Staff Writer
ZIMRE Holdings Limited (ZHL) recorded a 15% increase in profit after tax to US$10.74 million for the half year ended June 30, 2026, supported by growth in insurance revenue, investment returns and cost management.
The group’s profit rose from US$9.33 million recorded in the comparable period last year, while total income increased by 31% to US$67.47 million from US$51.59 million.
Insurance contract revenue grew 13% to US$45.60 million from US$40.31 million, reflecting continued expansion into local and regional markets, new product development and organic growth across the group’s insurance, reinsurance, life and pensions operations.
Reinsurance remained the main contributor to the group’s insurance contract revenue, accounting for 77%, up from 73% in the prior period.
Zimbabwe and Malawi were the largest contributors within the reinsurance cluster, accounting for 27% and 15% of insurance contract revenue respectively. Malawi’s contribution increased from 11% in the corresponding period last year.
The life and pensions business contributed 18% of insurance contract revenue, although this was down from 21% a year earlier, while the short-term insurance business accounted for 5%, compared with 6% in the prior period.
Regional operations continued to gain importance, contributing 49% of insurance contract revenue, up from 46% in the first half of 2025.
The increase reflects ZHL’s continued implementation of its Great Africa Trek strategy, which seeks to expand the group’s footprint in selected African markets.
The group said the increase in total income was also supported by investment returns, including fair value gains on equities and investment property.
Total assets increased by 8% to US$323.21 million at June 30, 2026, supported mainly by growth in financial assets.
Cash generation also strengthened, with cash generated from operations rising 18% to US$12.20 million from US$10.36 million in the prior period.
ZHL said it was continuing to deploy capital through the Eagle REIT into infrastructure projects in Mazowe and Victoria Falls.
The developments are aimed at expanding healthcare, hospitality, residential and commercial infrastructure while creating employment and supporting local economic activity.
The group said environmental considerations were increasingly being incorporated into its development approach, including green building designs, solar energy and responsible resource management.
Climate-related risks are also becoming a more important consideration for the group’s underwriting and investment decisions.
“Droughts, floods, fires and other extreme weather events can affect claims, asset values and the resilience of our clients and communities,” the group said.
ZHL said it was strengthening its understanding of climate risks while exploring opportunities in climate risk advisory, resilient infrastructure and insurance solutions underpinned by an environmental, social and governance framework.
The group said it was also working to improve the consistency and quality of sustainability data across its operations to strengthen accountability and provide stakeholders with clearer information on sustainability-related risks and opportunities.
Looking ahead, ZHL expects operating conditions to remain challenging, citing geopolitical uncertainty, constrained liquidity and changing regulatory requirements across its markets.
The group said disciplined execution, prudent capital allocation and the ability to respond quickly to emerging risks would remain critical to its performance.
Capital mobilisation is a key priority as ZHL seeks to strengthen the capital position and underwriting capacity of its reinsurance operations.
The group said this would support regulatory compliance, profitability and further expansion across the region.
Technology investment is also expected to play a key role in the group’s strategy, with ZHL investing in modern core systems, automation and integrated data platforms to simplify processes, contain costs and improve decision-making.
The group said it would continue focusing on underwriting quality, solvency, product diversification and improved business performance across its existing operations.
“While the external environment remains uncertain, the Board is confident that disciplined execution will position ZHL to deliver enduring Security, Growth and Profitability to its shareholders and stakeholders,” chairman D Matete said.
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