Leading life assurance and funeral services provider, First Mutual Life (FML) has commended the Reserve Bank of Zimbabwe's (RBZ) tight policy stance for creating an enabling environment for business growth.
Presenting the 2025 annual report this week, FML Chairperson, Amos Manzai credited the central bank's consistency throughout the period.
"The RBZ maintained its tight monetary policy stance during 2025 in pursuit of macroeconomic stability. The Bank Policy Rate for the Zimbabwe Gold (ZWG) was held at 35%, significantly above inflation and exchange rate movements on the official and alternative markets," he said.
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Manzai said during the period, statutory reserve requirements were maintained at elevated levels, namely 15% for savings and time deposits and 30% for call and demand deposits, for both ZWG and USD currencies.
He noted that liquidity remained tight as the RBZ continued to mop up excess liquidity through the issuance of Non-Negotiable Certificates of Deposits.
"These measures collectively supported a relatively stable macroeconomic environment during 2025. The resulting stability brought greater predictability and improved the ability of businesses to plan and distribute resources more effectively," the FML chairperson said.
During the period, USD-denominated income accounted for approximately 85% of total revenue for the year ended 31 December 2025, up from 75% in the prior year.
The business recorded ICR of $15.3 million for the year ended 31 December 2025, representing a 22% increase over the prior year. This growth was largely driven by solid premium growth in group risk schemes and retail funeral products.
The profit for the year rose significantly by 313% to $3.5 million compared to the previous period. The strong improvement was primarily underpinned by revenue growth, effective cost management initiatives and a positive investment outturn.
Despite these positives, structural challenges persisted. According to a report issued by the Zimbabwe National Statistics Agency, the informal sector accounted for 76% of economic activity.
Insurance contract revenue increased by 10% to $176.8 million, supported by growth across key product lines and sustained customer retention. The insurance service result decreased to $27.6million from $28 million in the prior year as a result of adjustments for pipeline premiums at the reinsurance cluster.
Rental income remained steady, increasing by 3% from 2024, while our health services and asset management units delivered solid contributions.
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