Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
ZIMRE Holdings is reaping the fruits of its regional expansion, posting a 15 percent surge in profit after tax to US$10,74 million in the half-year to June 2026, amid growing contribution from external markets.
The diversified insurance group is pursuing opportunities in selected African markets under its Great Africa Trek strategy. Regional operations now contribute 49 percent of insurance contract revenue, up from 46 percent in the prior comparative period.
The performance underscores the group’s increasing reliance on markets beyond Zimbabwe to diversify revenue streams, strengthen underwriting capacity and build a broader African insurance and reinsurance footprint.
Zimre chairman Mr Desmond Matete said the group’s insurance businesses continued to benefit from regional market expansion, new products and organic growth. “The group’s insurance contract revenue increased by 13 percent from US$440,31 million recorded in the prior period, June 2025, to US445,60 million in June 2026. The growth was on the back of continued expansion into local and external markets, innovative products and organic growth across the group’s insurance, reinsurance and life and pensions segments,” said Mr Matete in the group’s half-year financial statements.
Reinsurance remained the dominant contributor to the group’s insurance contract revenue, accounting for 77 percent, up from 73 percent in the prior period.
“Reinsurance operations accounted for 77 percent (2025: 73 percent) of insurance contract revenue, with Zimbabwe and Malawi being key contributors under the reinsurance cluster at 27 percent and 15 percent (2025: 27 percent and 11 percent), respectively.”
The increased contribution from Malawi points to the growing importance of regional markets to Zimre’s expansion strategy, while the overall regional contribution increased by three percentage points to 49 percent.
“The regional operations contributed 49 percent to the insurance contract revenue, an increase from 46 percent in the prior period on account of market expansion in pursuance of the Great Africa Trek strategy.”
Life and pensions remained another significant contributor at 18 percent, although this was down from 21 percent, while short-term business accounted for five percent compared with six percent in the prior period.
Beyond underwriting, the group benefited from stronger investment performance, with total income increasing 31 percent from US$51,59 million to US$67,47 million.
“The growth was underpinned by insurance contract revenue and investment returns, supported by fair value gains on equities and investment property.”
Profit after tax rose to US$10,74 million from US$9,33 million, representing a 15 percent increase.
“The growth was driven by insurance contract revenue growth, improved investment returns, and the effective implementation of cost management initiatives.”
The earnings improvement was accompanied by balance-sheet growth, with total assets increasing eight percent to US$323,21 million, supported by growth in financial assets.
More importantly from a liquidity perspective, cash generated from operations rose 18 percent to US$12,20 million from US$10,36 million in the prior year.
“The group’s cash generating capacity remained positive, with cash generated from operations of US$12.20 million recorded during the period, up 18 percent from US$10,36 in the prior year.”
The stronger cash generation comes as the group prepares to increase capital deployment into its reinsurance operations, with capital mobilisation identified as a key strategic priority.
“The operating environment is expected to remain demanding, with geopolitical uncertainty, constrained liquidity and changing regulatory requirements continuing to affect our markets.
“These conditions call for disciplined execution, careful allocation of capital and an ability to respond quickly to emerging risks and opportunities.”
Zimre said additional capital would be critical in strengthening the reinsurance cluster’s capital position and underwriting capacity, while supporting regulatory compliance and further regional expansion.
“Capital mobilisation remains a key priority as the group advances initiatives to strengthen the capital position and underwriting capacity of the reinsurance cluster.
“This will support regulatory compliance, profitability growth and the continued expansion of our regional footprint. Technology is an important enabler of our strategy.”
The group is also investing in technology as part of efforts to improve operational efficiency, with modern core systems, automation and integrated data platforms expected to simplify processes, contain costs and improve decision-making.
The technology push comes as Zimre seeks to improve the quality of earnings and cash conversion while strengthening underwriting discipline across its markets.
“Our Great Africa Trek continues as we pursue opportunities in selected African markets. Within our existing operations, the focus is on improving underwriting quality, solvency, diversifying products and strengthening the business performance.”
The group said its longer-term strategy was centred on building a stronger capital base while developing businesses capable of competing across African markets.
“The Group’s strategy is prioritising strengthening its capital base, improving the quality and cash conversion of earnings and building businesses that can compete and grow over the long term, carrying a uniquely Zimbabwean brand across borders for broader market reach.”
