Staff Writer
FBC Holdings’ insurance businesses delivered mixed performance for the year ended December 31, 2025, with premium growth recorded across units but profitability weighed down by elevated claims, Group chief executive Trynos Kufazvinei said at an analyst briefing.
FBC Insurance Company posted growth in gross written premiums during the period under review, reflecting increased business volumes.
However, profit before tax declined to ZWG16.9 million from ZWG28.2 million in the prior year, largely due to a high claims ratio, particularly within the motor vehicle class.
Kufazvinei said the group is taking corrective measures to restore profitability in the short to medium term.
“The focus will be on strengthening underwriting discipline, enhancing claims management and rebalancing the portfolio towards lower-risk, higher-margin classes,” he said.
FBC Reinsurance Limited reported a profit before tax of ZWG31.2 million, supported by premium growth and investment income.
Despite the positive earnings, profitability was also affected by elevated claims during the year.
In response, the reinsurance unit is implementing revenue-enhancing initiatives, including price adjustments and improved risk selection.
Kufazvinei said the business is targeting growth in the mining and agriculture sectors, guided by strict underwriting standards and a defined risk appetite.
Regionally, FBC Re Botswana delivered a fair return to shareholders, benefiting from portfolio diversification despite subdued performance in the diamond sector and moderating economic activity in Botswana.
The group is also pursuing expansion into West Africa, where new markets are expected to drive additional revenue growth.
“Going forward, FBC Reinsurance is well-positioned to benefit from improving regional conditions and sustain domestic growth, supporting profitability and reinforcing its contribution to the group,” Kufazvinei said.
The broader insurance sector showed signs of recovery in 2025, underpinned by rising gross written premiums and a structural shift towards foreign-currency-denominated business, following mixed performance in 2024.
Kufazvinei noted that product innovation and micro-insurance are increasingly shaping industry strategies, particularly in response to low insurance penetration, which remains at about 1 percent compared to a regional average of around 3 percent.
On the regulatory front, the Insurance and Pensions Commission introduced new minimum capital requirements aimed at strengthening stability and underwriting discipline in the sector. All FBC insurance subsidiaries are compliant with the new thresholds.
He said the low penetration levels present significant growth opportunities for the group, particularly through expanding access to insurance products in underserved segments of the market.
