and the Victoria Falls Stock Exchange through its investment in the Eagle Real Estate Investment Trust and other high-performing counters.”
He said the performance reflected the resilience and strength of the group’s portfolio amidst favourable market conditions and had significantly supported the group’s profitability.
“Net cash generated from operations improved by 95% ending the year at US$30,83 million from US$15,82 million, driven by cash inflows from insurance premiums and operational income from non-insurance businesses,” Matete said.
“The improvement demonstrates the group’s strong cash collection capabilities in line with the Cash pillar of its three Cs Strategic Triangle [Cash, Customer and Change].”
As a result of the cash generation, cash and cash equivalents ended the year under review at US$19,37 million from the prior year’s US$14,34 million.
