Online Reporter
Nelson Gahadza
Zimpapers Business Hub
Old Mutual Insurance Company recorded significant top-line growth for the year ended 31st December 2024, with gross premium written (GWP) increasing by 10 percent to ZiG1,137 billion from the prior year’s ZiG1,040 billion.
This robust performance was largely driven by new business acquisition, which contributed a notable 14 percent of total revenue.
Group chairman, Mr Charles Mugwambi, in a statement accompanying the financials, highlighted that all product lines achieved profitability. This was attributed to strong underwriting practices and efficient claims management, resulting in a healthy underwriting margin of 14 percent, a substantial increase from 7 percent in 2023.
Mr Mugwambi also noted the significant contribution of the retail portfolio to top-line growth, which rose to 40 percent of GWP compared to 36 percent in the previous year.
“Key drivers of performance include financial education campaigns to promote products and the optimisation of new and existing distribution partnerships,” he explained.
“The expansion of the retail portfolio improved reinsurance retentions from 67 percent in 2023 to 71 percent in 2024, contributing to earned premium growth of 21 percent. Customer retention remained strong at 93 percent, exceeding the prior year’s 90 percent,” he added.
During the period under review, Mr Mugwambi stated that the business continued to expand its market presence, increasing distribution sites and strengthening and optimising relationships with distribution partners.
He further highlighted the introduction of mobile offices to increase penetration in underserved regions, which offers a full range of products and services.
“We opened an additional motor vehicle assessment centre in Harare, increasing our total number of centres to three. These centres have evolved into fully integrated service hubs, enabling customer convenience and driving efficiencies in claims management,” he affirmed.
Product innovation continued to be a focus, with Mr Mugwambi noting the launch of the Homecare product on the O’mari digital platform.
Efforts to grow digital adoption through targeted campaigns yielded an impressive digital sales growth of 4 317 percent from the previous year.
“We also introduced a bundled motor insurance and funeral services product offering customers a cost-effective solution with enhanced protection and greater convenience in premium payments and claims settlement,” he said.
“We continue to integrate our products with premium banking product offerings from our bank partners, increasing our reach and adding value and convenience for customers.”
Mr Mugwambi emphasised that the business’s strategic priorities remained anchored by driving profitable growth and enhancing customer experience through innovative distribution channels and products. He stated that the focus would be on expanding and diversifying the distribution network through strategic partnerships to increase reach to new markets and drive profitable top-line growth.
“In addition, we shall continue to focus on service delivery to our customers, improving efficiency on onboarding and turnaround on claims,” said Mr Mugwambi. “Data-driven insights will also be optimised to adapt products and drive product development to meet our customers’ changing needs whilst enhancing our digital capabilities to enrich the overall customer journey.”
