ZHL profitability strengthens as regional expansion reshapes earning
Staff Writer
ZIMRE Holdings Limited (ZHL) increased profit after tax by 15% to US$10.74 million in the six months to June 30, 2026, as stronger insurance revenue, improved investment returns and regional expansion under its Great Africa Trek strategy supported earnings growth.
The group’s profit after tax increased from US$9.33 million recorded in the comparable period last year, while total income rose 31% from US$51.59 million to US$67.47 million.
Insurance contract revenue also increased 13% to US$45.60 million from US$40.31 million, pointing to continued growth in the group’s core insurance and reinsurance operations.
“The Group’s insurance contract revenue increased by 13% from USD40.31 million recorded in prior period June 2025 to USD45.60 million in June 2026,” ZHL said.
The results show an increasing contribution from markets outside Zimbabwe, with regional operations accounting for 49% of insurance contract revenue during the period, up from 46% in the prior year.
“The regional operations contributed 49% to the insurance contract revenue, an increase from 46% in the prior period on account of market expansion in pursuance of the Great Africa Trek strategy,” the firm said.
The reinsurance business remained the dominant contributor to the group’s insurance revenue, accounting for 77% of the total, compared with 73% in the prior period.
Zimbabwe and Malawi were key contributors to the reinsurance cluster, accounting for 27% and 15% respectively, compared with 27% and 11% previously.
The increasing regional contribution comes as ZHL continues to pursue expansion across selected African markets, with the group positioning geographical diversification as part of its long-term growth strategy.
“Our Great Africa Trek continues as we pursue opportunities in selected African markets,” Zhl said.
The improved earnings were also supported by investment returns and cost management, according to the group.
The growth in profitability was accompanied by an 8% increase in total assets, which rose from US$298.28 million at December 2025 to US$323.21 million at June 2026.
Cash generated from operations also strengthened, increasing 18% to US$12.20 million from US$10.36 million in the comparative period.
Despite the stronger profitability and cash generation, the group opted against declaring an interim dividend, with the board prioritising capital retention to support expansion and capital requirements.
The group said the board had considered profitability, distributable reserves, liquidity, capital adequacy requirements, prevailing economic conditions and funding requirements for the Great Africa Trek strategy.
“In accordance with the Group’s Dividend Policy, the Board considered the Group’s profitability, distributable reserves, liquidity position, capital adequacy requirements, prevailing macroeconomic conditions and the funding needs for the Great Africa Trek growth strategy,” ZHL said.
“In line therewith, the Board has prudently determined not to declare an interim dividend for the period ended 30 June 2026.”
The decision comes as the group seeks to strengthen the capital position and underwriting capacity of its reinsurance operations while continuing to invest in growth.
“Capital mobilisation remains a key priority as the Group advances initiatives to strengthen the capital position and underwriting capacity of the reinsurance cluster,” ZHL said.
The group said its outlook remained focused on improving underwriting quality, solvency, product diversification and overall business performance, while investing in technology and pursuing opportunities presented by its regional expansion strategy.
ZHL also said climate-related events were becoming increasingly relevant to underwriting and investment decisions and that it was strengthening its understanding of climate risks while exploring opportunities in climate risk advisory, resilient infrastructure and insurance solutions under its environmental, social and governance initiatives.
The group, however, noted that the operating environment remained demanding, citing geopolitical uncertainty, constrained liquidity and changing regulatory requirements across its markets.
