Online Reporter
Nelson Gahadza
Senior Business Reporter
INVESTMENT holding firm Zimre Holdings Limited is accelerating its regional expansion and restructuring operations to capitalise on Africa’s underpenetrated insurance markets.
Group chief executive Mr Stanely Kudenga said at an analyst briefing last Thursday that the group’s growth strategy is anchored on scaling operations across Southern Africa, deepening insurance penetration in underserved markets and optimising its portfolio following the separation of legacy assets.
He said across Africa, insurance penetration remains significantly below global averages, with the continent generating about US$6,27 billion in reinsurance premiums compared to US$394,69 billion globally in 2024.
Mr Kudenga said this gap presents significant upside potential for players with the right scale and product mix.
To capitalise on this opportunity, he said ZHL is focusing on underserved markets through tailored offerings such as microinsurance products, credit for funeral services and mortgage-linked solutions, while leveraging its regional footprint in countries including Botswana, Zambia, Malawi and Mozambique.
The group is also prioritising infrastructure-led growth through property developments such as Mazowe Walk, the Victoria Falls project and Selbourne Park in Bulawayo, as it shifts towards commercial and retail real estate in line with market demand trends.
“At the same time, management is working to stabilise underperforming business units, including Credsure, Eagle Asset Management and Vanguard Life Assurance, as part of a broader turnaround programme aimed at improving group-wide profitability,” said Mr Kudenga.
He highlighted that the strategic interventions come as ZHL reported a 196 percent surge in profit after tax to US$16,7 million in 2025, from US$5,6 million in the prior year, underpinned by strong revenue growth and improved operational efficiency.
“The group recorded both topline and bottom-line growth despite macroeconomic challenges across our markets,” he said, commenting on the financials for the year ended December 31, 2025, highlighting improving economic conditions and rising demand for insurance products driven by digitalisation, regulatory reforms and climate-related risks.
ZHL’s total income rose 40 percent to US$122,16 million, while insurance contract revenue increased 33 percent to US$82,41 million.
Cash generated from operations jumped 95 percent to US$30,83 million, reflecting stronger underlying business performance.
The group’s balance sheet also strengthened significantly, with total assets growing 43 percent to US$298,28 million from US$208,08 million, while total equity rose 47 percent to US$89,08 million.
Mr Kudenga said growth was largely driven by a 114 percent increase in financial assets to US$100,49 million and an 11 percent rise in investment properties to US$96,72 million, reflecting continued investment in income-generating assets.
During the period under review, across business lines, reinsurance remained a key earnings driver, contributing US$7,4 million to profit, followed by property at US$4,8 million and life and pensions at US$3,7 million.
However, the wealth management segment recorded a marginal loss of US$0,3 million, underscoring the need for further optimisation.
Regionally, Zimbabwe accounted for the bulk of assets at US$220,7 million, while other markets such as Botswana, Zambia, Malawi and Mozambique provided diversification and growth opportunities despite varying macroeconomic conditions.
Mr Kudenga noted that economic recovery in Zimbabwe, which saw 6,6 percent growth in 2025, provided a supportive environment for business, while Zambia also recorded solid growth of 5,8 percent.
“However, operating conditions remained challenging in Malawi and Mozambique due to high inflation, foreign currency shortages and political uncertainty,” he said.
Looking ahead, ZHL is prioritising the recapitalisation of its reinsurance cluster to enhance underwriting capacity and support regional growth and the group is also exploring the introduction of strategic partners to strengthen its capital base.
