Online Reporter
Nelson Gahadza
Senior Business Reporter
FIRST Mutual Holdings Limited (FMHL) says durable macro-economic stability will be critical to consistent revenue growth and reducing volatility in the group’s investment portfolio.
The group’s strong investment and property gains drove its performance for the half-year ended June 30, 2026.
Chief executive officer Mr Douglas Hoto, in a statement of financials for the half-year period, said the diversified financial services group recorded significant gains from its investment and property portfolios, cushioning pressure in some of its core insurance businesses.
During the period, net investment return surged 568 percent to US$13,7 million, driven by favourable movements in the equities markets and higher yields from fixed-income securities, while fair value gains on investment property jumped 1 257 percent to US$13,8 million.
“The gains lifted the value of the group’s investment property portfolio to US$150 million. Our results reflect overall positive performance, underpinned by the resilience of our core operations and major contribution from our investment and property portfolios,” said Mr Hoto.
He said the group’s insurance contract revenue rose six percent to US$92,8 million, driven by continued efforts to retain customers, new products and disciplined underwriting.
However, the insurance service result declined seven percent to US$13,1 million, largely because of higher claims and increased insurance contract acquisition costs.
“We remain focused on enhancing underwriting efficiency and expect this metric to improve in the second half of the year,” Mr Hoto said.
During the period under review, rental income at group level increased by one percent to US$4,4 million, reflecting broadly stable occupancy across the property portfolio.
The group’s health insurance operation, First Mutual Health Company, recorded a three percent increase in insurance contract revenue to US$39,7 million from US$38,4 million previously.
Mr Hoto said the growth was attributable to increased membership and contribution reviews during the period.
However, the claims ratio increased to 83,95 percent from 82,15 percent, reflecting higher claims volumes, which the group attributed mainly to a growing chronic disease burden and increased claims frequency.
