Staff Writer
Old Mutual Zimbabwe has invested in various initiatives aimed at promoting financial inclusion as part of the group’s efforts to support the economy.
Zimbabwe’s financial inclusion policy, implemented through the National Financial Inclusion Strategy (NFIS), aims to empower Zimbabweans through access to and usage of quality, affordable, and sustainable formal financial services, with NFIS II (2022-2026) focusing on usage and building upon the successes of NFIS I (2016-2020).
Old Mutual Zimbabwe chief executive Samuel Matsekete at a recent analyst briefing said the group has provided financial education to 36 991 individuals through face-to-face engagements and over 2 billion through digital channels.
He said the company also introduced new products on the O’Mari services to promote financial inclusion and offered loans and transactional services to underserved segments through its financial services businesses CABS, Old Mutual Financial Services and O’Mari.
“The impact of overall efforts on the distribution network was the acquisition of new customers, which resulted in a 56 per cent growth in customers for the year to December 31, 2024,” he said.
Matsekete said the main drivers of new business were the’ O’Mari business as well as the funeral services and funeral product insurance.
“We widened our footprint in certain areas, and at the bank, we launched the NGO centre, offering specialised services or focused services on global development organisations and non-governmental organisations that operate in our markets.
“But we also expanded the service centres for the funeral services, and we increased the agents that we are deploying in terms of sales of our various products, and that also includes partnerships that we expanded during the year,” he said.
Matsekete said the group will continue to broaden the universe of assets that it invests in, which includes increasing an increase in alternative investments.
“Within the alternative assets portfolio, a broader range of assets that we are bringing into the portfolios, some of them to respond to fiscal requirements from our customers.
“We also established an advisory services business unit, which is carried within the CABS business but serves customers from across the board,” he said.
Matsekete said the group life assurance business’s net client cash flows were up 17 per cent from the prior year, driven by repositioned efforts in terms of contributions to pensions and long-term life insurance products.
“You will also see us achieving high investment returns for the products that we carry through the life business, which enable us to deliver consistent bonus declarations from those products that are weak points in the life business for the year,” he said.
During the year under review, Matsekete said the group expanded the funeral distribution network, which resulted in a 49 per cent growth in the funeral policies.
“The growth rate is really supported by the growth points of how we deliver the service in that new life of business. The funeral services business is one of the two new businesses that we are still nurturing, and we are very encouraged by the trajectory of the funeral services business,” he said.
Matsekete said the group continues to upgrade digital platforms and continue to strengthen the core key propositions, digital banking, international payments, and trade and exchange control.
He said in the microfinance space, the business will continue to scale up that business where it now holds an 8 per cent market share.
“It is a new baby, but we are happy to have made this one up so that we can try and fit’ O’Mari in our services. O’Mari’s customer base was up 113 per cent year-on-year.”
According to the group’s financials, in the life business, insurance revenue grew by 26 per cent owing to higher business underwritten.
The pension administration business, however, sustained an expense ratio of 126 per cent, reflecting the impact of capped fees on certain fee lines.
“The general insurance business registered an underwriting margin of 14 per cent, anchored by a strong underwriting discipline and favourable claims outcome for the year,” reads part of the group’s financials.
