Old Mutual Insurance Company has posted a stunning profit surge, with earnings before tax jumping 208% to ZiG101.4 million for the year ended December 2025, as the insurer benefited from broad-based growth across all revenue lines.
The performance comes despite a challenging operating environment characterised by tight monetary policy and currency stability efforts that have constrained liquidity across the economy. For context on the broader macro backdrop, see why fiscal discipline matters for ZiG stability.
The numbers
Gross written premiums (GWP) climbed 12% to ZiG1.14 billion, crossing the billion-rand mark for the first time. Insurance revenue grew 7% to ZiG1.1 billion, supported by new business written through continued collaboration with the company's network of business partners.
The profit surge significantly outpaces the 12% premium growth, suggesting improved underwriting profitability, effective claims management, or operational efficiencies that amplified the impact of revenue growth on the bottom line.
Insurance sector momentum
Old Mutual Insurance's performance mirrors a broader recovery in Zimbabwe's insurance sector, which has been navigating a period of currency transition and economic adjustment as the ZiG beds in. The company's ability to grow premiums in local currency terms reflects both pricing adjustments and genuine volume growth in policy uptake.
The wider Old Mutual Zimbabwe group delivered a strong FY2025, with group profit before tax of US$60.6 million, up 55% year-on-year, underscoring the resilience of the financial services sector in the current environment. For more on how companies are adapting to the currency landscape, see how ZiG dollar shortages are pushing firms to the parallel market.
What this tells us
A 208% profit surge is a strong signal. It indicates that Old Mutual Insurance is not just writing more business but is doing so more profitably. The combination of double-digit premium growth and a tripling of profits points to improving unit economics (more efficient claim ratios, better expense management, or both).
For policyholders, a profitable insurer is a more stable insurer. For investors, the numbers reinforce the case for financial services exposure in Zimbabwe, particularly in the insurance sub-sector, which has historically been under-penetrated relative to regional peers.
What to watch
The key questions going forward are whether Old Mutual can sustain this trajectory. Premium growth of 12% is solid but not exceptional. If the 208% profit surge was driven in part by one-off factors (favourable claims experience, reserve releases, or currency gains), the next reporting period may not replicate it.
Still, the direction of travel is clear. Zimbabwe's insurance sector is growing, and Old Mutual Insurance is leading the pack.
