THE Insurance and Pensions Commission (Ipec) has identified market disruptions linked to the suspension of Old Mutual shares from the Zimbabwe Stock Exchange (ZSE) as one of the key risks facing the country’s insurance and pensions industry.
The warning comes despite what the regulator describes as a generally stable macroeconomic environment during 2025.
In its 2025 annual report, Ipec said the sector continued to face significant vulnerabilities arising from market concentration and exposure to listed equities.
“Despite strong macroeconomic stability in 2025, residual systemic risks persist, including market disruptions from the suspension of Old Mutual and delisting of counters where the industry has significant exposure,” the regulator said.
Several high-profile companies have delisted from the ZSE over the past five years, citing valuation concerns and liquidity constraints among other reasons.
Among the most notable departures was Econet Wireless Zimbabwe, one of the country’s largest listed firms and previously among the ZSE’s biggest counters by market capitalisation.
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Its exit significantly altered the structure of Zimbabwe’s equity markets.
Ipec noted that these risks were compounded by persistent pension contribution arrears and claims settlement pressures, which continue to weigh on parts of the sector.
The insurance and pensions industry is among the largest institutional investors on the local market, with substantial investments in listed equities, property and other long-term assets.
As a result, disruptions affecting major counters can have far-reaching implications for policyholders, pension funds and broader market stability.
To mitigate the risks, Ipec said it was tightening oversight of investment portfolios and promoting greater diversification across the industry.
The regulator said it would "conduct industry-wide exposure assessment and promote portfolio diversification" as part of its risk-management strategy.
Analysts say concentration risk remains a longstanding challenge for insurers and pension funds, largely because of the limited range of viable long-term investment opportunities available on the domestic market.
The warning comes as Ipec seeks to strengthen confidence in the insurance and pensions sector while safeguarding policyholders and pension beneficiaries from potential financial shocks.
Despite ongoing mitigation measures, the regulator said overall industry risk remained classified as "high".
The developments have also reignited debate over Old Mutual's future relationship with the ZSE, six years after the group's shares were suspended from trading on the local bourse.
Old Mutual Zimbabwe Group chief executive Samuel Matsekete said engagement between the group and authorities on the matter was continuing.
"Old Mutual Limited's leadership has maintained ongoing engagement with government and relevant regulatory authorities regarding this matter and will continue to do so," he said in a recent interview with the Zimbabwe Independent.
"The issue remains under active consideration, and an update will be communicated in due course as developments emerge."
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